1. Final Presentation Presented By: Nicholas Beers Mark Gerban Jeff Wynkoop Yee Tze Kang Ray Lau Dave Schmel December 4, 2002

2. 5 Year Strategic Plan

4. Added Services E-mail Confirmation –1 year development –3 years until full implementation 24 hour delivery –4 years to develop –6 years until full implementation

5. Hybrid Trucks One year to develop 6 years to complete 6000 per vehicle Chief Operating Officer in charge of implementation

6. Sports marketing Acquiring naming rights of sports arenasAcquiring naming rights of sports arenas –New York –Sydney –Tokyo –London –Paris 3 mil/ per venue/year 15 mil year3 mil/ per venue/year 15 mil year Reports to Chief Marketing OfficerReports to Chief Marketing Officer

7. United Way Donations of 5 mil/yr –Corporate Sponsorships –Employee matching gifts Reports to Chief Marketing Officer

8. Gantt Chart

9. UPS E-mail Confirmation Database Hardware and Software: $569 E-mail Software and Hardware: $149 15% of the UPS workforce will use this software Cost of Implementation for in the next five years: $39.8 Million

10. 24-Hour Delivery and Salary Increase All UPS truck drivers and pilots will be given a 5% salary increase Total cost of implementation for salary increase program in the next five years: $640.77 Million UPS truck drivers and pilots chosen for the 24-hour delivery service will be given a 15% salary increase Total cost of the 24-hour delivery program within the next five years: $239.97 Million

11. Outsourcing Logistics UPS will aim to outsource their logistics services to at least 30 companies UPS will earn high profits from their logistic services The external logistics expenses will only be a small fraction of what will be earned

12. Cost of above device = $200000. (ABM Company) Cost of implementation = $200000 * 30 = US$6million Functions include scanning for drugs, weapons etc. Drug Scanning Devices Product released in October 2002

13. Hybrid Trucks Term "hybrid" represents the merging of gasoline and electric power. Extra cost of an electric motor and battery in a hybrid vehicle = $6000 (Honda Company) Cost of implementation = $12million (approximate)

14. We Drive to Succeed Commercials Internet "pop-ups“ Mailer

15. New Advertising Initiatives Sports Stadiums Benchmark Tastykake driver promotion

16. THE END