1: INTRODUCTION FedEx Corporation is a logistics service corporation and operated since 1973 (FedEx 2013). Under the company FedEx, there are different Business Units according to the market demand; FedEx Express, FedEx Ground, FedEx Freight, FedEx services and so on. All of these services are operating under the brand name of FedEx, but they are not very much related with one product line and another (Vector Strategy Group 2010). FedEx was mentioned in the best 100 of Fortune 500 Companies and 10 most admired companies (CNN Money 2013). This factor proves that FedEx is performing the best in logistic industry, therefore, can also be assumed as the market leader of the whole logistic market and there would be analysis on the performance of FedEx in marketing management and how the company is strategically operating in the industry. In this assignment, there will be 4 parts of analysis on the company FedEx’s strategic management. Part 1 is about the critical analysis on external environment which is including macro environment, industry, and market segment, part 2 is about the internal environmental conditions, part 3 is the discussion of FedEx’s vertical integration, backward integration and merger & acquisitions and part 4 is recommendations for the company FedEx’s current performances based on the organisation’s strategic capability. 2: EXTERNAL ENVIRONMENTAL ANALYSIS 2.1: Macro-Environment According to PESTEL environmental influences can be summarized within six categories (Johnson, Wittington & Scholes 2011). For the CEP industry, list of influences under six PESTEL analysis categories might include the following: POLITICAL analysis: means factors like governmental policies, laws, rules and regulations, taxation... ... middle of paper ... ... Figure 5.2: UPS v/s FedEx Sales Revenue (Diffen 2013) This will ensure cash inflow even if there is inflation in the market. So FedEx need to target corporate sectors for their delivery. This will be a win-win strategy where FedEx revenue can be increased nearly to UPS. 6: Conclusion To finalize datas that mentioned above, in logistics industry, FedEx is performing well from the point of strategic management even though the organization has some weaknesses to fix. Since it is the oldest logistic company in industry and it has been mentioned by fortune 500 companies, the company FedEx maybe assumed as the market leader of logistic industry line. If the organization prepare for the weaknesses, learn from mistakes, pass the experience curve, and also adopt the new trends in the industry, then FedEx probably become the best logistic company around the world.
Schrager, M. (2012). Why FedEx’s Marketing Efforts are the Perfect Package. Business Marketing Association, Chicago. Retrieved Nov 12, 2013, from
Business depends very critically upon Fed Ex. If Fed Ex had a major disruption to their delivery system, flowers would not be delivered on time, resulting in dissatisfied customers. For example, if Fed Ex employees went on strike, there would be no alternative equivalent to Fed Ex to deliver flowers to customers. UPS, although an alternative, did not deliver perishable products in the same timely fashion as Fed Ex.
One improvement would be to provide better visibility when tracking packages. A bundling price option would allow FedEx Corporation to simplify the process and would result in better tracking. The new IT system would reduce costs in supply chain and would allow their clients to feel more secure working with FedEx. The IT system allows anyone in the FedEx Corporation to track the package of any delivery method and can provide more accurate information to the client. Another improvement Project ARISE should implement would be to develop of a new compensation plan. Express has a larger customer base thus involving more revenue, while Ground is a smaller segment with less customers. As a result, account executives working on Ground may have more difficulty getting compensation for their business. In order to qualify for incentive compensation, the Ground salesperson must reach a minimum of 50% of his/her plan. 60% of this incentive compensation is based on individually established goals which are set once per year. In comparison, Express salespeople are compensated on a larger scale making 96% of one’s planned sales objective. In addition to cash incentives, account executive can also qualify for highly-acclaimed sales awards like the President’s
John Deere & Company manufactures and distributes agriculture equipment as well as a broad range of construction and forestry equipment. The company is partnered with FedEx in order to maintain the logistics flow involved with the company’s transactions. FedEx is responsible for providing outsourced transportation services to 11 Deere facilities across the US and Canada. The 11 Deere facilities have different service agreements with FedEx in terms of cost and service depending on the type of business unit.
The Competitive Forces are: The biggest competitor is Fed Ex, and they cannot compare. UPS did 2.5 times the volume through its sophisticated delivery machine.
This rating as well as many others factors have lead to the success of the United Parcel Service. The current status of the company reflects the strength of the their competitive position. The leaders of the current which include James Kelly, Michael L. Eskew, and John A. Duffy have set an example for anyone who is interested in management as a career. Their tactical maneuvers are first rate. This company succeeded because of the drastic communication advances. The customer is ultimately satisfied with the reliability of UPS to deliver on time. This is the marketing factor that sets UPS a step above the competition All decisions were made in the respect that the company would continue to bring the customer more than they expected. In turn United Parcel Service is an extremely profitable corporation. The environment provided by UPS keeps customers, employees, and managers working hard to keep up the high standards set by todays’ customers.
Sheridan Garrison was committed to connecting with their people to ascertain how they felt though constant communication. FedEx and scriptures put emphasis on building trust and putting the needs of other before your own. Employee satisfaction results from the experience of one’s job and the atmosphere. Consistent with Brown, Gray, McHardy, &Taylor (2015), employee trust within the workplace influences workplace performance. Furthermore, Philippians 2:4-5 conveys that we should not only look out for our own interests, but take an interest in others, as well. You must have the same attitude that Christ had. FedEx Freight’s policy and scripture are very similar. They both relate to putting the needs of others before your own and the importance of trust in our leadership. Isaiah 26:3-4 declares that the Lord will keep him in perfect peace whose mind is stayed on him, because he trusts in him. Trust in the Lord forever, for the Lord God is an everlasting
UPS has announced that after more than 90 years as a private company, it was planning an initial public offering to become a publicly traded company. In response to this, we will first analyze UPS¡¦s business strategy and it¡¦s sustainability of its current performance. Then we will look at key factors to estimate the UPS¡¦s market capitalization value using FedEx¡¦s multiples as well as ¡§best in breed¡¨ company premiums. From this, we concluded that UPS¡¦s IPO should create a market capitalization for UPS between $17,520 million and $30,415 million.
DESCRIBE THE STRATEGIC CONTEXT IN WHICH QUINTANA SHOULD JUDGE MUSIMUNDO’S PERFORMANCE. WHAT ARE THE CHARACTERISTICS OF THE ENVIRONMENT THAT MUSIMUNDO COMPETES IN? WHAT ARE PEGASUS’ STRATEGIC OBJECTIVES FOR MUSIMUNDO? HOW DO THESE FACTORS AFFECT THE BUDGETING PROCESS?
The FedEx delivery company, the world's most important courier service, provides a good example of how intermodal transport operates. The FedEx network is built around a single hub airport located on each continent. The American hub is located in Memphis, Tennessee, the Near East one is located in Dubai, and Subic Bay, Philippines acts as the Asian hub and, Roissy, France represent the European hub. These redistribution points act as bridges between international relations. Beside its strategic hub airports web, FedEx is present in more than 325 airports in 212 countries around the world.
Thirdly, the company is committed to delivering superior quality of products and services. It earned a reputation of a convenient and reliable brand that offers the lowest prices, one of the fastest and lowest shipping, widest selection of goods, and many additional features with its services.
Cost cutting; Technology plays a significant part in package delivery companies capability to assist customers in cutting their inventories which UPS owns. The UPS system processes packages using advanced information technology and are transported by the companies’ own aircraft, fleet or delivery vehicle so UPS does not rely on other companies.
Even environmental and social link in this case study of PESTLE Analysis factors. For the example of CO2 emissions, is an Environmental ingredient which has Political & Legal influence, it has an Social impact in the UK culture where the customer is more Green consumers they like to use the goods and services which are more eco-friendly which also have less impact on the environment study case
Outbound logistics: They are made up of centralized logistic centers to promote efficiency, global network, reduced emission of CO2 by 22% to ensure ecological sustainability and lastly to improve customer service.
the most when it comes to ethical business practices. In the long run, a company will reap great profits from a customer base that feels it is being treated fairly and truthfully.