1.

In April 2008, Delta Airlines announced its intention to merge with absorb Northwest
Airlines, formerly known as Northwest Orient. Delta Airlines had already grown
though the acquisition of Northeast in 1972 and Western Airlines in 1986. Northwest
was also a large airline, having absorbed Republic Airlines, itself a merger of North
Central Airlines, Southern and later Hughes Airwest. Republic had an important hub
in Memphis, as did Federal Express. The Result would be a global airline with hubs
in Asia and Europe as well as across the United States. Will an enlarged Delta
Airlines be a threat for FedEx?
Answer:
In this case, No, Delta Airline is a treat for FedEx. FedEx has good reputation
for a long time globally. The company can maintain their current customer and future
customer as long as they can maintain their good performance and service quality. By
entering of Delta Airlines as a competitor of the company, FedEx can improve their
performance towards their competitor performance to be their benchmark and can
improve performance from that.

2. How FedEx maintain the capacity to keep up with Chinas growth?

Answer:
China has a very large population. The populations are remaining to be
increase every year. With this large population, means there is a lot of demand on
delivery services. China is among largest economy in Asia. So that the demand for
delivery are not only inside the China but between China and other country. To keep
maintain the capacity of Chinas growth, FedEx should prepare more services such as
add more airfreights and land transport too support the increasing on demand .

3. What risk does FedEx encounter when subcontracting?

Answer:

The risk that FedEx encounter when subcontracting is, the public images of
the company will affect if the subcontracting didnt provides good service and
performance. If the public image affected, the competitors will takes opportunity to
get benefit from companys bad performance.

4. In 2008, crude oil must more that US$100 per barrel and this was reflected in the
price of jet fuel at the pump. Why might this be of concern to FedEx?
Answer:
FedEx has many airfreight and land vehicle for delivery services. The
increasing of per barrel price of oil should be concern by FedEx because it will
increase the expenses of FedEx operation. Increasing of per barrel crude oil, also can
affect the profit of the company at the end of the financial year. To prevent the
decreasing of the profit, FedEx should increase their service price to cover up the
expenses incurred.
5. How might a devalued American dollar hurt FedEx?
Answer:
The devalued of American Dollar may not affect the profit previous year
however the profit will use to cover expenses incurred in the next year, so if the
American Dollar devalued on the next year, the value of profit last year actually was
decreased therefore FedEx have to spend more money on their expenses. On the
future, the company will suffer the decreasing in the profit and to cover the
decreasing of the profit, the company should make a cut cost to reduce expenses or
increase the service payment towards their customers.