FedEx Case Study Solution – Federal Express Services

In what ways does this case illustrate Risk and Control theory and management?

In answering this question researchers should be able to discern that FedEx customers, especially prospective customers with no prior experience with the company, may be likely to experience at least four kinds of risk: material, functional, financial, and personal/psychological (if someone has made what is considered to be a wrong decision). 

Marketers also should be able to discern ways in which FedEx goes about minimizing each of these risk factors through their attention to detail, their quality management and customer care programs, their use of technology, and by providing customers with a sense of control over ordering, tracking and delivery procedures.

Discuss the role played by technology in delivery of the FedEx service.

The extensive and pivotal role played by technology is amply discussed in the case, therefore students should have little difficulty in answering this question. 

However, additional value may be gained by asking students to consider ways and means by which FedEx’s use of technology may be improved, and also by asking them to consider other service industries and organizations that might stand to benefit from a comparable use of technology.

Discuss the place, role and importance of people within Federal Express.

The place, role and importance of people within Federal Express generally is also amply discussed in the case and is encapsulated in the company’s P-S-P corporate philosophy.  In answering this question, however, students should be asked to consider the different roles of people performing on different service levels of Fed Ex including.

For example, the customer service and sales personnel, the van drivers/couriers, and the behind-the-scenes people with various logistics responsibilities. 

What role might flowcharting play in designing and analyzing the FedEx service delivery system?

Obviously, flowcharting has played a central role in planning the design and delivery of the FedEx services, and enables monitoring of every aspect of the delivery system.  It is this very process which has enabled FedEx to structure and run its operations in such a systematic, efficient and reliable manner as it does.

Furthermore, flowcharting serves to facilitate training and supervision by highlighting exactly what needs to be performed, by whom, where and when, to what standard and within what time frames. In this way FedEx functions much like a well-made Swiss watch. 

Service marketers should be asked to construct a flowchart of the FedEx operation, or at least one part of it, and then to comment on how it serves to enable effective management and control, as well as performance analysis and evaluation.

What might be critical incidents in the FedEx service delivery system?

Critical incidents in the FedEx service delivery system

1. Telephone contact and communication between (prospective) customers and FedEx customer service personnel
2. Pickup and delivery points
3. Package scanning points
4. Package tracking and points at which transit information is communicated to customers (Note: The reliability of this information is also a key issue)
5. Software (and hardware) installation and maintenance
6. Aircraft on and off-loading
7. Customs clearance procedures
8. Complaints handling