Using the following outline,write a 4 page paper on FedEx Express (a global comp
ID: 452096 • Letter: U
Question
Using the following outline,write a 4 page paper on FedEx Express (a global company research paper). REFERENCES::: >> AT BOTTOM :)
Introduction
1.FedEx Business Solutions
a) History and future endeavors
b) Acquisitions and mergers for growth
c) Services and supplies offered
2. Posed Challenges
a) Challenges faced
b) Strategies used to overcome challenges
Conclusion
Berman, J. (2016, January). FedEx acquisition of TNT receives unconditional approval from European Commission. Logistics Management. Online Newsletter. Retrieved from http://www.logisticsmgmt.com/article/fedex_acquisition_of_tnt_receives_unconditional_approval_from_european_comm
DePillis, L. (2014, October). How Fedex is trying to save the business model that saved it millions. The Washington Post. Retrieved from https://www.washingtonpost.com/news/storyline/wp/2014/10/23/how-fedex-is-trying-to-save-the-business-model-that-saved-it-millions/
FedEx (1995-2016). Database Source. Retrieved from http://careers.van.fedex.com/companies/
FedEx (1995-2016). Database Source. Retrieved from http://www.fedex.com/us/fedex/shippingservices/express.html
FedEx (1995-2016). Database Source. Retrieved from http://investors.fedex.com/company-overview/overview-of-company/default.aspx
Explanation / Answer
Summary FedEx is a global shipping and solutions corporation that provides services to consumers and businesses worldwide. Headquartered in Memphis, Tennessee, FedEx Corporation is the parent company that provides strategic and logistical support for a variety of operating divisions, currently known as FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. History The company, conceived as Federal Express, is the brainchild of Frederick W. Smith. While Smith was an undergraduate student at Yale, he wrote an economics term paper about the prospects of overnight delivery service in the computer age; a paper for which he reportedly received a "C".Fedex Corporation's roots trace back to 1970 when Fred Smith purchased a controlling stake in Arkansas Aviation Sales, which focused on selling and trading both new and used airplanes. Federal Express operated 14 small planes and offered service to 25 U.S. cities when it officially began operations on April 17, 1973 with the delivery of 186 packages. Smith moved the company headquarters from Little Rock, Arkansas to Memphis, Tennessee shortly thereafter due to its weather and geographic related advantages The financial crisis of 2007-2010 hit FedEx Corporation and especially its revenue leading Express division hard. Many companies looking for ways to save money stopped shipping altogether or moved to cheaper alternatives, such as ground, freight and sea shipping. FedEx Corporation announced large network capacity reductions at FedEx Express, including retiring some of its oldest and most inefficient aircraft such as the McDonnell Douglas DC-10 and the Airbus A310. FedEx also announced layoffs and work hour reductions at some of its hubs.Additionally, the company implemented temporary freezes in pay, and eliminated retirement fund matching contributions, and bonuses for employees Acquisitions and mergers for growth FedEx Corporation has invested heavily in innovation and capital over the years, but its main driver of expansion and growth has traditionally been through acquisitions. Previously, the company kept the name of its acquisitions intact but, starting in 2000, it began to leverage the power of its brand and renamed all of its various divisions under the FedEx banner.Also at the core of the company's business model is its employment structure where all drivers are classified as contract workers as opposed to full-time employees 1..00 In 1984, the firm made its first acquisition, package courier Gelco Express. Other acquisitions soon followed, including businesses in Europe and the Middle East. International expansion continued in 1985 when Federal Express established a European headquarters in Brussels, Belgium. Sales grew to $2 billion 2..00 Acquisitions in 1987 included Cansica and Island Courier Companies. The firm added to its international holdings in 1988, with the purchase of Italy's SAMIMA and three freight carriers based in Japan. Earnings grew to $188 million as sales neared the $4 billion mark. Federal Express also launched a new unit, called Business Logistics Services, which offered transportation and operations management to other businesses. 3..00 In its largest purchase to date, Federal Express paid roughly $885 million for Tiger International Inc. in 1989. Tiger operated an air cargo delivery service known as the Flying Tigers, which held runway rights in major metropolitan airports across 21 countries in Asia, Europe, and South America. The purchase allowed the firm to strengthen its airfreight services, particularly overseas, where sales nearly doubled. 4..00 By the start of the 1990s, Federal Express held 43 percent of the express transportation market, compared to the 26-percent market share of its largest rival, UPS. The firm effectively brought a price war to its close when it upped its rates for the first time in seven years. The following year, the company launched international cargo service EXPRESSfreighter and a new subsidiary known as FedEx Aeronautics Corp. In May of 1992, Federal Express shuttered its domestic operations in Italy, Germany, France, and the United Kingdom, focusing instead on shipping freight to and from Europe, rather than from one destination to another within the continent. By the end of the year, sales had grown to $7.6 billion. Express packages delivered daily averaged 1.4 million in 1993 In 1994, Federal Express changed its name to FedEx finding that customers used the term as a verb, meaning, "to send an overnight shipment In 2001, FedEx Express signed a 7-year contract to transport Express Mail and Priority Mail for the United States Postal Service. This contract allowed FedEx to place drop boxes at every USPS post office, and has recently been extended until September 2013. USPS continues to be the largest customer of FedEx Express GROWTH FedEx Corporation has invested heavily in innovation and capital over the years, but its main driver of expansion and growth has traditionally been through acquisitions. Previously, the company kept the name of its acquisitions intact but, starting in 2000, it began to leverage the power of its brand and renamed all of its various divisions under the FedEx banner.Also at the core of the company's business model is its employment structure where all drivers are classified as contract workers as opposed to full-time employees The company's flagship division, FedEx Express, is currently the worldwide leader in the express delivery and transportation market, providing nearly two- thirds of the company's revenue stream. It utilizes a global network of planes and vehicles to provide time sensitive delivery with a money-back guarantee ensuring an on-time delivery.FedEx Express is often utilized for transportation of documents and small packages that necessitate a speedy (generally same day or next day) delivery. FedEx SupplyChain and FedEx Trade Networks provide full service, end-to-end support for companies utilizing FedEx for international trade purposes. Services and supplies offered FedEx Services provides marketing, information technology, planning, and administrative services for the umbrella of FedEx units with the purpose of serving a support function to the revenue-generating transportation and delivery divisions. The exception to this is FedEx Office (formerly FedEx Kinko's), which FedEx created after acquiring Kinko's for $2.4 billion in 2004.FedEx Office provides over 1,900 brick-and-mortar locations for individuals and businesses to access the FedEx plethora of services and delivery options POSED CHALLENLENGES: Legacy delivery companies like FedEx Corp. and United Parcel Service Inc. played a huge role in the decline of the U.S. Postal Service, but it’s time for them to pay the piper--technology has brought them face-to-face with their own competitive threat: Amazon.com Inc., Uber and other startups. Mobility, brought upon by the proliferation of smartphones, apps and connected devices, has created a climate of instant gratification and given way to a fast-growing market for on-demand delivery services, such as Postmates Mitigation FedEx already operates all 33 of its ground network’s hubs in the US on Worldport’s highly automated model, with minimal handling by humans New handheld scanners for boosting FedEx’s efficiency: The scanners know the GPS co-ordinates of every address in the US and will alert drivers if they appear to be delivering in the wrong place. Such technology helps to cut down worker errors, especially among temporary staff taken on for the peak season FedEx overnight delivery service revolutionized the logistics industry. Hence, FedEx needed a new technical approach, which is the hub-and-spoke model. [5] FedEx realized the importance of information system and technology in helping them to sort through the vast amounts of deliveries each day. Speed, reliability, and customer service, the three key goals set forth by Fred Smith, combined with the continuing need to reduce operation costs, thus making application of advanced technologies essential In 1994, FedEx launched its website, www.fedex.com, which contained company information and also services. This official website provided real-time, on-line tracking information FedEx advancement of technologies had propelled competitors to improve their information system and technology as well CONCLUSION: FedEx is one of the biggest, most organized companies in the world today. It is truly a leader in the shipping industry. The organization and business practices of this company from the ground up promote and provide an atmosphere in which the company is able to prosper. From a standpoint of the potential competition that faces FedEx, the company should only worry about existing competitors, as the market is very hard for a startup to break into. The business model that is followed by FedEx currently will allow it to undercut new competitors with minimal loss and remain as one of the dominant forces in the shipping industry. Though the company has thrived and done very well, it cannot become complacent. New, innovated technologies and business practices need to continually be developed and implicated to keep the business a leader in the field. Such changes as the improvement of the security system and the complete technological upgrade of the working force will provide the company with a means by which they can remain as leader in their industry. FedEx has historically been a successful corporation, and so long as it does not sit back and refuse to adapt, it will continue to be a force for years to come
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