...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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...Federal Express – delivering the goods Kevan Scholes This case study looks at how new business models can create vast improvements in competitiveness. However, the models must be suited to the business environment at the time and will have a ‘shelf-life’ as the business environment changes. The case study looks at one on the world’s most successful adopters of a new business model that transformed the airfreight and package delivery sectors worldwide. But the advent of the internet in the mid-1990s meant that the FedEx business model had to change or the company would decline. This is also the story of how it rose to that challenge. l l l 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. 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 a controlling interest in Arkansas Aviation Sales, located in Little Rock. While operating his new firm, Smith identified the tremendous difficulty in getting packages and other airfreight delivered within one to two days. This dilemma motivated him to undertake research on how to resolve the inefficient distribution system. In an interview with Fortune Small Business in 2002 he explained his business...
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...r p' FedEx Corporation: Structural transformation through e-business By Ali F. Farhoomand and Pauline Ngl [FedExI has built superior physical, virtual and people networks not just to prepare for change, but to shape change on a global scale: to change the way we all connect with each other in the new Network Economy. (1999 Annual Report) [FedExl is not only reorganizing its internal operations around a more flexible network computing architecture, but it's also pulling-in and in many cases locking-in customers with an unprecedented level of technological integration. (Janah and Wilder, 1997) ince its inception in 1973, Federal Express Corporation ('FedEx') had transformed itself from an express delivery company to a globallogistics and supply-chain management company. Over the years, the Company had invested heavily in IT systems, and with the launch of the Internet in 1994, the potential for further integration of systems to provide services throughout its customers' supplychains became enormous. With all the investment in the systems infrastructure over the years and the US$88 million acqrtisition of Caliber Systems, Inc., in 1998, the Company had built a powerful technical architecture that had the potential to pioneer in Internet commerce. However, despite having all the ingredients for the maltings of a successful e-business, the Company's logistics and supplychain operations were struggling to shine through the historical image of the Company as simply an express...
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...Managing Information Systems FedEx Case 1. List the business processes displayed in the video. - Pick up the package & scan the box. - Transfer of the packages & letters to a big rig - Packages are loaded to a conveyor and sorted regarding its final destination - The belt carries the package to a scan that register each of them according to their weigh and size. - The packages are then pushed different ways depending on their destination - The packages with unreadable label are treated manually and disposed on their right destination. - Packages are thrown into container that are entirely weighted and specially designed in order to fit on an aircraft. - Packages take to the air. - When arrived at destination, packages arrive to another facilities centre and are sent regarding the right cities. - Once in the truck, FedEx couriers are delivered to the exact location specified on the label. 2. List the types of information systems shown in the video. Can you describe how systems that were not shown might be used at FedEx? - At the first moment the package is being picked up, the FedEx carrier scan the label on the box that send directly to the system that the package has been picked up. - Once the package arrives to the first conveyor, the scan gives the information regarding the destination. - In the sorting centre, another scan takes care of adding the weight and size to the label in order to determine the price that would be charged to the consumer...
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...Case 1 How FedEx Works: Enterprise Systems 1. FedEx uses many businesses processes when shipping an item. First they arrive to pick up the package, upon arrival they scan the package so they know it is now in their possession and it is able to be tracked. This is part of a manufacturing and production process, as well as a sales and marketing process. It is a manufacturing and production process because it starts the initial travel or shipping of the package to its destination. Sales and marketing is used through customer service by getting someone to use FedEx (generating an order) and by the convenience of having the package picked up from the customers door step. Once the package is picked up it is taken to a hub or sorting center. At the sorting center the package is put on a conveyer belt that sorts through the packages and sends them to their destination. While on the conveyer belt the packages are scanned by invisible laser beams which weigh each box and measure the size. The length, width, & height are measured and together they produce the volume of the package, this tells FedEx how much to charge the customer for shipping. This particular example is in the financing and accounting category of a business process. The packages are then pushed by a diverter to the appropriate slide; there are nine of these slides or chutes all of which represent a different location in the U.S. The packages that are unable to be read are sorted manually. They are then put in a...
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...FedEx Corporation Case Study Jama Eddleman Mid-Continent University HRM 6003 Professor: Dr. J. Gordon July 14, 2013 FedEx Corporation Case Study Mixing up the order my papers usually proceed in, I am putting my Biblical worldview first, instead of at the end. There are many organizations and companies today that do not operate as God instructs. The Lord is clear in explaining how to operate a business and how to be a good employee. His instructions for the business world, as with all Christian instruction for our whole lives, is found in the Bible. B – basic; I –information; B – before; L – leaving; E – earth. I found this anagram years ago on a church bulletin board. The scripture I like in regard to this case study and how FedEx tries to honor its employees and remain dedicated to their needs comes from Micah. Verse 6:8 says, “He has showed you, O man, what is good. And what does the Lord require of you? To act justly and love mercy and to walk humbly with your God” (NI V). FedEx appears to be a company that works hard to be just, merciful, and walk humbly. FedEx leaders know that the company would not be where it is today without good employees, and they strive to do all they can to take care of their employees. FedEx is a brand name known both nationally and worldwide. FedEx began under the name Federal Express. The firm initially specialized in overnight package delivery via air cargo. While the name, size, and services the company offers have changed...
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...Federal Express The Federal Express is an express transportation company, created in 1973 by an innovative entrepreneur Frederick W. Smith. During his college years, he saw the idea that the United States was becoming more of a service-oriented economy and that it needed a reliable, overnight delivery service company that would transport packages, documents, medicine, computer parts and electronics. Frederick Smith born in Memphis, TN in 1994 perhaps has became one of the most innovative entrepreneurs with his corporation. In 1966 he graduated from Yale University with an economics degree. While pursuing his career, “he authored a paper describing the concept of a freight-only airline that would fly all packages to one central point, where they would then be distributed and flown out again to their respective destination (Hisrich, 2010, pg. 226).” The operations would take place overnight when airports were less crowded, and with the proper logistics, the packages would reach their destination by the next day. The professor did not think the idea was feasible so Smith received a C grade for his paper. Fortunately for Frederick Smith, he didn’t take it to heart and ended up building that company he dreamed of. After graduating from Yale, he enrolled in the Marines he served two tours of duty, first as a rifle platoon leader in the U.S. Marines and later as an air controller. His four year term was well spent because it permitted him the opportunity to examine a working...
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...Situational Analysis Nature of Demand At its start Federal Express Inc. was classified as an air-taxi operator. Being classified as this set the company into the aircraft transportation industry. The air-taxi segment in the aircraft transportation industry was around for some time prior to Federal Expresses entry into the industry. As of 1973, when Federal Express first started up, there was close to 1,000 different airfreight forwarder salespeople in the country. With close to 1,000 different options for airfreight forwarding services there was still very few well known names in the industry. According to a random polling the only companies that people where able to recall where the ones that heavily advertised in all media fashions. Of these 1,000 different options all where still able to be divided into three main competitive sections. Delivery Service – Delivering packages door-to-door usually in a certain mile radius. Messenger Service – Usually handling small parcels no larger then 2-5 pounds. Air Cargo Service – Routing air cargo across different states. The three sections above where able to still be furthered classified into four smaller sections. Three of the four smaller sections relate to air freight. Emergency – service with maximum speed and the highest priced. Rush – Generally next-day delivery and somewhat price sensitive Routine air – the largest airfreight category and very price conscientious Routine – the largest of the four freight categories and...
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...than the latter but regardless of whose problem, it is irrefutable that unreliability is an inherent trait of technology. FedEx cannot eradicate this problem completely but it can potentially prevent it from happening by using different management information systems to monitoring their network. Network Performance Monitor by Solarwinds (Network Monitoring Software) or WhatsUp Gold by IPSwitch (Ipswitch) are network monitoring software that can monitor and analyze network performance. FedEx can use these products to detect and analyze network packets to predict an imminent network outage. Technology cannot be used by everyone. Some parts of the world, and even in America, people are still computer and information illiterate. And thus they cannot rely on technology to accomplish their tasks, in this case, it can be a simple task of entering a tracking ID onto fedex.com website. In addition, some people cannot use technology because they are handicapped. For example, blind people cannot browse the web on a computer laptop, or deaf people cannot speak or hear from a phone. Other drastic example such as people whose have degenerated brain function diseases, that render them completely inert, cannot see, hear or speak. These people cannot utilize any technology to obtain customer service. I think FedEx can overcome these challenges in many ways. First, FedEx can implement artificial intelligence onto their website to train and show their customers on how to track their packages...
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...Question 1: List the business processes displayed in the video. FedEx is a logistical service company employing 100 000 employees all around the world. They are specialised in transportation, e-commerce and business services. In order to be successful in their job they came up with a really efficient information system. We are now going to describe the different business processes shown in the video that retraces the entire journey of a package. 1. First a FedEx employee goes to the house of the customer and picks up the letter or the box the customer wants to send. The employee immediately scans the product so FedEx recognizes it. From this moment on and until the end of the process, FedEx will be able to know where each package is. When the pick-up tour ends, the truck goes to a sorting center to transfer the packages. 2. Once in the warehouse (called sorting center), all the packages need to be classified. Some of them are headed to the US; others are going to Europe or Asia for instance. First the package is put on a belt where it is measured (length, height, weight, volume) it tells FedEx how much to charge the customer for the shipping. Then the package goes under a scanner that reads the destination and puts the box in the right belt. If the machine cannot scan the box then the package is sorted out manually. 3. The third step is to put all the boxes in the right container and to fill it up at its maximum. The container is designed to fit in perfectly...
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...Case Analysis 4: FedEx Express MD-10 Landing Gear Failure Karreem L. Lisbon Embry-Riddle University This paper will cover information on a FedEx Express MD-10 Landing Gear Failure. Specifically, research and information pertaining to the accident that occurred on October 28, 2016. Additionally, information will be analyzed and presented on the primary cause of the accident. The research for the paper will be conducted through the use of the world-wide web and the Hunt Library. FedEx Express flight 910, a Boeing MD-10-10F (registration N370FE) experienced a left main landing gear collapse and subsequent fire in the left wing after landing on Runway 10L at Fort Lauderdale–Hollywood International Airport, Fort Lauderdale, Florida, Oct. 28, about 5:51 p.m. EDT. The airplane came to rest on the side of Runway 10L. The two flight crew members evacuated the airplane via the cockpit window and were not injured. The airplane was substantially damaged. The cargo flight originated from Memphis International Airport, Memphis, Tennessee,(Knudson, 2016)....
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...This case study presents that customer service is very important for FedEx, a global leader in shipping industry. FedEx is one of the largest organization with 275,00 employees and independent contractors handling an average of 6 million packages using 669 aircraft and 71,000 trucks. FedEx servers more than 220 countries and territories, while serving these territories and delivering millions of packages, inevitably packages are delayed, damaged or gone missing. To get answers to all these issues customers call FedEx call center. FedEx employs 4,000 customer services reps in 65 call centers resolve customers issues. Shipping is a very competitive industry and it is important to answer these inquiries in a prompt and efficient manner. While these call centers are essential part of the business but they are expensive and affects company’s bottom line. This case study presents a fact that call volume is extremely high and reps never have an idle moment. While resolving and answering customer complaints quickly is beneficial for the company but reps don’t want customers to feel that they are being rushed. Case study noted that company decided to get help from Information technology to serve their customers efficiently and quickly. FedEx, first figured out what was the most frequent request then installed software that reps would use to provide faster service. Since many callers were already registered on the website and most frequent question was a request to request a FedEx worker...
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...Federal Express – delivering the goods Kevan Scholes This case study looks at how new business models can create vast improvements in competitiveness. However, the models must be suited to the business environment at the time and will have a ‘shelf-life’ as the business environment changes. The case study looks at one on the world’s most successful adopters of a new business model that transformed the airfreight and package delivery sectors worldwide. But the advent of the internet in the mid-1990s meant that the FedEx business model had to change or the company would decline. This is also the story of how it rose to that challenge. l l l 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. 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 a controlling interest in Arkansas Aviation Sales, located in Little Rock. While operating his new firm, Smith identified the tremendous difficulty in getting packages and other airfreight delivered within one to two days. This dilemma motivated him to undertake research on how to resolve the inefficient distribution system. In an interview with Fortune Small Business in 2002 he...
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...Air Cargo Management-13 Yoon Seok, Chang School of Air Transport, Transportation & Logistics, KAU Email: yoonchang@kau.ac.kr 1 Why Use 3PL’s? • Save time – Don’t need to invest in: Trucks, Training, Development • Narrow your focus – Allows you to focus on your strengths • Reach more customers more effectively – Can ensure delivery times – can help a company run leaner Types of 3PL Providers • – – – – • Transportation Based Services extend beyond transportation to offer a comprehensive set of logistics offerings. Leveraged 3PLs use assets of other firms. Non-leveraged 3PLs use assets belonging solely to the parent firm. Examples: FedEx Logistics, UPS Logistics Financial Based – Provide freight payment and auditing, cost accounting and control, and tools for monitoring, booking, tracking, tracing, and managing inventory. – Examples: Cass Information Systems, CTC, GE Information Services, FleetBoston Types of 3PL Providers • Warehouse/Distribution Based – Many have former warehouse and/or distribution experience. – Examples: Exel, Caterpillar Logistics, IBM • Forwarder Based – Very independent middlemen with forwarder roles. – Non-asset owners that provide a wide range of logistics services. – Examples: AEI Types of 3PL Providers • Information Based – Significant growth and development in this category of Internet-based, business-to-business, electronic markets for transportation and logistics service Levels of Outsourcing • Transactional...
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...Portion EC-1 Assignment – Part 2: Case Study: FedEx & IT (Max Marks: 7) Last Date: 28/10/13 Important Note: 1. Assignment is individual. NOT a group assignment. 2. Copying cases will be awarded zero marks 3. Adhere to words limit set by instructor. 4. Do not wait for the last day to upload your document when the traffic would be peak resulting in problems in uploading and delay. 5. Late submission of assignments will attract zero marks. Case background in brief FedEx Corporation, known worldwide, provides customers (individuals and businesses) with a portfolio of transportation & logistics, e-commerce and business services. With annual revenues of over $44 billion, the company offers solutions through operating companies competing together and managed collaboratively, under the FedEx brand. FedEx is consistently ranked among the world’s most admired and trusted employers. Its workforce consists of more than 300,000 members worldwide. The average daily volume is more than 10 million shipments for express, ground, freight, and expedited delivery services. Service area covers more than 220 countries and territories, including every address in the US. Its web site attracts over 32 million unique visitors monthly; more than 6.5 million package tracking requests daily and more than 20 million labels generated via FedEx Ship Manager monthly. Some...
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