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After some analysis, it is clear that Heinz Adam, director of marketing administration, should direct Federal Express management to target potential users of Courier Pak delivery, in order to exploit unfulfilled potential in the emergency service department. Here’s why:
1. PROFIT MARGIN.
Of the three services offered by Federal Express in 1976 (Priority-One, Standard Air, and Courier Pack), Courier Pack exhibited the highest percentage of profit margin.
The Courier Pack earned a 66 percent margin per unit, based on a flat price of $12.50 per unit, and variable unit costs of $4.25. Comparatively, FedEx’s Priority One service generated a 54...
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Common topics in this essay:
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