Opening Profile of Fredrick W. Smith Final

8/12/2019 Opening Profile of Fredrick W. Smith Final

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Opening Profi le of Fredr ick

W. Smith

AnjaliSharma

BaburamSubedi

KalpanaParajuli

PragatiDahal

ShraddhaShrestha

Presenter

Father of the Overnight Delivery Business

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Personal Profile

Name:Frederick WallaceSmith

Father :James FrederickSmith

DOB:August 11, 1944 Birth Place :

Marks, Mississippi, USA Education:Bachelor's

degree in Economics

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CompanyBackground

Name:Federal Express in 1971FDX Corporation in 1998

FedEx Corporation in January 2000 Headquarter :Memphis, Tennessee, USA Capital:$ 72 Millions

NYSE Listing : FDX (since December 1978) FY13 Revenue: $44.3 Billion

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Contd

Workforce: More than 300,000 team membersworldwide

Average Daily Volume: More than 10 million shipments

for express, ground, freight and expedited deliveryservices

Service Area: More than 220 countries and territories,including every address in the United States

fedex.com: Over 32 million unique visitors monthly;more than 6.5 million package tracking requests daily

and more than 20 million labels generated via FedEx

Ship Manager monthly. 4


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Contd

Operating Facilities: Express: 1,200 stations; 10 airexpress hubs; Ground: 33 ground hubs; over 500

pickup/delivery terminals; Freight; Approximately 355

service centers; Office: More than 1,800 locations

Air Operations: 634 aircraft; more than 375 airportsserved worldwide

Ground Fleet : More than 90,000 motorized vehicles for

express, ground, freight and expedited delivery service Drop off Locations: 690 FedEx World Service Centers;

1,750 FedEx Office locations; 6,400 FedEx Authorized;

Ship Centers and Alliance Partners; 36,500 FedEx Drop

Boxes. 5


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EarlyLife

Smith had a great interest in flying, and becamean amateur pilot as a teen.

He attended elementary school at Presbyterian

Day School and high school at Memphis

University School.

Smith learned to fly as a teenager, while flyingstudents and other passengers around, Smith

had the insight that led him to revolutionize the

delivery business.6


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Idea Behind Federal ExpressWhere and when did you get the idea for Federal Express?

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Turning pointof his Life

Smith as a charter pilot during his years as astudent at Yale University in the 1960s.

Smith, an economics major, first broached his

idea for an express delivery service in computerinformation age in 1965 which became one of

the most infamous term papers in Corporate

America. He received a modest C, though Smith

doesn't think that was the case.

Later, the paper became the idea of FedEx.

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After graduation, Smith enlisted in the U.S.Marine Corps, serving for three years (from 1966to 1969) as a platoon leader and a forward air

controller (FAC), flying in the back seat of the OV-

10.

Smith had the opportunity to observe themilitary's logistics system first hand.

While in the military, Smith carefully observed theprocurement and delivery procedures, fine-tuning

his dream for an overnight delivery service.11


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Turning Point in the Business

Smiths understanding of a market needhave been accurate, but he had not

counted on OPEC causing a massiveinflation of fuel costs just as his company

was getting started.

Company was loosing more than $1million a month.

But Smith never lost his faith in his idea.12


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After losing $27 million in the firsttwo years, Federal Express turned a

profit of $3.6 million in 1976. The major airlines, at that time the

giant industry, were not ready to

share the cargo market.

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Contd

He was not able to obtain approval andhad to operate with small planes.

Smith took his company public on April12, 1978, raising enough money topurchase used Boeing 727s from ailing

passengers airlines.

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Contd

The investors were richly rewarded, withGeneral Dynamics watching its $5 million

grow to more than $40 million by the time

Federal Express was first traded on the New

York Stock exchange in December 1978.

Today, Federal Express has become theworlds largest express transportationcompany.

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SuccessStory

After a hitch with the Marines in Vietnam, Smithreturned in the late '60s and began to chase his dream.

With $4 million inherited from his father and $80 million

from venture capitalists, he set up Federal Express Corp.in 1971.

The delivery service began modestly with small packagesand documents. On the first night of operations, a fleet

of 14 jets took off with 186 packages.

In the first two years, the venture lost $27 million. In ashort time, the company was on the verge of bankruptcy.

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Competitors in the express delivery business are stillrushing to catch up with FedEx's technological

advances.

In 2001, FedEx made an unprecedented deal withthe United States Post Office, contracting to

transport large mail shipments for the Post Office,

while installing FedEx drop boxes in U.S. Post Offices. FedEx purchased the document services companyKinko's, renaming the business FedEx Kinko's Office

and Print Center18


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Contd

Today, FedEx Express is the world's leadingexpress transportation provider.

Today's business world depends on businesses

like FedEx shipping all manner of goods around

the globe quickly and reliably.

Fred Smith amassed a vast personal fortune by

enabling the world of business to deliver its

goods quickly, anywhere in the world.

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Smith has companies including FedEx Services,FedEx Express, FedEx Ground and FedEx Freight.

FedEx serves more than 220 countries andterritories with operations that include 634aircraft and over 90,000 vehicles.

FedEx has continued to strengthen its industry

leadership over the past 40 years, and has beenwidely acknowledged for its commitment to totalquality service.

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StrategyImplementation

Fedexs strategy is implemented by establishing theculture as every employee helps in the achievement ofFedExsreputation of reliable overnight delivery.

Despite its high brand awareness, FedEx isrecommended to devise effective brand promotionsthrough corporate sponsorships.

Events in addition to traditional print and broadcastadvertising

FedEx express is famous for del iver ing cour iers atr ight time and at r ight place. This is the credibility of

FedEx. 21


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Contd

As FedEx has international presence and not

only limited to one country or continent, itchanges mode of its services with change in

countries.

Smith is responsible for providing strategicdirection for all FedEx Corporation operating

companies, including FedEx Services, FedEx

Express, FedEx Ground and FedEx Freight.22


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FedEx Smart Post Zone Skipping

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FedEx SisterOrganizationToday's FedEx is led by FedEx Corporation, which provides

strategic direction and consolidated financial reporting forthe operating companies that compete collectively under

the FedEx name worldwide:

FedEx Express,

FedEx Ground,

FedEx Freight,

FedEx Office,

FedEx Custom Critical,

FedEx Trade Networks,

FedEx Supply Chain Solutions and

FedEx Services. 24


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Values

People: We value our people and promotediversity in our workplace and in our thinking. Service:Our absolutely, positively spirit puts our

customers at the heart of everything we do.

Innovation: We invent and inspire the servicesand technologies that improve the way we work

and live.

Integrity: We manage our operations, financesand services with honesty, efficiency and

reliability.

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Values

Responsibility:We champion safe and healthyenvironments for the communities in whichwe live and work.

Loyalty: We earn the respect and confidenceof our FedEx people, customers and investorsevery day, in everything we do.

Safety: We operate safely to protect ouremployees, customers, infrastructure, andequipment.

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AWARDS

Malcolm Baldrige National Quality Awardin 1990. WorldsMost Admired Companies, 100 Best Companies to Work For and is onFORTUNEsBlueRibbonCompanies List.

Numerous civic, academic and business awardsincluding the Global Leadership Award from the U.S.

India Business Council, the George C. MarshallFoundation Award.

Circle of Honor Award from the Congressional Medalof Honor Foundation.

Smith is a member of the Aviation Hall of Fame. 27


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Recent Awards

FORTUNE Magazine: No. 10 among WorldsMostAdmired Companies(2013)

FORTUNEMagazine: 100 Best Places to Work For(2013)

Reputation Institute: No. 12 among "America'sMost Reputable Companies" (2013)

Bloomberg Businessweek Magazine: No. 12among The Civic 50 listing of Americas MostCommunity-Minded Companies (2012)

Black EnterpriseMagazine:Top 40 BestCompaniesfor Diversity(2012)

Wal-Mart:SmallParcel Carrier of the Year(2012)

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LessonLearnt

The growth and success of FedEx was driven by

innovative ideas.

He was highly committed towards his work.

To run a high service organization, there shouldhave to get the commitment of the people thatonly be able to deliver at the levels of

expectations of the customer.

If you're not willing to work hard and you're notwilling to give it your total commitment, you're

probably not going to be successful.29


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Corporate Philosophy of PSP: People ,

Service, Profit that the people treated fairly

provide good service and come up with

reasonable profit.

Success of business depends upon the

Employees with profit sharing, promotions,

and commitments.

Leading and empowering the employee to

make right decision.

Contd

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As time changed and markets changed andpeoples' expectations changed, we changed

with them.

Management system should built oncontinuous quality improvement.

Spending a huge amount of money and

employee friendly culture, after the philosophyand the continuous improvement management

system, are the key of their success.

Contd

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Contd

He took business is a game, it's great fun. Sense of humor is everything. You've

got to enjoy what you're doing, and havesome fun, and be able to laugh at

yourself a bit.

Even when things get bad, there's alwaysa humorous side to it.

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Criticism doesn't trouble. Criticism is areal opportunity to improve.

He had a strong desire to be asuccessful in his life. I've been veryinterested in the people who I work

with being successful as well.

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Summary

Empowering people was one of the key to success . Understand how to treat people with dignity and

respect.

Leadership ability: Frederick Smith isa transformational leader. A transformation leaderinspires and excites followers to high levels of

performance.

He had a ability to motivate employee, so they enjoyworking and want to come into work are loyal to FedEx

and they understand and believe in the vision he has for

the company.34


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Contd

He never lost the confidence. He was very sure that what they

were doing was extremelyimportant and was intended to be

successful.

Success would not be accomplishedwith his hands alone

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Customer Service in Nepal

FedEx is represented in Nepal by a nominated ServiceContractor. For more information about the FedEx servicesavailable from Nepal please contact:

Company:Everest De Cargo (P.) Ltd

Telephone:+977 1 4269 248Fax:+977 1 4269 249E-mail:[email protected] centers:

Kantipath, Kathmandu

Kamaladi, Kathmandu

Pulchowk, Lalitpur

Service Available:Export/Import 36
mailto:[email protected]:[email protected]:[email protected]


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Fact About Logo

The FedEx logo is legendary among designers. It has won over 40 design awards Ranked as one of the eight best logosin the last

35 years in the 35th Anniversary American Icon

issue of Rolling Stonemagazine.

Nearly every design school professor and graphicdesigner with a blog has at some point focused

on the FedEx logo to discuss the use of negative

space.38

The information about the package is just as

important as the package itself.


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Opening Profile of Fredrick W. Smith Final

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