Ups vs Fedex Analytical Report - 3748 Words

COMMUNICATION COMPARISON FedEx vs. UPS Background: The basis of the analytical report will be comparing Fed Ex and the United Postal Service (UPS). These two companies are the top in their industry. Each company trying to achieve the role of the industry leader they constantly battle head to head combining strategy and brute force. Fed Ex was incorporated in 1971, but did not officially begin operations until April of 1973. Fed Ex started out delivering to only 25 cities and did not start to expand until 1977. UPS was founded in 1907 starting out with a Model T Ford and a few motorcycles. UPS has since grown its fleet into 15,000+ trucks along with a large fleet of aircrafts and services over 200 countries and territories.†¦show more content†¦In 2009 FedEx launched a multimillion –dollar campaign aimed at its rival UPS, â€Å"Why is mega-corporation UPS trying to use its political clout to get a bailout from the U.S. Congress, leaving you to pay the tab†. Rival UPS calls FedEx the only company in the transportation industry with ‘ground’ employees covered by a railroad and airline law. Most of the forces are from moderate to low besides the threat of intense rivalry which signals that this is an attractive industry to be within. Business Level Strategy: From the beginning UPS and FedEx both had very different strategies in the delivery industry. UPS was focused on ground transportation, as more of a substitute for United States Postal Service. UPS has over 100,000 ground transportation vehicles compared to only 20,000 ground vehicles in service at FedEx. The focus of FedEx has always been to be an air delivery company that is trying to pursue a strategy of being able to deliver a parcel the next day. FedEx proves this focus with nearly 700 jets in service compared to only 300 at rival UPS. FedEx and UPS both say the market of overnight delivery as the direction to pursue. UPS was able to accept this and move forward allowing its ground department to absorb the expense, while FedEx suffered a great deal and we hit with higher cost do to them having to hire independent contractors. Over the years, these two companies have changed their overall positioning strategy in the domestic delivery industry. 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The Business of Happiness Example

Essays on The Business of Happiness Book Report/Review ï » ¿The Business of Happiness PART 1 Due: 5:00 p.m. Monday, October 4 10 points Note: This assignment loses a half point every hour after 5:00 on Monday. Responses received after 5:00 p.m. on Tuesday, October 5 will receive NO credit. 1. Having read Mr. Leonsis’ book, what one question would you like to ask him? I would ask Mr. Leonsis if he would ever consider adding to his 101 Life List. 2. What did you read that leads you to ask this question? It seemed like the Life List grounded Mr. Leonsis. He was focused on his goals. These goals as he accomplished them made him happy. The whole book was of a man of action. As he ages, I do not see him retiring and sitting in a rocking chair. After retiring from AOL, he has gone on to serve of different boards, create movies, and give to charities. I was just wondering if he completed the list, if he would create another list. The second reason I would ask about a second list is if his happiness revolves around the list. Does the accomplishment of checking off items on the list make Mr. Leonsis happy, or are these truly things that he wants to accomplish. Is the list a challenge or a true realization of his dreams? I know he tried to create a list about things that would make him happy, but how did he know what would make him happy? At 28 was he mature enough to know what would make him happy? PART 2 Due: 10:00 a.m. Wednesday, October 6 50 points 1. Why did Mr. Leonsis write this book? What is his primary point or message? Mr. Leonsis wrote this book to help people realize that success does not bring happiness, but happiness does bring success. 2. How does he support his primary claim or message? That is, what evidence does he use to make his case? Mr. Leonsis uses his life as evidence to make his case. He also points out that successful people are not always happy. Michael Jackson, Hugh Hefner, and others were examples. However, Mr. Leonsis does point out that all happy people are successful. This success might not be fortune and fame, but happiness has a success that cannot always be measured. 3. Think about your experiences (as the reader) compared to Mr. Leonsis’ experiences (as the author). What do the two of you have in common? How are the two of you different? Think especially about his life up to the point where he entered Georgetown as a freshman in college. I can identify with Mr. Leonsis’ school experiences. Especially when he had to leave Brooklyn Tech to move with his family, since I had to move with my family before finishing important school events. My experiences have been different due to Mr. Leonsis. While AOL and the Internet were new to Mr. Leonsis, I have been raised with the Internet. This is one market that has been conquered by Leonsis’ generation. Although I am positive that new territory will open up for my generation. 4. Mr. Leonsis identifies six (6) common practices of happy people. With which of these six practices do you most agree? Alternatively, which of the 6 do you think is already a strength of yours? Explain. I most agree with the giving back. I do not know if it is Karma, or good will, but I feel the more you give back, the more you will receive. This is one of my strengths. I like to give back my time, money, or whatever else I can spare. Gratitude is another one of my strengths. I believe when someone helps you the least you can give is gratitude. 5. Is there one of the six practices that you would not include as a common practice of happy people? Alternatively, which of the six practices do you feel is your weakest area? Which practice do you need to work to improve? Multiple communities of interest would not be a common practice of happy people. I am sure that happy people do have multiple communities of interests, but some people can spread themselves thin. I feel this would be my weakest area. It is hard to go and meet new people and groups. It is easier to manage fewer groups than a multitude. 6. Do you agree or disagree with Mr. Leonsis primary message? Explain. I agree with Mr. Leonsis’ primary message. Not matter your monetary status, if you are happy that makes you rich. It is a simple message, but it rings true. I do not believe by using Leonsis’ list I will become rich or successful, but I believe happiness is obtainable. 7. Would you recommend this book to others? Why or why not? I would recommend this book to others because of the message. Happiness should be encouraged on the road to success. This book goes deeper than your ordinary self-help book. I found it very useful.

Describing Gearing and Its Importance in Capital Structure of a Company Free Essays

A company with low gearing is one that is mainly being funded or financed by share capital (equity) and reserves, whilst the one with a high gearing is mainly funded by loan capital. Now the question to address is which of the two (equity and debt) is cheaper to the company? The answer is that cost of debt is cheaper than cost of equity. This is because debt is less risky than equity and the tax advantage of debt over equity as discussed below: Risk: debt is less risky than equity because: the required return needed to compensate the debt investors is less than the required return needed to compensate the equity investors; †¢the payment of interest is often a fixed amount and compulsory in nature and it is paid in priority to the payment of dividends; †¢in the event of a liquidation, debt holders would receive their capital repayment before shareholders as they are higher in the creditor hierarchy (the order in which creditors get repaid), as shareholders are paid out last. We will write a custom essay sample on Describing Gearing and Its Importance in Capital Structure of a Company or any similar topic only for you Order Now Corporate tax advantage: in the income statement, interest (on debt) is subtracted before the tax is calculated; thus, companies get tax relief on interest. However, dividends (on equity) are subtracted after the tax is calculated; therefore, companies do not get any tax relief on dividends. From the above discussion, we can observe that debt is cheaper than equity when financing a company. However, there are implications of pursing high gearing rather than low gearing. Watzon and Head (2007) described the following as implications of high gearing: Increased volatility of equity returns: the higher a company’s level of gearing, the more sensitive its profitability and earnings are to changes in interest rates. The company’s profit and distributable earnings will be at risk from increases in the interest rate. This risk will be borne by shareholders as the company may have to reduce dividend payments in order to meet its interest payment as they fall due. This kind of risk is referred to as financial risk. The more debt the company has in its capital structure, the higher will be its financial risk. Increased possibility of bankruptcy: at very high levels of gearing, shareholders will start to face bankruptcy risk. This is defined as the risk of a company failing to meet its interest payments commitment and hence putting the company into liquidation. This is because interest payment may become unsustainable if profits decrease or interest payments on variable rate debt increase. Reduced credibility on the stock exchange: at a very high level of gearing, investors will be reluctant to buy the company’s shares or to offer further debt. The encouragement of short-termist behaviour: in order to prevent bankruptcy, managers may focus on the short-term need to meet interest payment rather than long term objective of wealth maximisation. Effects of capital gearing upon WACC, company value and shareholder wealth The capital structure of a company refers to the mixture of equity and debt finance used by the company to finance its assets. Some companies could be all-equity-financed and have no debt at all, whilst others could have low levels of equity and high levels of debt. The decision on what mixture of equity and debt capital to have is called the financing decision. The financing decision has a direct effect on the weighted average cost of capital (WACC). The weighted-average cost of capital (WACC) represents the overall cost of capital for a company, incorporating the costs of equity, debt and preference share capital, weighted according to the proportion of each source of finance within the business (Cornelius, 2002). The weightings are in proportion to the market values of equity and debt; therefore, as the proportions of equity and debt vary so will the WACC. Therefore the first major point to understand is that, as a company changes its capital structure (i. . varies the mixture of equity and debt finance), it will automatically result in a change in its WACC. It is important to note that the financing decision (i. e. altering the capital structure) affects the overall objective of maximizing shareholder wealth. This is based on the ground that wealth is the present value of future cash flows discounted at the investor’s required return. The market value of a company is equal to the present value of its future cash flows d iscounted by its WACC. It is fundamental to note that the lower the WACC, the higher the market value of the company, and vice versa. Therefore, a change in the capital structure to lower the WACC can then increase the market value of the company and thus increase shareholder wealth. As a result, the search for optimal capital structure becomes the search for the lowest WACC, because when the WACC is minimized, the value of the company and shareholder wealth is maximized. Hence, it is the responsibility of finance managers to find the optimal capital structure that will result in the lowest WACC. How to cite Describing Gearing and Its Importance in Capital Structure of a Company, Papers