...Product A number of products are offered including • FedEx Express is the second largest civil fleet around the world providing services across U.S. mainland, Puerto Rico, the Dominican Republic, and other Caribbean islands. • FedEx ground provides services around America and Canada. • Home delivery and smart posts are also offered. • FedEx trade networks provide custom and insurance. • A toll free help line is provided to the customers at FedEx TechConnect. • Other products include FedEx Supply Chain Services, FedEx Corporate Services, FedEx Office and Print Centers, and FedEx Ship Centers. •Customer care centers are always alert for criticism. Price • FedEx offers its discount program on FedEx ground specifically. • Pick up services are provided with $6 as its additional cost. • FedEx Ground will provide pickup service to business locations, upon request, for an additional charge of $6 per week. Placement Mainly located in United States and is catering the services with in America and Canada but also approaches to the destinations worldwide through its air fleet. Promotion • FedEx campaigns runs in the print media throughout the year. • Spends heavy amounts on Commercial ads, that’s why high quality ads are formulated and remembered for years like John Moschitta ad. • The company ahs been a chief and sometime sole sponsor of motor sports, football and a number of sports being played at a junior level. • One major reason of its success is political lobbying...
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...CASE STUDY FOR FINANCIAL MANAGEMENT CASE 4: The Battle for Value, 2004: FedEx Corp. vs. United Parcel Service, Inc. VALUE CREATION AND ECONOMIC PROFIT I. OUTLOOK OF CASE 4 Case 4 mentions about the competition between two leading companies in package- delivery market. FedEx which is the largest foreign presence in China, with 11 weekly flights, serving 220 Chinese cities, so the company’s volumes in China had grown by more than 50% between 2003 and 2004. UPS which is the world’s largest package-delivery company and dominant parcel carrier in US, serving 200 cities in 2003. FedEx had virtually invented customer logistical management, and was widely perceived as innovative. Historically, UPS had reputation for being big, bureaucratic and an industry follower. Two companies have their own market, an individual characteristics, and inconclusive. Thus, not only based on the development and operation of the two companies, the analysis also relied on the special purpose financial ratios ( especially Economic Value Added (EVA), an effective measure and rapid for firm within an industry) to find which company has more competitive advantage. II. INTRODUCTION 1. FedEx corporation: [pic] FedEx, formally known as Federal Express, started delivering packages and freight on April 17, 1973. The company was...
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...Christopher Wood 10/25/2013 MGMT 4020 Prof. Meredith FedEx FedEx is a company who provides transportation, e-commerce and business services. The company offers time certain delivery services and international trade services such as customs brokerage, and global ocean and air freight forwarding. It also provides small-package ground delivery services across North America. In addition, it offers residential delivery services in the US. FedEx provides less-than-truckload freight services. The company also provides in-store services, online services and business solutions. It operates in North America, Asia, and Europe. FedEx is headquartered in Memphis, Tennessee, the US. One way FedEx has adapted to the technological changes is shippers can now connect directly to FedEx’s transportation services via Microsoft Office Outlook, one of the world’s largest email applications. To use the FedEx quick ship, you go to fedex.com/quickship and download the information. This option allows users to use the web services to provide fast and easy access to FedEx shipping functions. These functions include generating labels, tracking packages, checking rates, and scheduling pickups, while using their Outlook 2003 or 2007 email application. Federal Express has five strategies that govern business tactics. These tactics are to improve service levels, lower unit costs, establish international leadership and sustain profitability, get closer to the customer, and maintain the people-service-profit...
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...David Faskas, Julius Cano, Dan Dragomir, and Tisha Ray FINC 4369 Dr. Jonathan Du February 7, 2011 Analysis of FedEx and United Parcel Service The domestic United States market for package-delivery is a $45-billion dollar market. The air express market is a $25-billion dollar segment of this market. The package delivery industry is very large and highly competitive. Two of the top competitors, FedEx Corporation and United Parcel Service have been racing to gain a larger portion of this multi-billion dollar market for years. Recently with a landmark air-transportation agreement being reached in China, the market for international delivery has boomed. Analysts expect China to become the world’s largest economy within the next few decades. The air-cargo market in China has been growing at a rate of 30 percent per year and is expected to increase for at least 5 years at this rate. With such an important growing market opening to international companies, the opportunity is great. Many risks may also be present with this new venture, but the reward may be great for the company that can take hold of this market share first. Through this analysis I will analyze the goals of each firm, how each firm has achieved or strived to achieve these goals, and how each company has dealt with threats from competitors. FedEx has stated in their mission statement that they have the goal of “[producing] superior returns for shareowners by providing high value-added supply chain, transportation...
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...FedEx: The World on Time Shipping, Logistics, and Supply Chain Management Indiana Wesleyan University Facilitator FedEx: The World On Time History of FedEx Today FedEx Corporation is the premier provider of shipping and information services worldwide. Headquartered in Memphis, Tennessee, the company functions under the motto "operate independently, compete collectively and manage collaboratively."(FedEx.com, 2011) By operating independently, each company can focus exclusively on delivering the best service for its specific market. In 1965, Yale University undergraduate Frederick W. Smith wrote a term paper about the passenger route systems used by most airfreight shippers, which he viewed as economically inadequate. (FedEx.com, 2011) Smith wrote of the need for shippers to have a system designed specifically for airfreight that could accommodate time-sensitive shipments such as medicines, computer parts and electronics. In August of 1971 following a stint in the military, Smith bought controlling interest in Arkansas Aviation Sales, located in Little Rock, Arkansas. Smith identified the tremendous difficulty in getting packages and other airfreight delivered within one to two days. This dilemma motivated him to do the necessary research for resolving the inefficient distribution system. Thus, the idea for Federal Express was born: a company that revolutionized global business practices and now defines speed and reliability. Federal Express was so-named due to the...
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...TABLE OF CONTENT 1.0 Introduction 2 2.0 Measurement of Success 2 3.0 Reasons Behind FedEx Corporation’s Success 4 3.1 Excellent and Leading Service Quality 4 3.2 Effective Employee Management 4 3.3 Intended Acquisition Strategy 5 3.4 Sustained Innovation 5 3.5 Global Reach and Further Expansion 5 3.6 Pursuance of International Market Dominance 5 4.0 Justification of FedEx Corp. Success 6 4.1 Value Chain Framework 6 4.1.1 Support Activities 6 4.1.2 Primary Activities 7 4.2 VRIN Framework 7 4.2.1 Value 7 4.2.2 Rarity 8 4.2.3 Inimitability 8 4.2.4 Non – Substitutability 9 4.3 International Strategy 9 5.0 Contribution of Leadership 11 5.1 Traits Theory of Leadership 11 5.2 4E’s of Leadership 11 5.1.1 Envision 11 5.1.2 Enable 12 5.1.3 Empower 12 5.1.4 Energise 12 6.0 Challenge for Future Success 13 6.1 Intense Competition 13 Reference List 14 LIST OF FIGURES Figure 2.1: Annual Financials of FedEx Corp…….……………………………………………………………………2 Figure 2.2: FedEx Market Share…………………………………………………………………………………………….3 Figure 2.3: Air Freight & Logistics Market Growth…………………………………………………………………3 Figure 2.4: Customer Satisfaction Benchmark……………………………………………………………………….4 Figure 4.1: Porter's Value Chain Framework………………………………………………………………………….6 Figure 4.1.2: FedEx Primary Activities……………………………………………………………………………………7 1.0 Introduction According to Amsler et al (2010), the market of shipping and transport logistics has become a leading...
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...Study Questions Case 4: Battle for Value, 2004: FedEx Corp. versus United Parcel Service, Inc. 1. If we assume that financial markets are efficient, what is your interpretation of the 14% increase in FedEx market value of equity in 2004, as the agreement to liberalize air cargo transport between the U.S. and China developed? Why did the UPS stock price lag? - The US-China agreement allowed an additional 195 weekly flights for each country- 111 by all-cargo carriers and 84 by passenger airlines- resulting in a total of 249 weekly flights by the end of a six-year phase in period. FedEx had set a goal of producing “superior financial returns” while UPS targeted “long term competitive return”. 2. In the history of the two companies leading up to that landmark agreement, how did they perform? Use the suggested template to summarize a comparison of the two firms on the basis of the financial criteria presented in the case for the period 1992 - 2003: Financial ratios (Exhibits 2 and 3); Earnings per share and total returns to investors (Exhibit 8); and Economic Profit (Exhibits 9 and 10). -Both FedEx and UPS performed well in Exhibit 2 and 3 but FedEx had a higher operating Income. Exhibit 8 shows that UPS had a higher earnings per share than FedEx. UPS weighted average cost of capital was higher for most of the years. 3. What are the strengths and weaknesses of these measures of performance? -FedEx had a higher operating costs but their earnings per share was...
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...Parcel Service’s IPO United Parcel Service was founded in 1907 and now has over 340,000 employees, 149,000 delivery vehicles, 500 planes, and $25 billion in annual revenues, UPS is the largest parcel delivery company in the world. The company delivers nearly 13 million packages each business day (9,000 packages every minute) to over 200 countries worldwide. Question 1 UPS is performing very well in comparison to its closest competitors. UPS has 51% of the domestic air and ground package delivery market share by revenue, followed by FedEx (26%) and the U.S. Postal Service (17%). Between 1988 and 1999, UPS spent more than $1 billion per year upgrading its infrastructure to track packages precisely, deliver electronic proof of delivery, and manage shipments on-line. The new systems included electronic scanners, bar codes on packages, and computerized clipboards for all UPS drivers. By 1999, UPS could handle six times as many on-line tracking requests as FedEx. UPS made no distinction between the operating facilities for air and ground operations, like FedEx. All facilities were shared, including the single fleet of trucks that handled the pickup and delivery of all UPS shipments. The integration of its air and ground operations gave UPS the ability to optimize utilization of its assets while still meeting customer service requirements. Since the operations were integrated, a package marked for “Next Day Air” delivery could be transported by truck if that method...
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...Business Strategy United Parcel Service (UPS) Overview United Parcel Service, Inc. was founded in 1907 as a private messenger and delivery service in Seattle, Washington. Today, UPS is the world’s largest package delivery company, a leader in the U.S. less-than-truckload industry and the premier provider of global supply chain management solutions. It deliver packages each business day for 1.6 million shipping customers to 8.2 million receivers ("consignees") in over 220 countries and territories. In 2014, it delivered an average of 18.0 million pieces per day worldwide, or a total of 4.6 billion packages. Total revenue in 2014 was $58.2 billion. It are a global leader in logistics, and it create value for its customers through solutions that lower costs, improve service and provide highly customizable supply chain control and visibility. Customers are attracted to its broad set of services that are delivered as promised through its integrated ground, air and ocean global network. Its services and integrated network allow shippers to simplify their supply chains by using fewer carriers, and to adapt their transportation requirements and expenditures as their businesses evolve. Across its service portfolio, it also provide control and visibility of customers’ inventories and supply chains via its UPS technology platform. The information flow from UPS technology drives improvements for its customers, as well as for UPS, in reliability, flexibility...
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...Fedex: a perspective study | | Contents Introduction 3 1. The outside in perspective 4 1.1 Markets over Resources 4 1.2 Opportunity driven. 5 1.3 Market demand and industry structure 6 1.4 Adaptation to environment 6 1.5 Attaining advantageous position 6 1.6 Acquiring necessary resources 6 1.7 Inside-out perspective 7 2. Industry dynamics perspective 8 2.1 Compliance over choice 8 2.2 Uncontrollable evolutionary process 8 2.3 Fitness to industry demands 9 2.4 Low and slow ability to change the industry 9 2.5 Convergent to dominant design 10 2.6 Profit is largely industry dependent 10 2.7 Industry Leadership perspective 10 3. Integrated perspective and portfolio perspective 11 3.1 Synergy over responsiveness 11 3.2 Tightly related composition 11 3.3 Joint strategy development 12 3.4 Multi-business synergy & integrating resources, activities and positions 12 3.5 Acquisitions are difficult to integrate 12 3.6 Portfolio perspective 13 4. Conclusion 14 4.1 What strategic perspective does FedEx fit in? 14 4.2 Did it lead them to having a sustainable competitive advantage? 14 Introduction FedEx started out in its early years as a true pioneer. Originally an express delivery company, it transformed itself to a global logistics and supply chain management company. The CEO of FedEx saw enormous potential in connecting their business with IT. For instance, in the 80’s, FedEx gave away more than 100.000 PC’s...
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...Furthermore, it will also increase the involvement in employee’s personal life which included voter registration, health and safety, personal taxation, housing and others. Next, the more complex employee mix which mean mix of more people from more different cultures and ethnic backgrounds as a more significant part of the workforce and the more complex external influences which included different cultures, political systems, ethics and laws which will increased the risks, such as emergency exits for illness, personal security, kidnapping and terrorism. (Paul Banfield & Rebecca Kay, 2008) 1.1-Background of FedEx FedEx was founded by Frederick Wallace Smith which was originally known as federal express delivery company in the world and the largest in the world in Memphis, Tennessee. FedEx Corp. was formed in January 1998 with the acquisition of Caliber System Inc. FedEx sought to build on the strength of its famous express delivery service and create a more diversified company that included a portfolio of different but related businesses. Caliber subsidiaries included RPS, a small-package ground service; Roberts Express, an expedited, exclusive-use shipping provider; Viking Freight, a regional, less-than-truckload (LTL) freight carrier serving the Western U.S.; Caribbean...
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...Fedex AnnuAl RepoRt 2011 poweRFul, lonG-teRM tRendS in GlobAl tRAde Revolve ARound Fedex. The global shipping arrow poinTs up We’ve reached a tipping point in how the world works. The largest economy in the world is no longer the economy of any one country — it’s the economy of global trade of goods and services. Value: $18.3 trillion in 2010. At FedEx, our job is to facilitate these transactions, the heart of commerce, by providing access — moving goods across the global supply chain. Macroeconomic trends that drive global trade continue to intensify: > Production of high-tech and high-value-added goods continues to rise. > Global sourcing and selling are increasing. > Supply chains are accelerating. > E-commerce is expanding. Manufacturing and emerging markets, including China, India and Brazil, are leading the charge. Thanks to the disciplined execution of our long-term strategies, FedEx is at the center of these powerful global trends: 2-2.5x 50% 30% The percentage of global GDP represented by total trade in goods and services in 2010, which continues to grow.2 The amount by which we expect global trade to outpace projected annual global GDP growth of 3.3% from 2010 to 2015. The percentage emerging markets are expected to contribute to global GDP by 2013.1 4x The amount the international express market is expected to grow as part of the total air cargo market — from 3.7% in 1991 to 17.7% in 2015.3 Scan to see videos and more. fedex.com/annualreport 2011/mobile 1...
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...FedEx Corporation Strategic Audit May 14, 2004 MGMT 449 Prepared by: Clement Chen Lisa Duong Hideo Yang Marny Susanty Mario Vellandi Andrea Betro Forward: This company for this case analysis was chosen by me, Mario Vellandi. I found FedEx interesting because they are one of the top four logistics companies in the world with 2002 group revenues of $24.2 billion. Since I was studying the transport industry, I found them to be an excellent company to analyze while in Strategic Management. Research Process To prepare for this case, I had performed primarily all the research for this case. This process involved first going to the firm’s SEC filings on its website, then downloading the .rtf version of its 2003 10-K, and the following 10-Qs and pre-announcements. After having read and highlighted some 65 pages and notating applicable data for each section of the strategic audit, I copied the data into individual Word documents titled after each respective category. I also utilized company info from the investors section of its site. Next I used the standard and news search functions of Google, among other sites, by combing the term fedex with a combination of various business terms such as competition, weaknesses, swot analysis, and commercials. I had also used combinations with competitors’ names and specific business functions. Next, I had used the advanced features to limit my searches in two ways: by data type, and by domain extension. I found relevant existing secondary...
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...------------------------------------------------- Cases Included: ------------------------------------------------- - Oracle – An Overview of Oracle Business Intelligence ------------------------------------------------- - Enterprise Health Information Systems ------------------------------------------------- - FedEx Express EMEA ------------------------------------------------- ------------------------------------------------- Cases Included: ------------------------------------------------- - Oracle – An Overview of Oracle Business Intelligence ------------------------------------------------- - Enterprise Health Information Systems ------------------------------------------------- - FedEx Express EMEA ------------------------------------------------- ITM505 Group 18 – 3 Long Cases ITM505 Group 18 – 3 Long Cases By: Ali Ahmed (500405839), Arham Gul (500393563), Qasim Malik (500450605), Arich Lengkong (500481555), Patrick Antwi (500461586) By: Ali Ahmed (500405839), Arham Gul (500393563), Qasim Malik (500450605), Arich Lengkong (500481555), Patrick Antwi (500461586) Contents Case Analysis – Oracle: An Overview of Oracle Business Intelligence Applications 3 Introduction 3 Key Issues 3 Key Assumptions 4 What are the advantages and disadvantages of using a Business Intelligence (BI) software system in a small/medium level business? 5 Procurement and Spend Analytics: 5 Supply Chain and Order Management Analytic 5 Financial/Monetary Analytics...
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...UPS Case Study Considerations of Macro Environment Market Demographics: The target market is everyone in the world who needs to ship an item. Christmas time is a particularly busy time for shipping items across the world, whereas people need a company like UPS to do the delivering for them. Economic: Gasoline prices, along with rising energy prices are the major concern. Jet fuel prices are at $2.80/gallon! However, many people would rather have items shipped rather than spend money on gas to go and buy the item. Legal: International express services can be delayed by government policies and restrictions that can include anticompetitive practices of government-owned or authorized monopolies, licensing requirements, customs procedures, restrictions on access to aviation markets, restrictions on access to ground transportation systems, and restrictions on foreign investment. Socio-Culture: The economy is really bad right now, so many people don’t have extra money to make a lot of online purchases and businesses are not selling as much, therefore not needing to ship as much. Global: Worldwide packaging shipping volume is increasing as a result of global exchange, e-commerce, and changes in supply-chain management. Technological: The internet has expanded the reach of direct marketing. Industry Analysis: Dominate Characteristics: With globalization, shipping is now a major priority for businesses and many individuals, especially those that...
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