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Analysis of the Strengths, Weaknesses and Threats of FedEx - Free Essay Example

FedEx Corporation (FedEx) provides a comprehensive suite of services such as transportation, e-commerce and business services. The company offers printing, copying and binding services as well as video-conferencing services. The company has presence in more than 1,950 locations worldwide including Australia, Canada, China, Japan, Korea, Kuwait, Mexico, the Netherlands, the United Arab Emirates, the UK, and the US. These locations include 135 locations in seven foreign countries, as well as 30 commercial production centers. The company classified its operations under four reportable segments, namely, FedEx Express, FedEx Ground, FedEx Freight and FedEx Services. In the FedEx Express segment, the company operates chiefly through Federal Express Corporation, which serves more than 306 countries and territories by delivering packages and freight through a single global network. The segment also includes FedEx Trade Networks, Inc., which provides customs brokerage, international trade services, and global ocean and air cargo distribution. It operates around 49,000 ground transport vehicles, including pickup and delivery vans, larger trucks known as container transport vehicles and over-the-road tractors and trailers. It owns and leases about 700 facilities for city station operations in the US. In addition, 400 city stations are owned or leased throughout FedEx Expresss international network. Further, in May 2010, the segment had around 46,000 Drop Boxes, including 5,000 Drop Boxes outside U.S. Post Offices. As of May 31, 2010, the segment also had around 13,000 FedEx Authorized Ship Centers and other types of staffed drop-off locations, such as FedEx Office centers. Furthermore it had around 4,000 drop-off locations internationally. During 2010, FedEx Express purchased jet fuel from an assortment of suppliers under contracts that differ in length and supply for specific amounts of fuel to be delivered. Under the FedEx Ground segment, the company provides small-package ground delivery services, principally through its FedEx Ground Package System, Inc. It principally serves domestic residences through its FedEx Home Delivery across the US and Canada. This segment also comprises FedEx SmartPost, Inc., which deals with the transportation of less time-sensitive business to consumer packages via the US Postal Service and Canada Post Corporation, and the delivery of high v olumes of low-weight. Its corporate offices and information and data centers are located in the Pittsburgh, Pennsylvania, area in a 500,000 square-foot building. As of May 31, 2010, the segment had about 30,400 company-owned trailers and owned or leased 520 facilities, as well as 32 hubs. The hub facilities average approximately 325,000 square feet and range in size from 54,000 to 715,000 square feet. In addition, around 26,300 owner-operated vehicles support FedEx Grounds business. FedEx Freight Corporation operated around 60,000 vehicles and trailers and 492 service centers. These facilities range in size from 850 to 221,300 square feet of office and dock space. The companys FedEx Services segment is engaged in selling and marketing, besides providing information technology support and customer services support through FedEx Corporate Services, Inc and FedEx Customer Information Services, Inc. In addition, it operates through FedEx Office and Print Services, Inc., which offe rs document solutions and business services. Through its FedEx Global Supply Chain Services, Inc., the company provides a wide range of supply chain solutions. FedEx Office centers are located in strip malls, office buildings or individual structures and average around 4,000 square feet in size. The company also inducted a Boeing 777F freighter in its trans-pacific route, connecting Shanghai with FedExs Super Hub in Memphis, Tennessee. The direct connection will offer customers across Shanghai, Kunshan, and Suzhou a two-hour improvement in cut-off times in select areas. The company will be able to achieve fuel efficiency, besides lesser carbon footprint. Its capital expenditure for 2011 is expected to be approximately USD 3.2 billion. Business environment The airfreight and logistics industry is at ground-zero of globalization. The logistics services that tie this industry together, along with the speed of airfreight, has allowed operations, suppliers, and customer-reach to truly extend globally. Off shoring has created global supply networks with complicated logistics problems, which has prompted the proliferation of third-party logistics providers. Large airfreight carriers, such as FedEx and UPS, have redesigned their business model around such services. Their advanced IT infrastructure provides them with a leading edge over competitors, and they continue to invest heavily in this area. The airfreight slump in 2001 and 2002 caused the large airfreight carriers to seek alternative growth areas, and further encouraged them to drive toward providing turnkey freight transportation services. Industry leaders have spent the past few years forming alliances and acquisitions that reach out to the retail sector. Through these deals, leadi ng airfreight carriers expanded their ground delivery trucking routes, offered more affordable deferred delivery options, worked with the USPS through freight forwarders, and expanded into many more retail outlets. B2C e-commerce is changing delivery dynamics, helping less-than-truckload (LTL) trucking and airfreight carriers, at the expense of full truckload carriers. This trend has caused air cargo and trucking to converge, where each is entering into each others markets. Airfreight carriers are entering into time-definite trucking, and accepting heavier cargo. They market their services not as airfreight, but as time-definite services that use both air and truck. LTL trucking firms are offering more time-definite delivery services, where pricing is based on speed of delivery, as opposed to traditional trucking pricing based on distance and weight. Demands of JIT inventory management and global trade have created a need for faster deliveries over longer distances, which helped develop a steady increase in airfreight usage over other modes of transportation. Airfreight remains small compared to other modes, indicating future growth potential, particularly since the forces of globalization will continue to influence economies. Asia, and particularly China, is a growing region due mostly to increased trade with the region, and Chinas robust manufacturing base Industry overview The AL industry includes not only air carriers, but also transportation intermediaries such as freight forwarders and third-party logistics providers (3PLs). Post offices around the world are direct competitors, and some, such as Deutsche Post (owner of DHL), are partially privatized and publicly traded. Most global post offices now offer overnight and deferred delivery services for letters and small packages, as well as logistics services. Passenger airlines also compete, as they transport freight in the storage areas of their passenger airplanes, and many airlines own additional freight-only fleets. This industry is dominated by a few giants, but remains competitive through a multitude of small- and medium-sized companies. Leadership Peter F Drucker Strategic Leadership Award was presented to Frederick W Smith for the year 1997. He was recognized for innovative and result-oriented leadership. He sees solutions where others see obstacles. FedEx developed rigorous processes under his leadership with extremely low defect rates. FedEx employees were highly motivated and were empowered through information, technology, and training. FedEx was transformed by and information technology innovation. Smith believed that speed, reliability and customer service are three critical success factors. To achieve these goals he invested heavily on IT. It was Smiths strong belief that for an express industry it was absolute necessary to use IT to provide customers with real-time information about their shipments. FedEx under Smith leadership invested heavily in IT and was one of the few businesses in the US which anticipated the application of internet in business operations. Fedex.com was launched in 1994 enabling customer to do business online. The work culture in FedEx was open and informal. The talent of employees was well recognized and rewarded. Smith always received tremendous support and confidence from employees. Smith was a strong advocate of globalization. Smith felt strongly that FedEx should commence international operations and in 1984, FedEx started its operations in Europe and Asia. FedEx acquired several major foreign companies under the leadership of Smith. FedEx acquired Tiger International in 1989 which transformed FedEx into the worlds largest full-service. Competitive position (SWOT) SWOT Analysis Overview FedEx Corporation (FedEx) is a provider of a broad range of transportation, e-commerce and business services to its customers under the FedEx brand. The companys strong market position and diversified business operations are its key strengths, even as its weak operational efficiency and return on equity remain areas of concern. Going forward, global economic conditions and intense competition may impede its growth. However, strategic expansions and positive short-term and long-term outlook for air freight and logistics may offer ample growth opportunities to the company. Strengths Weaknesses Strong Foothold in the Market Overdependence on the US Diversified Business Operations Declining Market Share in Sector Opportunities Threats Strategic Growth Plans Intense Competition Cost-Cutting Initiatives Seasonality of the Business Strengths Strong Foothold in the Market FedExs strong market position offers it an advantage over its competitors. FedEx is the worlds largest express transportation company, offering time-certain delivery within one to three business days and serving markets that encompass over 90% of the worlds gross domestic product. It offers delivery of small packages throughout the US and 220 other countries. FedEx Freight Corporation operates 60,000 vehicles and trailers from a network of 492 service centers. FedEx Ground has more than 31,500 company-owned trailers. In 2010, FedEx ranked 13th in FORTUNE magazines Worlds Most Admired Companies. This is the ninth consecutive year for the company to have been ranked in the top 20 on the list. In 2010, the company was listed among FORTUNEs 100 Best Companies to Work for in America and the company has made it to the list in 12 of the past 13 years. Further it is also ranked among 40 Best Companies for Diversity by Black Enterprise magazine. In addition, FedEx continued to rank highest in customer satisfaction in the University of Michigan Business School National Quality Research Centers American Customer Satisfaction Index in the express delivery category. In 2010, FedEx Express won the Institute of Transport Managements Best Global Cargo Hub award for its Memphis World Hub. The company has an excellent human network, with over 280,000 team members who are confidently focused on safety, the highest ethical and professional standards. This strong foothold in the market and brand equity supports the companys foray into new markets as well as the launch of new services. Diversified Business Operations FedEx has a well-diversified business mix, which provides it a competitive edge over its peers. Under the FedEx brand, it offers a whole range of diversified services through its group companies. . FedEx Services offers end-to-end shipping services to international customers through its FedEx Trade Network. FedEx Express is one of the worlds leading express transportation companies, providing fast and reliable delivery to over 220 countries worldwide including every US address. The companys FedEx Ground provides cost-effective and small package shipping services, and business-to-business delivery services through FedEx SmartPost and FedEx Home Delivery. FedEx Freight provides the fastest, door-to-door same day and next day delivery of valuable items, urgent freight, and hazardous goods through FedEx Custom Critical.FedEx Services offers Internet access, copying and digital printing, document creation, computer rental, professional finishing, direct mail, and signs and graphics. Thi s diversified nature of its business mitigates the risks related with concentration of revenues in a segment. Strong Information Systems Network FedExs information systems help the company efficiently serve its customers and also connect to different FedEx companies as well. The information integration helps the company gain business synergies across its multiple operating units. Its website, fedex.com, offers a single point of contact for all of its customers needs. It provides shipment tracking, invoicing information, customer service as well as other FedEx Office services to its customers. Similarly, customers can make a call to the company and can quickly and easily evaluate the various surface and air freight shipping options offered by FedEx and select the best option that suits their needs. Thus, a strong information system network helps the company offer an efficient freight service to its customers, based on their pickup and delivery requirements, nature of the product being shipped and time sensitivity. Strong Growth FedEx was trading at a price/earnings (P/E) ratio of 22.47 at the end of fiscal year 2010. This was above the SP 500 companies average of 18.19. A higher than SP 500 companies average P/E indicates that the company has high growth prospects, which are reflected in its stocks premium pricing. Investors are likely to expect higher earnings growth in the future compared to other companies in the SP 500 index. The companys return on equity (ROE) was 8.6% for fiscal year 2010. This was above the SP 500 companies average of 4.5%. A higher than SP 500 companies average* ROE indicates that the company is efficiently using the shareholders money and that it is generating higher returns than other companies in the SP 500 index. Weaknesses Overdependence on the US Although the company operates across the world serving over 220 countries, it depends heavily on the US market for its revenues. For fiscal year 2010, the US market accounted for over 71.5% of the total revenue of the company. Overdependence on a particular market puts the company at a risk as any political, economic or climatic change in the region could have an adverse impact on the companys business. It also restricts its market share and growth options. Declining Market Share in Sector FedExs operating margin was 5.75% for fiscal year 2010. This was below the SP 500 companies average of 7.26%. A lower than SP 500 companies average operating margin indicate inefficient cost management or a weak pricing strategy by the company. Due to decline in operating margin, the companys compound annual growth rate decreased. The companys compound annual growth rate (CAGR) for revenue was 1.84% during 2006- 2010. This was below the SP 500 companies average of 12.74%. A lower than SP 500 companies average revenue CAGR may indicate that the company has performed below the SP 500 companies average growth and lost market share over the last four years. The companys underperformance could be attributed to a weak competitive position or inferior products and service offerings or lack of innovative products and services. Opportunities Strategic Growth Plans FedEx is pursuing diverse strategic growth plans that drive its top line performance. FedEx Trade Networks, a subsidiary of the FedEx opened offices in offices in Middle East , Europe and Africa regions. This is the companys latest step in the ongoing global expansion plan including new operations in Warsaw and Gdynia, Poland and Dubai, the United Arab Emirates. The company has opened 20 international freight forwarding locations in the past nine months, bringing the companys total to 22 new international locations since 2008. Further, FedEx Ground is building 214,000 square-foot facility as package sorting and delivery station. It would be the fifth major facility for the company in Chicago. Strategic initiatives such as these form part of the companys plans to strengthen and expand its global footprint. Cost-Cutting Initiatives FedEx has been pursuing diverse initiatives that improve its operational efficiency. The company plans to increase FedEx Express vehicle efficiency by 20% by 2020, and expand on-site renewable energy generation and procurement of renewable energy credits. It has been increasingly inducting hybrid vehicles into its fleet, which minimize cost, besides improving efficiency. The companys hybrid electric delivery fleet is the largest in the industry. Its continuous focus on hybrid and electric vehicles is likely to minimize its fuel costs, besides reducing pollution. To attain its objective of vehicle efficiency at low cost, the company is retiring and replacing older Boeing 727s with more fuel-efficient and quieter Boeing 757s. Strategic Alliances Strategic alliances could provide the company an immense opportunity to expand its service portfolio and cater to a wider customer base and improve its profit margins. FedEx has a multi-year agreement with OfficeMax to offer domestic FedEx Express and FedEx Ground shipping in over 900 US OfficeMax retail locations. FedEx SmartPost expanded its services in Canada for US shippers by collaborating with Canada Post Corporation. These alliances and mergers help the company generate cost efficiencies by maximizing the use of the combined assets. The company could further expand its service offerings and geographical presence by partnering or acquiring such potential companies and garner higher market share. Growth of Air Freight and Logistics Market Due to rapid growth of air freight and logistics market worldwide it offers a strong growth potential for the company. Air freight and logistics market is expected to reach a total value of USD164.8 billion by 2012. Due to the strong performance of the Asia-Pacific economies, this sector recorded strong growth particularly in China and India. As China India are hubs for low cost manufacturing, finished goods in these markets drive the demand for air freight and other means of transportation in the region. The demand for the companys services could increase because of the strong growth of global air freight and logistics market. Forrester Research conducted a study of the global online shopping. It is forecast that the revenue of the global online shopping will reach USD334 billion by 2012 as compared to USD267 billion in 2009. Main drivers of online retail shopping are apparel, accessories ,and footwear, computer hardware, software, peripherals, autos , and auto parts, consumer el ectronics and home furnishings. FedEx will benefit largely form the strong growth in online retail sales. Threats Intense Competition The express package and freight market is highly competitive, which could affect the growth of the company. The companies in the industry compete on factors such as price, geographical coverage, reliability, frequency and capacity of scheduled service, ability to track packages and innovative service offerings. Key competitors of the company include United Parcel Service, Inc, US Postal Service, DHL International Limited, Con-Way Inc., Geodis SA, and TNT NV, amongst others. Some of these competitors have greater resources, lower costs and more favorable operating conditions. If the company fails to launch innovative services or efficiently serve its customers, growing competition could lure away its customers. Competition could also compel the company to compete in product pricing as well, resulting in lower profitability. Seasonality of the Business FedExs business could also be affected by the seasonality of the industry. Historically, the US express package business has experienced an increase in volume during the November and December. The international business, especially the Asia to US market, witnesses a surge during October and November while other periods generally witness relatively lower volumes. The FedEx Freight LTL Group handles lower volumes during late December, January and February while FedEx Ground witnesses its slowest periods during late December, June and July. Thus, any decline in volumes during the peak season cannot be made up during the lean period, affecting the earnings the company. National Labor Relations Act FedExs air cargo business may be affected by the National Labor Relations Act. FedEx Express employees are covered under the Railway Labor Act, which was extended to airlines in 1936, which restricts a labor dispute in one part of a broader transportation system from bringing that system to a halt. However, the US senate is debating the issue, as it is part of the FAA authorization bill. FedEx has announced its intentions to stop investing in its Express air unit, if the Congress shifts its employee status to the National Labor Relations Act. The company expects that the FAA authorization bill, if it becomes law, may enable employees to organize into local bargaining units, as they can unionize locally. Strategies future recommendation FedExs strategy for success in the market place relies on a combination of customer understanding, operational excellence and product leadership customer value proposition. FedEx relies on its excellent operations system to deliver products or services quicker, more conveniently and at lower prices than its competitors. FedEx focuses on its sales and advertising, as well as the information systems that support the extensive automation of their package delivery system. Pursue growth through acquisitions As trucking and airfreight continue to converge, with airfreight accepting larger freight loads and trucking offering more time-definite delivery, AL industry companies can look for acquisition opportunities in this area. Many independent freight forwarders, customs brokerage firms, and 3PLs have established themselves as leaders in their niches over the past decade, which are also prime acquisition targets. No firm dominates logistics services, not even the AL industry leaders, indicating much room for consolidation in this area. Pursue growth through partnerships and alliances Partnerships and alliances with complementary services providers, such as freight forwarders, can help airfreight carriers achieve many of the same goals as acquisitions. For example, FedEx has successfully tapped into the retail reach of the USPS with unique partnerships, while avoiding the high cost of the last leg that the USPS serves on a large scale. Airfreight carriers, freight forwarders, and 3PLs all can gain from partnering with airlines for belly space at times. Specialized companies should seek such alliances with companies that help to leverage their niche service with other services. Grow revenue thru new markets with existing products Most companies have suppliers and customers around the world, and most consumers order products globally through the Internet. Furthermore, developing markets with rising disposable incomes offer growth opportunities, especially Asia, which is the fastest growing trading region with the U.S. Commercial manufacturing clients in China are a substantial source of growth. The Six Force Industry analysis We will analyze the Porters five forces and the McAfees sixth force to look the industry overview and analyze FedEx position in the market. Rivalry Main competition in this industry is in between FedEx, UPS, U.S. Postal Service (USPS), airfreight forwarders and passenger airlines that carry packages. Traditionally the company that responses first to the changing trends; tends to win in the long run. FedExs key international competitors are UPS, DHL, TNT and government backed postal entities. Many of these competitors are government-owned, which may have greater means, lower costs, less profit indifference and more favorable operating conditions than FedEx. In addition, intense rivalry is also due to the presence of high exit barriers due to high fixed costs which comes with maintaining huge infrastructure for express delivery. Threat of Entry A global freight and packaging business is an economy of scale. Existing companies can take the cost advantage of their large scale operations and large volume to achieve economies of scale. To achieve economies of scales, the firm should have global network of distribution centers, efficient supply chain management system and access to large fleet of airplanes, ships, trucks and trains. FedEx dominates the air freight and overnight delivery market, whereas UPS controls the major market share in ground transportation. A new entrant would have to invest large amounts of capital and will probably start of as a local regional player or specialize in a sub-market, will not be in a competitive position. Threat of substitute There are not many options or substitute to may pose a potential threat to the freight industry. These days most big players offer one-stop shop solution to its customers, they offer air, ground and ocean freight transportation. Individual and businesses will always need to ship packages from one point to another whether as personal material, raw product or finished product, thus will require the services of this industry. However, the use of emails has created a big hole in the usage of overnight deliveries of documents segment in the industry and organization and individuals are welcoming than ever to accept these online electronic deliveries of documents. Supplier Bargaining Power One of the main expenses in this industry is high and often fluctuating prices of fuel, this directly affects the bottom line of companies. The price of fuel is determined by the health of global economy and political issues which puts the oil suppliers in strong bargaining position. Suppliers of packaging material do not have high bargaining power as most companies buy in large quantities and can easily switch to other supplier at low costs. Suppliers of airplanes and trucks also do not have high bargaining powers due to the high rivalry environment their respective industries. However, the companies that offer services such as airplane and truck maintenance and airport services tend to have high bargaining power due the existing contracts and high switching costs. Buyer Bargaining Power Due to fierce competition to become the main supplier of freight services to corporations, the buyers enjoy high bargaining powers. Corporations have low costs in switching from one service provider to another. These days with the boom in e-commerce industry, many companies will contract with one service provider to deliver all their packages as these companies usually do not give an option to their customers to choose a service provider. Individuals usually opt for the lowest prices, however they be affected by advertising and brand of certain firm when choosing a service provider. Complements The Sixth Force Internet has played a big role as a complement in this industry, now the customers can also track the shipments online. For customers such as online retailers can ship their products and give the option to its customers to track the shipments. Since the acquisition of Kinkos by FedEx and of Mailboxes by UPS, both the companies are able to offer a whole new variety of services to its customers. Customers can do all their office and document related work at one shop and will tend to use the services of the freight service provider at that shop. Other complements such as mail insurance also tend to add value to the companies and provide extra services to the customers. Appendix FedEx Corporation, Key Competitors Name Headquarters Revenue (US$ m) Con-Way Inc. United States 4,265 Deutsche Post AG Germany 84,132 Geodis SA France Panalpina World Transport (Holding) Ltd. Switzerland 5,466 Royal Mail Group plc United Kingdom 15,534 United Parcel Service, Inc. United States 45,297 United States Postal Service United States 68,090 TNT N.V. Netherlands 14,447 DHL International GmbH Germany Key Executives History Name Title Biography Frederick W. Smith Chairman, Chief Executive Officer, President Mr. Smith has been the Chairman, the Chief Executive Officer and the President of FedEx Corporation since 1998. Prior to this, he served as the Chairman of FedEx Express since 1975 and Chairman, President and Chief Executive Officer of FedEx Express from 1983 to January 1998. He served as the Chief Executive Officer of FedEx Express from 1977 to January 1998 and as the President of FedEx Express from 1971 to 1975. Robert B. Carter Chief Information Officer, Executive Vice President Mr. Carter has been the Executive Vice President, FedEx Information Services and the Chief Information Officer of FedEx Corporation since 2007. Prior to this, he served as an Executive Vice President and the Chief Information Officer of FedEx from June 2000 to January 2007. He served as the Corporate Vice President and Chief Technology Officer of FedEx from February 1998 to June 2000. In the past, he held several senior positions such as the Vice President Corporate Systems Development of FedEx Express from September 1993 to February 1998 and Managing Director Systems Development of FedEx Express from April 1993 to September 1993. Alan B. Graf, Jr. Chief Financial Officer, Executive Vice President Mr. Graf has been an Executive Vice President and the Chief Financial Officer of FedEx Corporation since 1998. Prior to this, he served as an Executive Vice President and the Chief Financial Officer of FedEx Express from February 1996 to January 1998. He was the Senior Vice President and Chief Financial Officer of FedEx Express from December 1991 to February 1996 and the Vice President and Treasurer of FedEx Express from August 1987 to December 1991. FedEx History 2009 Acquisitions/Mergers/Takeovers Caribbean Transportation Services, Inc. (CTS), a provider of airfreight forwarding services principally between the US and Puerto Rico, the Dominican Republic, Costa Rica and the Caribbean Islands, was merged with FedEx Express. 2009 Contracts/Agreements FedEx Express entered into an operational agreement with MNG Kargo, a leading domestic express company in Turkey. 2009 Corporate Changes/Expansions FedEx Ground opened a new distribution facility in Medley, Florida. 2009 Corporate Changes/Expansions The companys subsidiary, FedEx Trade Networks expanded its global presence with seven freight forwarding offices in Asia and Latin America. 2009 Contracts/Agreements The companys FedEx Express, a subsidiary of FedEx Corp. entered into an agreement with CryoPort Systems, Inc. to provide an innovative and break through frozen shipment solution for the life science industry. 2009 Corporate Changes/Expansions FedEx SmartPost expanded its service into Canada for the US shippers by collaborating with Canada Post Corporation. 2009 Contracts/Agreements FedEx signed a multi-year agreement with OfficeMax to offer domestic FedEx Express and FedEx Ground shipping to over 900 US OfficeMax retail locations from fall 2009. 2008 Corporate Changes/Expansions FedEx Express, a subsidiary of FedEx Corp. started FedEx Express National, a domestic overnight service in Mexico. 2008 Contracts/Agreements Canada Post Corporation and FedEx Express Canada entered into an agreement to provide a new international express service. 2007 Contracts/Agreements FedEx Express entered into an agreement to acquire Hungarian global service participant. 2007 New Products/Services FedEx started its new long-haul less-than-truckload (LTL) service. 2007 Acquisitions/Mergers/Takeovers FedEx Express acquired Prakash Air Freight. 2006 Acquisitions/Mergers/Takeovers FedEx acquired ANC Holdings. 2006 Acquisitions/Mergers/Takeovers FedEx acquired the Watkins Motor Lines. 2006 New Products/Services FedEx started FedEx(R) Critical Inventory Logistics. 2005 New Products/Services FedEx Ground started a new automated distribution center in McCook. 2004 Acquisitions/Mergers/Takeovers The company acquired Kinkos. 2001 Acquisitions/Mergers/Takeovers FedEx acquired American Freightways. 2000 Acquisitions/Mergers/Takeovers FedEx acquired Tower Group International. 2000 Corporate Changes/Expansions The company was renamed as FedEx Corporation. 1998 Acquisitions/Mergers/Takeovers The company acquired Caliber System. 1997 Incorporation/Establishment FedEx was incorporated in Delaware as the parent holding company of its operating companies. 1984 Acquisitions/Mergers/Takeovers FDX acquired Gelco Express International. 1981 New Products/Services FDX started its first international service in Canada. 1979 New Products/Services The company installed a centralized computer system named Cosmos. 1978 Stock Listings/IPO FDX was listed on the New York Stock Exchange. 1971 Incorporation/Establishment FedEx was established as FDX in Arkansas. FedEx Corporation, History FedEx Performance Chart (2006 2010)

Voluntary Euthanasi A Controversial Issue - 1354 Words

Voluntary Euthanasia 2 Voluntary Euthanasia is in of itself, entirely a controversial issue. What is Voluntary Euthanasia? Voluntary Euthanasia is intentionally bringing about the death of another person who has either requested it or given their consent. In this paper, we will explore the intricacies of voluntary euthanasia, the issues, the moral dilemma, and how different types of ethicists would view the act. Voluntary euthanasia is controversial simply because it may be considered murder and actually, in some circles and several countries, it is actually considered murder. The ethical dilemma put simply is this: If you help somebody die you are ending a life and that is considered to be wrong, however, on the flip side, if this person is living a life that they have determined is no longer worth living, then not helping them to end it means sentencing them to a life or illness, pain or complete and total dependence on someone else. In several places in the world, there is provision in the law for voluntary euthanasia. This may be because the issue has either never come up or has been deliberately legislated against. The case for voluntary euthanasia is usually made on the basis that an individual has arrived at a place in their lives medically where sustaining or prolonging their life would be considered less beneficial to them than being dead. In other words, voluntary euthanasia is usually requested by those who are terminally ill, in a considerable amount of pain or

Olanzapine Psychotropic Medication and Weight Gain

Question: Discuss about the Olanzapine Psychotropic Medication and Weight Gain. Answer: Introduction Olanzapine, formerly known as Zyprexa is a US Food and Drug Administration (FDA)-approved antipsychotic medication for the treatment of bipolar disorder and schizophrenia disorders. Olanzapine, which falls in the category of thienobenzodiazepine is a dopamine antagonist medicine marketed and manufactured by the Eli Lilly and Company Pharmaceautical Company. Before going generic in 2011, the medicine had already gained popularity because it had realized a total sale of $4.7 billion globally and $2.2 billion within the US alone (Correll, Sikich, Reeves Riddle 2013). Although the medicine has been credited with the treatment of bipolar and schizophrenia disorders, Olanzapine has been faulted because of several side effects such as weight gain on the users. This paper presents a critical analysis of the effects of Olanzapine on weight gain. It focuses on how the medication causes weight gain and goes ahead to analyze how the situation can be managed and prevented. Olanzapine and Weight Gain Despite the fact that Olanzapine has been glorified for being effective in causing insignificant extrapyramidal impacts and mental impairments on the bipolar and schizophrenia patients, it has been associated with a number of side effects such as weight gain. A large number of patients using the drug have reported weight gain. In fact, the medicine has a higher incidence of weight gain. Its users often complain of at least 7% increase in the body weight. According to previous research, the medicine causes weight gain because of its H1 receptor or potent 5-HT2C receptor (Brunner, Tohen, Osuntokun, Landry Thase 2014). How Olanzapine causes Weight Gain When an individual uses the medicine, the body weight increases. Although it is one of the most important psychiatric drugs in the market, Olanzapine has been proved to be one of the most troublesome medications when it comes to weight gain. Since the rate of weight gain varies from each person, it might not be possible to exactly estimate the accurate amount of weight gained as a result of the drug usage. Various factors such as lifestyle, medication regimen, and genetic profile play a significant role in determine the rate of weight loss in each person. Nevertheless, scientists have found out that the average Olanzapine-induced weight gain ranges from 61 lbs to 13 lbs within a period of 2 years. Research has established that the Olanzapine because of the several metabolic changes in introduces to the body of the users. These include the following: Appetite Increase: One of the changes introduced into the body by Olanzapine is increase in appetite. Scientific research has proven that the use of the medication makes people to feel so hungry and then eat a lot of food. Sometimes, the rate of hunger is so high to the extent that individuals are compelled to eat every now and then (Brunner, Tohen, Osuntokun, Landry Thase 2014). In fact, the situation can be worse to the extent that it forces people to wake up in the middle of the night to look for some food to eat. By encouraging people to eat a lot, the medication directly contributes to weight gain since a person with such an appetite might not have time to make a choice on food, but bumps on anything so long as it can address the problem of ravaging hunger. Blood Sugars: When used to treat the psychiatric disorders, Olanzapine can contribute to the rise in the level of glucose in the blood. The rise in the level of blood sugar brings changes in body metabolism that eventually results in weight gain. Failure to regulate the level of blood sugar in the body obviously leads to increase in body weight. So, if this persists, an individual can be affected by diabetes (Amiaz, Rubinstein, Czerniak, Karni Weiser 2016). Meaning, Olanzapine is a medication that has a potential of causing diabetes to those who are using it. There is a direct relationship between blood sugar and body weight. In fact, the problem of blood sugars, if not addressed in time, can result into obesity. Fat Build-Up: One of the functions of the body is to store fat. Fatty acids are important components of diet because they play a significant role in supplying the body with the energy required to at all times. Although the body has a mechanism for fat storage, it changes during medication because of the influences of Olanzapine (Tohen 2015). As established by the previous researchers, the presence of Olanzapine changes the way in which fat is stored in the body in different ways. First, it leads to the storage of large quantities of fat. Besides, it changes the storage points to unusual body parts such as breasts rather than the ordinary storage parts. All these result into increase in the body weight. Food Cravings: As already highlighted, Olanzapine increases appetite. While it may be an ordinary desire for food by some people, others might experience a high level of hunger. When this happens, they develop a high demand of food. Once an individual has a craving desire for food, they can end up eating anything they come across without considering whether it is appropriate or not (Daurignac, Leonar Dubovsky 2015). Some people even develop a craving desire for the foods that they have never been using before. This kind of behavior can result into weight gain for those who resort to consuming too much sugars and carbohydrates because of the use of Olanzapine. Taste Improvement: Olanzapine does not only cause food craving and boost appetite, but also improves tastes. When an individuals taste incredibly increases, they get the urge for more food and tend to eat a lot. However, this may expose one to weight gain because the more the taste improves, the higher the chances of consuming certain food products that can make one vulnerable to weight gain. For example a person who eats a lot of sugary foods after using the drug is likely to experience increase in body weight. So, in this case, it is only those who adopt a proper diet that can minimize the chances of weight gain even if they notice a change in their taste (Kloiber, Domschke, Ising, Arolt, Baune, Holsboer Lucae 2015). Otherwise, they might find it hard to regulate the kinds of foods to eat in response to the improved taste. Social Eating: One of benefits of Olanzapine is that it gives people an opportunity to address the psychiatric disorders and become sociable just like the rest of the normal people. Should this happen, one becomes quite interactive with many people, a social behavior that might lead them to go out on picnics and celebrations in which large portions of food are consumed (Zheng, Li, Tang, Xiang, Wang de Leon 2015). Unfortunately, this results into weight gain because of the likelihood of overuse of unhealthy diets. It is always not easy for the people in a celebratory mood to make a proper choice of the kind of foods to eat. So, in this case, it becomes inevitable to tame weight gain since the main focus is on the quantity, not quality of the food eaten. Gut Bacteria: Every human being has gut microbiome because of the important role it plays in the digestive system. One way through which the Olanzapine result into increased body weight is because of the manner in which it affects the normal functioning of the gut bacteria. When used in the body, Olanzapine disrupts and seriously interferes with the metabolic activities of the body. Such disruptions bring changes that make it difficult for the metabolic system to function and check on the weight (Kloiber, Domschke, Ising, Arolt, Baune, Holsboer Lucae 2015). This makes the individuals who are using the drug to become unable to control their body weight since every body system is not operating in the way it ought to. Hormones: When used to treat the mental disorders, Olanzapine is known to be having a direct impact on the body hormones. This happens mainly because the drug has been associated to the fluctuation in the level of various body hormones. Should that happen, body weight can increase. For instance, when used for some time, the drug can lead to the fluctuation of the levels of a hormone called prolactin which is known to be having a direct impact on the levels of testosterone in the body (Zheng, Li, Tang, Xiang, Wang de Leon 2015). By altering the levels of these hormones, Olanzapine contributes to the occurrence of weight gain by the drug user. For a normal functioning of the body, these hormones should always be stable without unnecessary fluctuations. Increased Thirst: Apart from causing hunger, Olanzapine has been attributed to making the users thirsty. Even if thirst should be ordinarily addressed by drinking water many people might be tempted to resorting to flavorful liquid food products like soup, soda, or juice to use in quenching the thirst instead of water. Once a person using the medication starts using these food products to quench thirst, it may develop to be a normal habit (Biedermann, Fleischhacker, Kemmler, Ebenbichler, Lechleitner Hofer 2014). The more this is done, the higher the chances of increasing the body weight because such flavors have food contents such as sugars that negatively impact on the body metabolism process. Metabolism: Olanzapine also contributes to weight gain by altering the normal functioning of the body. Precisely, when used in the body to treat the mental disorders, the drug leads to a decrease in the rate of metabolism. The lowering of body metabolism has a potential of increasing body weight because it makes it challenging for all the body mechanisms to operate in a normal way (Almandil, Liu, Murray, Besag, Aitchison Wong 2013). Metabolic activities in the body should always run in the right speed without any interference. So, when it is lowered, a drug user can get higher chances of increasing the body weight even if all the other measures such as healthy diet are observed. Inactivity: When used as a drug, olanzapine can make an individual to be physically inactive. The level of inactivity is fastened by the side effects of the drug such as sleepiness, drowsiness, and fatigue. Physical inactivity can be dangerous when an individual is still under medication because, amongst other effects, it slows the rate of body metabolism (Simpson, Glick, Weiden, Romano Siu 2014). A physically inactive individual is likely to gain weight because of lack of ability to burn calories. Individual Factors Influencing the Level of Weight Gain Although olanzapine use has a potential of increasing body weight, it should be noted that the extent of weight gain is not constant because it varies depending on individual unique factors such as lifestyle, dosage, length of medication period, and the effects of other medications used alongside olanzapine. Dosage, for example, has a direct impact on weight gain. Drug users are expected to use a recommended dose of 20 mg. however, when this is surpassed, one is likely to gain weight because the higher the dosage, the higher the chances of gaining weight (Evers, van Vliet, van Vugt, Scheurink van Dijk 2016). Lifestyle, on the other hand, impacts on the rate of weight gain because it is higher in those who have unhealthy lifestyles such as poor diet, less sleep, and lack of physical exercises. When it comes to the duration of drug use, it should be noted that the longer the period, the higher the chances of gaining weight because of tolerance. Management and Prevention of Weight Gain The fact that olanzapine impacts on the body weight do not imply that such psychotropic-induced weight gain cannot be managed. However, it should be acknowledged that the situation can be handled if appropriate strategies are put in place to manage and prevent it. These are discussed herein: First and foremost, olanzapine-induced weight gain can be minimized and eliminated by making a proper choice of the drug. It can be advantageous if the weight gain-inducing medications are avoided at all costs. When a patient seeks for medical prescription from a psychiatrist, the clinician should thoroughly assess the patient before coming up with the most appropriate psychotropic drug that can help the patient to prevent weight gain. For instance, when given an option of selecting from Ziprasidone, Paroxetine, aripiprazole, mirtazapine or bupropion; the latter should be preferred because it does not increase body weight (Montgomery, Treuer, Ye, Xue, Wu, Liu, Kadziola, Stensland Ascher-Svanum 2014). Proper choice of medication can help a patient to address the challenge of weight gain and deal with it in a timely manner. Secondly, the problem of weight gain can be dealt with by switching drug usage in the course of treatment. Since there are many alternative medications, a patient should not be compelled to stick to one particular drug if it is not effective in meeting all the conditions of antipsychotic medications (Simpson, Glick, Weiden, Romano Siu 2014). A. So, when the use of olanzapine is found to have resulted into unnecessary weight gain, its usage should be stopped forthwith before a more suitable alternative medication is gotten. However, when switching a patient from one medication to another, the clinician should ensure that all the challenges that might arise as a result of drug interactions, relapse, withdrawal as well as additive adverse effects are addressed without exposing the patient to further dangers. Last, but by no means the least, olanzapine-triggered weight gain can be addressed by the provision of non-pharmacologic interventions to psychiatric patients. When it is discovered that the use of olanzapine can inconvenience the patient by increasing the body weight, the clinician is free to resort to the use of non-pharmacological interventions such as exercise programs, nutrition counseling, and cognitive and psychological therapy. If properly utilized, these interventions can help in preventing weight gain or reduce the chances of weight gain for those who are already under psychotropic medications (Almandil, Liu, Murray, Besag, Aitchison Wong 2013). Lifestyle changes, diet usage and physical activities are known to be the remedial measures for weight gain. A patient who is adequately guided on these areas can learn how to battle psychiatric disorders without necessary gaining weight. Conclusion Olanzapine has been approved by the FDA because of its ability to treat bipolar disorder and schizophrenia disorders. If properly used, the medication can help in addressing the cognitive, behavioral and psychological challenges posed by the disorders. However, as much as much as Olanzapine is commended for its contributions, a lot of caution should be taken because of its side effects notably weight gain, which results from the drugs effects on appetite, hormones, thirst, fat build-up, and metabolism. Nevertheless, the problem of weight gain can be dealt with by avoiding the drug, switching its usage and application of non-pharmacological interventions. Hence, when using the medication, it is recommended to weigh its pros and cons before determining if it is really appropriate for the intended treatment. References Almandil, N.B., Liu, Y., Murray, M.L., Besag, F.M., Aitchison, K.J. and Wong, I.C., 2013. Weight gain and other metabolic adverse effects associated with atypical antipsychotic treatment of children and adolescents: a systematic review and meta-analysis. Pediatric Drugs, 15(2), pp.139-150. Amiaz, R., Rubinstein, K., Czerniak, E., Karni, Y. and Weiser, M., 2016. A Diet and Fitness Program Similarly Affects Weight Reduction in Schizophrenia Patients Treated with Typical or Atypical Medications. Pharmacopsychiatry, 49(03), pp.112-116. Biedermann, F., Fleischhacker, W.W., Kemmler, G., Ebenbichler, C.F., Lechleitner, M. and Hofer, A., 2014. Sibutramine in the treatment of antipsychotic-induced weight gain: a pilot study in patients with schizophrenia. International clinical psychopharmacology, 29(3), pp.181-184. Brunner, E., Tohen, M., Osuntokun, O., Landry, J. and Thase, M.E., 2014. Efficacy and safety of olanzapine/fluoxetine combination vs fluoxetine monotherapy following successful combination therapy of treatment-resistant major depressive disorder. Neuropsychopharmacology, 39(11), pp.2549-2559. Correll, C.U., Sikich, L., Reeves, G. Riddle, M., 2013. Metformin for antipsychotic-related weight gain and metabolic abnormalities: when, for whom, and for how long?. American Journal of Psychiatry, 170(9), pp.947-952. Daurignac, E., Leonard, K.E. Dubovsky, S.L., 2015. Increased lean body mass as an early indicator of olanzapine-induced weight gain in healthy men. International clinical psychopharmacology, 30(1), pp.23-28. Evers, S.S., van Vliet, A., van Vugt, B., Scheurink, A.J. and van Dijk, G., 2016. A low TSH profile predicts olanzapine-induced weight gain and relief by adjunctive topiramate in healthy male volunteers. Psychoneuroendocrinology, 66, pp.101-110. Kloiber, S., Domschke, K., Ising, M., Arolt, V., Baune, B.T., Holsboer, F. and Lucae, S., 2015. Clinical risk factors for weight gain during psychopharmacologic treatment of depression: results from 2 large German observational studies. The Journal of clinical psychiatry, 76(6), pp.802-808. Montgomery, W., Treuer, T., Ye, W., Xue, H.B., Wu, S.H., Liu, L., Kadziola, Z., Stensland, M.D. Ascher-Svanum, H., 2014. Does participation in a weight control program also improve clinical and functional outcomes for chinese patients with schizophrenia treated with olanzapine?. Neuropsychiatric disease and treatment, 10, p.1287. Simpson, G.M., Glick, I.D., Weiden, P.J., Romano, S.J. and Siu, C.O., 2014. Randomized, controlled, double-blind multicenter comparison of the efficacy and tolerability of ziprasidone and olanzapine in acutely ill inpatients with schizophrenia or schizoaffective disorder. American Journal of Psychiatry. Tohen, M., 2015. Psychotropic Agents and the Prediction of Weight Gain. The Journal of clinical psychiatry, 76(11), pp.1474-1475. Zheng, W., Li, X.B., Tang, Y.L., Xiang, Y.Q., Wang, C.Y. de Leon, J., 2015. Metformin for weight gain and metabolic abnormalities associated with antipsychotic treatment: meta-analysis of randomized placebo-controlled trials. 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