...Centennial College School Of Business Assignment # 3 FedEx Corporation MGMT 704 (Sec 101) Management and Leadership FedEx Corporation FedEx Corporation is a global courier service provider company based in Memphis, Tennessee. FedEx offers its businesses and customers operating globally with a wide prospective of transportation services, logistics and supply-chain solutions and e-commerce. FedEx mission statement states that they will strive to gain huge returns for their shareholders by offering exceptional transportation services and other business solutions. They endeavor to develop and maintain a mutually gratifying relationship with their employees, suppliers and customers. FedEx is consistently ranked among the top companies of the world and have a strong foothold in transportation industry. FedEx Corporation is committed to constant improvement to match the predefined standards and regulations in terms of consistency and accuracy of thoughts and analysis. FedEx focuses on creating a prototype organization which is similar to the quality management. They have created a management system under which every employee is tasked with innovation and new challenges at their day-to-day activity. But one team exclusively works on experimenting and developing future game-changing prospects. FedEx have setup their own institute of technology where they take on a detailed research on science, business and transportation industry at University of Memphis. This facility...
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...TABLE OF CONTENT 1.0 Introduction 2 2.0 Measurement of Success 2 3.0 Reasons Behind FedEx Corporation’s Success 4 3.1 Excellent and Leading Service Quality 4 3.2 Effective Employee Management 4 3.3 Intended Acquisition Strategy 5 3.4 Sustained Innovation 5 3.5 Global Reach and Further Expansion 5 3.6 Pursuance of International Market Dominance 5 4.0 Justification of FedEx Corp. Success 6 4.1 Value Chain Framework 6 4.1.1 Support Activities 6 4.1.2 Primary Activities 7 4.2 VRIN Framework 7 4.2.1 Value 7 4.2.2 Rarity 8 4.2.3 Inimitability 8 4.2.4 Non – Substitutability 9 4.3 International Strategy 9 5.0 Contribution of Leadership 11 5.1 Traits Theory of Leadership 11 5.2 4E’s of Leadership 11 5.1.1 Envision 11 5.1.2 Enable 12 5.1.3 Empower 12 5.1.4 Energise 12 6.0 Challenge for Future Success 13 6.1 Intense Competition 13 Reference List 14 LIST OF FIGURES Figure 2.1: Annual Financials of FedEx Corp…….……………………………………………………………………2 Figure 2.2: FedEx Market Share…………………………………………………………………………………………….3 Figure 2.3: Air Freight & Logistics Market Growth…………………………………………………………………3 Figure 2.4: Customer Satisfaction Benchmark……………………………………………………………………….4 Figure 4.1: Porter's Value Chain Framework………………………………………………………………………….6 Figure 4.1.2: FedEx Primary Activities……………………………………………………………………………………7 1.0 Introduction According to Amsler et al (2010), the market of shipping and transport logistics has become a leading...
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...The corporate strategy of fedex corporation Executive Summary This analysis of the corporate strategy of FedEx Corporation relates to three specific issues in the corporate strategy case. The first issue is a critical analysis of the global express transportation and logistics industry. The second issue discusses about the mergers and acquisitions in transportation and logistics industry. The final issue is a critical review of the performance of FedEx in the events leading to the January 2000 reorganisation. In the first section, the global express transportation and logistics industry is an attractive sector based on the fundamentals of the sector given in the five forces analysis using Porter's framework. There are large barriers to entry, there are minimal substitutes that exist, industry is relatively disciplined, and the power of buyers and suppliers are mixed. FedEx is well placed in the sector given its core competencies and dynamic capabilities relating to its management and the functional areas of marketing, human resources and information technology and systems. In the second section, gives a brief knowledge about the benefits and limitations of merger and acquisition strategies in this industry. This also describes how effective was the 1998 Caliber System acquisition and where did it led the company do in its further years. In the final section, it is noted that FedEx performed poorly within its sector and given its capabilities, the firm was expected to have...
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...head: FedEx FedEx Brandy Craig Indiana Wesleyan University ACC 549 Dr. Peter McDaniel August 10, 2014 FedEx Company Overview FedEx begins their mission statement by stating that they will “produce superior financial returns for its shareowners by providing high value-added logistics, transportation and related business services through focused operating companies” (Mission Statement, 2014). FedEx is one of the largest domestic and foreign shipping companies in existence in the economic world that we know today. FedEx began its journey in 1971 when it was founded by Frederick W Smith in Little Rock, AR (Acquisition History, 2014, para 1). They went global in 1984 when they purchased Gelco Express International, a “worldwide courier with service to 84 countries” (Acquisition History, 2014, para 2). In 1989 they purchased Tiger International Inc., a flying full-service, cargo airline company (Acquisition History, 2014, para 2). Nine years later, in 1998, they really started growing. FedEx created the company FDX in which they later renamed as FedEx Corporation (Acquisition History, 2014, para 4). It was in 1998 that FedEx Ground and FedEx Freight both took off. Not only did they service customers through the air as an express service but they also were able to sufficiently service customers across the US by the use of trucks making it much more economical and affordable (Acquisition History, 2014, para 4). From 1998 FedEx Corporation...
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...Introduction Globalization coupled with technology has dramatically altered the competitive landscape of corporate America. As corporations fight for scarce resources, and savvy consumers equipped with greater knowledge through the World Wide Web gain bargaining power, the necessity for big business to improve supply chain management procedures has intensified. The explosive growth of emerging markets like China and India creates both opportunities and challenges in transporting goods and services. The businesses that can leverage technological advances are in a position to garner market share and add value to their shareholders. FedEx has become a world leader in the parcel delivery business. The name FedEx evokes thoughts of getting packages to customers the next day. FedEx now is used as a verb to tell customers that a shipment will be sent so that it is received the next day. Delivering a product on-schedule is the result of multiple business processes working seamlessly to create a Value Chain that yields a firm greater profit over costs (Dess, Lumpkin, & Eisner, 2007). A primary activity of the Value Chain is Supply Chain Management (SCM). Supply Chain Management is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer ((2006). Supply Chain Management Retrieved April 24, 2007, from http://searchcio.techtarget.com/sDefinition/0,,sid19_gci214546,00.html ) Running the full...
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...Strategic management can be defined as the systematic analysis of the factors associated with customers and competitors. Strategic management allows organizations to strategically align policies to ensure efficient management is consistently obtained (Business Dictionary, 2011). Through strategic management, organizational leaders are able to assess their strengths and weaknesses and leverage them in order to monitor, evaluate, and plan accordingly. In this paper, the author will describe the primary components of a strategic management process and explain the importance of a company having a strategic management process. The author will also describe the strategic management process used at FedEx Corporation that makes them a leading force in their industry. The concepts and techniques of strategic management are widely used by organizations to help their companies remain competitive and decrease the likelihood of costly errors (Wheelen & Hunger, 2010). Strategic management is a continuous process that has four phases that outline the set of strategies an organization should use to achieve better performance (Management Study Guide, 2010). The first phase of the process refers to the financial planning managers use to develop a budget to be used for company activities during the year. The second phase involves forecast-based planning which allows managers to review the budgets and determine their feasibility on a long-term basis. Externally oriented planning in phase three...
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...strategic human resource management and identify the factors impacting on strategic human resource management in contemporary organisations. Before an argument can be put in place about whether human resource management (HRM) can be strategic, we need to be aware that human resources (HR) is more then maintaining personal functions. Corporate and economic developments since the 1950Ў¦s have dictated that businesses, to remain competitive, need to view HRM as an evolutionary process which combines the HR functions with the HR policies and strategies, with the business strategies and management teams, with all stakeholders (Unions and Governments) and with the organisation and understanding of the actual employees themselves. Strategic HRM is about aligning the abilities and desires of the employee with the needs of the business so that the corporate objectives can be met. HRM can no longer afford to be viewed as simply an administrative task. Corporations need to have ÐŽÒproactiveЎ¦ policies to attract and retain the right type of people to their business and in this ever changing and uncertain economic climate the management of employees takes on an even greater role. Using the VIRO (value, rareness, imitability, and organisation) human resources can be proven to be strategic and therefore, provide firms with a competitive advantage through its people. The article by Barney and Wright (On becoming a strategic partner: The role of human resource management in gaining competitive...
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...[pic] Introduction FedEx Corporation (FedEx) is a US based company mainly engaged in offering logistics solutions. The company, through its subsidiaries, provides transportation, e-commerce and business services under the FedEx brand. The major benefit of using the company is its ability to provide “day-certain” service to every business address in the US and Canada, as well as provide “time-certain” delivery to those areas within one to three business days. The company was founded in 1973 by Frederick W. Smith, whose vision was to provide overnight delivery services for his clients. The company is divided into eight major divisions: [pic] The mission of FedEx is to provide superior financial returns for shareowners by providing high value-added supply chain, transportation, business and related information services through focused operating companies. Customer needs will be met in the highest quality manner appropriate to each market segment served. FedEx strives to develop gratifying relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations and all activities will be conducted to the highest ethical and professional standards (FedEx Corporation – Financial and Strategic Analysis Review, 2011). FedEx’s vision is a world where goods and information move quickly and seamlessly. The company’s goal is to connect the world in such a way that consumers will view them as a provider of convenient...
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...CONTENTS I. Introduction……………………………………………………………………………….2 II. Company Overview……………………………………………………………………..3 Company Background……………………………………………………………...3 Services Offered……………………………………………………………………..4 SWOT Analysis……………………………………………………………………...5 III. Environmental Analysis………………………………………………………...……13 PESTEL Analysis…………………………………………………………………..13 Competition Analysis………………………………………………………………16 IV. Marketing Plan…………………………………………………………………………16 Marketing Goals…………………………………………………………………….16 Marketing Strategies……………………………………………………………….17 Marketing Mix……………………………………………………………………….20 Marketing Budget…………………………………………………………………..22 V. Recommendation………………………………………………………………….…..23 INTRODUCTION The competition in the business arena has been very stiff and complex. In this regard, the organization must be able to utilize a strategy and management system that will enhance the performance of the business so as to outgrow its rivals (2000; 2003). There are certain ways or techniques that can be considered in order to emerge and continue to be competitive within the market place. The marketing concept has been defined as ‘the key to achieving organizational goals’ and the marketing concept rests on ‘market focus, customer orientation, coordinated marketing and profitability’. In a profit making business the firm obviously has to try and achieve this level of customer satisfaction as a way of staying ahead of the competition and making a profit. Traditionally, marketing...
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...1. INTRODUCTION FedEx Corporation is a leading logistics services company, based in the United States. The previous names were Federal Express, Federal Express Corporation, and FDX Corporation. FedEx was found in 1971 by Frederick W. Smith in Little Rock, Arkansas (http://en.wikipedia.org/wiki/Fedex). The company officially began operations on April 17, 1973, with the launch of 14 small aircraft from Memphis International Airport. On that night, FedEx delivered 186 packages to 25 U.S. cities from Rochester, New York, to Miami, Florida. The FedEx headquarters then move to Memphis, Tennessee, and now the company had employed more than 290,000 workers. FedEx was the pioneer of the express transportation and logistics industry. In fiscal year 1983, Federal Express reported $1 billion in revenues, making American business history as the first company to reach that financial hallmark inside ten years of start-up without mergers or acquisitions (http://about.fedex.designcdt.com/our_company/company_information/fedex_history). 2. DESCRIPTION OF FEDEX’S STRATEGY CONTEXT BETWEEN 1973 - 2000 2.1. THE INDUSTRY CONTEXT “Know the other and know yourself: Triumph without peril. Know nature and know the situation: Triumph completely” (by Sun Tzu). If strategic management is concerned with relating firm to its environment, then it is essential to know this environment well. While the entire outside world was taken into consideration, emphasis was placed on the direct environment...
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...Express in 1971; this company evolved into the FedEx Corporation in 2000 (FedEx, 2011). For the 2011 Fiscal Year, they had revenue in excess of $39 billion dollars. FedEx is comprised of more than 290,000 global employees. They process more than 8.5 millions shipments each day (FedEx, 2011). FedEx provides services to more than 220 countries and territories, including every address in the United States (FedEx, 2011). FedEx Corporation is the premier provider of shipping and information services worldwide. Their mission statement is evident in everything they do. The mission of FedEx is “FedEx Corporation will produce superior financial returns for its shareowners by providing high value-added logistics, transportation and related business services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served. FedEx will strive to develop mutually rewarding relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards (FedEx, 2011). The operating strategy of FedEx works seamlessly and continuously on three levels: compete collectively-they are one brand worldwide and speak with one voice. Operate independently-allowing the different networks the ability to meet the needs of their clients. Manage collaboratively-FedEx works together for loyal relationships with...
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...Between 1973 and 2000, FedEx developed and implemented a strategy that integrated the various business units and processes. Such strategy may be best explained by examining it based on the three levels that De Wit and Meyer (2003) suggested, these being the business, corporate, and network levels of strategy. However, two important elements stand out in Federal Express’ strategy. One of these was evident in all levels and this was the use of technology, particularly the advances in information technology to restructure and reorganize the company, its subsidiaries, its units, and it business functions (Conley et al, 2000, Rigsby & Greco, 2002). Secondly, capital investment was a major part of the strategy. FedEx Strategy at the Business Level Federal Express’ clients ranged from large scale business to individual customers that required a wide range of services. As such, Federal Express needed to find a way to meet the needs of the various groups of customers that it provided services to. By streamlining its operations and by integrating its various systems, the company was able to develop a customer logistics management segment of its business to cater especially to its large-scale business clients that required such service (Conley et al, 2000). This included providing warehousing and distribution services that cut the costs for its business customers. Such strategy demonstrates the company’s way of dealing with the paradox of market adaptation and resource leveraging. Having...
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...companies. As stated on the Investor Relations section of the FedEx webpage, "FedEx Corp. is committed to producing superior financial returns for its shareowners by providing high value-added logistics, transportation, and related business services through focused operating companies that compete collectively, operate independently, and manage collaboratively." This motto is the driving force behind the FedEx competitive strategy. FedEx is not one single entity, but rather many smaller companies that “compete collectively” by standing as one under the FedEx brand. FedEx Corporation is the parent company to several subsidiary operating companies (OpCos), including FedEx Ground, FedEx Express, FedEx Freight, and FedEx Office. This organization structure allows FedEx OpCos to specialize in different shipping methods and key components of shipping and office needs, which in turn allows FedEx Corporation to dominate the shipping market. FedEx is constantly looking for ways to expand upon this specialized business model, demonstrated by the recent strategic acquisition of GENCO, one of the largest logistics companies in North America. FedEx excels by offering specialized shipping solutions that surpass the offerings of its competitors. For example, International Priority DirectDistribution is a specialized international shipping method offered by FedEx Express for palletized freight. The Single Point of Clearance strategy utilized in this product allows customers to ship a large pallet...
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...Schuler and Walker define Human Resource Strategy (HRS) as “a set of processes and activities jointly shared by human resources and line managers to solve business-related problems”. I believe this definition assists on tackling the above question. However, Bamberger and Meshoulam “Conceptualise human resource strategy as an outcome: the pattern of decisions regarding the policies and practices associated with the HR system”. In my view, HRS is a set of ‘processes and activities’ that when implemented, result in an outcome. In aim to justify this statement by discussing the topic of human resource strategy in relation to the sub-headings listed above. By examining the reasons or ‘rationale’ for the emergence of human resource strategies in the modern business environment, the value, various strategy approaches, types and the concept of fit, I believe I can underline the importance of a well devised HRS to any overall business strategy or plan. Modern businesses and the economic environments in which they operate are very different from the organizations and economies examined by Chandler in his studies of ‘managerial capitalism’ (late 19th Century through to the 1970s). The development of technology, and the creation of global economies have resulted in a significant increase in efficient and effective competition within all industries operating in market economies. Firms con longer rely on competing aggressively simply on the reliable favorites of achieving economies of...
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...section vi cases 1 2 3 4 5 6 7 8 9 10 11 12 FedEx Corporation Honda Motors Virgin Toyoko Inn Group PowerGen Kao Corporation Continental Caterpillar Metro Grupo Elektra Lego Mindstorms Shell and Billiton 13 14 15 16 17 18 LoJack and Micrologic Proteome Systems Swatch Ducati Chicago Museum Trilogy University 647 663 680 702 709 721 738 755 773 778 795 803 818 827 847 854 872 883 892 901 909 928 19A Cap Gemini Sogeti 19B Cap Gemini Sogeti 20 21 22 Kentucky Fried Chicken Cirque du Soleil Nike and the University of Oregon 933 case 1 FedEx Corporation: Structural transformation through e-business By Ali F. Farhoomand and Pauline Ng1 Case 1 [FedEx] has built superior physical, virtual and people networks not just to prepare for change, but to shape change on a global scale: to change the way we all connect with each other in the new Network Economy. (1999 Annual Report) [FedEx] is not only reorganizing its internal operations around a more flexible network computing architecture, but it’s also pulling-in and in many cases locking-in customers with an unprecedented level of technological integration. (Janah and Wilder, 1997) its inception 1973, Federal Express Since express deliveryincompanytransformed logisCorporation (‘FedEx’) had itself from an to a global tics and supply-chain management company. Over the years, the Company had invested heavily in IT systems, and with the launch of the Internet in 1994, the potential for further integration of...
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