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Strat Case Submission Appl Case

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Case Commentary
This is a case about the company FedEx, a courier delivery service in US, which initially started off on a small scale and then started ramping up its facilities to reach the number 1 spot among all courier services. In June of 2000, FedEx, initiated Project ARISE .The major goals of project ARISE pertained to two major issues: the first was with respect to unifying the sales and marketing groups for both FedEx Express (air) and FedEx Ground (ground). The second issue was to develop a new compensation plan for the account executives now that their focus was on two different services (FedEx Express and FedEx Ground).In Jan 1998, FedEx acquired RPS, which would later become FedEx Ground, in order to diversify its delivery capabilities to both air and ground. Internally, combining these two departments would prove to be more cost effective; from a customer standpoint. Main issue
How to evaluate the best account executive compensation plan for the integrated FedEx Express and FedEx Ground services that is in accord with the goals of Project ARISE. RECONMENDATION
Solutions from FedEx end should be that they encourage cross-selling, and a first step in this process would be to declare quotas for sales force of both the firms. There is also a need to create a compensation plan that has greater clarity so as to give the sales force even more incentives. To properly connect both the Ground and Express lines of FedEx under a single sales team, a distinct compensation plan must be developed. The correct compensation plan would be devised based on the ratio of the account of express vs. ground.
Another important priority should be that of creating an employee-wide awareness of the compensation plan. If employees have a better understanding of the plan, they will be in a better position to track and calculate their results, hence providing…...

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