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Case synopsis

The case taken place at logistic company United Parcel service. Until 1994, UPS had so heavily concentrated on continuously improving its operations that it had compromised on quality and customer service. Many analysts commented that UPS did not pay attention to customer needs and customer satisfaction. In 1994, due to increasing competition, UPS realized the need to be more customers responsive and embarked on a major corporate transformation initiative. This case gives a detailed overview of the various company initiatives to look upfront at future possible situations through long term strategy and scenario planning.

There are some possible issues that I can identify in this case. 1. The CEO knew that future is full of uncertainty and many aspects in the world that can affect the continuance of the company. 2. Most managers are so focused on short term whereas needs of long terms goal to look up to the horizon where the company headed. 3. Scenario planning has good purpose, but management failed to deliver the true purpose to the rest of stakeholders. 4. There are possibly wild card event that hasnt considered in scenario planning.

Scenario planning which sometimes called contingency planning is a structured way for organizations to think about the future. A group of executives sets out to develop a small number of scenarios, stories about how the future might unfold and how this might affect an issue that confronts them.

This UPS case was a good example how important a company to have view upfront in the future and many scenarios that possibly occurred in the future. UPS is taking this scenario planning seriously. Various attributes are taken to consideration for scenario planning and also possible outcomes that might happen. Management involved all stakeholders in making scenario of the company from their perspectives, reviews it and held simulations. By knowing the scenario that possibly occurred, they could prepare needs and actions needed in the future. It is also important that company needs to have outside perspectives i.e. from consultant since outsider might have broader view of the company than look up from inside.