Case Study of Fedex: Using Marketing Channels to Create Value for Customers

FedEx as a service company that mainly focuses on transportation or shipment services, channel played an important role leading to success. FedEx need a good channel to get and reach more customers. FedEx has a strong network structure linking all the market together. FedEx serves more than 220 countries and territories currently. Further, these networks are linked up by land, air and ocean transportation. FedEx’s service covered all around the globe, making services available for customers from many countries and almost every place. FedEx has many drops off location around the globe. Customer can choose either one drop- off location that is nearest to them. FedEx has great air network, having more than 320 daily international flight and 654 aircraft ready to ship the packages. FedEx has many hubs around the world working as a midpoint of delivering the packages. There are four hubs in Asia pacific. That is Shanghai, Continue reading

Organizational Structure and Role of Banks in India

Banking Regulation Act of India, 1949 defines Banking as “accepting, for the purpose of lending or of investment of deposits of money from the public, repayable on demand or otherwise or withdrawable by cheque, draft order or otherwise.” The Reserve Bank of India Act, 1934 and the Banking Regulation Act, 1949, govern the banking operations in India. Organizational Structure of Banks in India: In India banks are classified in various categories according to differ rent criteria. The following figure indicate the banking structure: 1. The Reserve Bank of India (RBI): The RBI is the supreme monetary and banking authority in the country and has the responsibility to control the banking system in the country. It keeps the reserves of all scheduled banks and hence is known as the “Reserve Bank”. 2. Public Sector Banks: State Bank of India and its Associates Nationalized Banks Regional Rural Banks Sponsored by Public Sector Continue reading

Effects of Price Level Changes on ROI and RI

The price level changes are a common phenomenon and will introduce entirely new distortions into ROI and RI measures. The principal distortions occur because revenues and cash costs are measured at current prices, while the investment cost and depreciation charge are measured at historical prices used to acquire the assets. Depreciation based on historical cost underestimates what the depreciation charge would be based on the current cost. This results in overstating the firm’s income. At the same time, the firm’s investment is understated, because most of firm’s   assets   were   acquired   in precious years at lower price levels than those currently prevailing.   The combination of overstated net income and understated investment causes the ROI or RI measures to be much higher than if inflation had not occurred. The increased ROI or RI is not a signal of higher profitability and it is mainly due to a Continue reading

Types of Finance Lease Agreements

A finance lease, also called a capital lease, is one which usually covers the full useful economic life of the assets or a period that is close to the economic life. The lessor receives lease rentals during the lease period so as to recover fully not only the cost of the assets but also a reasonable return on the funds used to buy the assets. The finance lease is usually a non-cancellable and the lessee provides for the maintenance of the assets. The lease payment under financial lease is a payment for the use of the assets only and the responsibility for the repair and maintenance of the assets generally lies with the lessee. Since the term of a finance lease is normally closely aligned with the economic life of the assets, the lessee’s position is quite similar that of an owner; and the cost of maintaining is in its Continue reading

Case Study of PanAmSat: Recovering from a Satellite Failure

A Galaxy 4 satellite operated by PanAmSat, a subsidiary of Hughes Electronics, tilted away from the earth at 6:13 P.M. on May 19, 1998 and began to spin because of a computer failure and the subsequent failure of a backup computer. This unexpected problem disabled 80% to 90% of the pager services in the U.S. along with a number of credit card authorization  networks, television transmissions, and other networked services. PanAmSat’s effects to realign the satellite failed, but it was able to restore service within a day by rerouting the traffic the satellite normally handled. Of the 17 satellites PanAmSat had in orbit at the time, one was a spare. The recovery plan included rerouting signals for paging, retail-store services, and other services though its Galaxy 3R satellite and rerouting television signals through its Galaxy 4 had occupied since its launch in 1993. Computer failure had transformed the Galaxy 4 Continue reading

Elements of a System

The word System is derived from Greek word Systema, which means an organized relationship between any set of components to achieve some common cause or objective. A system is an orderly grouping of interdependent components linked together according to a plan to achieve a specific goal. Systems are often complex, with many parts working together to achieve the common goal. In order to understand how a system works, it is often necessary to study its individual components and how they interact. Elements of a System The important elements of a system are; Output and Inputs Processor(s) Control Feedback Environment Boundaries and Interface 1. Outputs and Inputs A major objective of a system is to produce an output that has value to its user. Whatever the nature of the output, it must be within the line with the explanations of the intended user. Inputs are the elements that enter the system Continue reading