Tutor: Mr Tran Tuan Anh

Tutorial 4 – BA08
Group member: Tran Thai Phuong
Do Minh Ngoc
 Outline

• 1. FedEx’s background

• 2. FedEx’s augmented service offering

• 3. Risk and control theory in FedEx

• 4. Application in Vietnam

• 5. Recommendation
 Company background
Headquarters Worldwide: Memphis, Tenn.
Asia: Hong Kong, China
Canada: Toronto, Ontario
Europe: Brussels, Belgium
Latin America: Miami, Fla.
Founder: Mr Frederick W. Smith,
Start operation in April 1973 in US, overseas operation since 1984
Service Area: More than 220 countries and territories, including
every address in the United States
Workforce: More than 140,000 employees worldwide
Volume: Approximately 3.4 million packages and 10 million pounds o
freight daily
Air fleet: 654 aircraft
Delivery Fleet : More than 43,000 motorized vehicles

•
FedEx’s augmented service offering
1. Core service: courier service
• FedEx International Priority
• FedEx International Economy
• FedEx International Priority Freight
• FedEx International Economy Freight 
• FedEx International Broker Select
• FedEx International Priority Direct Distribution
• FedEx Import One
FedEx’s augmented service offering
2. Supplementary service
• Consultation: Advice:
- When a shipment has arrived its destination, customers are
advised in terms of customs

• Hospitality: Greeting:
- Previous customers are quickly identified when they ring in
- All new customers within 24 hrs have a thank-you call and
confirmation of reservation
- Customer service number can be accessed any time 
• Safekeeping: Baggage handling:
- Internet-based system allows customers to keep track of their
packages
- Special software helps customers monitor, control their goods
and improve their warehouse
FedEx’s augmented service offering
    

• Delivery: process of package deliver

    

• Tracking delivery: by email, reference, tracking

number, using FedEx desktop
    

• Exceptions: timely response to customers requests

    

(software: DADS)

• Packaging: packaging in variety of shapes and sizes and

free of charge when shipment is taken to FedEx (FedEx
envelope, Pak, Tube, Box (S-M-L), 10kg box, 25kg box).
FedEx’s augmented service offering
3. Facilitating services:
• Information: Documentation:
– How to fill out an air waybill
– First-time customers are highlighted on daily call –sheet
summaries
– A kit of information is delivered to new customers within
two weeks of their signing with FedEx.
– Software guides the users through preparation and
information of exporting
– Rates and transit times
– Manual guidelines for packing
– Service location & hours of operation
FedEx’s augmented service offering

• Order-taking: FedEx supplies request

form

• Procedure: software is designed to

enable customers to complete
transactions, call for courier pickups, etc.
through Internet
 Risk and control theory in FedEx
• Functional risk: how customers are ensured their package
are delivered on time and to the right places?
• Psychological risk: customers’ fears of poor performance
(goods are damaged, trouble with paper works, etc.)
 Behavioral Control:
– Software is provided for customers to keep track on their
goods’ whereabouts and handle their returns and repairs
(EC- Manufacturing, EC- Return Management) using
tracking numbers, reference or email.
– Customers can download preparation guides on filling
airway bills, commercial invoice or packaging on official
website
– Customs Clearance Department expedites duties and taxes
upfront on behalf of customers.
 Risk and control theory in FedEx
• Temporal risk: there might be worries about unexpected delays of
the delivery
 Cognitive Control: customers are informed of the delay and can
choose among alternative routes and transportation options for
shipment (have software to predict weather, traffic, etc.  FedEx
plots alternative routes)

• Financial risks: will there be extra expenses and

unexpected costs?
 Behavioral Control: Software (FedEx Ship Management) provides
rate quotes so that customers can begin their budgeting and
accounting process immediately. In addition, customer can go onlin
to check rates and transit time.
Application in Vietnam- Mobifone
Company background
• Name: MobiFone
• Industry: Mobile Telecommunications
• Founded: April 16, 1993
• Staff: 3,000
• Parent: VNPT
• Coverage stations: 20,000
 
Mobifone’s revenue
Mobifone’s augmented services
Core services:
• Mobile networks
• Telecom services
 
Supplementary services:
– Hospitality/ Entertainment:
• Access to broadband internet (Fast Connect)
• Share pieces of music with friends (Fun Ring)
• Have background music played while making outgoing calls (Music
• Chat with subscribers of other service providers SMS, Web (MobiCh
• Customers can keep in touch with anywhere in the world (Internati
Roaming)
• Information (football, weather, exchange rates, etc.)is sent to custo
(Liveinfo)
 
Mobifone’s augmented services
Supplementary services (cont):
– Security:
• Store customer’s phonebook in case of SIM Card is ruined or lost.
(Fonebackup)
 
– Special Assistance:
• Transfer a part of customer’s account to another account (M2U)
• Missed calls are recorded and notified when the phone is turned on
(Missed Call Alert)
• Sending a text that requests another local subscriber to call back
(Call me)
• Automatic service which answers customer’s phone and record
messages (Voice mail)
• Sent texts to a group of people (MobiList)
• Check mail via mobile (BizMail)
Mobifone’s augmented services
• Facilitating services
- Information:
• Service site: details on Mobifone’s shop is available online or printed
on the backside of invoice.
• Notification of changes: information about promotion, new services
is available online or automatically sent to customers’ cellphone.
• Responds to customers’ queries: Hotline services including Smart
Care - 9224, 888 - Hotline to direct sales team
• Summaries of account: customers can check account via texting,calling
• Instructions on using services: specific information on using core services
and value added service such as Funring, Music talk, Voicemail, Mobichat,
etc and payment, price
- Payment: customers can choose to pay online or pay at home whereby
Mobifone’s employee will come to customers’ house to collect money
(for post paid users) or using MobiEz, paper
card or card code (for prepaid users)
- Physical evidence: offices (5 centers- 106 offices nation wide) with amenities.
 Recommendation

• Update and check up technology to avoid

mistakes

• Provide clear information on services

 References
• FedEx’s website. Available at URL: http://
www.fedex.com/vn/

• Mobifone’s website. Available at URL: http:

mobifone.com.vn/web/vn/