PRESENTED TO: DR. R.

JAGADEESH SDM IMD

BY: GROUP # 2 A APOORVA M S (10009) KUSHAL BATHIJA (10012) HITARTH TANNA (10021) NIKUNJ PATEL(10029) SWARUP GATTANI (10112) AVINASH VUPPALA (10120)

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

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

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%

Overseas expansion
In 1989 it acquired tiger International as a major step to expand in Asia In 1995 it got the authority to serve in China

In 1988 it initiated the direct scheduled cargo to Japan Intercontinental operations began in 1984 with service to Europe and Asia

Since then the growth story on a global basis continued and now FedEx served over 210 countries

FedEx firsts
FedEx 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 offer time definite service for freight Money back guarantees and free proof of performance services that is now extended to its worldwide network

Question #1: What lessons Indian companies can take from FedEx?

 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

Question #2: What are the factors that have gone against India and why did FedEx not start its operations here?

The move..
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

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

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

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

Question #3:
FedEx won Malcolm Baldrige Award for the year 1990. Do you think that the efforts of the company are sufficient on the quality management front during all the years after the award?

YES
In 1994, FedEx received ISO 9001 registration for its worldwide operations FedEx express is handling about 3.2 million packages and documents every business day People- service- profit philosophy Continuous efforts for achieving 100% customer satisfaction Company won 193 awards in last 13 years

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

Performance

100% 80% 60% 40% 20% 0%

95

93

Domestic

International Performance

Preference

100% 80% 195 awards in 13 years 60% 40% 20% 0% FedEx Cometitor 53 35