The companies have to work under extremely complex conditions in all areas such as aviation, transport, labour recruitment, employment contracts and even laws and regulations formed by the government.
Strict laws have been framed by the U.S government after the incident of September 11, 2001. If any company fails to comply these rules and regulations heavy penalties are imposed on them by the governments both on national and international level (Bies, 2007).
Strikes, lockouts and slow down of services by the workers is another environmental factor which affects the workings of the UPS and its competitors.
Changing preferences and demands of customers also affects the workings of the company. If any of the company fails to deliver services and products as per consumer demands they might loss a customer base for the long run or on permanent basis.
Disruptive services of logistic partners and suppliers and even the changes in the prices of oil and gas affect the workings of UPS and its competitors (Durlak, 2008).
Cyclical and seasonal fluctuations affect the demands of services of the company. The services of UPS and its competitors are greatly affected by natural calamities such as hurricanes, heavy snow flow and floods etc. which blocks the transportation systems also affects the workings of these companies.
The workings of UPS and competitors are also affected by the restrictions imposed on flights by airport authorities due to any reasons. Generally this is not the case but in certain cases like that in case of fire and other emergency condition flights are cancelled or their routes are diverted which affects the companies.