Expanding globally is a major decision that requires a lot of a company. Before deciding to expand into a global market, the management team should first ensure that the company is ready for the move. It is very important that the company has the financial managers to identify and review the economic variables that are associated with the targeted company. Economic variables are used by many analyses to help identify the health and strength of a selected country’s economy. In this assignment, I will discuss the important economic variables that financial managers of FedEx Corporation need to identify before expanding in Canada. The economic variables that I will be discussing are inflation rate, interest rate, consumer price index (CPI), unemployment rate, and exchange rate. The first economic indicator that I will be discuss is the inflation rate. The rate that price of products and services steadily increases is the inflation rate. The reason that the financial managers of FedEx should be aware of the inflation rate of Canada is the fact that higher inflation rates has an impact on the buying power of the consumers. As the prices of products are increased due to inflation, consumers may become more reluctant to spend their money. Also, the company may become victim of the inflation rate directly. FedEx may see an increase in expenses if they company decides to purchase products locally and in utility bills. The second economic variable that I will be discuss is the
Pay Less." brand guarantee. The Canadian economy keeps on growing, headed by numerous produce and wholesale exchanges 2011. An alternate variable that would influence the outside environment of Target is the US financial development; the fast or moderate development may have a positive or negative effect on the business.
The $45billion US domestic delivery market could be categorized into 2 segments. These consisted of letters weighing 0 to 2
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
Canadian businesses and governments have been constantly working on increasing their global market, by enforcing more supportive programs and effective policies. Funding Canadian organizations to enter the international market. The government has announced various support programs with the intentions to improve support such as EDC helping canadian companies sell beyond Canada’s borders and BDC which support small and medium-sized businesses in all industries and
Yes, FedEx has a right to impose a reasonable grooming policy based on customer reactions to personnel appearance, but they must take into consideration Title VII of the Civil Rights Act of 1964, which explains what an ethical dress policy is for employers with up to 15 employees. Although FedEx has the right to impose a grooming policy, they must remember not to cross the line when it comes to religious beliefs as stated in Title VII of the Civil Rights Act.
1. Give examples of needs, wants, and demands that FedEx customers demonstrate, differentiating these three concepts.
FedEx’s external environment both positively and negatively affects the organizations operations. Their external environment consists of government, weather, and the economy. FedEx does not have a very large external environment because their operations are not affect by many outside sources.
My organization is FedEx. This company operates in the logistics sector and is based in Memphis. There are numerous regional subsidiaries and local partners that are part of the organization structure and help the company to operate around the world. There are multiple related business units from office services to customs clearance and ground shipments.
DHL 31%, USPS 8%, FedEx 27%, and Amazon 3%. From these numbers Amazon is a very small player in the shipping department. Every competitor, expect DHL, are currently shipping the excess freight that Amazon cannot maintain. With Amazon 's move to acquire more of the market, these competitors need to be on the lookout because portions of their market share can be taken away. These major shipping firms only provide shipping services not offering household products like Amazon. With Amazon starting by semi-supplementing their shipping avenues, Amazon has the potential to grow even larger. The market cap numbers are not a good basis to judge market share on since FedEx and UPS have the majority of the market in the shipping industry. FedEx and UPS are the major competitors against Amazon and its new shipping department. FedEx and UPS had the most recent annual net income of $50.3 billion and $58.3 billion respectively. They represent the majority of packages delivery from individuals, businesses, and online retailers.
FedEx is a logistical service company specialized in transportation, e-commerce and business services. The success of FedEx lies on an efficient information system. The business process is as follows:
FedEx was first established in 1973 as a logistic company with the name Federal Express that be created by founder and first CEO Frederick W Smith. The Headquarters is in Memphis, Tennessee in the US. The company became well known for its fast and reliable delivery service around the world. On its first night of operation FedEx delivered 186 bundles to 25 urban locations in the US with only 389 employees and a 15 Dassault Falcon aircraft. In 1980 FedEx purchased a system for live updates on the packages. In this system, FedEx drivers share the current locations from the trucks to provide updates of the packages to the customers. This information was sent to a central computer of FedEx then the company improved the update system by introducing FedEx.com webpage. This webpage allowed the tracking data to be easily accessible. However, recently, FedEx uses Savvy bundle for packing and tracking the products across couriers. (Baldwin, 2016)
My company is FedEx. The company's stated mission, as per its website (2013) is that it "will produce superior financial returns for shareowners by providing high value-added logistics, transportation and related business services through focused operating companies." This mission statement highlights the following stakeholders: the shareholders and the customers. A further stakeholder not mentioned but critical to FedEx is the company's employees. For example, an often-cited maxim at FedEx is People-Service-Profit, highlighting that it is the people who deliver the value-added for the customers, and that this is how FedEx delivers profits. The company also mentions its partners as key stakeholders, and there will be the usual tangential stakeholders like governments, competitors, potential customers, and suppliers. Most of these are external stakeholders the internal ones are the employees and the shareholders. All managers, even senior managers, are employees and most are shareholders as well.
The organization is FedEx, the logistics company, and specifically its Express business unit, which is focused on overnight courier activities. The time period is generic basically the activities are repeated day over day. Product costing is important for the company, knowing that most of the cost structure is fixed costs. Normally, FedEx looks at service costs at the route level, and then the fixed costs related to the entire network that brings packages to customers around the world.
The company I decided to do my course project on was Fed-Ex. This corporation was incorporated on October 2, 1997. Fed-Ex provides many services such as, FedEx Express, FedEx Ground, FedEx Freight and FedEx services. FedEx Express offers a certain time of delivery within one-three business days. However, FedEx ground focuses on residential and business deliveries with packages weighing up to 150 pounds. Furthermore, FedEx Freight provides service to virtually all United States ZIP Codes (including Alaska and Hawaii). And finally, FedEx Services provides other companies with many sales, markets, informational technology and customer service. FedEx has ben providing their employees with many benefits until the economy went into recession.
Life Cycle Cost (LCC) is the total lifespan cost incurred by an organization in purchasing, installing, operating, maintaining, and disposing off any equipment used in daily operations of the firm. In regard to this, estimation of LCC encompasses using a particular approach in identifying and quantifying components of an LCC equation (Pehnt, 2006). The use of LCC as an assessment tool when selecting possible design alternatives results in the provision of a cost-effective solution within limits of available data. In addition, a standard LCC comprises initial and operation costs, installation and commissioning costs, energy costs as well as disposal costs among others.