FedEx Corporation

Essay Instructions:

FedEx Corporation Complete the following exercise (Research and Application 11-30) and submit to your instructor. The questions in this exercise are based on FedEx Corporation. To answer the questions you will need to download FedEx's Form 10-K for the fiscal year ended May 31, 2005 (file date July 14, 2005). You do not need to print this document to answer the questions. Required: What is FedEx's strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operations excellence, or product leadership customer value proposition? What evidence supports your conclusion? What are FedEx's four main business segments? Provide two examples of traceable fixed costs for each of FedEx's four business segments. Provide two examples of common costs that are not traceable to the four business segments. Identify one example of a cost center, a profit center, and an investment center for FedEx. Provide three examples of fixed costs that can be traceable or common depending on how FedEx defines its business segments. Compute the margin, turnover, and return on investment (ROI) in 2005 for each of FedEx's four business segments (Hint: page 99 reports total segment assets for each business segment.) Assume that FedEx established a minimum required rate of return of 15% for each of its business segments. Compute the residual income earned in 2005 in each of FedEx's four segments. Assume that the senior managers of FedEx Express and FedEx Ground each have an investment opportunity that would require $20 million of additional operating assets and that would increase operating income by $4 million. If FedEx evaluates all of its senior managers using ROI, would the managers of both segments pursue the investment opportunity? If FedEx evaluates all of its senior managers using residual income, would the managers of both segments pursue the investment opportunity?

Essay Sample Content Preview:

FEDEX
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Grade Course:
Tutor’s Name:
(19 May, 2012)
Fedex
Federal Express has been in existence since and has attributed its growth and success to harmony and organization of its workers and improving their lives as well as the company’s and so there is more determination by the workers. The company prides itself in having a policy which cannot separate from the profits because of the good work that they do. Its main principle is Profit-Service-people where they have to attain all these, they cannot be alienated because profit is from appropriate service delivery to people who the pay for the particular service of delivery and refer others to the company according to their satisfaction. It works together with the community by giving them a sense of belonging and of importance by providing them with over 100,000 job opportunities.
Its HR policy is to be an employee’s choice by having a well established brand, reputation and giving people value for their. In HR, one of its strategies is for the employees to acquire skill and with this they only pick the candidates who are best suited for the job in terms of skill and experience. Having a hardworking attitude is also highly advised of its workers as well as good quality results and not only doing things in bulk as this is what makes them have a good reputation. The workers/employer relationship should be such that the environment is conducive for good work output. Training to increase worker knowledge is helpful. The workers feel secure if they have benefits to look up to and if turnover is extemporary, then they know that they are capable of better output. It has attributes such as: personal for the self goals one puts forth to achieve at work, Accessible to the customers and level of knowhow of the company so marketing comes in handy, reliability should be one major assurance to the people for safe delivery of their items, responsive is in the aspect of speed of delivery and dedication is in terms of the ambition and motivators at work. Reputation this is achieved there being a work environment that is unique and adopts talent, interest and objective at work making customers trust them.
Risks involved
The Flying Tiger network which was in the same business made it possible for FedEx to be the most prominent cargo carrier allowed FedEx to become the world’s largest full service all cargo carrier. It was more of a merger in which FedEx to up additional routes that were previously operated by the latter. Flying Tiger was m...

Updated on January 26, 2024

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