Wednesday, December 1, 2010
Would I want to be a customer? an employee?
Well, I suppose I am an occasional customer. Although we seem to use UPS more routinely at work, I don't have a stronger loyalty to one shipping company or the other, and have never had any major problems using either FedEx, UPS or USPS. As far as employment, I am not sure. In the first quarter 2011 earning call, the Fred Smith discusses the company's People-Service-Profit philosophy in response to questions about consolidation of FedEx freight, which involved closure of some facilities and a reduction in headcount. If I worked there I would definitely want to already have high seniority.
Most Interesting...
What I found most interesting was the story of FedEx founder Fred Smith. According to wikipedia, he wrote a paper "outlining overnight delivery service in a computer information age" for an economics class at Yale, had spent time as an amateur pilot, and was later a forward air controller in the Marines before eventually investing in an aircraft maintenance company and then founding Federal Express. He did have the advantage of inherited wealth as starter money...
http://en.wikipedia.org/wiki/Frederick_W._Smith
http://en.wikipedia.org/wiki/Frederick_W._Smith
Stock Price Update and progress since August 27
FedEx's stock price is at 93.99, up 2.87. Comparing to August 27, it is up 13.53 from 80.46, so I would be glad to be an investor in FedEx stock. A $1000 investment would have bought 12.4 shares, returning $168 over about 3 months.
Tuesday, November 23, 2010
more on corporate culture
The discussion below from website http://www.vault.com/wps/portal/usa/companies/company-profile/FedEx-Corporation?companyId=783
reinforces the concept described in the text book for Perpetuating the Culture by screening new hires for fit with the culture:
Ship shape
Sources describe the interviews at FedEx as "intensive." One says, "I had three rounds of interviews and they followed up with my references as well as outside sources. Drug testing. A lot of "scenario" questions and what I thought FedEx was about. It is a really good idea to do a lot of research on the company before the interview and talk to current employees in the position you are interviewing for in advance." His colleague adds that he had "three rounds of interviews with managers, directors and potential co-workers. Behavioral interview questions were prepared and distributed to the interviewers prior to the interview."
reinforces the concept described in the text book for Perpetuating the Culture by screening new hires for fit with the culture:
Ship shape
Sources describe the interviews at FedEx as "intensive." One says, "I had three rounds of interviews and they followed up with my references as well as outside sources. Drug testing. A lot of "scenario" questions and what I thought FedEx was about. It is a really good idea to do a lot of research on the company before the interview and talk to current employees in the position you are interviewing for in advance." His colleague adds that he had "three rounds of interviews with managers, directors and potential co-workers. Behavioral interview questions were prepared and distributed to the interviewers prior to the interview."
Thursday, November 18, 2010
Assignment 12 Corporate Culture
Chapter 12 actually included a specific example for the FedEx culture, in the section where they give examples of heroic acts that have become part of the folklore of different companies. For FedEx, the example was a delivery man who went to great efforts to ensure that items in a drop box were processed and delivered on time, despite the challenge of not having the right key for the drop box. I think this example fits with the predominant image of FedEx, as an extremely reliable service with dedicated workers. There seems to be a strong culture, and with founder Fred Smith still the Chairman and CEO there is probably a "founder effect".
FedEx Chairman Fred Smith to Receive the Aero Club of Southern California’s 2010 Howard Hughes Memorial Award Business Wire from previous posting
The gleaming image is not the only one out there though. There are the views that the FedEx is shirking responsibility to the workers by continuing to use a large number of contract employees and do what they can to avoid the organization of labor unions.
FedEx Chairman Fred Smith to Receive the Aero Club of Southern California’s 2010 Howard Hughes Memorial Award Business Wire from previous posting
The gleaming image is not the only one out there though. There are the views that the FedEx is shirking responsibility to the workers by continuing to use a large number of contract employees and do what they can to avoid the organization of labor unions.
Sunday, November 14, 2010
Looking forward to holiday shopping season?
I would say yes. I have been hearing about fierce competition from retailers like Wal-Mart and Target offering free shipping during the holidays to match deals from Amazon, etc., so maybe will be even more shipping this year than usual.
Chapter 11
FedEx is mentioned in the Information Systems section of Chapter 11, noted for its internal communication systems that aid in coordinating "76,000-plus vehicles in handling an average of 5.5 million packages a day". This section also mentions their sophisticated flight operation system and e-business tools for customers.
The article in the link below expands on the IT at FedEx and touches upon ISO certification and six sigma. Sounds like they don't exactly have a six sigma program overall, but have found some concepts to apply.
http://www.enterpriseleadership.org/blogs/Articles/2007/08/27/interview-rob-carter--fedex-cio-says-it-matters
The article in the link below expands on the IT at FedEx and touches upon ISO certification and six sigma. Sounds like they don't exactly have a six sigma program overall, but have found some concepts to apply.
http://www.enterpriseleadership.org/blogs/Articles/2007/08/27/interview-rob-carter--fedex-cio-says-it-matters
Tuesday, November 9, 2010
Tuesday, November 2, 2010
freight prices going up due to tighter security screening?
I have been hearing on the news recently about this, in light of the intercepted explosives shipped from Yemen. will try to locate some articles and add links to this post.
Thursday, October 21, 2010
FedEx Acquisitions
In 2007, FedEx made 5 acquisitions including Flying Cargo, Hungary; Tianjin Domestic Express, China; and Prakash Airfreight, India. There were a couple of acquisitions in 2006 and 2004 (Kinkos for one).
Friday, October 15, 2010
more on FedEx in China
http://about.fedex.designcdt.com/our_company/company_information/regional_facts
FedEx Express President, Asia Pacific Region (APAC): David L. Cunningham
Headquarters: Hong Kong, China
Employees and Contractors: More than 14,000
Stations: Located in all major cities in Asia
Main Hubs: Subic Bay, Philippines; Guangzhou, China
Countries and Territories Served: More than 30
Airports Served Directly: More than 20
With more than 14,000 employees, FedEx currently serves more than 30 countries and territories in the Asia Pacific market through its innovative FedEx Asia One network, launched in 1995. This launch included trans-Pacific flights and the creation of an Asia Pacific hub in Subic Bay, which provided overnight intra-Asian delivery among major Asian business centers.
In mainland China, FedEx Express service has led the industry, building solutions and meeting business needs for international customers. In 1996, FedEx became the sole U.S.-based express transportation company with aviation rights to China. In 2004, FedEx received 12 additional rights from the U.S. Department of Transportation to fly cargo aircraft to and from China. FedEx continues to increase flights to China, providing access to more cities across the country and throughout the Asia Pacific region than any other global express provider.
In 2007, FedEx introduced domestic express service within China to more than 19 cities. By 2008, this next-day delivery service has expanded to more than 40 cities, with second-day delivery service reaching customers in more than 200 cities throughout the country. In the first half of 2008, FedEx Office opened 12 new centers in China, with six in Beijing, five in Shanghai and one in southern China.
In late 2008, a new FedEx Express Asia Pacific hub will open in Guangzhou, China. The new hub will feature state-of-the-art technology to support real-time package tracking and an innovative, satellite-based dispatch system.
In addition to its expanding business in the region, FedEx is committed to utilizing its logistics expertise to help improve the quality of life for its customers and employees. In fact, FedEx has transported medical supplies to fight Severe Acute Respiratory Syndrome (SARS) and provided the first private airlift of relief supplies to China following the massive earthquake in Sichuan Province in May 2008.
Regional Facts
Asia FactsFedEx Express President, Asia Pacific Region (APAC): David L. Cunningham
Headquarters: Hong Kong, China
Employees and Contractors: More than 14,000
Stations: Located in all major cities in Asia
Main Hubs: Subic Bay, Philippines; Guangzhou, China
Countries and Territories Served: More than 30
Airports Served Directly: More than 20
With more than 14,000 employees, FedEx currently serves more than 30 countries and territories in the Asia Pacific market through its innovative FedEx Asia One network, launched in 1995. This launch included trans-Pacific flights and the creation of an Asia Pacific hub in Subic Bay, which provided overnight intra-Asian delivery among major Asian business centers.
In mainland China, FedEx Express service has led the industry, building solutions and meeting business needs for international customers. In 1996, FedEx became the sole U.S.-based express transportation company with aviation rights to China. In 2004, FedEx received 12 additional rights from the U.S. Department of Transportation to fly cargo aircraft to and from China. FedEx continues to increase flights to China, providing access to more cities across the country and throughout the Asia Pacific region than any other global express provider.
In 2007, FedEx introduced domestic express service within China to more than 19 cities. By 2008, this next-day delivery service has expanded to more than 40 cities, with second-day delivery service reaching customers in more than 200 cities throughout the country. In the first half of 2008, FedEx Office opened 12 new centers in China, with six in Beijing, five in Shanghai and one in southern China.
In late 2008, a new FedEx Express Asia Pacific hub will open in Guangzhou, China. The new hub will feature state-of-the-art technology to support real-time package tracking and an innovative, satellite-based dispatch system.
In addition to its expanding business in the region, FedEx is committed to utilizing its logistics expertise to help improve the quality of life for its customers and employees. In fact, FedEx has transported medical supplies to fight Severe Acute Respiratory Syndrome (SARS) and provided the first private airlift of relief supplies to China following the massive earthquake in Sichuan Province in May 2008.
FedEx in China
FedEx definitely has a lot of business in China. much of it is transporting goods from China, but they also have delivery services within China. you can even view the FedEx China website in English. here is a link to a page where they give info on service during an upcoming event in Shanghai:
http://www.fedex.com/cn_english/about/local/servicenews/Expo_index.html
here is an older (2006) article from Forbes.com concerning FedEx in China.
http://www.forbes.com/2006/09/28/china-shipping-fedex-biz-logistics-cx_rm_1002fedex.html
http://www.fedex.com/cn_english/about/local/servicenews/Expo_index.html
here is an older (2006) article from Forbes.com concerning FedEx in China.
http://www.forbes.com/2006/09/28/china-shipping-fedex-biz-logistics-cx_rm_1002fedex.html
Friday, October 8, 2010
FedEx, Vertical Integration and OutSourcing
It seems that FedEx is about as vertically integrated as they would like to be. It makes sense that they continue to out-source things like maintenance of airplanes. I had read something that suggested FedEx could get in the business of making energy-efficient trucks, and work on building more of a truck fleet. this may be a stretch, too far from their areas of expertise.
FedEx - which of the five strategies employed?
In considering which of the five generic strategies is used by FedEx, I immediately ruled out the low-cost provider, best-cost provider, and market niche based on low-cost because in comparing prices between the package carriers, they don't seem to be using price as their main selling point. Prices were pretty well in-line with other providers, though lowest provider can vary depending on shipping location, package size, and weight. I see them in the category of Broad Differentiation. They are offering many services in their overall category to appeal to different users (business, home, large and small package, freight, and copy/print services). They offer differentiated service in the late dropoff offered and early delivery times.
Monday, October 4, 2010
Friday, October 1, 2010
Strengths and Weaknesses
FedEx has an extremely well-known brand, and has solid financial resources to use for capital improvements such as equipment upgrades that can lower costs and add capacity as needed. Another strength is their ability to manage information to maximize efficiency of both package transportation, and the efficient use of vehicles. they tout their ability to receive packages longer at end of work day and have arrivals early in am. They have some cost advantages in the way they utilize contract drivers. I could not come up with much in the way of inherent weakness, but they are susceptible to external threats (unionization, legislation, possible costs increases if CAP and Trade for emissions comes about... I wanted to list their dependence on fuel as weakness, but that is same for all in industry, and they seem to have done ok at passing on costs in the form of fuel surcharges.
Wednesday, September 29, 2010
Quarterly Earnings transcript, and comment on previous fiscal year
FedEx CEO Discusses F1Q2011 Results - Earnings Call Transcript
See link above for transcript of the earnings call. Looks like FedEx's fiscal year ends May 31, so the transcript above would be for June, July, August, which is the first quarter in fiscal year 2011.
The paragraph below is from this page on the fedex website: http://ir.fedex.com/financials-KeyRatios.cfm.
For the year ended May 31, 2010, FedEx Corporation's revenues declined 2% to $34.7 billion. In the first half of the fiscal year, earnings were down year over year, but in the second half, major global economies began emerging from the recession and FedEx's volumes grew accordingly. The company finished the year strong with net income of $1.2 billion, and the company's share price rose by more than 50% over the course of the fiscal year, outpacing the S&P 500, the Dow Jones Industrial Average and the Dow Jones Transporation Average.
See link above for transcript of the earnings call. Looks like FedEx's fiscal year ends May 31, so the transcript above would be for June, July, August, which is the first quarter in fiscal year 2011.
The paragraph below is from this page on the fedex website: http://ir.fedex.com/financials-KeyRatios.cfm.
For the year ended May 31, 2010, FedEx Corporation's revenues declined 2% to $34.7 billion. In the first half of the fiscal year, earnings were down year over year, but in the second half, major global economies began emerging from the recession and FedEx's volumes grew accordingly. The company finished the year strong with net income of $1.2 billion, and the company's share price rose by more than 50% over the course of the fiscal year, outpacing the S&P 500, the Dow Jones Industrial Average and the Dow Jones Transporation Average.
Stock Price Update - down a bit
http://www.fedex.com/us/investorrelations/stockinfo/
I tried a different source for today's stock price update - the Stock Info page on FedEx's Investor Relations site. down a little today, at 84.69 (-.02). of course, numbers are very close to what shows on Google Finance a few minutes ago: 84.57, -.14 (-0.17%).
I tried a different source for today's stock price update - the Stock Info page on FedEx's Investor Relations site. down a little today, at 84.69 (-.02). of course, numbers are very close to what shows on Google Finance a few minutes ago: 84.57, -.14 (-0.17%).
Friday, September 24, 2010
Tuesday, September 21, 2010
Facebook page
http://www.facebook.com/FedEx
The profile is very basic. Describes different services, gives website address.
Does have a Discussion Board under the Boxes tab. Mostly customers and employees airing complaints. No company officials chiming in.
The profile is very basic. Describes different services, gives website address.
Does have a Discussion Board under the Boxes tab. Mostly customers and employees airing complaints. No company officials chiming in.
answer to question in comment
I received a comment or 2, inquiring about the August 28 posting of an article regarding a fatal incident involving a FedEx employee (mainly wondering why I chose to post that, and if it had any impact on stock price). Well, for stock price, I doubt there was any impact. Stock prices have been up almost every time I check and post them. The reason it caught my eye is that I work in the steel industry, which can have dangerous work environments. So, in our workplace culture we investigate every near miss and every incident, trying to put in place corrective and preventive actions to prevent major incidents. Incident reports from one facility are shared with others so that everyone can learn and can improve safety. Although this article did not have much detail, it is one of those things that makes you ask what was going on in that situation? What went wrong? A single fatality may not even show up as a blip on the stock price graph, but can do a lot to the morale of coworkers and anyone else closely associated with the individual, his community, or the unit for which he worked.
Monday, September 20, 2010
Tuesday, September 14, 2010
Thursday, September 9, 2010
Wednesday, September 8, 2010
FedEx Stock Price Wednesday September 8, 2010
FedEx stock price: 84.14, up 2.28 points, or 2.79% as of 11:56 am.
Click here fore more detail, graph at Google Finance.
Click here fore more detail, graph at Google Finance.
External Environment and Threats to FedEx: two articles
UPS, FedEx worlds apart on labor law - Chris Frates - POLITICO.com
By CHRIS FRATES
6/28/10 4:13 AM EDT Text Size- + reset
A brutal labor law battle between the companies could be headed for a showdown this week.
Reuters
A brutal labor law battle between UPS and FedEx could be headed for a showdown this week as Congress faces a deadline to make a move in the bitter, long-running dispute.
The two shipping giants have been engaged in a down-and-dirty lobbying campaign over a proposal that would make it easier for labor to organize FedEx.
Memphis-based FedEx has spent millions of dollars, and its chief executive has even threatened to cancel an order of new Boeing planes if the proposal passes. UPS has been quieter about its lobbying but is getting support from the Teamsters, who represent many of its employees.
The 230-word provision making it easier to unionize FedEx is part of the House Federal Aviation Administration reauthorization legislation but is absent from the Senate version. And the difference has become a major sticking point in finishing the bill before the current law expires Saturday.
use the link to Politico.com above for full story.
See also, more recent article from PBS on this topic:
http://www.pbs.org/wnet/need-to-know/economy/the-ground-war-between-fedex-and-ups/3095/
This issue is one of the factors to consider in evaluating the external environment for FedEx, as something that poses a threat.
By CHRIS FRATES
6/28/10 4:13 AM EDT Text Size- + reset
A brutal labor law battle between the companies could be headed for a showdown this week.
Reuters
A brutal labor law battle between UPS and FedEx could be headed for a showdown this week as Congress faces a deadline to make a move in the bitter, long-running dispute.
The two shipping giants have been engaged in a down-and-dirty lobbying campaign over a proposal that would make it easier for labor to organize FedEx.
Memphis-based FedEx has spent millions of dollars, and its chief executive has even threatened to cancel an order of new Boeing planes if the proposal passes. UPS has been quieter about its lobbying but is getting support from the Teamsters, who represent many of its employees.
The 230-word provision making it easier to unionize FedEx is part of the House Federal Aviation Administration reauthorization legislation but is absent from the Senate version. And the difference has become a major sticking point in finishing the bill before the current law expires Saturday.
use the link to Politico.com above for full story.
See also, more recent article from PBS on this topic:
http://www.pbs.org/wnet/need-to-know/economy/the-ground-war-between-fedex-and-ups/3095/
This issue is one of the factors to consider in evaluating the external environment for FedEx, as something that poses a threat.
Friday, September 3, 2010
Wednesday, September 1, 2010
Tuesday, August 31, 2010
FedEx Corporation - Investor Relations - Mission Statement
FedEx Corporation - Investor Relations - Mission Statement
FedEx Corporation will produce superior financial returns for its shareowners by providing high value-added logistics, transportation and related information services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served. FedEx Corporation will strive to develop mutually rewarding relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards.
Above is the Mission Statement from the FedEx Investor Relations website. I am not sure what the official Vision Statement is, but the following statement is found on the FedEx website under about FedEx, Our Company:
"At FedEx, we recognize that our impact is greater than the services we provide. We are committed to being a great place to work, a thoughtful steward of the environment and a caring citizen in the communities where we live and work. We are passionate about sustainably connecting people and places and improving the quality of life around the world."
Mission, Strategy, Values
Mission
FedEx will produce superior financial returns for shareowners by providing high value-added supply chain, transportation, business and related information services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served. FedEx will strive to develop mutually rewarding relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards.
Strategy
The unique FedEx operating strategy works seamlessly - and simultaneously - on three levels.
•Compete collectively by standing as one brand worldwide and speaking with one voice.
•Operate independently by focusing on our independent networks to meet distinct customer needs.
•Manage collaboratively by working together to sustain loyal relationships with our workforce, customers and investors.
Values
People: We value our people and promote diversity in our workplace and in our thinking.
Service: Our absolutely, positively spirit puts our customers at the heart of everything we do.
Innovation: We invent and inspire the services and technologies that improve the way we work and live.
Integrity: We manage our operations, finances and services with honesty, efficiency and reliability.
Responsibility: We champion safe and healthy environments for the communities in which we live and work.
Loyalty: We earn the respect and confidence of our FedEx people, customers and investors every day, in everything we do.
FedEx Corporation will produce superior financial returns for its shareowners by providing high value-added logistics, transportation and related information services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served. FedEx Corporation will strive to develop mutually rewarding relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards.
Above is the Mission Statement from the FedEx Investor Relations website. I am not sure what the official Vision Statement is, but the following statement is found on the FedEx website under about FedEx, Our Company:
"At FedEx, we recognize that our impact is greater than the services we provide. We are committed to being a great place to work, a thoughtful steward of the environment and a caring citizen in the communities where we live and work. We are passionate about sustainably connecting people and places and improving the quality of life around the world."
Mission, Strategy, Values
Mission
FedEx will produce superior financial returns for shareowners by providing high value-added supply chain, transportation, business and related information services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served. FedEx will strive to develop mutually rewarding relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards.
Strategy
The unique FedEx operating strategy works seamlessly - and simultaneously - on three levels.
•Compete collectively by standing as one brand worldwide and speaking with one voice.
•Operate independently by focusing on our independent networks to meet distinct customer needs.
•Manage collaboratively by working together to sustain loyal relationships with our workforce, customers and investors.
Values
People: We value our people and promote diversity in our workplace and in our thinking.
Service: Our absolutely, positively spirit puts our customers at the heart of everything we do.
Innovation: We invent and inspire the services and technologies that improve the way we work and live.
Integrity: We manage our operations, finances and services with honesty, efficiency and reliability.
Responsibility: We champion safe and healthy environments for the communities in which we live and work.
Loyalty: We earn the respect and confidence of our FedEx people, customers and investors every day, in everything we do.
FDX Stock Price as of Tuesday afternoon August 31
The FedEx stock price was 78.05, down 0.73 points, or 0.93 %.
Click here for more details on FDX stock prices from Google Finance
Click here for more details on FDX stock prices from Google Finance
Saturday, August 28, 2010
FDX Stock Price as of Friday afternoon August 27
The FedEx stock price was 80.46, up 1.7 points, or 2.16 %
Click here for more details on FDX stock prices from Google Finance
Click here for more details on FDX stock prices from Google Finance
Thursday, August 26, 2010
Selecting FedEx Corporation for MGT 656 Company Blog project
Well, the project info did recommend a large publicly traded company, so I opened the Wall Street Journal's Money and Investing section and started browsing stock symbols in the New York Stock Exchange listings. I chose one that I don't feel I have too much bias for or against already as far as personal loyalty as a consumer, or from positive/negative images from news articles I can recall.
A couple of basics for reference...
web address for Investor Relations: http://www.fedex.com/us/investorrelations/
NYSE listing: FDX
A couple of basics for reference...
web address for Investor Relations: http://www.fedex.com/us/investorrelations/
NYSE listing: FDX
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