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Essay text:
However, reinventing continuously a 42.6 billion dollar corporation is obviously not an easy task and presents its share of problems…
PROBLEM IDENTIFICATION
UPS has been experiencing increasing fuel costs lately, as a result of energy prices that are escalating around the world. As a logistics provider, fuel costs account for a significant part of operating costs at UPS. Thus, an increase in fuel costs jeopardizes directly the organization’s profitability (see Exhibit 1).
MEASURE
From 2006 to 2007 UPS experienced an increase in fuel costs of 12.0% on top of the 20.2% increase from 2005 to 2006...
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