For this assignment, you will analyze one international company of your choice. (1800-Flowers)
You will:
1. Discuss the five major kinds of drivers of globalization as it applies for your chosen company.
2. Analyze the basic needs potential for the markets of your chosen company.
3. Analyze the applicable financial and economic forces.
4. Analyze the applicable political and legal forces.
5. Analyze the applicable sociocultural forces.
6. Analyze the applicable competitive forces.
2500+Words
Solution
About Company :
United Parcel Service, Inc. (UPS) is the world's largest package delivery company and a
provider of supply chain management solutions.The global logistics company is headquartered in
Sandy Springs, Georgia, which is part of the Greater Atlanta metropolitan area. UPS delivers
more than 15 million packages a day to more than 6.1 million customers in more than 220
countries and territories around the world
UPS is known for its brown delivery trucks and uniforms, hence the company nickname
"Brown". UPS also operates its own airline and air cargo delivery servic
On August 28, 1907, James Casey founded the American Messenger Company with fellow
teenager Claude Ryan in Seattle, Washington, capitalized with $100 in debt
In 1913, the first delivery car appeared, a Model T Ford. Casey and Ryan merged with a
competitor, Evert McCabe, and formed Merchants Parcel Delivery. Consolidated delivery was
also introduced, combining packages addressed to a certain neighborhood onto one delivery
vehicle.
UPS's primary business is the time-definite delivery of packages and documents worldwide. In
recent years, UPS has extended its service portfolio to include less than truckload transportation
(primarily in the U.S.) and supply chain services. UPS reports its operations in three segments:
U.S. Domestic Package operations, International Package operations, and Supply Chain &
Freight operations.
UPS's primary business is the time-definite delivery of packages and documents worldwide. In
recent years, UPS has extended its service portfolio to include less than truckloadtransportation
(primarily in the U.S.) and supply chain services. UPS reports its operations in three segments:
U.S. Domestic Package operations, International Package operations, and Supply Chain &

Freight operations.
U.S. Domestic Package operations include the time-definite delivery of letters, documents, and
packages throughout the United States.
UPS has service worldwide, including Israel's Ben Gurion International Airport
International Package operations include delivery to more than 220 countries and territories
worldwide[7 including shipments wholly outside the United States, as well as shipments with
either origin or distribution outside the United States.
Competitors
Major competitors in the United States include United States Postal Service (USPS) and FedEx,
as well as regional US carriers such as OnTrac, Eastern Connection, and Lone Star Overnight. In
addition to these domestic carriers, UPS competes with a variety of international operators,
including Canada Post, Purolator, TransForce, DHL Express,Deutsche Post (and its subsidiary
DHL), Royal Mail, Japan Post, India Post and many other regional carriers, national postal
services and air cargo handlers (see Package delivery and Mail pages).
More recently, the continued growth of online shopping, combined with increasing awareness of
the role transportation (including package delivery) has on the environment, has contributed to
the rise of emerging competition from niche carriers or rebranded incumbents. For instance, the
US Postal Service claims "greener delivery" of parcels on the assumption that USPS letter
carriers deliver to each US address, six days a week anyway, and therefore offer the industry's
lowest fuel consumption per delivery. Other carriers, like ParcelPool.com, which specializes in
residential package delivery to APO/FPO addresses, Hawaii, Alaska, Puerto Rico, and other US
Territories, arose in response to increased demand from catalog retailers and online e-tailers for
low-cost residential delivery services closely matching service standards normally associated
with more expensive expedited parcel delivery.
Five major kinds of drivers of globalization :
Government globalization drivers : include common product and technology standards, a benign
regulatory climate and favorable trade policies. Government drivers are important in forming the
competitive environment because of the presence or absence of favorable trade policies;
government-operated competitors or customers; and technical standards. A government is the
system by which a state or community is controlled. In the Commonwealth of Nations, the word
government is also used more narrowly to refer to the collective group of people that exercises
executive authority in a state. . Government of any kind currently affects every human activity in
many important ways. For this reason, political scientistsgenerally argue that government should
not be studied by itself; but should be studied along ith anthropology,
economics,environmentalism, history, philosophy, science, and sociology.
Government normally consists of legislators, administrators, and arbitrators. Government is the

means by which state policy is enforced, as well as the mechanism for determining the policy of
the state. A form of government, or form of state governance, refers to the set of political
systems and institutions that make up the organisation of a specific government.
Competition : The actions of competing firms define competitive globalization drivers and create
interdependence between geographical markets. High levels of competitive diversity, industry
change and trade increase the potential for globalization. Competition is also a major tenet of
market economies and business is often associated with competition as most companies are in
competition with at least one other firm over the same group of customers, and also competition
inside a company is usually stimulated for meeting and reaching higher quality of services or
products that the company produce or develop.
Cost Globalization: Differential costs and global scope economics are cost globalization drivers.
The belief that a single market is no longer large enough to support a competitive strategy is at
the heart of cost globalization drivers.
Market drivers : define how customer distribution patterns evolve and focus on the steady
convergence of customer needs. The marketing of standardized products and services as
consumers in different regions demand similar products is a driver of globalization.
Technology : Changes in technology have made it easier to communicate around the world and
have therefore driven globalization. However, there are major differences in technology between
countries around the world.
Technology has many effects. It has helped develop more advanced economies (including
today's global economy) and has allowed the rise of a leisure class. Many technological
processes produce unwanted by-products, known as pollution, and deplete natural resources, to
the detriment of Earth's environment. Various implementations of technology influence the
values of a society and new technology often raises new ethical questions. Examples include the
rise of the notion of efficiency in terms of human productivity, a term originally applied only to
machines, and the challenge of traditional norms.
Technology is the collection of techniques, skills, methods and processes used in the production
of goods or services or in the accomplishment of objectives, such as scientific investigation.
Technology can be the knowledge of techniques, processes, etc. or it can be embedded in
machines, computers, devices and factories, which can be operated by individuals without
detailed knowledge of the workings of such things.
The basic needs potential for the markets :
The global economy presents its own set of opportunities and threats for businesses in a range of
industries. The industry report focuses on industry performance in key regions around the world
and identifies the leading companies globally. The companyhas toy adopt communication on
completing the Single Market for parcel delivery to boost e-commerce and to ensure that e-

retailers and consumers have access to affordable and high-quality parcel delivery
services.Delivery services offered by e-retailers are therefore one of the fundamental factors
influencing a consumer's decision to shop with them
The communication is a follow-up to last year's Green Paper on 'an integrated parcel delivery
market for the growth of e-commerce in the EU'. With this initiative the Commission aims to
support the development of e-commerce through a set of actions improving parcel delivery. The
Commission places particular emphasis on the cross-border delivery of parcels, on the needs of
SMEs, as well as on less-advanced and accessible regions, arguing that e-commerce must be
accessible to all citizens and to all businesses, regardless of their size and location.
Following points to be followed for the potential market in the world
Applicable financial and economic forces:
Finance area is affected by the currency exchange rate, government flexibility in allowing the
firms to repatriate profits or funds outside the country. The devaluation and inflation will also
impact the firm's ability to operate at an efficient capacity and still be stable”.Furthermore, the
taxes that a company has to pay might be advantageous or not. It might be higher or lower in the
host countries. Then, ““The risk that a government will discriminatorily change the laws,
regulations, or contracts governing an investment—or will fail to enforce them—in a way that
reduces an investor’s financial returns is what we call “policy risk.Finance is one of the most
important functions of any business. Not only is finance a good indicator of the health of the
company overall, but it also holds an important role in managing business growth. Whether
growth is attributable to a larger market capitalization, and increase employee, a new location, a
new product or service offering, or a new demographic, finance is the enabler of such
opportunities.
Economic forces : the economic risks explained by Professor Okolo : “This comes from the
inability of a country to meet its financial obligations. The changing of foreign-investment or/and
domestic fiscal or monetary policies. The effect of exchange-rate and interest rate make it
difficult to conduct international business”. Moreover, it can be a risk for a company to operate
in a country and they experience an unexpected economic crisis after establishing the subsidiary.
Any change in the economy that impacts the supply or demand for a company's products and
services fits into this category. Sometimes they have a positive impact,. Other times, economic
forces can hurt a business, like when consumer confidence drops, and potential customers spend
less and save more.
Applicable political and legal forces:
How a government governs a country can affect the operations of a firm. The government might
be corrupted, hostile, totalitarian, etc. that has a negative image around the globe. A firm’s

reputation can change if it operates in a country controlled by that type of government. Also, an
unstable political situation can be a risk for multinational firms. Elections, any other political
event that is unexpected can change a country situation and put a firm in an awkward position.
Political factors are governmental activities and political conditions that may affect your
business. Examples include laws, regulations, tariffs and other trade barriers, war, and social
unrest.
Political forces include regulatory requirements, legal concerns, and any impact from the current
political climate of the country or region where the business operates
Political forces do not only exist in the home country of a business. Many US companies operate
in China, a country where the government has much more influence over business behaviors.
The applicable socio- cultural forces:
Social factors are those that reflect the preferences, fads, and trends in society. Media companies
are very sensitive to social trends as their business model is to produce content that reflects
society's interests. Reality TV, unheard of 20 years ago, is now some of the most watched
productions in prime time. Social trends often follow technological trends. For example,
technological forces made email possible, but once available, society quickly demonstrated the
preference to email over sending a letter or making a phone call.
Social factors are basically sociological factors related to general society and social relations that
affect your business. Social factors include social movements, such as environmental
movements, as well as changes in fashion and consumer preferences. For example, clothing
fashions change with the season, and there is a current trend towards green construction and
organic foods.
The applicable competitive forces;
Competition is the opposite of cooperation.It arises whenever at least two parties strive for a goal
which cannot be shared or which is desired individually but not in sharing and cooperation.
Competition occurs naturally between living organisms which co-exist in the same environment.
For example, animals compete over water supplies, food, mates, and other biological resources.
Humans usually compete for food and mates, though when these needs are met deep rivalries
often arise over the pursuit of wealth, prestige, and fame. Competition is also a major tenet of
market economies and business is often associated with competition as most companies are in
competition with at least one other firm over the same group of customers, and also competition
inside a company is usually stimulated for meeting and reaching higher quality of services or
products that the company produce or develop.
One of the most critical external business factors is competition. Whether you operate in a
concentrated industry with a few major competitors or a large industry with many competitors,
you need to know the competition. Many companies do competitive analysis to compare their

offerings and prices to those of competitors. When developing business philosophies and
products, it is helpful to use your strength in quality production, customer service or operational
efficiency to build competitive advantages that benefit your customers.