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UNT DSCI 3710 - FedExOfficePRoject

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Boluwatife AkinbayoProfessor SuberMktg 30105 October 2016FedEx Office ProjectRelevant FactsIn This particular scenario of the FedEx office and Protrain sales call there are quite a few relevant facts that need to be stated. Protrain is a training service company. In a nutshell they train people for a variety of tasks and positions. Printed materials, disks, and other ancillaries are often a key component to their training sessions. They currently seem fairly understaffed. There have been quite a few instances in the past where delays, and mix-ups have hurt not only their brand reputation, but also their revenue. FedEx office is a company that serves corporations with needs that are similar to protrain. FedEx office basically brings together the worlds of parcel transport, data processing, and document printing. They are extremely efficient at “disseminating data to users.” a perfect example of this is how they copy package and ship training manuals to hospitals owned by trinity health group.Identified Problems Within this scenario one can see a multitude of problems. Firstly, Mr.Defore confesses that several clients have been cancelling orders because of delays. Obviously anything in the realm of cancellations can be a serious issue. Secondly, the protrain office staff are aging and becoming less and less capable of handling printing duties effectively. This can lead to a disaster being that majority of Protrain’s services require printed materials. Thirdly, there is a competitor by the name of InStruct that has been taking Protrain clients and contractors by offering better support. The fourth problem that was identified is that Protrain is reducing price torespond to its decline in sales.Implications of the problems To follow the problems listed above there are four separate and equally detrimental implications inthis case. Firstly clients cancelling orders directly impacts revenue. If a client cancels an order when the process of creating materials for that training session is already in motion: the time, effort, and supplies that went into creating them would have gone to waste. Secondly, if the office staff are too precluded with other issues in their lives and cannot effectively handle printing duties there are a number of things that could go wrong. All of which would have a negative impact on Protrain’s reputation. Reputation is an intangible asset that all companies should protect as if it were a sacred artifact. A perfect example of this was the mix up between the materials for MD Anderson, and Texas A&M university . Regardless of whether or not the clients understood the irony in the situation it's a negative reflection of the company. Thirdly If InStruct continues to best Protrain in support and revenue for contractors it will only be a matter of time before Protrain starts losing contractors and clients by the masses. It's not difficult to understand that without contract trainers or clients Protrain would have to go out of business. The fourth implication isthat Protrain's reduced prices to respond to declining sales can only come back to hurt them. People often associate a higher price with a higher quality product and vice versa for a lower price. A reduction in prices also means a decrease in revenue along with a possible decrease in full time employee salary, andwhat they can afford to pay contract trainers. Potential Seller Solutions To Buyers Problems The services that FedEx Office offers can solve nearly all of Protrain’s problems. Firstly there would no longer be any cancellations as a result from delayed materials. Fedex office can ship to any location that can be reached by road therefore materials can be shipped directly to the training site days before training even begins. Secondly as far as the Protrain office staff thatstruggle to handle printing and organization duties effectively, FedEx office specializes inprinting and preparing document materials. The office staff would no longer have to worry about that aspect of training. Thirdly this magnitude of support far exceeds the previous system. The services that Fedex office offers will help to make the process of training much smoother for contractors. Ultimately if the contractors are happy with this level of support the risk of them leaving Protrain to go work for the competitor is greatly reduced. Fourthly FedEx office presents a multitude of capabilities. Such capabilities provide a lot of financial flexibility to protrain. If they desired they could certainly increase their prices because FedEx office brings an added dimension of value to their service. FedEx office also gives them the flexibility to lay off some employees that would otherwise handle printing and document preparation. Doing so would allow them to retain the salary and benefits that would have otherwise been paid to such employees. Benefits of the potential solutions Among the many benefits Protrain would enjoy from implementing the solutions listed above hereare a few. Firstly having training materials delivered to training sites days before training sessions would completely eradicate any possibility of cancellations from delays. This guarantees that there will be a monetary return on nearly every single order that has been initiated. Im sure that Protrain’s revenue stands to benefit from this as well. Secondly when all printing and document preparation is handled by FedEx office staff it allows the employees that previously handled those responsibilities to concentrate on more important areas of the business such as scheduling training sessions, and recruiting top of the line contract trainers. Thirdly, with this level of trainer support ProTrain only stands to gain more high caliber trainers as word of mouth concerning the positive experience of working with them spreads. Having more high caliber contract trainers only stands to positively influence Protrain’s reputation. Fourthly if Protrain could increase their prices back to what they were, and provide the high quality training to match, not onlydoes the perceived value of their services increase, so will their revenue. The objective of any corporationis to generate revenue and when Protrain is generating revenue in surplus the possibility of ever going outof business disappears from the equation.Assumptions I assumed that when he said “ProTrain changed its pricing in 2015 in response to declining sales”It meant that they


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UNT DSCI 3710 - FedExOfficePRoject

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