Fedex Analysis Essays

Fedex Analysis Essays Fedex Analysis Essay Fedex Analysis Essay TABLE OF CONTENTS EXECUTIVE SUMMARYII TABLE OF CONTENTSIII LIST OF FIGURESV LIST OF TABLESV 1INTRODUCTION1 PART 1: TRANSPORTATION AND LOGISTIC INDUSTRY2 2EXTERNAL ENVIRONMENT ANALYSIS2 2. 1TECHNOLOGICAL2 2. 2ECONOMICAL2 2. 3MARKET2 2. 4POLITICAL AND LEGAL2 2. 5ENVIRONMENTAL3 2. 6SOCIETAL3 2. 7DEMOGRAPHIC3 3INDUSTRY ENVIRONMENT ANALYSIS4 3. 1PORTER’S FIVE FORCES MODEL4 3. 1. 1Threat of new entrants (Low)4 3. 1. 2Threat of substitutes (Low – medium)5 3. 1. 3Bargaining power of buyers (High)5 3. 1. 4Bargaining power of suppliers (Medium – high)5 3. 1. 5Intensity of rivalry (High)5 4CRITICAL SUCCESS FACTOR6 4. STRONG AND TRUSTWORTHY BRAND6 4. 2ADVANCED IN IT SYSTEMS6 4. 3INTEGRATION TO CUSTOMERS SUPPLY CHAIN6 4. 4LOCATION AND ACCESSIBILITY6 PART 2: FEDEX CORPORATION7 5COMPANY ANALYSIS7 5. 1PRODUCTS AND SERVICES7 5. 2STRUCTURE7 5. 3STRATEGY7 5. 4GENERIC POSITIONING7 5. 5KEY STAKEHOLDERS8 5. 6PERFORMANCE8 5. 6. 1Marketing8 5. 6. 2Operations8 5. 6. 3Human resources8 5. 6. 4Research and development8 5. 6. 5Information Technology8 5. 6. 6Finance8 6COMPETITORS ANALYSIS10 7SWOT ANALYSIS11 7. 1STRENGTHS11 7. 2WEAKNESSES11 7. 3OPPORTUNITIES12 7. 4THREATS12 7. 5POSITIONING OF FEDEX13 8RECCOMMENDATION14 8. 1CORPORATE LEVEL14 . 2BUSINESS LEVEL15 8. 3FUNCTIONAL LEVEL15 8. 4NETWORK LEVEL16 8. 5SUGGESTED IMPLEMENTATION PLAN16 9CONCLUSION17 REFERENCES18 LIST OF FIGURES This is the complete listing of all the figures used throughout the report. FIGURE 1 ILLUSTRATES PORTERS FIVE FORCES MODEL FOR TRANSPORTATION AND LOGISTICS INDUSTRY. 3 FIGURE 2 ILLUSTRATES POSITION OF FEDEX IN SWOT. 7 LIST OF TABLES This is the complete listing of all the tables used throughout the report. TABLE 1 ILLUSTRATES IMPLEMENTATION PLAN OF SUGGESTED RECOMMENDATION13 1INTRODUCTION FedEx is the world leader in transportation and logistic industry. It was founded in 1971 as Federal Express which provides only express delivery services. Over the decades, it has transformed it self to a global logistic and supply-chain management company (Express, Ground, Freight, etc. ) through massive investment in its IT infrastructure and acquisition of Caliber systems, Inc (Figure 1) 1971 1994 Now Figure 1. FedEx Brand Transformation FedEx has always been an innovator in changing how the world works and lives. Today’s FedEx is a network of companies, worth $34 billion, offering the right mix of transportation, e-commerce and business solutions. While each company has a unique history, collectively they exhibit the â€Å"absolutely, positively† dedication to providing specialised solutions for every shipping, information and global trade needs that the world has come to expect from FedEx. But as every cloud has a silver lining, so does FedEx Corporation. Through the reading and analysis of the case study of FedEx Corp. in 2000, provided in De Wit and Meyer (2004, pp. 647-662), some recommendations have been made to address the key issues concerning the organisation, in the context of its structural transformation through e-business. : PART 1: TRANSPORTATION AND LOGISTIC INDUSTRY 2EXTERNAL ENVIRONMENT ANALYSIS 2. 1Technological The development of information technology (IT) has dramatically changed the way businesses operate in express transportation and information industry. It gives organizations the ability to share information within and between organizations, and hence, promote more time and cost effective operations which leads to shorter order-to-payment cycle and better cash flow. With the use of e-commerce in transportation and logistics, the consumer can now even track the progress of the courier at any point of time, at any given hour. 2. 2Economical The globalization of world’s economy has trigger enormous demand for transportation and logistic industry. As businesses expand itself into other countries, whether for seeking the new market or cost reduction, the transportation of goods or raw-material and management of information pertaining with them are essential. To cater to this need, as of 2000, FedEx now operates in 210 countries managing over 10 million square feet of warehouse space worldwide. Other than globalization, there are more economic factors that affect the transportation and logistics industry, for example economic rates, fuel price and economic growth. Economic rates, such as interest rate, inflation rate and currency exchange rate, and fuel price affect the price management of this industry. While economic growth affects the industry in terms of the demand of the services from customers. 2. 3Market Globalization has broadened market for all industry, from nationwide to world wide. The speed and accuracy has become the critical success factors not only for transportation and logistic company but also for their customers as well. As a result, fast and reliable service is not considered as values anymore, it becomes norm which customers expected from every transportation and logistic company. Therefore, to be competitive in this industry, companies must provide value-added-services which create great satisfaction to its customers. 2. 4Political and Legal The transportation and logistic industry is greatly affected by political stability, government policies, and regulations in each country. The deregulation and trade agreement has eliminated boundaries between countries such as U. S and Mexico, and hence, encourage transportation and logistic companies to easily establish and operate within those country. In addition, the regulations on airline and trucking industry also play vital roles on this industry because it directly impacts the core operation of industry. 2. 5Environmental Weather and climate change have great impact on transportation and logistic industry due to the fact that this industry is deeply associated with travel of airplanes, truck, freighter, and other vehicles. The ability to understand and predict weather and climate change can save company from delay, loss of its fleets, all of which is directly proportional to its reputation. 2. 6Societal Social mobility affects this industry in some way. It refers to the dollars consumers are willing to spare at the cost of time; as the most important asset in today’s cut-throat world is time. One of the most important social factors for the transportation and logistics industry is the labour part which helps the organisation carry out the day to day operations and keep the cash charts ringing. 2. 7Demographic The demographic is one external environment that affects transportation and logistics industry, especially the location of the stores; distribution centres hubs and so on. INDUSTRY ANALYSIS FedEx Corporation has been operated in the transportation and logistic industry which mainly involve in delivery, and managing and controlling of goods, information, and other resources like products. 3. 1Porter’s five forces model Figure 1 illustrates Porters five forces model for transportation and logistics industry. 3. 1. 1Threat of new entrants (Low) To be competitive in t his industry, businesses must have their own freighter, airplanes, trucks, etc. This result in very large capital investment required in order to start a business. Moreover, brand awareness is also very crucial. Without strong brand, particular company would not be able to gain trust, which is very important in this industry, from customers. For newly established company in this industry where there are already many strong players, it is not easy to create and strengthen its brand image. As a result, the entry barrier is considered very high. 3. 1. 2Threat of substitutes (Low – medium) Emergent of internet and email do reduce the necessity of express delivery of documents. There are also some moving and shipping services which target private households when they have to move aboard, or international students moving from or to their origin. But these are still in different market segment. There are still no potential alternatives which can fully replace service of FedEx. 3. 1. 3Bargaining power of buyers (High) Since there are many of companies which offer the same service as FedEx and with the increasing contribution of IT in logistics industry, buyers can easily compare prices and offers from different companies and choose the one that cheapest and most suit their needs. FedEx should provide significant service to its customers and have high differentiate products. 3. 1. 4Bargaining power of suppliers (Medium – high) The main suppliers of FedEx are fuel and other energy provider, aircraft manufacturer, and truck manufacturer. The bargaining of vehicles manufacturer is considerably medium because even though FedEx is a big organization which requires big fleet of vehicles and continuous maintenance service, but vehicle manufacturers still has other choice of buyers from various industries. 3. 1. 5Intensity of rivalry (High) The intensity of rivalry is considerably high due to the three strong competitors which are UPS, DHL, and TNT. Need more 4CRITICAL SUCCESS FACTOR 4. 1Brand The reliability and accountability is the most important factor in this industry. Even though the company can make the very low price with easy access and user friendly service, but if the company could not guaranteed the speed and accuracy of its services, customers would not take the risk. 4. 2IT systems The advancement of IT systems leads to more efficient operations which again lead to faster and more accurate services with lower cost. In present, from the comfort of ones home, they can use most of the services offered by FedEx, booking a delivery or tracking the progress of the courier and so on so forth. 4. 3Service quality By providing services which integrate into customers’ supply chain, the company built up barrier to protect its customer from its competitors, as FedEx delivers almost anything anywhere at the quickest time possible, which is not really exclusive but with the continuous innovation and creativity, it helps in customer retention. 4. 4Location and accessibility Location of hub has massive impact on the speed of services. Proper distributed hub location according to geographic and intensity of demand could leads to faster and more responsive services. The accessibility such as customers care centre or user friendly systems also promote more pre and post sales. PART 2: FEDEX CORPORATION 5COMPANY ANALYSIS 5. 1Products and services FedEx corporation start the business with express delivery services as Federal express and the transform it self in to a global logistics and supply-chain management company. At present, FedEx offers wide range services which include express delivery, business to business ground small package delivery, special express delivery, less than truck freight, integrated logistics and warehousing solutions, supply chain management solutions. 5. 2Structure FedEx has been through many transformation of its organization structure with the goal to make it easier and faster for its customer and also to improve efficiency of its operations. Currently FedEx Corporation consists of six subsidiaries which independently operate but collectively compete with its competitors. 5. 3Strategy Base on case study, FedEx has always emphasis on shear innovation, industry leadership and IT development and use it as its key competitive advantages and also use it as the tools to help its customers take advantages of international market. Moreover, FedEx is the first company in the industry which owns all transportation fleet and expands its business through acquiring more trucks and planes. 5. 4Generic positioning . 5Key stakeholders FedEx works in the B2B as well as B2C model, which makes the customers as well as the organisations that it caters to as its key stakeholders. Moreover, its employee from all subsidiaries; its suppliers, such as fuel provider and packaging suppliers, and environmental activist group also constitute a large share of stakeholders. 5. 6Performance 5. 6. 1Marketing FedEx has a strong marketing presence but need to market all of its subsidiaries to gain a bigger market share as only FedEx Express is the dominant one amongst all. It uses the print media as well as TV campaigns to attract customers as well as create awareness for its excellent supply chain systems. 5. 6. 2Operations FedEx’s operation was one of the critical issues in the company as learnt from the case study, where it does not operate efficiently as a whole company. Not only it had different operations department for each division, it also added to the operation costs to great extent, which otherwise could be minimalised by sharing the available resources. 5. 6. 3Human resources FedEx failed in utilisation of its HR as one person was assigned one work only, irrespective of their maximum capabilities. 5. 6. 4Research and development FedEx allocates excessive resources to its RD division in order to keep itself updated with the every-day increasing IT developments in logistics field. But it still stands a fair level in terms of the services offered for customers. 5. 6. 5Information Technology FedEx was the first logistic company which introduce the use of IT to the business in 1984, by using the first PC-based automated shipping system. Since then, FedEx has been always implementing and improving its IT system, from barcode labelling, websites, software, e-Business and so on. FedEx IT has become its competitive advantage for years comparing to its competitors. The information about a package is as important as the delivery of the package itself. - Frederick W. Smith (1979) 5. 6. 6Finance In 1998, FedEx was listed as a US$10 billion company and it used US$1 billion annually on IT developments plus millions more on capital expenditure. And in 1999, it spent US$1. billion on IT from US$17 billion annual revenue. On 31 May year ending sheet, the company out-performed the projections and posted record earnings on 73 percent increasing the net income to US$221 million. Financially, FedEx spent about US$100 million for the reorganization over three years in 2000. In simpler terms, companies operating income as well as net income has been going down since first quarter ending 31 August, 1999. 6COMPETITORS ANALYSIS 6. 1UPS oStrong in logistic and delivery, especially in US. oIT developed as well (spent $9 billion on IT) Formed 5 alliances in 1997 to disseminate its logistics software to e-commerce users oFormed a strategic alliance with Open Market Inc to deliver a complete Internet commerce solution oWorking with IBM and Lotus to standardize formats on the websites oShipped more than 55% of goods ordered over internet and offered over full range of logistics solutions to its customers oOnly market 1 brand UPS 6. 2DHL oStrong in logistic and delivery, especially in Europe. o1993 DHL announced a 4 year US$1. 25 billion capital spending programme aimed at investing in handling system, automation, facilities and computer technology. Launched website in 1995 o25% owned by Deutsche Post and 25% owned by Lufthansa Airlines oDominated UK market oProjected an increase in worldwide turnover of 18% to US$5. 26 billion 6. 3TNT oOnly provide express delivery service. oLaunched website in 1998 oLaunched the first global price checker service on its website that allow customers to calculate the price of sending a consignment from one place to another anywhere in the world o1999, TNT launched QuickShipper, nonstop online access to TNT entire range of distribution services SWOT ANALYSIS 7. 1Strengths Innovation and creativity. Strong and well established research and development centre for IT systems to promote more efficient operation. Very advanced â€Å"Global Operation Command Centre† which allows FedEx to prioritise hundreds of variables (eg. world event, weather patterns, and real time movement of its freighter) involved in the successful operation. Excellent reputation in the industry. Own all transportation fleets. Strong business networks in the US. 7. 2Weaknesses Historical image of the company makes customers perceive FedEx as just an express delivery service company. Complex and inefficient organization structure. There are too many part of organization that duplicates each o ther. Entirely reliant on manual labour to a great extent, which can be a prospective weakness in some circumstances Insufficient promotion of the other sectors and fields where FedEx offers its services Disproportionate branching of FedEx subsidiaries thereby increasing the operating costs which can be otherwise be reduced by sharing the resources. . 3Opportunities Government deregulation of airline industry, permitted the landing of larger freight planes, thus reducing operating cost of FedEx Deregulation of the trucking industry, which allowed FedEx to establish a regional trucking system to lower costs further on short haul trips Trade deregulation in Asia Pacific, which opened new market to FedEx, expanding globally became a priority for FedEx Technological breakthroughs and applications innovations promoted significant advances for customer ordering, package tracing and process monitoring. Rising inflation and global competition gave rise to greater pressures on businesses to minimize the costs of operation, including implementation of JIT inventory management system and created demands for speed and accuracy in all aspects of business. 7. 4Threats FedEx advantages were quickly eroding as newer technologies became more powerful, developed faster, and less expensive – more affordable for its competitors. Potential financial crisis due to too much fixed cost, such as aircrafts, vehicles and other heavy equipments. On the lines of blue ocean strategy, CHEP is a possible/prospective threat to FedEx as it explores altogether new approach in the supply chain industry. Rocketing fuel prices which increase the transporting cost to sky-end. 7. 5Positioning of FedEx Figure 2 illustrates position of FedEx in SWOT. Base on the SWOT analysis, even though FedEx has many strong points but its historical brand image has put limit on almost all of its strength. Due to this constraint, it is known only as Express Delivery Company. As a result, FedEx is currently located in weaknesses-opportunities quadrant. If FedEx could widen the perception of its current and potential customers, and fully utilize its own strength to pursue its opportunities, it would be one of the strongest in its industry. 8RECCOMMENDATION 8. 1Corporate level Get slim: FedEx could shrink down its structure by integrating some division of its subsidiaries together to reduce cost and time caused by duplication of works. And by doing so, it would encourage lateral flow of information between each business unit. And as a result, its operations would be more efficient which leads to more flexible profit margin and more customers’ satisfaction. Add pic Acquire CHEP: CHEP is a global leader in pallet and container pooling services. It is not actually a logistics company. It provide and manage, returnable and reusable supply chain packaging solutions (such as pallets and containers) to help customers to store, protect and move their products through the supply chain in a cost-effective, safe and environmentally sound way. By acquiring CHEP, FedEx will benefit from immediate horizontal expansion of its company and also its customer base. Moreover, acquisition of CHEP will also allow FedEx to integrate more into its customers supply chain and hence create strong barrier from its competitors and substitutes. Take serious concern on environment: Due to the fact that the nature of FedEx businesses required extensive amount of transportation activities which results in largely emission of green house gas that create global warming effect. Therefore, in order to get strong support from community and environmental activist such as Greenpeace, FedEx should then come up with the environmental concern vision to make its fleet cleaner and be more environmental friendly. This could be done by modifying its fleet or support or joint-research with any car company or institute to develop an alternative cleaner power source. Moreover it could establish its own manufacturing plant for shipment package and protection (such as cardboard boxes, paper envelope, bubble wrap, shredded paper) by emphasis on recycle of material. 8. 2Business level Promote brand awareness of all FedEx subsidiaries: Now FedEx is struggling with its historic image which narrows customers’ perception to FedEx as only an express delivery company. To deal with this problem, FedEx should promote all of its services by strong marketing campaign. This could be done by advertisements in television, its website, or major video clip website such as Youtube. Alternatively FedEx could collaborate with 20th Century Fox and DreamWorks Picture to create a film, which represent all the of its services, as it was done before in â€Å"Cast Away†, 2000. 8. 3Functional level Developing and training for multi-task oriented employees: In order to successfully shrink down company structure as proposed before in corporate level recommendation, FedEx should develop a training program for its employee to be multi-task oriented. By doing so, FedEx encourage its staffs to be able to work in more than one job. This does not means that FedEx should overworks its staff, but it should be able to rotate its staff around for different roles such that one staff could delivery a package to customers and in the same time pick up another couple of packages which one suppose to be sent by ground and another one by express air. Create strong marketing division FedEx should establish a separate marketing division which in charge in creating strong marketing strategy for all of its subsidiaries. FedEx should allocate some portion of budget from its research and development to its marketing division in order to support strong marketing strategy which is very vital for creating brand awareness for all of its subsidiaries. 8. 4Network level Alliance with companies in IT industry: The research development and advance in IT systems are one of FedEx competency. But with too high budget allocation, this could cause adverse effect to the company. FedEx should make strategic alliance with IT systems company such as IBM or HP in order to reduce their cost of operation. 8. 5Suggested implementation plan Table 1 illustrates implementation plan of suggested recommendation

Fedex Analysis Essays

Fedex Analysis Essays Fedex Analysis Essay Fedex Analysis Essay TABLE OF CONTENTS EXECUTIVE SUMMARYII TABLE OF CONTENTSIII LIST OF FIGURESV LIST OF TABLESV 1INTRODUCTION1 PART 1: TRANSPORTATION AND LOGISTIC INDUSTRY2 2EXTERNAL ENVIRONMENT ANALYSIS2 2. 1TECHNOLOGICAL2 2. 2ECONOMICAL2 2. 3MARKET2 2. 4POLITICAL AND LEGAL2 2. 5ENVIRONMENTAL3 2. 6SOCIETAL3 2. 7DEMOGRAPHIC3 3INDUSTRY ENVIRONMENT ANALYSIS4 3. 1PORTER’S FIVE FORCES MODEL4 3. 1. 1Threat of new entrants (Low)4 3. 1. 2Threat of substitutes (Low – medium)5 3. 1. 3Bargaining power of buyers (High)5 3. 1. 4Bargaining power of suppliers (Medium – high)5 3. 1. 5Intensity of rivalry (High)5 4CRITICAL SUCCESS FACTOR6 4. STRONG AND TRUSTWORTHY BRAND6 4. 2ADVANCED IN IT SYSTEMS6 4. 3INTEGRATION TO CUSTOMERS SUPPLY CHAIN6 4. 4LOCATION AND ACCESSIBILITY6 PART 2: FEDEX CORPORATION7 5COMPANY ANALYSIS7 5. 1PRODUCTS AND SERVICES7 5. 2STRUCTURE7 5. 3STRATEGY7 5. 4GENERIC POSITIONING7 5. 5KEY STAKEHOLDERS8 5. 6PERFORMANCE8 5. 6. 1Marketing8 5. 6. 2Operations8 5. 6. 3Human resources8 5. 6. 4Research and development8 5. 6. 5Information Technology8 5. 6. 6Finance8 6COMPETITORS ANALYSIS10 7SWOT ANALYSIS11 7. 1STRENGTHS11 7. 2WEAKNESSES11 7. 3OPPORTUNITIES12 7. 4THREATS12 7. 5POSITIONING OF FEDEX13 8RECCOMMENDATION14 8. 1CORPORATE LEVEL14 . 2BUSINESS LEVEL15 8. 3FUNCTIONAL LEVEL15 8. 4NETWORK LEVEL16 8. 5SUGGESTED IMPLEMENTATION PLAN16 9CONCLUSION17 REFERENCES18 LIST OF FIGURES This is the complete listing of all the figures used throughout the report. FIGURE 1 ILLUSTRATES PORTERS FIVE FORCES MODEL FOR TRANSPORTATION AND LOGISTICS INDUSTRY. 3 FIGURE 2 ILLUSTRATES POSITION OF FEDEX IN SWOT. 7 LIST OF TABLES This is the complete listing of all the tables used throughout the report. TABLE 1 ILLUSTRATES IMPLEMENTATION PLAN OF SUGGESTED RECOMMENDATION13 1INTRODUCTION FedEx is the world leader in transportation and logistic industry. It was founded in 1971 as Federal Express which provides only express delivery services. Over the decades, it has transformed it self to a global logistic and supply-chain management company (Express, Ground, Freight, etc. ) through massive investment in its IT infrastructure and acquisition of Caliber systems, Inc (Figure 1) 1971 1994 Now Figure 1. FedEx Brand Transformation FedEx has always been an innovator in changing how the world works and lives. Today’s FedEx is a network of companies, worth $34 billion, offering the right mix of transportation, e-commerce and business solutions. While each company has a unique history, collectively they exhibit the â€Å"absolutely, positively† dedication to providing specialised solutions for every shipping, information and global trade needs that the world has come to expect from FedEx. But as every cloud has a silver lining, so does FedEx Corporation. Through the reading and analysis of the case study of FedEx Corp. in 2000, provided in De Wit and Meyer (2004, pp. 647-662), some recommendations have been made to address the key issues concerning the organisation, in the context of its structural transformation through e-business. : PART 1: TRANSPORTATION AND LOGISTIC INDUSTRY 2EXTERNAL ENVIRONMENT ANALYSIS 2. 1Technological The development of information technology (IT) has dramatically changed the way businesses operate in express transportation and information industry. It gives organizations the ability to share information within and between organizations, and hence, promote more time and cost effective operations which leads to shorter order-to-payment cycle and better cash flow. With the use of e-commerce in transportation and logistics, the consumer can now even track the progress of the courier at any point of time, at any given hour. 2. 2Economical The globalization of world’s economy has trigger enormous demand for transportation and logistic industry. As businesses expand itself into other countries, whether for seeking the new market or cost reduction, the transportation of goods or raw-material and management of information pertaining with them are essential. To cater to this need, as of 2000, FedEx now operates in 210 countries managing over 10 million square feet of warehouse space worldwide. Other than globalization, there are more economic factors that affect the transportation and logistics industry, for example economic rates, fuel price and economic growth. Economic rates, such as interest rate, inflation rate and currency exchange rate, and fuel price affect the price management of this industry. While economic growth affects the industry in terms of the demand of the services from customers. 2. 3Market Globalization has broadened market for all industry, from nationwide to world wide. The speed and accuracy has become the critical success factors not only for transportation and logistic company but also for their customers as well. As a result, fast and reliable service is not considered as values anymore, it becomes norm which customers expected from every transportation and logistic company. Therefore, to be competitive in this industry, companies must provide value-added-services which create great satisfaction to its customers. 2. 4Political and Legal The transportation and logistic industry is greatly affected by political stability, government policies, and regulations in each country. The deregulation and trade agreement has eliminated boundaries between countries such as U. S and Mexico, and hence, encourage transportation and logistic companies to easily establish and operate within those country. In addition, the regulations on airline and trucking industry also play vital roles on this industry because it directly impacts the core operation of industry. 2. 5Environmental Weather and climate change have great impact on transportation and logistic industry due to the fact that this industry is deeply associated with travel of airplanes, truck, freighter, and other vehicles. The ability to understand and predict weather and climate change can save company from delay, loss of its fleets, all of which is directly proportional to its reputation. 2. 6Societal Social mobility affects this industry in some way. It refers to the dollars consumers are willing to spare at the cost of time; as the most important asset in today’s cut-throat world is time. One of the most important social factors for the transportation and logistics industry is the labour part which helps the organisation carry out the day to day operations and keep the cash charts ringing. 2. 7Demographic The demographic is one external environment that affects transportation and logistics industry, especially the location of the stores; distribution centres hubs and so on. INDUSTRY ANALYSIS FedEx Corporation has been operated in the transportation and logistic industry which mainly involve in delivery, and managing and controlling of goods, information, and other resources like products. 3. 1Porter’s five forces model Figure 1 illustrates Porters five forces model for transportation and logistics industry. 3. 1. 1Threat of new entrants (Low) To be competitive in t his industry, businesses must have their own freighter, airplanes, trucks, etc. This result in very large capital investment required in order to start a business. Moreover, brand awareness is also very crucial. Without strong brand, particular company would not be able to gain trust, which is very important in this industry, from customers. For newly established company in this industry where there are already many strong players, it is not easy to create and strengthen its brand image. As a result, the entry barrier is considered very high. 3. 1. 2Threat of substitutes (Low – medium) Emergent of internet and email do reduce the necessity of express delivery of documents. There are also some moving and shipping services which target private households when they have to move aboard, or international students moving from or to their origin. But these are still in different market segment. There are still no potential alternatives which can fully replace service of FedEx. 3. 1. 3Bargaining power of buyers (High) Since there are many of companies which offer the same service as FedEx and with the increasing contribution of IT in logistics industry, buyers can easily compare prices and offers from different companies and choose the one that cheapest and most suit their needs. FedEx should provide significant service to its customers and have high differentiate products. 3. 1. 4Bargaining power of suppliers (Medium – high) The main suppliers of FedEx are fuel and other energy provider, aircraft manufacturer, and truck manufacturer. The bargaining of vehicles manufacturer is considerably medium because even though FedEx is a big organization which requires big fleet of vehicles and continuous maintenance service, but vehicle manufacturers still has other choice of buyers from various industries. 3. 1. 5Intensity of rivalry (High) The intensity of rivalry is considerably high due to the three strong competitors which are UPS, DHL, and TNT. Need more 4CRITICAL SUCCESS FACTOR 4. 1Brand The reliability and accountability is the most important factor in this industry. Even though the company can make the very low price with easy access and user friendly service, but if the company could not guaranteed the speed and accuracy of its services, customers would not take the risk. 4. 2IT systems The advancement of IT systems leads to more efficient operations which again lead to faster and more accurate services with lower cost. In present, from the comfort of ones home, they can use most of the services offered by FedEx, booking a delivery or tracking the progress of the courier and so on so forth. 4. 3Service quality By providing services which integrate into customers’ supply chain, the company built up barrier to protect its customer from its competitors, as FedEx delivers almost anything anywhere at the quickest time possible, which is not really exclusive but with the continuous innovation and creativity, it helps in customer retention. 4. 4Location and accessibility Location of hub has massive impact on the speed of services. Proper distributed hub location according to geographic and intensity of demand could leads to faster and more responsive services. The accessibility such as customers care centre or user friendly systems also promote more pre and post sales. PART 2: FEDEX CORPORATION 5COMPANY ANALYSIS 5. 1Products and services FedEx corporation start the business with express delivery services as Federal express and the transform it self in to a global logistics and supply-chain management company. At present, FedEx offers wide range services which include express delivery, business to business ground small package delivery, special express delivery, less than truck freight, integrated logistics and warehousing solutions, supply chain management solutions. 5. 2Structure FedEx has been through many transformation of its organization structure with the goal to make it easier and faster for its customer and also to improve efficiency of its operations. Currently FedEx Corporation consists of six subsidiaries which independently operate but collectively compete with its competitors. 5. 3Strategy Base on case study, FedEx has always emphasis on shear innovation, industry leadership and IT development and use it as its key competitive advantages and also use it as the tools to help its customers take advantages of international market. Moreover, FedEx is the first company in the industry which owns all transportation fleet and expands its business through acquiring more trucks and planes. 5. 4Generic positioning . 5Key stakeholders FedEx works in the B2B as well as B2C model, which makes the customers as well as the organisations that it caters to as its key stakeholders. Moreover, its employee from all subsidiaries; its suppliers, such as fuel provider and packaging suppliers, and environmental activist group also constitute a large share of stakeholders. 5. 6Performance 5. 6. 1Marketing FedEx has a strong marketing presence but need to market all of its subsidiaries to gain a bigger market share as only FedEx Express is the dominant one amongst all. It uses the print media as well as TV campaigns to attract customers as well as create awareness for its excellent supply chain systems. 5. 6. 2Operations FedEx’s operation was one of the critical issues in the company as learnt from the case study, where it does not operate efficiently as a whole company. Not only it had different operations department for each division, it also added to the operation costs to great extent, which otherwise could be minimalised by sharing the available resources. 5. 6. 3Human resources FedEx failed in utilisation of its HR as one person was assigned one work only, irrespective of their maximum capabilities. 5. 6. 4Research and development FedEx allocates excessive resources to its RD division in order to keep itself updated with the every-day increasing IT developments in logistics field. But it still stands a fair level in terms of the services offered for customers. 5. 6. 5Information Technology FedEx was the first logistic company which introduce the use of IT to the business in 1984, by using the first PC-based automated shipping system. Since then, FedEx has been always implementing and improving its IT system, from barcode labelling, websites, software, e-Business and so on. FedEx IT has become its competitive advantage for years comparing to its competitors. The information about a package is as important as the delivery of the package itself. - Frederick W. Smith (1979) 5. 6. 6Finance In 1998, FedEx was listed as a US$10 billion company and it used US$1 billion annually on IT developments plus millions more on capital expenditure. And in 1999, it spent US$1. billion on IT from US$17 billion annual revenue. On 31 May year ending sheet, the company out-performed the projections and posted record earnings on 73 percent increasing the net income to US$221 million. Financially, FedEx spent about US$100 million for the reorganization over three years in 2000. In simpler terms, companies operating income as well as net income has been going down since first quarter ending 31 August, 1999. 6COMPETITORS ANALYSIS 6. 1UPS oStrong in logistic and delivery, especially in US. oIT developed as well (spent $9 billion on IT) Formed 5 alliances in 1997 to disseminate its logistics software to e-commerce users oFormed a strategic alliance with Open Market Inc to deliver a complete Internet commerce solution oWorking with IBM and Lotus to standardize formats on the websites oShipped more than 55% of goods ordered over internet and offered over full range of logistics solutions to its customers oOnly market 1 brand UPS 6. 2DHL oStrong in logistic and delivery, especially in Europe. o1993 DHL announced a 4 year US$1. 25 billion capital spending programme aimed at investing in handling system, automation, facilities and computer technology. Launched website in 1995 o25% owned by Deutsche Post and 25% owned by Lufthansa Airlines oDominated UK market oProjected an increase in worldwide turnover of 18% to US$5. 26 billion 6. 3TNT oOnly provide express delivery service. oLaunched website in 1998 oLaunched the first global price checker service on its website that allow customers to calculate the price of sending a consignment from one place to another anywhere in the world o1999, TNT launched QuickShipper, nonstop online access to TNT entire range of distribution services SWOT ANALYSIS 7. 1Strengths Innovation and creativity. Strong and well established research and development centre for IT systems to promote more efficient operation. Very advanced â€Å"Global Operation Command Centre† which allows FedEx to prioritise hundreds of variables (eg. world event, weather patterns, and real time movement of its freighter) involved in the successful operation. Excellent reputation in the industry. Own all transportation fleets. Strong business networks in the US. 7. 2Weaknesses Historical image of the company makes customers perceive FedEx as just an express delivery service company. Complex and inefficient organization structure. There are too many part of organization that duplicates each o ther. Entirely reliant on manual labour to a great extent, which can be a prospective weakness in some circumstances Insufficient promotion of the other sectors and fields where FedEx offers its services Disproportionate branching of FedEx subsidiaries thereby increasing the operating costs which can be otherwise be reduced by sharing the resources. . 3Opportunities Government deregulation of airline industry, permitted the landing of larger freight planes, thus reducing operating cost of FedEx Deregulation of the trucking industry, which allowed FedEx to establish a regional trucking system to lower costs further on short haul trips Trade deregulation in Asia Pacific, which opened new market to FedEx, expanding globally became a priority for FedEx Technological breakthroughs and applications innovations promoted significant advances for customer ordering, package tracing and process monitoring. Rising inflation and global competition gave rise to greater pressures on businesses to minimize the costs of operation, including implementation of JIT inventory management system and created demands for speed and accuracy in all aspects of business. 7. 4Threats FedEx advantages were quickly eroding as newer technologies became more powerful, developed faster, and less expensive – more affordable for its competitors. Potential financial crisis due to too much fixed cost, such as aircrafts, vehicles and other heavy equipments. On the lines of blue ocean strategy, CHEP is a possible/prospective threat to FedEx as it explores altogether new approach in the supply chain industry. Rocketing fuel prices which increase the transporting cost to sky-end. 7. 5Positioning of FedEx Figure 2 illustrates position of FedEx in SWOT. Base on the SWOT analysis, even though FedEx has many strong points but its historical brand image has put limit on almost all of its strength. Due to this constraint, it is known only as Express Delivery Company. As a result, FedEx is currently located in weaknesses-opportunities quadrant. If FedEx could widen the perception of its current and potential customers, and fully utilize its own strength to pursue its opportunities, it would be one of the strongest in its industry. 8RECCOMMENDATION 8. 1Corporate level Get slim: FedEx could shrink down its structure by integrating some division of its subsidiaries together to reduce cost and time caused by duplication of works. And by doing so, it would encourage lateral flow of information between each business unit. And as a result, its operations would be more efficient which leads to more flexible profit margin and more customers’ satisfaction. Add pic Acquire CHEP: CHEP is a global leader in pallet and container pooling services. It is not actually a logistics company. It provide and manage, returnable and reusable supply chain packaging solutions (such as pallets and containers) to help customers to store, protect and move their products through the supply chain in a cost-effective, safe and environmentally sound way. By acquiring CHEP, FedEx will benefit from immediate horizontal expansion of its company and also its customer base. Moreover, acquisition of CHEP will also allow FedEx to integrate more into its customers supply chain and hence create strong barrier from its competitors and substitutes. Take serious concern on environment: Due to the fact that the nature of FedEx businesses required extensive amount of transportation activities which results in largely emission of green house gas that create global warming effect. Therefore, in order to get strong support from community and environmental activist such as Greenpeace, FedEx should then come up with the environmental concern vision to make its fleet cleaner and be more environmental friendly. This could be done by modifying its fleet or support or joint-research with any car company or institute to develop an alternative cleaner power source. Moreover it could establish its own manufacturing plant for shipment package and protection (such as cardboard boxes, paper envelope, bubble wrap, shredded paper) by emphasis on recycle of material. 8. 2Business level Promote brand awareness of all FedEx subsidiaries: Now FedEx is struggling with its historic image which narrows customers’ perception to FedEx as only an express delivery company. To deal with this problem, FedEx should promote all of its services by strong marketing campaign. This could be done by advertisements in television, its website, or major video clip website such as Youtube. Alternatively FedEx could collaborate with 20th Century Fox and DreamWorks Picture to create a film, which represent all the of its services, as it was done before in â€Å"Cast Away†, 2000. 8. 3Functional level Developing and training for multi-task oriented employees: In order to successfully shrink down company structure as proposed before in corporate level recommendation, FedEx should develop a training program for its employee to be multi-task oriented. By doing so, FedEx encourage its staffs to be able to work in more than one job. This does not means that FedEx should overworks its staff, but it should be able to rotate its staff around for different roles such that one staff could delivery a package to customers and in the same time pick up another couple of packages which one suppose to be sent by ground and another one by express air. Create strong marketing division FedEx should establish a separate marketing division which in charge in creating strong marketing strategy for all of its subsidiaries. FedEx should allocate some portion of budget from its research and development to its marketing division in order to support strong marketing strategy which is very vital for creating brand awareness for all of its subsidiaries. 8. 4Network level Alliance with companies in IT industry: The research development and advance in IT systems are one of FedEx competency. But with too high budget allocation, this could cause adverse effect to the company. FedEx should make strategic alliance with IT systems company such as IBM or HP in order to reduce their cost of operation. 8. 5Suggested implementation plan Table 1 illustrates implementation plan of suggested recommendation

Fedex Analysis Essays

Fedex Analysis Essays Fedex Analysis Essay Fedex Analysis Essay TABLE OF CONTENTS EXECUTIVE SUMMARYII TABLE OF CONTENTSIII LIST OF FIGURESV LIST OF TABLESV 1INTRODUCTION1 PART 1: TRANSPORTATION AND LOGISTIC INDUSTRY2 2EXTERNAL ENVIRONMENT ANALYSIS2 2. 1TECHNOLOGICAL2 2. 2ECONOMICAL2 2. 3MARKET2 2. 4POLITICAL AND LEGAL2 2. 5ENVIRONMENTAL3 2. 6SOCIETAL3 2. 7DEMOGRAPHIC3 3INDUSTRY ENVIRONMENT ANALYSIS4 3. 1PORTER’S FIVE FORCES MODEL4 3. 1. 1Threat of new entrants (Low)4 3. 1. 2Threat of substitutes (Low – medium)5 3. 1. 3Bargaining power of buyers (High)5 3. 1. 4Bargaining power of suppliers (Medium – high)5 3. 1. 5Intensity of rivalry (High)5 4CRITICAL SUCCESS FACTOR6 4. STRONG AND TRUSTWORTHY BRAND6 4. 2ADVANCED IN IT SYSTEMS6 4. 3INTEGRATION TO CUSTOMERS SUPPLY CHAIN6 4. 4LOCATION AND ACCESSIBILITY6 PART 2: FEDEX CORPORATION7 5COMPANY ANALYSIS7 5. 1PRODUCTS AND SERVICES7 5. 2STRUCTURE7 5. 3STRATEGY7 5. 4GENERIC POSITIONING7 5. 5KEY STAKEHOLDERS8 5. 6PERFORMANCE8 5. 6. 1Marketing8 5. 6. 2Operations8 5. 6. 3Human resources8 5. 6. 4Research and development8 5. 6. 5Information Technology8 5. 6. 6Finance8 6COMPETITORS ANALYSIS10 7SWOT ANALYSIS11 7. 1STRENGTHS11 7. 2WEAKNESSES11 7. 3OPPORTUNITIES12 7. 4THREATS12 7. 5POSITIONING OF FEDEX13 8RECCOMMENDATION14 8. 1CORPORATE LEVEL14 . 2BUSINESS LEVEL15 8. 3FUNCTIONAL LEVEL15 8. 4NETWORK LEVEL16 8. 5SUGGESTED IMPLEMENTATION PLAN16 9CONCLUSION17 REFERENCES18 LIST OF FIGURES This is the complete listing of all the figures used throughout the report. FIGURE 1 ILLUSTRATES PORTERS FIVE FORCES MODEL FOR TRANSPORTATION AND LOGISTICS INDUSTRY. 3 FIGURE 2 ILLUSTRATES POSITION OF FEDEX IN SWOT. 7 LIST OF TABLES This is the complete listing of all the tables used throughout the report. TABLE 1 ILLUSTRATES IMPLEMENTATION PLAN OF SUGGESTED RECOMMENDATION13 1INTRODUCTION FedEx is the world leader in transportation and logistic industry. It was founded in 1971 as Federal Express which provides only express delivery services. Over the decades, it has transformed it self to a global logistic and supply-chain management company (Express, Ground, Freight, etc. ) through massive investment in its IT infrastructure and acquisition of Caliber systems, Inc (Figure 1) 1971 1994 Now Figure 1. FedEx Brand Transformation FedEx has always been an innovator in changing how the world works and lives. Today’s FedEx is a network of companies, worth $34 billion, offering the right mix of transportation, e-commerce and business solutions. While each company has a unique history, collectively they exhibit the â€Å"absolutely, positively† dedication to providing specialised solutions for every shipping, information and global trade needs that the world has come to expect from FedEx. But as every cloud has a silver lining, so does FedEx Corporation. Through the reading and analysis of the case study of FedEx Corp. in 2000, provided in De Wit and Meyer (2004, pp. 647-662), some recommendations have been made to address the key issues concerning the organisation, in the context of its structural transformation through e-business. : PART 1: TRANSPORTATION AND LOGISTIC INDUSTRY 2EXTERNAL ENVIRONMENT ANALYSIS 2. 1Technological The development of information technology (IT) has dramatically changed the way businesses operate in express transportation and information industry. It gives organizations the ability to share information within and between organizations, and hence, promote more time and cost effective operations which leads to shorter order-to-payment cycle and better cash flow. With the use of e-commerce in transportation and logistics, the consumer can now even track the progress of the courier at any point of time, at any given hour. 2. 2Economical The globalization of world’s economy has trigger enormous demand for transportation and logistic industry. As businesses expand itself into other countries, whether for seeking the new market or cost reduction, the transportation of goods or raw-material and management of information pertaining with them are essential. To cater to this need, as of 2000, FedEx now operates in 210 countries managing over 10 million square feet of warehouse space worldwide. Other than globalization, there are more economic factors that affect the transportation and logistics industry, for example economic rates, fuel price and economic growth. Economic rates, such as interest rate, inflation rate and currency exchange rate, and fuel price affect the price management of this industry. While economic growth affects the industry in terms of the demand of the services from customers. 2. 3Market Globalization has broadened market for all industry, from nationwide to world wide. The speed and accuracy has become the critical success factors not only for transportation and logistic company but also for their customers as well. As a result, fast and reliable service is not considered as values anymore, it becomes norm which customers expected from every transportation and logistic company. Therefore, to be competitive in this industry, companies must provide value-added-services which create great satisfaction to its customers. 2. 4Political and Legal The transportation and logistic industry is greatly affected by political stability, government policies, and regulations in each country. The deregulation and trade agreement has eliminated boundaries between countries such as U. S and Mexico, and hence, encourage transportation and logistic companies to easily establish and operate within those country. In addition, the regulations on airline and trucking industry also play vital roles on this industry because it directly impacts the core operation of industry. 2. 5Environmental Weather and climate change have great impact on transportation and logistic industry due to the fact that this industry is deeply associated with travel of airplanes, truck, freighter, and other vehicles. The ability to understand and predict weather and climate change can save company from delay, loss of its fleets, all of which is directly proportional to its reputation. 2. 6Societal Social mobility affects this industry in some way. It refers to the dollars consumers are willing to spare at the cost of time; as the most important asset in today’s cut-throat world is time. One of the most important social factors for the transportation and logistics industry is the labour part which helps the organisation carry out the day to day operations and keep the cash charts ringing. 2. 7Demographic The demographic is one external environment that affects transportation and logistics industry, especially the location of the stores; distribution centres hubs and so on. INDUSTRY ANALYSIS FedEx Corporation has been operated in the transportation and logistic industry which mainly involve in delivery, and managing and controlling of goods, information, and other resources like products. 3. 1Porter’s five forces model Figure 1 illustrates Porters five forces model for transportation and logistics industry. 3. 1. 1Threat of new entrants (Low) To be competitive in t his industry, businesses must have their own freighter, airplanes, trucks, etc. This result in very large capital investment required in order to start a business. Moreover, brand awareness is also very crucial. Without strong brand, particular company would not be able to gain trust, which is very important in this industry, from customers. For newly established company in this industry where there are already many strong players, it is not easy to create and strengthen its brand image. As a result, the entry barrier is considered very high. 3. 1. 2Threat of substitutes (Low – medium) Emergent of internet and email do reduce the necessity of express delivery of documents. There are also some moving and shipping services which target private households when they have to move aboard, or international students moving from or to their origin. But these are still in different market segment. There are still no potential alternatives which can fully replace service of FedEx. 3. 1. 3Bargaining power of buyers (High) Since there are many of companies which offer the same service as FedEx and with the increasing contribution of IT in logistics industry, buyers can easily compare prices and offers from different companies and choose the one that cheapest and most suit their needs. FedEx should provide significant service to its customers and have high differentiate products. 3. 1. 4Bargaining power of suppliers (Medium – high) The main suppliers of FedEx are fuel and other energy provider, aircraft manufacturer, and truck manufacturer. The bargaining of vehicles manufacturer is considerably medium because even though FedEx is a big organization which requires big fleet of vehicles and continuous maintenance service, but vehicle manufacturers still has other choice of buyers from various industries. 3. 1. 5Intensity of rivalry (High) The intensity of rivalry is considerably high due to the three strong competitors which are UPS, DHL, and TNT. Need more 4CRITICAL SUCCESS FACTOR 4. 1Brand The reliability and accountability is the most important factor in this industry. Even though the company can make the very low price with easy access and user friendly service, but if the company could not guaranteed the speed and accuracy of its services, customers would not take the risk. 4. 2IT systems The advancement of IT systems leads to more efficient operations which again lead to faster and more accurate services with lower cost. In present, from the comfort of ones home, they can use most of the services offered by FedEx, booking a delivery or tracking the progress of the courier and so on so forth. 4. 3Service quality By providing services which integrate into customers’ supply chain, the company built up barrier to protect its customer from its competitors, as FedEx delivers almost anything anywhere at the quickest time possible, which is not really exclusive but with the continuous innovation and creativity, it helps in customer retention. 4. 4Location and accessibility Location of hub has massive impact on the speed of services. Proper distributed hub location according to geographic and intensity of demand could leads to faster and more responsive services. The accessibility such as customers care centre or user friendly systems also promote more pre and post sales. PART 2: FEDEX CORPORATION 5COMPANY ANALYSIS 5. 1Products and services FedEx corporation start the business with express delivery services as Federal express and the transform it self in to a global logistics and supply-chain management company. At present, FedEx offers wide range services which include express delivery, business to business ground small package delivery, special express delivery, less than truck freight, integrated logistics and warehousing solutions, supply chain management solutions. 5. 2Structure FedEx has been through many transformation of its organization structure with the goal to make it easier and faster for its customer and also to improve efficiency of its operations. Currently FedEx Corporation consists of six subsidiaries which independently operate but collectively compete with its competitors. 5. 3Strategy Base on case study, FedEx has always emphasis on shear innovation, industry leadership and IT development and use it as its key competitive advantages and also use it as the tools to help its customers take advantages of international market. Moreover, FedEx is the first company in the industry which owns all transportation fleet and expands its business through acquiring more trucks and planes. 5. 4Generic positioning . 5Key stakeholders FedEx works in the B2B as well as B2C model, which makes the customers as well as the organisations that it caters to as its key stakeholders. Moreover, its employee from all subsidiaries; its suppliers, such as fuel provider and packaging suppliers, and environmental activist group also constitute a large share of stakeholders. 5. 6Performance 5. 6. 1Marketing FedEx has a strong marketing presence but need to market all of its subsidiaries to gain a bigger market share as only FedEx Express is the dominant one amongst all. It uses the print media as well as TV campaigns to attract customers as well as create awareness for its excellent supply chain systems. 5. 6. 2Operations FedEx’s operation was one of the critical issues in the company as learnt from the case study, where it does not operate efficiently as a whole company. Not only it had different operations department for each division, it also added to the operation costs to great extent, which otherwise could be minimalised by sharing the available resources. 5. 6. 3Human resources FedEx failed in utilisation of its HR as one person was assigned one work only, irrespective of their maximum capabilities. 5. 6. 4Research and development FedEx allocates excessive resources to its RD division in order to keep itself updated with the every-day increasing IT developments in logistics field. But it still stands a fair level in terms of the services offered for customers. 5. 6. 5Information Technology FedEx was the first logistic company which introduce the use of IT to the business in 1984, by using the first PC-based automated shipping system. Since then, FedEx has been always implementing and improving its IT system, from barcode labelling, websites, software, e-Business and so on. FedEx IT has become its competitive advantage for years comparing to its competitors. The information about a package is as important as the delivery of the package itself. - Frederick W. Smith (1979) 5. 6. 6Finance In 1998, FedEx was listed as a US$10 billion company and it used US$1 billion annually on IT developments plus millions more on capital expenditure. And in 1999, it spent US$1. billion on IT from US$17 billion annual revenue. On 31 May year ending sheet, the company out-performed the projections and posted record earnings on 73 percent increasing the net income to US$221 million. Financially, FedEx spent about US$100 million for the reorganization over three years in 2000. In simpler terms, companies operating income as well as net income has been going down since first quarter ending 31 August, 1999. 6COMPETITORS ANALYSIS 6. 1UPS oStrong in logistic and delivery, especially in US. oIT developed as well (spent $9 billion on IT) Formed 5 alliances in 1997 to disseminate its logistics software to e-commerce users oFormed a strategic alliance with Open Market Inc to deliver a complete Internet commerce solution oWorking with IBM and Lotus to standardize formats on the websites oShipped more than 55% of goods ordered over internet and offered over full range of logistics solutions to its customers oOnly market 1 brand UPS 6. 2DHL oStrong in logistic and delivery, especially in Europe. o1993 DHL announced a 4 year US$1. 25 billion capital spending programme aimed at investing in handling system, automation, facilities and computer technology. Launched website in 1995 o25% owned by Deutsche Post and 25% owned by Lufthansa Airlines oDominated UK market oProjected an increase in worldwide turnover of 18% to US$5. 26 billion 6. 3TNT oOnly provide express delivery service. oLaunched website in 1998 oLaunched the first global price checker service on its website that allow customers to calculate the price of sending a consignment from one place to another anywhere in the world o1999, TNT launched QuickShipper, nonstop online access to TNT entire range of distribution services SWOT ANALYSIS 7. 1Strengths Innovation and creativity. Strong and well established research and development centre for IT systems to promote more efficient operation. Very advanced â€Å"Global Operation Command Centre† which allows FedEx to prioritise hundreds of variables (eg. world event, weather patterns, and real time movement of its freighter) involved in the successful operation. Excellent reputation in the industry. Own all transportation fleets. Strong business networks in the US. 7. 2Weaknesses Historical image of the company makes customers perceive FedEx as just an express delivery service company. Complex and inefficient organization structure. There are too many part of organization that duplicates each o ther. Entirely reliant on manual labour to a great extent, which can be a prospective weakness in some circumstances Insufficient promotion of the other sectors and fields where FedEx offers its services Disproportionate branching of FedEx subsidiaries thereby increasing the operating costs which can be otherwise be reduced by sharing the resources. . 3Opportunities Government deregulation of airline industry, permitted the landing of larger freight planes, thus reducing operating cost of FedEx Deregulation of the trucking industry, which allowed FedEx to establish a regional trucking system to lower costs further on short haul trips Trade deregulation in Asia Pacific, which opened new market to FedEx, expanding globally became a priority for FedEx Technological breakthroughs and applications innovations promoted significant advances for customer ordering, package tracing and process monitoring. Rising inflation and global competition gave rise to greater pressures on businesses to minimize the costs of operation, including implementation of JIT inventory management system and created demands for speed and accuracy in all aspects of business. 7. 4Threats FedEx advantages were quickly eroding as newer technologies became more powerful, developed faster, and less expensive – more affordable for its competitors. Potential financial crisis due to too much fixed cost, such as aircrafts, vehicles and other heavy equipments. On the lines of blue ocean strategy, CHEP is a possible/prospective threat to FedEx as it explores altogether new approach in the supply chain industry. Rocketing fuel prices which increase the transporting cost to sky-end. 7. 5Positioning of FedEx Figure 2 illustrates position of FedEx in SWOT. Base on the SWOT analysis, even though FedEx has many strong points but its historical brand image has put limit on almost all of its strength. Due to this constraint, it is known only as Express Delivery Company. As a result, FedEx is currently located in weaknesses-opportunities quadrant. If FedEx could widen the perception of its current and potential customers, and fully utilize its own strength to pursue its opportunities, it would be one of the strongest in its industry. 8RECCOMMENDATION 8. 1Corporate level Get slim: FedEx could shrink down its structure by integrating some division of its subsidiaries together to reduce cost and time caused by duplication of works. And by doing so, it would encourage lateral flow of information between each business unit. And as a result, its operations would be more efficient which leads to more flexible profit margin and more customers’ satisfaction. Add pic Acquire CHEP: CHEP is a global leader in pallet and container pooling services. It is not actually a logistics company. It provide and manage, returnable and reusable supply chain packaging solutions (such as pallets and containers) to help customers to store, protect and move their products through the supply chain in a cost-effective, safe and environmentally sound way. By acquiring CHEP, FedEx will benefit from immediate horizontal expansion of its company and also its customer base. Moreover, acquisition of CHEP will also allow FedEx to integrate more into its customers supply chain and hence create strong barrier from its competitors and substitutes. Take serious concern on environment: Due to the fact that the nature of FedEx businesses required extensive amount of transportation activities which results in largely emission of green house gas that create global warming effect. Therefore, in order to get strong support from community and environmental activist such as Greenpeace, FedEx should then come up with the environmental concern vision to make its fleet cleaner and be more environmental friendly. This could be done by modifying its fleet or support or joint-research with any car company or institute to develop an alternative cleaner power source. Moreover it could establish its own manufacturing plant for shipment package and protection (such as cardboard boxes, paper envelope, bubble wrap, shredded paper) by emphasis on recycle of material. 8. 2Business level Promote brand awareness of all FedEx subsidiaries: Now FedEx is struggling with its historic image which narrows customers’ perception to FedEx as only an express delivery company. To deal with this problem, FedEx should promote all of its services by strong marketing campaign. This could be done by advertisements in television, its website, or major video clip website such as Youtube. Alternatively FedEx could collaborate with 20th Century Fox and DreamWorks Picture to create a film, which represent all the of its services, as it was done before in â€Å"Cast Away†, 2000. 8. 3Functional level Developing and training for multi-task oriented employees: In order to successfully shrink down company structure as proposed before in corporate level recommendation, FedEx should develop a training program for its employee to be multi-task oriented. By doing so, FedEx encourage its staffs to be able to work in more than one job. This does not means that FedEx should overworks its staff, but it should be able to rotate its staff around for different roles such that one staff could delivery a package to customers and in the same time pick up another couple of packages which one suppose to be sent by ground and another one by express air. Create strong marketing division FedEx should establish a separate marketing division which in charge in creating strong marketing strategy for all of its subsidiaries. FedEx should allocate some portion of budget from its research and development to its marketing division in order to support strong marketing strategy which is very vital for creating brand awareness for all of its subsidiaries. 8. 4Network level Alliance with companies in IT industry: The research development and advance in IT systems are one of FedEx competency. But with too high budget allocation, this could cause adverse effect to the company. FedEx should make strategic alliance with IT systems company such as IBM or HP in order to reduce their cost of operation. 8. 5Suggested implementation plan Table 1 illustrates implementation plan of suggested recommendation

Historical and Modern Terrorist Groups by Type

Historical and Modern Terrorist Groups by Type While there is no universally agreed-upon or legally binding definition of a terrorist act, the U.S. gives it a good try in Title 22 Chapter 38 U.S. Code  § 2656f, by defining  terrorism as an act of premeditated, politically motivated violence perpetrated against noncombatant targets by subnational groups or clandestine agents.  Or, in brief, the use of violence or threat of violence in the pursuit of political, religious, ideological, or social objectives. What we do know is that terrorism is nothing new. Even a cursory glance over the centuries reveals a startling list of groups for whom some form of violence is justified to  achieve  social, political, and religious change. Terrorism in Early History Most of us think of terrorism as a modern phenomenon. After all, many of the terrorist groups listed below rely or have relied on the mass media to spread their message through non-stop coverage. However, there are some pre-modern groups who used terror to achieve their ends, and who are often considered precursors to modern terrorists. For instance, the Sicarii, organized in the first century in Judea to protest Roman rule or the Thugee cult of assassins in ancient India who wreaked havoc and destruction in the name of Kali. Socialist/Communist Many groups committed to socialist revolution or the establishment of socialist or communist states arose in the last half of the 20th century, and many are now defunct. The most prominent included: Baader-Meinhof Group  (Germany; renamed Red Army Faction but defunct as of 1998)  Popular Front for the Liberation of Palestine (PFLP)Red Brigades (Italy)Revolutionary Struggle (Greece)Shining Path (Peru)Weather Underground Organization (United States) National Liberation National liberation is historically among the most potent reasons that extremist groups turn to violence to achieve their aims. There are many of these groups, but they have included: ETA (Basque)Fatah (PLO) (Palestinian)Irgun (Zionist)IRA (Irish)(Kurdish)Tamil Tigers (Sri Lankan Tamils) Religious-Political There has been a rise in religiosity globally since the 1970s and, with it, a rise in what many analysts call religious terrorism. It would be more accurate to call groups such as Al Qaeda religious-political, or religious-nationalist. We call them religious because they use a religious idiom and shape their mandate in divine terms. Their goals, however, are political: recognition, power, territory, concessions from states, and the like. Historically, such groups have included: Al Qaeda (transnational, Islamist)Aum Shinrikyo (renamed Aleph; Japanese, with various influences, including Hindu and Buddhist)Ku Klux Klan (U.S.,  Christian)Abu Sayyaf  (Philippines,  Islamist)Egyptian Islamic JihadHamas (Palestinian,  Islamist) (Hamas is designated by the U.S. and other governments as a terrorist group, but it is also the elected government of the Palestinian Authority)Hezbollah (Hezbollah is designated as a terrorist organization by the U.S. and other governments, but others argue it should be considered a movement, rather than a terrorist group) State Terrorism Most states and transnational organizations (like the United Nations) define terrorists as non-state actors. This is often a highly contentious issue, and there are long-standing debates in the international sphere over a few states in particular. For instance, Iran and other Islamic states have long accused Israel of supporting terrorist acts in the surrounding settlements, Gaza, and elsewhere. Israel, on the other hand, contends it is fighting for its right to exist free of terror.  There are some states or state actions in history over which theres no dispute, though, such as in Nazi Germany or Stalinist Russia.

Writer's letter Essay Example | Topics and Well Written Essays - 500 words

Writer's letter - Essay Example Here are my other experiences and the things that I have learnt from writing (Goldberg 45). I would categorize myself as a fiction writer and I enjoy reading fiction. Danielle Steel and Robert Ludlum are my favorite authors and they inspire my writing. I like Danielle Steel’s inclination to writing about friends and family and these have become important influences for me. Robert Ludlum’s tendency towards detective fiction is what I particularly admire about his writing. Essay is the other form that I like especially because of its efficiency in communicating ideas and the freedom it allows a writer in regards to diction, syntax, and content (Goldberg 46). Coursework and assignments make me to write severally in a week, but for pleasure, I write once in two weeks. I have not written for student publication and jobs but I intend to try writing a column in any of the student publications. I feel I have not been writing as much as I would wish because I would want to write daily. I seek to achieve this with the writing log I have developed. The log will help me detect when I am doing too little and when I need to slow down and invite feedback on my writing progress. My friends and tutors are the people who provide feedback on my writing and this feedback has been helpful in improving some my areas of weaknesses (Goldberg 47). Listening to some music in the background while I write is one of the writing rituals that I have developed. Music helps me counter the fright that comes with seeing a blank page in front me waiting for me to start writing. The rhythm of music soothes my mind and stimulates my creativity making ideas to flow logically. Music also helps me counter my disinterest for revision and rewriting. However, even without music and regardless of how daunting revision is to me, I reckon that it is a crucial aspect of my writing and one that

Writing Assignment #2 Essay Example | Topics and Well Written Essays - 500 words

Writing Assignment #2 - Essay Example The debate over possible government breakups of Internet companies began with a recently published book that also chronicles how monopolies in the information industry are almost always caused by government meddling. The book is "The Master Switch" by Tim Wu, a Columbia law professor who coined the term "network neutrality." Setting aside for a moment Mr. Wus call for more aggressive regulation of the Web, he is right that over the past century what he calls "information empires" have hijacked what start out as open systems, almost always with government regulation at fault. "Every few decades," Mr. Wu writes, "a new communications technology appears, bright with promise and possibility." There is innovation but also chaos, as new business models disrupt old ones. The result often is that "the markets invisible hand waves in some great mogul" who promises a more orderly structure for the industry. "Usually enlisting the federal government, this kind of mogul is special for he defines a new type of industry, integrated and centralized." Consider these examples: Telephone. In 1913, the American Telephone & Telegraph Co. asked the federal government to regulate it, in the hopes of creating a monopoly on long-distance service that would let it over time crush local independent providers. With the slogan of "One system, one policy, universal service," AT&T got government-set rates that ensured it strong rates of return for decades while limiting competitors. As Mr. Wu says, "Imagine Microsoft in the 1990s asking the states and the Clinton Justice Department to determine the price of installing Windows or Google today requesting federal guidelines for its search engine." AT&T wasnt broken up until 1984. Radio. In the 1920s, radio was an open medium of unrestricted, competitive communications. Church groups, universities and hobbyists launched radio stations catering to hundreds of different communities of interest. But by the late 1920s,

Literature Review on Emotions Across Cultures

Literature Review on Emotions Across Cultures Ms. Shweta Gaikwad RESEARCH METHODOLOGY OF EMOTIONS ACCROSS CULTURES (EMIC, ETIC OR A COMBINATION OF BOTH) Introduction: The terms emic and etic were coined in 1954, by linguist Kenneth Pike, who argued that the tools developed for describing linguistic behaviors could be adapted to the description of any human social behavior. Emic and Etic are terms used by anthropologists and by others in the social and behavioral sciences to refer to two kinds of data concerning human behavior. In particular, they are used in cultural anthropology to refer to kinds of fieldwork done and viewpoints obtained. In the field of cross-cultural research, the emic approach involves examining one culture at a time to evaluate how insiders or participants interpret a phenomenon. The criteria for evaluating behaviors relate to the insiders, and the structure is discovered by the researchers. On the other hand, the etic approach involves comparing different cultures. Behavior is studied from the perspective of an outsider, the criteria for evaluating behaviors are viewed as â€Å"universal† and the structure is created by the researchers. Definition: â€Å"The emic approach investigates how local people think (Kottak, 2006). How they perceive and categorize the world, their rules for behavior, what has meaning for them, and how they imagine and explain things.† The etic approach realizes that members of a culture often are too involved in what they are doing to interpret their cultures impartially â€Å"The etic (scientist-oriented) approach shifts the focus from local observations, categories, explanations, and interpretations to those of anthropologist.† When using the etic approach, the ethnographer emphasizes what he or she considers important. Early Etic and Epic studies in Psychology: Swiss psychoanalyst, Carl Jung, is a researcher who took an etic approach in his studies. Jung studied mythology, religion, ancient rituals, and dreams leading him to believe that there are archetypes used to categorize people’s behaviors. Archetypes are universal structures of the collective unconscious that refer to the inherent way people are predisposed to perceive and process information. The main archetypes that Jung studied were the persona (how people choose to present themselves to the world), the animus/ anima (part of people experiencing the world in viewing the opposite sex, that guides how they select their romantic partner), and the shadow (dark side of personalities because people have a concept of evil. Well-adjusted people must integrate both good and bad parts of themselves). Jung looked at the role of the mother and deduced that all people have mothers and see their mothers in a similar way; they offer nurture and comfort. His studies also suggest that †Å" infants have evolved to suck milk from the breast, it is also the case that all children have inborn tendencies to react in certain ways.† This way of looking at the mother is an etic way of applying a concept cross- culturally and universally. Recent Researches on Emic and Epic across Culture: I) West Meets East: Incorporating the Emic Perspective for Cross-cultural Business Communication by Yunxia Zhu, University of Queensland Business School The researcher has shed light on the rapid development of internationalization and globalization, cross-cultural business communication is drawing increasing research  attention. The researcher has reviewed and reported findings based on 177 journal papers, published after 1990, in various Journals of Business Communication. The researcher indicates that there has been a shift of research focus towards  Asia and other emerging economies with the rise of Asia and Latin America  (e.g., China, India, and Brazil) in the world economic arena. However, Many Scholars contemplate dominant approach of crosscultural communication and management is Still largely based on polarised cultural dimensions, (e.g., Individualism and collectivism). Hofstede’s (2001). The research highlights the issue relating to the imbalanced emic-etic focus and propose specific ways of addressing this imbalance, through the discussion on the following three points: Introduction of the concepts of emic and etic perspective, and discussion of the relevance to cross-cultural business communication. The sources of emic researches and suggest ways of incorporating them. The theoretical and practical implications of applying the emic perspective and suggest some future research directions. The researcher refers to Kenneth Pikes (1967) contribution and definition of the terms epic and ethic and concludes that the etic unit was from the outside in, providing access into the system but only as the starting point of analysis; the full understanding of the emic is the ultimate end point. However the researcher fails to mention the terms are coined priory by Pikes in 1954. According to the researcher the importance of the emic approach has drawn increasing research attention but it has not been given sufficient research attention in cross-cultural business communication. Also it is crucial to explore and incorporate The emic perspectives in order to reach a balanced view about the culture and communication in the new economic and cross-cultural contexts. The researcher has further discussed the Imposed Ethic approach, The Integrative Etic-Emic Approach and Emically Derived Etic Approach with relevance to various researches in the respective fields. There are enough evidences of researches In conclusion the expant research points to the imperative of incorporating the emic perspective in order to explore the nuances and richness of cultures. Whereas, the emic perspective is especially important today when the East meets the West. The study of incorporating emic perspectives has both theoretical and practical implications. Theoretically, the emic can complement the etic approach, hence extending the prevalent etic approach. The researcher further suggests future study can examine how emic perspectives can extend other cultural dimensions. Also indicating that various theories can be viewed in the light of emic perspective to derive or facilitate culture studies. The limitation or overlapping of the theories is also pointed out that some imposed etic or prevalent Western theories are in fact emic in nature. Thus leading to the need to identify the limitations of these theories including tracing sources and contexts of these theories while applying them. The researcher states that the emic sources of knowledge also extend the etic approach, offering us a wider range of alternative perspectives from emic sources for cross-cultural adaptation. For example, we can be more flexible with communication styles with different group of people in different contexts. The researcher concludes with the conception that there is potential for developing new theories and for complementing extant theories drawing from emic sources, which will help to achieve significant impact and answer the ‘so what’ question for cross-cultural business communication research. II) Toward a new approach to the study of personality in culture. by  Cheung, Fanny M.; van de Vijver, Fons J. R.; Leong, Frederick T. L. The research reviews recent developments in the study of culture and personality measurement. Three approaches are described: an etic approach that focuses on establishing measurement equivalence in imported measures of personality, an emic (indigenous) approach that studies personality in specific cultures, and a combined emic–etic approach to personality. The research proposes the latter approach as a way of combining the methodological rigor of the etic approach and the cultural sensitivity of the emic approach. The combined approach is illustrated by two examples: the first with origins in Chinese culture and the second in South Africa. The article ends with a discussion of the theoretical and practical implications of the combined emic–etic approach for the study of culture and personality and for psychology as a science. III) Views From Inside and Outside: Integrating Emic and Etic Insights about Culture and Justice Judgment by Michael W. Morris, Stanford University Kwok Leung, Chinese University of Hong Kong; Daniel Ames, University of California at Berkeley and Brian Lickel, University of California at Santa Barbara. The research focuses on synergy between emic and etic approaches to research on culture and cognition. The research contemplates the integrative limitation as well as simulative progressive characteristics of emic and etic approaches to research. The research notes that the emic or inside perspective follows in the tradition of  psychological studies of folk beliefs (Wundt, 1888) and The etic or outside perspective  follows in the tradition of behaviourist psychology (Skinner, 1938).The two perspectives/approaches persists in contemporary scholarship, in psychology, between cultural psychologists (Shweder, 1991) and cross-cultural psychologists (Smith Bond, 1998). Varied views on emic and etic approaches, as facilitating and bringing limitations to one another as integrative, with context to anthropology, comparatives and psychology, are elaborated. Further contemplating that, emic and etic researchers tend to have differing assumptions about culture. Emic researchers tend to assume that a culture is best understood as an interconnected whole or system, whereas etic researchers are more likely to isolate particular components of culture and state hypotheses about their distinct antecedents and consequences. The researchers agree that there is differences in justice judgments made in East Asian cultural settings, as opposed to Western settings. The researchers examine selected results from the two key components of distributive justice perception: selecting principles and construing behavior. East Asian cultures have suggested that the principle of harmony is salient in Confucist cultural settings (Hsu, 1953). Whereas Western common sense and theory (Deutsch, 1985). Chinese respondents give more weight to group-oriented values than do North Americans (e.g., Singh,Huang, Thompson, 1962). Emic research has revealed novel constructs (e.g., generosity as a means to harmony), has challenged etic constructs (the notion that individuals adherence to individualist  and collectivist values is captured by a unitary dimension), and has suggested new solutions  (e.g., distinguishing types of ingroup relations). Insights concerning cultural influence on the  interpretation of behavior relevant to justice comes mostly from emic studies. Emic analysis of how culture shapes judgment of deservingness has gone furthest in studies of indigenous Chinese constructs. Although there can be no doubt that an employees social connections enter into appraisals in many Western settings, the role of an employees connections  in an evaluation of his or her worth generally is left implicit and unarticulated by Western observers. To summarize the researchers have described several forms of stimulation in which  developments within each research tradition are provoked and challenged by findings in the  other tradition. Moreover, researchers have argued that an integrative explanatory framework incorporating insights from both traditions avoids limitations of purely etic and purely emic findings in conceptualizing culture and in capturing its various influences on cognition. In conclusion , the researchers have argued that integrative frameworks have several advantages as guides to solving the applied problem of managing justice perceptions  in international organizations. That is, an integrative framework enables better anticipation  of employees justice sensitivities, better decision making about a firms policy options,  and, once a policy is chosen, better implementation. Conclusion The researches on etic and epic approaches suggest that use of integrative approach provides a better understanding of cross-cultural researches. The cultural differences in context to personality, organizational, communication and emotion studies can be broadly generalised if the integrative approach is used. The limitations of one approach are the advantage of the other. Many studies indicate that some emic studies include an epic approach. REFERENCES Cheung, F. M.; van de Vijver, Fons J. R.; Leong, Frederick T. L. (2011) Toward a new approach to the study of personality in culture. American Psychologist, Vol. 66(7), pp.593-603.  Retrived on 19th November 2013 from:  http://psycnet.apa.org/index.cfm?fa=buy.optionToBuyid=2011-01448-001 Emic and Etic Researches-concept  Retrieved on 19th November 2013 from:  http://en.wikipedia.org/wiki/Emic_and_etic Friedman, Howard S; Schustack, Miriam W (2012), Personality: Classic Theories and Modern Research, Boston: Pearson Allyn Bacon. Kottak, Conrad (2006), Mirror for Humanity, New York, NY: McGraw Hill. Morris, M. W.; Leung, K.; Ames, D. and Lickel, B.( 1999).Views From Inside and Outside: Integrating Emic and Etic Insights about Culture and Justice Judgment.  Academy of Management Review, Vol. 24. No. 1781-796.