What SEPTEmber issues are raised by UPS decision to commit to 700 liquefied natural gas (LNG) vehicles and create a CSO position in their corporate structure?

  

econd Integrative Case Evaluation (“ICE”).Your assignment is to carefully review the Integrative Case at the end of Part 2 in your text, which appears on page 215 and is reproduced below for your convenience.It is important that your answers to these questions be properly researched and that you use the APA, MLA or Chicago style citation method. If you are unsure how to do this, please use the Purdue Online Writing Lab resource (https://owl.english.purdue.edu/owl/section/2/). Please use the NPC virtual library (particularly the documents available through LIRN), which can be accessed at http://nationalparalegal.edu/Students/VirtualLibrary.aspx, or any other source, making sure though that all of your sources should be reliable academic sources (peer-reviewed journal articles are good examples of reliable academic sources).Written Format:Your ICE answers must include the following elements:AnIntroductiondiscussing1.Your answers to the case questions.Be sure to focus on the how in each question.2.What SEPTEmber issues are raised by UPS decision to commit to 700 liquefied natural gas (LNG) vehicles and create a CSO position in their corporate structure.AnAnalysisof your researchExplaining in detail, what your research reveals concerning the nature of the SEPTEmber issues raised in your introduction.Discussing your assessment of how theinternal environmentat UPS does or does not support UPS efforts to do whats right for the environment and society, and also be mindful of the bottom line (Part 2 case, page 215).Your discussion should evidence critical analysis of your research results.AnEvaluationaddressingWhy or why not UPS strategic choices are feasible given the short-term profit imperative that US companies face.You must demonstrate how your research supports your evaluation.What questions you would want answered, but which were not addressed in your research, given the strategic decisions that UPS has made (LNG vehicles and a change in corporate structure by adding the CSO position). A list of References must be attached, as a separate page to each ICE. Please review the Sample ICE to get a visual picture of how your assignment should be structured. This is available on the “slides and documents” page of the NPC student site.Minimum length: 750 words.Integrative Case for Part Two: The Environment of Management Brown Goes Green: UPS Embraces Natural Gas Trucking FleetCan 3 million commercial trucks consuming nearly 4 billion gallons of diesel fuel annually in the United States really go green? To find out, the White House in 2008 launched a National Clean Fleets Partnership aimed at helping businesses embrace vehicles that run on natural gas, electricity, hydrogen, and other alter- native fuels. Since it was first announced, the public- private partnership has sparked close collaboration between the U.S. Department of Energy and top fleet operators like United Parcel Service (UPS; nicknamed Brown).UPSs participation in a national green highways initiative may seem counterintuitive to manybut it shouldnt. Browns quest to attain cost savings through fuel-efficient motoring stretches back to the 1930s, when the parcel delivery service used 20-mph electric cars to deliver packages in New York City. In the 1980s, UPS introduced vehicles that ran on compressed natural gas. In 2006, the company partnered with the U.S. Environmental Protection Agency (EPA) to design and build the worlds first hydraulic delivery vehiclea truck propelled by hydraulic pumps that store and release energy captured during braking. Today, the Georgia-based delivery giant continues to test alternative-fuel technologies, seeking to transform more than 96,000 delivery vehicles into fuel-efficient green machines.Although numerous alternative-fuel technologies are competing for dominance at UPS, liquefied natural gas (LNG) has gained significant momentum in recent years, especially for Browns largest trucks. Like most eighteen-wheelers, UPSs tractor-trailers run on diesel fuel. This is beginning to change, however. In the years since the 2004 discovery of massive shale gas fields in the Marcellus Shale region of the United States, natural gas supplies have skyrocketed, causing methane prices to drop to about half the price of diesel. This development has had a significant influence on business. In particular, transportation managers faced with an affordable supply of domestic clean energy have begun evaluating the efficiency and environmental impact of their fleets.In 2011, UPS embraced the new natural gas boom by ordering 48 LNG-engine tractor-trailersan in- vestment that boosted the companys long-haul natural gas fleet total to 59. By the end of 2013, that number had increased to 112. And in 2014, UPS committed to purchasing 700 LNG vehicles as part of a company- wide goal to drive 1 billion miles using alternative fuel vehicles by 2017.Brown was not alone; similar moves by Ryder Systems, Waste Management Inc., and AT&T led Wall Street Journal energy reporter Rebecca Smith to wonder if the entire trucking industry was about to ditch diesel. As Smith noted, Never before has the price gap between natural gas and diesel been so large, suddenly making natural-gas-powered trucks an alluring option for company fleets.According to Mike Britt, the director of vehicle engineering at UPS, Brown has good reason to switch from diesel to LNG. The added advantage of LNG, says Britt,is it does not compromise the tractors abilities, fuel economy, or drivability, and it significantly reduces greenhouse gases. The benefits of LNG are numerous indeed. While most alternative-fuel vehicles can drive only limited distances, LNG trucks have a 600-mile single-tank range, plus a reliable network of fueling stations. In addition, LNG-fueled trucks produce 25 percent less carbon emissions and consume 95 percent less diesel than conventional trucks. Most important, natural gas engines deliver full horsepower. Highlighting a stark contrast between LNG and electric-powered vehicles, Britt quips that a 450-horse- power eighteen-wheeler uses so much power that to haul two trailers through mountainous terrain, the first trailer would have to be all batteries. The performance gap leads Britt to conclude: LNG is the only suitable alternative to diesel for the really heavy long- haul tractor trailers you see on the highway.At UPS, terms like fleet efficiency and environmental impact arent mere buzzwordsthey are increasingly part of Browns corporate culture. In 2011, UPS created its first executive-level management position for green concerns: the chief sustainability officer (CSO). Today, UPSs CSO is one of the most visible figureheads of the company. Scott Wicker, a longtime company veteran appointed to the post, has been instrumental in defining what a CSO does. The key thing I do in my job is try to keep UPS focused on the environmental impacts that we have as an organizationand were constantly working to reduce those environmental impacts, Wicker states. But its not just the environment: sustainability is also about what we do as a company in terms of our people, our customers, and the communities in which we live and work. Under Wickers leadership, sustainability has garnered significant attention at UPS, appearing prominently in the companys policy book, upside blog, and corporate Web site. In addition, Wicker and his management teams develop and roll out sustainability initiatives to UPSs 400,000 employees.According to UPSs green chief, effective sustain- ability reinforces a companys economic responsibil- ity. Above all else, sustainability is about being able to maintain a balance between our impacts on the en- vironment and society, but at the same time keep the company economically prosperous, Wicker says. Kurt Kuehn, UPSs chief financial officer (CFO), under- scores this point, citing two key objectives of sustain- ability: Doing whats right for the environment and society, and also being mindful of the bottom line so were a healthy company financially.Minding the bottom line is especially relevant to Browns pursuit of alternative-fuel technologies. At $195,000 each, LNG tractor-trailers cost twice as much as conventional semi-trailersa high premium for going green. However, Mike Britt says that UPS can offset that expense through a combination of gov- ernment subsidies and natural-gasrelated fuel sav- ings. For Britt, added investment in LNG reaps added reward for companies and communities: Liquefied natural gas is a cheaper, cleaner-burning fuel that is better for the environment and more sustainable than conventional diesel. Its also a fuel thats in abundant supply inside the United Statesit doesnt have to be imported.Questions1. Explain how UPSs alternative-fuels fleet is a response to trends taking place in the companys general environment.2. Describe how UPS is using boundary-spanning roles to adapt to energy-related uncertainty in its environment.3. How does UPSs clean fleets initiative illustrate the concepts of sustainability and corporate social responsibility?

Introduction:
The call to reduce greenhouse gas emissions as a solution to climate change prompted UPS to embark on a mission to embrace green technologies. One of the significant steps UPS took was its decision to introduce a natural gas trucking fleet. This Integrative Case Evaluation aims to analyze the September issues raised by UPS’s commitment to a sustainable transport system by revamping its corporate structure and implementing the use of 700 liquefied natural gas vehicles.

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Description:
UPS is a renowned parcel delivery service with a strong commitment to environmental protection. In recent years, the company has shifted its focus to promoting sustainable technologies that reduce greenhouse gas emissions. The National Clean Fleets Partnership launched by the White House is a significant initiative that has enabled UPS to explore alternative fuel options.

The Integrative Case for Part Two explores how UPS has embraced natural gas as an alternative to diesel fuel as a way to create cost efficiencies while protecting the environment. The case delves into the history of UPS and its pursuit of cost savings through fuel-efficient vehicles, which dates back to the 1930s when it used electric cars in New York City. UPS introduced compressed natural gas vehicles in the 1980s, but it was not until 2006 that the company partnered with the U.S. Department of Energy to further promote sustainable technologies.

The case also explores the September issues raised by UPS’s decision to introduce 700 liquefied natural gas vehicles and a Chief Sustainability Officer (CSO) position in its corporate structure. It is essential to analyze how the internal environment at UPS supports or does not support the company’s efforts to promote sustainable technologies while balancing financial objectives.

The evaluation aims to determine whether UPS’s strategic choices, given the short-term profit imperative that US companies face, are feasible. Therefore, it is crucial to examine how UPS’s research findings support their strategic choices and analyze the gaps that pose risk to the company’s sustainability initiatives. Finally, additional questions will be raised regarding the strategic decisions made by the company, and a list of reliable academic sources will be included as a reference to support the research conducted.

Solution 1: Implementing Sustainable Transportation Strategies

UPS commitment to deploy 700 new liquefied natural gas (LNG) delivery vehicles to reduce their carbon emission and other environmental impacts is a good step towards sustainable transportation. However, a significant challenge that the company could face is the underlying complexities of enforcing this decision. The cost of acquiring, operating, and maintaining the LNG vehicles would undoubtedly require significant investments from the company and designing a sustainable transportation network strategy. Therefore, several strategies should be implemented to support sustainability, including:

1. Integration of environmentally friendly technologies: UPS should integrate environmentally friendly technologies with the goals of reducing fuel consumption and emissions. For instance, the tracking and data analysis of the delivery trucks would help optimize the routes, loading, and unloading, thereby reducing fuel consumption and emissions.

2. Collaboration with the Government: UPS should engage regulators and policy makers in promoting a sustainable transportation agenda. The transportation sector in the US is largely regulated, and as such, UPS could leverage the regulatory environment to promote alternative fuel vehicles.

3. Encouragement of behavioral change: UPS should also encourage the adoption of sustainable behaviors among its drivers and employees. This could be done through regular training sessions, provision of incentives for employees who demonstrate sustainable behaviors, and the use of a reward system.

Solution 2: The Human Capital Sustainability Strategy

UPS decision to create the Chief Sustainability Officer (CSO) position in their corporate structure is commendable. The CSO position is tasked with promoting social and environmental responsibility within the company’s operations while being mindful of the bottom line. However, the SEPTEmber issues raised by the decision are numerous, including the need to balance the company’s commitment to sustainability with the practical needs of ensuring that profits are maximized. Below are some strategies to address the SEPTEmber issues:

1. Emphasis on human capital development: The UPS CSOs should endeavor to develop a human capital development strategy that promotes the development of a culture that supports sustainability. It also requires the development of a training and development program aimed at creating awareness of the importance of sustainability.

2. Integration of social responsibility in performance management: The inclusion of environmental and social responsibility objectives in performance management could help promote and align the company’s workers toward sustainable outcomes.

3. Global collaboration: UPS can collaborate with other organizations committed to sustainability and focus on developing innovative and sustainable solutions aiming to minimize environmental impacts in international trade. This creates global synergy and shapes client expectations that promote sustainability.

In conclusion, the implementation of sustainable transportation and human capital strategies is necessary for UPS to ensure that it meets its commitment to sustainability while maintaining its bottom line. Adequate research, evaluation, and collaboration with other organizations are essential to the successful implementation of these strategies.

Suggested Resources/Books:

1. “The Greening of Business: R&D Strategies and Practices for a Sustainable Future” by Nancy E. Landrum
2. “Greening the Supply Chain” by Joseph Sarkis
3. “Sustainable Value: How the World’s Leading Companies Are Doing Well by Doing Good” by Chris Laszlo and Nadya Zhexembayeva
4. “Corporate Social Responsibility: Strategy, Communication, Governance” by Andreas Rasche and Mette Morsing
5. “Creating Climate Wealth: Unlocking the Impact Economy” by Jigar Shah

Similar asked questions:

1. What are the benefits and drawbacks of companies committing to using alternative fuels and greener technologies?
2. How can companies balance their commitment to environmental sustainability with the need to maintain profitability?
3. What role do government policies and regulations play in encouraging or discouraging companies from adopting greener practices?
4. How can companies effectively communicate their sustainability efforts to customers and other stakeholders?
5. How does a company’s commitment to sustainability impact employee morale and motivation?

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