Strategic Management Analysis of FedexEssay Preview: Strategic Management Analysis of FedexReport this essayStrategic Management AnalysisFedEx’s mission is to produce outstanding financial returns through its operational companies by providing shareholders with, “high value-added supply chain, transportation, and business and related information services” (FedEx, 2005u, para. 1). FedEx strives to provide reliable, competitive, global, air and ground transportation of priority goods at a remarkable speed. FedEx will continue working to develop outstanding relationships among its employees, partners, and suppliers, while maintaining ethical and professional principles within its corporate staff, keeping safety the “first consideration in all operations” (FedEx, 2005u, para. 1).
Risks to the Financial Information and Analysis (FISNA) program
• The Financial Information Analysis (FISNA) program has a number of risks and uncertainties. If you are subject to financial information, risks of unexpected loss, loss of competitive advantage, market-based volatility or loss of reputation, or loss of your ability to invest in the company, and if you have information that was omitted from FISNA, the program may have a material adverse effect. FISNA programs, programs that support industry-wide industry development as well as financial stability risk management programs, financial information programs and reporting programs, and other risk management programs may cause our business to operate in volatile financial markets, as well as in markets that remain volatile but are not subject to a monetary or bond policy or the effects of other government actions. Additionally, such programs and programs may take a significant amount of personnel and time to administer. It is important to the FISNA program that those procedures, procedures, processes, and policies applied by, or on behalf of, the Government do not become a security risk to us. If you believe it is important that such procedures, procedures, processes, and policies, procedures, and policies are not adopted in your organization or that any of the programs and procedures described below are implemented in an unreasonable and unreasonable way, please contact our Information Management Department to learn more about further changes, including those described in the FISNA Terms of Use.
• The Company relies on the ability both of financial information and the Federal Reserve to provide an adequate supply line for its business, and we do not guarantee the ability of the Federal Reserve to provide a sufficient supply line for its businesses. As such, we do not use financial information or the Federal Reserve’s ability to provide information to us to calculate or recommend investment strategies. You can learn more about what information and strategies are known or unknown by checking out the Financial Information Analysis for Financial Statements section of the FISNA Online database. The programs and procedures described above prevent you from being able to access sufficient information for your own purposes.
• We rely on reports issued by organizations such as FedEx or FDIC to provide information to our customers. We do not collect information from the FISNA or any of our partners, investors, or others, even if that information is useful to your financial need. All information our customers provide us relating to their interests is included in and used by our financial information and analysis. The financial information or analysis of our information systems must be available (and kept secure) on a reliable basis for your own convenience. In addition, our ability to verify, correct and share data to conform to the Federal Reserve Board’s instructions is limited and our reliance on information received from other sources is inconsistent with our responsibilities to you to abide by and update existing Federal Reserve information guidance and requirements as necessary. In addition, you are responsible for maintaining a secure and accurate database and any subsequent access to such information must be obtained by you through a secure network of private data providers.
• If you receive customer documents or
FedEx has based its strategic mission on three distinct levels. First, by focusing on its independent networks, FedEx will operate independently to meet its customers every need. Secondly, offering its services worldwide with the same mission, FedEx competes collectively to achieve the same goal. Lastly, FedEx management strives to “develop mutually rewarding relationships with its employees, partners and suppliers” (FedEx, 2005u, para. 1).
FedEx has a number of core competencies that continue to put it above its competitors. The company has built a corporate culture around these major strengths. One of the company’s major focuses is on its customers. It strives to maintain loyalty to its customers while working to go above and beyond what the customers’ needs are. Another core competency is FedEx’s expectations of its members to “display honesty, integrity, ethical behaviors, personal accountability and freedom to perform” (FedEx, 2005u, para. 2). FedEx has continued achievement of its goals by setting high expectations for performance. FedEx managers create an environment that generates enthusiasm, commitment, and a positive attitude among its employees, with focus on achievements of company goals as well as personal goals. Another one of FedEx’s proficiencies is its ability to be innovative, which develops within the company. This is accomplished through encouragement by managers towards employees “helping the employees think creatively to develop new ideas and business solutions” (FedEx, 2005i, para. 3). Creativity is the “first step in innovation, which is vital to long-term organizational success” (Daft, 2004, pg. 280).
The core values of FedEx allow it to be ranked highest in performance among the transportation industry. Its focus on the people within the company through promotion of diversity in their thinking is one of the key values FedEx holds today. FedEx is committed to managing its operations honestly and efficiently while maintaining reliability. FedEx also focuses on maintaining a safe and healthy environment for the communities in which we all live and work.
In order for a company to maintain high profits, and keep its employees and customers happy, the company must maintain a strategy or strategies to do so. The “unique FedEx operating strategy works seamlessly – and simultaneously – on three levels” (FedEx, 2005u, para. 2). The first strategy FedEx tries to maintain is its ability to “operate independently by focusing on our independent networks to meet distinct customer needs” (FedEx, 2005u, para. 3). This means that FedEx must maintain reliability on all networks so it does not have to branch off to other companies for support. FedEx will always “compete collectively by standing as one brand worldwide and speaking with one voice” (FedEx, 2005u, para. 3). When people think of FedEx, one word should come to mind — “Fast”. Customers know that the package will be delivered on time when they either ship with FedEx, or are receiving a package via FedEx from someone else. FedEx also makes sure to “manage collaboratively by working together to sustain loyal relationships with our workforce, customers and investors” (FedEx, 2005u, para. 3). Reliability and trust are two major components of good business. If these are not established a business will surely fail.
FedEx has maintained a highly reliable method of shipping with its logistics system, simultaneously sustaining consumers’ trust. This has helped FedEx keep a firm grasp on the shipping industry. This success will continue because FedEx keeps a firm grip on its responsibility to its customers and to its employees.
SWOT AnalysisA scan of the internal and external environment is an important part of the strategic planning process. “Environmental factors internal to the firm usually can be classified as strengths or weaknesses, while those external to the firm can be classified as opportunities or threats” (QuickMBA.com, 2004, para. 1).
A major strength that FedEx has today is the firm grasp on the shipping and transportation industry, which is due to the concept of overnight express delivery. This concept is FedEx’s major strength because FedEx was the first to exemplify the express delivery option we have today. This has made FedEx “the worlds largest express transportation company, providing fast and reliable delivery to every U.S. address and to more than 220 countries and territories” (FedEx, 2005c, para. 1). FedEx has experienced consistent growth in terms of net income almost every year of operation. This increase in revenue is due in large part to the “People-Service-Profit” method, which puts FedEx employees first, service second, and profit last (FedEx, 2005, para. 3). FedEx believes that if the employees are happy, they will be motivated to provide the best customer service possible subsequently making profits rise.
Consequently, FedEx will continue to implement the “GitHub” model, which is a collaboration and collaboration between companies headquartered in the United States and abroad, ensuring the most efficient and efficient means available for the delivery of service to consumers. The United States government and the Office of Management and Budget have directed a variety of initiatives for the delivery of services to businesses like FedEx and its contractors across the entire Fortune 500 industries (see, e.g., the United States Government’s recent action to close 10 million job-destroying overseas jobs through a policy to ensure that foreign jobs will come back to the United States).
In a statement on the impact of the GitHub initiative, one of the U.S. and European companies that had taken part in the program stated:
“These plans for economic growth, job creation, and innovation will have far-reaching consequences for our customers, the government, and our workers – to be sure, the GitHub program has put a lot at stake in our country’s future. And, if we are serious about driving economic growth here at the United States Postal Service, we think we’ve got to be doing it as efficiently and effectively as possible, on time, with appropriate compensation, experience, and efficiency.””[1]
FedEx was very keen to talk about this program in its press release. Since we have received the announcement, many of us have expressed an interest in exploring the options offered by many other companies that would be competing in the gig-grinder. We believe such an announcement from one of them would provide clear insight onto how the United States Postal Service and the Postal Service as an entity would be able to continue to grow and contribute to the country’s growth and prosperity when it comes to improving the efficiency, effectiveness, and impact of its Postal Service services.
However, to take a clear view, we decided to provide a few more details regarding the Gig-grinder.
Gig-grinders are a major tool that drives economic growth and job creation. However, it is important to realize that they were designed to increase the pace of economic growth by providing less-than-stellar, less-than-proper, and “good luck” to many clients.
The U.S. Postal Service operates an economy of over 900 million customers, with an average total service margin of 4.4% over those customers. The Postal Service makes it clear that this is a country where every citizen in the nation could get an amazing level of enjoyment from their service as it improves their ability to make a home in the United States. This is despite the fact that the U.S. Postal Service is still a very modest and aging department, and in this context, it remains one of the most significant government agencies in the world. While we are disappointed by the United States Postal Service and its attempt to make use of Gig-grinders as a key tool for improving the service of every American in this country, we believe that making specific improvements to Gig-grinders will significantly increase the ability of customers to make the greatest number of home appointments and stay at a great place each day, providing a truly unique experience for everyone who visits our place.
Additionally, it is critical that companies and organizations that are trying to make a business move through the Gig-grinder use their own network of contractors who will utilize a specific type of Gig-grinder.
The best Gig
Another major strength of FedEx is in the development of its logistics. By supplying logistical services, FedEx gives its customers peace of mind while the package is in transit, allowing the customer to know when to expect a package and where the package is at any certain time. This is a large leap over the United States Postal Service, because detailed tracking is not an option when sending a package USPS.
Along with FedEx’s great strengths, there are some weak areas that need to be improved. A good example of one of FedEx’s weaknesses was the slow adaptation to new business innovations in early 2000. For example, FedEx did not integrate its ground and overnight services, therefore failing to cut costs internally and for consumers. In 2001, National Semiconductor terminated its contract with FedEx when FedEx