FedEx Corporation Essay - 550 Words

FedEx Corporation (Research Paper Sample) Content: FEDEX CORPORATIONFedEx Corporation was formed on 2nd of October 1997 which serves as a holding company of four other subsidiary operating companies. The primary goal of this holding company is to provide policies, do planning, and manage the group of companies. The companys strategy to success has been to operate independently, to compete as a whole group of companies and to manage the group jointly. This has led to the expansion of their various companies due to the emerging macro-economic conditions. The company basically is driven by customer needs by providing them with easily accessible services and good customer experience. This means that these companies goals and strategy is geared towards serving the unique needs of each customer. This is evidenced by the by the facts that, (i), through the FedEx OneCall program, one customer care service provider is assigned to deals with a particulars customer account, (ii), The fedex.com website provides a single point of reference to access all the other companies details with links to their websites, customer care and invoicing information.FedEx Corporation basically provides a broad range of transportation needs, e-commerce and business services which are operated by subsidiary which compete among themselves and also collectively under the umbrella of FedEx brand. The four reputable business segments of FedEx Corporation are FedEx Express, FedEx Ground, FedEx Freight and FedEx Kinkos.There are several fixed assets which are traceable in each of these companies which includes, MD11 aircrafts, package handling equipment, computers, vehicles and facilities. The various costs that are not traceable in in these companies include, customer care cost, pension cost and business realignment costs.A cost centre is a department, a division or part of an entity or an organisation that does not necessarily directly make up the entitys profits, but it adds to the final revenues of the organisation, for example marketing department. A profit centre on the other hand is a specific part of a business that can be easily identified for example a department that contribute directly to the revenues of an organisation but it also has its costs, for instance a store. An investment centre is a critical department of an organisation that is used to control both the revenues and costs of that organisation, for instance in FedEx, Information Technology department.Margin TurnoverReturn on InvestmentFormula= Net operating income =Sales =Margin x Turnover Sales Average operating assetsFedEx ExpressMargin=1414/19485 =7.26% Turnover=19485/13130 =1.5 ROI=7.26*1.5=10.77%FedEx GroundMargin=604/4680 = 12.91% Turnover= 4680/2776 = 1.7 ROI= 12.91*1.7 = 21.76%FedEx FreightMargin=354/3217 = 11% Turnover= 3217/2047 = 1.6 ROI= 11*1.6 = ...