The Battle For Value: Federal Express Vs. Ups

2063 words - 8 pages

I. Executive SummaryIn this report we focus on the two main competitors in the package delivery industry: Federal Express Corporation (FedEx) and United Parcel Service of America, Inc.Studying FedEx, UPS and their competitive relationship in the decade from mid - 80's to mid - 90's gives a good insight for the companies' and industry's future. The two companies have different strategic goals and are operating in the same industry but in different main markets: FedEx is working on "producing outstanding financial returns" and focuses on the overnight air market while UPS is looking for "earning reasonable profit" and its core business is the two-day ground delivery. However, by 1981, the two companies started to have a strong sense of rivalry with each other and up until 1995 the race seemed to be one of how quickly each competitor could transform itself into the other. It was then when the largest distribution contract ever awarded was given to UPS. The effects on FedEx were strong.This paper is an examination of FedEx's and UPS's financial performance from an investor's point of view and their managerial performance considering their strategic goals in the mid - 80's. We also, take an overview of the rivalry between the two companies and we put our earlier findings in this competitive framework in order to determine whether FedEx or UPS achieved Excellence in business. Our analysis concludes that between the two companies, UPS can be considered as excellent both for its good performance in the decade and for its good perspectives for the future.II. FedEx vs. UPS: The Battle for ValueII. 1 The Effects of J.C. Penney's Announcement on FedEx from an Investor's Point of ViewThe decision of J.C. Penney to award the $ 1 billion 5 year contract to UPS was clearly the best choice for the company. In 1992, when J.C. Penney went into business, UPS was operating more efficiently and more profitably than FedEx.After J.C. Penny's announcement in 1995, FedEx's stock price declined by 2.33%. The reason for the fall is the investor's non-trust in FedEx strength. Whereas it gave UPS secure earnings for 5 years as well as reviled a new image of reliability and stability. Therefore, UPS's reputation increased among the investors, possible future clients and partners while FedEx's reputation and customers' trust for high future gains declined. Moreover, as the 75% of FedEx's common shares were held by institutional investors, it was expected that they would follow discouraging news for earnings decrease that analysts gave for Federal Express in 1995. The stock became less attractive and so the price fell.In addition to that, prior to the announcement, FedEx has undergone few noticeable losses, which de-motivated FedEx's investors. Although volume growth remained strong, the declined domestic earnings and the concerns mentioned about the company's financial health discouraged investments.One can say that another reason to FedEx's price decline is that the employees...

Find Another Essay On The battle for Value: Federal Express vs. UPS

The Battle for Homosexual Adoption Essay

1907 words - 8 pages and lesbian parents to adopt children. Many research studies conclude that children are not adversely affected in any way from growing up in homosexual households; however, the fight for same-sex parents to be joined in marriage goes on, not only for the parent’s benefit, but to the benefit of the child as well. To put to rest any lingering doubts, society must be aware of the evidence that confirms that children raised by same-sex parents

The Battle of Mankind vs Nature

1296 words - 5 pages The Battle of Mankind VS Nature  Due to devastation caused by the dropping of the atomic bomb, man kind has only used nuclear weapons twice in war. In August 2026: There Will Come Soft Rains, the author, Ray Bradburry, writes about a nuclear holocaust in the year 2026. He writes about a house that services the nuclear explosion, and the house, which has advanced technology , performs daily activities to aid the Fetherstone family. The house is

The Battle of Books vs. E-books

723 words - 3 pages Daily Beast, showed that no winner would turn up in the near future. Form my perspective, I figure that the battle will continue for a long time. I will elaborate the merits and demerits of both on three sides. ConvenienceYou can download whatever you want and they will be delivered to your ereader device within minutes or seconds, like your Amazon Kindle or iPad,and the resource you can choose will give you a overall view of all kinds of books

The Evolution vs. Devolution of the U.S. Federal Government

2241 words - 9 pages beaucracy. There are no bosses to answer to, no sales to meet, and In most cases the citizens have to buy the services provided so such as passports, drivers license, or paying taxes so whatever process is necessary must be completed. While in the private sector customer's value service, quality, efficiency while having many competitors to choice from no not buy at all.Furthermore federal and local governments receive reoccurring money for

The Roman Soldier: Primed for Battle

1281 words - 5 pages . The drills consisted of weapon training, defense, and proper mounting, dismounting, and riding a horse while being fully armed. Without the soldiers having these skills, Rome would be pervious to an attack. They needed to be ready for battle at all times. The weapons of the Roman soldier were of the utmost importance to his survival and the defense of Rome. For this reason they were always state-of-the-art for the era. While numerous weapons

The Growing Battle for Women's Equality

2083 words - 8 pages The Growing Battle for Women's Equality For generations women have been fighting for equality in our country. Although there have been many advances in this movement women are still treated unequally today. One of the most critical problems with women's rights today deals with women in the work place. Human rights violations against women must be documented, publicized, and stopped. Human rights violations against women have for too long

ObamaCare: The Federal Government Should Provide Free Healthcare for Everyone

1207 words - 5 pages by the Democratic senate for universal healthcare. Health reform will make healthcare more affordable, make health insurers more accountable; expand health coverage to each Americans. It will stabilize family budgets, the Federal Budget, and the economy. Massachusetts Health Reform Law, popularly known as “Chapter 58”, was birthed with the intention of creating a panacea to the social and financial ills brought about by an inequitably distributed

Ever Ready vs. Duracell: The battle for portable power The essay analyses a case study on Ever Ready losing market share.

2893 words - 12 pages was inferior, hard to grasp.Ever Ready also lost the battle for shelf space, which was one of the key success factors of Duracell in the mid '80s. Since Duracell's trade margin was higher than that of Ever Ready's, supermarkets chose to carry Duracell batteries instead. This can be well quantified by the fact that 4 of the 5 major grocery chains carried Duracell's products rather than Ever Ready's.The Future of Ever Ready, RecommendationsIn the

The Battle for Political Power in The Tempest

3957 words - 16 pages that humans do not have an innate selfish desire. Humans, as Gonzalo assumes are not innocent and thus, order is needed. The Tempest is a play about the battle of political power. Throughout the play, the struggle to gain and control political power becomes central. This desire for attainment allows for other themes to derive such as colonization. Colonization becomes a very complex idea in which the struggle for power branches to many

A Bloody Battle for the British At Kings Mountain

633 words - 3 pages would we be today, if this battle hadn't occurred?It is said the thirteen colonies were saved from the war because of this battle. If the American forces had not attacked the camp on the mountain, there might have been only ten colonies. The forces that went against the rebels were probably not even going to be paid for going into this battle. Why did the volunteers still go after the rebels? Some people say that they were patriots who would do

The Fight For Equality in Ralph Ellison's Battle Royal

1198 words - 5 pages Merriam-Webster defines battle royal as “a fight participated in by more than two combatants; especially: one in which the last man in the ring or on his feet is declared the winner.” In Ralph Ellison’s short story, “Battle Royal”, the theme most prevalent throughout the narrative is, “The Fight for Equality in a White, Male-Driven Society.” The author’s use of symbolism in the narrative supports this idea. Such things as the grandfather’s curse

Similar Essays

The European Union Vs. A Federal System

978 words - 4 pages autonomous from central authority. Supremacy for EU law over member states law is based on the treaties and can be found in the Van Gend & Loos case (26/62) and the Costa Enel case (6/64). On the other hand the United States also derives its supremacy from its constitution. Art. VI US Const. Federal law, federal courts and Marbury vs. Madison case law confirms national laws supremacy over the states. Constitutional clause? 3. Representation

The Battle For Net Neutrality Essay

1401 words - 6 pages The Battle for Net Neutrality Last January 14, 2014, a Washington D.C. court ruled out the Federal Communications Commission’s regulation on Open Internet or more popularly known as net neutrality. The decision on the case sparked debate between those fighting for net neutrality and the companies who want to take advantage of the internet’s popularity. This was a victory for Verizon, an Internet Service Provider, and other companies like it. In

Inflation Target For The Federal Reserve

1536 words - 6 pages new agency. This debate is simply a different side of a much older debate about the role of the Federal Reserve. For years policy makers have argued that the Fed has far too many mandates for one institution.The Federal Reserve currently has several policy goals. The Fed is responsible for monitoring systemic risk in the financial sector and monitoring the stability of individual banks in order to protect the financial system. The Fed is charges

The Battle For New Guinea Essay

3235 words - 13 pages AMERICAN MILITARY UNIVERSITYThe Battle for New GuineaThe battle for the Pacific was largely fought by the United States Navy and the Marine Corps. The island hopping campaigns fought by the Marines take center stage with battles like Iwo Jima, Saipan, Tarawa, and Guadalcanal. The battle of New Guinea should not over look as the turning point of the Pacific Campaign during World War Two. The key to liberating the Pacific islands was a starting