Each employee therefore plays a role in revenue generation. Just as important is the fact that a key organizational objective is to be as efficient and productive as possible. Revenue per employee is a key productivity ratio, and the higher this figure the more productive the company. Many employees can directly see themselves in this ratio, which orients personal responsibility for its improvement, another value of having a metric like this to evaluate total rewards. The third metric for the total rewards program is turnover. The point of having a sophisticated total rewards program is to attract and retain the best people, in line with the People, Service, Profit mantra. While good people will help the company deliver higher net income and revenue per employee, turnover is a very good direct measure of the program's effectiveness. The others are merely proxies. Turnover is a key metric for a couple of reasons. The first, as noted, is that...
The second is that the training process can be extensive, so the company wants to ensure that money it spends bringing new recruits to a high degree of functionality is returned with employees staying for the long-run. FedEx has some short-term positions, but for the most part it seeks people looking for a career.
Erring either way can have many drawbacks. Other companies may not require a TMS at all, if they deal mostly with outside parcel carriers such as FedEx or DHL. Companies also have to be careful that they do not fail with their TMS once it is implemented because they made one of the common errors. For example, some companies go through the expense of installing TMS programs without top-to-bottom
Managerial Econ FedEx is a logistics company that "provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services." The company offers "integrated business applications through operating companies competing collectively and managed collaboratively" (FedEx.com, 2013). The company has a number of different units, including Express, Ground, Office, Customs Critical and other smaller businesses related to its core delivery businesses. The company has experienced a long-term rising trend
A fourth weakness is the declining level of business services sales during one period of the case study, brought about by the economic recession impacting areas of the global economy unevenly. Opportunities FedEx can expand significantly more into the highest-growth economies of the world by pursuing more acquisitions in specific logistics and transportation management companies. As one of their core strengths is growth through acquisition, the company needs to consider how
FedEx was founded by Fred Smith after his tour in Vietnam, and he continues to run the company today, as the only CEO that FedEx has ever known. The company began by offering overnight courier services, an industry that to that point had not existed. Today, that unit is known as FedEx Express and it is still the largest in the company. There are competitors, however, mostly notably UPS, DHL
FedEx Corporation offers worldwide delivery services in the overnight and ground businesses, along with other related logistics services. The company operates around the world, utilizing either wholly-owned subsidiaries or service partners to gain market entry. If the company is considering making an investment in a foreign country, it can start by determining the cost of capital. Most of the company's business is in the U.S., so the domestic cost of
Finance Assessment of the Financial Performance of UPS and FedEx The Companies UPS FedEx Selected Financial Data Ratio Analysis Short-Term Solvency Long-Term Solvency Asset Management Profitability Market value For any investor assessing potential investments there will be an evaluation of the potential investment, looking at the financial performance using vertical and horizontal analysis. Further context may be given to any analysis by looking at firms in a boarder context for example, examining two firms together, especially where they are close comparators. This
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