Premium Essay

Fed Ex vs Ups

In:

Submitted By deysih2393
Words 417
Pages 2
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 lower than UPS. UPS on the other had had a higher earnings per share but his weighted average cost of capital was higher.

4. If you were identify one of these companies as excellent in 2004, which one would you choose? On what basis would you make your decision?
- If I was to identify one of the companies as excellent in 2004, I would have chosen FedEx. Their financial statement and

Similar Documents

Free Essay

Kramer vs Kramer

...Jack Sisson 11/18/12 Kramer vs. Kramer A film can be interpreted in many ways, and the best interpretations are the ones that talk about what’s underneath each image. That means that the best ways to explain films are to describe what the deeper meaning is of each detail, from the first opening credit to the final end credit. The deeper meanings are combined in order to form themes. There is usually at least one Christian theme in there. The main Christian theme in the film Kramer vs. Kramer is love. Kramer vs. Kramer is a passionate film about a wife who leaves her husband because of how upset she is with their marriage. Fifteen months after the divorce, a legal battle begins to determine who gets to keep their 7-year-old son Billy, which turns into a battle of who believes he loves him more and who should get custody of him. The movie was released in 1979, and was written and directed by Robert Benton. Love is a central theme throughout the movie because of the love that Joanna Kramer, Billy’s mother, and Ted Kramer, Billy’s father, show for each other and for Billy. How much someone cares for another person can sometimes lead him to act without thinking and without the input of that person whom he cares for. This is the case when Joanna leaves Ted in the film Kramer vs. Kramer. Margaret, a friend of both of them, consoles Joanna when she talks about how fed up she is with her husband and that she wants to leave him because she feels so much pain. Joanna shows how much...

Words: 825 - Pages: 4

Free Essay

Federalism

...What is a federal form of government? What image do you have of when you think of federalism? \Do you think of the federal level of government? State government? Local governments? All three? Layer Cake, Marble Cake....21st Century View: Intergovernmental Relations Do democratic governments need to be organized as federal systems? Great Britain has a Unitary form of government How does this differ from the U.S.? Powerful central government with federal or central government mandates (laws) that are implemented (put into place) throughout the whole country= Unitary govt. Examples: National Health Policy throughout the whole country so that you can go from city to city in Great Britain and use your health card at any hospital. (Portability of health insurance in U.S.: can get care anywhere in our country) Current American example of an issue that is being discussed as a national issue: elections Should we have Congress pass federal rules for identification, times polls are open, voting ahead of time, etc.? Do you personally tend to look to the federal government to solve problems in the U.S. ? (synonyms for federal govt.: national govt. and central govt) OR Do you tend to focus on your state government or on your city or county (local) government? We do not have good political theories of when federal minimum national standards are appropriate...

Words: 1421 - Pages: 6

Premium Essay

Study

... competitive differentiated product Monopolistic competition structure: Many buyers, few large seller with complete product offering Information about product is no longer complete Sellers now offer very different products Market is not influences by one single buyer or seller Resources are free to move, ease of entry and exit How to find potential customer: segmentation Geographic- city or rural, Europe or middle east. Regional foods ex: Walmart: did it in a small town to avoid competition Demographic – age sex income education tech savvy look for major shifts Psychographic- life style, personality ex: goth Behavior- usage, loyalty, repeat purchase activity: ex: wegmans card Direct your product efforts to a particular segment rather than whole market Can then be divided into niche markets Opportunities come from looking beyond customers stated needs Unarticulated expressions Customer frustrations Ex: gas station starting to sell food… KFC Ex: priceline: couldn’t compare prices, no user reviews, ticket costs vary, didn’t understand airline language… priceline Product illustration: Core benefit, actual benefit,...

Words: 2854 - Pages: 12

Premium Essay

Biology

...1. In your own words, provide a definition for “homeostatic regulator” and “homeostatic conformer”. Describe an example of an animal that is a regulator with regards to one physical condition but a conformer with regards to a different condition. -Homeostatic regulator is one in which it uses internal mechanisms to control internal change in the face external fluctuation. (an otter regulates body temp independently of exterior cold water). -Homeostatic conformer is one in which the organism if it allows an external influence the internal conditions of the organism. (Bass fish conforms to the temp of the lake that it inhibits) 2. In your own words, provide a definition for poikioltherm, homeotherm, ectotherm and endotherm. Provide an example of an animal for each of the following combinations and explain why it fits these terms: - Poikioltherm: An animals whose body temp varies with the surrounding temperature  -Homeotherm: An organism such as a bird or mammal, having a body temp that is constant and largely independent of the temperature surrounding.  -Ectotherm- heat acquired from external environment -Endotherm- heat generated by metabolism Poikilotherm & ectotherm: Fish, amphibians, reptiles.  Poikilotherm & endotherm: Mammals and birds, insects Homeotherm & ectotherm: tropical reptiles  Homeotherm & endotherm: Mostly birds and mammals 3. Describe the 4 mechanisms through which animals exchange heat with their environments. -Radiation: Release...

Words: 2439 - Pages: 10

Premium Essay

Syllabus

...OUTLINE – Chapter 3 (Mod 7, 8, 9) NEUROSCIENCE & BEHAVIOR 1. Neurons and Neural communication a. Neurons/neural impulses b. Neural communication c. Neurotransmitters 2. Nervous system a. Structure and function b. Reflexes vs. Neural networks 3. The Brain a. Studying the brain b. Brain regions/function c. Plasticity d. Hemispheric differences • Gazzaniga article/video NEURONS: STRUCTURE • Dendrite - the ‘in-box’ • Cell body - basic cell functions • Axon - the ‘out-box’ (axon-away); Myelin Sheath • Terminal Vesicles • Synapse • Receptor Sites NEURONS: COMMUNICATION How do neurons communicate? 1. How does information travel within a neuron? 2. How is information passed from one neuron to the next? NEURONS: communication - WITHIN ACTION POTENTIAL 1) All neurons have a resting state 2) Dendrite is stimulated ▪ Positive ions flow into the cell until… 3) Threshold is reached ▪ Action potential is triggered (all-or-nothing) 4) Wave moves down the axon 5) Wave reaches the terminal vesicles NEURONS: communication - BETWEEN 5) Wave reaches the terminal vesicles 6) neurotransmitters are released into the synapse 7) NTs bind with receptors on dendrite of next neuron 8) Process starts in the next cell NTs can: * Excite the next neuron *...

Words: 604 - Pages: 3

Premium Essay

Fedex vs Ups

...about FedEx vs. UPS China & US agreement for the establishment of air-cargo hubs in China and landing rights for commercial airlines at any available airport China is battleground for the two package delivery giants Assumption: success in China was widely seen as the litmus test for corporate survival in the new millennium No guarantee for how new cargo routes would be allocated between UPS and Fed Ex Which company was better positioned to attract the capital necessary to win this competitive battle? Current facts FedEx had largest foreign presence in China invented customer logistical management innovative, entrepreneurial, operational leader 2003 assets: $15.4 B Net Income: $830 M Revenue: $22.5 B Performance assessment: superior financial returns No unions – flexible with costs Model asset attentive UPS world’s largest package-delivery company historically bureaucratic and industry follower overhaul of image repositioning as leading provider of logistics and supply-chain management services small-package market - $60 B vs. worldwide supply-chain market is $3.2 T everything from the moment something gets made until it gets delivered for final delivery, and then after market, it’s parts replacement 2003 assets: $28.9 B Net Income: $2.9 B Revenue: $33.4 B Performance assessment: long-term competitive return History of FedEx 1971 Fred Smith Yale Purchase planes instead of using cargo space on passenger airlines like competitors Largest venture-capital start-up at the time...

Words: 711 - Pages: 3

Free Essay

Assienment

...PowerPoint posters. • Case Study 1: Apple Inc’s iPhone: can iPhone Maintain its Initial Momentum? (Ghauri and Cateora, 2010). Note: This case study is not graded, but formative feedback will be given verbally at the end of each presentation. Brief: 1. Carry out a PEST- analysis for iPhone in the UK and a more detailed market analysis. 2. From the two analyses summarize and recommend key factors – “opportunities” that can benefit future strategies for Apple Inc’s iPhone products. • Case Study 2: FedEx vs. UPS – Competing with Contrasting Strategies in China (Ghauri and Cateora, 2010, p600). Note: This case study is not graded, Brief: 1. Carry out a comprehensive SLEPT- (including a competitor analysis) and a SWOT- analysis for Fed Ex using the case study and the internet to establish its current competitive situation compared to especially UPS. 2. FedEx’s main focus has been on providing its customers with innovative and value-added services. This has so far worked well to differentiate them from their rivals. However, as the market is getting even more competitive in China recommend future strategies based on the result of the analysis in Task 1. Justify your recommendations with reference to theoretical concepts. • Case Study 3. Strategy Formulation at Zanzibar. (Ghauri and Cateora, 2010). Note: Presentation of this case study will be graded....

Words: 500 - Pages: 2

Premium Essay

Usefull Citibank Links

...1 http://online.wsj.com/article/BT-CO-20120405-708286.html * April 5, 2012, 10:23 a.m. ET By Alan Zibel Of DOW JONES NEWSWIRES WASHINGTON (Dow Jones)--A U.S. bank regulator on Thursday cited Citigroup Inc. (C) for failing to comply with a federal law that requires banks to establish protections against money-laundering but didn't impose a fine. The Office of the Comptroller of the Currency said that Citi's U.S. banking unit showed deficiencies in its compliance with the bank-secrecy act, which requires banks to report on suspicious activities and maintain other protections against money laundering. Citi neither admitted nor denied the regulator's allegations and entered into a consent order with the regulator to fix the problems. Though the regulator didn't issue a fine, it still has the right to do so. The regulator said the bank had numerous weaknesses, including problems identifying and monitoring high-risk customers. In response, Citi said that the bank has "taken significant steps" in developing plans to manage the risk of money-laundering risks. "Because of these actions, many of the issues highlighted in the OCC's order have already been remediated or are in the process of being remediated," the bank said. "Furthermore, we are developing a plan to address the remaining OCC requirements. " -By Alan Zibel, Dow Jones Newswires; 202-862-9263; alan.zibel@dowjones.com 2 http://www.fool.com/investing/general/2010/07/22/citigroup-strengths-weaknesses-opportunities-threa...

Words: 6341 - Pages: 26

Premium Essay

Ups Ipo

...Undergraduate Student Managed Investment Fund United Parcel Service, Inc. (UPS) Type of Report: Recommendation & Analysis Recommendation: $58.40 Date: April 14, 2003 Limit order to buy 175 shares at $55.00 Market order to buy 175 shares Industry: Transportation - Air Delivery, Freight & Parcel Services Analysts: Michael Vida - mvida24@hotmail.com Carmela Miele – carmela37@aol.com Salvatore Samà – samasalvatore@yahoo.it Share Data Price - $58.40 Date – April 14, 2003 Target Price - $60.35 52 Week Price Range - $53.00 - $67.10 Market Capitalization - $ 64.644 Billion Shares Outstanding – 1.12 Billion Revenue - $31.272 Billion Proj. LT EPS Growth Rate: 14% ROE 2002: 26.10% Earnings Per Share and Projections FY Ending Full Year 12/01A 2.13 12/02A 2.84 12/03E 2.29 12/04E 2.67 12/05E 2.94 Fundamentals P/E (12/02): 20.2 P/E (12/03E): 26.46 Book Value/Share: $11.09 Price/Book Value: 5.167 Dividend Yield: 1.46% Consensus Est. Avg=2.33 (yahoo) Avg=2.67 (yahoo) N/A 2 of 34 Executive Summary We are recommending the purchase of 350 shares of UPS, currently trading on the NYSE at $57.30. United Parcel Services has one of the most extensive global ground and air networks for transportation. The largest transportation company, UPS, has been outperforming S&P by 30%. UPS is not solely a transportation company; they also act as consultants for the logistics of major companies in 130 countries. UPS has always been a leader in technology, for this reason, they have almost...

Words: 11081 - Pages: 45

Premium Essay

T340 Exam 3 Studyguide

...What is Copywriting? * Another word for the text of an ad. Copywriting is impressionistic: using a few words to deliver a complete message. What is the creative team? * The copywriter and art director. Which leads to the creative plan What is the creative plan? * How will the product be presented? Which benefits will be communicated? What is the mood of the ad? What are the production values of the act? What is the purpose of a headline? * Get attention of reader, Target potential customers, Identify the product, Set the mood (tone) of ad. Guidelines are to make it understandable What is the purpose of a subhead? * Elaborates the theme of the headline, transitions between headlines and body copy. The Longer the body copy, the more appropriate the set of subheads. What is the purpose of body copy? * Tells the story of the ad Three most common types of body copy * Straight-line/narrative * Basic explanation of the product * Dialogue * Designed to supply information through dialogue * Testimonial * Three kinds: Real person, Actor playing real person, Celebrity Slogans * A short phrase to help establish the product’s identity, image, positioning * Example: M&M’S It melts in your mouth not your hands What are the 8 rules for writing copy? * KISSuse familiar words and phrases, use presentence, avoid passive voice, use active voice, vary length or sentences and paragraphs, involve reader, avoid clichés,...

Words: 1212 - Pages: 5

Free Essay

Kelloggs

...Europe's Carmakers Want to Shrink. Unions Stand in the WayUnion resistance to job cuts has saddled manufacturers with costs Global Economics The Hot New Target for B-School Applicants: GermanyConclave to Elect Pope Starts on TuesdaySkype's Been Hijacked in China, and Microsoft Is O.K. With ItFor Chávez's Successor, Venezuela's Economy Looms LargeRecent Pride and Concrete: Romania's Migrant WorkersThe U.S. Jobs Engine Was Strong Heading Into SequestrationDid They All Retire?Coke, Unilever, Colgate-Palmolive Seize India's Biggest Marketing OpportunityFederal Reserve's Stress Testing Shows Politics, Not MathSections ChinaCurrent Events CalendarU.S. EconomyIndiaEnergyHousingEuropeGlobal EconomicsJobsBlog: EconochatCompanies & Industries Facebook vs. Twitter: Want Your Feed Filtered or Unfiltered?Twitter's unfiltered method can be overwhelming; Facebook's is secretive and invasive but helps with the oceans of content Companies & Industries Britain's Wonga: Payday Lender and Proud of ItAutomakers Cashing in on High-End ModelsThe Economic Benefits of Educating WomenHow Facebook's New Design Can Increase Ad RevenueRecent The Man Who's Trying to Free Sherlock HolmesSkype's Been Hijacked in China, and Microsoft Is O.K. With ItStandard Bank Takes Risky Step With Co-CEOsCoke, Unilever, Colgate-Palmolive Seize India's Biggest Marketing OpportunityEurope's Carmakers Want to Shrink. Unions Stand in the WaySections AutosSportsCompany...

Words: 2395 - Pages: 10

Free Essay

Environmental Hisotry

...judge US * Mostly statutory, but judges are important * Interpret statues * Judge decides if not codified * Criminal – against State * Civil – all other Environmental Law not very effective if using private remedies PRIVATE REMEDIES | GOOD | BAD | Develop theory and needs | After the fact | Push legislation | Disorganized | Day in court | Costly | Money damages | Only personal damages | Tort Law - wrongful acts vs. contract law 1. Negligence a. Duty owned b. Unreasonable act c. Personal Injury d. Ex: pesticides 2. Trespass e. Tied to property rights f. Property invasion g. Ex: dam building (H2O invasion) 3. Nuisance h. Tied to unreasonable use interfering with another’s use i. Property use damaged j. Loss of livability k. Can’t move TO a nuisance l. Standing question i. cannot sue unless suffer special damage ii. different in kind, not just degree m. Ex: smoke, sewage treatment, hog farm, airport CIVIL REMEDIES 1. Monetary damages – personal things $ can fix 2. Injunctive relief – environmental, $ can’t replace, make do something a. Negative – DON’T do something b. Mandatory / Positive – Require to DO something c. Declaratory Judgment – do BEFORE; doesn’t work b/c US legal system adversarial 3. Strict Liability – Special cases d. e. Liability without...

Words: 7450 - Pages: 30

Free Essay

Dbs Research

...Regional Morning Pack DBS Group Research . Equity 01 October 2009 Spotlight On (SP) Hiap Seng: Undervalued oil and gas play (Initiate Coverage) BUY; S$0.69; HSE SP; Price Target: 12-Month S$0.90 • • • • Huge 40-60% discount to peers is unwarranted. Expect high dividends of 4.0-4.5 Scents per share. Margins improvement to support earnings growth. Initiate coverage with a BUY rating. 30% upside to our target price of S$0.90. Ideas & Updates REGIONAL US Fed: Two collision courses SINGAPORE Banking: Positive uptick in loans Hiap Seng (Initiate Coverage) – See Spotlight MALAYSIA Tanjong PLC: Attractive yield play BUY; RM15.00; TJN MK; Price Target: 12-month RM19.25 HONG KONG PUBLIC HOLIDAY THAILAND Charoen Pokphand Foods – See Spotlight (TB) Charoen Pokphand Foods: Earnings surge, costs remain low BUY; Bt7.95; CPF TB; Price Target: 12-Month Bt9.60 (Prev Bt7.50) • • • 3Q09F will beat record high 2Q09 earnings Promising outlook with firm product prices, low raw material costs, and improving margins Raised earnings, and TP to Bt9.60. Undemanding valuation, 21% upside, maintain BUY. Singapore Research Team – 6533 9688 research@dbsvickers.com www.dbsvickers.com “In Singapore, this research report or research analyses may only be distributed to Institutional Investors, Expert Investors or Accredited Investors as defined in the Securities and Futures Act, Chapter 289 of Singapore.” “Recipients of this report, received from DBS Vickers Research (Singapore) Pte Ltd (“DBSVR”)...

Words: 21991 - Pages: 88

Premium Essay

Fedex Paper

...Value, 2004: FedEx Corp. vs. United Parcel Service, Inc. FedEx will produce superior financial returns for shareowners by providing high value-added supply chain, transportation, business, and related information services through focused operating companies competing collectively, and managed collaboratively, under the respected FedEx brand. FedEx Mission Statement (Excerpt) We serve the evolving distribution, logistics, and commerce needs of our customers worldwide, offering excellence and value in all we do. We sustain a financially strong company, with broad employee ownership, that provides a long-term competitive return to our shareowners. UPS Mission Statement (Excerpt) UPS hubs in China as of 2009: Shanghai and Shenzhen FedEx hubs in China as of 2009: Guangzhou Figure [ 1 ] - Source: http://www.travelchinaguide.com/map/ Introduction June 18, 2004 marked the start of an important international trend in logistics and carrier services. The U.S. and Chinese government came to an agreement that allowed the development of air cargo hubs and landing rights for commercial airlines in China. This pact not only opened up extensive new opportunities for the airborne market in general, but gave FedEx and United Parcel Service (UPS) exclusive cargo transportation rights (Bruner & Carr, 2010). At the time, FedEx was winning the battle for China, with its Chinese volumes nearly doubling from 2003 to 2004. Despite this, rival UPS still held the title as the...

Words: 6632 - Pages: 27

Premium Essay

Review

...issued by finance corporations, they finance these purchases by selling secondary securities to household investors and other sectors in the form of deposits and insurance • FIs monitor the corporations keeping agency costs to a minimum • Liquidity risk: FI securities have better liquidity than corporate securities Functions of FIs • Provide a brokerage function along with asset transformation function o Asset transformation: issuing deposits to buy primary securities • Provide transaction services and information specialists • Enact monetary policy Primary Vs secondary securities • Primary o Financial claims issued by commercial corporations are invested in real assets • Secondary- FIs buy primary securities with money from savers o Savers indirectly buy the primary securities o The information and evaluation (ex-ante), monitoring, liquidity costs and price risk are reduced through the FI FIs as delegated monitors • Depositors delegate an...

Words: 4454 - Pages: 18