section a group no 2 case study

8/3/2019 Section a Group No 2 Case Study

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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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section a group no 2 case study

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