Federal Express Quality Improvement ProgramThe Leading
Federal Express Quality Improvement Program
The leading company in express airfreight shipments is seeking to maintain its superiority in an increasingly competitive global market place. The case describes how FedEx has used information technology to enhance the reliability of its service and add extra features for customers. The case also describes the FedEx 's efforts to improve service quality in the U.S.A., including new measurement techniques, training, and "internal marketing". With the company facing a profit crunch following its merger with Flying Tigers, the senior vice president customer service seeks to maintain investment in the ongoing quality improvement program.
Federal Express is an express transportation company, founded in 1973 by Frederick W. Smith. In August of 1971, Smith started his venture by buying controlling interest in Arkansas Aviation Sales. While operating his new firm, Smith recognized the great difficulty in getting packages delivered within one- to- two days. This dilemma motivated him to do the necessary research for resolving the current inefficient distribution system. This is how the idea for Federal Express was born, a company that revolutionized global business practices and now defines speed and reliability (1).
The company incorporated in June 1971 and officially began operations on April 17, 1973, with the launch of 14 small aircraft from Memphis International Airport. Apart from his own investment, $4 million, Smith raised over $72 million in loans and equity investment within the first year. Federal Express didn’t show a profit until July 1975 due to the oil crisis, and then Federal Express became the premier carrier of high-priority goods in the marketplace and the standard setter for the industry it established.
The company entered its maturing phase in the first half of the 1980s. Federal Express was well established, and at the time market leader showing a growth rate of about 40 percent annually. In fiscal
The leading company in express airfreight shipments is seeking to maintain its superiority in an increasingly competitive global market place. The case describes how FedEx has used information technology to enhance the reliability of its service and add extra features for customers. The case also describes the FedEx 's efforts to improve service quality in the U.S.A., including new measurement techniques, training, and "internal marketing". With the company facing a profit crunch following its merger with Flying Tigers, the senior vice president customer service seeks to maintain investment in the ongoing quality improvement program.
Federal Express is an express transportation company, founded in 1973 by Frederick W. Smith. In August of 1971, Smith started his venture by buying controlling interest in Arkansas Aviation Sales. While operating his new firm, Smith recognized the great difficulty in getting packages delivered within one- to- two days. This dilemma motivated him to do the necessary research for resolving the current inefficient distribution system. This is how the idea for Federal Express was born, a company that revolutionized global business practices and now defines speed and reliability (1).
The company incorporated in June 1971 and officially began operations on April 17, 1973, with the launch of 14 small aircraft from Memphis International Airport. Apart from his own investment, $4 million, Smith raised over $72 million in loans and equity investment within the first year. Federal Express didn’t show a profit until July 1975 due to the oil crisis, and then Federal Express became the premier carrier of high-priority goods in the marketplace and the standard setter for the industry it established.
The company entered its maturing phase in the first half of the 1980s. Federal Express was well established, and at the time market leader showing a growth rate of about 40 percent annually. In fiscal
Cited: (1) http://about.fedex.designcdt.com/our_company/company_information/fedex_history (2) http://about.fedex.designcdt.com/our_company/company_information/mission_statement