Opening profile of Fredrick W. Smith


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Opening profile of Fredrick W. Smith

  1. 1. Opening Profile of Fredrick W. Smith Presenter Father of the Overnight Delivery Business Anjali Sharma Baburam Subedi Kalpana Parajuli Pragati Dahal 1 Shraddha Shrestha
  2. 2. Personal Profile ╬ ╬ ╬ ╬ ╬ Name: Frederick Wallace Smith Father : James Frederick Smith DOB: August 11, 1944 Birth Place : Marks, Mississippi, USA Education: Bachelor's degree in Economics 2
  3. 3. Company Background • Name: Federal Express in 1971 FDX 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 3
  4. 4. Contd… • Workforce: More than 300,000 team members worldwide • Average Daily Volume: More than 10 million shipments for express, ground, freight and expedited delivery services • Service Area: More than 220 countries and territories, including every address in the United States • 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
  5. 5. Contd… • Operating Facilities: Express: 1,200 stations; 10 air express 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 airports served 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 5 Boxes.
  6. 6. Early Life ╬ Smith had a great interest in flying, and became an 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 flying students and other passengers around, Smith had the insight that led him to revolutionize the delivery business. 6
  7. 7. Idea Behind Federal Express Where and when did you get the idea for Federal Express? 7
  8. 8. Idea Behind Federal Express Where and when did you get the idea for Federal Express? 8
  9. 9. Idea Behind Federal Express Where and when did you get the idea for Federal Express? 9
  10. 10. Turning point of his Life ╬ Smith as a charter pilot during his years as a student at Yale University in the 1960s. ╬ Smith, an economics major, first broached his idea for an express delivery service in computer information 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. 10
  11. 11. Contd… ╬ After graduation, Smith enlisted in the U.S. Marine Corps, serving for three years (from 1966 to 1969) as a platoon leader and a forward air controller (FAC), flying in the back seat of the OV10. ╬ Smith had the opportunity to observe the military's logistics system first hand. ╬ While in the military, Smith carefully observed the procurement and delivery procedures, fine-tuning his dream for an overnight delivery service. 11
  12. 12. Turning Point in the Business ╬ Smith’s understanding of a market need have been accurate, but he had not counted on OPEC causing a massive inflation of fuel costs just as his company was getting started. ╬ Company was loosing more than $1 million a month. ╬ But Smith never lost his faith in his idea. 12
  13. 13. Contd… • After losing $27 million in the first two 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. 13
  14. 14. Contd… • He was not able to obtain approval and had to operate with small planes. • Smith took his company public on April 12, 1978, raising enough money to purchase used Boeing 727s from ailing passengers airlines. 14
  15. 15. Contd… • The investors were richly rewarded, with General 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 the world’s largest express transportation company. 15
  16. 16. Success Story • After a hitch with the Marines in Vietnam, Smith returned 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 packages and 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 a short time, the company was on the verge of bankruptcy. 16
  17. 17. Contd… • Unlike many entrepreneurs, Fred Smith is also directs every facet of corporate strategy. • Another principle Smith applied at FedEx was to make sure every employee felt they could share in the success of the company. • In 1997, Smith acquired the $2.7 billion Caliber System, whose trucking subsidiary RPS ranked second in ground shipments, exceeded only by UPS, the United Parcel Service. • Continuous improvement is one of his fundamental management principles. 17
  18. 18. Contd… • Competitors in the express delivery business are still rushing to catch up with FedEx's technological advances. • In 2001, FedEx made an unprecedented deal with the 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 company Kinko's, renaming the business FedEx Kinko's Office and Print Center 18
  19. 19. Contd… • Today, FedEx Express is the world's leading express 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. 19
  20. 20. Contd… • Smith has companies including FedEx Services, FedEx Express, FedEx Ground and FedEx Freight. • FedEx serves more than 220 countries and territories with operations that include 634 aircraft and over 90,000 vehicles. • FedEx has continued to strengthen its industry leadership over the past 40 years, and has been widely acknowledged for its commitment to total quality service. 20
  21. 21. Strategy Implementation • Fedex’s strategy is implemented by establishing the culture as every employee helps in the achievement of FedEx’s reputation of reliable overnight delivery. • Despite its high brand awareness, FedEx is recommended to devise effective brand promotions through corporate sponsorships. • Events in addition to traditional print and broadcast advertising • FedEx express is famous for delivering couriers at right time and at right place. This is the credibility of FedEx. 21
  22. 22. Contd… • As FedEx has international presence and not only limited to one country or continent, it changes mode of its services with change in countries. • Smith is responsible for providing strategic direction for all FedEx Corporation operating companies, including FedEx Services, FedEx Express, FedEx Ground and FedEx Freight. 22
  23. 23. FedEx Smart Post Zone Skipping 23
  24. 24. FedEx Sister Organization Today's FedEx is led by FedEx Corporation, which provides strategic direction and consolidated financial reporting for the 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 24  FedEx Services.
  25. 25. Values • People: We value our people and promote diversity 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 services and technologies that improve the way we work and live. • Integrity: We manage our operations, finances and services with honesty, efficiency and reliability. 25
  26. 26. Values • Responsibility: We champion safe and healthy environments for the communities in which we live and work. • Loyalty: We earn the respect and confidence of our FedEx people, customers and investors every day, in everything we do. • Safety: We operate safely to protect our employees, customers, infrastructure, and equipment. 26
  27. 27. AWARDS • Malcolm Baldrige National Quality Award in 1990. • “World’s Most Admired Companies,” • “100 Best Companies to Work For” and is on FORTUNE’s “Blue Ribbon” Companies List. • Numerous civic, academic and business awards including the Global Leadership Award from the U.S. • India Business Council, the George C. Marshall Foundation Award. • Circle of Honor Award from the Congressional Medal of Honor Foundation. • Smith is a member of the Aviation Hall of Fame. 27
  28. 28. Recent Awards • FORTUNE Magazine: No. 10 among “World’s Most Admired Companies” (2013) • FORTUNE Magazine: “100 Best Places to Work For” (2013) • Reputation Institute: No. 12 among "America's Most Reputable Companies" (2013) • Bloomberg Businessweek Magazine: No. 12 among “The Civic 50” listing of America’s Most Community-Minded Companies (2012) • Black Enterprise Magazine: Top 40 “Best Companies for Diversity” (2012) • Wal-Mart: “Small Parcel Carrier of the Year” (2012) 28
  29. 29. Lesson Learnt • 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 should have to get the commitment of the people that only be able to deliver at the levels of expectations of the customer. • If you're not willing to work hard and you're not willing to give it your total commitment, you're probably not going to be successful. 29
  30. 30. Contd…  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. 30
  31. 31. Contd… • “As time changed and markets changed and peoples' expectations changed, we changed with them.” • Management system should built on continuous quality improvement. • Spending a huge amount of money and employee friendly culture, after the philosophy and the continuous improvement management system, are the key of their success. 31
  32. 32. Contd… • 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 have some fun, and be able to laugh at yourself a bit. • Even when things get bad, there's always a humorous side to it. 32
  33. 33. Contd… • Criticism doesn't trouble. Criticism is a real opportunity to improve. • He had a strong desire to be a successful in his life. “I've been very interested in the people who I work with being successful as well.” 33
  34. 34. Summary • Empowering people was one of the key to success . • Understand how to treat people with dignity and respect. • Leadership ability: Frederick Smith is a transformational leader. A transformation leader inspires and excites followers to high levels of performance. • He had a ability to motivate employee, so they enjoy working and want to come into work are loyal to FedEx and they understand and believe in the vision he has for the company. 34
  35. 35. Contd… • He never lost the confidence. • He was very sure that what they were doing was extremely important and was intended to be successful. • Success would not be accomplished with his hands alone 35
  36. 36. Customer Service in Nepal ╬ FedEx is represented in Nepal by a nominated Service Contractor. For more information about the FedEx services available from Nepal please contact: ╬ Company: Everest De Cargo (P.) Ltd ╬ Telephone: +977 1 4269 248 ╬ Fax: +977 1 4269 249 ╬ E-mail: ╬ Service centers: − Kantipath, Kathmandu − Kamaladi, Kathmandu − Pulchowk, Lalitpur ╬ Service Available: Export/Import 36
  37. 37. Last but not least… 37
  38. 38. Fact About • • • • Logo The information about the package is just as important as the package itself. The FedEx logo is legendary among designers. It has won over 40 design awards Ranked as one of the eight best logos in the last 35 years in the 35th Anniversary American Icon issue of Rolling Stone magazine. Nearly every design school professor and graphic designer with a blog has at some point focused on the FedEx logo to discuss the use of negative space. 38
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