The Battle for Value, 2004: Fedex Corp. Vs. United Parcel Service, Inc

Abstract

Set in June 2004, this case invites the student to assess the financial performance of FedEx Corp. and United Parcel Service, Inc. (UPS). The two firms have competed intensely for dominance of the overnight express package industry. This case is intended for use in an introductory discussion of corporate value creation and its sources. The case requires no numerical computations from the student; rather, the tasks for the student are to interpret the results and to reflect upon their implications.

Excerpt

UVA-F-1484

Version 2.4

THE BATTLE FOR VALUE, 2004:

FEDEX CORP. VS. UNITED PARCEL SERVICE, INC.

FedEx will produce superior financial returns for shareowners by providing high value-added supply chain, transportation, business, and related information services through focused operating companies competing collectively, and managed collaboratively, under the respected FedEx brand.

—FedEx mission statement (excerpt)

. . .

Keywords: corporate strategy financial analysis, ratio industry economic profit, EVA, economic value added, value creation