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Fed-Ex Case Study In 1971 FedEx Express developed the modern air/ground express industry; in 1998 the corporation was created as FDX Corp. and became FedEx Corp. in January of 2000. 1. History and Background of the company 2. Identifying the success in Management 3. Analysis and Evaluation 4. Action Plan and Recommendations 5. Fed-Ex Today History Throughout its history, FedEx has been a leader in the transportation and information industry. In 1965, Yale University undergraduate Frederick W. Smith wrote a term paper about the passenger route systems used by most airfreight shippers, which he viewed as economically inadequate. Smith wrote of the need for shippers to have a system designed specifically for airfreight that could accommodate time-sensitive shipments such as medicines, computer parts and electronics. In August of 1971 following a stint in the military, Smith bought controlling interest in Arkansas Aviation Sales, located in Little Rock, Ark. While operating his new firm, Smith identified the tremendous difficulty in getting packages and other airfreight delivered within one to two days. This dilemma motivated him to do the necessary research for resolving the inefficient distribution system. Thus, the idea for Federal Express was born: a company that revolutionized global business practices and now defines speed and reliability. Federal Express was so-named due to the patriotic meaning associated with the word "Federal," which suggested an interest in nationwide economic activity. At that time, Smith hoped to obtain a contract with the Federal Reserve Bank and, although the proposal was denied, he believed the name was a particularly good one for attracting public attention and maintaining name recognition. 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. On that night, Federal Express delivered 186 packages to 25 U.S. cities from Rochester, NY, to Miami, Fla. Company headquarters were moved to Memphis, Tenn., a city selected for its geographical center to the original target market cities for small packages. In addition, the Memphis weather was excellent and rarely caused closures at Memphis International Airport. The airport was also willing to make the necessary improvements for the operation and had additional hangar space readily available. In the mid-1970s, Federal Express took a leading role in lobbying for air cargo deregulation that finally came in 1977.
This case is about an experienced city postal carrier who has recently filled a position at a small town post office and has difficulty adjusting to a different way of life. The central characters include: Larry (the postmaster of Foster Creek), Jim (a senior carrier) and George (a senior carrier). The Foster Creek Post Office exists in a small town and the typical way of life is carried through at the post office. Harry has arrived at Foster from a fast-paced big city post office. Upon his arrival Harry is introduced to his new co-workers where he gives a shy hello and immediately begins his regular duties. Harry expresses no interest in becoming socially involved with Foster Creek and becomes further alienated from his co-workers. His remarkable efficiency and desire to complete his required work as well as any remaining incomplete work causes resentment towards his presence by the senior carriers. Larry is currently faced with the task of placing Harry with enough work to keep him occupied while maintaining harmony among the rest of the employees. His first suggestion is to lengthen Harry’s route, however the senior carriers disagree with Larry’s proposition.
Prior to Fuller’s transfer, management at the Carson’s location was poorly run using the classical approach. While this approach can be successful, management has to find a good middle ground between caring for the company and caring about their employees. A traditional classical approach recognizes that there are five important factors to running a successful business (Miller, 19). According to text, these factors are planning, organizing, command, coordination and control (Miller, 19-20). These factors can be seen when you look at Third Bank as a whole. In the study, the CEO saw the issues in his company and put a plan together to improve. He had meetings with management, like fuller, to organize a solution. He then commanded all locations
Delta Airlines has been a vibrant company in the airline industry, with great success over the years. Delta airlines started as a crops dusting company to serving more than 572 destinations, in 65 countries on six continents (Allan, H., David. H. ,2012). Delta airline moved its headquarters from Monroe, Louisiana to the city of Atlanta, Georgia. The great management strategies have portrayed from time to time to be fruitful even in the verge of a recession. With these consistency in delivery of services, it is clear that the company is out to outdo its competitors and turn out to be the greatest airline in the world.
UPS started delivering packages by air as early as 1929 with United Airlines operating ford Tri-motors. UPS’s first airline venture started as a 50/50 partnership with DHL in a company called International Parcel Express (IPX). IPX hired a group of former Transamerica employees to gain the air carrier certificate. With 60 aircraft in the fleet of IPX by 1987, it was becoming difficult to manage with all the different contract carriers and aircraft. UPS announced it would be taking over all air operations in 1988 and using the IPX certificate as the basis for UPS airlines. UPS Airlines started on January 28th 1988. Ten months after receiving the operating certificate from the FAA, UPS Airlines had grown to an operation of 94 aircraft. UPS airline was the fastest growing airline in FAA history.
The original Frontier Airlines was Denver's hometown carrier for 40 years before it folded its wings in 1986 following its purchase by New Jersey-based People Express. The former Frontier carried 87 million passengers over the years and was nationally recognized for both the quality of its service and its outstanding safety record.
Southwest Airlines roots can be traced back to Texas in the 1960’s where a company by the name of Air Southwest Co. was created to provide interstate flights in Texas to avoid federal aviation laws. This technique of trying to avoid federal regulation was challenged when 3 other major airlines filed a lawsuit against Air Southwest Co.; later the state of Texas upheld Air Southwest Co. right to fly within the state of Texas and the Supreme Court decided not to review the case. (Southwest Airlines, n.d.) This was a challenging start for Southwest as it was being targeted right off the bat by some of its competitors. The company name was changed in the early 1970’s to Southwest Airlines Co. and a headquarters was established in Dallas, TX. The company’s main focus was interstate flights between the 3 major cities in Texas including Dallas, Houston, and San Antonio. (Southwest Airlines, n.d.)
Before 1860 it was virtually impossible to get a letter or other form of correspondence from St. Joseph Missouri to Sacramento California in less than 20 days. 20 days seemed entirely too long for the west coast merchants and bankers to wait for documents from the east. So three men, William Russell, Alexander Majors and William Waddell created the Pony Express. The Pony Express ensured fast and safe delivery of the mail.
The United Parcel Service has taken steps to restructure itself from an operations-oriented company into a market driven industry. Recent findings suggested the need to achieve better external customer satisfaction. The steps taken were to improve the overall of all customers that utilize the services at UPS. Other key areas that need improvement are volume logistics and customer logistics. The main priority at UPS is to deliver the package on time. They provide a much-anticipated alternative to the monopoly of the United States Postal Service. This competitor has been unreliable on multiple occasions. The average customer is feed up with the inconsistencies of the United States Postal Service. Unlike this company, the United Parcel Service helped define the word efficiency. Even from the earliest days, when Jim Casey and Claude Ryan, two Seattle teens, gave life to the now world-known UPS delivery company. ”Management is the...
Sheridan Garrison was committed to connecting with their people to ascertain how they felt though constant communication. FedEx and scriptures put emphasis on building trust and putting the needs of other before your own. Employee satisfaction results from the experience of one’s job and the atmosphere. Consistent with Brown, Gray, McHardy, &Taylor (2015), employee trust within the workplace influences workplace performance. Furthermore, Philippians 2:4-5 conveys that we should not only look out for our own interests, but take an interest in others, as well. You must have the same attitude that Christ had. FedEx Freight’s policy and scripture are very similar. They both relate to putting the needs of others before your own and the importance of trust in our leadership. Isaiah 26:3-4 declares that the Lord will keep him in perfect peace whose mind is stayed on him, because he trusts in him. Trust in the Lord forever, for the Lord God is an everlasting
More than 37 years ago, Rollin King and Herb Kelleher got together and decided to start a different kind of airline. They began with one simple notion: If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline. And you know what? They were right. What began as a small Texas airline has grown to become one of the largest airlines in America. Today, Southwest Airlines flies over 104 million passengers a year to 64 great cities all across the country, and we do it more than 3,400 times a day.
AAL: Description//History: Starting with American Airlines Group Inc. or AAL, this company runs in the airline industry, as you can tell by the name. Originally known as American Airlines but recently changed its name, adding in “group”, as of December 2013. The airline has traveled to over 54 countries, operating on 6,700 flights a day to more than 300 destinations, holding a daily number of 500k passengers! The airline was founded in 1930 where its headquarter lies near the city of Dallas. (AAL Profile | American Airlines Group, Inc. Stock - Yahoo! Finance) Although the airline initially was placed in New York as a head quarter, where it first started its stock exchange on June 10th of 1939 but that soon transitioned to Texas. AAL became one of the biggest airlines in the world creating over 900,000 jobs worldwide, contributing to almost 100 billion dollars to the United States and other international economies. They also backed up 1,400 organizations around the world! The making of the company was back on April 15th 1926 when a fresh pilot named Charles A. Lindbergh sent off a pack of mail on a small biplane traveling with it to St. Louis. Lindbergh was already a chief pilot of the second airline company to do the actions of sending airmail. This airline being Robertson Aircraft Corporation of Missouri and is recognized as one of the airlines that emerged with AAL. The alliance began in 1929 and in 1930 more companies emerged together and formed what is now American Airlines! (American Airlines Group) (HISTORY OF AMR CORPORATION AND AMERICAN AIRLINES)
A switch from premium overnight services to lower – margin deferred services and ground delivery services is an advantage to Airborne Express. With existing assets including trucks, tracking systems, regional hubs and sorting facilities, they only need minor initial investments to develop fully these kinds of services. They should use these assets wisely and effectively.
In the past when Southwest was unique in its approach to airline service, the company did not really have competitors within the airline industry (of course, Southwest had rivals, but the company managed to find its' place on the market). As one of the managers said, they were competing more with on-land transportation means (such as busses and trains) rather than with other airlines. From 1980s the situation in the airline industry started to become more unfavorable with companies loosing money and going bankrupt. At that time American airline companies realized that they can probably deal with these problems by copying the Southwest Airline's concept (as Southwest has been profitable in all years of its; operations). In the first part of 1990s two companies Continental and United launched their own low cost carriers and Southwest was concerned with the new competition. In fact these companies had plenty of time to analyze Southwest's model and they could copy their ...
When the scandal of American express came to light. Warren Buffet believed American express shouldn’t have to pay the sixty million it offered to pay but rather they should have to accept blame and admit to. Buffett even at his own expense offered to testify describing how management was trying to plan to settle. American express ended up paying out large amounts of money; however, was able to bounce back and get its company’s stock back up by 1964. Many were surprised when Buffett wanted to testify because even though he was notorious for being honest just like his father but he had never tried to turn his investments into a place where all their secrets were out in the open.
United Airlines and Continental Airlines have a very interesting, rich, and almost ironic history. Varney Airlines and air mail service was started by Walter Varney in the early 1920’s and became the United States of America’s first fully functioning airline. During the early 1930s, Varney Airlines began to operate in El Paso Texas, with only six employees made up of only two pilots. After Varney moved its headquarters several times it finally came to rest in Denver in 1937. According to the Texas State Historical Association, “Robert F. Six became president in 1938 and held the position for more than 20 years” (Odintz). This made him one of the longest serving presidents in the company’s...