Assignment 5 Example | Topics and Well Written Essays - 500 words

5 - Assignment Example stomers with purchasing convenience and seamless access to the company’s portfolio is the main evidence of customer intimacy and support that FedEx offers to its customers. In addition, each of the FedEx\u2019s business segments has independent operations and strategies that enhance anticipation and customer support. In addition, FedEx has a supportive website (fedex.com) that demonstrates its product leadership. 2. What are FedEx’s four main business segments? Provide two examples of traceable fixed costs for each of FedEx’s four business segments. Provide two examples of common costs that are not traceable to the four business segments. FedEx Express, FedEx Ground, FedEx Freight and FedEx Kinko\u2019s are the main business segments of the company (FedEx Form 10-K 2005, p. 3). On the other hand, the cost of maintaining the Memphis international airport facility and purchase of 557 airliners are examples of traceable cost for FedEx Express. Traceable costs for FedEx Ground includes cost of maintaining information and data centers located in Pittsburgh (FedEx Form 10-K 2005, p. 25) in addition the business segment caters for Daniel Sullivan’s (CEO) salary. Finally, traceable costs for FedEx Freight’s include cost of owning and maintaining 39,500 vehicles and trailers and their customs-critical headquarters at Ohio. A common example of not traceable to the four business segments would be PGA golf tournaments sponsored by the company. 6. Assume that the senior managers of FedEx Express and FedEx Ground each have an investment opportunity that would require $20 million of additional operating assets and that would increase operating income by $4 million. If FedEx evaluates all of its senior managers using ROI, would the managers of both segments pursue the investment opportunity? If FedEx evaluates all of its senior managers using residual income, would the managers of both segments pursue the investment opportunity? 4,000,000) = 1. From the previous