Fedex Strategic Management

1. Introduction and summary company profile

1.1 FedEx Corporation

FedEx is a shipping organization which provides services to businesses and customers all over the world. FedEx was incorporated in 1997 to serve as the holding company parent of FedEx Express and each of their other operating companies, FedEx Express, FedEx Ground, FedEx Freight, FedEx Kinko's Office and Print Services, FedEx Custom Critical, FedEx Trade Networks and FedEx Services.

The company offers time-certain delivery of envelopes, packages, multi-piece shipments and freight up to 150lbs., within one to three business days. It expanded its operations into Europe and the Far East through its acquisition of Gelco International and Tiger International.

With increasing globalization and intense competition among rival companies such as UPS and DHL, the 21st century is a challenging era for FedEx and it needs a strategic management approach to address the fundamental challenges facing FedEx today.

Strategic management is a process of analyzing the current situation, developing appropriate strategies; putting those strategies into action; and evaluating, modifying, or changing those strategies as needed. Strategic management provides an organization with consistency of action and helps ensure that all organizational parts are working toward the same objectives and purposes.

Strategic Management Model

ANALYSE CURRET STATUS

Identify mission

Identify Diagnose

Present and Past Present and Past

Strategy Performance

EXAMINE PROSPECTS FOR THE FUTURE

Set long-range

objectives

Environmental Internal

analysis analysis

SET THE FUTURE COURSE

Compare strategic alternatives

Corporate Business

alternatives alternatives

PUT THE STRATEGY TO WORK

Functional strategies Organization factors

EVALUATE AND CONTROL THE STRATEGY

Identify trouble spots

The strategic management process illustrates the five major segments of this process which are:

1. Analyzing the current status

2. Examining the prospects for the future

3. Setting the future course

4. Putting the strategy to work

5. Evaluating and controlling the strategy

The logic behind this breakdown is as follows. FedEx must first analyze and clear understand the current status. Once FedEx has a firm grip on its present status, it is in a position to examine its prospects for the future. After its prospects have been identified, FedEx must set its future course through careful evaluation and choice of alternatives. FedEx then implements the chosen strategy. In the final stage, FedEx evaluates and controls the selected strategy.

2. Strategic Analysis

Strategic analysis is an analysis of the strategic position of the organization with regard to its external environment, the competencies and internal resources at is command, and the influence and expectations of its stakeholders involve:

* Assessing the nature of the environment

* Auditing environmental influences

* Identifying key competitive forces

* Identifying competitive position

* Identifying key opportunities and threats

.

Environmental Analysis Model

2.1 Assess and audit the environment

No organization exists in vacuum. FedEx is affected by (and in many ways will affect) the environment in which it operates. Hence, the most promising path for FedEx to follow in pursuit of its objectives depends on its internal capabilities and on a complex series of interactions and relationships with forces external to the organization.

The first step is to assess the nature of the environment and then audit environmental influences. This will identify which political, economic, social and technological influences are likely to affect FedEx's development or performance. The industry and the financial performance will also be analyzed using a balanced scorecard to highlight issues such as financial, customer, internal process and growth. This is used to determine cause-effect relationships. This also helps FedEx to list measures for each goal and outline initiatives to achieve those goals. This will enable FedExto take necessary action to enhance the organization's performance.

2.2 Industry analysis

The shipping services industry in which FedEx operates is in the mature stage of the industry life cycle with few established competitors such as UPS and DHL with their own loyal customers. This is a dynamic industry with customers such as small businesses, global corporations and e-commerce companies. The Internet has reshaped this industry. FedEx has established tracking applications website which offers to its customers the facility order via the internet and they can receive shipping status information at any time. However, the competitors are also implementing new technologies in doing