Quandary. Its November nineteen. Seventy four Memphis, a group of Fedex negative assert the saw mill, restaurant near the company's headquarters its, but my tradition to retire thereafter business hours to continue hashing out today's problems, and today there is a big one and executive leaned forward We might have to start turning down. Package's back ceo Red Smith, slams sport down on the table. Emphatically, no issue strike, isn't going to last forever and when it's over a whole bunch of customers are gonna, run right back to them while there with us. I want them to have the best experience possible plant that seed, That means we don't turn down a single package. Roger frock, the company's chief operating officer, looks at him pleadingly. Fred. We have to consider it. We,

physically can't fit anymore boxes on the plains and with every plain making double runs, we're barely making our deliveries with you. Pete drivers on strike in New York, customers have De Fedex, leading to a huge spike in business. The company used to average thirty thousand packages per month, but now thereon pace to hit three hundred thousand packages in November is strong Incapacity Brok, leaned forward trying to make sure Smith hears him if we our promise to customers and don't make our deliveries on time. That's much bigger problem than if we tell them our planes are sold. Our Smith shakes his head frustrated What we need are bigger. Planes agreed we're not going to change the law that, before you, BS wrap up. This strike in a few weeks higher airline industry is under strict government regulation and adding moods limits on how large cargo planes can be

We need a solution so that we can keep adding packages without missing our deliveries and obviously we can afford to buy more planes. I mean that would sink the whole company, an executive The end of the table looks up an idea coming to him The courier packs Brok looks at him confused courier packs or legal size envelopes for documents that better ships were a flat thee. They have offered. Since they launched a year and a half ago, but the service never took off what about them. We can finish more courier pacts on planes that we can't boxes. If we really started pushing them be a way to expand business without overtaxed our planes. Brok is unsure, but Smith likes the idea he snapped his fingers and points of the executive. I like it and when their people courier packs our delivery. Man don't need to go to the loading docks thing stride

do those office buildings in their staff. A uniforms we'll get some free, advertising to rocks, convinced it Fred likes it. Let's do it better ex aggressively pushes courier acts companies quickly become dependent on using overnight delivery to send documents from one branch to another. It's such a hit that some executives frustrated by how much money their employees are spending on the service. Nick naming it federal access. By the November New York, youth drivers or back at work as expected, Fedex his volume drops but the company is still shipping twice as many packages as they were before. The strike with x on more solid pudding. Smith decides it's time for the next challenge. Taking on the United States government.

You know I've worked in all sorts of environments from big companies to just me and an engineer, recording and tie sound booth, and why thing remains true through it. All success is not achieved by one person alone. It takes a team, nobody this better than Monday dot com, a project management platform that makes effective teamwork possible near or far right, Monday, dot, com your team together, wherever you are, they offer a flexible platform to manage any team price or workflow online, so you can know exactly where things stand at any time and look. We each have our own way to plan and run projects the great thing about Monday, dot com. You get multiple ways to view the progress of any project so well. Use a gap chart combine or spreadsheet lie tables Monday dot com has got you covered. I love the who would have inflexible interface? That ties my scheduling, email, critical contacts in Workflow altogether on one screen now, my projects are competing for time. Their helping me free

up time for myself, let Monday dot com care. What slow you down. So you can free up time to focus on the work the drives you to start your free for and a trial grim Monday dot com. From wondering. I'm David round This is business wars. In our last episode, FED Ex based or rocky beginning, frequently on the edge of ruin, but determination in a little luck. They met to hang on and reach financial stability. You bs, ignored, FED Ex convinced the company would fail fast declined to come

its new competitor and invest in its own plans? Instead it stuck to it. Tried and true strategy of expanding its ground service in the United States. The company also faced a labour force that was growing more and more unhappy, providing an opening for acts to move in on you piazzas turf, but in order to keep growing That acts is going to have to stand up to the, U S, government and you can Ass, realises it needs to change tactics and child each Fedex directly? This is episode. Three we're gonna need a bigger plain. Its nineteen seventy five, George Lamb, BP, for you PS, knocks on his colleagues door at the new company headquarters in Greenwich, Connecticut, a man strides in and hold up a copy of. The latest annual report read this. I take it. But I haven't started yet. What's on your mind,

in this whole report. There's not a single word about federal, Express lambs colleague, shrugs they're, not our competition. Besides, they'll be out of business. Soon, anyway, Lamb sits in the chair, I wouldn't be so sure about that. I read article about them in business. We just a few months ago, his colleague interruption. I saw that article wasn't a headline, something like federal, Express, takes a nosedive doesn't like we have a lot to worry about well of you read the article you'd know. The headline was very misleading, their delivering to over. Sixty cities now and customers are happy packages were arriving on time. The other executive shrugs still unimpressed, their service is expensive and most back just don't need to get somewhere overnight they have one corner of the market, but will have the rest. Lamb shakes his head frustrated. When people get Eustace Speed, it's hard for them to go back besides,

Business. We accept that in the past year they experienced the kind of growth that usually happens in three years. I think we need to watch out for this company. The exam it comes around four behind his desk in leans against the fraud George we're doing really. Well, We finally got approval to deliver in all forty eight states of the continental. U S I know you just got promoted the vice president and you want to make some moves, but We don't need to worry about this upstart lambs. Ex his head he's been. You bs, since nineteen fifty two when he said It is a shock work in Cincinnati, steadily worked his way up moving too quarters and nineteen seventy two and being named vice president last year. He stayed with the company, even after attending law school in passing the Ohio bar but cause he lived in it so much. This is not about ego we're being short sighted. His colleague trucks

I disagree low overhead is a foundational principle of Eu Ps, and you know planes are the opposite of low overhead. Makes its the office dissatisfied. He does understand why no one else see sped acts is a worthy rival. It has. The power to do anything about it now, but when he dies, he's gonna, make sure you PS can compete in overnight, delivery, business This massive book is the aviation active nineteen. Thirty eight this It's three hundred fifty pages of regulations its April night in seventy six Frenchman. Testifying in front of the House subcommittee on Aviation, which considering deregulating the airline industry, my cup He is being jeopardized not because low demand, not because any other.

Company is able to offer a better service for lower prices, not because of any legitimate reason the free market might jeopardize accompany. Now that I could accept those are the rule. To the game. I signed up the play no Company is being jeopardized because the United States government will not allow me to purchase larger planes. Bet axes. Steady growth is straining the capacity of their planes. Companies assigning two planes per night for certain routes. Even started trucking some packages to nearby destinations, but of these solutions. Are sustainable, Workarounds or cutting into type profit margins, the most efficient, way for them to handle the rising volume, would be to upgrade to bigger plans. The regulations won't allow it. You want to know what I think should be done with these regulations ripple ma the free market rule the air, the cheer

committee leaned forward and speaks into his MIKE, Thank you for that passionate testimony, Mr Smith. Smith walks. And meets up with the other Fedex executives who were watching in the gallery and executive collapses handled Psmith shoulder grinning. It was very dramatic Smith nods, but doesn't returned the smile We need to do more back in Memphis FED Ex begins in all our campaign to push deregulation verdicts Zack appear on talk, shows and meet with various legislative staffers to make their case They also organise grass roots support. Their sales force The phones reaching out to all forty thousand of their customers are putting a pamphlet. May I offer you right now that a lay it all out in more detail? I don't know if you ve heard, but out in Washington, DC their debating deregulating the airlines it would allow us to fly bigger, plain ship, more packages, and you know it.

Do more volume. We be able to lower prices just a little bit and on the other end of the phone, the customer chuckles, like the sound of that right. The problem is the bills getting a lot of pushed back from some unions in some other airlines that were granted exemptions, Bowser I don't want to lose their edge. Of course, they're calling this special interests legislation. Now he could really use all the support we can get. So if you could tell your representatives that you support this. It would be a big help to us. It will allow us to Better Serbia hour. I will see what we can do. We really appreciate it in Dc Fedex, his efforts are paying off. A male room worker knock on the door. Congressmen, Harold Ford Senior, a representative from Memphis mail One of Fort staffers opens the door and sees the cart overloaded with bags his eyes widened,

This offer us yet the two men unload the card in the staffer begins going through the stacks of letters, curious others. Members gather around and also start opening envelopes. After a moment, one looks up, Everyone I have opened is pushing for cargo plain deregulation line to the staff members exchange a look we'd better. Tell congressmen who knew this people cared about that axis campaign works in nineteen. Seventy seven President Jimmy Carter signs into law a bill that deregulate cargo planes better, can now set their own roots in fees and, most importantly, whatever size plane. They want the company immediately purchases, thirteen new planks larger than the ones they had been flying. Now they have

capacity to grow is April. Nineteen. Seventy eight and threats, and a handful of other Fedex executives, standing above the floor of the New York Stock Exchange, traders, yell and shout smith- watches with a content smile on his face. Finally, where public Smith had, we're taking the company public in eighteen. Seventy five but he ran into roadblocks with the banks, but now that airlines or deregulated everywhere feeling more bullish on Fedex his prospects, the executive next to it takes in his smile. I almost can't believe this is real, spent so long, I know, and if we make it from one day to the next and now look at us now we're here, he checks the tick trade at twenty four dollars. A share. It's unbelievable

arrays over eighteen million dollars. Today. Smith turns and looks at him a confused look on his face you had doubts. I never did executive shakes his head and disbelief regardless that this is a new era for Fedex. Thinking, stop is now agreed or planes more cities or profits but deregulation doesn't just change the landscape. Preferred acts it also makes it easier for you, bs to offer air delivery service, and there about to get a ceo who won't let Fedex fly Sola. We get support from zip recruiter during is challenging, especially with everything else you have to consider today. But there is one place you can

were hiring a simple fast in smart, a place where businesses can connect to qualified candidates. That place is zip, recruiter, dot, com, slash beat www, zip recruiter, send your job to over one hundred of the webs leading job sites, but they don't stop. There were their powerful matching technology, zipper scans. Thousands of resonates to find people with the right experience and actively invites them to apply to your job recruiter makes the whole hiring process efficient and effective with features like screen questions to filter candidate and all in one dashboard where you can review, and then Rachel candidates, in fact, zip recruiter, is so effective. There out of five employers who post on zip recruiter, get a quality candidate within the first day and right now to try zip recruiter for free is a listener business wars.

You can go to zip recruiter, dot com, Slash be W. That's zip, recruiter, dot com, Slash be W one more time: that's zip, recruiter, dot com, Slash be w, zip, recruiter, the smart wait a higher finding a new home that fits your family's needs can be tricky. You want room to spread out space to gather and a place to get away from it, Well, luckily, when you need a mortgage that fits your family's needs, a great place to look is rocket mortgage. You want to how a different down payment affect monthly payment. No problem, you can check out your loan options, adjust payments income in costs all online in real time. How helpful is that, when you need know what it takes for a home loan to future budget and your family rocket can that's because they provide the rules and expertise. You need to understand all your options and find out what works for you not shy, if you're ready to buy just yet will check

their online homebuyers guide for tips on where to start when you are, and neither letter who will help you understand all your mortgage options rocket. Can get started online at rocket mortgage dot. Com, slash business wars, call for cost information in conditions, equal housing, lender licence in office. In a less consumer access, dot, o orgy number thirty. Thirty. Its nineteen eighty Greenwich Connecticut. You be is board of directors is welcoming their new ceo. Chairman stands at the firm, the room, getting everyone's attention: I welcome our new CEO George Lamb, he's no stranger to Eu Bs, of course he's

the company almost thirty years, but he is our first ceo since Jim Casey himself to come up through operations instead of accounting. And, as we enter the last two decades of the twentieth century, leave. He will bring a new perspective that will benefit this company lamb. Hold up his hand in gratitude. Thank you for that warm welcome. I mixed to be at the helm and honour to be entrusted with its great brand after the toasts An executive cycles up to Lamb so given any thought to your first move. I'm going to buy some planes, the executive, cotton eyebrow and holds up his glass watch out federal, express indeed, Lamb Way, little time, buying his first plane in store.

Providing limited service, but to really compete with that uv S needs to open up its own hub, like the one FED eggs has in Memphis, its nineteen eighty one Louisville Kentucky young you PS, executive stands in the waiting area, anxiously scanning the crowd. Finally, he sees you he's looking for in waves, Mr Lamb, towards Lamb strides over thanks for picking me up the young executive, lambs bag and direction towards his car even though Lamb was Gunnar and the army are core during World war, two he hates to fly, always opts to either take a train or drive. The other birds of a team are already at the site. It's not far Lamb nods.

A little while later they arrive at the Louisville International Airport, where they meet up with the other executives who flew in an airport employee. Escort lamb and the others to a spot out between The two runways lie turns to the man. How much land is this here right between the runaways about five hundred the acres Sir Lamb nods. We could build a sizeable sorting centre here. The executives agree with him absolutely bigger than faxes. That's for sure, and low avail. A centrally located perfect spot for a hub well. This is looking like a good option. Gentlemen, as they head back inside, land decides to review the rest of their plans. And where are we with recruiting pilots in one a problem, sir. Now that past your planes no longer have to fly to smaller markets airline. You're cutting roots. A lot of pilots are losing their jobs, good, good,

Drive a hard bargain with them, they don't have leverage customers dont know us for overnight air service we're going to attract them by offering lower prices at prices that are at least thirty percent lower than FED axis closer to fifty sent ideally got it. Sir. Yes, moves at a slow and steady pace as it puts together it's over night air service, but Fedex knows that. Time is running out once there service is fully up and running, Fedex will need. To have an answer ready its one, eighty one Memphis a handful. Of executives are back at the saw mill. Restaurant have to assume that you be ass, is gonna aggressively undercutting prize and other executive size and frustration We are assuming that, question is how we respond It behoves us to get what price war we need

Outside the box now, what's another way we can distinguish ourselves I have an idea spade see Fred Smith and the other executives look at him well For him to elaborate establish that we deliver by noon. Right. Yes, but ass, the baseline for overnight delivery, you be, is gonna, be building their service. Based on that topic, now listen. What, if change your package delivery tat. What? If will deliver by eleven. I am or even ten thirty if we can swing it another Negative nodded his head thinking through this- would work- asked our logistics, what we could do it- and I would definitely give us a leg up. It wouldn't be: cheaper service, but we would be the better one, That's something! Marketing can really push the executive

the Smith, its ultimately here's decision in hot, so good idea. Let's do it. The executive, who came up with a plan grams its high praise from Smith Smith still seems distracted? executive, leaned forward wrinkling, his brow, Did you have another idea? Smith turns to him I'm to expand let's move into Europe. The other executives surprised. Europe's major cities, are so much closer together than America's, so trucks can deliver packages overnight. Its clear how much market advantage FED Ex will gain offering air shipping there, but Smith looks confident and they trust him little. Does he know what a tough market Europe will be to crack on the next day.

So you PS fully launches its next day air service bringing the company's head to head for the first time, and they both heat for the european Market plus Fred Smith makes a rare misstep with a new service. Setting back the company from wondering This is episode three Fedex versus you, PS for business. Worse, if you like our show, please give us a five star rating in a review and be sure to Your friends subscribe, we'll podcast Spotify the wondering ABBA, wherever you're listening right now and make sure to join, wondering plus a wondering at to listen at Bree so find some links and offers from our sponsors and the episode notes. Supporting them helps us keep offering our shows for free another way you can. Port. The show is, by filling out a small survey, wondering dot com, slash survey and tell us which The stories you'd like to hear a quick note about

recreations you ve been hearing. In most cases, we can't no exact. What was said those scenes are dramatization but based on historical research like to learn more about you PS. We recommend big Brown by Gregg Niemann, I'm your host David Brown, Austin, reckless, this story, Karen Low is our senior producer and editor and it used by Emily Frost, sounded by Kyle, Randal, our eggs, producers are Jenny. Lauer Beckmann and martial doing created or not Lopez for wondering Silvio Berlusconi was a real estate mogul turned billionaire Playboy, with a scandal ridden track record a mile long every.

Just assumed that when he decided to run for office that it was a stunt, no one ever thought he could actually, when but Berlusconi's wealth, charisma and control over the media made him one of the most influential men in the world until three women and two words brought him down longer. Bum the maize man I wouldn't, Thanks and my new eight part, many serious bona bungler is available on September eighth on Apple podcast, or you can listen right now at free by joining wondering plus in the wondering app