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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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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Idea Behind Federal ExpressWhere and when did you get the idea for Federal Express?
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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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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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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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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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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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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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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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Last but not least
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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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