Sunday, October 6, 2019

Why did UPS make a deal with Clean Energy Research Paper

Why did UPS make a deal with Clean Energy - Research Paper Example The best supplier the company found was Clean Energy Fuel Corporation. UPS and Clean Energy Fuels sign a seven year contract to supply UPS with all the natural gas it needs for its fleet. One of the advantages of the deal was that Clean Energy Fuels was going to design, build, and operate a natural gas fueling station to be used by the UPS fleet (Oc180news, 2011). UPS was very motivated by the deal due to the fact that the deal enabled the company to comply with its strategic goal of reducing its carbon footprint and dependence on petroleum. Another advantage of this eco-friendly fleet is that it reduces maintenance and operating costs. The strategy can be used by the company to improve its public relations. One of the expectations of the shareholders and other stakeholders of the company is for UPS to become an environmentally friendly company. The emissions released by vehicles that utilized gasoline is one of the major causes for air pollution and global warming. This project can be utilized as a test run to determine if the company should continue to switch its fleet of trucks to more eco-friendly vehicles such as trucks powered by natural gas. Clean Energy Fuels benefited a lot by the deal evidenced by the fact that the price of its common rose by 10.1% after the deal was announced (Casacchia, 2011).

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