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Yellow Roadway Corporation. 2004 Case Study. Overview. Possible alternative strategies Our Recommendation Strategies Long range objectives EPS/EBIT Implementation Issues Proposed annual objectives (goal) and policies Proposed procedures for evaluation Epilogue Resources Utilized

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Overview
Overview

  • Possible alternative strategies

  • Our Recommendation

    • Strategies

    • Long range objectives

    • EPS/EBIT

  • Implementation Issues

  • Proposed annual objectives (goal) and policies

  • Proposed procedures for evaluation

  • Epilogue

  • Resources Utilized

  • Questions

  • Overview of the Trucking Industry

  • A brief history of Yellow Roadway Corporation

  • EOY 2006

    • Mission, Vision, Objectives, Strategies

  • 2007

    • New Vision and Mission

  • External Analysis

    • Opportunities & Threats

    • CPM

    • EFE

  • Internal Analysis

    • Financial Data

    • Strengths and weaknesses

    • IFE

    • Financial ratios

    • Financial trending

  • Strategic Analysis

    • SWOT Matrix

    • SPACE

    • BCG

    • IE matrix

    • Grand Strategy Matrix

    • Matrix Analysis

    • QSPM


Brief history of the trucking industry

1911-1912 - Trucks first travel coast to coast. The trip takes 46 days

1921 - The Federal Aid Highway Program requires state highway

departments to identify a system of connecting rural roads.

1930s - U.S. Route 66, the first true highway, is built

1933 - The American Trucking Association is created

1950s - General Motors, Ford, and Dodge introduce diesel trucks

1956 - Federal legislation calls for creation of 41,000 miles of

improved interstate highways.

1970 - Hollywood and songwriters focus on truckers with box office

successes such as Smokey and the Bandit, Every Which Way but

Loose, and White Line Fever

1980 - The Motor Carrier Act deregulates the industry

1982 - The Surface Transportation Act allows for longer combination

vehicles and uniform weights

Brief History of the Trucking Industry


History of yellow roadway corp yellow

1924: A.J. Harrell founded Yellow Cab and Transit Co. in Oklahoma City, primarily as a bus and taxi company serving central Oklahoma. The company added intrastate shipping to its services in 1926 and shortened its name to Yellow Transit Co.

1944: Harrell sold the shipping operations to a New York-based investment group headed by New York financier Arlington W. Porter. Yellow changed its name to Yellow Transit Freight Lines, Inc.

1952: George E. Powell, Sr., of Kansas City and an ownership group that included Powell's son, George E. Powell, Jr., and Roy Freuhauf, owner of the Freuhauf Trailer Co., acquired the company. In one year, the Powell family brought the company from near-bankruptcy to profitable growth.

1965: Yellow acquired Watson-Wilson Transportation System, making the company a transcontinental carrier with routes extending from the Midwest to the Atlantic and Pacific coasts. The acquisition allowed Yellow to add more than 21,000 miles of authorized routes and begin serving 10 more states.

1968: Watson-Wilson merged into Yellow, and Yellow's name changed to Yellow Freight System, Inc.

History of Yellow Roadway Corp. (Yellow)


History of yellow roadway corp yellow1
History of Yellow Roadway Corp. (Yellow)

1972: Yellow acquired Adley Corp. and principal subsidiary Adley Express Co., providing operating rights along the Eastern Seaboard north to Quebec and south to Georgia. The acquisition allowed Yellow to extend service into five states.

1975: Yellow bought all Republic Freight System, Inc., outstanding stock. The rights Yellow acquired from Republic allowed Yellow to expand into the Northwest, giving Yellow true service coverage throughout the 48 contiguous states.

1977: Yellow and Braswell Motor Freight Lines company owners agreed to allow Yellow to buy all Braswell capital stock. This acquisition gave Yellow additional coverage throughout the sunbelt states from Georgia to California.

1980: Congress passed the Motor Carrier Act, deregulating the interstate trucking industry. Yellow opened 13 general shipping service centers, bringing the total to 248.

1981: Yellow opened 88 new service centers, converting its operations to an all-new, hub-and-spoke shipment-flow system with each of the 17 hubs being a consolidation and distribution point for a specific territory.

5


History of yellow roadway corp yellow2
History of Yellow Roadway Corp. (Yellow)

1982: The hub-and-spoke system provided the base for a rapid increase in the service center network. At the end of the year, Yellow had 377 service centers, providing direct service to 48 of the 50 states.

1984: Yellow opened 71 service centers, bringing the number of centers to 508.

1985: Yellow acquired RBS Enterprises, Inc., to expand service between the United States and  Ontario, Canada. RBS and its subsidiaries included International Carriers, Inc., which had operations in the United States and Canada. The acquisition significantly increased the presence of Yellow in Ontario and Quebec.

1986: Yellow acquired Custom Courier Services, Ltd., which it renamed Yellow Freight System of British Columbia, Inc., to expand service into British Columbia. At year-end 1986, Yellow served more than 650 points in Canada and had 599 service centers.

1992: Yellow launched less-than-container-load service to Europe.

1994: The effects of federal and state deregulation, combined with industry overcapacity and intense price competition began to send Yellow's profitability on a slow, downward spiral. 


History of yellow roadway corp yellow3
History of Yellow Roadway Corp. (Yellow)

1995: Continuing to expand, Yellow entered the Asia/Pacific market with services to and from Hong Kong, Singapore and Thailand.

1996: The Yellow board hired A. Maurice Myers as Yellow Corp. president, chairman and chief executive officer  in April. In September, Yellow hired William Zollars as Yellow Freight System president. Together, Myers and Zollars began improving the company's performance almost immediately.

1997: Yellow had an operating ratio of 96.5. Yellow realigned its organization into five, regionally-based business units to enhance operating flexibility and provide customized services. The company created more than 400 new driver-sleeper teams and expanded service into South and Central America.

1998: Yellow and the Teamsters reached agreement on a new, 5-year contract 7 weeks before the 1994 National Master Freight Agreement expired. The first, 5-year contract in industry history was ratified by 70 percent of Teamsters in April. Midyear, Yellow introduced an integrated ground and air transportation service, Exact Express®, to broaden its services.

1999: Yellow celebrated 75 years of service on New Year's Eve with Yellow expecting to be a new company for a new century. Before the year was over Bill Zollars was named Chairman, President and CEO of Yellow Corp.

7


History of yellow roadway corp yellow4
History of Yellow Roadway Corp. (Yellow)

2000: James Welch became the new president and chief operating officer of Yellow. The company celebrated one of its strongest performances in its 76-year history, boasting operating revenue at a record $2.8 billion.

2001: Yellow received ISO 9000:2001 certification, becoming the first transportation services provider to receive the new classification under the International Organization for Standardization for continuous quality improvement. Yellow expanded Standard Ground Regional Advantage—the company's best-in-class, 2- and 3-day regional service. Almost 70 percent of all shipments would now deliver in 3 days or less, a 12 percent improvement over the previous 2 years.

2002: Yellow Freight System, Inc., changed its name to Yellow Transportation, Inc., to reflect the company's transformation to a full-service global transportation provider. The company reorganized into 15 areas to move decision-makers closer to customers. Yellow international operations announced an alliance with 12 European transportation providers.

2003: Yellow acquired Roadway Corp. to become Yellow Roadway Corp.

8


Yellow s subsidiaries

Roadway Express - provides seamless transportation throughout Canada, Mexico, and the U.S., and services for markets worldwide. A leading transporter of industrial, commercial, and retail goods, Roadway adds value to global supply chains through innovative combinations of network resources, capabilities, and technologies to customize services.

Reimer Express - is a leading Canadian provider of industrial, retail, and commercial transportation services. Through integration of network and information systems with Roadway, Reimer Express provides seamless service between Canada, Mexico, the U.S., and global markets.

YRC Regional Transportation – is comprised of USF and New Penn Motor Express and delivers nationwide service in the next-day , second-day, and time-sensitive markets, which are among the fastest-growing transportation segments.

New Penn Motor Express - is a YRC Regional Transportation company providing superior regional, next-day ground services through a network spanning the Northeastern United States, Quebec, Canada and Puerto Rico. New Penn is considered an industry leader in tracking technologies and Internet-based shipping services.

USF Holland - is a YRC Regional Transportation company offering services throughout the Central and Midwestern United States and Eastern Canada. USF Holland makes claim-free deliveries a top priority, and its on-time performance has long been considered an industry standard.

Yellow’s Subsidiaries



Logistics centers
Logistics Centers

To manage your existing international shipments, please contact the YRC Logistics Global Logistics Center in your region.


Yellow s subsidiaries1
Yellow’s Subsidiaries

USF Reddaway - is a YRC Regional Transportation company operating a network across the Western United States and Canada. The company provides guaranteed delivery of time-sensitive shipments, a user-friendly Internet-based transportation management system, and streamlined customs procedures.

USF Bestway – moves goods in a 5-state area of the Pacific Southwest and serves all major getaways to Mexico

USF Glen Moore - is one of the fastest-growing providers of customized truckload van services in North America, offering a full range of transportation services.

Meridian IQ – plans and coordinates the movement of goods throughout the world by offering flexible logistics solutions supported by technology and management.

YRC Enterprise Services and Yellow Roadway Technologies - global logistics management company, coordinates the movement of goods worldwide across multiple modes of the global supply chain. YRC Logistics helps businesses automate and improve shipment planning, optimization, administration, and overall supply-chain processes while connecting more efficiently with clients, their suppliers and the final consumer.

12


Yellow s vision
Yellow’s Vision

Yellow will be the leading provider of guaranteed, time-definite, defect-free, hassle-free transportation for business consumers worldwide.

13



2004 core values

  • Exceed customer expectations and information .

  • Value our people

  • Work safely

  • Demonstrate good citizenship

  • Act with integrity

  • Embrace teamwork

2004 Core Values


2004 strategies

  • Concentrate on gaining cost and purchasing synergies from its recent mergers before embarking on something new

  • “Making global commerce work”

  • Focus on overnight and next day markets

  • Become a stronger competitor to integrated transportation providers such as UPS and FedEx

  • Acquire Overnight Transportation (9th largest) for $1.25 billion in the summer of 2005

  • Offer overnight service

2004 Strategies


2004 objectives
2004 Objectives its recent mergers before embarking on something new

  • Reduce cost base by 100 million run rate

  • Pay down debt and strengthen financial position

  • Grow all of our brands following the acquisition of Roadway

  • Continue to look for acquisitions that complement our strategy, contribute to our financial performance, and help us tap opportunities for employees, customers and investors.


2004 issues

Rising fuel costs its recent mergers before embarking on something new

Driver turnover and shortages

Decreasing manufacturing activity in the United States

Decreasing customer spending

Increases in contractual wages and benefits and purchased transportation rates

2004 Issues


Yellow s vision1
Yellow’s Vision its recent mergers before embarking on something new

Yellow will be the leading provider of guaranteed, time-definite, defect-free, hassle-free transportation for consumers worldwide.

19


A new mission

Yellow’s mission is to provide international transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)

A New Mission


A new mission1

  • The new mission answers the following questions transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)

  • Customers: Who are the firm’s customers?

  • Products or services: What are the firm’s major products?

  • Markets: Geographically, where does the firm compete?

  • Technology: Is the firm technologically current?

  • Concern for survival, growth, and profitability: Is the firm committed to growth and financial soundness?

  • Philosophy: What are the basic beliefs, values, aspirations, and ethical priorities of the firm?

  • Self-concept: What is the firm’s distinctive competence or major competitive advantage?

  • Concern for public image: Is the firm responsive to social, community, and environmental concerns?

  • Concern for employees: Are employees a valuable asset of the firm?

A New Mission


External audit opportunities

Trucking industry expected to grow significantly transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)

Acquire FedEx/UPS/DHL market share

Global market

Position to be a regional carrier by the Roadway merger

Increase in rail/intermodel and air transport tonnages

External Audit: Opportunities


External audit threats

Alternate forms of transportation/shipping transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)

Shortage of long haul drivers

High fuel prices

Increased regulation of working hours for truck drivers

Increase in the number of toll road and rates on existing ones

Competition

Antitrust

External Audit: Threats


Competitive profile matrix
Competitive Profile Matrix transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)


External factor evaluation matrix
External Factor Evaluation Matrix transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)


Net worth december 31 2004 in thousands of dollars except per share
Net Worth transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)(December 31, 2004, in Thousands of Dollars Except Per Share)

*Stock price is based on a closing price at 12/31/2004 from finance.yahoo.com


Consolidated balance sheet
Consolidated Balance Sheet transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)


Consolidated balance sheet1
Consolidated Balance Sheet transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)


Consolidated statement of operations
Consolidated Statement of Operations transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)


Consolidated statement of operations1
Consolidated Statement of Operations transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)


Internal audit strengths

Large scale of operation transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)

Operating leverage

#3 ground transport provider

#1 single LTL (less-than-truckload) provider

Wide range of assets and non assets

Ranked #1 “America’s Most Admired Companies” by Fortune for 3 consecutive years in early 2000s

Joint venture with China’s conglomerate (Jin Jiang)

Cost and purchasing synergies by merger

Internal Audit: Strengths


Internal audit weaknesses

High driver turnover and driver shortages transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)

Various brand names resulting in decreased name recognition

Low operating margin

High wages paid to Teamster drivers

$12 million increase in claims and insurance accruals

Increase in multi-employer health, welfare and pension plans

Lost productivity from unused capital (underutilized trucks)

15 % overlap of customers by the Yellow-Roadway merger

Internal Audit: Weaknesses


Internal factor evaluation matrix
Internal Factor Evaluation Matrix transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)


Financial ratios time comparison
Financial Ratios: Time Comparison transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)


Financial ratios competitor comparison
Financial Ratios: Competitor Comparison transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)


Financial ratios industry comparison
Financial Ratios: Industry Comparison transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)


Financial trends december 1998 december 2004
Financial Trends transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)(December 1998 - December 2004)


Yellow stock performance
Yellow Stock Performance transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)

Source: moneycentral.msn.com

Dividends ( )


Swot matrix
SWOT Matrix transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)


Space matrix
Space Matrix transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)


Space matrix1
Space Matrix transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)

Yellow has achieved moderate competitive advantages and financial strength in a growing and stable industry.


BCG transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)


BCG transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)


Grand strategy matrix

Quadrant I transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)

Market development

Market penetration

Product development

Forward integration

Backward integration

Horizontal integration

Related diversification

Grand Strategy Matrix


Ie matrix
IE Matrix transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)


Ie matrix1
IE Matrix transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)


Matrix analysis
Matrix Analysis transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)


QSPM transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)


QSPM transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)


Possible alternative strategies

Market Development: transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)We can look to increase more hauls over North America increasing the amount of deliveries that will be made.

Market Penetration: Go after UPS, Fed Ex market share

Product Development: If the logging goes through than we can look to buy chip trailers to haul wood chips.

Possible alternative Strategies


1 st recommendation

Acquire Conway transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)

Acquire trucking company Conway

By acquiring Conway, this will give us a greater presence in US and North America. This will also give us a presence in Asia/Pacific, Europe, South America, and the Caribbean. By acquiring Conway, we will also be acquiring more than 500 operating locations across North America and additional services to 17 countries across 5 continents.

Estimated Cost: $200,000,000

1st Recommendation


2 nd recommendation

Buying Logging Trucks transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)

We will buy 50 new Tractor trailer trucks and 50 new logging trailers

We will take 50 of the older trucks and use them to haul wood out west. The 50 new trucks will take the place of the old 50 trucks that will be hauling wood out west.

We should be able to find drivers easily as they will only be hauling for short distances.

Estimated Cost: approximately $10,000,000

2nd Recommendation


3rd recommendation

Driver Retention transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)

We will be increasing the load size, and combining the number of loads being delivered to one area (using triple trailers where it’s possible) will decrease the number of trips that will be made.

Maximizing current truck loads to full capacity will improve time management, and improve worker productivity.

In order to satisfy the needs of our drivers, closer relationships with unions will be established, and outsource insurance and other benefits. This will help us satisfy our current work force, and help attract potential drivers.

Estimated Cost: approximately $2,000,000

3rd Recommendation


Eps ebit
EPS/EBIT transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)


Eps ebit1

In Millions transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)

EPS/EBIT


Implementation issues

  • Would need to form contracts would logging outfits. transportation for express and standard deliveries for businesses and customers of all sizes. (1,2,3,7) We are willing to meet a variety of needs that may be specified by our customers. (1,7) We pride ourselves in our innovative logistics program which makes sure that the most knowledgeable employee for each individual industry is assigned to the appropriate transactions. (2,4,7) Yellow is constantly looking to expand in any and all profitable areas of the industry internationally to benefit our shareholders. (3,5) We provide our employees with exceptional benefits to show our appreciation of their hard work and dedication. (9) We aim to exceed customer expectations, value our people, work safely, demonstrate good citizenship, act with integrity, and embrace teamwork (6,8,9)

  • Rapidly increasing fuel prices

  • Difficulties recruiting drivers

  • Regulations specific to the logging industry and expansions (buying out Conway)

  • Environmental issues and regulations

  • Hostile takeover

    • Hesitancy of Conway to sell

Implementation Issues


Proposed annual objectives and policies

Increase operating revenue by 100% annually for the next 3 years

1st year 25%, 2nd year 25%, 3rd year 50%

Assign each subsidiary a goal to achieve gains

Reduce operating expenses by 20% annually for the next 3 years

Better loading management

Better time management

Improve worker productivity

Work closely with unions

Provide functional improvements to transportation management systems

Provide adequate funding to R&D and adaptation of information technology

Assign technicians to further develop the management system

Proposed Annual Objectives and Policies


Proposed procedures for evaluation

Check current industry information years

Traffic World

Logistics Today

Monthly reports from subsidiaries

Quarterly & annual financial reports

Quarterly & annual meetings to evaluate current plan and respond necessary changes

Proposed Procedures For Evaluation


Current stock performance
Current Stock Performance years

www.moneycentral.msn.com


Epilogue

2005: years Yellow Roadway Corp. acquired USF, which it has subsequently renamed YRC Regional Transportation.

2006: Yellow Roadway Corp. changed its name to YRC Worldwide Inc. to better reflect its capabilities today as a global entity, and to be consistent with its continuing aspirations and core purpose: Making global commerce work by connecting people, places and information. Included in global services are:

Supply chain, distribution and transportation management

Transportation services

Global resource for U.S.-focused operating companies

Technology services

Operations in more than 70 countries worldwide

Offices in North America, South America, Europe and Asia

2007: Jan. 31: James Welch resigns as president and chief executive officer of Yellow Transportation; Maynard F. Skarka is named new president.

2008: March 31: Maynard Skarka retires as president of Yellow Transportation; Michael J. Smid is named new president.

Epilogue


Resources
Resources years

YellowRoadway.com

MyYellow.com

Yellow Roadway’s 2004 10k

www.truckpaper.com/listings/forsale/list.asp?bcatid=28&catid=17&ParentCategoryID=28&pdcl=1

www.selectyourtruckdeal.com/About-Me.htm


Questions

? years

Questions