Fed Ex Vs. Ups Essay

1-Determine how each corporate culture differs from the other. The two companies I have decided to discuss in this term paper is Federal Express (Fed Ex) and United Parcel Service (UPS). Both of these companies are logistic companies which specialize in delivering freight, cargo, and shipping services. Both of these companies cater to customers by making door to door deliveries locally and internationally. Both companies have both ground and air shipments but their prices do vary. UPS on the other hand allows their employees to form unions and this means employees of the latter have some advantage when it comes to salary increases, retirement benefits and other employee benefits that are enjoyed by other employees from other companies. Both FedEx and UPS have the same shipping options which are done through air and by land. However, when it comes to land transportation, UPS is leading due to the fact that the ground services offered by UPS are 5 times larger than that of FedEx. On the other hand, when it comes to shipment via air, FedEx is the leader. Statistics have shown that FedEx gets 25% more air shipments than UPS does.

When it comes to rates, both of these companies vary in prices by just a dollar or a few. Some of the services they offer have the same rates as well. But just recently, both these companies have adjusted their pricing scheme due to increasing fuel prices. FedEx has slowly gained in competition with UPS in terms of revenue. In a year, FedEx averages about $22 billion in sales while UPS averages $30 billion a year. Sometimes you just have to face the fact that a company’s success is best measured by its results of operations. When it comes to the selling rates of their shares in the stock market, UPS is still number one with their stocks valued at $82 billion, while FedEx trails by a large margin selling only $22 billion dollars in stocks.

2- Analyze three (3) ways that each unique culture has benefited by the other’s competition. Attaining a competitive advantage in package delivery business appears to be a challenging task. The main reason is that it is an easy-to- duplicate business both for the competitors and any new entrants. This is obvious in FedEx’s case: the company always has distinguished itself through technologically advanced services, expanding in many places and new products over other competitors, especially UPS (Boone & Kurtz, 2012). UPS was the main choice for low-priced ground delivery services however being a market follower in the air delivery sector could negatively affect its reputation and cause loss of market in the long term.

Read also  Maximizing Shareholder Wealth

Taking the above into consideration I think the three unique ways each culture has benefited by the other competition is by the combination of high-service quality, convenience and low rates can give a company a sustainable competitive advantage. 3- Speculate how each would continue to thrive if its current corporate culture would need to change in the near future. Be sure to state what change(s) you are speculating on and what led you to identify that possibility. Changes that I speculate that could change the current corporate culture in the near future that would include for both Fed Ex and UPS would include new demands in their industry. The two companies may see an increase in business so they may have to make adjustments in its culture in order to accommodate more customers and employees(Boone & Kurtz,2012). The two companies also have to be aggressively inclusive in their hiring, and favor ability over experience.

Reference

About FedEx. (2010). Retrieved from http://www.businessteacher.org.uk/free-business-essays/abou-fedex/ Boone, L.E. & Kurtz, D.L. (2012) Contemporary Business(14th Ed.). Hoboken, NJ: John Wiley & Sons. Gerhart, B., Hollenbeck, J., Noe, R., Wright, P. (2011) Fundamentals Of Human Resource Management (4th ed). New York, NY: McGraw-Hill.

Grant, L., ‘Why FedEx is Flying High’, 10 November, 1997, URL:http://pathfinder.comlfortuneI1997/9711 10/fed.html. Janah, M. andWilder, C., ‘Special Delivery’ ,InformationWeek Welcome to UPS. (n.d.).Shipping, Freight, Logistics and Supply Chain Management from UPS. Retrieved November 1, 2012 from http://www.ups.com.

More Essays

  • Analysis on Burger King Worldwide Inc. (bkw)

    Burger King (BKW) is the second largest fast food hamburger chain in the world which was founded in 1954; it operates in over 12,600 locations serving over 11 million customers daily in 83 countries and territories worldwide. About 95 percent of Burger King Restaurants are owned and operated by independent...

  • Company Law Question Solution

    QUESTION Ramrajee Baboo is a young attorney with a Master's Degree in Corporate Law, specialising in project financing documentation. Ramrajee has been appointed to the Board of UDECOTT as it moves forward in a new program based on project financing for its new proposed constructions. UDECOTT is a state...

  • Corporation_ Weekly Reflection

    3.1 Differentiate types of stocks issued by corporations. The team concluded that the different types of stocks issued by a corporation are common stock, preferred stock, and treasury stock. Everyone is aware that common stock gives stockholders the right to vote on actions dealing with corporate earnings...

  • Home Depot Analysis

    Strategic audit 1. Current Situation A. Current Performance The Home Depot Inc. performed quite well in the past few years from 2000- 2005. Firstly, It opened more than 900 stores until 2005 and their sales doubled during that period as well. Secondly, The Earnings per share growth at least 20% in each...

  • Shares and Joint Stock Companies in the New Economic Model

    Introduction Good morning, dear colleagues. I'm glad to see everyone here. Thank you for your coming. Let me start by introducing myself. My name is Elena Torlopova. I'm a freshman of the State University of the Ministry of Finance of the Russian Federation. I study at the department of the international...

  • Role of Port Authorities

    Ports usually have a governing body referred to as the port authority, port management, or port administration. Port authority is used widely to indicate any of these three terms. The definition of port authority has been defined in various ways. In 1977, a commission of the European Union (EU) defined a...

  • Stock Price

    1. If you bought a share of stock, what would you expect to receive, when would you expect to receive it, and would you be certain that your expectations would be met? 2. If most investors expect the same cash flows from Companies A and B but are more confident that Company A's cash flow will be close to...

  • Martha Stewart Lost Reputation

    Martha Stewart places her name on her products. She becomes the face of her company and the voice of her brand. When her personal misconduct occurred, she made her company vulnerable and risky as well. This case study examines how Martha Stewart managed her corporate communication when her public image and...

  • Stock Dividend

    * Definition: * A corporate distribution to shareholders declared out of profits, at the discretion of the directors of the corporation, which is paid in the form of shares of stock, as opposed to money, and increases the number of shares. * A dividend paid as additional shares of stock rather than as...

  • American Home Products Corp Case Analysis

    Introduction American Home Product (AHP) was founded in 1926 with the merging of several small home product companies. As the company expanded in the 1930's, it acquired companies in different businesses. After World War II, the company had four lines of businesses: prescription drugs, packaged...

Read also  Stock Holdings Final