federal express Essay

1457 WordsDec 12, 20136 Pages
QUESTION 1 FedEx will not be treated by Delta airlines because FedEx itself had their own experience and established more than a decade. They have the world largest airfreight fleet, including McDonnell-Douglas MD-11s, Airbus A-300 and A-310s. The plans itself have a total daily lift capacity of more than 26.5 million pounds. From networking aspects, FedEx has established the strong networking services across world by door to door service, had employee more than 50 thousand employee around the world. It also growing fast performance with 13% increase in revenue to 39 Billion and serve covering more than 200 cities within China, FedEx had only drop-off locations domestically as of 2008. Compare to Delta airlines it just give…show more content…
Secondly, Federal Express also will lose their management control because when they sign the contract with another company, the management and controlling right is belong to that company. Sometime, the subcontracting company does not apply the standards and mission of the company because for them the profits are more important than the services provided. Thirdly, when Federal Express performed subcontracting, they will face a lot hidden cost. This is showed by when Federal Express signing a contract, the contract will cover a lot of details regarding the services provided. If there is an important content that does not included in the contract, the additional charges like legal fees and professional fees will be charged to the Federal Express. Lastly, Federal Express also wills facing threat that relate to their security and confidentiality. This is showed by all the confidential information will be transmitted to the subcontracting company because they need all this detail to more understand the company and also easy to them in making transaction. QUESTION 4 By increasing of crude oil price it will affect the Federal Express. This is because most of the services provided are using transportation like van and motorcycles so that can send the entire courier to the customers. If there is increasing of crude oil price will increase the expenses of the Federal Express. When the expenses increase, the price of services that provide to the
Open Document