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Fedex case study operations management
Fedex case study
Fedex case study
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Leadership
Management’s application of leadership is crucial in the continued drive to maintain employee engagement inside the company, as well as with suppliers. FedEx depends on engaged employees to execute operations at all levels. This commitment is tethered to the third element of FedEx’s mission; “FedEx will strive to develop mutually rewarding relationships with its team members, partners, and suppliers. Safety will be the first consideration in all operations (FedEx2, n.d.).” The company commissioned Real Time Performance (n.d.) to study and evaluate employee engagement through a “360-feedback” process. The study was commissioned to identify crucial leadership strengths and weaknesses, understand higher than normal turn-over rates
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Part of the role of leadership is to understand his or her employees, but it’s equally important, in a fast paced industry like air cargo, to listen to employees input and ideas. Entry and mid-level employees see the tactical side of the industry in a real sense. They see the “what and why” of a delay in movement of packages, or an aircraft’s departure, or something as simple as effective staging of support equipment. Effective leaders communicate with employees and managers to understand how efficiencies can be gained and implemented (AON, …show more content…
The system defines the application of control as it relates to phases of management. According to Paul Tronser (2008) the system is much like a Pentagon command bunker. It has hundreds of displays, showing the real time status of over 600 aircraft and 47,000 delivery vehicles, as well as current weather conditions and , just to name a few. The overall operations are managed on a strategic and regional scale from the building. FedEx affirms the value of the system; “it is a relational database that coordinates FedEx logistics worldwide. In fact, Command and Control is the largest UNIX undertaking in the commercial world. The system uses satellite and computer communications technology to monitor routing and traffic information in real time and acts as a weather management tool” (FedEx 4, 2015, para. 3). When problems arise, such as weather, traffic, or any number of situations that can affect operations, the Command Center is able to react in near real time. Constant data and information updates through the satellite linked system allow managers in the Command Center to reroute aircraft or vehicles, contact regional or local managers to take corrective action as needed. The system is a recurring evaluation of current practices that adjust to the fluid environment of operating in a global
Abrashoff shares the valuable management skills he developed and effectively illustrates examples of how one can translate the same success in today’s businesses. Highlighting key concepts such as: see the ship through the eyes of the crew, communicate purpose and meaning, lead by example, and build up your people. The vivid examples he uses from his naval history make the reading interesting while educational. It’s Your Ship is a great book for any manager wanting to learn more on effective ways to better manage his employees.
Southwest Airlines is one of the most successful airlines in the United States. There has never been layoffs or strikes in the history of the company, although there were several times when layoffs could have been justified, including the months following the September 11, 2001 terrorist attacks. However, Southwest's Mission statement says “Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer.” (Southwest, 1988). The Airline has always believed that their corporate culture is one of the keys to their success. The culture recognizes that employees have emotional intelligence and that their attitudes and morale are key to the teamwork and creative environment.
The United Parcel Service known also as the “Brown Giant” is the powerhouse in the air delivery, freight and parcel service industry. The United Parcel Service is based in Atlanta and is the world’s largest package-delivery firm. UPS delivers more than 3 billion parcels and documents per year. United Parcel Service operates 150,000 vehicles and 575 airplanes and is the dominating force in the United States ground delivery market. UPS is announcing that it’s ever expanding company with new acquisitions in the Asia/Pacific region, Latin America, and Europe. With its bureaucratic approach to the company’s management system with tight rules and regulations, and a well-defined division of labor in each plant from top to bottom is key in there success. The company has daily worksheet to specify goals and the work output. The daily employee quotas and achievements are reported on a weekly and monthly basis. I have experienced this bureaucratic approach to management first hand as an employee at UPS. From my experience there, I have seen how the company works from the inside out. I hope to relate valuable information that I gained there in my assignment to develop and analyze the management aspects of the United Parcel Service. I will cover key issues in the basic management structure of UPS including the external factors that shape the organization of the company, recent challenges to UPS.
Leadership directly impacts an organization's bottom line, employee satisfaction, and turnover; it can impact how the organization is viewed by society and in particular its marketing audience. This is particularly significant during a downturn in economic markets. Organizations must meet budgetary controls, and need to communicate...
A manager’s leadership style must influence staff and others to take them seriously. A manager sets the tempo for the employees’ work ethic. Effective leadership from healthcare managers is important to the modern healthcare reform (Kumar, 2013). Leadership engagement in healthcare explains how a problem could affect a healthcare organization. Managers that hold leadership roles must adopt a certain style that can be functional for his or her initial organization to be successful. Performance improvement can be a very serious aspect of leadership engagement (Croxton, 2011). Healthcare managers need to have people from all areas involved to work effectively. Without the consistency of getting all staff and physicians involved, the organization may suffer greatly.
Operations management focuses on carefully managing the processes to reduce and distribute products and services. Related activities include managing purchases, inventory control, quality control, storages, logistics and evaluations. A great deal of focus is on efficiency and effectiveness of processes. Therefore, operations management often includes substantial measurement and analysis of internal processes. Ultimately, the nature of how the operations management is carried out in an organisation depends very much on the nature of products or services in the organisation, for example, retail, manufacturing, wholesale and etcetera.
FedEx Marketing Mix Federal Express is an express transportation company, founded in 1973 by Frederick W. Smith. During his college years, he recognized that the United States was becoming a service-oriented economy and needed a reliable, overnight delivery service company designed to solely transport packages and documents. He wrote a Yale term paper on this idea and received a C. His professor thought it would never work. Fortunately for Frederick Smith, he did not take it to heart and ended up building the company he dreamed of. FedEx Express now delivers about 3.7 million packages per day throughout the United States and to some 210 countries worldwide.
Over the years, FedEx has continued to strengthen its fleet by acquiring similar business in other countries, and they continue to do so. Sometimes these are the only major competition in that country, which leads to FedEx being a super power in those areas. FedEx has a strong marketing concept that allows them to build their products together and add value to their products and suites. However, sometimes FedEx has not researched successfully in the past, which caused loss of niche parts of the company including their fax services and the intra-European delivery services. Looking forward, FedEx has the opportunity to continue to grow their business with the advancement of other economies growing since FedEx has such a vast empire already established. This will allow them to continue to have a competitive advantage. FedEx will need to consider its threats in order to continue its success. The threats that FedEx has to face are not only outside competition from other carriers and delivery providers and rising operation costs but also can be seen from developing technology. As more people rely on email and instan...
On an organisational level employee engagement is said to contribute to customer loyalty, profitability, employee turnover (Hayes, T. 2002) stakeholder return, growth (Sask, A. 2005; Heskett et al, 2002) out-performing competition, employee performance quality (Seijts & Crim, 2006), reputation, increase in sales (Kings & Grace, 2004) and customer satisfaction (Heskett et al, 2002).
Researcher Susan David conducted a study of business units that had extremely engaged employees. When she asked the employees what was behind their outstanding engagement scores, only 4 percent mentioned pay. (3)
The United Parcel Service (UPS) is a US fortune 500 company founded in 1907, which is becoming one of today’s largest global largest provider of parcel delivery, with approximately 12 Million package a day and that of 80% of it prior to strike in United States.
Former General Electric CEO Jack Welch cites “employee engagement as the most crucial measure of a company’s health—more important than customer satisfaction or cash flow.”
Gallup Inc, an American performance management consulting conducts annual surveys of companies aross hundreds of countries to analyse engagement levels and their impact on performance. The following is a summary of their findings in the “State of the Global Workforce, 2013” report.
As a result of the increasingly high competition and technological advancement in the global business environment, customers now have a much greater choice of where to do business. While customers have more discretionary power than ever before, the modern society lays more emphasis on the value of time as opposed to the value of money. In light of this, high levels of engagement within an organization not only promote retention of talent, but also foster customer loyalty and enhance organizational performance, which in turn promotes shareholder value (Lockwood, 2007). Employee engagement is therefore critical for business
As per a CEO of a business group, “To win in the marketplace you must initially win in the workplace.” Employee engagement is the key to activating a high operating workforce.