Maturing Businesses Strive to “Remake” Themselves--

question 66

Essay

Maturing Businesses Strive to “Remake” Themselves--
UPS, Boise Cascade, and Microsoft

UPS, Boise Cascade, and Microsoft are examples of firms that are seeking to redefine their business models due to a maturing of their core businesses. With its U.S. delivery business maturing, UPS has been feverishly trying to transform itself into a logistics expert. By the end of 2003, logistics services supplied to its customers accounted for $2.1 billion in revenue, about 6% of the firm’s total sales. UPS is trying to leverage decades of experience managing its own global delivery network to manage its customer’s distribution centers and warehouses. After having acquired the OfficeMax superstore chain in 2003, Boise Cascade announced the sale of its core paper and timber products operations in late 2004 to reduce its dependence on this highly cyclical business. Reflecting its new emphasis on distribution, the company changed its name to OfficeMax, Inc. Microsoft, after meteoric growth in its share price throughout the 1980s and 1990s, experienced little appreciation during the six-year period ending in 2006, despite a sizeable special dividend and periodic share buybacks during this period. Microsoft is seeking a vision of itself that motivates employees and excites shareholders. Steve Ballmer, Microsoft’s CEO, sees innovation as the key. However, in spite of spending more than $4 billion annually on research and development, Microsoft seems to be more a product follower than a leader.
-In your opinion, what are the primary challenges for each of these firms with respect to their employees, customers,
suppliers, and shareholders? Be specific.

Understand the concept of task overload and its impact on employee performance.

Acknowledge the continuous and interrelated nature of the management functions: planning, organizing, leading, and controlling.

Comprehend the concept of role conflict and role ambiguity and their implications for organizational effectiveness.

Understand the impacts of stress in the workplace and distinguish between eustress and distress.

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Definitions:

Inventories

Refers to the goods and materials that a business holds for the ultimate goal of resale, production, or utilization in manufacturing.

Domestic Net Worth

Domestic Net Worth calculates the total asset value of a nation's residents, companies, and government less all liabilities and debts within the country.

Trillion

A numerical value represented by 1 followed by 12 zeros, commonly used in discussions of national economies and government budgets.

Fixed-Income Security

A type of investment that pays regular income in the form of interest or dividends, such as bonds or preferred stock.