Case 1: “Federal Express” Company analysis – Does Courier Pak (CP) make sense for Fed Ex FedEx’s new product Courier Pak makes sense because of its’ high profit margin and potential to generate new volume. Out of the 3 services that Fed Ex provides, CP yields the highest profit margin at 66% while Priority-One is at 55% and SAS is only at 27%. In addition to this, the company believes that it will be able to boost up sale of CP from 1300 to 6000 packages per day. This shows that CP is the most profitable and huge potential for growth.
Delivering to over 220 countries and territories, FedEx today is a big global industry with a vast network worldwide. The company that started as a laid out in an economics class today is one of the biggest mail distribution corporations known by all customers as the company that “send shipment overnight”
COMPANY OVERVIEW FedEx Corporation (FedEx) is a transportation service that offers overnight mailing services, freight services, logistics solutions, and business services. The company is one of the largest express transportation companies, delivering small packages nationwide and worldwide. It mostly operates in the US. FedEx has its main headquarters in Memphis, Tennessee and has currently employed approximately 300,000 employees in FY2014. The company-recorded revenues of $45,567 million during the financial year ended May 2014 (FY2014), an increase of 2.9% over FY2013.The operating profit the company made was $3,446 million in FY2014, an increase of 35.1% over FY2013. The net profit the company made was $2,097 million in FY2014, an increase of 34.3% over FY2013.
Furthermore, the diverse relationship that exist among It was established in 1973 and since has maintained its stance as one of the word top express delivery provider. Also, the organization structure of FedEx is flat. Flat organization structure allows the corporation to changes its structure because it is “multi-divisional” in nature (Hitt, Miller and Colella, 2005). FedEx orders direct authority to its subordinates in an impactful way. Each subsidiaries in FedEx operate exogenously thereby managing their network of service on their own without the influence of any other subordinates in the corporation. The population of the employees in the corporation which is 280,000 made the company to have a unique task culture (FedEx, n.d.). The task culture of the corporation is driven by the forces of demand and supply. The culture gives much priority to the customers and thereby they are known with an unprecedented customer-service organizational culture (McNeal,
Cost of common equity: D1 /P0 + g => ($1.75/24.84)+ 0.07799 : 14.83% Moreover, the company has 8.5 million shares outstanding and the current market price is $24.84 per share. So;
Competitors Unlevered Asset Beta The Cost of Equity is not given so to calculate it, we needed to use the Capital Asset Pricing Model (CAPM) but we were lacking the average industry beta. Meaning we had to obtain it by calculating each competitor’s unlevered beta and averaging them to obtain the overall beta.
FedEx Corp. URL:http://www.fedex.com Email:info@fedex.com [pic] Business Description: FedEx Corp., founded by Frederick W. Smith, began operations in April 1973 and was incorporated on October 2, 1997. FedEx Corp. is a publicly traded company on the New York Stock Exchange and headquartered in Memphis, TN. Fedex Corporation was formed in January 1998 with the acquisition of Caliber System Inc. The company reports in four major business segments. FedEx Express provides time-certain delivery within one to three business days serving markets that comprise more than 90 percent of the world 's gross domestic product. FedEx Ground provides low-cost, day-certain service to every business address in the United States, Canada and Puerto Rico
0.86 / (1 + (0.923)(1-0.4) = 0.5534 The Industry average is simply the average of all the firms listed. Once we have the Asset Beta, we can calculate the Equity beta using the following formula
"FedEx Corporation will produce superior financial returns for its shareowners by providing high value-added logistics, transportation and related business services through focused operating
It is a company with revenue of 52.5 M in 2005 with growth 3 % more than 2004.
Introduction FedEx is a worldwide shipping and solutions corporation that provides services for: Time-sensitive delivers to all of the U.S., logistics solution and business support services. FedEx operates through four divisions: FedEx Ground, FedEx Freight, FedEx Services, and FedEx Express.. FedEx Ground provides services in the U.S and
Introduction 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)
As the acquisitions grew and FedEx diversified its operations, FedEx Corporation was formed in January 1998, after the acquisition of Caliber system Inc. The subsidiary companies of the acquired Caliber Systems and Federal Express composed the original FDX Corp, which was later renamed to FedEx Corp. Today 's FedEx is led by FedEx Corporation, which provides strategic direction and consolidated financial reporting for the operating companies that compete collectively under the FedEx name
When it comes to strategy, FedEx has done a great job of staying on top in the market place after all these years. FedEx has built a very powerful empire over the last decade, insuring customers with different global delivery services. Different companies have different strategies that work with their company to reach a specific goal, at FedEx the main strategy for success would be customer service. Customer service would have to be the number one strategy FedEx is mostly concerned with and constantly researching new ways to make it easier and more convenient for customers to deliver packages across the world. To help accommodate customers, FedEx has established online databases to ensure customers of package delivery; customers are able to track packages from the convenience of their homes or offices. Something else that FedEx has established are flights, and freights for those international customers, they have also improved services to and from all over Europe as well as Asia, in
Case 1: How FedEx Works: Enterprise System 1. Question 1: List the business processes displayed in the video. 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: