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Business Relationships, Alliances, Partnerships

The company maintains several collective bargaining agreements with its employees. Among these are: a master agreement for its U. S. workers belonging to the Teamsters union; and collective bargaining agreements with the International Association of Machinists and Aerospace Workers and the Independent Pilots unions. This practice has started in 1916 when Casey approved that its drivers should join the International Brotherhood Teamsters union. UPS conducts its Asian operations through alliances with local delivery companies and commercial establishments.

In addition, UPS is accessible to its customers through its drop-boxes, its customer centers, independently owned UPS Store and Mail Boxes, through alliances with 2,400 partner locations and 15,000 authorized outlets in commercial centers. UPS has entered into special agreements with five municipalities in the United States for the financing of some of its facilities. These municipalities include: Louisville, Dayton, Dallas, Delaware and Pennsylvania.

Among these special arrangements are: a loan agreement with the Louisville Regional Airport for a bond of $149 million to cover the costs of developing the company’s facility in Louisville; a $108 million bond from Dayton for UPS’ airport facilities in that area; and a $100 million bond from the Delaware County for the development of UPS’ facilities in Philadelphia’s airport. VI. Future Plans The company sees growth opportunities in its Asian operations, particularly in the Indian and Chinese markets.

Because of these potentials, the company intends to maximize and capitalize on these opportunities. UPS also sees further expansion in the European market. Package shipment is an area wherein UPS has identified to have growth potentials due to new trends in managing inventories among businesses globally. The supply chain sector is another avenue that UPS will strengthen to meet the rising demands from different industries. The company envisions synchronizing the commercial world by developing solutions to business needs that would create additional value for the company.

UPS plans to continually enhance its global network and technology to better serve its customers. In order to continue its leadership and support its expansion plans for UPS Airlines, the company understands that its infrastructure is important. One of its upgrading plans is to retire older aircraft and replace them with the more efficient Boeing 767 jets. VII. Summary/Comments United Parcel Service is one of the leaders in the industry not only in terms of revenues and profits but also in terms of employee satisfaction.

The company’s success story has been a model to many start-ups and even to those who have been long in their business niches. From a $100 loan, the company grew into a multi-billion dollar company with revenues at $41. 3 billion in 2007. The company’s only formula for success is its code of ethics in doing business. UPS insists to do the right thing continually. Perhaps, this value system has been forgotten by many companies, thus, resulting to their dissolution. UPS maintains a large fleet, yet, it didn’t significantly diminish its earnings.

Many airline companies suffered large losses for the past couple of years due to crude prices but UPS maintained its profitability. In fact, for the year 2007, the company reported approximately $382 million of net income. UPS had seen other economic recessions in the past, and another one in the offing doesn’t pose a threat to its stability so long as it continues to uphold its business philosophy while adapting, utilizing and maximizing technological advances at present and in the coming years.

References

Answers. com Home Page. United Parcel Service. Retrieved September 23, 2008, from http://www. answers. com/topic/united-parcel-service United Parcel Service Home Page. Retrieved September 23, 2008, from http://www. pressroom. ups. com/global/frontpage/0,2759,,00. html United States Securities and Exchange Commission. (2008, February 29). United Parcel Service Form 10-K. Retrieved September 23, 2008, from http://sec. gov/Archives/edgar/data/1090727/000119312508043891/d10k. htm#fin71015_3

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