Global Finance

905 words, 4 pages

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They included an aggressive campaign to streamline the business and decentralize decision making, which was called “Simplify, Focus and Act”, and a three pronged strategic focus on branding, distribution, and systems development. Maxim’s goal for LA was to become “strategically led, competitively focused, market oriented, employee driven, and operationally excellent” (Philippe-Pierre Dornier, Ricardo Ernst, Michel Fender, and Panos Kouvelis, (1998). A company’s value chain strategy must produce results that support the company’s higher-level strategic initiatives. Two popular strategic initiatives are first, to satisfy customer’s expectations of receiving value for their money when purchasing the company’s goods or services, and second, to develop a sustainable competitive advantage. In order for these two popular strategic initiatives to be met they sourcing, manufacturing, and distribution must be competitively priced, quality made and quickly delivered. The three strategies are intimately linked together by the consumer and how the product gets to the consumer. Consumers are more informed, more demanding, and less loyal. the competitive pressures of the business environment have forced companies to look at sourcing, manufacturing, and distribution as an entire supply chain.
Federal Express was incorporated in 1971 by Frederick W. Smith, Jr. He designed a nationwide air service network to resemble the spokes of a wheel, with Memphis, Tennessee, as hub. Utilizing the hub as a central processing center for all packages, FedEx pioneered next day delivery, and by 1991 the company had become the premier carrier in the overnight delivery business. FedEx had similar issues as LA their operation was large in 176 countries, however, the business was down from the prior year and a small European business was unprofitable. In December 1987 FedEx created the Business Logistics Service Division which specialized in logistics services to businesses thro View More »

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