Discussion Although FedEx has a reputation as an innovative company, has a strong position in its market, has a strong stock price, and reports strong revenues; there were still many concerning issues revealed by the financial ratios and financial statements analyses in the previous sections. These specific areas of concern are management’s inability to effectively utilize debt and assets as evidenced by the low ROE and ROA figures, the low net-margins compared to UPS that also demonstrate a concerning lack of efficiency, and the troubling debt situation that indicates a risky leverage situation as illustrated by the D/E ratio. None of these issues alone are extremely problematic, but taken together, they are extremely concerning and they …show more content…
Enron was a stark example of why financial accounting, accounting standards, reliable financial reporting, and oversight is so important to investors and creditors. Congress responded to public outcry by passing a bill, which President George W. Bush signed, into law in 2002. The Public Company Accounting Reform and Investor Protection Act of 2002, also known as the Sarbanes-Oxley Act or SOX, applies to all publicly traded companies. Sarbanes-Oxley, among other things, seeks to regulate auditors and the functions they perform. To help accomplish this task, the SOX Act required the establishment of an oversight board. This five-member oversight board has authority to set standards regarding auditing and the auditing process. Another key aspect of the SOX Act was instituting corporate accountability. Company executives must now personally attest to the accuracy of the financial statements and disclosures. The Sarbanes-Oxley Act had many costly consequences for the business world, but, if the public has no confidence in the market, investment is stifled and the entire economy slows
Accounting and auditing firm The scandal's consequences would primarily be a professional embarrassment for auditing and accounting firms. The American Institute of Certified Public Accountants quickly altered the auditing standards of the accounting profession in the United States, prompting auditors to become more proactive in combating fraud. The shareholders
A financial audit is an independent, objective evaluation of an organization 's financial reports and financial reporting processes. The primary purpose for financial audits is to give stakeholders reasonable assurance that financial statements are accurate and complete. Most internal audits are not adding value. One reason is that “ongoing compliance burdens and pressure to do more with less” is contributing to the decline in perceived internal audit value.
FedEx delivers over 10 million packages from third party companies, and I believe that they are not at fault for the internet 's lack of security for non-prescript drugs to be ordered. They are doing their jobs to deliver a package, and though they should have security when making those kinds of deliveries, but I also believe they did the right thing by making customers pick the prescriptions up at the FedEx
Overall, I continue to have a favorable view of Protective’s claims operation and their management of the FedEx Workers’ Compensation program. My review found their claims well managed with proper reserve practices. With that stated, I expect Protective’s claim operation to have a positive impact on the overall profitability of our treaties. Since my last visit in May 2015 there were two changes to Protective claims operation effecting the management staff. First, Claims Manager, David Ghesquiere was recently promoted to Director of Claims.
Named after its creators Senator Paul Sarbanes and Representative Michael Oxley, the Sarbanes–Oxley Act of 2002 (SOX) was enacted on July 30, 2002 by President George W. Bush. .Sox is also known as the Public Company Accounting Reform and Investor Protection Act of 2002. It is widely known as the most significant reform since the formation of the Securities and Exchange Commission of 1943. Consequently major corporate scandals such as Enron, Worldcom and Tyco led to The Sarbanes Oxley Act. The act sets strict reforms to the financial practices and corporate governance of public corporations, accounting and management firms.
Sarbanes Oxley Act Sarbanes Oxley Act was instituted in 2002 as result of the financial scandals at the end of 1990’s and earlier 2000’s. The act was “named after Senator Paul Sarbanes and Representative Michael Oxley” (Soxlawcom, 2015). The act contains eleven titles. Basically, the purpose of the act was to improve corporate behavior across the country and to restore investor’s confidence in the market by placing accuracy and reliability of corporate disclosure and by imposing certain restrictions and actions in the audit process. There are different opinions throughout the country regarding the efficiency of the act.
Yet, with the recent proposed merger between FedEx and TNT Express, currently the third and fourth largest player, its market position may slide to the third in the market, according to the prediction of Reuters. The merger of FedEx and TNT would not only provide them with a greater client reach, but also more capacity for strategic pricing and united marketing effort in the light to make more attractive offerings and build a stronger brand. In addition, as the two have their transportation networks combined, it may prompt an improvement in their efficiency of leveraging distribution channels and hence a save in capital for further development. If that should apply, it would undoubtedly intensify the competition that UPS faces and threatens its market share. 4.2.
Specializes in documents that need to be to their destination quickly b) FedEx is an American corporation that provides shipping services of couriers. This Public Ltd Company has its network in all the major cities of the world. Founded in 1973 by Fredrick W Smith under the name Federal Express, the company came to be known as Fedex by 1998 and the company has its headquarters in Memphis, United States. FedEx provides fast courier services to its customers in order to retain its client base and to gain new customers. It has major competitors in DHL, UPS, USPS, and now
FedEx’s commitment to high-customer service reflected in its best- in-industry on-time reliability record, and its flexibility to offer customers in pickup and delivery
It is very hard to say that SOX would prevented the scandal but they would have being exposed sooner because of the Sarbanes-Oxley section and titles rules and regulation such as; Titles II the auditors partner rotation; Title III, the responsibility or reporting accurate financial corporate reports. They reported depreciation expenses of garbage trucks as a salvage values, and subjective to other assets that did not have any value. Title IV the financial disclosures of financial reports was overstated or understated in some reports to inflates a high profit margin. The Titles VIII, the alteration and destruction of records that would protect the
Another major CSR failure was the Enron Scandal in 2001. Initially to investors, Enron seemed like a lucrative opportunity with shares reaching $90.75 (Investopedia). However, CEO Jeff Skillings, in collaboration with top executives and the corrupt accounting firm of Arthur Andersen LLP, managed this feat by leaving debt and major company losses off of balance sheets or, in other words, perpetrating accounting fraud. Once the scandal was revealed to the public, stocks plummeted to under a dollar, and the company was forced to declare bankruptcy, severely damaging the portfolios of thousands of loyal investors and costing Enron employees their jobs. As a result, the Sarbane-Oxley Act was put into place to heighten the penalty for the fabrication of accounting documents.
There are several reasons that FedEx has been successful. The major reason is that they have a enviable corporate culture and workforce. Employee's are critical to the success of any company, especially at FedEx. The company tries to hire the best candidates and offers them what is considered the best training and compensation in their industry. In turn this causes their employees to be loyal as well as very efficient, and extremely effective in providing excellent customer service.
Chapter 1. Introduction The transportation, e-commerce and business services are very competitive and sensitive to price and quality of service. FedEx not only faces competitors from international companies that perhaps subsidized by foreign government, but also competes with regional companies that operate smaller but each has competitive advantage which would in turn reduce FedEx’s revenues and market share. For example, according to reuters.com.
Shishir Gyawali BUS 530 Managing Information Systems & Technology Westcliff University Professor: Dr. Marko Nino 6/11/016 Abstact: Breif summary of the case: FedEx corporation is a service based company that provides logistics service in all over the world. It was founded back in1971 A.D. as federal express, whereas later changed to FedEx in the beginning of 2000.
As stated in Principle 1, The Board of Directors directs the Group’s risk assessment, strategic planning, succession planning and financial and operational management to ensure that obligations to shareholders and other stakeholders are understood and met. The board of directors has a collective responsibility for the management of the group to make sure the group is on the way to approach to their objectives while the non-Executive Directors are responsible for bringing independent judgment and scrutiny to decisions taken by the Board of Directors and providing objective challenges to management. Besides, the board of directors also function as formalising and adopting a set of Code of Ethics through the Code of Conduct as Recommendation 1.3 as stated in the Malaysian Code on Corporate Governance 2012 to make sure its compliance, establishing an appropriate set of corporate disclosure policies and procedures and ensuring a whistleblowing mechanism is in place. The Board of Directors recognizes the importance of independence and objectivity in its decision making process. The Directors are professionals of high calibre and integrity and possess in-depth knowledge and experience of the business to enable them to discharge their duties effectively.