Question

Revenues for United Parcel Service (UPS) come from the following business segments: 60 percent from U.S. package delivery operations, 22 percent from international package delivery, and 18 percent from non-packaging operations. Which best describes the corporate level strategy of UPS?

a) single businessb) dominant businessc) related constrainedd) related linked

Answer 1

b) dominant business

Step-by-step explanation:

The dominant business strategy occurs when a company generates from 70% to 95% of its revenue from a single operating activity.

In this case, UPS generates 82% of its revenue from package delivery operations, either in the domestic market, or abroad.

This means that the business strategy of UPS is focus on the package delivery operation, and non-packaging activities are secondary, albeit still important, representing 22% of the revenue.