United States Postal Services

United States Postal Services

1.     By visiting the United Parcel Service Web site you can find more details about the company’s history and how it uses information technology in its daily operations.  You can catch a glimpse of UPS’s network-based system for package tracking: UPS customers can track the status of their packages from this site any time of day, anywhere in the world, even if they are still in transit, by entering their package tracking numbers online.  They can also calculate shipping costs and time-in-transit, schedule package pickups, and order shipping supplies from the Web site. 

How does this Website enhance UPS’s competitive positions?  Change the way it conducts businesses?

UPS make use of technology which provides customers with all the information required to assist them with tracking or sending a letters or packages.  The website with its highly effective method it allows the clients to learn the shipping costs almost instantly without the need of calling for assistance or visiting a UPS location.  UPS make available information within UPS site for faster and efficient response to customer’s questions which helps the company needless employees by having more resources available on the website.  Each employee when picking up or delivering a package have a GPS system that allows UPS locate each of their drivers, conditions of the road and conditions of the truck as well.  Not only does GPS help UPS learn what the status of their employee is, but it also helps to track if the employee has redelivered packages to their destination.

2. How does the site relate to UPS’s business strategy?  How does it benefit UPS’s customers?  How is UPS becoming partners with its corporate customers?

The United Parcel Services and United States Postal Service have many similarities some of their similarities are their business strategies, resourceful website, inventory strategy and its resources available on their website to also benefit customers by tracking the status of their merchandise weather if it’s a shipments or receiving a package.  Both United Parcel Services and the United States Postal Services keep updated information of weather any type of mailing as requested by the customer status in location and a date of delivery. UPS has become partners with corporate because in this way their current equipment available doubles and shipment becomes efficient which creates a higher standard of customer services.  This also helps make available the transfer of large loads via air through their airlines by sharing UPS information.  Both corporate strategies and efficiencies as well as security is present during the company’s merge which gives an advantage to UPS and a capability to better compete in the market with other competitors.

3. What are the strengths and shortcomings of this Web site for use in the international market? After examining the site, suggest ways for the company to increase its functionality and to make it more useful for its customers.

Some of the immediate revisions and editing made to the websites helps most countries and ethnicities understand the website which enables them to use the website to their advantage.  The different languages included in the website are of great advantage to both companies’ this will not only attract services nationally but also internationally with a high change of increase in customers.  To enhance the use of both websites it is recommended to set a language and/or country of preference on the top right or somewhere in the website where is visible.  Those that do not speak the language reflected on the site can easily this section to change the sites language to their preference.  This will allow the user to have access to the site at the language preference instantly.  The communication system in place is of great help to customers continuing to enhance the system and updating for a more accurate use.

4. Select UPS Business Solutions and explore its array of services How do each of these capabilities contribute to UPS’s bottom line?  As the CEO of a manufacturing corporation, why might you want to turn to these services?  How could they save you money, save you time, lower your costs, and increase your profits?

UPS technology provides customers with high quality of information they may or will need to ship or receive a shipment.  Also companies that choose to make business with UPS give them a reduced price when they choose to do business with UPS for all their shipments.  This gives the company an affordable shipment cost.  UPS is a National mailing company which serves all over the United States.  This site also provides information in different languages which provides information internationally.  As for the GPS it helps drives arrive to their destination and find different ways to get to a location when road conditions become a challenge.  The communication system also allows the company to provide updated information to the customer when checking the status of a shipment or delivery. Drivers are also able to connect pick up and deliveries to each other for a fast arrival and pick up.  This reduces the driving and the expenses that come with it.  This also allows the supervisor to check if the driver is not going out of his way to follow through with job requests. 

United States Steel

United States Steel

1.     Summarize U.S. Steel’s current competitive situation.

The USS current competitive situation is impacted by the company’s current location.  USS to compete with the top two company’s Arcelor a Steel European company and POSCO a Steel South Korean company USS needs to be relocated closer to a seaport to cut expenses.  The USS is unable to complete with Arcelor or POSCO due to high cost of health benefits, pension and employees salary.  As mentioned by “Frank Voelker, CEO of Alstom Power Conversion, who has worked on botha POSCO, and USS systems, says USS’s are every bit as good as POSCO’s and better than most of its competitors.  But USS cannot do anything about its lack of a seaside location because of the high cost of moving its facilities”.

2.     How are information systems related to the way U.S. Steel runs it business?  What role is played by supply chain management systems?

The relationship in USS to information systems helped the business to achieve an organized inventory count and an effective communication with the different locations as well as with customers.  These new software allow the company to manage their suppliers; help companies set up an extranet for customers to place orders, check status, exchange electronic contract documents, provide shipping information, keep inventory of raw materials and other equipment needed in the company to run.

3.     What management, organization, and technology factors were responsible for USS’s inability to compete with other steel manufacturers?

USS had 120 processors and each one them used an information systems which did not communicate with each other to learn when a process was completed.  USS is challenged by POSCO and Arcelor two steel making companies that have access to a seaport.  USS was not sponsored by the U.S. government when the company requested a seaport near USS Company.  This is costly to the company as the company has to transport equipment to a seaport at a higher cost than POSCO and Arcelor.  Both POSCO and Arcelor have access to a seaport to import and export.

4.     Describe how USS has responded to its global and American competition.

USS was able to upgrade their system information to have effective and immediate information available for customers when inquiring for their orders.  The company also reduces the amount of man labor needed with the new technology from 9,300 employees to 2,100.  This new technology also allowed USS to boost the amount of steel output from 270 tons per hour to 335 tons per hour.  These new technology helped USS become efficient by having very little room for errors.

5.     How helpful were information systems in addressing USS problems?

The information systems were efficient, faster, with precise information to provide customer of their order status.  This also help the company from within to inventory all equipment as well the precise information from one machine to the next.  The information systems also decrease the cost of labor by the thousands and produced more steel.  Customers or employees are able to place order in the system through internet. 

ShopKo and Pamida: Systems Triumph or Tragedy?

ShopKo and Pamida: Systems Triumph or Tragedy?

1.     Evaluate the role of information systems in the way ShopKo and Pamida run their business. How important are they?

ShopKo’s information system help determine the price markdowns for overstocked items.  The determination of the price is by the clearance price from the previous year which did not help the company’s financial struggles.  The company did not have the demographic information of the different ShopKo’s stores it had as an item could be more popular in one city, but not another.  This information system became ineffective and costly to ShopKo.  The new system helped the company price its products based on various factors, including season, geography, local tastes, and historical demand.  All item markdowns were optimized to each store rather than the entire system determining these for all stores.  These help the company increase their profit and decrease the need for human labor. 

For Pamida’s their strategy was to maintain a high stock rate and its weakness was that stores were usually out of stock on items in the store, but not the warehouses.  Pamida maintain a high number of items in their warehouses and their software was not efficiently communicating with the stores.  These helped decline in the company’s profit by millions of dollars, and lawsuits were filed by shareholders.  The current technology for Pamida was not communicating effectively therefore the inventory was high in the warehouse and low in the stores.

2.     Evaluate the importance of Pamida's distribution center consolidation project for both Pamida and ShopKo. What management, organization and technology factors prevented Pamida's new distribution center from working successfully?

Was to consolidate the distribution center from Pamida and ShopKo.  Their primary goal was to established a distribution center that will permit Pamida’s store to successfully maintain a high in stock rate than in the warehouse. As for ShopKo goal was to expand the Pamida store into small towns, and the distribution center was key to achieving this objective.  One of the challenges was to move Pamida’s distribution to a full service facility.  Also the technology was outdated Catalyst, International warehouse management software and the mainframe systems. Unfortunately, the CIO assumed that the existing technology would satisfy management objectives because the technology had worked fine in the past. The case points out that the existing technology was inflexible and required the new distribution center to conform to the technology, as opposed to having the technology support the new management and organizational requirements.

3.     Are ShopKo and Pamida using information systems effectively? Why or why not? How much value do their systems provide to the business?

Before their systems were ineffective for their company which did not help ShopKo place to correct markdowns according the demographics and sales, furthermore, Pamida was unable to keep their stores stock as all their warehouses had the necessary inventory the stores needed to sale.  The system is vital for this company when the systems was improved and aligned with management objectives, the information systems enabled ShopKo and Pamida to achieve objectives and earn a profit.

4.     If you were the CEO of ShopKo, how would you have addressed the problem? If you were the CEO of Pamida when it was purchased by ShopKo, would you have recognized the problem? Explain. How would you have solved the problem?

As the CEO of ShopKo, one should recognize that the consolidation project required changes in the information systems for both companies as well as examining the management team.  The functions of a company usually rely on the success of the employees or failure.  At this point I would have addressed the problem for ShopKo to the new CEO for a smooth transition.  As the new CEO for ShopKo and Pamida it was imperative to have the companies communicate with each other through a information system that will allow both the warehouse and the stores know what stores need what items replenish?  This helps the profit increase as each store is different from the other.  My protocol would be check the Information system how can it effectively communicate and adapt to demographics and sales, next is evaluate the employee team in each store, and audit each store.

5.     What management challenges does this case study illustrate? Explain your answer.

Both ShopKo and Pamida face management challenges, including strategic business, information architecture and infrastructure, information systems investment, and responsibility and control challenges. Both companies were in desperate need of new Information system investment.  The informational system is high demand with the communication break down with both companies.  The management team needs to be evaluated as an information system is vital to the company, and very little action is taken to make the switch.  The information architecture and infrastructure was not working correctly as there were loss in both places.  ShopKo was low in profit due to the lack of demographic and sales evaluations for each store and taking action to place the same items on clearance in all stores.  Pamida made good sales but had many empty shelves and most of the inventory in warehouses.  With the profit lost it was evident that management needs to be restructuring for increase the acceleration for profit increase and not decrease.