Strengths: Revenue Growth: In 2008‚ FedEx reported revenue of $38 billion; in 2012 the company reported revenue of $42.7 billion‚ representing a year over year annual growth rate of 2.96%‚ and while this may not seem like an explosive number‚ the caliber of growth is solid and expected to accelerate into the future‚ with 2015 revenues reaching nearly $49 billion. Established Distribution System: The company possesses a massive fleet of airplanes‚ trucks‚ locations‚ and employees‚ and is distinctly
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the “Best of Breed” and applied the P/E ratio to estimate UPS price as the top companies’ whichone are between 50% and 70% higher than the industry average. Using P/E Ratios FedEx values P/E = 1.0*P/E FedEx $35/share of UPS Best of Breed: P/E = 1.5*P/E FedEx $52/share of UPS P/E = 1.7*P/E FedEx $59/share of UPS 3 different values due to the different approaches The prices from the different approaches spreadvaried. High book building price suggest that the market expects
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o What were the Business strategies of FedEx and UPS during the early years and how have they evolved with time? FedEx used customer relationships when it first started out‚ making things easier for the customer. Through the evolution of the company FedEx retains its customer relationship strategy‚ making sure that the customers are happy and the packages are on time. UPS used the low-cost leadership in the beginning. This meant that even though all customers were getting the same service for
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Express (2008 U.S. App. LEXIS 1260 [4th Cir.]) Facts: FedEx appealed a case awarding a disabled employee‚ Ronald Lockhart‚ with compensatory and punitive damages. Under the Americans with Disabilities Act (ADA) the employer must be acting with malice for punitive damages to be awarded; in addition‚ there was evidence that questioned if punitive damages were warranted. FedEx claimed that Lockhart’s supervisors failed to accommodate him at work‚ not FedEx‚ and they did engage in a good-faith effort to comply
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financial performance for the past three year and compare them with industry average and it closet rival-FedEx‚ from profitability ratios‚ liquidity ratios‚ leverage ratios‚ activity ratios‚ valuation ratios and growth rate. Financial Analysis of UPS | UPS | | | | | | Financial Ratios | | | | | | | | | | | Fiscal Year | | TTM | 2009 | 2008 | Industry | FedEx | Profitability Ratios | | | | | | | Gross Profit Margin | | 79.14% | 80.53% | 76.93%
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in the overnight (e xpress) deliveries segment. Therefore the marketing plan recommends gaining mark et share in that segment by withdrawing market share from FedEx‚ which is the ma rket leader in that segment. Therefore‚ UPS should target companies (such as hos pitals‚ finance companies etc.) and households who are currently using FedEx for urgent freight. In addition‚ UPS should also position themselves in the interna tional shipping market. Therefore‚ they should target global manufacturing
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1) How and why has the structure of the express mail industry evolved in recent years? How have the changes affected the small competitors? How has the rivalry between FedEx and UPS impacted them and the rest of the industry? - The face of shipment industry changed drastically with the proliferation of many services wherein companies offered next afternoon delivery‚ second day services‚ third day deliveries and pricing these options on the basis of delivery time. - Shipping volumes had increased
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The Battle for Value‚ 2004 Fedex Corp vs United Parcel Service‚ Inc. Fedex stock price reaction Loss of profits on the Penney relationship ◦ less able to finance internally UPS gains franchise value on future business with Penney signal to investors of competitive disadvantage Origins and strategic forces of the industry UPS was the dominant firm in the 1970’s Deregulation (airlines‚ trucking) Innovation in information and process technologies Inflation Emphasis
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CASE STUDY QUESTIONS Chapter 1: Foundations of Information Systems in Business CASE I: 1. How do information technologies contribute to the business success of the companies depicted in the case? The information technologies contribute to the business success of the companies through immediate responds‚ first to the needs of the customers on how the company will satisfy each and every customers and the monitoring of the fast changing trends in business through the use of information technology
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FedEx does have the right to enforce personal grooming policy. This policy must be applied to all employees equally in the same work classification. FedEx is providing their customers a product and service in which the employee must interact with the customer. This interaction is vital to FedEx being successful in retaining their customer base. When a customer complains about an appearance an employee portrayed‚ a company can implement a personal grooming policy as long as the policy is fair to all
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