What this case is 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
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Finance VII 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
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industry: Federal Express Corporation (FedEx) and United Parcel Service of America, Inc. (UPS). Studying FedEx, UPS and their competitive relationship gives a good insight for the companies' and industry's future. The two companies have different strategic goals and are operating in the same industry but in different main markets: FedEx is working on "producing outstanding financial returns" and focuses on the profitability of overnight air market whereas UPS is looking for "earning reasonable profit"
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Starting with the End in Sight: Integrating Finance After a Merger 2 When two companies merge, integrating their Finance functions is a major imperative. Variations in financial standards and procedures can prevent the merged entity’s Finance function from effective daily operations, impacting both internal and external stakeholders. Integration of this key function is also time-sensitive: the entity’s leaders, not to mention investors, demand consolidated financial statements, earnings and
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the Us began in mid Feb both UPS and FedEx stock began a steady incline. Fedex had the largest share of the Chinese market with 11 weekly flights, almost twice UPS with 6 weekly flights, and served 220 Chinese cities. Their volumes in China had grown more than 50% bt 2003 and 2004. FedEx had the reputation of being innovative, and an operational leader, whereas UPS was know as the industry follower. UPS had problems with unionization, and FedEx did not. FedEx set a goal of producing “superior
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The Success of FedEx vs. United Parcel Service (UPS) Executive Summary In today’s ever advancing world, shipping services are an essential part of our everyday lives. The two largest companies’ in the shipping industry today are Federal Express Corporation (FedEx) and the United Parcel Service (UPS). FedEx is an international company that believes in quality customer service. With its consistently high quality and innovative services, FedEx has achieved a relatively high market share in
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Introduction There is no doubt that FedEx Freight is a leading U.S. provider of less-than-truckload (LTL) freight services. It is known for exceptional service, reliability and on-time performance. (History of FedEx Operating Companies About FedEx) With the rapid rise of virtually instantaneous electronic mail, some wondered if FedEx overnight mail delivery was as important as it was in the past. Margaritis pointed out that the company received only 9.3 percent of its revenue from overnight express
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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
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important. Taking the consideration of the representative and the using for reference for other industries, FedEx is chosen as the case study. FedEx, one of the world’s biggest express transportation and logistics companies, has been used many times as an excellent case to help people learn strategy management and acquire experience. It was founded in 1973. With the development of the company, FedEx transferred itself from a traditional express transportation company to a technical global logistics company
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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
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