...Executive summary FedEx's core strengths come from its ability to collaborate effectively between its companies. As stated on the Investor Relations section of the FedEx webpage, "FedEx Corp. is committed to producing superior financial returns for its shareowners by providing high value-added logistics, transportation, and related business services through focused operating companies that compete collectively, operate independently, and manage collaboratively." This motto is the driving force behind the FedEx competitive strategy. FedEx is not one single entity, but rather many smaller companies that “compete collectively” by standing as one under the FedEx brand. FedEx Corporation is the parent company to several subsidiary operating companies (OpCos), including FedEx Ground, FedEx Express, FedEx Freight, and FedEx Office. This organization structure allows FedEx OpCos to specialize in different shipping methods and key components of shipping and office needs, which in turn allows FedEx Corporation to dominate the shipping market. FedEx is constantly looking for ways to expand upon this specialized business model, demonstrated by the recent strategic acquisition of GENCO, one of the largest logistics companies in North America. FedEx excels by offering specialized shipping solutions that surpass the offerings of its competitors. For example, International Priority DirectDistribution is a specialized international shipping method offered by FedEx Express for palletized...
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...THE BATTLE FOR VALUE, 2004: FedEx Corp. vs. United Parcel Service, Inc. Executive Team Summary 1. Introduction a. Main facts of the case In the context of the U.S. & China agreement of liberalization of commercial cargo flights, determine which of the two companies has created more value and is in a better position to take the advantages of the new agreement. b. Most important Characteristics of the company studied in the case i. Industry: Air Delivery & Freight Services ii. Position in its industry & Main competitors 2. Answer the Questions presented at the end of the 1st session and reviewed and answered in the second session. * How have FedEx and UPS performed financially? How do we measure its financial performance? Financial performance measures that can be obtained from a firm’s financial statements consist of absolute data and financial ratios. Absolute measures such as income, net assets and equity, reveal trends and allow a company to be compared to its performance over time, while financial ratios, including return-on-assets and current ratio, adjust for scale and allow for comparisons of different-sized companies. Financial ratios are ideal to compare FedEx and UPS, since UPS has $13.5 billion more in assets and $11 billion more in revenues than FedEx. Please see Table 2 for a comparison of the most common and widely used financial ratios. UPS is outperforming FedEx in liquidity, solvency and profitability...
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...Managemengt of International Teams EM Strasbourg Xu Yuwei Oct 6, 2013 Assignment #1 International teams: What makes their success? Introduction As we all know, globolization phenomenon is an inevitable trend in modern business work. International team management is another essential part in business. People come from different countries with various culture background could connect with world. When the international team work together, they will be able to maximize the effect and explore the potential ability of company market. However, if the management of international team be ignored, they will creat a variety of communication obstacles and disturb the deployment of the enterprise. Globalization and cultural diversity turn social fields and organizations into very dynamic places. Across borders, across cultures, cross-organizational collaboration on multiple levels there are many great challenges. Language and cultural differences sometimes cause communication difficulties, and some unexpected problems sometimes also can let a person off guard. There will be trouble in any teams which will make the team work uneffectively so that we need arrangement and leadership. In a word, we need to study some successful experience about international team management and learn to overcome the difficulties and solve the problems to creat more benefits. The assignment...
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...CASE STUDY FOR FINANCIAL MANAGEMENT CASE 4: The Battle for Value, 2004: FedEx Corp. vs. United Parcel Service, Inc. VALUE CREATION AND ECONOMIC PROFIT I. OUTLOOK OF CASE 4 Case 4 mentions about the competition between two leading companies in package- delivery market. FedEx which is the largest foreign presence in China, with 11 weekly flights, serving 220 Chinese cities, so the company’s volumes in China had grown by more than 50% between 2003 and 2004. UPS which is the world’s largest package-delivery company and dominant parcel carrier in US, serving 200 cities in 2003. FedEx had virtually invented customer logistical management, and was widely perceived as innovative. Historically, UPS had reputation for being big, bureaucratic and an industry follower. Two companies have their own market, an individual characteristics, and inconclusive. Thus, not only based on the development and operation of the two companies, the analysis also relied on the special purpose financial ratios ( especially Economic Value Added (EVA), an effective measure and rapid for firm within an industry) to find which company has more competitive advantage. II. INTRODUCTION 1. FedEx corporation: [pic] FedEx, formally known as Federal Express, started delivering packages and freight on April 17, 1973. The company was...
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...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 to pickup a package. Rep could...
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...Executive Summary MGT/307 January 18, 2011 Monica Neloms Executive Summary During Team As discussion First Tennessee Bank, Hunter Fan Company, Federal Express and Parsam Technologies are the companies discussed. Points of discussion were the companies’ organizational mission, fiscal policies, competition, economy, customer demands, restructuring and globalization. Restructuring Upon discussion, Team A found that First Tennessee Bank was restructured in 1987. This was said to have been done to allow its sixteen regions to have more authority. This would allow each bank to better serve its specific communities and the customers. Team A also found that the restructuring of this organization proved to create a positive effect on First Tennessee. Today, this bank is known as one of the fifty largest bank holding companies in the United States. Similar was the restructuring of Parsam Technologies. Parsam Technologies was acquired by Harland Financial Solutions in December 2010. This acquisition will allow Parsam Technologies to become part of a large corporation and still be a leader in the industry. Hunter Fan Company has closed many of the company’s locations throughout the United States. This restructuring has allowed the company to cut operational cost and bring all areas of the business into the company’s head quarters. Hunter Fan plans to continue in the area of restructuring evaluation the positions within the corporate office and making the...
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...Federal Express Corporation Social Responsibility Strategy Prepared for: Board of Directors FedEx Corporation Prepared by: Kakish Consulting Group: Lily Kakish March 28, 2012 EXECUTIVE SUMMARY In 1994, John Elkington coined the term triple bottom line. (TBL) “As originator of the term, I have often been asked how it was conceived and born. As far as I can remember – and memory is a notoriously fallible thing – there was no single eureka! moment. Instead, in 1994 we had been looking for new language to express what we saw as an inevitable expansion of the environmental agenda that Sustainability (founded in 1987)”. (Johnelkington.com, 2004). TBL consists of the Three Ps: profit, people, and planet. These three are different and separable yet all part of the success when it comes to the “bottom line”. The 21st century companies are called for a higher standard of excellence. This level of excellence should respond to three questions: 1. Are we financially responsible? (profit) 2. Are we socially responsible with the stakeholders? (people) 3. Are we environmentally responsible? (planet) FedEx bought into this business concept before it was politically correct and was one of the corporations that pioneered its role with social responsibility and accountability. Although it is easy to assess the first of these three TBL, it is harder to measure the 2nd (people) and 3rd (planet). Never-the-less, all companies no matter their size, location, and focus should be dedicated...
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...Case #4: THE BATTLE FOR VALUE, 2004: FEDEX CORP. VS. UNITED PARCEL SERVICE, INC. Synopsis and Objectives • Set in June 2004 • To assess the financial performance of FedEx Corp. and United Parcel Service, Inc (UPS). The two firms have competed intensely for dominance of the overnight express package industry. • This case is intended for use in an introductory discussion of corporate value creation and its sources. It requires no numerical computations; rather, the tasks are to interpret the results and to reflect upon their implications. The contrasting record of the two firms affords a platform to: • Assess economic profit analysis (also known as Economic Value Added) and, more generally, the measurement of financial performance and health. The case provides a complete historical economic profit analysis for both firms, and permits comparison with other classic approaches to historical performance analysis. This comparison affords the opportunity to discuss the attributes of healthy and successful companies, and to explore the strengths and weaknesses of economic profit. Key learning points about economic profit include its dependence on the conventions of generally accepted accounting principles (GAAP) and its ignorance of strategic option value. • Evaluate the financial implications of rigorous competition and corporate transformation. Questions 1. What are the enabling and inhibiting factors facing the two firms as they...
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...FEDEX CASE 1. List the business processes displayed in the video: 1. Federal express currier picks up a package 2. Currier scans the box to electronically alter FedEx that the package is in their hands 3. Packages are brought to a hub (a large FedEx warehouse) 4. Packages are unloaded onto a conveyer belt that carries to a scanner that weighs the boxes and measures the size. This tells FedEx how much to charge the customer for shipping. 5. Packages go to a multidirectional scanner, with 40 cameras that scans and inputs the label. Labels tells the scanner where the box is being shipped 6. Any package that can not be scanned is sorted manually 7. Packages are then diverted automatically (or manually for packages that are not able to be scanned) and pushed down slides to their respective locations to be put into cargo containers 8. Each cargo container is weighed and then loaded onto a plane 9. FedEx air control center routes the plane and monitors flying conditions 10. Packages are still being monitored here 11. Plane lands, packages go to another sorting center 12. Packages are put on a truck and delivered to your door 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? The information systems shown in the video are: * Management Information System (MIS): The FedEx system is set up to track packages at each point in their delivery process...
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...Fedex AnnuAl RepoRt 2011 poweRFul, lonG-teRM tRendS in GlobAl tRAde Revolve ARound Fedex. The global shipping arrow poinTs up We’ve reached a tipping point in how the world works. The largest economy in the world is no longer the economy of any one country — it’s the economy of global trade of goods and services. Value: $18.3 trillion in 2010. At FedEx, our job is to facilitate these transactions, the heart of commerce, by providing access — moving goods across the global supply chain. Macroeconomic trends that drive global trade continue to intensify: > Production of high-tech and high-value-added goods continues to rise. > Global sourcing and selling are increasing. > Supply chains are accelerating. > E-commerce is expanding. Manufacturing and emerging markets, including China, India and Brazil, are leading the charge. Thanks to the disciplined execution of our long-term strategies, FedEx is at the center of these powerful global trends: 2-2.5x 50% 30% The percentage of global GDP represented by total trade in goods and services in 2010, which continues to grow.2 The amount by which we expect global trade to outpace projected annual global GDP growth of 3.3% from 2010 to 2015. The percentage emerging markets are expected to contribute to global GDP by 2013.1 4x The amount the international express market is expected to grow as part of the total air cargo market — from 3.7% in 1991 to 17.7% in 2015.3 Scan to see videos and more. fedex.com/annualreport 2011/mobile 1...
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...B2B Marketing Plan of FedEx 1.0 Introduction According to Hutt and Speh (2004), Contemporary businesses operate in an environment that gets fiercely competitive by the day. To deal with this intensity of rivalry the typology of business networks has experienced extensive changes. One of the marked changes that businesses are undertaking is a change in marketing techniques. In an era where switching costs are low making customer loyalty to be shaky, old marketing strategies are no longer efficient. To attain a competitive edge and to attain sustainability, companies are being forced into the aspect of not only concentrating on current customers but actively looking for prospective customers. These changes in organizational buying and selling behaviour can be explained by the concept of B2B marketing. The goal of this paper therefore is to write an managerial report on B2B communication at FedEx. To achieve this goal it is imperative by understanding the fundamentals of B2B marketing. The second section will be a brief overview of the company in question, FedEx. This will be followed by the crux of the report an exploration of B2B marketing at FedEx. The paper will then be concluded by a summary of the major points covered. 2.0 Fundamentals of B2B Marketing Business to business branding hereinafter referred to simply as B2B is a marketing terminology that is used to describe a multi layered commercial strategy between businesses. Biemans (2010) explains that B2B...
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...The corporate strategy of fedex corporation Executive Summary This analysis of the corporate strategy of FedEx Corporation relates to three specific issues in the corporate strategy case. The first issue is a critical analysis of the global express transportation and logistics industry. The second issue discusses about the mergers and acquisitions in transportation and logistics industry. The final issue is a critical review of the performance of FedEx in the events leading to the January 2000 reorganisation. In the first section, the global express transportation and logistics industry is an attractive sector based on the fundamentals of the sector given in the five forces analysis using Porter's framework. There are large barriers to entry, there are minimal substitutes that exist, industry is relatively disciplined, and the power of buyers and suppliers are mixed. FedEx is well placed in the sector given its core competencies and dynamic capabilities relating to its management and the functional areas of marketing, human resources and information technology and systems. In the second section, gives a brief knowledge about the benefits and limitations of merger and acquisition strategies in this industry. This also describes how effective was the 1998 Caliber System acquisition and where did it led the company do in its further years. In the final section, it is noted that FedEx performed poorly within its sector and given its capabilities, the firm was expected to have...
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...Blue Sky University Student Research FedEx Corporation Tanan Jargalsaikhan Table of Contents Key Information 3 Business Description 4 Industry Overview and Competitive Positioning 5 Porter’s Five Forces model 5 SWOT analysis 7 Financial Analysis 8 Cash Flows 8 Common size statements 9 Evaluating Internal Liquidity 11 Evaluating Operating Performance 12 Valuation 14 Dividend Discount Model 14 Present Value of Free Cash Flow to Equity 15 Present Value of Operating Free Cash Flow 17 Relative Valuation 19 Investment Risks 20 Investment Summary 21 Conclusion 22 * Key Information Company name: FEDEX CORPORATION Exchange: New York Stock Exchange (NYSE) Ticker symbol: FDX Sector: Services Industry: Air Delivery and Freight Services Price: $166.11 (as of 30 January, 2015) Price Target: $189.13 Recommendation: HOLD / BUY * * Business Description FedEx Corporations (“FedEx”) is one of the largest operating delivery service companies within the United States as well as globally. The company was first founded in 1971 and today operates in over 220 countries with its headquarters based in Memphis, Tennessee. The company has over 300,000 employees worldwide. The revenue for 2014 was $45,6 billion and the net income was $2,1 billion. The firm is the prevailing leader within the delivery and freight service industry. This is substantiated through sales, profit, and growth. FedEx’s revenue is one...
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...Professional Summary Multi-faceted, reliable and efficient motivated professional, with 10 years of experience in sales, communications, and customer service. All positons occupied by individual companies and supporting managers to improve the internal operation of work history and performance. Comfortability with working in large or small social settings, and very adjustable to surroundings and change of pace situations due to diverse work history environments. Highlights: * * Microsoft Word Office * Microsoft PowerPoint * Microsoft Excel * Data Entry, 10 Key, Alpha-Numeric * Customer Service * Communications * Operator of Machinery * Material Handling * QuickBooks * Verbal Negotiation * PeopleSoft, SAP, Oracle, Adobe, Kronos * Account Organizing * Office Assistance * Journalism * Modern Digital Communication Efficiency * Microsoft Outlook & Access * Team and Self Oriented * Spreadsheet Management * Reporting Analysis * Labor Relations * Modern Computer Savvy * Energetic work attitude * Sales Comprehension * People friendly Experience Material Handler 05/2011-Current (FedEx) ...
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...the problem; as well as, solutions. Table of Contents Introduction 3 Company Background 4 Business Problems 6 Benefits of Solution 9 Solutions 10 Alternatives 12 Vendor 13 Technical Description 14 Process Changes 16 Selection 18 Evaluate each alternative 19 Pick the best solution 20 High-Level Implementation Plan 21 Conclusion w/ summary 22 Table of Figures 23 Works Cited 24 Introduction The package shipping industry provides a critical global service to the worldwide corporate, private, and residential sectors. With the advent of E-commerce emergence over the past few decades, the internet has provided businesses and individuals with availability and access to warehouses of items at the touch of a button. These items must still be packaged and shipped from one destination to the next. Companies in the shipping industry like FedEx provide this service of assuring that customer selection and satisfaction are at the edge of their business strategy. In keeping with their mission statement, “Customer requirements will be met in the highest quality manner appropriate to each market segment served.” (FedEx, 2015). The...
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