The UPS Stores Total Quality Management Adoption

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Could the implementation of the main principles of the TQM result in the significant increase of the level of performance of a company and its incomes?

Nowadays, in terms of severe rivalry, UPS company tries to implement the strategy that will be able to guarantee its success and gradual improvement of the quality of companys products and services. That is why, today the company works in accordance with the main principles of the Total quality approach. There are several main reasons for this choice. The first obvious reason is that being the worlds greatest franchisor of retail shipping and business centers, the company needs constant development and improvement in order to remain competitive and hold leading positions. TQM (Total Quality Management) implies the usage of various means and remedies in order to improve all spheres of activity of the company, which results in significant improvement of the level of performance, quality and efficiency of a company¹.

It should be said that the emphasis on the continuous and wise improvement of all kinds of activity, performed by the company, obviously helps UPS to save its image and continue growth. However, it is possible to admit that implementation of the main principles of the TQM becomes possible due to the promotion of top and other managers, who try to guarantee the improvement of the department which they head. In other words, it should be said that managers introduce and reward actions that are aimed at creating the positive image of a company and increasing the level of its performance². However, one can also admit that there is another benefit that results from the implementation of the main principles of the TQM.

The thing is that the staff of USP also becomes involved and masters its skills. Being the part of the process which is characterized by the continuous evolution and improvement, a worker is not able to remain steady and has to master his/her skills in order to be able to face new challenges which the company might face. Another peculiarity of the business model used by USP in its functioning is the thing that the interaction between a great number of various departments is perfectly aligned and the needed information could be delivered to a worker in a very short period of time.

It is obvious that it results in significant increase of the efficiency of a company and helps to get rid of extra bureaucracy Moreover, workers of a team are encouraged to perform their duties fast and efficient. Top managers understand that activity of these people influences the whole company and, that is why, deal a great attention to the development of staff and training. With this in mind, it is possible to conclude that the business model of the company is organized in accordance with the main principles of the TQM and helps it to function more efficiently.

The Case of UPS Store

It should be said that nowadays, a great number of companies, which were taken as beneficial ones, collapsed, though UPS Store continues its functioning and continues to remain beneficial. According to its annual report, in 2014 the total revenue was $58,232 million³. This sum can be taken as the evidence of the efficient functioning of a company and good perspectives that it has. The main strategy of the company lies in the continuation of its functioning in the given sphere and developing of services provided to its customers.

It should be said that nowadays the company has more than 2, 700 operating facilities and about 9.8 million customers⁴. It could be taken as the fact that shows the blistering progress of a company, that had been founded in 1907. Moreover, such a blistering development helped the company to increase its incomes significantly and in 2014 it adjusted net income increased 1.2 percent, to $4.39 billion on a 5 percent increase in revenue, to 58.2 billion⁵. It means that the companys performance is higher than average as it terms of world financial crisis it manages to improve its showings and increase the annual revenue.

Moreover, according to the latest strategic plans, the company aims at opening new departments that will be able to provide a job for a greater number of people and increase the level of incomes of UPS. According to these plans, UPS is going to make about 1$billion investment in Europe in order to expand the ground network capacity⁶. It is needed because of the blistering tempos of growth of the company which UPS experienced in the European region.

Intention to seize new areas and take on new markets could be taken as another evidence that shows the high level of the companys performance and also results in the increase of the level of trust towards the company. Additionally, the usage and implementation of various innovations like ORION⁷ in the process of functioning of a company could not but increase its efficiency and general performance. With this in mind, it is possible to acknowledge that the USP Store nowadays has stable showings which serve as the evidence of its efficient performance and great incomes that in their turn, promote further development of the company.

References

The UPS Store Difference. (n.d.). Web.

Thompson, A., Peteraf, M., Gamble, J. & Strickland III, J. (2013). Crafting & Executing Strategy: The Quest for Competitive Advantage: Concepts and Cases. New York: McGraw-Hill Education.

UPS. (2014). Networked for Growth. 2014 Annual report. Web.

Notes

The UPS Store Difference. (n.d.). Web.
Thompson, A., Peteraf, M., Gamble, J. & Strickland III, J. (2013). Crafting & Executing Strategy: The Quest for Competitive Advantage: Concepts and Cases. Ney York: McGraw-Hill Education.
UPS. (2014). Networked for Growth. 2014 Annual report. Web.
Ibid.
Ibid. p. 3.
Ibid.
Ibid.

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The UPS Stores Total Quality Management Adoption

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