Federal Express (B) Case Study

Q: Do you think messenger Pak is a not bad(predicate) pass in or a bad suitable for national official expressage? wherefore? The messenger Pak was a good raiment for Federal post (FEC) from an environmental, political party, cost, and competitive standpoint. The business sector environment of the mid mid-seventies airfreight industry played intimately directly into the relative strengths of a small- tract air service corresponding FEC. As stated in the persona study, Bulk harvest-times and goodness goods were rarely sent by air. Indeed, most air shipments were quite small. This type of environment, combined with FECs strange flight routes and reliable pick-up/ auction pitch system created an opportunity that the phoner wisely seized with messenger Pak. In 1975 and 1976, a majority of FECs shipments were for next sidereal day talking to (Exhibit 4). So from a company perspective, Courier Pak fit perfectly into FECs yield mix. On the one hand you had precedency One tract obstetrical economy ( harm based on clog down and distance. Average outlay in 1976=$23.56), which guaranteed overnight speech anywhere in the FEC system, and on the other hand you had Courier Pak (a surplus 12 in. x 151/2 in. waterproof, tearproof envelope), which guaranteed overnight delivery of documents or other items up to two pounds anywhere in the FEC system--all for a fixed expense of $12.50. Rounding out FECs product stemma you had prototype breed Service (price based on free weight and distance.

Average price in 1976=$12.62), which guaranteed two-day package delivery and parsimony Air, which guaranteed three-day package delivery. From a cost perspective, the size of the Courier Pak as well as the manner in which consumers underutilized this product in terms of weight also fit FEC. As stated in the case study, the variable costs associated with the median(a) antecedence One package totaled $10.61; for the average Standard Air Service package they were $9.21; and for... If you want to get a replete(p) essay, order it on our website: Ordercustompaper.com

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