Final Final PresentationPresentation

Presented By: Presented By: Nicholas BeersNicholas BeersMark GerbanMark GerbanJeff Wynkoop Jeff Wynkoop Yee Tze KangYee Tze KangRay LauRay LauDave SchmelDave Schmel

December 4, 2002December 4, 2002

5 Year Strategic Plan5 Year Strategic Plan

2x2 Analysis of UPS and its Competition In Overnight Deliveries

Slower Faster More Expensive Less Expensive

DHL Airborne Express

Federal Express

USPS

UPS

Added ServicesAdded Services

• E-mail Confirmation– 1 year development– 3 years until full implementation

• 24 hour delivery– 4 years to develop– 6 years until full implementation

Hybrid TrucksHybrid Trucks

• One year to develop

• 6 years to complete

• 6000 per vehicle

• Chief Operating Officer in charge of implementation

Sports marketingSports marketing

• Acquiring naming rights of sports arenasAcquiring naming rights of sports arenas– New YorkNew York– SydneySydney– TokyoTokyo– LondonLondon– ParisParis

• 3 mil/ per venue/year 15 mil year3 mil/ per venue/year 15 mil year

• Reports to Chief Marketing OfficerReports to Chief Marketing Officer

United WayUnited Way

• Donations of 5 mil/yr– Corporate Sponsorships– Employee matching gifts

• Reports to Chief Marketing Officer

Project Development Schedule

Qtr 1 Qtr 2 Qrt 3 Qrt 4 Qtr 1 Qtr 2 Qrt 3 Qrt 4 Qtr 1 Qtr 2 Qrt 3 Qrt 4

Qtr 1 Qtr 2 Qrt 3 Qrt 4 Qtr 1 Qtr 2 Qrt 3 Qrt 4 Qtr 1 Qtr 2 Qrt 3 Qrt 4

Year Two Year Three

Increased Salaries

Outsourcing

Project Steps:

Hybrid Trucks

Email Pick-Ups & Delivery

United Way

Project Steps:

Product Phase Key:

24 Hour Delivery Service

Year One

UPS International Expansion - England

Sports Teams & Arenas

Hybrid Trucks

Email Pick-Ups & Delivery

United Way

Increased Salaries

Outsourcing

UPS International Expansion - England

Sports Teams & Arenas

24 Hour Delivery Service

Year Six

Development

Marketing

Purchasing

QA Testing Completed

Year Four Year Five

Gantt ChartGantt Chart

UPS E-mail ConfirmationUPS E-mail Confirmation

• Database Hardware and Software: $569

• E-mail Software and Hardware: $149

• 15% of the UPS workforce will use this software

• Cost of Implementation for in the next five years: $39.8 Million

24-Hour Delivery and Salary Increase24-Hour Delivery and Salary Increase

• All UPS truck drivers and pilots will be given a 5% salary increase

• Total cost of implementation for salary increase program in the next five years: $640.77 Million

• UPS truck drivers and pilots chosen for the 24-hour delivery service will be given a 15% salary increase

• Total cost of the 24-hour delivery

program within the next five

years: $239.97 Million

Outsourcing LogisticsOutsourcing Logistics

• UPS will aim to outsource their logistics services to at least 30 companies

• UPS will earn high profits from their logistic services

• The external logistics expenses will only be a small fraction of what will be earned

• Cost of above device = $200000. (ABM Company)

• Cost of implementation = $200000 * 30 = US$6million

• Functions include scanning for drugs, weapons etc.

Drug Scanning DevicesDrug Scanning Devices

Product released in October 2002

Hybrid TrucksHybrid Trucks

• Term "hybrid" represents the merging of gasoline and electric power.

• Extra cost of an electric motor and battery in a hybrid vehicle = $6000 (Honda Company)

• Cost of implementation = $12million (approximate)

We Drive to SucceedWe Drive to Succeed

• Commercials

• Internet "pop-ups“• Mailer

New Advertising InitiativesNew Advertising Initiatives

• Sports Stadiums

• Benchmark Tastykake

driver promotion

THE ENDTHE END