Tutor: Mr Tran Tuan AnhTutorial 4 – BA08Group member: Tran Thai Phuong Do Minh Ngoc

Outline

• 1. FedEx’s background

• 2. FedEx’s augmented service offering

• 3. Risk and control theory in FedEx

• 4. Application in Vietnam

• 5. Recommendation

Company backgroundHeadquarters Worldwide: Memphis, Tenn.

Asia: Hong Kong, China Canada: Toronto, Ontario Europe: Brussels, Belgium Latin America: Miami, Fla.

Founder: Mr Frederick W. Smith, Start operation in April 1973 in US, overseas operation since 1984Service Area: More than 220 countries and territories, including every address in the United StatesWorkforce: More than 140,000 employees worldwideVolume: Approximately 3.4 million packages and 10 million pounds of freight dailyAir fleet: 654 aircraftDelivery Fleet : More than 43,000 motorized vehicles

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FedEx’s augmented service offering1. Core service: courier service

• FedEx International Priority

• FedEx International Economy

• FedEx International Priority Freight

• FedEx International Economy Freight

• FedEx International Broker Select

• FedEx International Priority Direct Distribution

• FedEx Import One

FedEx’s augmented service offering2. Supplementary service• Consultation: Advice: - When a shipment has arrived its destination, customers are

advised in terms of customs

• Hospitality: Greeting: - Previous customers are quickly identified when they ring in - All new customers within 24 hrs have a thank-you call and

confirmation of reservation - Customer service number can be accessed any time • Safekeeping: Baggage handling: - Internet-based system allows customers to keep track of their

packages - Special software helps customers monitor, control their goods

and improve their warehouse

FedEx’s augmented service offering

• Delivery: process of package deliver

• Tracking delivery: by email, reference, tracking number, using FedEx desktop

• Exceptions: timely response to customers requests (software: DADS)

• Packaging: packaging in variety of shapes and sizes and free of charge when shipment is taken to FedEx (FedEx envelope, Pak, Tube, Box (S-M-L), 10kg box, 25kg box).

    

    

    

    

FedEx’s augmented service offering3. Facilitating services:• Information: Documentation:

– How to fill out an air waybill– First-time customers are highlighted on daily call –sheet

summaries – A kit of information is delivered to new customers within

two weeks of their signing with FedEx.– Software guides the users through preparation and

information of exporting – Rates and transit times – Manual guidelines for packing– Service location & hours of operation

FedEx’s augmented service offering

• Order-taking: FedEx supplies request form

• Procedure: software is designed to enable customers to complete transactions, call for courier pickups, etc. through Internet

Risk and control theory in FedEx• Functional risk: how customers are ensured their packages

are delivered on time and to the right places?• Psychological risk: customers’ fears of poor performance

(goods are damaged, trouble with paper works, etc.) Behavioral Control:

– Software is provided for customers to keep track on their goods’ whereabouts and handle their returns and repairs (EC- Manufacturing, EC- Return Management) using

tracking numbers, reference or email.– Customers can download preparation guides on filling airway bills, commercial invoice or packaging on official

website– Customs Clearance Department expedites duties and taxes

upfront on behalf of customers.

Risk and control theory in FedEx• Temporal risk: there might be worries about unexpected delays of

the delivery Cognitive Control: customers are informed of the delay and can

choose among alternative routes and transportation options for shipment (have software to predict weather, traffic, etc. FedEx plots alternative routes)

• Financial risks: will there be extra expenses and unexpected costs? Behavioral Control: Software (FedEx Ship Management) provides

rate quotes so that customers can begin their budgeting and accounting process immediately. In addition, customer can go online to check rates and transit time.

Application in Vietnam- MobifoneCompany background• Name: MobiFone• Industry: Mobile Telecommunications• Founded: April 16, 1993• Staff: 3,000• Parent: VNPT• Coverage stations: 20,000

Mobifone’s revenue

Mobifone’s augmented servicesCore services: • Mobile networks• Telecom services Supplementary services:

– Hospitality/ Entertainment:• Access to broadband internet (Fast Connect)• Share pieces of music with friends (Fun Ring)• Have background music played while making outgoing calls (Music Talk)• Chat with subscribers of other service providers SMS, Web (MobiChat)• Customers can keep in touch with anywhere in the world (International

Roaming)• Information (football, weather, exchange rates, etc.)is sent to customers

(Liveinfo)

Mobifone’s augmented servicesSupplementary services (cont):– Security:

• Store customer’s phonebook in case of SIM Card is ruined or lost.(Fonebackup)

– Special Assistance:

• Transfer a part of customer’s account to another account (M2U)• Missed calls are recorded and notified when the phone is turned on

(Missed Call Alert)• Sending a text that requests another local subscriber to call back (Call me)• Automatic service which answers customer’s phone and record messages (Voice mail)• Sent texts to a group of people (MobiList)• Check mail via mobile (BizMail)

Mobifone’s augmented services• Facilitating services- Information:• Service site: details on Mobifone’s shop is available online or printed on the backside of invoice.• Notification of changes: information about promotion, new services is available online or automatically sent to customers’ cellphone.• Responds to customers’ queries: Hotline services including Smart Care - 9224, 888 - Hotline to direct sales team • Summaries of account: customers can check account via texting,calling• Instructions on using services: specific information on using core services and value added service such as Funring, Music talk, Voicemail, Mobichat, etc and payment, price- Payment: customers can choose to pay online or pay at home whereby Mobifone’s employee will come to customers’ house to collect money (for post paid users) or using MobiEz, paper card or card code (for prepaid users)- Physical evidence: offices (5 centers- 106 offices nation wide) with amenities.

Recommendation

• Update and check up technology to avoid mistakes

• Provide clear information on services

References

• FedEx’s website. Available at URL: http://www.fedex.com/vn/

• Mobifone’s website. Available at URL: http://mobifone.com.vn/web/vn/