Survival depends on how you transform to fit your environment
March 14th, 2011
Fred Smith, the man who founded Federal Express in 1971, is a classic example of someone who built a successful company by being responsive to changes in customers’ expectations and in the business environment. FedEx originally started as an idea in a term paper that Smith wrote for an economics class in 1965, while he was still an undergraduate at Yale University. His premise: as productivity increases with the use of machinery, breakdowns in equipment can easily destroy any efficiency and profitability. Therefore, a system needs to be developed to ensure that organizations have rapid access to spare parts and materials as they are needed. With this as a starting point, in 1973, Smith created the now-famous hub-and-spoke-system with his “hub” in Memphis, Tennessee. Success followed, but the world began to shift more towards a knowledge-based economy. Read the rest of this entry »



