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Overnight Express Case Analysis

In: Business and Management

Submitted By rfreeman6
Words 1330
Pages 6
Background The case overnight express explains how an enterpanuer ,who failed in the magazine business, started up an overnite delivery service. Ukropina started by creating a five year business plan and began looking for others who would join his board and invest in his idea. Determined to conquer his dream he gathered business associates from many different fields. He used his network to get his first clients by having them put dropboxes by their offices. Nine moths into the business Overnite express wa out of capital and had to bring on someone to fill the void. Knowing that what drives any company is its employees, Ukropina set up a plan to keep turnover don and his employees content. The employees have a fixed salary and are paid a bonus based on profit sharing. He also came up with an incentive for the employees so they carry them selves as enterepanuerrs in the company and ultimately care more about getting their job doen in a timely manner. Overnite Express is well established in Southern california but there are many customers that would like to see overnite Express in Northern california as well. Overnite Express wanted customers who were shipping packages to have the ease of doing so and finally decided to start doing business in Northern Califonia also. Also, by making this move it's customer base would increase by 28% in Northern california and 30% in Southern california. Overnite Express knows how to keep customers comiing back. Thier completion rate is 99.9% and their ontime rate is 99.2%. These numbers are huge compared to its competitors. In fact 99% of new customers were prevous fedex customers. Due to their excellent track record and their ability to acquire new customers and keep old customers pitting out referrels, Overnite Express has been growing at a rate of 25 to 30 percent since 1998. Although Ukropina would like to keep the business

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