AFM373 Lecture Notes - Lecture 3: Total Quality Management, Asiaone, United States Postal Service
3 Jul 2018
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Key success factors in FedEX vs USPS
What drives performance in the industry?
Both companies made financial performance a part of their mission- what FedEx called
"superior financial returns" and UPS "long-term competitive returns"
FedEx's "people-service-profits" which focused on total quality management and employee
participation.
Reputation as a place to work
UPS strive for efficiency --> leading to strikes
It went public in Nov 1999
FedEx has AsiaOne
How different are the two firm strategies?
With hubs, things are more efficient
FedEx need IT to solve problems and operations go smoothly.
FedEx are more new and innovative.
UPS is more old schooled but they are more dominant in the international scene.
What is the importance of China?
Air cargo market
FedEx already have over 200 Chinese cities
By year end 2005, it operated more all-cargo flights to China than any other airlines.
FedEx invented innovative customer logistical management
oUPS always lagging behind.
China's role in the global supply chain
China's solid manufacturing base is essential to neighboring Asian economies, which
export key electronic components. lts emerging middle class and growing consumerism
will continue to attract capital goods and luxury items from the rest of the world
What do financial statements and accounting ratios tell us?
FedEx rushing and catching up to UPS from its growth ratios.
find more resources at oneclass.com
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Document Summary
Both companies made financial performance a part of their mission- what fedex called. "superior financial returns" and ups "long-term competitive returns" Fedex"s "people-service-profits" which focused on total quality management and employee participation. Ups strive for efficiency --> leading to strikes. Fedex need it to solve problems and operations go smoothly. Ups is more old schooled but they are more dominant in the international scene. By year end 2005, it operated more all-cargo flights to china than any other airlines. Fedex invented innovative customer logistical management: ups always lagging behind. China"s solid manufacturing base is essential to neighboring asian economies, which export key electronic components. lts emerging middle class and growing consumerism will continue to attract capital goods and luxury items from the rest of the world. Fedex rushing and catching up to ups from its growth ratios. Its to see how much profit earned per dollar invested in the company by equity.
