UPS IPO Case
Case: United Parcel Service’s IPO
Please answer the following questions. Limit your responses to four pages total. These should provide a good foundation for our next class discussion of the case.
1. How is UPS performing? Back up your assessment with your financial ratio analysis. What factors in your opinion are driving this performance?
UPS has grown from modest beginnings to an organization that ships for that 15 million packages a day with over 6.1 million customer in more than 200 counties as well as an estimated 54 billion dollars in revenue. UPS has had some ups and down, but for the most part have maintained strong. For example, UPS is a strong brand with a great market setting, cost and logistical advantage. They have built a strong supply chain management, distribution network and work force. One thing that really stuck out about the company, and as noted in the case is that many had joined the firm as part time workers while at college, and then stayed after graduation. It was not uncommon for employees to spend their entire working career at UPS. This really spoke volumes for the company and showed the faith that employees placed in the company. Some factors I believed needed improvement would be the customer satisfaction which was not on par with their competitors, and could have possibly looked at how management handled the finances of the company. Overall, I believe that UPS is a high performing organization that has built a brand and a successful organization from the bottom-up. When looking at financial ratio analysis for UPS, we must look at what set them apart from everyone else. If we look at the Profitability rations, we see the following reporting’s. From 1994-1998, we see Total Revenues increasing from $19,576 to 24,788, Total Operating Expenses increasing from $18,020 to $21,696 and Total Profit increasing from $1556 to $3090. These findings can easily justify why UPS is a best-of-breed company.
2. Does it make sense for
Please answer the following questions. Limit your responses to four pages total. These should provide a good foundation for our next class discussion of the case.
1. How is UPS performing? Back up your assessment with your financial ratio analysis. What factors in your opinion are driving this performance?
UPS has grown from modest beginnings to an organization that ships for that 15 million packages a day with over 6.1 million customer in more than 200 counties as well as an estimated 54 billion dollars in revenue. UPS has had some ups and down, but for the most part have maintained strong. For example, UPS is a strong brand with a great market setting, cost and logistical advantage. They have built a strong supply chain management, distribution network and work force. One thing that really stuck out about the company, and as noted in the case is that many had joined the firm as part time workers while at college, and then stayed after graduation. It was not uncommon for employees to spend their entire working career at UPS. This really spoke volumes for the company and showed the faith that employees placed in the company. Some factors I believed needed improvement would be the customer satisfaction which was not on par with their competitors, and could have possibly looked at how management handled the finances of the company. Overall, I believe that UPS is a high performing organization that has built a brand and a successful organization from the bottom-up. When looking at financial ratio analysis for UPS, we must look at what set them apart from everyone else. If we look at the Profitability rations, we see the following reporting’s. From 1994-1998, we see Total Revenues increasing from $19,576 to 24,788, Total Operating Expenses increasing from $18,020 to $21,696 and Total Profit increasing from $1556 to $3090. These findings can easily justify why UPS is a best-of-breed company.
2. Does it make sense for