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Unformatted text preview: Cut cost by not advertising in the mass media. Tailored its services to the needs of particular large business customers. Keeping cost down by customizing services to certain companies. Frugal, conservative, employees. top executives answered their own telephones. Used commercial airlines and local partners to complete shipments in international routes, cutting cost by not using their own aircraft. Cost Calculations Cost Driver Airborne UPS FedEx Ind. Avg? Aircraft 175 529 608 236.93 Avg. overnight delivery (prices) 28.91 32.98 34.34 32.08 Avg. overnight, afternoon Delivery (prices) 27.37 28.38 31.01 32.25 Maintenence (1996) 387M 823M 618M 609.33 Transportation Purchased/Rente d (1996) 828M 1306M 959M 1031 CAGR: Net Income Airborne (1994-1996): [(21/380)^(1/2)]-1= -.1571 UPS (1994-1996): [(1146/943)^(1/2)]-1=.1024 FedEx (1995-1997): [(361/238)^(1/2)]-1=.1006...
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This note was uploaded on 01/19/2012 for the course N.A N./A taught by Professor N/a during the Spring '11 term at UPenn.
- Spring '11