Identify two multinational companies of your choice and do an online research ab

Question

Identify two multinational companies of your choice and do an online research about the following information:

* What is the net worth of the company?

* In which countries it is operating?

* How many domestic and international employees it has?

* What is the operation management strategy of the company?

* How is the company achieve competitive advantage through operation management?

* What are the major issues in operation management of the company?

Answer the above questions in APA paper writing format and i need references.

Explanation / Answer

I have chosen FedEx and Amazon as my two MNCs for answering the questions:-

(a) FedEx is U.S based biggest multinational package delivery services company which has networth of $ 64,161 million and Amazon is U.S based online retail, computing services, consumer electronics, digital content as well as other local services such as daily deals and groceries multinational giant which has networth of $ 702.46 billion.

(b) FedEx has its delivery services in more than 220 countries across the globe. Amazon has 15 country specific retail sites enabled and these are the United States, the United Kingdom, Ireland, France, Canada, Germany, Italy, Spain, Netherlands, Australia, Brazil, Japan, China, India, and Mexico.

(c) FedEx employees around 100,000 employees domestically and more than 400,000 employees across the globe. Amazon employs around 40,000 employees in Seattle and around 566,000 employees across the globe.

(d) FedEx (the world’s largest freight airline) operates by offering “high-value added” express package delivery to over 220 countries globally. FedEx houses a fleet of more than 652 aircraft which fly over 4 million packages per day and thus the company guarantees its speed with a precision of greater than 99%. FedEx is able to capture value by consistently delivering on this promise to its customers.

A delivery company could at the most transport one package via aircraft from point A to point B quickly, but this is absolutely costly without economies of scale and thus not affordable. Delivering on time to customer’s promise of rapid and reliable delivery while offering competitive pricing, FedEx Express relies on an extremely efficient operating model that is centered on its fleet of aircrafts. The company houses several hundreds of aircraft to cater to all its umpteen locations across the globe.

The aircrafts owned by FedEx express do not fly directly from one location to another. Instead, all aircraft pass through one of FedEx’s 14 major hubs placed strategically proximally across the globe. All aircrafts take off and land in batches within the same time windows. This operational flying model reduces WIP in air time of delivery – thus packages are immediately placed on outbound aircraft instead of waiting around. This type of operational model requires tremendous aircraft timings management, capacity to land, service, and launch aircraft as well as to sort the packages into locations, since all packages must be unloaded, sorted, and reloaded within tight time constraints. Therefore, the company engineers hubs that are located at passenger-light airports with large comfortable infrastructure to accommodate these delivery aircrafts and their package supply chain management system.

Amazon employees CUSTOMER CENTRIC OPERATING STRATEGY. It achieves profitability and growth by extracting tremendous volume and low cost. Amazon employed two strategies. It began to create an ecosystem that tied consumers more closely to it, if people think about online shopping they should hit amazn.com for reliability, for precision, for variety at most competitive price in the industry. The second masterstroke was to invest relentlessly, spending billions on infrastructure and technology.

Amazon grasped the importance of speedy shipping and invested accordingly. With more than 100 warehouses in the US alone, it has kept accelerating its delivery – from 48 hours, to next day, to the evening of the same day. The company has earned a patent for predictive purchasing (delivering goods based on consumer sentiments even before they are ordered).

Amazon’s operating model is centered on the customer. Leveraging customer data, they are able to achieve one view of the the customer to identify buying habits, purchase history, purchase frequency and spend—and then turn that data into a customized shopping experience that pleases the consumer and fortifies a lasting customer relationship.

Leveraging automation and data-mining technologies borrowed from their ecommerce operations, they are ambitiously pursuing omnichannel perfection to best serve consumers whenever and wherever they are and fortify the already ironclad loyalty of their customers, all while lowering operating costs.

Amazon exerts control at an incredibly granular level to constantly manipulate prices and promotion of each strategic business unit to get the right trade-off between price competitiveness and profitability.

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