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Homework answers / question archive / Area of Objectives Measures Targets Initiatives Financial 1
Area of Objectives Measures Targets Initiatives Financial 1. Revenue 5% annual increase of revenue Offer autonomous delivery service Compare revenue from this year to revenue from last year Compare world market share to that of competitors 2. Market share 40% share by 2022 $80 million ad campaign to target Millennials Customer Score of 90 by 2025 1. Customer satisfaction 2. Customer referrals American Consumer Satisfaction Index Net promoter score Deploy chatbot for customer service Offer shipping discounts for referrals Score of 50 by 2025 Internal Processes 1. Transportation Number of electric vehicles 100% electric by 2030 Partner with Chanie to replace all traditional vehicles with electric Partner with Green Packaging Group to use all-recycled material 1. Packaging Percentage of recycled materials 100% recycled materials by 2030 1. Packaging Percentage of recycled materials 100% recycled materials by 2030 traditional vehicles with electric Partner with Green Packaging Group to use all-recycled material 6 Learning & Growth 1. Diversity Diversity score Score of 80 by 2030 Recruit from historically black and female colleges Institute on-site childcare 2. Turnover Employee turnover rate Reduce rate by 10% annually for two years Petros FedEx Cover (scorecard) (1) - Word ? File Home Insert Design Layout References Mailings Review View Tell me what you want to do... Turner, Linda 2 Share u Financial Objectives Revenue is a good measure of financial success, and increasing revenue is desirable. However, FedEx's revenue was flat in 2020 and 2019. hovering around $69 billion, although that is a 6% improvement from 2018's gross of $65 billion (FedEx Corporation, 2020b). Additionally, FedEx is lagging behind competitors such as UPS, which saw revenue growth of 6% in 2018 and 3% in 2019, ending with gross of $74 billion (United Parcel Service, Inc., 2019). Thus, FedEx ought to establish a goal of increasing revenue by 5% annually. FedEx can accomplish this through capturing part of the autonomous delivery market, which is expected to be worth nearly $85 billion by 2027, growth of 32% (Grand View Research, 2019). FedEx is making moves to capitalize on this by debuting Roxo, a same-day delivery bot with the ability to carry 100 pounds and navigate hills and stairs (FedEx Corporation, 2020c). Global corporations must also be concerned with market share, as capturing a greater portion than competitors often leads to better financial outcomes. However, FedEx lags behind Deutsche Post's substantial 39% market share, versus FedEx's own 30%, while ahead of UPS's 22% share (Mazareanu, 2019). A goal of FedEx can be aiming to capture 40% of the global DE Page 2 of 9 1417 words 30 + 100% ED CG BJ 20:33 / 54:37 CC a * Davis, Emarah Gridley, Connor Morris, Haley Jamerson, Brandon Howles, Erin C Petros FedEx Cover (scorecard) (1) - Word o ? File Home Insert Design Layout References Mailings Review View Tell me what you want to do... Turner, Linda 2 Share u 6% in 2018 and 3% in 2019, ending with gross of $74 billion (United Parcel Service, Inc., 2019). Thus, FedEx ought to establish a goal of increasing revenue by 5% annually. FedEx can accomplish this through capturing part of the autonomous delivery market, which is expected to be worth nearly $85 billion by 2027, growth of 32% (Grand View Research, 2019). FedEx is making moves to capitalize on this by debuting Roxo, a same-day delivery bot with the ability to carry 100 pounds and navigate hills and stairs (FedEx Corporation, 2020c). Global corporations must also be concerned with market share, as capturing a greater portion than competitors often leads to better financial outcomes. However, FedEx lags behind Deutsche Post's substantial 39% market share, versus FedEx's own 30%, while ahead of UPS's 22% share (Mazareanu. 2019). A goal of FedEx can be aiming to capture 40% of the global courier market by 2022. One way FedEx can accomplish this is through the targeting of Millennials. This is likely to yield a greater market share since 60% of Millennials do their shopping online and are willing to pay more for expedited shipping, making them receptive to FedEx's service offerings (Melton, 2019; PR Web, 2019). Customer Objectives Page 2 of 9 1417 words ? 30 + 100% ED CG BJ 23:21 / 54:37 CC a * Davis, Emarah Gridley, Connor Morris, Haley Jamerson, Brandon Howles, Erin C Petros FedEx Cover (scorecard) (1) - Word ? File Home Insert Design Layout References Mailings Review View Tell me what you want to do... Turner, Linda & Share u TUULA S SLIVICE VILLI (VICIUL, 2017, 11WCU, 2017). Customer Objectives Customer satisfaction is critical for any business, as happy customers are more likely to remain loyal and encourage others to do business there. However, FedEx has slipped somewhat 3 in this area, as the company's American Consumer Satisfaction Index (ACSI) score has dropped from 82 in 2017 to 76 in 2020 (Mazareanu. 2020). Additionally, this is below the nationwide average for consumer shipping companies in 2020 of 77, and below key American competitor UPS's score of 80 (Mazareanu. 2020). One way FedEx may be able to boost customer satisfaction is by deploying a chatbot on its website. This can allow customers to get answers to common questions anytime, anywhere, fast. In fact, car rental company Avis was able to Page 2 of 9 1417 words [E 30 + 100% ED CG BJ D 1» 24:44 / 54:37 CC a * Davis, Emarah Gridley, Connor Morris, Haley Jamerson, Brandon Howles, Erin C Petros FedEx Cover (scorecard) (1) - Word ? File Home Insert Design Layout References Mailings Review View Tell me what you want to do... Turner, Linda 2 Share U UPS's score of 80 (Mazareanu. 2020). One way FedEx may be able to boost customer satisfaction is by deploying a chatbot on its website. This can allow customers to get answers to common questions anytime, anywhere, fast. In fact, car rental company Avis was able to automate a whopping 68% of service calls, which saves time and money (Kannan & Bernoff. 2019). With these changes, FedEx can have a goal to raise its ACSI score to 90 by 2025. Enhancing customer loyalty is another worthy goal for FedEx. One way this can be measured is using the net promoter score (NPS). Currently, FedEx has an NPS of 3, which is considered good, and is above the industry average of 0 (Customer Guru, 2020). However, a score of 50 is considered excellent, and is what FedEx can aim to achieve by 2025. One way to accomplish this is to offer shipping discounts for referrals. FedEx does currently have a referral program, but it is only offered to holders of corporate accounts in China (FedEx Corporation, n.d.). Keeping in mind that it is more expensive to acquire a customer than retain an existing one, any profits lost from providing a discount will be worth the addition of new customers (LaPlante-Dube. 2020). Internal Processes Page 3 of 9 1417 words LE 30 + 100% ED CG BJ D 1» 25:51 / 54:37 CC a * Davis, Emarahi Gridley, Connor Morris, Haley Jamerson, Brandon Howles, Erin C Petros FedEx Cover (scorecard) (1) - Word ? File Home Insert Design Layout References Mailings Review View Tell me what you want to do... Turner, Linda 2 Share u (LaPlante-Dube. 2020). Internal Processes In keeping with its mission to promote sustainability, FedEx purchased 1,000 electric vehicles for its fleet in 2018. and is working with Chanje Energy to set up charging stations across California (FedEx Corporation, 2020a). At the end of the 2019 fiscal year, FedEx had over 4,000 alternative-fuel vehicles in its fleet (FedEx Corporation, 2020c). While this is an excellent step, there are over 100,000 traditional vehicles in the express fleet alone (FedEx 4 Corporation, 2020b). In order to further reduce carbon emissions, FedEx could again partner with Chanie to replace the remainder of non-electric vehicles by 2030. FedEx's packaging is another notable area. Currently, the company's packaging is 100% Page 3 of 9 1417 words [E 30 + 100% ED CG BJ D » 26:43 / 54:37 CC a * Davis, Emarahi Gridley, Connor Morris, Haley Jamerson, Brandon Howles, Erin C