TNT international express delivery has been long coveted by American companies such as UPS and Fedex. UPS has been trying to expand into the european market. Big investors in TNT have stated that they would not mind for the company to try to sell itself. TNT had split from another company and its share has almost dropped 60%. Thus, causing investors to push TNT to a possible sale. However, both sides have yet to come to an agreement but acknowledge that talks are occurring.
Companies that transport goods can face some ethical problems. One ethical issue that these companies face is insuring their customer that their item wont be damaged. Companies like UPS and Fedex have to make sure that they dont damage the product while delivering them. The customers would be incredibly angry if there was damage to the package and UPS or Fedex won't take responsibility. UPS also has the ability on how fast to deliver the package. They can take their time and deliver the package which would also cause the customer waiting for the package, to be very angry. UPS and Fedex often do deliver the package in a timely manner and usually will own up to any damage done to product. They are well respected companies within their industry.
http://online.wsj.com/article/SB10001424052970204792404577229221106343502.html?mod=WSJ_Transportation_leftHeadlines
How is UPS trying to expand writing Europe? What countries are they targeting?
ReplyDeleteThis is interesting to me because we are focusing on a case related to logistics in my strategy class. UPS and FedEx are referred to "900 pound gorillas" in the article. However, look more closely at the ethical issues. Employees reading mail or sharing information with their family about the mail are included in ethical issues. Arriving late is simply a company flaw, or breaking a promise. Is it unethical though?
ReplyDeleteUPS and FedEx are probably saving money with their policy of taking responsibility over goods that are broken under their employee's supervision. If a package was damaged, I would be more inclined to use their services again due to trusting them more.
ReplyDeleteDoesn't this idea of UPS, the world's largest logistics provider, expanding into Europe pose questions of a monopolistic market?
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