The Structure Of World Politics During The Cold War

The structure of world politics during the cold war (1945-1989), was determined by the strategic and ideological competition between the U.S and the Soviet Union. During this time, there was a varying degree of tension between these two superpowers (ref). This essay will be describing various meaning of the word ‘’dà ©tente, its achievements and limitations, how it was performed by different countries and finally reasons why it’s failed and why the failure was inevitable. Dà ©tente is from a French word, which means a release from tension, but this is in contrast to the maintain of high level tension as was done during the cold war. The American definition according to DR Kissinger (Bell, 1977), describes dà ©tente as a mode of management of adversary power. However (Ashton, 1989), said the first person to that establish dà ©tente was a French president named Charles de Gaulle, who ultimately refused to accept the generalization about the assumption that negotiation and security should be dealt with by the soviet union and the united states. One of the biggest issues in the cold war was proper lack of communication between the US and the Soviet Union. This was clearly demonstrated by the Cuban missiles crisis in 1963, when there was no way of possible negotiable agreements. This was one of the biggest clashes between the two super powers, and at that point the world was really close to a military, most possibly nuclear disaster. There was an understanding by the Soviet Union thatShow MoreRelatedRealism Is The Most Convincing Paradigm For International Relations? Essay1579 Words   |  7 Pagesthe end of the cold war in 1947, proved the perfect hostile environment to fit the largely pessimistic view of world politics. 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Chen Tu-hsiu The Way of Confucius and Modern Life

Chen Tu-Hsiu, The Way of Confucius and Modern Life This essay discusses the main differences between traditional Confucian values and modern values. Confucian society seems backwards compared with modern society. In the traditional Confucian society, wives must obey every man in the family before she makes any decision on her own. She even obeys her sons. This would never happen in the modern world, especially in the West. Women and men cannot even talk to each other in a normal fashion unless they are already married, or being set up to be married. The author claims that a sister cannot even ask her brother-in-law a question. It is believed to be inappropriate for a woman and a man to speak, and there is even some mention of women covering their faces. Similarly, the author states that in traditional Confucian societies, the children always obey their parents even as adults. In Western society, the grown children are independent and lead their own lives. It is possible to respect ones parents, and love ones parents, without obeying their rules. Other issues that the author discusses include gender roles and norms. Women in Confucian society had no rights. They would ultimately have to serve their in-laws even if they did not like them. In Western society, the wives do not have a position of subservience to anyone. Similarly, a widow can choose to remarry if she wants to. In Confucian society, a woman is forced to do the chastity of widowhood, which means that

Fedex vs Ups Essay Example For Students

Fedex vs Ups Essay FEDEX VS UPS In todays fast moving world delivery of packages, parcels, documents, goods in a timely and guaranteed manner is of absolute importance. With the fast moving trend of online businesses, auctions etc. , the need for fast and reliable package delivery is growing. The logistics industry has received globally, a lot of publicity regarding the industrys attitudes on, and actions in, corporate responsibility issues. The different stakeholder groups are interested in the logistics industrys ways of action concerning these issues. The logistics industry has had to react to these new kinds of demands and questions from the stakeholders. FEDEX Overview: Every generation expects easier access to more of what the world has to offer. More products and services, more information and ideas, more people and places. FedEx helped create that expectation. And we deliver on it millions of times a day, providing the access to transform possibilities into reality. While our early days are legendary, todays FedEx has grown up into a $29-billion network of companies, offering just the right mix of transportation, information, document management and supply chain solutions. And we still back our services with the absolutely, positively spirit you expect from the trusted FedEx name. Companies owned by FedEx: FedEx corporation FedEx Express FedEx Ground FedEx Freight FedEx Kinkos FedEx Custom Critical FedEx Trade Networks FedEx Services UPS Overview: UPS is the worlds largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the movement of goods, information and funds. Headquartered in Atlanta, Ga. , UPS serves more than 200 countries and territories worldwide and operates the largest franchise shipping chain, The UPS Store;reg;. Companies owned by UPS: UPS Air Cargo UPS Aviation Technologies UPS Capital Corporation UPS Consulting UPS Mail Innovations Mail Boxes Etc. UPS Professional Services UPS Supply Chain Solutions UPS TeleServices Mission Statement: FedEx: 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 competing collectively, and managed collaboratively, under the respected FedEx brand. Customer requirements will be met in the highest quality manner appropriate to each market segment served. FedEx companies will strive to develop mutually rewarding relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations. All corporate activities will be conducted to the highest ethical and professional standards. UPS: We sustain a financially strong company that provides a long-term competitive return to our shareholders. UPS has a history of strong returns. These returns have been driven by our abilities to transform our company and adapt to changing conditions. We believe these abilities will drive our financial sustainability well into the future. The service UPS provides has inherent economic benefits: First, by providing reliable, affordable services to millions of small businesses, we help them thrive; Second, by facilitating the flow of goods, information and funds we enable our customers to run their businesses more efficiently, reduce waste and strengthen their bottom lines; Third, as we grow our business in a financially sustainable manner, we extend Economic, social and environmental benefits to our stakeholders. UPS combines the disparate activities of supply chains into a precise, engineered whole, transforming what was once a cost center into a business opportunity. For example, warehouses can be shared by several manufacturers, eliminating redundancies and reducing costs; packages can be delivered directly from the manufacturer to the consumer, saving money for the producer and improving customer service; international accounts receivable can be reduced from weeks to days, substantially increasing cash flow. Ours is an industry of increasing importance to our customers business strategies. UPS is aligning its strategies to capitalize on four emerging industry trends. Those trends are: Globalization Consolidation Shift to smaller, more frequent shipments Outsourcing logistics Strategy FedEx: The unique FedEx operating strategy works seamlessly and simultaneously on three levels. Operate independently by focusing on our independent networks to meet distinct customer needs. Compete collectively by standing as one brand worldwide and speaking with one voice. Manage collaboratively by working together to sustain loyal relationships with our workforce, customers and investors. UPS: Our business which serves eight million customers daily in over 200 ountries by 360,000 employees is built on a single, highly integrated network structure. We believe this model is the most efficient, cost effective, environmentally responsible and profitable in the industry. All goods air and ground, domestic and international, commercial and residential are processed through the same network. This results in very efficient use of assets and lower costs. The single network model delivers significant benefits red ucing environmental impact, offering opportunities to employees and providing positive financial performance. This report elaborates on the ways in which all three of these aspects of a sustainable enterprise are manifested in UPS. Values: FEDEX: 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. UPS: The core values of UPS our enduring beliefs, as we call them have changed little since the company began 95 years ago. Our managers embrace them and instill them in everyone, and it has created an indelible bond between strong values and a strong brand. UPS values: Integrit, Diligence, Innovation, Courtesy, Promptness, Reliability, Appearance. These values are the yardsticks by which every employee, product, and decision is measured. So its only logical that our brand is anchored in these same values as well. These are likely some of the same values on which your business is built. But are they built into your brand, no matter where or how it comes in contact with customers? To make sure they are, you must clearly identify your company values and then challenge yourself, and your marketers, to consider them as a starting point for anything related to your brand developing new products, creating promotions, constructing sales initiatives and training programs, and even answering the phone. In time, these enduring beliefs will permeate everything your company does, from the way your marketers promote to the way your sales force sells. The FedEx Company is extensive with each branch having its own chain of command. This is the secret to their success for making their company one of the leading delivery companies. Their management strategy and motto is: OPERATE INDEPENDENTLY; COMPETING COLLECTIVELY. By operating independently each company can focus exclusively on delivering the best service for its specific market. Even though FedEx is technically and four-year-old company, its core network has been in business since 1973. They kept gathering other companies by studying the express and routine transportation markets for over twenty-five years. They bought and re-branded many companies that they seemed to see a need to have to improve. The acquisition of Tower Group International, a logistics and trade information technology business was the first in major purchases. They reformed it into Networks. Logistics was streamlined to organize and improve customer services. The buying of American Freightways was a major acquisition for the FedEx Company; it opened further doors to freight and merged it with Viking Freight. With all of the buying and mergers, it has offered FedEx to have different depths, layers and services for the company. UPS working strategy is exactly the opposite of FedEx. UPS built on a single, highly integrated network structure. UPS initially a ground package delivery company is now catching up with FedEx express shipments but as we compared they are still a little expensive over FedEx. ************************************************************************************* FedEx- Strategy Management: This is all about the analyzing the strength of businesses position and understanding the important external factors that may influence that position. The process of Strategic Analysis can be assisted by a number of tools, including: PESTEL Analysis a technique for understanding the environment in which a business operates Five Forces Analysis a technique for identifying the forces which affect the level of competition in an industry Value Chain Analysis describes the activities that take place in a business and relates them to an analysis of the competitive strength of the business. PESTEL analysis is concerned with the environmental influences on a business. The acronym stands for the Political, Economic, Social and Technological issues that could affect the strategic development of a business. Identifying PESTEL influences is a useful way of summarizing the external environment in which a business operates. However, it must be followed up by consideration of how a business should respond to these influences. Apply to the case of FedEx, PETEL factors can be defined as the following: Political/Legal factors Government deregulation of the airline industry which permitted the landing of larger freight planes, thus reducing operating costs for FedEx. Deregulation of the trucking industry, which allowed FedEx establish a regional trucking system to lower costs further on short-haul trips. Trade deregulation in Asia Pacific, which opened new markets for FedEx. Expanding globally became a priority for FedEx. Economy factors The growth of the express transportation and logistics industry was brought about by three main trends: the globalisaiton of business, advances in information technology (IT) and the application of new technology to generate process efficiencies, and the changing market demand for more value-added service Socioculture factors FedExs business expanded beyond national boundaries and extended their global reach to take advantage of new markets and cheaper resources, so the movement of goods created new demands for transportation and logistics industry. With this the competitiveness of transporation companies depended upon their global etwork of distribution centres and their ability to deliver to wherever their customers conducted business. Speed became of significance to achieve competitiveness , not only for the transportation companies but also for their customers. The ability to deliver goods quickly shortened the order-to-payment cycle, improved cash flow, and created customer satisfication. Technology factors Technological breakthroughs and applications innovations promoted significant advances for customer ordering, package tracking and process monitoring. FedExs greatest strengths is its relentless pursuit of technological advancement. Well before it became a competitive imperative for companies to strive for technological improvements, FedEx redefined the shipping industry with its breakthrough innovations. From its introduction of the COSMOS system to the launch of its website, FedEx has sought to constantly stay ahead of its competitors by technological improvements that would create value for customers. In addition, its enviable record of technological integration has created an internal environment in which information is shared and readily available for decision makers. Environmental factor Rising inflation and global competition gave rise to greater pressures on businesses to minimize the costs of operation including implementation of just-in-time inventory management systems, etc. This also created demands for speed and accuracy in all aspects of business. External Analysis: Applying Porters Five Forces to FedEx, the five forces can be defined as the following: Competitive rivalry Since multi-market competition exists, rivalry between competitors in the industry is extremely intense. Companies in the industry have started new businesses to increase the level of competition with one another (ex. FedEx Ground, UPS Overnight) and compete heavily for geographic markets. There is no clear dominant market share player in the industry; although FedEx leads with 35%, UPS holds 30%, TNT has 9%, and Airborne has 3%. Data could not be found for DHL and is not included in the market share percentages above, but they hold very strong positions in Europe and Asia. Though the industry currently has relatively high growth, much of the business is cyclical, which leads to intensified competition in economic downturns. High fixed costs also contribute to intense competition. Threat of entry The threat of new entrants into this industry is relatively low because of the scale required to make companies in the industry competitive. Capital demands to fund all of the assets required in the industry (air and ground fleets, warehouses, distribution centers, large labour force, etc. ) are extraordinarily large, making competition from entrepreneurs or small companies very difficult at this level of market competitiveness. Economies of scale are necessary for the business to be profitable and because of the intensity of rivalry, customers would are difficult to attract. While the basic service of shipping goods would be relatively easy for new entrants to imitate, the competitors in the industry have created value and high switching costs for their customers through proprietary technologies such as online package tracking and integrated sales and shipping systems. Supplier power Suppliers power is fairly low for the industry, but differs between competitors. For delivery vehicles such as planes and trucks, suppliers have low bargaining power because of the intensity of rivalry in their respective industries. Competitors are also on the same footing with suppliers of fuel, as they are all subject to the same prices, although they may have hedged differently. Labour is a major factor of production in the industry and differences between companies regarding labour contracts subjects them to varying degrees of supplier power. UPS especially is impacted by labour issues as their high level of unionized workforce has halted operations in the past. Buyer power Customers in the industry initially have power, but once they commit to a arrier, their bargaining power decreases significantly. New customers can easily shop around for price or level of service in the beginning, but once they have chosen a carrier and use their value-creating services, they have very high switching costs. In addition, customers are likely to become loyal to a certain provider because of long-standing relationships or personal interaction with the company. Threat of substitutes The threat of substitutes is currently low for the industry, but major technological or security break-throughs could change that. Increased use of email probably decreased industry volume slightly over the past few years, but security issues with this form of communication will probably limit the transmission of sensitive information by email. Regular mail is the largest threat to the industry, as these providers likely have lower prices than the rest of the industry, but lack the level of service. Around the world, national postal systems have issues with speed, security, and reliability that reduce the threat that they pose to the industry. For Downes (1997), three new forces are overwhelming these traditional five. They are the forces of digitalisation, globalisation and deregulation. One of the main drivers of globalisation is the proliferation of networking technology, itself driven by the convergence of telecommunications and computing. For FedEx, as of January 2000, it served 210 countries (making up more than 90 per cent of the worlds GDP), operated 34,000 drop off locations and managed 10 million square feet of warehouse space worldwide. Value Chain Value Chain Analysis describes the activities that take place in a business and relates them to an analysis of the competitive strength of the business. Influential work by Michael Porter suggested that the activities of a business could be grouped under two headings: (1) Primary Activities those that are directly concerned with creating and delivering a product (e. g. component assembly); and (2) Support Activities, which whilst they are not directly involved in production, may increase effectiveness or efficiency (e. g. human resource management). It is rare for a business to undertake all primary and support activities. Other factors First Mover FedEx was the pioneer of the express transportation and logistics industry. She invented the air/ground express industry and overnight delivery market in 1973. Being as a first-mover, FedEx takes advantages and disadvantages. When to make a strategic move is often as crucial as what move to make. Timing is especially important when first-mover advantages or disadvantages exist. Being first to initiate a strategic move can have a high payoff when 1. pioneering helps build a firms image and reputation with buyers; 2. early commitments to new technologies, new-style components, distribution channels, and so on can produce an absolute cost advantage over rivals 3. ist-time customers remain strongly loyal to pioneering companies in making imitation extra hard or unlikely. The bigger the first-mover advantages, the more attractive that making the first move becomes. However, being a rapid follower or even a wait-and-see late-mover like UPS, DHL and TNT doesnt always carry a significant or lasting competitive penalty. There are times when a first-movers skills, kno w-how, and actions are easily copied or even surpassed by late-movers, allowing them to catch or overtake the first-mover in a relatively short period. And there are times when there are actually advantages to being an adept follower rather than a first-mover. Late-mover advantages (or first-mover disadvantages) arise when 1. Pioneering leadership is more costly than imitating followership and only negligible experience curve benefits accrue to the leader a condition that allows a follower to end up with lower costs than the first-mover. For example, FedEx initially developed COSMOS, Powership programme and ect. which cost it very much when IT was very high as early as 1979. . The products of an innovator are somewhat primitive and do not live up to buyer expectations, thus allowing a clever follower to win disenchanted buyers away from the leader with better performing products. For example, FedEx developed overnight express logistics pattern and business style which it followers like DHL, TNT can follow it. 3. Technology is advancing rapidly, giving fast followers the opening to leapfrog a first-movers products with more attracti ve and full-featured second- and third- generation products. For example, while FedEx had pioneered many logistics solutions that had helped it to achieve economies of scale faster than its competitors, the advantages were quickly eroding as newer technologies became even more power and less expensive. FedExs success is because it can prioritize and monitor macro- environmental factors of PESTAL above. However, its market share was eroded by other competitors after: Externally, this is because of five force factors above. Internally, this is because of value chain (Appendix I ;II) and competitive advantages. At the beginning, FedEx pioneered in webbed-based package-tracking system, took advantages of first-mover advantages and set up image and reputation with customers. However, such systems became the industry norm rather than a competitive advantage. The advantages were quickly eroding as newer technologies became even more powerful and less expensive. Competitive advantage is achieved by performing activities in the value chain in such a way that they deliver extra value to customers. Re-organization lead FedEx cannot keep its competitive advantages. Since a series of consolidation and rename, FedEx was trying to promote five different subsidiary companies with completely unrelated names and business logos. Each subsidiary continued to operate independently, with separate accounting system and customer service staff. Then its net income was down by 6%. It should re-think its business strategy and formed a sixth subsidiary companies called FedEx Corporation Services Corp. However, it ignored customers need, for customers the benefits included easier means of doing business with one company, FedEx, not a group of six companies. It failed to take advantages of one of its greatest assets, the FedEx brand name. This gave its competitors, like UPS, the opportunity to erode its market share. ************************************************************************************ FedEx Market Analysis: FedEx Corporation provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $26 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Death Penatly EssayFedEx Express Segment. For the first quarter, the FedEx Express segment reported: * Revenue of $4. 62 billion, up 12% from last years $4. 14 billion * Operating income of $310 million, up significantly from $23 million a year ago * Operating margin of 6. 7%, up from 0. 6% the previous year FedEx International Priority revenue continued its strong growth, increasing 25% for the quarter. IP average daily package volume grew 13%, led by strong growth in Asia, U. S. export and Europe. China exports grew 52%. IP revenue per package grew 8%, primarily due to an increase in average weight per package, fuel surcharges and favorable exchange rate differences. U. S. domestic express package revenue was higher, as U. S. domestic package yield increased 6% due to higher fuel surcharge revenue and increases in average weight per package and average rate per pound. U. S. domestic average daily package volume was down about 2%. Operating income improved dramatically year over year, benefiting from savings from business realignment programs, revenue growth, ongoing cost control efforts and one additional operating day. Also, the first quarter of fiscal 2004 included $132 million of costs related to business realignment. FedEx Express received tentative approval from the U. S. Department of Transportation for 12 new flight frequencies into China, allowing the company to extend its leadership position as the largest express carrier in China. Federal Express Segment Revenue Federal Express segment total revenues increased 6% in 2004, mainly due to higher IP revenues in Asia, Europe and U. S. outbound. IP revenues increased drastically on volume growth (7%) percent and higher yield (9%). Asia experienced strong average daily volume growth (led by China with volume growth of over 50%), while outbound shipments from Europe, the United States and Latin America continued to improve. Federal Express segment total revenues increased 7% in 2003, largely due to increased IP and U. S. freight revenues. Year-over-year revenue comparisons reflect the impact in 2002 of the terrorist attacks on September 11, 2001, which adversely affected both U. S. outbound international shipments and U. S. domestic shipments, and the economic decline that began in 2001. IP volume growth occurred predominantly in Asia and Europe, which experienced average daily volume growth rates of 21% and 11%, respectively, during 2003. IP yield improvements during 2003 were due to favorable exchange rate differences, increased fuel surcharge revenue and growth in higher-yielding lanes. APPRAISING THE BUSINESS MODEL Components Measures: Positioning A Porters five-forces analysis shows that FedEx position in the parcel delivery service is highly competitive worldwide and expected to be attractive in the future. Therefore, the positioning is rank as a HIGH. In addition, FedEx has gained great name recognition through its prolonged existence and its international position. Because of FedEx accomplishment, they do not have a big threat of new entrants in its industry. Customer value uPS focused on ground transport; FedEx on air. Federal Express emphasized information technology, while UPS fought investing in it. Despite these differences, both companies have been very successful. However, FedEx, as with most premium strategists, continually invests in technology to improve their already excellent service. In addition, the advanced system of FedEx is keeping the company a step ahead (12 months according to analysts) of its competitors. Scope Growth rate for FedEx segment total revenues increased 6% in 2004, mainly due to higher IP revenues in Asia, Europe and U. S. outbound. IP revenues increased drastically on volume growth (7%) percent and higher yield (9%). (source: FedEx Q1FY04 Report) Pricing FedEx and its competitors are very similar in the services they provide; therefore, buyers can readily pick and chose their desired company. Though by offering so many internal services, FedEx provides businesses and customers with what they need when they need it. In addition, weaknesses of competitors contribute to the fact that FedEx has the age advantage and people trust a well-recognized brand name. Revenue source For the first quarter, the FedEx Express segment reported Revenue of $4. 62 billion, up 12% from last years $4. 14 billion. Operating income of $310 million, up significantly from $23 million a year ago and operating margin of 6. 7%, up from 0. 6% the previous year. Connected activities FedEx provide high value-added logistics, transportation, cost effectiveness, convenience and related information services. In addition, FedEx, as with most premium strategists, continually invests in technology to improve their already excellent service. Implementation FedEx management team must try to remain the best provider of parcel delivery in the world. Having divisions in the company such as Shipping, Business Technology, Freight, Package, Supply Chain and so on, FedEx management team provides solutions for everyone whether business related or not. Capabilities With a fully integrated physical and virtual infrastructure, FedExs business model supports 24-48 hour delivery to anywhere in the world. FedEx has designed an infrastructure that provides integrated services from the point of managing inventory at rest to managing inventory in motion. Visionary leadership, particularly in the application of information technology to extending service offerings beyond transportation. Sustainability FedEx International Priority revenue continued its strong growth, increasing 25% for the quarter. Therefore, FedEx still held a high market share. However, FedEx may employ a team-up to maintain advantage. ************************************************************************************ FedEx: Organizational Change FedEx Corporation, one of the worlds leading courier and express logistics companies based in Memphis, was founded in 1973 by Fred Smith and started its European operations in 1984. The company operates in 211 countries around the world and is divided into seven business units: FedEx Corporation, FedEx Express, FedEx Ground, FedEx Freight, and FedEx Customs. Express is the reliable express delivery that delivers in 1-2 business days in 211 countries. Ground is what we are the most familiar with, specializing in door to door delivery. The trade network provides global e-customs clearance in brokerage and trade. Chain services provide information sales and marketing for FedEx. There is also Freight and Customs providing the transportation via train and air (FedEx Worldwide). FedEx and Information Technology FedEx, an Express and Transport company entered a fierce domestic market that was already dominated by some very well established companies, these being: United Parcels Services and US postal services. Fred Smith believed that applying IT to its business, FedEx was able to leap frog the rest of the industry, by building a bridge between the physical and virtual worlds. Today, approximately 90,000 Federal Express employees, at more than 1,650 sites process 1. 5 million shipments daily, all of which must be tracked in a central information system, sorted in a short time at facilities in Memphis, Indianapolis, Newark, Oakland, Los Angeles, Anchorage, and Brussels, and delivered by a highly decentralized distribution network. The firms air cargo fleet is now the worlds largest. In fact, according to the mission statement, they say, FedEx Corporation will produce superior financial returns for its shareholders 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, and Safety is the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards. So far their mission is a recipe for success. FedEx Corporation used e-business and IT to grab a competitive advantage within their market place, thus allowing the company to increase its profits in a matter of a few years, from an $8 Billion operation to an $18 Billion. FedEx and e-commerce With the introduction of e-commerce and the World Wide Web the whole way of selling goods to customers has changed over the years. Business and companies can now look elsewhere for better buying solutions as they are no longer tied down with one individual supplier. There is now a global marketplace within which they can seek suppliers (or customers). With this information medium customers are empowered to find new suppliers, new products, or the information that historically they discovered via a human interface. E-commerce has allowed companies to focus on their customer demands and found a way of representing their information without introducing new overheads or having to introduce new staff. FedEx took full advantage of e-business and allowed its company to focus on specific categories, allow its customers to have the full benefits of using an e-business solution and getting linked to purchasing goods. Not only did FedEx manage to increase its customers but also managed to solidify relationships with them through their e-business solutions. In the 1980s FedEx started the revolution by giving away more than 100,000 sets of PCs loaded with FedEx software, at the time when personal computers where relatively rare and expensive this investment was very unusual. The PowerShip program was designed to link and log customers into the FedEx ordering and tracking systems and these systems transformed the company into an electronic network. Ultimately this managed to lock a big customer base to the company which suggests that FedEx had a way of attracting their customers and then making them stay with the company with extraordinary service. With the commercial launch of their Internet service in 1994, FedEx saw greater potential in further integrating its operations to provide total supply chain solutions. Adapting its strategy to take account of the Internet integrating their website with their parcel tracking system FedEx was able to empower its customers to track their parcels themselves, at anytime, day or night. This not only saved FedEx costs by reducing the number of staff that would have to work in the call centers, but also made their customers perceive they were receiving service from FedEx, even though the customer was accessing the information themselves, when they wanted it, not restricted by FedExs hours of operation. ************************************************************************************* FedEx E-Commerce: FedEx Corporation is one of the worlds leading courier and express logistics companies. A US multinational company based in Memphis, it was founded in 1973 by Fred Smith and started its European operations in 1984. Its European headquarters (HQ) are in Brussels. The company operates in 211 countries around the world and is divided into seven business units: FedEx Corporation, FedEx Express, FedEx Ground, FedEx Freight, FedEx Customs. Its an Express and Transport company that was entering a fierce domestic market that was already dominated by some very well established companies, these being; United Parcels Services and US postal services. Fred Smith believed that applying IT to its business, FedEx was able to leap frog the rest of the industry, by building a bridge between the physical and virtual worlds. With the introduction of e-commerce and the World Wide Web the whole way of selling goods to customers has changed over the years. Business and companies can now look elsewhere for better buying solutions as they are no longer tied down with one individual supplier. There is now a global marketplace within which they can seek suppliers (or customers). With this information medium customers are empowered to find new suppliers, new products, or the information that historically they discovered via a human interface. E-commerce has allowed companies to focus on their customer demands and found a way of representing their information without introducing new overheads or having to introduce new staff. FedEx took full advantage of e-business and allowed its company to focus on specific categories, allow its customers to have the full benefits of using an e-business solution and without knowing getting trapped in a traditional way of purchasing goods. Not only did FedEx manage to increase its customers but also managed to trap them within their e-business solution. In the 1980s FedEx started the revolution by giving away more than 100,000 sets of PCs loaded with FedEx software, at the time when personal computers where relatively rare and expensive this investment was very unusual. The PowerShip program was designed to link and log customers into the FedEx ordering and tracking systems and these systems transformed the company into an electronic network. Ultimately this managed to lock a big customer base to the company and therefore it might be concluded from this that the company used a spiders web effect to trap their customers. Once the customers were connected to the web (network) they would find it difficult to get released as the costs would be very high, which suggests that FedEx had a way of attracting their customers and then making them stay with the company without the customer realising what they have done. With the commercial launch of their Internet service in 1994, FedEx saw greater potential in further integrating its operations to provide total supply chain solutions. For the first time, a company had adapted its IS strategy to take account of the Internet integrating their website with their parcel tracking system FedEx where able to empower their customers to track their parcels themselves, at anytime, day or night. This not only saved FedEx costs by reducing the number of staff that would have to work in the call centres, but also made their customers perceive they were receiving service from FedEx, even though the customer was accessing the information themselves, when they wanted it, not restricted by FedExs hours of operation. FedEx main rivals UPS also introduced their own e-business strategy which allowed them to regain some of the market share that was being taken by FedEx, but this was not all as pretty as it seemed. With Fred Smith still lavishing all of his commitments to IT, FedEx started to lose track on the more traditional sides of the business, this was to be the overnight delivery service, Smith continuously ignored opportunities to build up a residential ground-delivery network. As reported in the business weekly magazine in May 2001, UPS moved quicker into FedEx turf than FedEx moved into that of UPS allowing UPS to take a greater market share of the residential ground delivery service. This proves that investment into E-business does not always mean that you will have a successful outcome, forgetting about other critical parts of the business allows your competitors to take advantage of the market share. With such strong effects on each other, the two companies were creating new technologies and making the other follow suite. UPS launched their website in 1994 just after FedEx had seized the opportunity by introducing customer tracking, which was not added for another year by UPS. While UPS new innovation was to add electronic signatures to its parcels, thus making FedEx follow suite. Examples of e-business that have gone terribly wrong at FedEx was the introduction of Zap Mail in 1984, this was to be a satellite based network that would work like Email and Fax. Using this service, customers could zap a photographic image of a document from one place to another; documents would be picked up from clients, and transmitted electronically, but at a very costly price of $35 per 10 sheets. To ensure customer satisfaction FedEx said they would refund any transaction that took longer then 2 hours. The system was well over priced and was not succeeding at FedEx, especially when fax machines existed in the offices. This showed that not all e-business solutions will work if the management does not understand the strategic importance of the innovation, this little example cost FedEx about $350 million and was discontinued in 1986. ************************************************************************************* About FedEx Federal Express (FedEx) Corporation is a global logistics and supply chain management company. FedEx has been known for their multiple innovations in information systems which they have integrated into their logistics and supply chain management systems. This case study analyzes strategies used by FedEx that helped earn its success as a global express transportation company. In addition to that, the report examines FedExs reorganization strategies in becoming a company that offers more than express transportation and at the same time improve profitability of the company. As FedEx invented the air/ground express industry, it was able to establish a reliable and reputable brand. FedEx was able to build a strong transportation and logistics infrastructure through acquiring its own transportation fleet and its initial merger with Parts Bank. FedEx also invested heavily in their IT systems and gained its success through its innovative software development that was able to integrate players in the supply chain. Federal Express (FedEx) was formed in 1973 as an express delivery company. It then evolved to a global logistics and supply management company. The success of the Company was highly attributable to its extensive track records of investments and innovations in IT systems. The Company was able to link players in the supply chain and identified points along the supply chain where it could provide management services. Despite this, their logistics business was struggling in performance and failed to generate profit. The acquisition of Calibre Systems, Inc. in 1998 was aimed to reinforce FedExs commitment on becoming more than just a transportation business. Following this acquisition, five subsidiaries were formed. Calibre Systems, Inc. nd its subsidiaries had a completely different customer base from FedEx and provided elaborate logistics operation and fuller supply chain solution to FedEx. These subsidiaries operated independently, but compete collectively under unrelated names and logos. Customers continued to associate FedEx with transportation and the FedEx brand did not resonate through these subsidiaries, as hoped by the company. In 1999, a major reorganisation of the Company was done and the FedEx brand was extended to its subsidiaries. There would be one point of contact for FedExs customers. However, because these subsidiaries still operated independently with different teams of delivery and pick-up, a tendency for duplication of resources could still occur. FedEx would also have to anticipate the challenge of establishing a reliable residential delivery business that was led by UPS. This report seeks to analyse the case presented by FedEx and to identify FedExs critical success factors and recommendations that FedEx can implement in order to address this problem. External Analysis Political Throughout the Companys operations, several regulations have helped with the success of the Company. Deregulation of the airline industry, allowed landing of larger air freights, which led to lower operating costs of FedEx and deregulations of the trucking industry allowed regional trucking systems to lower costs on short haul trips. Bilateral agreements between countries, such as trade deregulations in the Asia Pacific opened up new markets for FedEx as more businesses seeked global expansion, thus depending more on international freight transportation. Economical Due to globalisation, a growing trend was observed where businesses expanded across national boundaries to capture new markets and outsource production. This increased the need for movement of goods which created demand for global transportation. From increasing inflation and competition, businesses were sought to reduce operating costs, hence demanding for more efficient logistics management to reduce inventory costs and implement just-in-time inventory. Social FedEx encouraged its customers to integrate its systems to their businesses. In return, customers will be able to reduce inventory, save time and warehousing costs. At the same time, innovative customers