Business Case Studies & Business Publications

Battle For Value: Federal Express Corpor...

Bruner, Robert F.,...

Case

Battle For Value: Federal Express Corporation Vs. United Parcel Service Of America, Inc.

Bruner, Robert F.; Bulkley, Derick

F-1115 | Published August 9, 1995 | 33 pages Case

Collection: Darden School of Business

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Set in July 1995, this case invites students to assess the financial performance of Federal Express and United Parcel Service, two close competitors in the U.S. overnight express package-delivery industry. Although the case requires no numerical computations, it does ask students to interpret results and reflect on the implications. The contrasting financial records of the two firms afford a platform for exploring several important issues, including (1) the definition and use of "economic value added" (EVA) as a measure of corporate performance; (2) a comparison of EVA with other classic approaches of historical performance analysis; (3) the exercise of skills in business-segment analysis; (4) the exploration of the financial implications of intense competition and corporate transformation; and (5) the definition of "excellence" from a corporate-finance point of view.