FedEx VALUE CREATION AND ECONOMIC PROFIT United Parcel...

MEIHO UNIVERSITY CASE STUDY FOR FINANCIAL MANAGEMENT CASE 4: The Battle for Value, 2004: FedEx Corp. vs. United Parcel Service, Inc. VALUE CREATION AND ECONOMIC PROFIT Lecture: é  ¾ ç ´ ¹ 熙 è€  Ã¥ ¸ « Group 3: F49802134 èÆ' ¡ ç §â€¹ è â€° F49802153 é «Ëœ 玉 ä º « ç ® ® Presentation date: 16th Apr 2012 I. OUTLOOK OF CASE 4 Case 4 mentions about the competition between two leading companies in package- delivery market. FedEx which is the largest foreign presence in China, with 11 weekly flights, serving 220 Chinese cities, so the company’s volumes in China had grown by more than 50% between 2003 and 2004. UPS which is the world’s largest package-delivery company and dominant parcel carrier in US, serving 200 cities in 2003. FedEx had†¦show more content†¦Ever true to its humble origins, the company maintains its reputation for integrity, reliability, employee ownership, and customer service. For UPS, the future promises even more accomplishments as the next chapter in the company s history is written. III. THE BATTLE BETWEEN FEDEX AND UPS 1. Competition in the Express-Delivery Market a. Percentage of large shippers FEDEX RULES AIRS AND UPS RULES GROUND (%) Overall, the two companies split the small segment of the Express-Delivery market. There are ground market and air-express market. While UPS has dominated the ground area, the air-express has often been FedEx’s playground. b. Capital-investment expenditures The graph shows that from 1992 to 2003, cumulative capital Expenditures of FedEx and UPS regularly rise. Although the FedEx’s CCE is more than UPS, during this period, the two companies matched each other’s investments in capital almost exactly. c. Price competition Table1: Summary of Announced List-Rate Increase UPS 1998 1999 2000 2001 2002 2003 2004 Average UPS ground 3.6% 2.5% 3.1% 3.1% 3.5% 3.9% 1.9% 3.1% U.S domestic air 3.3% 2.5% 3.5% 3.7% 4.0% 3.2% 2.9% 3.3% U.S export 0.0% 0.0% 2.9% 2.9% 3.9% 2.9% 2.9% 2.2% FedEx 1998 1999 2000 2001 2002 2003 2004 Average FedEx ground 3.6% 2.5% 3.1% 3.1% 3.5% 3.9% 1.9% 3.1% U.S domestic air 3.5% 2.8% 0.0%Show MoreRelatedUnited States Post Office Dilemma5655 Words   |  23 Pagesï » ¿ United States Post Office Dilemma Sustainable Solutions Paper The Post Office Department known as the United States Postal Services (USPS) (Annual Report, 2009) today, is a dominate player in the mail delivery arena and has been existence since 1776. The Post Office was originally a governmental agency, but due to mismanagement by Congress, was reorganized in 1971 and no longer a part of the presidential cabinet; but became an independent establishment of the executive branchRead MoreInvestment and Economic Moats46074 Words   |  185 PagesWEALTH ffirs.indd i 2/1/08 12:55:36 PM Little Book Big Profits Series In the Little Book Big Profits series, the brightest icons in the financial world write on topics that range from tried-and-true investment strategies to tomorrow’s new trends. Each book offers a unique perspective on investing, allowing the reader to pick and choose from the very best in investment advice today. Books in the Little Book Big Profits series include: The Little Book That Beats the Market, where JoelRead MoreMarketing and Financial Markets41809 Words   |  168 PagesConsumer Buying Behavior 192 8. Business Markets and Buying Behavior 222 9. Reaching Global Markets 244 Part 5: Product decisions 279 10. 11. 12. 13. Product Concepts 280 developing and Managing Products 304 Branding and Packaging 326 Services Marketing 354 Part 6: distribution decisions 385 14. Marketing Channels and Supply-Chain Management 386 15. Retailing, direct Marketing, and Wholesaling 422 Part 7: Promotion decisions 457 16. integrated Marketing Communications 458 17Read MoreBa 462 6-1011372 Words   |  46 Pagesor should be troubled businesses which will create above-average returns only after restructuringd. whether to integrate backward or forward. | b. what product markets and businesses the firm should be in (p.158) | The ultimate test of the value of a corporate-level strategy is whether the  a. corporation earns a great deal of money.b. top management team is satisfied with the corporation s performance.c. businesses in the portfolio are worth more under the management of the company in questionRead MoreCorporate Social Responsibility : Supply Chain to Value Chain8966 Words   |  36 Pages387 From supply chains to value chains: A spotlight on CSR Malika Bhandarkar and Tarcisio Alvarez-Rivero* 1. Introduction Corporate social responsibility (CSR)1 has become a hot topic in boardrooms across the world. Changes in corporate value systems are being driven by pressures from different actors, including governments, consumers, non-governmental organizations (NGOs) and institutional investors (diagram 1). Multinational corporations (MNCs) have operations spread across the globe, relyingRead MoreManagement Course: Mba−10 General Management215330 Words   |  862 PagesFourth Edition Jones−George Driving Shareholder Value Morin−Jarrell Leadership, Fifth Edition Hughes−Ginnett−Curphy The Art of M A: Merger/Acquisitions/Buyout Guide, Third Edition Reed−Lajoux and others . . . This book was printed on recycled paper. Management http://www.mhhe.com/primis/online/ Copyright  ©2005 by The McGraw−Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of thisRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 PagesYork San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editorial Director: Sally Yagan Director of Editorial Services: Ashley Santora Acquisitions Editor: Brian Mickelson Editorial Project Manager: Sarah Holle Editorial Assistant: Ashlee Bradbury VP Director of Marketing: Patrice Lumumba Jones Senior Marketing Manager: Nikki Ayana Jones Senior Managing Editor: JudyRead MoreMarketing Management130471 Words   |  522 PagesMarketing Communication Advertising management Sales promotion Personal selling Public relations Understanding individual consumer behaviour Understanding industrial consumer behaviour Customer satisfaction Customer relationship management Marketing of services Rural marketing Types of marketing research Process of marketing research Tools and Techniques of marketing research Applications of marketing research Preparation of marketing research report Online marketing E-commerce Trends in marketing PageRead MoreGp Essay Mainpoints24643 Words   |  99 Pagesvs. Traditional b. New: narcissistic? c. Government Censorship d. Profit-driven Media e. Advertising f. Private life of public figures g. Celebrity as a role model h. Blame media for our problems i. Power + Responsibility of Media j. Media ethics k. New Media and Democracy 2. Science/Tech a. Science and Ethics b. Government and scientist role in science c. Rely too much on technology? d. Nuclear technology e. Genetic modification f. Right tech for wrongRead MoreStrategic Human Resource Management View.Pdf Uploaded Successfully133347 Words   |  534 Pagesincluding photocopying and recording, or by any information storage or retrieval system, must be arranged with the individual copyright holders noted. This special edition published in cooperation with Pearson Custom Publishing. Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 Please visit our web site at www.pearsoncustom.com ISBN 0–536–72690–6 BA 996748 PEARSON CUSTOM PUBLISHING 75 Arlington Street, Suite 300 Boston, MA 02116 A Pearson Education Company iii iv Table