Although the company relies on information technology it is not at the forefront so can adapt more slowly. There are limited political-legal and societal implications. The most important force -- economic -- does vary but the North American market is by far the most important. Jet fuel prices do not vary significantly from country to country.
Industry competition is driven by overall demand levels, price and service. These forces do not vary globally. There is low threat of new entrants due to high entry costs. Buyers have average buying power due to competition. There is a high threat of substitution from electronic communications and slower shipping services. Rivalry among firms is intense. Unions, governments, interest groups have low relative power.
Customers are the only immediate factor affecting FedEx, as they have curtailed spending on shipping. A major threat is that customers will find ways to reduce shipping permanently. An opportunity for FedEx is to build out internationally to find more customers. The most important factors going forward will be the development of new customers and the global economic recovery.
IV Strengths & Weaknesses
The corporation is structural primarily on divisional (functional) lines, with sub-groups for geography. Decision-making authority is centralized. The structure is understood by everyone in the organization and is consistent with the company's strategies and objectives, including international operations. Competing organizations have similar structures.
The corporate culture is well-defined and consistent with objectives. The culture is oriented towards addressing the important issues faced by the organization. It is compatible with diversity. It is compatible with FedEx values, not the values of the different countries in which it operates.
Corporate Resources
The firm uses promotions for its customers, and also utilizes extensive advertising campaigns. Performance expectations for these programs may be stated internally but externally is only implied from the budget and financial results. Marketing is consistent with the firm's objectives and environment. The company is performing well, growing market share, expanding its product mix and seeking synergies between business lines. Most products are in fairly mature businesses, but overall the firm is still experiencing slow...
Strategic Audit Format Strategic Audit Areas Describe Industry situation History, Development, Issues Milestones (Identify minimum four milestones (events) Past Issues/problems that the industry faced (Four to five issues) Current Industry Issues (Minimum three issues) Company situation History, development, problems Milestones (Minimum four milestones (events) Current Company Problems (Minimum three internal or external problems) Present strategic posture In the following sub-sections (a, b, c, and d), analyze the current vision/mission/goals/objectives/STRATEGIES / structure & culture of the firm Current vision/mission - The vision is to be a
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Also cited as threats are those of: (1) Product manufacturing and marketing risks; (2) Cost and expense control or unusual events; and (3) Changes in laws and accounting standards. (Pfizer Inc. Report to the United States Securities and Exchange Commission, 2008) IV. Internal Environment -- Strength and Weaknesses Stated as strengths of Pfizer Inc. are the following components of its organization: (1) Written policies and procedures; (2) a compliance officer and compliance committee; (3) Effective training
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