1)Airborne's performance from 1986-1997 can be described as dismal. Throughout the period the company managed to remain profitable every year, but they underperformed the McGahan averages. Airborne averaged 1.72% ROS (including 1997, which was an outlier for this set), 2.46% ROA, and 9.34% ROE. This was compared to the ROS, ROA, and ROE of 4.7%, 5.9%, and 12.6%, respectively. Airborne also had lower margins than its competitors, FedEx and UPS, so it can be inferred that Airborne's performance is poor not just …
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showed last 75 words of 1544 total
…UPS than FedEx, and UPS is the only one of the three companies with acceptable performance indicators. All in all, I recommend that Airborne stay with a low-cost strategy, but they should use the relationship with RPS to get some more customers and raise their poor margins. As it stands the company is not doing well, and this could be what they need to finally get the company to earning a decent profit. WORD COUNT: 1564