...head: FedEx FedEx Brandy Craig Indiana Wesleyan University ACC 549 Dr. Peter McDaniel August 10, 2014 FedEx Company Overview FedEx begins their mission statement by stating that they will “produce superior financial returns for its shareowners by providing high value-added logistics, transportation and related business services through focused operating companies” (Mission Statement, 2014). FedEx is one of the largest domestic and foreign shipping companies in existence in the economic world that we know today. FedEx began its journey in 1971 when it was founded by Frederick W Smith in Little Rock, AR (Acquisition History, 2014, para 1). They went global in 1984 when they purchased Gelco Express International, a “worldwide courier with service to 84 countries” (Acquisition History, 2014, para 2). In 1989 they purchased Tiger International Inc., a flying full-service, cargo airline company (Acquisition History, 2014, para 2). Nine years later, in 1998, they really started growing. FedEx created the company FDX in which they later renamed as FedEx Corporation (Acquisition History, 2014, para 4). It was in 1998 that FedEx Ground and FedEx Freight both took off. Not only did they service customers through the air as an express service but they also were able to sufficiently service customers across the US by the use of trucks making it much more economical and affordable (Acquisition History, 2014, para 4). From 1998 FedEx Corporation...
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...With last years school shooting in Newtown Connecticut a movement started to ban assault style rifles, not only would this ban be ineffective but it would be a solution to an issue that does not exist. Assault rifles are used in a very small percentage of gun crimes in the United States and they are only cosmetically different from other rifles. There has been a ban on them in the past and it proved to be an ineffective measure that was allowed to expire without being renewed by congress. These types of superficial classifications of weapons is useless when deciding whether or not a gun should be allowed to be owned and attacking assault weapons is similar to attacking one brand of cars for being involved in traffic accidents. An assault rifle is a semiautomatic rifle that has a pistol grip, detachable magazine, and is styled after a military rifle. These rifles require a pull of the trigger for every round that needs to be fired unlike their automatic military counterparts that are able to fire multiple rounds for each pull of the trigger. Assault rifles come in a variety of calibers and styles which is likely one of the reason that gun enthusiasts have such a passion for them. The most recent proposed legislation attempted to limit magazine size to ten rounds, prohibit the sale of rifles with a pistol grip, and had a list of other criteria that if a rifle had two of the characteristics present would classify it as an assault rifle and illegal. These characteristics...
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...02/07/2013 GOV 100 Paper Assignment #2 Gun Control: - S.150 - Assault Weapons Ban of 2013 Connecticut December 2012, a Bushmaster AR-15 assault weapon was involved in the deaths of twenty children. Colorado, an AR-15 assault rifle was involved in the killing of twelve innocent civilians at a movie theater. A TEC-DC 9, Hi-Point 995 Carbin, and a Savage 67H shotgun involved in killing eleven high school students along with one high school teacher in Colorado. The fundamental question here, is that why are such powerful assault weapons in the hands of civilians? Most Americans are against the possession of assault weapons in the hands of the civilians. Established in 1791, The 2nd Amendment in the Bill of Rights gives citizens the right to bear arms. The founding fathers had intended for American citizens to have the right to bear arms to protect themselves from a tyrannical government regime. Which was a legitimate concern during that time period that does not uphold presently. However, throughout history the American government makes changes to the constitution as the country goes through economic expansion and technological progress. A fine example is the 1965 voting act, which outlawed discriminatory voting. It was indeed a necessary and important act implemented to uphold the ideal of equality among all American citizens. As time and circumstances change, so must the terms and conditions that govern them. Essentially, the interpretation of the constitution must...
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...Industry Analysis In 1996, “Businesses and individuals spent $16-17 billion on expedited shipments within the United States” (1). Since then, shipment volumes have only risen, at a rate of “15-20% per year for the past decade” (2). Companies in the industry provide an express delivery mail service; however, services are not limited to physical delivery. In addition, companies provide tracking and warehousing services, as well as shipment-related logistics consulting. The market is dominated by three main competitors: FedEx, UPS, and Airborne Express. Together, these three companies hold upwards of 85% of the market share. Using Porter’s five-force analysis, we can identify the illicit reasons behind the relative attractiveness of the express mail industry. Threat of New Entrants In 1995, FedEx had more than $7,600 million in assets (16). UPS and Airborne Express show similar numbers. Human assets deployed vary from company to company, “but the basic infrastructures and activities” are similar (3). In all three of the companies, the cost of fixed assets is incredibly large. The infrastructure requires massive hub facilities, airplanes, and vans, to get packages from point A to point B in short time periods. For instance, FedEx’s Superhub in Memphis had “2.4 million square feet of floor space and gates for 147 planes” (3). We can assume that such high fixed asset costs would lead the industry’s doors relatively shut to new entrants. Technology also forms a barrier...
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...Marketing Case #1: Federal Express (FEC) Situational analysis Consumer | Small packages (up to 2 lbs) must be delivered in a reliable and timely manner. Delivery confirmation would help. | Competitor | USPS (Express Mail), Emery (much bigger brand name), smaller airfreight forwarders, REA Air Express, Airlines, *local freight companies (hard to match local relationships) | Company | Courier Paks at flat rate, self-contained delivery/flight system (sustainable), People-oriented culture (employee satisfaction seems high) | Collaborators | Local storage/sorting facilities, truck drivers, salesforce, researchers (comparing Express Mail reliability) | Context | The airfreight industry is becoming cutthroat and companies are copying business models and popping up everywhere. Express mail is taking off but at a per distance and weight cost basis. | Setting the strategy Segmentation | Basic consumer (20%) , Manufacturing and distribution (17%), Advertising (8%) – Reliability is key across segments | Targeting | Businesses with lots of paper pushing and the general consumer | Positioning | Reliability, All American Jets (America’s Shipper), Flat rate package – Possible expansion into bigger courier packs | Value proposition Product | Flat rate box – We run our own airline | Place | Toll free number to call about locating local courier pack provider – You’d want couriers to keep stores of packs on their trucks to sell | Promotion | Convince customers...
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...CONTENTS I. Introduction……………………………………………………………………………….2 II. Company Overview……………………………………………………………………..3 Company Background……………………………………………………………...3 Services Offered……………………………………………………………………..4 SWOT Analysis……………………………………………………………………...5 III. Environmental Analysis………………………………………………………...……13 PESTEL Analysis…………………………………………………………………..13 Competition Analysis………………………………………………………………16 IV. Marketing Plan…………………………………………………………………………16 Marketing Goals…………………………………………………………………….16 Marketing Strategies……………………………………………………………….17 Marketing Mix……………………………………………………………………….20 Marketing Budget…………………………………………………………………..22 V. Recommendation………………………………………………………………….…..23 INTRODUCTION The competition in the business arena has been very stiff and complex. In this regard, the organization must be able to utilize a strategy and management system that will enhance the performance of the business so as to outgrow its rivals (2000; 2003). There are certain ways or techniques that can be considered in order to emerge and continue to be competitive within the market place. The marketing concept has been defined as ‘the key to achieving organizational goals’ and the marketing concept rests on ‘market focus, customer orientation, coordinated marketing and profitability’. In a profit making business the firm obviously has to try and achieve this level of customer satisfaction as a way of staying ahead of the competition and making a profit. Traditionally, marketing...
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...How does POSLAJU allow Logistics practitioners to send a parcel locally or overseas? This question basically requires us to identify and explain how the parcels are delivered to their specific destinations inside and outside of the country. PosLaju is offering a few types of services to their customers ranging from Next Day Delivery, Same Day Delivery, Time Certain Services, Borneo Economy Express and Putrajaya Express for the domestic market. For the international market, the options provided are the International Delivery, Time Certain Service Singapore, PosLaju International Premium, and Pospriority Express. We will first start to talk about domestic delivery. Domestic delivery only includes in-country deliveries. Firstly, we have to select which type of service that we want to choose. If it is an urgent parcel, then we can opt for the same day delivery where the company ensures the parcel will be delivered on the same day. If the parcel is not so urgent, we can opt for the next day delivery or other services available. The next step is to get our packages ready for delivery. The packages have to be packed only in white papers and in good manner. Any packages not up to the standard will be rejected by PosLaju. Then, we can proceed to the nearest post office to drop the packages. In the office, we will have to fill up a form to identify the receiver and the sender. Phone numbers have to be included because it is very crucial for the office to call you if something happens...
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...fourteen small jets at its disposal, FedEx today has more than 560 aircrafts – making them the largest all-cargo air fleet in the world. The total daily lift capacity of their fleet exceeds 26.5 million pounds. Within 24 hours it travels approximately 500,000 miles. With the 2.5 million miles the FedEx Express couriers log a day; it is equivalent to 100 trips around the earth. A need that already has been identified rarely provides companies with big business opportunities. The greatest opportunities arise when you detect a completely new need that your customers didn’t even recognize themselves until you offered a solution to them. That is the success story of FedEx with its overnight delivery system. The company was named “Federal Express” because of the intended associations with the word “Federal” since it expressed an interest in nationwide economic activity. Another trace to the name is the proposed contract with the Federal Reserve Bank, which the company hoped to attain at that time. Although the proposal was denied, the name “Federal Express” was chosen since Smith believed it was a particularly good one for their purposes. It draws public attention to the business and facilitates name recognition. While the ability to identify an unidentified need provides a great business opportunity, it tends to remain useless if a company fails to come up with a new and innovative way of meeting it. The delivery of a new service can be quite tricky. FedEx solved it brilliantly by its hub-and-spoke...
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... FedEx was founded in 1971 and was incorportated in October 2, 1997, is a holding company and was founded by Frederick Wallace Smith, current CEO, president & chairman of FedEx Corporation. It is an express transportation company offering fast delivery services within few business days and serving markets. The company provides a portfolio of transportation, e-commerce and business services under the FedEx Brand. The company also operates in four different segments, taking charge on series of activities, namely “FedEx Express”, “FedEx Ground”, “FedEx Freight”, and “FedEx Services”. -Location worldwide * Auckland * Bangkok * Beijing * Cebu * Christchurch * Guangzhou * Hanoi * Ho Chi Minh * Hong Kong * Jakarta * Kuala Lumpur * Manila * Melbourne * Osaka * Penang * Seoul * Shanghai * Shenzhen * Singapore * Sydney * Taipei * Tokyo -Total revenue man power -Core product & supplementary services. FedEx Ground Package System, Inc. (FedEx Ground) is a provider of small-package ground delivery service. FedEx Ground provides day-certain service to every business address in the United States and Canada. FedEx Freight Inc (FedEx Freight) is a provider of less-than-truckload...
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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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...FED EX and UPS Airfreight Industry Analysis 1. During the 1980s, the air express industry was a medium to attractive industry to already be a major player in, but not a very attractive industry to try and break into. The industry can be characterized by high rivalry from competitors who compete on the same services with very little differentiation, medium power from suppliers who supply the resources necessary to run the business, high buyer power because customers can basically find an equal service from any firm in the industry, low substitution threat from other means of shipping transportation, and low threat of new entrants due to the high initial capital outlay and need of management experience. In this analysis, we will delve deeper into each of the dynamics within Porter’s 5 Forces to form an opinion of why the industry is attractive to be in and then discuss how competition greatly increased during 1988-1989. In the air express industry, where customers can ship their packages over long distances via airplane, there is high rivalry because the firms competing in the industry all do the same service. Since there is little differentiation between firms, each firm must battle for customers by either providing better or new services, integrating new competencies into their business processes, or doing business at a low price to create bigger economies to scale which will then cut down operating costs. Firms who want to compete...
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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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...Question 1 FedEx strategy for success in the marketplace is customer value proposition through operational excellence. This is supported the services portfolio it provides to its clients. This portfolio aims to “provide [its] customers with convenient, seamless access to our entire portfolio of integrated business solutions” (FedEx Corporation, 2005). Moreover, the fact that FedEx manages its business as a portfolio allows it to attain operational excellence by benchmarking practices in the different business segments and for each business segment to offer value to their own customer base as they are focus on just that market. Question 2 FedEx’s four main business segments are as follows together with 2 examples each for traceable fixed: 1. FedEx Express. Traceable fixed costs are salaries of product or service managers and depreciation cost of its transportation fleet. 2. FedEx Ground. Traceable fixed costs are salaries of its sales people selling its supply chain solutions and advertising expenses for its services 3. FedEX Freight. Traceable fixed costs are depreciation for its freight fleet and salaries of its fleet pilots. 4. FedEx Kinko’s. Traceable fixed costs are depreciation for its office and printing equipment and salaries of its personnel. Two common costs not traceable to the four segments are salary of FedEx’s CEO and CFO. Question 3 Two examples of a cost center are FedEx’s Information Technology department and its call center whereas...
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...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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...EXECUTIVE SUMMARY Federal Express is seeking the way to increase the volume of Courier Pack which has tremendous growth kpotential for the company. Their goal is to increase the Courier Pack volume from 1300 to 6000 per day. However, shipping managers are avoiding a risk of choosing unapproved carriers and Federal Express lacked marketing efforts. Therefore, to achieve the goal, I recommend (1) Federal Express to use various advertising methods such as TV, magazines, newspapers, and radio (2) to focus on benefits of using Courier Pak and (2) to give enough education about the feature of Courier Pak to executives who make decisions. ANALYSIS Value Proposition of Courier Pak Courier Pak is a viable product and has huge opportunity because first of all, considering the delivery of documents or other small items are 870,000 pieces per day, the potential market for Courier Pack is huge if the item is weighted less than 2lb. Second, the variable cost of Courier Pak is $4.25 which is less than the cost of Priority One Package, $10.60 and Standard Air Service Package, $9.21. It implies that Courier Pak is more profitable. Third, Exhibit 4 shows that Courier Pak has unfilled potential because the sales had doubled in the past year even though Courier Pak prices had been increased three times. Fourth, the average weight of Courier Pak is one pound while the average weight of Priority One and Standard Service package is about 14pounds. Taking a cargo-carrying capacity of 6200 pounds...
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