FedEx
The organization in question is FedEx Express, the overnight courier company. The company operates a global network for picking up and distributing packages and envelopes. Most of its major fixed assets are its stations, its aircraft and its fleets of vehicles. The company's business is highly correlated with the state of the global economy, and as a result FedEx must continually adapt its capacity in different regions according to the demand conditions in those regions. For example, the company has expanded significantly in China over the past twenty years, to meet the shipments of products to and from that country.
One recent decision that can be evaluated for costing is the decision to introduce the new Boeing 777F to the company's fleet. Adding new aircraft or vehicles to the fleet represents a significant challenge, because the maintenance department must have more parts, new training and possibly even new facilities to handle the maintenance related to the aircraft. However, the new aircraft increases capacity on the route for which it is designated. In this case, the route for the first 777F is Memphis-Stansted. The new plane will allow for more efficient transport of goods between the UK and the U.S. As well, the use of the new plane will allow FedEx to either cut the lease on the previous aircraft used on that route, or it will allow for those aircraft to be redeployed elsewhere.
These costs must be weighed against the cost savings in order to determine the net present value of the project. For example, the new aircraft are said to use 18% less fuel than the previous aircraft. They also can go between China and the mainland U.S., and mainland Europe, without stopping to refuel. This will make FedEx more attractive than UPS, which is not buying the planes. While the uptick in sales and the reduction in fuel costs can be difficult to project, reasonable assumptions based on past experience and statistical analysis can be made by the company. Both are incremental to the decision at hand and therefore are considered relevant cash flows to the decision.
There are also a number of non-relevant costs. For example, the planes formerly used on those routes can now be redeployed to…
FedEx Corporation FedEx Company Overview FedEx is a global organization that provides wide variety of business portfolio such as e-commerce, transportation and business services. FedEx operates and competes effectively under collective brand names such as FedEx Express, FedEx Freight, FedEx Ground, and FedEx Kinko's. The objective of the paper is to provide comprehensive report on FedEx that include FedEx's strategy for success in the marketplace and the company four main business strategy. The report
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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
FedEx Express is the overnight courier arm of FedEx Corporation. This is the core business for the firm, delivering packages in a number of time frames between almost any two points in the world. The business has high fixed costs in terms of trucks and aircraft, and is very labor intensive. Operating effectively requires that the company have stations located all over the world. The location and size of these
FedEx Company: Five Forces Analysis The company examined is FedEx and the relevant industry is the overnight and express ground delivery business. There are a few different types of market participants. The first of these are the overnight and ground providers, FedEx and UPS. These are the market leaders and offer the most comprehensive route networks and packages of services. TNT and DHL offer some competition but have a much more
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