Set in July 1995, this event invites students to assess the financial performance of Federal Express and United Parcel Service, the two closest competitors in the U.S. overnight express package delivery industry. Although the case does not require numerical calculations, is to ask students to interpret the results and to think about the consequences. Contrasting the financial statements of both companies to afford a platform to study a number of important issues, including: (1) the definition and use of "economic value added» (EVA) as a measure of corporate performance, (2) Comparison with other classical approaches EVA historical performance analysis (3) implementation of skills in the business segment analysis, and (4) the study of the financial impact of intense competition and corporate restructuring, and (5) the definition of "skill" of the corporate finance perspective. "Hide
by Robert F. Bruner, Derick Bulkley Source: Darden School of Business 33 pages. Publication Date: August 9, 1995. Prod. #: UV2384-PDF-ENG