Learnings from the Principles of Organisation and Management

What the Principles of Organisation and Management course at NITIE was all about and my learnings from the course.

Leaders v/s Followers

Leaders v/s Followers

Leaders:

It is only natural that not everyone becomes a leader; however, those who follow will no longer accept old fashioned leaders, full of authoritative ideas and who impose new management techniques on others. They want leaders with well- rooted human values and who will respect talents and contributions given by others. People want leaders that can create an atmosphere of risk and creativity. They reject intimidation or manipulation, and want to be recognized as an important part in these changing times.

Traits:

Leaders must look within themselves to find new ways of influencing people and changing the course of companies. It is the leader that must be the first to change;. The leader then gathers followers, but not those that only do what they are told. Leaders want mature and responsible people that can look ahead. As a result a partnership will be formed with those people who are personally committed to themselves and the success of the business.

Responsibility:

Leaders assume the responsibility of keeping teams together. They have the obligation to take command, establish rules, determine values and principals that will lead to success. The leader must look at leadership as a responsibility and not as a position of privileges. The effective leader is responsible for all final decisions, and he must not fear the force of his associates or subordinates. He must encourage, instigate and be proud of all those that collaborate with him. The leader must look at others success as being his as well.

Follower is the one who subscribes to the teachings or methods of leader. He loks upto leader for the guidance, motivation and to show the way ahead. They are led by the leaders. Whereas the leader leads the followers.  

Few examples of leader - follower are

Manager – subordinates

Manufacturer – supplier

Company – stakeholders

There are two important keys to effective leadership.

1) Trust and confidence

2)Communication skills

Good leaders are made not born. If one has the desire and willpower, one can become an effective leader. Good leaders develop through a never ending process of self-study, education, training, and experience.

FEDEX

Why do you think Roger Federer has nickname as FedEx?  Federer like FedEx has always been consistent, reliable and quality (quality of his game) conscious and these qualities which are very rare to see at one place have earned him this nickname.

FedEx Corporation:

 FedEx Corporation provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $43 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 300,000 team members to remain "absolutely, positively" focused on safety, the highest ethical and professional standards and the needs of their customers and communities.

History
Origin: The modern air/ground express industry was pioneered with the founding of Federal Express in 1971; the corporation was created in 1998 as FDX Corporation and became FedEx Corporation in January 2000.

Landmarks:

1978 - Federal Express Corporation is listed on the New York Stock Exchange; ticker symbol is FDX.

1981 - Federal Express introduced the Overnight Letter.

         - Federal Express began international delivery with service to Canada.

         - Federal Express opened its Super Hub adjacent to Memphis International Airport.

1983 - Federal Express becomes the first U.S. company to reach revenues of $1 billion without merger or acquisition.

1994 - Federal Express officially adopted "FedEx" as its brand for recognition as the worldwide standard for fast, reliable service.

- FedEx launched fedex.com as the first transportation Web site offering online package status tracking, enabling customers to conduct business via the Internet.

1998 - FedEx acquires Caliber System Inc. and creates FDX Corporation.

2000 - Parent company FDX is renamed "FedEx Corporation." Services are divided into companies that operate independently yet compete collectively: FedEx Express, FedEx Ground, FedEx Freight, FedEx Custom Critical and FedEx Services.

Mission:

FedEx Corporation will produce superior financial returns for its shareowners by providing high value-added logistics, transportation and related business services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served. FedEx will strive to develop mutually rewarding relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards.

Strategy:

The unique FedEx operating strategy works seamlessly - and simultaneously - on three levels.

• Compete collectively by standing as one brand worldwide and speaking with one voice.
• Operate independently by focusing on our independent networks to meet distinct customer needs.
• Manage collaboratively by working together to sustain loyal relationships with our workforce, customers and investors.

Products and Services:

FedEx Express invented express distribution and remains the industry’s global leader, providing rapid, reliable, time-definite delivery to more than 220 countries and territories, connecting markets that comprise more than 90 percent of the world’s gross domestic product within one to three business days. Unmatched air route authorities and transportation infrastructure, combined with leading-edge information technologies, make FedEx Express the world’s largest express transportation company, providing fast and reliable services for more than 3.6 million shipments each business day.

FedEx Ground is a leading provider of ground small-package delivery services, providing service to the U.S. and Canada. FedEx Home Delivery, the industry’s first ground service dedicated to residential delivery, is available from FedEx Ground and is backed by a money-back guarantee.

FedEx Freight is the market leader in providing less-than-truckload (LTL) freight services across all lengths of haul. FedEx Freight segment financial results also include FedEx Custom Critical, North America’s largest time-specific, critical shipment carrier.

FedEx Services operates combined sales, marketing, administrative and information technology functions in shared services The FedEx Services segment includes: FedEx Services, which provides sales, marketing, administrative and information technology support to our other companies; FedEx TechConnect, which is responsible for customer service, technical support, billings and collections for U.S. customers of our major business units; and FedEx Office, which provides an array of document and business services and retail access to our customers for our package transportation businesses.

Award and Recogniton:

FedEx Express has been the recipient of many prestigious awards. It has been recognized for numerous achievements, from providing outstanding service to being a world-class employer.

      ·         FORTUNE “World’s Most Admired Companies” – 2010 #13, 2009 #         7,  2008- #6, 2007- #7, 2006- #4    

• Business Week “50 Best Performers” – 2006
• Financial Times “UK 50 Best Workplaces” – 2007- #31
• Wall Street Journal Asia “200 Most Admired Companies” survey – 2006- #17
• FedEx won the Customer Services of the Year Award 2011 in the ‘Parcel and Deliveries’ category. – 2011
• FedEx was awarded the Best Air Cargo Carrier of the Year at the 4th Express, Logistics & Supply Chain Awards in India. – 2010

Financial Highlights:

Philanthropy:

Emergency and Disaster Relief

FedEx is committed to actively supporting the communities it serves through strategic investment of our people, resources and network. 

FedEx accepts applications from organizations that bring relief to victims of emergencies or natural disasters. Specifically, we direct our funds toward the quick and efficient transport of aid, and disaster preparedness education initiatives.

Child Pedestrian Safety
FedEx is interested in supporting organizations that help keep child pedestrians safe through increasing awareness and knowledge of pedestrian safety

Environmental Sustainability

FedEx prioritizes philanthropic and volunteer efforts that focus on environmental sustainability and are strategically aligned with our business goals.

SWOT Analysis:

Strengths

Sthrengths and Weaknesses

FedEx has many strengths.  They are very innovative in coming up with new ways to add value to their customers experience with FedEx.  They have always been wiling to embrace new technologies as well as create some of their own.

Weaknesses

FedEx’s weaknesses derive from their inability to differentiate themselves on a wide scale basis from UPS, this is hindering their ability to achieve a industry wide competitive advantage.

Opportunities

- The cost of infrastructure of express delivery companies are a barrier of entry to new comers

- FedEx leadership in global express delivery - As long as the nature of our socioeconomic environment exists, there will always be a need for express delivery

- E-commerce is creating an increased need for express delivery

- Globalization offers opportunities for expansion.

Threats:

- Maintaining the infrastructure of an express delivery company is an exit barrier because of high fixed costs

- Capitol is acquired through the volume of sales, so the high fixed costs can hurt when times are slow

- Due to the nature of the industry, it is nearly impossible to become the clear industry leader.

Future Goals:

FedEx Long Term Goals

• Grow revenue
• Achieve 10%+ operating margin
• Increase EPS by 10%-15% per year
• Increase cash flow
• Increase returns

Growth Strategies:
FedEx plans to focus on these five strategies to grow as a business.

• Grow core package business
• Grow internationally
• Grow our supply chain capabilities
• Grow through e-commerce & technology
• Grow through new services & alliances