As a freight trucking provider, Knight-Swift Transportation (KNX) faces a litany of potential risks and there is a strong need for enterprise risk management. Given the competitive nature of the industry, small mispricing’s on shipping costs or incorrect fuel cost projections can have devastatingly negative effects on company profitability. New regulation from the Federal Motor Carrier Safety Administration (FMCSA), in an effort to enact stricter rules on diver logging and limiting weekly travel hours could have adverse effect on the company. Additionally, talent acquisition/retention poses as a rising threat to Knight-Swift Transportation . The long hours on the road and limited base pay can make it hard to find motived drivers to work. The
UPS is performing better than FedEx in financial performances. From 1997-1999, UPS reported average net profit margins of 6.5% while FedEx¡¦s was 2.8% and ROE of 25.2% for UPS and 10.6% for FedEx. Although UPS¡¦s net income in 1999 dropped significantly, it was result of a tax dispute, which should not affect the sustainability of the UPS financial performance. One of the factors driving this performance is the growth in the international delivery business. International operations in 1999 has accounted for 13% of the UPS¡¦s revenues and 5% of the operating profits. International package revenue grew 50% since 1994 and international...
Identify the potential risks which affect the company and manage these risks within its risk appetite;
UPS has been experiencing increasing fuel costs lately, as a result of energy prices that are escalating around the world. As a logistics provider, fuel costs account for a significant part of operating costs at UPS. Thus, an increase in fuel costs jeopardizes directly the organization’s profitability (see Exhibit 1).
Airline and travel industry profitability has been strapped by a series of events starting with a recession in business travel after the dotcom bust, followed by 9/11, the SARS epidemic, the Iraq wars, rising aviation turbine fuel prices, and the challenge from low-cost carriers. (Narayan Pandit, 2005) The fallout from rising fuel prices has been so extreme that any efficiency gains that airlines attempted to make could not make up for structural problems where labor costs remained high and low cost competition had continued to drive down yields or average fares at leading hub airports. In the last decade, US airlines alone had a yearly average of net losses of $9.1 billion (Coombs, 2011).
The United States-based Company Federal Express is a package delivery and logistics company that has been one of the biggest players in the local and international industry for almost three decades. Reports and evidences suggest that FedEx’s strategic competitiveness, resilience, and large-scale and continuous growth in the industry have been largely fueled by its obsession with, a...
Ford Motors is currently facing many challenges to stay at the top of the automobile market, both in and outside the US. Two of the most imminent dangers facing the company currently are high labor costs relative to the company’s total revenue and the challenge of maintaining a sustainable competitive advantage over its primary competitors GM and Toyota.
agreed to keep a stretch of road in good repair if they could charge a
Extend existing cycle path along Margaret Mcadi Avenue to Boatmans Road and over the bridge into Albert Park
The company recognizes that it is subject to both market and industry risks. We believe our risks are as follows, and we are addressing each as indicated.
Kilkenny, S.. (2010). The Future of the U.S. Auto Industry. Network Journal, 17(8), 10-11. Retrieved August 1, 2011, from Entrepreneurship. (Document ID: 2193431391).
An aviation industry such as Qantas tends to experience high fuel cost from past few years. This is considered a norm for a service industry to have this particular risk and in addition, Qantas is also facing losses due to exchange rate fluctuations as the organization is buying its fuel in US dollars. These risks consists of the following balance related objective, “Accuracy and completeness”.
Commercial Transportation – Taxis, logistic firms may face financial crisis due to failure in tracking the goods.
ton mileage over the past 30 years. This is mostly due to the increase in truck
The history of transportation technologies over the past 800 years greatly changed human civilization. Due to the emergence of these technologies allowed humans to benefit in all sorts of ways throughout the world. It has caused a shift in the way people live and the way countries interact with each other. transportation is directly linked to the process of globalization, the efficacy of moving goods and people will directly affect the economic system we live in. Moving people faster or over long distances, moving cargo faster or more of it has been an evolution of many different civilizations knowledge and thirst for a better economy. I will be breaking this evolution into four pivotal eras in the development of transportation technologies.
Methods of transportation have always occupied a certain niche in society. Beyond their obvious practical use, transports from horses to speed boats to sports cars embody the romance and intrigue of travel. However, beyond the obvious effect low fuel-efficiency standards have had on pollution in the United States and elsewhere, the environmental impacts of transportation are rarely taken into account. Advances in transportation have had two main effects on the environment. Technological advances in transportation are some of the direct reasons behind particulate emissions, global warming and other pollution problems of the industrial age. In addition, transportation has neutralized barriers to diffusion across the world, ensuring the spread of innovation, technology and disease around the world.