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The Corporate Culture Of Fedex Business Essay

Paper Type: Free Essay Subject: Business
Wordcount: 3984 words Published: 1st Jan 2015

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In order to complete the task the organization selected was FedEx. The corporate culture of FedEx was based on superior client service as well as displayed an attitude of “doing whatever it takes to serve clients” as of the top to the bottom. The expansion of the Internet, therefore, was something FedEx might employ to enhance its client base plus create a competitive service advantage. “It allowed FedEx to not just let its clients pull real time information moreover data into their internal systems, however in addition to that turn out to be further involved in the internal processes of its clients.” which involves the contributing factor in transforming FedEx into an e-trade. Even though there was no planned strategy to build an e-trade, the decisions that the business made to align the organization structure by means of systems plus processes has carved out a model for building a successful trade for the 21st century”, which lends support to transportation logistics competence as well as selling as well as supply chain logistics answers management. (De Wit, 2004)

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FedEx is renowned for plus recognized for its total fidelity plus its attention to detail. FedEx accomplishes this by not being a mass of bodies moving in one direction however rather by being the several parts that compose it plus working together. FedEx’s guaranteed on-time service plus complete satisfaction is unconditional. The image the business has so meticulously cultivated assists maintain as well as extend its market share. FedEx Logistics offers customized, integrated logistics in addition to warehousing answers worldwide. FedEx Logistics is the parent business of FedEx Logistics furthermore Caribbean Transportation in February 2000 to offer customs brokerage moreover trade facilitation answers. FedEx Corporate Services formed in January 2000 to bring together the sales, client services, public relations in addition to IT resources. “On January 19, 2000, FedEx announced a novel branding strategy that involved transforming the business’s name to “FedEx Corporation”, as well as extending the “FedEx” brand to four of its five subsidiary companies. Providing clients by means of an integrated set of trade answers was the pivotal reason for the renaming of the business as FedEx Corporation. Clients wanted to deal by means of one business to meet their transportation plus logistics needs. The announcement created to pool together the marketing, sales, client services, information technology plus electronic commerce resources of the group furthermore offer variety of trade answers. (Johnson, 2005)

Technological growth has always been a major manner for FedEx to add value since it can cut costs along by means of creating novel manners of finding competitive benefits. Lastly, FedEx’s improving in addition to transforming of the organizational structure over the last few years has added value. By developing different subsidiaries all operating under the FedEx brand name has organized the business down by means of improving the communication inside the business as of one division to another. (De Wit, 2004)

The ability to keep up by means of e-trades will depend on how well a business can keep up by means of novel emerging technologies. FedEx has transformed into an e-trade by improving several of its core competencies. On January 19, 2000, FedEx announced a novel branding strategy that resulted in the transform of the business’s name to “FedEx Corporation” as well as extended this FedEx name to four of its five subsidiary companies. FedEx’s strategy was to take advantage of its brand image, the name that clients have counted on for reliable service plus cutting edge technology. The transformation created an integrated set of trade answers. Clients will just need to deal by means of one business for all its supply chain, logistics, moreover delivery needs. This offered a single point of access to client service, billing, sales furthermore automation systems. Each business under the FedEx umbrella operates independently however competes collectively. The novel organization is geared to assist trades of all sizes in achieving their goals. (Johnson, 2005)


FedEx Corporation will produce superior financial returns for its shareowners by providing high value-added logistics; transportation furthermore related information services through focused operating companies. Client requirements will be met in the highest quality manner appropriate to each market segment served. FedEx Corporation will strive to develop mutually rewarding relationships by means of its employees, partners plus suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical as well as professional standards. (Lynch, 2006)


FedEx’s strategy was to capitalize on the growth of e-trade moreover aimed at integrating its physical transportation by means of its virtual information infrastructures to create a large matrix of systems that meets the needs of trades ranging as of transportation services to complete supply chain management answers. FedEx has taken a client focused approach in addition to all systems are cantered on the client. The process of building the systems furthermore technology infrastructure was the first step in the transformation. Next, was the integration of trade processes into these systems? (Lynch, 2006)

This was not an easy task moreover required expertise in logistics plus supply chain management. FedEx was following the technology age taking place in our country at this time as well as piggy backed on the growing e-trade market. The final step is for FedEx to transform its trade furthermore make people aware of the innovations and advancement. (Lynch, 2006)


FedEx conducts its trade internationally moreover therefore is required to follow international laws, rules furthermore regulations. FedEx will not carry shipments, which are in violation of any U.S. export laws. As by means of all shipping companies, they will not assume liability for any loss or expense, including, however not limited to, fines in addition to penalties, due to failure to comply by means of export laws or regulations relating to the export, import or movement goods at central hub locations, FedEx employees work jointly by means of U.S. Custom’s officials to prevent contraband as well as restricted items as of entering plus leaving the U.S. FedEx has initiated strict shipping guidelines furthermore know one’s client rules, in conjunction by means of law enforcement, to deter moreover prevent the movement of dangerous furthermore deadly agents into the U.S. They screen packages for illegal currency and monetary instrument shipments in violation of the Bank Secrecy Act reporting requirements. (Lynch, 2006)


FedEx Corporation has grown as of a package mover to the leading transportation offer in the world. It was the first to establish critical factors to transform a conventional trade into an e-trade. FedEx developed a global network which offers services beyond transportation, including full service management tools plus support. FedEx led the manner in the deregulation of the transportation industry, which resulted in economic competition in addition to a decrease of transportation costs as of 7.4 % of GDP in 1980 to 6% of GDP in 1999. It employed 166,000 full-time furthermore part-time workers in the United States in 2000, by means of a payroll as well as benefits of £7.2 billion. The direct and indirect employment impact of FedEx operations is over 550,000 jobs, or around 1 in every 270 jobs in the United States. The business’s revenues exceeded £18 billion in fiscal year 2000 while the combined direct plus indirect output produced by FedEx activities totalled approximately £53 billion. The number of export packages transported by FedEx has been growing steadily over 15 percent. FedEx has tripled its market share over the last seven years. The value of these exports has in addition augmented 300 percent, an annual average of over 22% while during the same period U.S. exports just augmented 50%, a 7% annual augment. The evolution moreover success of FedEx has had a multiplier effect on the U.S. economy. It continues to make technological furthermore operational advances that are impacting on global markets as well. (Johnson, 2005)


FedEx has established that it cares very much regarding the global community. It uses its resources to assist thousands of organizations throughout the world. Their aircraft furthermore vehicles deliver tons of aid to disaster sites. Employees volunteer countless hours to make their communities better places to live, play, in addition to work. FedEx gives financial support to assist ensures children’s safety as well as improve education. FedEx is committed to all their employees and the communities in which they live. They demonstrate this by offering financial support plus volunteer support for charities that promote educational, artistic moreover cultural, civic furthermore humanitarian well being. (De Wit, 2004)


The FedEx Corporation has made massive strides in technology and is setting the industry standard for competence furthermore client service. FedEx has sought technological advances in response to client needs, and has excelled in anticipating as well as projecting demands of an environment that would depend plus thrive on information. The technology FedEx has developed enables clients in addition to support personnel to have wireless access to essential information system’s networks anytime moreover anywhere. FedEx was the first to integrate wireless technology further than two decades ago, furthermore continues to develop and lead the industry in developing innovative wireless answers. (De Wit, 2004)

FedEx has long been in the forefront in recognizing the potential of the Internet to offer fast, easy furthermore convenient service options for its clients. In 1994, the FedEx Web site was launched by means of a bold package tracking application that was no doubt one of the first true corporate Web services. FedEx turned out to be the first transportation business by means of a web site offering a feature that allowed clients to generate their own unique bar-coded shipping labels moreover contact couriers to pick up shipments. The web site today handles over 1.1 million package-tracking requests daily. Further than 2.5 million clients connect by means of the business electronically everyday as well as electronic transactions account for two-thirds of the five million shipments FedEx delivers daily. The web site is acclaimed in the trade community for its speed, ease of employ plus client-focused features. (Lynch, 2006)


The international market place is by far the business’s most prominent growth opportunity. The FedEx global story began by means of the growth of FedEx Express, which today covers further than 210 countries by means of quick, reliable express transportation. FedEx has been a leader in the global economy, offering clients further choices and further places. The family of companies representing FedEx operates hubs all over the world, giving clients limitless opportunities to expand their client base. (Johnson, 2005)

FedEx Trade Networks offers global e customs clearance in the U.S. in addition to Canada, offers freight forwarding services that connect the U.S. furthermore Canada by means of Asia, Europe, Latin America moreover other major international regions. FedEx Supply Chain Services leverages the global transportation in addition to information networks of the FedEx companies as well as their affiliates to offer international supply chain management answers to clients in North America, South America, Europe, and Asia. (Ward, 2006)

Competitive Environment

The competitive environment is made up of the life cycle stage, competitors, key success factors, plus Porters 5 forces. FedEx is still in the growth stage of the life cycle. There are few competitors in the postal service plus delivery industry.

Top Competitor:


The United Parcel Service was founded in 1907 inside the United States. Today UPS is a £30 billion business that focuses on enabling commerce around the planet. UPS is one of the most recognized plus admired brands in the world on top of express carrier and package delivery. UPS is a leading offer of specialized transportation, logistics, capital, plus e-commerce services. UPS is involved in further than 200 countries worldwide. (De Wit, 2004)

UPS Internet Shipping is ones fastest in addition to most convenient shipping answer on the Web. Access the industry’s widest array of shipping options right as of one’s computer. UPS Internet Shipping offers several key benefits including:

Store up to 300 addresses in Address Book

Access shipment details plus tracking data for up to 90 days

Customize preferences for fast, easy shipping

Shipping software not required – nothing to install

Strategic Analysis:

Most carrier firms emphasize the same strategic dimensions furthermore employ similar strategies moreover that once common strategy that is the carrier trade is the high investment in research and growth in order to develop better technologies. In the trade, firms by means of the best technology tend to have a higher market share and this can be seen as a competitive advantage. (Johnson, 2005)

Key Success Factors:

The key success factors for FedEx trade is technology. This is what makes a business run as well as ultimately makes the money for the business. Another key success factor is marketing. People need to be familiar by means of the carrier’s names in addition to services so they have trust in the quality of the service offered. The further a parcel carrier is globalization; the better success it will have when it comes to international deliveries. International deliveries are costly plus there are just a few carriers that can offer total global delivery services furthermore this might be a competitive advantage. Client service is very significant; carriers need to keep the clients satisfied by means of the service so they continue to come back moreover employ the service. (De Wit, 2004)

Value Chain Analysis & Identification of Core Competence Primary activities:

Inbound logistics- handling and storing of products to be shipped.

Operations- shipping products, logistics, value chain analysis, financial analysis, handling orders, checking orders.

Outbound logistics- delivery of the products, receiving payment.

Marketing furthermore Sales- develop a positive image of the business making people feel comfortable plus satisfied by means of the product.

Service- Concentrates on client satisfaction, doing anything that satisfies the clients.

Support Activities:

Procurement- purchasing, trucks, planes, gas in addition to other assets

Technology growth- investments in systems innovation, research moreover growth and information technology

HR management- hiring, training, developing and compensating employees as of truck drivers to top-level management

Firm infrastructure- General management, planning, accounting, legal support, government regulations, required to support the value chain

Global distribution involves managing not just the movement of goods, however in addition the flow of information furthermore finance that moves by means of the goods. A FedEx supply chain answer is a streamlined organization as well as that one core competency leads to another it is a continuous flow. (Stacey, 1996)

SWOT Analysis:


Market Leader

Number one in the International Air Express Industry

They had a head start in the trade

Can clear customs faster allowing shipments to avoid delays


Major competitors and its operations

Growth demand


Expand into further countries

Buy further planes plus trucks to deliver further packages faster

Start delivering further heavy weight cargo

Improve ground delivery

Upgrading distribution in addition to logistic services


Competitors that offer better prices, faster travel time

Clients stop buying products

Gas Prices can rise that will have an impact on the prices

Five Forces Model:

Threat of Novel Entrants:

The threat of novel entrants is low in the parcel industry. It is low for the reason that it is very expensive to get involved in the industry. Starts up costs are high. It is expensive to have the services that are equal to that of FedEx moreover the other competitors. (Lynch, 2006)

Bargaining Power of Suppliers:

The bargaining power of suppliers is high. It is high for the reason that when looking at the items that the parcel industry employ such as, planes, computers, furthermore vehicles. If FedEx is not on good relations by means of these people, the costs can augment drastically. (Ward, 2006)

Bargaining Power of Buyers:

The buyers have a very strong bargaining power. They have the ability to switch their user to one of the other members of the industry at any time. It is the job of FedEx to make sure that the client is always happy. It comes as no extra cost to the buyer to switch their parcel delivery business. The just lose that is really suffered comes at the expense of the business for losing a client. (Whittington, 2000)

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Product Substitutes:

It is very easy to substitute a delivery service. There are not several out there however the ones that are well established in the eyes of the client and the industry. It would not be a complex task to switch one business for another. Since this is the case, FedEx has to maintain good client relations by means of their clients. (Stacey, 1996)

Intensity of Rivalry:

The parcel industry is an intense industry. There are five main players in the industry competing for market share. The features that they are competing on are the speed of delivery, the competence of the delivery, furthermore prices. If one can create a successful mix of the three of those factors, one will hold the greatest market share. (Lynch, 2006)

FedEx has turn out to be a major technology user. The employ of IT to its trade enabled FedEx to surpass the rest of the industry as well as acknowledge Fred Smith as “the visionary who forced his plus other companies to think outside the proverbial one.” He rationed that the business “have to acquire its own transportation fleet while competitors were buying space on commercial airlines moreover sub-contracting their shipments to third parties, reliable on its overnight delivery commitments, “an image that has turn out to be fundamental to FedEx’s overall success.” The introduction of novel technology allowed FedEx to install further than 100,000 sets of PC’s by means of its software, allowing clients to be linked in addition to logged into their ordering and tracking system. The emergence of PC’s loaded by means of FedEx software transformed the client base into an electronic network. “Information enables corporate clients to tighten their order-to-delivery cycle, exercise just-in-time (JIT) inventory management furthermore synchronize production levels to market demand.” FedEx’s quality of service turned out to be synonymous by means of the quality of the information offered to its workforce. (Johnson, 2005)

FedEx has enhanced information management in terms of being able to identify the critical factors involved by means of success of an e-trade. It has successfully transformed as of a conventional trade into an advanced e-trade in its network economy. FedEx has succeeded in several areas including: visionary leadership in the application of novel technologies, defining the information infrastructure, integrating internal processes, and aligning the organizational structure for maximum benefits. FedEx’s key strategy was client service furthermore for its clients to adapt into its novel information technology. FedEx harnessed its novel technologies plus extended the electronic trade to all of its clients. FedEx has developed this technology moreover made it possible for its clients to connect by means of them in any manner the client chooses. The restructuring of FedEx addressed several processes however in exacting the integration of logistics as well as supply chain management proved to be most successful. The enabled FedEx to cut inventory levels, reduce costs as well as shortening order-cycle time. This is a key for FedEx to improve the quality of service they offered to their clients. (Mintzberg, 1998)

FedEx has laid out a vast matrix of transportation in addition to information networks that will offer them by means of a huge competitive advantage for some time. To function as e-trade Business will need to turn out to be increasingly client/answers focused. All processes have to be integrated to ensure a unified client centred front that offers services throughout the value chain, logistics, and parcel carrier trade. FedEx’s novel restructuring will serve their clients as well as apply novel technologies constantly to improve their response time and the value of the information they offer. FedEx will continue to build, innovate, furthermore exploit technologies as of the successful base they have created and will be on top of the industry for a long time to come. FedEx can be classed as an innovator in its field, being the first business to introduce several of the technologies furthermore processes that are worn in the courier trade today. Innovation can be seen as a context-specific process of invention, diffusion, adoption in addition to implementation. (Lynch, 2006)

FedEx management understands the strategic significance of innovation plus has forged links to create the FedEx Technology Institute. .FedEx has in addition shown a strong trend for technological innovation. This means that the business is not always reactive to competition; rather they often force the competition to follow their lead. This gives FedEx a competitive edge, moreover in addition continues to ensure that the “FedEx” brand-name is well respected. (De Wit, 2004)

Challenges Faced:

While carrying out this task the experiences that were face while used the analytical tools and techniques introduced in the module were really very fruitful and I came across situations where I felt that I really am an employee of the organization and felt the situation the organization was facing and going through. And the techniques introduced and taught in the module enabled me to think about the solutions that might help the organization.

The advancement in the nature of the techniques introduced in the module and the way the over all modules was organized throughout it really enabled me to understand the situations an organization may go through during its business process. This was a great experience as along with focusing on the task I also practiced and learned how to search and go through different sources more efficiently in order to complete a task.


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