What problem does service solve?

ADMIN 4900 Business Plan Final Paper

Part 1 

UPS Store on CSUSB Campus  

5500 University Parkway 

San Bernardino Ca 92407-2393

(909) 537-5000

csusb.edu/UPS

ups@csusb.edu 

Current Service problem to solve: Because the local post office is very busy due to high demand, they have been delaying postal services. Having a UPS Store on campus can provide postal service for the entire campus without any delays.

· Problem Characteristics:

· High demand in local postal service

· Low in space

· Low in resources

· Low in employees

· Unsatisfied customers

·  Problem effects on stakeholders:

· Unsatisfactory service = unsatisfied stakeholders

· Why is it important:

· It is important to solve the problem because it will affect UPS’ reputation in a negative way 

· Competitors will have more success if the problem isn’t solved.

Service Characteristics: Retail shipping, postal, printing

· Uniqueness, niche:

· UPS provides its services in 200 countries. 

· The largest package delivering service in the world 

· High/Low Cost:

· Rent for space

· Weekly payroll

· Equipment (Mailroom)

· Distribution Channel of Service 

· Provide a mail room for students’ easy access to their packages/mail

Part 2

· Industry history

· Market and History definicion 

· Industry- “a group of manufacturers or businesses that produce a particular kind of goods or services” https://www.vocabulary.com/dictionary/industry

· Market- “a group or groups of customers who require the products and services provided by an industry” https://threerooms.com/blog/difference-industry-sector-market

· Major competitors and descriptions

· Top 3 Competitors: FedEx, DHL, and USPS

· FedEx (https://bstrategyhub.com/fedex-swot-analysis/)

2. Strengths: Overnight Shipping service, tracks packages to provide instant real time updates, operates in 220 countries 

2. Weaknesses: Poor management of capacity demand, increasing transport cost

2. DHL (https://www.marketing91.com/swot-analysis-dhl/)

3. Strengths: growing in developing countries, largest global freight carrier

3. Weaknesses: Poor marketing

2. USPS(https://ukdiss.com/examples/united-states-post-office-swot-analysis.php)

4. Strengths: been around for 200 hundred years, located in almost every town across the nation

4. Weaknesses: Federal government institute, limited to diverse expansion, not in the free market

. Competitor Strategies and niche

3. FedEx supply chain allows quick overnight shipping

3. DHL: according to Tim Coltman, John Gattorna and Stuart Whiting, DHl divides their target market into segments for customer alignment at no additional cost 

2. Tim Coltman, John Gattorna, & Stuart Whiting. (2010). Realigning Service Operations Strategy at DHL Express. Interfaces (Providence), 40(3), 175–183. https://doi.org/10.1287/inte.1100.0491

3. USPS provides services for the US

· Product/Service History

. Service features

1. National and international delivery system 

1. Tracking 

1. E-commerce

1. Contract logistics

. What problem does service solve?

2. Delayed shipping and delivery 

2. Shipping protection

2. Tracking assurance 

. Category sales 

. Previous Performance Versus Competition History( https://csimarket.com/stocks/compet_glance.php?code=UPS )

4. UPS stock performance was 39.66% while competitors were at 29.58% 

. Estimated market shares (https://www.datanyze.com/market-share/logistics–129/ups-market-share)

5. 128%

· Company History

. Start ( https://www.historylink.org/File/1679 )

1. 1907

. Size

2. Small office 

2. Deliveries made by foot or on bike 

. Major changes 

3. 1929 started overing air services through private airlines

. Mission statement (https://mission-statement.com/ups/)

4. Grow our global business by serving the logistics needs of customers, offering excellence and value in all that we do. Maintain a financially strong company with broad employee ownership-that provides a long-term competitive return to our shareowners. Inspire our people and business partners to do their best, offering opportunities for personal development and success. Lead by example as a responsible, caring, and sustainable company making a difference in the communities we serve.”

· Organization Plan

. Who is in charge?

1. Business partners Jessica Mercado, Nam Doan, Ziyang Chen

· Department/Division leader

· Domestic and international shipping – Jessica

· Mailbox services- Nam & Ziyang

· Leadership Style

· Training new hires with a coaching leadership style 

· Hiring practices 

· Great attitude for customer service 

· Look for drive and vision

Part 3

· Technology Available 

· Access to 2 computers in store 

· Access to 2 more computers for customers

· Customer access to copy machine

· Customer access to printer 

· Customer access to fax machine

· Primary Research Collection

· Personal Interviews

·  Interview current UPS customers on previous UPS experience

1. Can help improve service satisfactory 

. Focus groups 

2. get online feedback from customers on technology in store and customer service experience

. Survey Data Collection and Analysis

3. Collect all surveys and data to identify trends in sales

3. Request surveys to collect data for store/service improvements 

.  Customer Purchase Data

4. Observe, track  and document customer purchases

4. observe, track and document customer interactions with in-store technology 

· Technology Advancements

. Operational

1. Software for package labels 

1. Scan barcodes and labels to input into tracking system in central computer 

1. Use UPS Global View software to track packages

. Media Driven

2. Collab with csusb to create social media platforms and market UPS on campus store 

2. Promotions with CSUSB social media platforms

. Data Collection

3. Require customers to complete quick and simple surveys on the store computer after use

1. Forces customers to provide feedback

PART 4 (Marketing)

SWOT Analysis

Internal factors

Strength

It has a broad service portfolio that is able to carter for the diversified needs of the various segments around the campus

Its extensive network distribution makes delivery to be done with ease since it delivers to all corners of the earth.

Its global presence has made the campus has really benefited the campus

Its constant innovation and use of technology has improved the way service is being delivered

Weaknesses

UPS store has been experiencing an operating expense which is rising due to maintenance in plants and equipment and also the growing labor expenditure

The brand is over dependent on U.S market for growth and revenue

External factors

Opportunities

The emergence of digital marketing opportunity where it can use customer relationship model to promote itself.

Diversification is also another opportunity where the brand can diversify into related or new areas of business as a way of business growth and expansion

Employee engagement is an opportunity where the company can use digital technology to create a better relationship with its employees

Threats

Regulatory threats since it operates in over 200 countries regulation has been a threat due to compliance and legal cost

Competition is also another threat as companies like FEDEX and DHL who are their major competitors and due to high competition expenditure used in the market has also risen

Economic fluctuation has been a threat especially in the international markets and that has subjected the company into economic pressure

Customer Analysis

Total Market Size

It is found in over 200 countries world-wide and has generated more than $74 billion in terms of revenue in 2019

Target Market trends growth/shrinkage

Its main targets are large corporation and individuals are also part of the market. The large corporations normally ship large amount of packages and that is why they are targeted

Market Potential and realistic future forecast

The market is expected to grow at a favourable rate due to the opportunity that are available for diversification of products

Barriers to entry such as technology, qualified employees, high start-up costs

Entry to this market is high since the cost used to operate and manage this business is very high and also the constant change in technology which forces the organization to adapt is very expensive to the Organization.

Demographic Market Segment

Age-History

It was founded in 1980 and at that time it was known as Mail Boxers which later changed to UPS store in 2003

Gender

Both men and women use the UPS store services

Marital Status- Family Lifecycle

UPS store services can be used by people who are single, married and also those with families

Income –Social Status

UPS store services is used by people who are financially stable

Education- Social status

People from all sorts of background enjoy UPS store services including campus students and staffs, as long as a person is aware on how to use their services

Purchase bahavior

It is normally fluctuating depending economic level a certain country is experiencing

Communication Style

Communication can be done through emails, phone calls, and in some cases letters

Geographic

Most of its market is normally based in the U.S

Other

People from different ethnic groups have the opportunity to use the services of UPS store services

Psychographic Consumer Behavior

Personal activities

Reading different books, doing assignments

Group activities

Going camping, hiking and ice skating

How time is spent

They spend much of their time doing research on different assignment

How they think (decision process)

Make decisions based on current trends and also influence from peers

Other

They like using in the different social platforms available

Media and Communication used

Traditional

Newspapers, magazines, TVs and Radio

Non-traditional

Ads, affiliate marketing, voice marketing

Social

Facebook, Instagram, Twitter

Search engine

Search engine optimization

PART 5 (Public Administration)

Identify local, state or international laws or policies that will impact organizational operations including any:

Environmental regulatory issues

The clean Air Act of 1963 which was designed to control air pollution, this will impact UPS stores since it uses vehicles which sometimes pollute the air

Planning and zoning issues

The California Planning and Zoning Law government code 65000-66499.58 amended in 2018

Employee’s compensation requirement and labor issues

The Fair Labor Standard Act (FLSA), it’s an act that prescribes the standard amount of overtime and wages paid, this act will be followed by the company whether they performing well financially or not

Licensing or permit requirement

General California city business license is required in California to operate a business

Impact of any international laws or protocols

Community engagement plan

Identify community organization that may impact the organization

Churches, Schools, and hospitals

Identify government entities that will impact organization activity

California Labor and workforce development agency

California business, consumer services and housing agency

Identify local demographics and how they impact the organization

The census bureau in 2018 had estimated the population in California to consist of 59.5% whites, 14.7 Asians, 5.8% African American, 36.6% non-Hispanic whites. This means that the whites had the highest population meaning they would be form the majority of potential customers

Identify local, state and national organizations recommended to be joined or supported

USAID

Identify issues of Ethics or Corporate Social Responsibility that could impact organizational operations

Impact of product or service or employment plan

Exploiting workers by making them to work beyond their normal working hours without any payments

Diversity Management plan

Showcasing abusive behaviors especially from managers

Social Equity issues, particularly those related to race or gender

Employing people based on ethnic background rather than academic credentials

PART 6 (ACCOUNTING AND FINANCE)

Purpose of financial documents

Demonstration to possible investors

Investors use the financial statement to see whether the company is making profit or not and this will help them in knowing whether the business is viable for investment

Provide a measure to actual results

At the end of the financial period we are able to measure the results of the organization by knowing the expenses used and revenue generated

Risk evaluation

It will assist us in knowing the level of risk will be faced with and whether to averse the risk or to take the risk so that in the long-run the company might grow

Types of financial documents

Personal financial statement

Sources and uses of funds

Sources of finance include equity, venture funding, retained earnings and working capital loans. Funds are used for operating expenses, capital asset purchases

Proforma cash flow statement

Income statement

Balance sheet

Common size financial statement

Three-year income projection

Break-even analysis

Financial statement analysis

Liquidity analysis

Profitability analysis

Debt Measures

Investment measures (ROA and ROI)