In the recent years, the urge of owning up a business as compared to be in a formal employment has drastically increased. This has resulted from reduced employment chances in industries, government offices, and Non-governmental organisation among other notable organisations. To most of up coming entrepreneurs, they face the challenge of lack of capital, reduced levels of knowhow and increased competitions from well-established firms. Ebbena & Johnson defines entrepreneurs as risk takers who are innovative and see the world a bit differently from others and customers are their own bosses. One of the most successful companies, which started from humble grounds and later conquered the global market, known as FedRex Worldwide Courier Inc (FWC). The company headquarters is in Pretoria, South Africa and headed by Peter Nguish as the firms CEO. In order to understand the operations of FedRex Worldwide Courier Inc, I carried out an interview with the firms CEO.
What size is your business?
My business is big in terms of daily deliveries across the globe, capital base, employees and annual revenues. For instances, FWC has branches in over 60 countries in different parts of the world and is listed in the Fortune 1000
How many employees are there?
I have more than 500 employees across the globe, although 40% of these employees are African continent, as it served as the domestic market, before going global.
Why did you decide to go into business for yourself?
The main reason for undertaking this venture by my self is the fact that, most of people whom I approached to collaborate with refused to do so, as they viewed this as a risky venture. For most of the courier services started in South Africa, 60% of them end up collapsing due to lack of adequate strategic planning.
How many years have you been in business?
I have been in business for eleven years, four in the domestic market and the rest in international markets.
What is the main product or service that you sell?
FedRex Worldwide Courier Inc is service industry running programs such as FedRex Express, which the largest segment, FedRex Ground, FedEx Express, which the largest segment, FedEx Ground, FedEx Freight, FedEx Custom Critical among other smaller segments, FedRex Custom Critical among other smaller segments. For instance, FedRex Ground deals with all ground deliveries, while FedRex Freight deals with all air deliveries.
Who was your first client?
My first customer was South African government, who gave me tender to transport building material from Johannesburg to Pretoria.
Who are your customers?
Due to the fact that FedRex Worldwide Courier Inc is a global firm, I have clients from all regions, but 60% of customers are mainly government institutions. Currently am delivering different merchandises to more than 16 government institutions in countries such as Brazil, Kenya, Britain, Chile, and Canada among others. To these government institutions, construction materials are the main products I deliver to them as they are mostly in developing economies.
An overview of the business and the owner
FedRex Worldwide Courier Inc is one of the most successful courier companies in the 21st century. The firm has adopted the right strategic planning aspects, such as staffing and customer services, all of which has helped the firm to conquer the international markets. The CEO has employed managerial methods, thus motivating the employees and enabling the firm to integrate with community it serves. One of the connections between the owner and business profile is focus on business enlargement to international markets, thus more profitability levels. I was surprised by the owner’s background due to its large presence in more than 60 countries globally, despite its humble background in Pretoria. This analysis is a clear indicator that of the fact that, entrepreneurs should be ready to take risk on business ventures they may wish to get in to. Through strategic planning, entrepreneurs to achieve the expected results, despite the prevailing market condition.
2. Owner profile
Do you enjoy working for yourself? Why?
I really enjoy working by working by my self. The main reason for this is the fact that, I can make quick decisions regarding the business, thus averting any possible managerial crises that may take place.
What are two advantages of owning your own business?
One of the main advantages of owning the business was the few legal requirements, which was required at the initial stage as compared to if the business was a form of partnership. Further, I enjoy all the profits made by the company.
What are two disadvantages of owning your own business?
One of the main disadvantages facing the firm is the fact that all decision making mostly rest on my shoulders as the business owner. Further, incur all looses made by the firm.
How did you prepare for your business? Did you receive specific training or a degree?
In order to start the business, I approached financial institutions such as Investec Bank Limited, Sasfin Bank Limited among other notable institutions for financial advice. They gave me ideas on how to write and prepare a business proposal, which was vital for staring the business.
How do you stay current with innovations and technologies in your industry and for your business?
To stay competitive, both in the domestic and international markets, my business have adopted modern technologies such as location merchandise through online process. Further, the firm is using contemporary means of marketing through social networking sites such as Twitter, Face book among others.