BUSINESS MODEL OF UPS GROUP 18 ! NEVEREVER ! Ryan Detweiler Michelle Fisher Michael Hines

BUSINESS MODEL OF UPS GROUP 18 ! NEVEREVER ! Ryan Detweiler Michelle Fisher Michael Hines Bora Karaoglu Neslihan Kucukates Murat Omural Sezin Umar Feyzettin Yilmaz

SHORT COMPANY HISTORY COMPANY WEBSITE CRITICS ASSUMPTIONS VALUE PROPOSITION ONLINE OFFERING RESOURCE SYSTEM FINANCIAL MODEL CONCLUSION

SHORT COMPANY HISTORY • United parcel service is founded during the period 1907-1912 in America to cover the need of private messenger and delivery services. • The company made its first expansion beyond Seattle to Oakland in 1919 and chose its present name, United Parcel Service. • 1924 was the year of UPS’ debuting of the technological innovations that would shape its future. • UPS became the first package delivery company to provide air service via privately operated airlines in 1929. • In 1953 UPS resumed air operations by offering two-day service to major cities on the east and west coasts. • By 1985, UPS Next Day Air service was available in all 48 states and Puerto Rico.

SHORT COMPANY HISTORY GO ON • In 1985 UPS started international air service between the United States and six European countries. • In 1989, domestic air service was added in Germany. • By 1993 UPS was delivering 11.5 million packages and documents a day for more than one million regular customers. • In 1994, UPS.com went live and consumer demand for information about packages in transit soared. • In 1995 UPS formed UPS Logistics Group to provide global supply chain management solutions and consulting services. • In 1998, UPS Capital was founded to provide a comprehensive menu of integrated financial products and services, which enabled companies to grow their business.

COMPANY WEBSITE CRITICS ADVANTAGES; • USER-FRIENDLY • EASILY ACCESSIBLE • PROVIDES LINKS • LOADS FAST • AVAILABLE ANYTIME

COMPANY WEBSITE CRITICS DISADVANTAGES; • TOO FORMAL • NOT ATTRACTIVE ENOUGH • REGISTRATION TAKES LONG

ASSUMPTIONS • UPS has several sub companies • Referencesare generally from www.ups.com. We cannot test the truth of information. • We neglected changes during last year. • We used generally data of US for finance; it may change for UPS worldwide. • For the analysis of business model, we thought general work of UPS. • At online offering part, we assumed that there is a strong competition

VALUE PROPOSITION · CUSTOMERS · PRODUCTS & SERVICES · MARKETS · TECHNOLOGY · SUSTAINABILITY, PHILOSOPHY & SELF-CONCEPT · CONCERN FOR PUBLIC IMAGES

CUSTOMERS Customer benefits from many things at UPS like: just in time and hand-to-hand transportation systems. Moreover small shifts more frequently of UPS make customer benefit increase with 1.3 million packages and documents international and 13.6 million packages and documents in USA.

PRODUCTS & SERVICES As a delivery company, UPS service as;Key Services;·Logistics and distribution·Transportation and freight (air, sea, ground, rail)·Freight forwarding·International trade management and customs brokerageSpecialty Services;·Service parts logistics·Technical repair and configuration·Supply chain design and planning·Returns managementUrgent parts delivery

MARKETS *Africa *North America*South America *Europe*Asia *Caribbean *Middle East *Central America *Australia/New Zealand

TECHNOLOGY Electronic Data Process (90 % of all shipments)Unique Network Structure88000 package cars, vans, truckers and motorcycles257 Jet Aircraft326 Chartered AircraftOther Investment of technology ($ 600 million)

ONLINE OFFERING • Scope of Offerings • Customer Decision Processes

Scope of Offerings Some of the features that UPS offer online are as follows: • UPS Signature TrackingTM Tool - obtains valuable Proof of Delivery information including a digitized signature and delivery address • UPS Rates & Service Selection Tool - lets online shoppers compare prices and select shipping services • UPS Time in Transit Tool – enables customers to compare the speeds of different UPS shipping services to everywhere UPS delivers around the world • UPS Address Validation Tool- ensures that customer-entered shipping addresses are correct at the time of order • UPS File Download for Quantum ViewTM Tool - automates retrieval of Quantum View files, which can then be integrated into back-end systems • UPS Tracking Tool - provides up-to-the-minute package status to your customers • UPS Shipping Tool - brings UPS Web-based shipping to employees' desktops.

ONLINE OFFERING

Some examples of the partnerships it will have to develop include: • IInternet Service Provider (ISP) • PPackaging supplies company • TTransportation providers • GGas/diesel company • CCredit card approval company • RRoute planning software • SSupply chain/logistics businesses

FINANCIAL MODEL Financial Highlight of UPS · REVENUE MODEL · SHAREHOLDER VALUE MODEL · GROWTH MODEL

SHAREHOLDER VALUE MODEL 1,533,333,334 shares of Class A-1 Common Stock 1,533,333,334 shares of Class A-2 Common Stock 1,533,333,334 shares of Class A-3 Common Stock 5,600,000,000 shares of Class B Common Stock 200,000,000 shares of Preferred Stock

CONCLUSION • UPS has a business to costumer (B2C) model relying on balancing economic, social and environmental objectives.That makes also crucial for its employees, customers, communities and shareholders.

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BUSINESS MODEL OF UPS GROUP 18 ! NEVEREVER ! Ryan Detweiler Michelle Fisher Michael Hines