Ups vs Fedex Essay Example for Free

Ups vs Fedex Essay In 1975, UPS promised package delivery to every address in the United States; FedEx was not able to guarantee delivery in every area. When deregulation of the domestic airline industry and trucking industry occurred, the operating landscape changed, and FedEx became the beneficiary by expanding its delivery fleet. The just-in-time supply movement enabled FedEx to grow as well by creating a larger demand for express delivery. Technological innovations, such as its package tracker, assisted FedEx in improved customer service; UPS was able to keep pace with technological innovations of its own, such as its own package tracker. UPS’s key to success was and remains efficiency, timing all delivery routes to traffic signal patterns for example. UPS also expanded into Canada and Germany before FedEx. In recent years UPS has invested heavily in information technology, aircraft and other facilities. Competitor Comparison UPS went public in 1999, starting direct stock competition with FedEx UPSFedEx Offered package delivery services to the entire US and over 200 countries, delivered over 13 million packages and achieved profits of $3 billion, and AAA bond rating in 1983Operational leader reached $1 billion in revenues during 1983 and was poised to own the market for express delivery Restructured by becoming an aggressive company and expanding through acquisitionsNo unions Acquired Miami based carrier with operations in Latin AmericaAchieved $15 billion in assets, net income of $830 million on revenues of $22. billion in 2003 Opened Mail Boxes Etc. franchise stores, providing packing, shipping and mail service Invested in IT, aircraft and facilities to support service innovations, quality and reduce cost Became involved with all aspects of supply chain logistics to offer another service to its customers By 2003, UPS and FedEx were in very similar business positions, providing express service in the US and abroad. Express Segment: 1999 2003 UPSFedEx Focus on customer serviceFocus on customer service Started price war, but later settled on regular price increasesSettled on regular price increases Cut costs through economies of scale, investments in IT and business process reengineeringCut costs through economies of scale, investments in IT and business process reengineering IT: UPS employs on DIADs for drivers to scan package barcodes during pickupIT: COSMOS transmits data from package movements, customer pickups, invoices and deliveries to central database in Memphis, TN UPS installed drop off boxes, 165 drive through and 371 express delivery stores, Saturday pickups to expand services and match FedExPurchased ground vehicles worth $200 million to match UPS delivery fleet Offered integrated logistics service to large corporate clients with total inventory controlCompeted for large corporate clients providing integrated logistics service In the international package-delivery market, UPS exceeded and had more success and dollar investment marked for international growth than FedEx . International Package-Delivery Market European entry in 1988 with acquisition of 10 continental courier services Lost estimated $1 billion in Europe since entry in 1984 and eventually sold European hub to DHL Spent an additional $1 billion in 1995 to expand it European operationsExpanded routes in Latin America, Caribbean and introduced AsiaOne next business day service between Asia and US in 1995 Begins direct flights to China in 2001Establishes Chinese Headquarters in 2003 Contracts with Yangtze River Express for package delivery within China in 2003 FedEx owned the largest foreign presence in China, with almost double the amount of daily flights to China than UPS, serving 220 Chinese cities with direct flights to Beijing, Shenzhen and Shanghai. FedEx volumes in China grew by more than 50% between 2003 and 2004. UPS was active in China beginning in 1988, and was the first carrier to offer nonstop service from America. By 2003, UPS had 6 weekly flights to China with direct service to Beijing and Shanghai, serving about 200 cities with expected growth of about 60% on its main route. UPS also predicted peak-season demand to exceed capacity. Financial Analysis UPS appears to be the better bet for the long-term because its historical financial results are superior to and more consistent when compared to FedEx. If we consider EVA (Economic Value Added) as the key gauge for evaluating both firms, UPS is clearly the better performer. In the twelve year period of 1992 through 1993, UPS created $4. 33 billion in cumulative economic value, while FedEx destroyed $2. 25 billion. Because of its superior profitability and cash generating capabilities, UPS has better prospects for funding growth through internal and external sources. Even if we weaken the assumption of past history as a good indicator for the course of future financial performance and management, the data still indicates UPS is in a better financial position for taking on future growth. Decomposing EVA UPS outperformed FedEx on profitability in the twelve year period with an average RONA of 13. 78% compared to 8. 31% for FedEx. This profitability disparity accounts for most of the differences in their EVA histories. The twelve year average cost of capital/WACC for each firm was virtually the same (11. 97% for UPS, 11. 5% for FedEx); FedEx failed to generate enough RONA to cover its cost of capital in eleven years of the twelve year period, while UPS generated positive economic returns in seven of those years. The economic profit margin or spread between RONA and WACC for UPS averaged about 1. 8 % compared to -3. 14% for FedEx. For the last year of the period, 2003, UPS’s spread was 5. 11% and FedEx’s was 1. 10%. Given these statistics, UPS is obviously the better value creator and more profitable firm. Funding Future Growth (Cash and Debt) UPS is in a better position to fund its future growth because it generates more cash through superior profitability and its bigger size NOPAT for UPS in 2003 was at $3. 31 billion versus FedEx at $1. 42 billion. Thus, UPS can fund a larger percentage of its growth through internally generated funds. UPS can also take on additional debt at a lower cost than FedEx. The two firms have very similar debt/equity ratios but different bond ratings, with UPS rated higher. Therefore, even with similar relative debt levels, UPS can choose to supplement its funding needs with debt at a lower interest expense than FedEx. As of 2003, UPS‘s interest coverage ratio is three times that of FedEx, so UPS has a bigger cushion for handling additional debt (which partially explains UPS’s higher debt rating). In summary, from a cash perspective and in the context of each firm’s debt load, UPS is clearly in a better financial position to compete than FedEx. Operational Analysis While UPS and FedEx operate with similar business practices and offer almost identical services to their respective customers, UPS is more diversified both in operational revenue and global market service. Virtually all of FedEx’s business is derived from air-express sector in the package delivery; that segment is only 44% of UPS’s revenues. Both companies compete fiercely, often copying the other’s moves. For instance, FedEx has started to poach clients from UPS by offering volume discounts and excellent delivery services. UPS has countered by matching FedEx’s customer interaction by installing drop boxes and offering Saturday delivery to equal FedEx’s delivery schedule. Annualized capital expenditures are almost identical between the two companies for the period of 1992 to 2003 was 34. 64% for FedEx and 36. 78% for UPS. The main difference between the two is the markets each company serves and how they serve it. FedEx utilizes an independent contractor model, while UPS has unionized employees. FedEx attempted to develop its European capabilities until 1992, when it sold its operations to DHL, and now relies on local partners. By comparison, UPS acquired multiple courier services and announced in 1995 it would spend $1 billion over the next five years to continue its European expansion. The following table provides the comparison of worldwide facts between FedEx and UPS: FedExUPS Main HubMemphis, TennesseeLouisville, Kentucky Packages handled per day5. 4 million13. 6 million Air deliveries per day3. 1 million2 million Service AreaMore than 220 countries and territories, including every address in the United StatesMore than 200 countries and territories; every address in North America and Europe WorkforceMore than 216,500 employees worldwide360,000 Worldwide Delivery FleetMore than 50,000 motorized vehicles and 625 aircraft88,000 ground vehicles; 583 aircraft. In the ground package-delivery business, UPS is approximately five times larger than FedEx, delivering 11 million packages per day. However, there are signs that FedEx is gaining market share for ground delivery. FedEx dominates with the world’s largest air-delivery service, delivering 50% more per day than UPS. The battleground has shifted from Europe to China, which is projected to become the second largest economy by 2011 and the largest by 2039. Because China’s export volume increased by 101% in 2004, both companies have focused on the import/export package market valued at nearly $1 billion, instead of the intra-domestic market, valued at approximately $800 million. Although it entered the Chinese market after FedEx, UPS is aggressively expanding its services within the market. While FedEx flies almost twice as many daily routes to China than UPS, the new service agreement between the US and China will alter the landscape; it is uncertain how the newly acquired routes will be distributed to FedEx, UPS and their other competitors. Conclusion UPS will achieve better long-term performance relative to FedEx because of its bigger size, more diversified revenue and business, superior financial and operational efficiency and a better capital position.

Civil War Aspects :: essays research papers

At 4:30 AM the Confederates opened fire with 50 cannons upon Fort Sumter in Charleston, South Carolina. The Civil War began. With seven states already seceded from the Union, the confederate states took a strong stance. Just as the Confederacy was formed in early 1861, the Confederate soldiers began taking over. On April 19th, President Lincoln issued a Proclamation of Blockade against Southern ports. For the duration of the war, the blockade limited the ability of the South to stay well supplied in its war against the North. Through the majority of the beginning of the war, Lincoln noted the war as a struggle for maintaining in the world, that form, and substance of government, whose leading object is, to elevate the condition of men. The Pro slavery South was, in many ways reacting to the North's attack on the slavery and its expansion. Slavery is an institution that must continue to grow for its survival. Moreover, expansion for the South meant growth, politically, socially and economically, and it meant more political power. It is anticipation to want to make what one has larger and stronger, just as the South wanted to expand and gain power. The Southern politicians did this through political moves such as the Annexation of Texas, "Bleeding Kansas", the Ostend Manifesto, and through the Dred Scott decision. All of which pissed of the North, and convinced them that the south was trying to dominate the U.S with slavery. I believe that the war was fought over the moral issue of slavery. The North did not care about the institution of slavery as long as it stayed in the South. South Carolina seceded, because Lincoln was voted into office. The Republican party threatened the South's expansionism and therefore Southerners felt that they had no other choice but to secede. The Republican party had no intention of ending slavery in the South or freeing the slaves; they just did not want slavery to expand, "Because the scene of intestine struggle will thus be transferred from the south to the North." (N.Y Tribune 11/29/1860) The United States was divided into three groups by the time the Civil War began: those who believed in the complete abolition of slavery, those who were against the expansion of slavery, and those who were pro slavery. Many like to believe that the moral aspect of slavery is what made it an issue. When the Republican candidate, Abraham Lincoln, was elected in 1860, the South felt that its expansionism was being threatened, and because expansion was vital to the

Radiation Heat Transfer Lab

The objective of this laboratory experiment is to investigate the radiation laws (Lambert's Distance, Cosine Law and Stefan-Boltzmann Law) using thermal and optical radiation. This experiment was carried out with the assistance of the Thermal Radiation Apparatus which consists of a heat source (that provides the heat for the verification of the Stefan-Boltzmann Law), a thermopile (that assists in detecting the temperature), a luxmeter (that assists in measuring the luminous intensity for the verification of Lambert's Distance & Cosine Law), absorption plates that detect any radiance incident upon them, a swivelling light source (that assists in provides luminous radiation for the verification of Lambert's Cosine Law) and finally measuring amplifier that detects he amount of irradiance incident upon the measuring plates and provides an electronic output in the form of a reading. Lambert's Distance Law states the as the separation distance between the point source of radiation and the detector plates is increased, the irradiance detected will decrease. This law was proved to be precise since the irradiance and the distance have a negative slope of -1.584 on Figure #1. Lambert's Cosine Law, which constitutes that the radiant intensity, I, of the radiation emitted by a flat source is same from any direction but the irradiance, E, decreases with the increase of cosine of the angle of incidence. This law was also proved to be accurate as it can be seen from Table #2 that as the angle of incidence increased, the irradiance decreased. The Stefan-Boltzmann Law was also verified. It was observed that the irradiance of a blackbody was proportional to the fourth power of the absolute temperature. The main source error in the lab experiment was that the laboratory room was not completely dark and caused the measuring plates to detect ambient light radiation and giving untrue readings. PROCEDURE The procedure outlaid in the lab manual was followed to precision. The procedure steps were carried out in a safe manner for Lambert's Distance Law, Lambert's Cosine Law and Stefan-Boltzmann Law. [2] RESULTS Lambert's Distance Law: Please refer to Table #1, Figure #1 and Figure #2 in Appendix A – Tables and Figures for the Results of the experiment conducted to observe Lambert's Distance Law. Lambert's Cosine Law: Please refer to Table #2, Table #3, Figure #3 and Figure #4 in Appendix A – Tables and Figures for the Results of the experiment conducted to observe Lambert's Cosine Law. Stefan-Boltzmann Law: Please refer to Table #4, Table #5 and Figure #5 in Appendix A – Tables and Figures for the Results of the experiment conducted to observe Stefan-Boltzmann Law. DISCUSSION Lambert's Distance Law: Theoretically it is believed that Lambert's Distance Law correlates to the fact that the irradiance of the radiation emitted perpendicularly towards a surface from a point source is inversely proportional to the square of the distance separating the illuminated surface and the source. [2] From the experiment it was observed that as the distance between the illuminated surface and the source of radiation increased, the irradiance decreased; as an individual can notice that at a separation distance of 100 mm the irradiance was observed to be 1069 W/m2 and at the separation distance of 800 mm the irradiance reduced to a 126 W/m2. From Figure #1 (Lambert's Distance Law plotted on a Log-Log scale) and Figure #2 (Lambert's Distance Law plotted on a normal scale), it can be discerned that the irradiance diminishes as the separation distance between the source of radiation and the illumination surface increases. Lambert's Cosine Law: Lambert's Cosine Law states that the radiant intensity, I, emitted by a flat source is the same from any direction, however the irradiance, E, decreases with the cosine of the angle of direction. [2] This law essentially dictates that the direction of illuminance is irrelevant since the radiance from the surface at any angle is exactly the same to the human eye; this happens due to the fact that as the angle of direction of the rays increases relative to the normal (0à ¯Ã‚ ¿Ã‚ ½ – angle of direction), the area of incidence for the radiation decreases. Another theoretical observation that can be made from the law stated above is that the maximum irradiance will occur at the angle of zero degrees. It can be perceived from Figure #3, in which the relationship between angle and light intensity on blackbody in a radian measure is shown, the blue circles represent the angle from the center of the unit circle that correspond to the respective normalized illuminance value. From Table #2 it can be noted that as the angle of incidence is increased the illuminance decreases; this corroborates Lambert's Cosine Law even further. Stefan-Boltzmann Law: This law situates that the total irradiance of a blackbody radiator is proportional to the fourth power of the absolute temperature. [1] This can be stated mathematically, as , where ? is the Boltzmann constant with a value of 5.67*10-8 W/m2*K4; although this law applies solely to blackbodies. From Figure #4 it can observed that a linear relationship develops between the temperature and the irradiance, with a positive slope of 2078.1; when the temperature climbs the measuring amplifier detects a higher amount of irradiance. The theoretical irradiance values were calculated, since the only variable parameters in the equation for the irradiance are the temperatures that are detected. From Table #5 it can be discerned that the theoretical values had a percent error of approximately 76% when compared to the experimental values. This is a very high percent error and can be explained by that fact that not all of the radiation emitted by the source reaches the measuring plates and the majority of the radiation is lost to the environment. Errors: The main source error in the lab experiment was confronted during the second part of the lab; during which the Cosine Law was being detected. This room needs to be completely dark and only the radiance from the source must reach the measuring plates so as to provide the most accurate results. This was not achieved as the room was not completely dark and ambient radiation was allowed to be incident upon the measuring plates causing an error. Experimental errors were caused due to the measuring ruler for the distances of separation and the error in the readings for the irradiance. Another source of error may be that all sources of radiance during the lab experiment were assumed to be point sources; this is untrue as radiance was incident upon the measuring plates from reflection off the surfaces present in the laboratory room. CONCLUSION From the laboratory experiment conducted the Lambert's Distance Law was proved to be true as it was observed that an inversely proportional relationship developed between the distance and the irradiance detected by the measuring amplifier. Similarly, the Cosine Law was also proved to be correct, as an inversely proportional relationship was also detected between the angle of incidence and the illuminance measured. The last law to be confirmed was the Stefan-Boltzmann Law, which was observed when the total irradiance of the blackbody radiator was proportional to the fourth power of the absolute temperature. Overall a firm understanding of Lambert's Distance & Cosine Laws and Stefan-Boltzmann Law and radiation transfer were gained.

What Is Visual Perception And Two Theorists And Their...

What is visual perception? And two theorists and their theories Visual perception plays an important role in our lives allowing us to enjoy and explore the world around us, enabling us to interact with other people, and provides us with the tools we need to read books, watch the television, read cues and body language and look at fine art and beautiful things in great detail. (Eysenck and Keane 2005). Visual perception is the ability to gained information from our surroundings and the environment we live it using our sensory organs such as the ears, eyes, nose etc. When we use these sensory organs to pick up information from our surroundings these organs transmits the information gain and sends in to our brains (McLeod 2008) Sounds very simple but this is far from the truth, I will briefly describe what occurs as we do not simply look at an object and have the ability to define what it is, for example looking at a chair or table and knowing what that object is and its function. It is only through our ability to process information internally following what our sensory organs (the eyes) have initially seen. It is through these processes that we are able to perceive the world around us. By using our eyes we are able to pick up the information from our environment creating a two dimensional image that is projected on to our retina. Through internal processes this two dimensional image is turned in to a three dimensional imagine where we are able to determineShow MoreRelatedInformation Processing And The Human Mind1468 Words   |  6 PagesInformation processing theories emphasizes on the way people focus on environmental events, translate information to be learned and find a way to relate the informati on to the knowledge in the short term memory and then store the knowledge in the long term memory; to retrieve it when need be. 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