UPS Case
1. What are the strengths and weaknesses of scenario planning?
• An in depth understanding of the world around the organization
• Robust strategic thinking and planning process
• Great decision making
Strengths Weaknesses
• Widened field of vision for organization
• Help to identify new strategies to face possible scenarios that could occur in UPS future
• Guide future investment decisions as by living in the future through scenarios, there is a better, more enhanced and impactful view of the world in both the short and long run.
• Foster robust strategic planning, thinking, and process
• Improve decision making and planning for the unknown
• Facilitates strategic communication and vocabulary
• One vision, one goal one corporate objective across various departments and • Long term investment that requires off site meetings
• Commitment to extended research
• 100% of management involvement and commitment required to be successful
• Presence of union
Opportunities Threats
• Overseas markets encourage UPS to expand and remold its culture
• Advancement into different markets as seen with UPS entry into logistics and airlines
• Ability to maintain strongholds over its entire operations
• Free trade agreements between countries
• Technological advancements driving online shopping
• Likelihood of an emerging middleclass globally • Increased competition from new entrants into this market could affect profit margin negatively.
• Loss of customers to private companies such as Federal Express and government preferred agencies like Deutsche Post.
• Reduced bargaining power for UPS
• More innovative and technologically advanced innovation from competition
2. What is your evaluation of UPS’s 1997 scenario planning exercise? It’s Horizon 2017 planning exercise? How do the two compare?
1997 Scenario Planning:
The UPS 1997 scenario planning overall can be termed a success. It led to the birth of the UPS Charter in 1999 which redefined the
• An in depth understanding of the world around the organization
• Robust strategic thinking and planning process
• Great decision making
Strengths Weaknesses
• Widened field of vision for organization
• Help to identify new strategies to face possible scenarios that could occur in UPS future
• Guide future investment decisions as by living in the future through scenarios, there is a better, more enhanced and impactful view of the world in both the short and long run.
• Foster robust strategic planning, thinking, and process
• Improve decision making and planning for the unknown
• Facilitates strategic communication and vocabulary
• One vision, one goal one corporate objective across various departments and • Long term investment that requires off site meetings
• Commitment to extended research
• 100% of management involvement and commitment required to be successful
• Presence of union
Opportunities Threats
• Overseas markets encourage UPS to expand and remold its culture
• Advancement into different markets as seen with UPS entry into logistics and airlines
• Ability to maintain strongholds over its entire operations
• Free trade agreements between countries
• Technological advancements driving online shopping
• Likelihood of an emerging middleclass globally • Increased competition from new entrants into this market could affect profit margin negatively.
• Loss of customers to private companies such as Federal Express and government preferred agencies like Deutsche Post.
• Reduced bargaining power for UPS
• More innovative and technologically advanced innovation from competition
2. What is your evaluation of UPS’s 1997 scenario planning exercise? It’s Horizon 2017 planning exercise? How do the two compare?
1997 Scenario Planning:
The UPS 1997 scenario planning overall can be termed a success. It led to the birth of the UPS Charter in 1999 which redefined the