section a group no 2 case study
TRANSCRIPT
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BY: GROUP # 2 A
APOORVA M S (10009)KUSHAL BATHIJA (10012)
HITARTH TANNA (10021)NIKUNJ PATEL(10029)
SWARUP GATTANI (10112)AVINASH VUPPALA (10120)
PRESENTED TO:
DR. R. JAGADEESH
SDM IMD
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Introduction
Fredrick W. Smith
Term paper
Passenger route systems used by most airfreight shippers
are economically inadequate
In august 1971,Smith bought controlling interest in
Arkansas Aviation sales , located in Little Rock,
Arkansas
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Contd
Federal Express incorporated in June 1971 and
officially began its operations on 17 April 1973
Launched 14 small aircrafts from Memphis
International Airport
First night of operations:
FedEx delivered 186 packages to 25 US cities from
Rochester, New York to Miami , Florida
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Company growth
The company turned profitable in July 1975
Deregulation on air cargo in 1977 helped the
company to use larger aircrafts (Boeing 727s and
McDonnell-Douglass DC-10s)
The company entered its maturing stage in the first
half of 1980s with a growth rate of 40%
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Intercontinentaloperations beganin 1984 withservice to Europe
and Asia
In 1988 it initiatedthe direct scheduledcargo to Japan
In 1989 itacquired tigerInternational as amajor step toexpand in Asia
In 1995 it gotthe authority toserve in China
Overseas expansion
Since then the growth
story on a global basis
continued and now FedEx
served over 210 countries
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FedEx firstsFedEx originated the overnight letter and was the first:
Overnight package delivery
To offer next day delivery by 10:30 a.m.
Saturday delivery
Express company to offertime definite service for
freight
Money back guarantees and free proof of performance
services that is now extended to its worldwide network
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Question #1:
What lessons Indiancompanies can take from
FedEx?
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Effectiveness
Latest technology- DADS (digitally assisted
dispatch system)
Efficient- QAT (Quality Action Terms)
Building relationship-SQI (Service quality
indicators)
Maintain, Monitor, or Improve Quality
FedEx culture Quality needs Price
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Question #2:
What are the factors thathave gone against India and
why did FedEx not start its
operations here?
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Late Starter
Project Indigo
Invest in infrastructure
Infrastructure or an express trucking unit
To add capacity by connecting India to other Asian
countries
Six months of its launch, Project Indigo was
dead
The move..
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What happened?
Agency Model
Franchisee does the last mile pick up DHL acquiring its former partner BLUE
DART
TNT strengthened its position in India by
acquiring SpeedAge
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The respond
Acquired AFL
Third-party logistics business for more than 25 years
Brings in much-needed scale and volume for FedEx in
India
Licensee model
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Suggestions
The chance to break into the big league in India
good stead is its global experience of cracking
markets and its deep pockets
FedEx is most effective in expanding
After renewal FedEx now is market leader in
China
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Question #3:FedEx won Malcolm Baldrige Award for
the year 1990. Do you think that theefforts of the company are sufficient on
the quality management front during all
the years after the award?
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YES
In 1994, FedEx received ISO 9001 registration
for its worldwide operations
FedEx express is handling about 3.2 millionpackages and documents every business day
People- service- profit philosophy
Continuous efforts for achieving 100%customer satisfaction
Company won 193 awards in last 13 years
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Also..
No Lay-off policy
12 components quality performance index
Service quality indicators
Employee motivation through IT backbone
SQI for all employees including COO and
CEO
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0%
20%
40%
60%80%
100%
Domestic International
Performance
95 93
Performance
0%
20%
40%
60%
80%
100%
FedEx Cometitor
53 35
Preference
195 awards in 13 years
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