Organizational Impact Paper
Introduction
Organizations determine their structure by the various goals the organization wants to achieve; however, organizational structure can facilitate or deter the organizations advancement with regard to the accomplishment of these goals. Both small and larger organizations can attain increased sales and added profits in appropriately matching their structure with their needs to function. The three organizational structure types are, functional, divisional and matrix.
Innovation has a significant impact on the organization giving it a competitive advantage, and today organizations must be innovative to be successful and competitive in the marketplace. Ideas of innovation not only impact organizational strategy, the process, service, and products offered to the consumers. Innovative ideas require the organizational leaders to identify how the implementation process will proceed and its success based on the structure of the organization.
UPS (United Parcel Service) - Functional Structure
United Parcel Service (UPS) is continually finding innovative ways to remain the world’s largest package delivery company. Founded in 1907, the innovative strategies have continued in offering package delivery, logistics service, and specialized transportation in over 200 countries globally.
In 1907, the company started by James Casey in Seattle, Washington, called the American Messenger Company, and opened with the minimal sum of $100.00 Casey borrowed from a friend; Casey saw the need for this delivery service and in 1919 expanded to California, and was renamed United Parcel Service. According to UPS (2014), one of the first innovations was “building the first conveyor belt system for handling packages....
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...ices at high efficient levels while reducing operating costs is a formula for generate profits and creating a competitive advantage. To achieve these objectives organizations will have to rely upon not only offering quality products and services but also incorporating methods of innovation. Innovative ideas require the organizational leaders to identify how the implementation process will proceed and its success based on the structure of the organization.
Works Cited
Bank of America. (2014). retrieved from: http://message.bankofamerica.com/heritage/
Bank of America. (2014). retrieved from: http://about.bankofamerica.com/en-us/our-story/where-we-are.html#fbid=Ptrgtqv0df2
Dow Chemical (2014) retrieved from http://www.dow.com/innovation/resources/
United Parcel Service. (2014). retrieved from: http://www.ups.com/content/us/en/about/history/index.html?WT.svl=SubNav
UPS is the world's largest package delivery company and is headquartered in Atlanta, Georgia. The company was started in 1907 by James (Jim) Casey at the age of nineteen. Jim Casey borrowed $100 from a friend and started the American Messenger Company in Seattle, Washington. Despite stiff competition, the company did well because of Jim's strict policies: customer courtesy, reliability, round-the-clock service, and low rates. He used the slogan: "Best Service and Lowest Rates." (www.ups.com).
UPS is the largest parcel delivery service in the world. They also help their customers its customers with supply chain management, logistics, and financial services. UPS used to be a trucking company with technology, now it¡¦s a technology company with trucks. One of the UPS¡¦s key success factors is the way they manage their operations. Their carefully designed network of vehicles, sorting facilities, and hubs combined with their IT system, allows them to pick up 13 million packages each day from 2 million addresses for delivery to over 6 million commercial and residential addresses worldwide with highest levels of reliability, efficiency, and speed. Also the integration of its air and ground operations gave UPS the ability to optimize utilization of its assets while still meeting customer service requirements. Other key success factor is UPS¡¦s human resource management. UPS has lowest turnover rates in the industry and succeeds in developing a portion of its workforce for management positions each year. The company¡¦s unique culture emphasized accountability and efficient execution at every level of the organization.
United Parcel Service (UPS) was founded in 1907 as a messenger company. It has grown into a multi-billion dollar corporation. Today UPS is a global company and one of the most admired and recognized brands in the world. UPS has become the largest delivery package company and leading provider of specialized transportation and logistics services in the world.
Innovation has rapidly assumed a position of prominence in world competition on a global scale. To compete in this environment, organizations need a level of innovation. As competition becomes more global and time-based, organizations must develop and deliver new and superior products or services in less time. The challenge for modern organizations is to revitalize them so they can successfully and continuously develop newer products and enhance business development.
Federal Express is the world’s largest package delivery company today. They have been successful mainly because of their technological advancements. Technology has allowed them to have superior customer service and quality that was unparalleled by any company. No company was able to offer overnight delivery of packages with the speed and precision that Federal Express did. Although Federal Express remains ahead of its competition today, their advantages over other firms in the industry are slowly diminishing.
UPS and FedEx are the leading parcel carriers in the U.S. FedEx has significantly expanded their capability to compete with UPS’s dominant ground delivery service. UPS has continued its strong marketing efforts in overnight and deferred air services. Both of these carriers have introduced information systems, which include user-friendly Internet interfaces. The carriers have also expanded logistical services and improved integration with customer supply chains.
In 1913, C.J. Tower & Sons, forerunner to FedEx Trade Networks subsidiary FedEx Trade Networks Transport & Brokerage, begins operation as a customs broker in Niagara Falls, N.Y. It was not until 1971 that Federal Express Corporation was founded in Little Rock, Ark. In 1975, FedEx installed the first drop box for the public and since then the company developed and maintained a strategic leadership in managing a broad group of transportation services, e-commerce and other business services. The company offers integrated business solutions through a network of subsidiaries operating independently, including: FedEx Express, the world's largest express transportation company; FedEx Ground, North America's second largest provider of small-package ground delivery service; FedEx Freight, a leading provider of regional less-than-truckload freight services; FedEx Custom Critical, the world's largest provider of expedited time-critical shipments; and FedEx Trade Networks, a provider of customs brokerage, consulting, information technology and trade facilitation solutions. (www.fedex.com)
This seems nearly impossible but when a company is well organized and has excellent communication throughout the company, it makes shipping these packages a lot more simple. On a regular basis UPS has communication meetings between operation managers, and first line employees (Soupata, 2005, p. 97). Other than these meetings, employees communicates mainly through a communication channel called, UPSers.com. This allows employees to stay up to date on things going on throughout the company and allows easy access to contact information for the person of interest. They can also use UPSers.com to check the benefits the company provides for them.
For the organizations which implementing innovation in their business environment, it is not easy for them to cope with the changes. With the transformation strategies, it can help the organizations to adapt the changes and ready to be productive as mentioned in Formulation of Organizational Transformation Strategies (2014).
This rating as well as many others factors have lead to the success of the United Parcel Service. The current status of the company reflects the strength of the their competitive position. The leaders of the current which include James Kelly, Michael L. Eskew, and John A. Duffy have set an example for anyone who is interested in management as a career. Their tactical maneuvers are first rate. This company succeeded because of the drastic communication advances. The customer is ultimately satisfied with the reliability of UPS to deliver on time. This is the marketing factor that sets UPS a step above the competition All decisions were made in the respect that the company would continue to bring the customer more than they expected. In turn United Parcel Service is an extremely profitable corporation. The environment provided by UPS keeps customers, employees, and managers working hard to keep up the high standards set by todays’ customers.
This is an excellent and thorough research on innovation and strategic management. The book has clearly outlined the management strategies that should be put in place for a smooth running of business. The authors of this book went forward and gave detailed information on innovative ideas that should be used in the modern businesses. The book has not only given out the management strategies and innovative ideas but also how both can be integrated to develop business organizations. In the book, authors have indicated that managerial strategies
IT management also prepared UPS for BCP-DR to avoid downtime. UPS’s IT infrastructure allowed customisations to incorporate unique functional requirements of customers. UPS also reduced its application development time by reducing rework. It created reusable modular applications. UPS has been very receptive towards the opportunities created by the IT to boost its core business. Even after this UPS was not able to keep up its pace with every valuable system development request. By 2000, UPS had a major share in domestic integrated package delivery services, but had an insignificant share in international, though the international market was growing at a double-digit rate. Therefore, the UPS management decided to allocate IT resources to the most strategic opportunities and preserve as appropriate via infrastructure
UPS is a global parcel transportation company, if we look at the numbers we could say that UPS is the third biggest parcel delivery company in the world.
The United Parcel Service (UPS) is a US fortune 500 company founded in 1907, which is becoming one of today’s largest global largest provider of parcel delivery, with approximately 12 Million package a day and that of 80% of it prior to strike in United States.
Prior to the interview I did understand that innovation architecture is an effective way to map out the potential paths that a company can take to gain success and uniqueness, but I did not realize how in depth those innovative portfolios should be. With this interview my new understanding of the innovative portfolios should consume of as many ideas as possible that will put the organization toward the projected goal and gain a competitive advantage. With this acquired knowledge from the interview, I now understand how businesses will suffer without the effective ideation process that builds the innovation architecture. Furthermore, I understand fully of the importance of teamwork and collaboration while constructing the innovations that will build the companies