FedEx Corporation
FedEx

Company Overview

FedEx is a global organization that provides wide variety of business portfolio such as e-commerce, transportation and business services. FedEx operates and competes effectively under collective brand names such as FedEx Express, FedEx Freight, FedEx Ground, and FedEx Kinko's.

The objective of the paper is to provide comprehensive report on FedEx that include FedEx's strategy for success in the marketplace and the company four main business strategy. The report uses FedEx's Form 10-K fiscal year to answer the following 7 questions.

"What is FedEx's strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operations excellence, or product leadership customer value proposition? What evidence supports your conclusion?"

Answer to

FedEx strategy is by building a strong brand to enhance customer experience as well as enhancing capabilities of the company sales professional. The company relies on the combination of value proposition, customer intimacy, operational excellence and product leadership…...

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References

Noreen, E., Brewer, P. And Garrison, R. (2011). Managerial Accounting for Managers. McGraw Hill Irwin. New York.

SEC (2005). Form 10-K FedEx Corporation. United States Security Exchange Commission.

FedEx Corporation is a logistics services company based in the United States. It was founded in Little ock, Arkansas in 1971 by Frederick W. Smith and since then has grown into a multibillion-dollar company with aerial and terrestrial forces that cater to almost 6 million packages per day. The company's headquarters are currently in Memphis, Tennessee. Originally known as FDX Corporation, it was renamed to FedEx Corporation in January 2000 and all of its subsidiaries were rebranded. The name FedEx is actually an abbreviation of the company's original air division "Federal Express."
FedEx Corporation allows customers and businesses the world over to choose from a wide variety of transportation, e-commerce and business services. Boasting annual revenues of $40 billion, the company offers integrated business applications under the respected FedEx brand. FedEx has consistently ranked among the world's most admired and trusted employers, and sports a massive workforce of more than 290,000…...

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References:

All, A. (2009, December 07). [Web log message]. Retrieved from  http://www.itbusinessedge.com/cm/blogs/all/FedEx-makes-smart-use-of-sensors/?cs=37952 

Birla, M. (2005). FedEx delivers: How the world's leading shipping company keeps innovating and outperforming the competition. (1 ed.). Wiley.

Ryan, S. (n.d.). FedEx's monitor and pc power management initiatives save $1 million a year.

Retrieved from  http://www.energystar.gov/ia/products/power_mgt/downloads/FedEx_Case_Study.pdf

FedEx was founded by Fred Smith after his tour in Vietnam, and he continues to run the company today, as the only CEO that FedEx has ever known. The company began by offering overnight courier services, an industry that to that point had not existed. Today, that unit is known as FedEx Express and it is still the largest in the company. There are competitors, however, mostly notably UPS, DHL and TNT. In most estern markets, the industry is relatively concentrated, with these companies and a few local competitors (such as Purolator in Canada) dominating the business. In the developing world, there may be more competitors and the industry less concentrated. FedEx remains a strong competitor in the overnight delivery industry. Today, industry growth is concentrated on emerging markets. As such, most of the notable moves from FedEx Express have related to these markets. Recent moves in China for example…...

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Works Cited:

Ashby, A. (2011). FedEx Express launches new delivery service in India. Memphis Business Journal. Retrieved October 15, 2011 from  http://www.bizjournals.com/memphis/news/2011/10/04/FedEx-express-launches-new-delivery.html 

Berman, J. (2011). FedEx Express expands in Suzhou, China. Logistics Management. Retrieved October 15, 2011 from http://www.logisticsmgmt.com/article/FedEx_express_expands_in_suzhou_china/

FedEx. (2007). FedEx Express responds to growth of Brazil, South Cone with greater access for local markets. FedEx Brazil. Retrieved October 15, 2011 from  http://news.van.FedEx.com/international/br?node=5688 

FedEx. (2011). FedEx earns top ten spot on Fortune's World Most Admired Companies List. FedEx Press Release. Retrieved October 15, 2011 from  http://news.van.FedEx.com/fortunemostadmired2011

FedEx
In the case of FedEx, some elements of its business would be subject to regulatory oversight from the Department of Justice, which enforces the nation's antitrust statutes. These laws exist to protect consumers from unfair business practices. If the DoJ were to be involved in a FedEx merger this might imply that the company was attempting to merge with UPS. The result of that merger would be to take the industry from oligopoly to a virtual monopoly. The only remaining players would be DHL and TNT, and a handful of local firms. This would provide insufficient competition, as per Section 7 of the Clayton Act (FTC, 2013). Antitrust laws serve to protect consumers from monopoly abuse. It is entirely likely that such abuses would occur if there are no major competitors. Many customers of this industry would be forced to deal with the combined entity, and this lack of competition…...

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References

CFR. (2013). U.S. antitrust policy. Council on Foreign Relations. Retrieved December 10, 2013 from  http://www.cfr.org/corporate-regulation/us-antitrust-policy/p29984 

Friedman, M. (2013). The social responsibility of business is to increase its profits. New York Times Magazine. Retrieved December 10, 2013 from  http://www.colorado.edu/studentgroups/libertarians/issues/friedman-soc-resp-business.html 

FTC (2013). Mergers. Federal Trade Commission. Retrieved December 10, 2013 from  http://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/mergers 

Investopedia. (2013). Definition of agency theory. Investopedia. Retrieved December 10, 2013 from  http://www.investopedia.com/terms/a/agencytheory.asp

02143
USD Rate

CAD

1

1.019015

0.00861

0.011

2

1.022995

0.01315

0.0116

3

1.027413

0.01833

0.0124

4

1.030542

0.02244

0.0134

5

1.03375

0.02623

0.014

6

1.033257

0.02827

0.0165

These figures that be used to convert the CAD cash flows into future USD.

According to the FedEx 2010 Annual Report (p.49), the company's discount rate for internal usage is 12%, so that is the discount rate used in this example.

The prospect of higher inflation in the future has already been accounted for. The discount rate factors in future inflation, as does the interest rates that are used in interest rate parity. Thus, the net present value of the project already reflects expectations for future inflation in both the U.S. And in Canada. No further accounting of inflation expectations should be done. The basic figures initially presented of course do not factor in inflation, which is why I have added the discount rate and the expected future interest rates. Those are essential in accounting for the effects of inflation.

Memo:

It is recommended that FedEx Canada proceed with the Toronto expansion. The…...

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Works Cited:

FedEx Q4 2010 Fiscal Statistics. In possession of the author

FedEx 2010 Annual Report. In possession of the author

FedEx Corporation Complete Exercise
• What is FedEx's strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operations excellence, or product leadership customer value proposition? What evidence supports your conclusion?

FedEx relies on a product leadership approach for their success. The company commands four different market businesses, but has focused on keeping the businesses seamless and working together. According to their report, "We believe that sales and marketing activities, as well as the information systems that support the extensive automation of our package delivery services, are functions that are best coordinated across operating companies. Through the use of advanced information systems that connect the FedEx companies, we make it convenient for customers to use the full range of FedEx services. We believe that seamless information integration is critical to obtain business synergies from multiple operating units."

• What are FedEx's four main business segments? Provide two examples…...

Score cards for the first level would be handed out and the program and the prizes explained. The start date would be set starting the day that the employee gets their score card. Each score card would require three months of consistent metrics in order to be signed off by the employee's supervisor. Once signed off, that employee receives their rewards at a monthly group award meeting.
orks Cited

"Case Study: A Great Place to ork." FedEx Express. Retrieved 28 March 2012 from http://printfu.org/read/case-study-a-great-place-to-work-a761.html?f=1qeXpurpn6ih-SUpOGumainh6-wyaqUu7nFtsKolKeVtLexsMqFxLSms7eJwsOGzLy3t5Gx2K6Zn5LYi6nnoKumn47X6tnkopSf5M7h49vn0Mrfnd3X2cnZ4N7K0dna5OTU3tqkyOPVlN7X4OGj1tnTlNLU2srsx9Xi19zT4tr4c7b3aTV2M6Hq-8

"Compensation and Rewards." FedEx Express. Retrieved 28 March 2012 from http://www.FedEx.com/cn_english/careers/compensation.html

"FedEx Attributes Success to People-first Philosophy." FedEx Express. Retrieved 28 March 2012 from http://www.FedEx.com/eg/about/overview/philosophy.html

"FedEx Salaries." Glassdoor. Retrieved 28 March 2012 from http://www.glassdoor.com/Salary/FedEx-Salaries-E246.htm

"Larry D. Cox, a.A.E. Memphis-Shelby County Airport Authority." FedEx Express. Retrieved 28 March 2012 from http://printfu.org/read/larry-d-cox-a-a-e-memphis-shelby-county-airport-authority-df2e.html?f=1qeXpurpn6ih-SUpOGunKnh7jQ6NftiKmekqzd7JKVrpOtnbuTlLXK3eLR1-eTyNXK2NHvhbfX2t7m4o61z-fd1N7jlqbp3M3f5NLi7Yiw4J-dqZjLlqPYqqmZqJbO6eHVpp6l3Ovfk9HV0pvix6Pc19Oe6dnV3M7Toc7c6Nj29jV46x1drX6ZebnrfV7dnRmcLm0Oaqzt-fr9fix-Gb1dDVmKDx

"Recognition for FedEx." FedEx Express. Retrieved 28 March 2012 from http://www.FedEx.com/gh/about/recognition.html

Smith, Federick (2008). hat the Marine Corps Taught Me Can Be Seen…...

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Works Cited

"Case Study: A Great Place to Work." FedEx Express. Retrieved 28 March 2012 from  http://printfu.org/read/case-study-a-great-place-to-work-a761.html?f=1qeXpurpn6Wih-SUpOGumainh6-wyaqUu7nFtsKolKeVtLexsMqFxLSms7eJwsOGzLy3t5Gx2K6Zn5LYi6nnoKumn47X6tnkopSf5M7h49vn0Mrfnd3X2cnZ4N7K0dna5OTU3tqkyOPVlN7X4OGj1tnTlNLU2srsx9Xi19zT4trW4c7b3aTV2M6Hq-8 

"Compensation and Rewards." FedEx Express. Retrieved 28 March 2012 from http://www.FedEx.com/cn_english/careers/compensation.html

"FedEx Attributes Success to People-first Philosophy." FedEx Express. Retrieved 28 March 2012 from http://www.FedEx.com/eg/about/overview/philosophy.html

"FedEx Salaries." Glassdoor. Retrieved 28 March 2012 from  http://www.glassdoor.com/Salary/FedEx-Salaries-E246.htm

A fourth weakness is the declining level of business services sales during one period of the case study, brought about by the economic recession impacting areas of the global economy unevenly.
Opportunities

FedEx can expand significantly more into the highest-growth economies of the world by pursuing more acquisitions in specific logistics and transportation management companies. As one of their core strengths is growth through acquisition, the company needs to consider how to more fully support their growth potential in China and India especially. Their growing base of operations in ussia could further be supported by moving into ancillary businesses there. The continual refinement of Boeing aircraft and their supporting technologies shows significant potential as well, in addition to the strategy of consolidating jet aircraft models in their fleets. This is a critical success factor for driving down costs, as Southwest Airlines readily learned from their standardization on the Boeing 737. Another…...

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References

Alghalith, N. (2007). FedEx: Leveraging it for a competitive advantage. The Business Review, Cambridge, 8(1), 296-304.

FedEx
Applying Strategic Market Planning to FedEx

Marketing Foundations

FedEx (NYSE: FDX) is one of the leading providers of global logistics services to the Business-to-Business (B2B) and Business-to-Consumer (B2C) marketplaces globally. FedEx is particularly strong in the U.S. where 73% of total revenues in their latest fiscal year were generated (FedEx, 2010). FedEx's approach to marketing is to accentuate the role of trusted advisor in shipping, 3rd party logistics (3PL), and supply chain services (Trunick, 2004). The company has been very successful with their branding and marketing strategy efforts, being consistently recognized as one of the top ten brands in the world every year by Fortune Magazine during their annual surveys (Elmer-DeWitt, Birger, Colvin, Quittner, Taylor, Boyle, Hira, Murphy, Simons, McLean, Schlosser, Gimbel, Gumbel, Kapner, Schknder, Fortt, 2008). FedEx successfully uses integrated marketing communication (IMC) strategies to accentuate and strengthen their brand's image and reputation as being fast, very trustworthy and accurate in…...

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References

Nabil Alghalith 2007. FedEx: Leveraging IT for a Competitive Advantage. The Business Review, Cambridge 8, no. 1 (July 1): 296-304.

James C. Anderson, James A Narus, Wouter van Rossum. (2006). Customer Value Propositions in Business Markets. Harvard Business Review, 84(3), 90-99.

Lora Cecere, Roddy Martin, 2006. What is Demand Visibility? AMR Research Report. Published March 14, 2006.

R Bhardwaj, K Momaya. 2006. Role of Organizational Flexibility for Corporate

FedEx Corporation offers worldwide delivery services in the overnight and ground businesses, along with other related logistics services. The company operates around the world, utilizing either wholly-owned subsidiaries or service partners to gain market entry. If the company is considering making an investment in a foreign country, it can start by determining the cost of capital. Most of the company's business is in the U.S., so the domestic cost of capital is applicable. There are different methods of financing that could be used to fund the expansion, debt or equity. Debt financing has the benefit of a lower cost but it also increases the risk that the company faces. Equity financing has a higher cost but carries with it less risk, since less of the company's cash flows are going towards debt service. Moreover, if the company wants to match the term of the financing with the term of the…...

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References

MSN Moneycentral. (2014). FedEx Corporation. Retrieved January 23, 2014 from  http://investing.money.msn.com/investments/stock-balance-sheet/?stmtView=Qtr&symbol=FDX 

Robinson, M. (2014). FedEx sells $2 billion of debt in three parts, credit swaps hold. Bloomberg. Retrieved January 23, 2014 from  http://www.bloomberg.com/news/2014-01-06/FedEx-said-to-plan-2-billion-bond-offering-credit-swaps-hold.html

FedEx is in the global logistics industry, and offers a wide range of products and services within this space. The major business units are Express, Ground, Office, Custom Critical, Freight, SupplyChain and Trade Networks. The major business is Express, which is the overnight courier business. FedEx pioneered this service and remains the global leader in overnight shipping. While most subsidiaries are based in the United States, Express operates globally, spanning a network of stations in 220 countries and territories. Most regions of the world can be reached within 1-3 days. Ground operates in the U.S. And Canada, serving business and residential customers with slower shipping times. FedEx Office used to be Kinko's, and is an international office services chain. The other businesses encompass a wide range of solutions including LTL (less than truckload) shipping, customs clearance and sophisticated supply chain solutions, primarily to very large or multinational clients.
The unifying aspect…...

FedEx is a worldwide delivery service specializing in the transportation of parcels and packages, and is the largest express transportation company with about 30 per cent of the market share. ince its founding in 1973, FedEx has done business with an eye to technological improvement. When it became one of the first companies to do business using the Internet in 1994, it was considered one of the only companies to whom the nature of the Internet as a medium for interaction was relevant. The reason for this was obvious: the development of the Internet as a medium for the sale of goods necessitated world-wide package delivery. FedEx had been one of the first companies to develop a computer network that was used to track its products.
The case study addresses how FedEx transformed itself into an e-business by integrating physical and virtual infrastructures across information systems, business processes and organizational bounds.…...

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Strategies implemented at Federal Express in the late 1990's to cope with the increasing importance of E-commerce were among the best; FedEx considered itself an innovator in this field. Among the most significant was to transition FedEx'es entire system of computers online through Project Grid; replacing 60,000 dumb terminals and some PCs with over 75,000 network systems. This is essential in that many inventory systems now use SQL server, SAP R/3 and other comprehensive systems in order to manage shipments and maintain active just in time delivery systems. Federal Express implemented its COSMOS online tracking system in addition to its hub-and-spokes model of global distribution.

Strategy Implementation.

The key hurdle that FedEx faced in 2001 and 2002 was that of its' customers facing curtailed revenues. However, whereas these customers' other vendors, like advertising concerns, suffered heavily, FedEx was able to convince clients of the essential nature of its business, allowing the company to double its market capitalization at a time when many companies ceased to exist.

FedEx Situational Analysis
Conduct a situational analysis for FedEx. What are its internal strengths and weaknesses? What strategic opportunities and threats does it face? Think SWOT analysis.

FedEx has evolved into one of the most powerful freight and courier service providers, in addition to providing world class logistics and business support. It's core strengths in logistics and supply chain management continually lead the U.S. And global air express industry (Pettus, 2006). The company is organized into the divisions of FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services, Uniting all of these diverse divisions into a single unified identity has been possible through the use of world class branding and marketing. FedEx has one of the strongest brand images globally today, instantly recognized and considered a global leader in brand management (Murphy, 2011). In addition their strength in branding, they have been able to attain a very large scale operation in logistics…...

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References

Murphy, C. (2011). FedEx CIO explains the real power of cloud. InformationWeek, (1291), 18-19.

Oster, C.V., Rubin, B.M., & Strong, J.S. (1997). Economic impacts of transportation investments: The case of federal express. Transportation Journal, 37(2), 34-44.

Pettus, M.L. (2006). Structural transformation of the U.S. air express industry. Journal of Transportation Law, Logistics, and Policy, 73(2), 261-265.

Viaene, S., & De Hertogh, S. (2010). Enterprise-wide business-IT engagement in an empowered business environment: The case of FedEx express EMEA. Journal of Information Technology, 25(3), 323-332.

The response to this challenge is a twofold one -- the first approach sees that the PacEx representatives assess the market conditions (including the legislation) and promote the company efforts in full accordance with local customs and norms. Secondly, it is necessary to approach the local authorities and promote the PacEx agenda as being beneficial for Kava as it creates more jobs, increases the living standards of the population and sustains their professional formation.
esource equirements

In implementing the recruitment and training plan for the Federal Express offices in Kava, it is necessary to make use of several resources, succinctly presented below:

in order to ensure the success of the campaign through sustained guidance, it is necessary to get the assistance of the marketing specialists in the FedEx headquarters to create and air the campaign, select the candidates and hold interviews, it is also necessary to get the support of the FedEx…...

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References:

Sechler, B., June 9, 2009, FedEx Begins Campaign Against Labor Bill, the Wall Street Journal, p. B5

2006, FedEx Announces Retirement Contribution Freeze, FedEx Watch,   / last accessed on August 21, 2009http://FedExwatch.com/content/pages/FedEx_announces_retirement_contribution_freeze 

2009, FedEx Careers, FedEx Website, last accessed on August 21, 2009http://FedEx.hodesiq.com/careers/about_us.aspx?User_ID=&Locale=en

FedEx
The organization in question is FedEx Express, the overnight courier company. The company operates a global network for picking up and distributing packages and envelopes. Most of its major fixed assets are its stations, its aircraft and its fleets of vehicles. The company's business is highly correlated with the state of the global economy, and as a result FedEx must continually adapt its capacity in different regions according to the demand conditions in those regions. For example, the company has expanded significantly in China over the past twenty years, to meet the shipments of products to and from that country.

One recent decision that can be evaluated for costing is the decision to introduce the new Boeing 777F to the company's fleet. Adding new aircraft or vehicles to the fleet represents a significant challenge, because the maintenance department must have more parts, new training and possibly even new facilities to handle…...

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Works Cited:

FedEx Corp. (2011). FedEx United Kingdom news. FedEx Corporation. Retrieved May from  http://news.van.FedEx.com/international/gb?node=17164 

SCDigest. (2010). Global logistics news: FedEx thinks new Boeing 777 fleet is a "game changer" in air freight out of Asia. Supply Chain Digest. Retrieved May 16, 2012 from  http://www.scdigest.com/assets/On_Target/10-07-15-1.php?cid=3584

Delivery Process Outline Differences between USPS and Other Courier Services

The United States Postal Service (USPS) and private courier services like FedEx, UPS, and DHL operate under distinct delivery process outlines that impact their service offerings, efficiency, and cost structures. Here are the key differences between the USPS and other courier services:

1. Delivery Infrastructure:

USPS: The USPS possesses an extensive network of post offices, distribution centers, and dedicated delivery routes that span the entire United States. This vast infrastructure allows the USPS to deliver to every address in the country, including remote and underserved areas.
Courier Services: Private courier services typically....