Corporate Strategy Fedex

In: Business and Management

Submitted By abjab
Words 3569
Pages 15
Executive Summary
This report endeavors to look at FedEx from the strategic initiative point of view and how it was able to adapt to changing business environment to improve itself. While organisations the world over have come and gone a few leave a lasting footprint on the way they have moved in the particular sector. FedEx with its various innovative ideas has left lasting footprint that has forever altered the scope of service within the logistics industry.
From its humble beginnings as a delivery company, it has set itself up a global logistics and business services organisation that has shaken the belief held by behemoths regarding the level of innovation and service that they can offer to the customer base. With its out-of-box approach it has made industrial leaders like UPS, DHL etc, and look like new kids in the block. The strategic initiatives that the organisation has taken during various time a frame has exemplified the leadership ability of Mr. Smith to work toward uncertainly and how to respond to them.


A general assumption regarding strategy is that executives by applying a set of tools will be able to predict a future of any business clearly enough to choose a clear strategy or direction to adopt. This overall scenarios and assumptions made usually led to a layout of vision for the future with assumed precision. However, one needs to remember that when the time ahead looks uncertain this approach is at best only helpful marginally and may in fact sometimes be dangerous as underestimating certain factors will only expose the organisation to more uncertainty and may eventually lead to its decay. In the opposite end of the spectrum lies the scenario where managers would be unable to find a strategy that would work under traditional analysis and this would later on lead them to totally abandon the tools with presumptions that…...

Similar Documents

Corporate Strategy

...Corporate Strategy explores the question: In what set of businesses should a firm compete? Organizations routinely grow and change through merging with or acquiring other organizations, as well as through the internal creation of new divisions or subsidiaries. Through such activities, organizations can extend their core capabilities into new lines of business, expand their existing lines of business into new geographic areas, and improve the efficiency of existing businesses. Firms acquire, create, or merge with other organizations in order to improve the profitability of the overall corporation. The track record of corporate strategies, however, is not nearly as satisfying as its objectives. According to the best insights of research and practice, most mergers and acquisitions fail even to recover their costs. Hundreds of billions of dollars, against a base of a few trillion invested every year, are lost to poorly conceived or poorly executed corporate investments. For more than three decades, investors have routinely and systematically discounted the market value of acquiring or merging firms; nearly all gains in market value have gone to acquired firms, pre-merger or acquisition. This course is designed to introduce you to the central challenge of corporate strategy, which is the creation of a corporate advantage through investments in a set of businesses that are better off, individually or collectively, for being commonly owned. The goal is to deepen your...

Words: 376 - Pages: 2

Corporate Strategy

...CORPORATE STRATEGY Question 1 (25) "Porter's five forces model of industry competition is by far the most widely-used approach in industry and competitive analysis". Using Porter's five forces model, critically analyse Kulula's operation within the air travel industry. Competitive Analysis of Airline Industry Using Porter’s Five-Forces Model Rivalry within the Airline Industry: The nature of rivalry in the airline industry is extremely intense as there are several airlines operating in South Africa. Previous years the domestic airlines consisted of SAA, Comair, Nationwide and Sunair. They charged high prices and customers didn’t have much of a choice but to fly with one of these airlines which makes Kulula’s arrival a welcome new alternative. Larger rivals (SAA) were threatened by Kulula’s arrival and did not want to lose market share. They immediately countered the threat posed by Kulula by launching their “red-eye” campaign which was quickly countered by Kulula’s red-eye campaign and to date a there is a low-intensity price war between SAA and Kulula. Kulula aggressively compete with other airlines through offering the cheapest flights possible in South Africa via their online booking system. No unwanted extras, no free food or drinks in an effort to grab more customers than other competitors. They have to keep their flights more than 80% full in order to turn a profit a very tall order if one consider that other low cost carriers have folded...

Words: 619 - Pages: 3

Fedex Strategy

...FedEx Corporation Strategic Management Project Prepared for: DR. Robert Ch. Wood BUSINESS 189 – Strategic Management Prepared by: SAN JOSE CONSULTING GROUP: Billy CRANE Brad LANDTHORN Bob MIRI Jeremy RELPH Chris SANCHEZ Andrea VERNEROVA December 9, 2003 TABLE OF CONTENTS EXECUTIVE SUMMARY ……………………………………………………………… 3-5 Chapter I: HISTORY ……………………………………………………………… 6 -9 Chapter II: EXTERNAL ANALYSIS ……………………………………………….9-15 A. Industry Life Cycle B. Industry Dynamics C. Porter’s Five Forces D. Global Competition E. National Context F. Opportunities and Threats Chapter III: INTERNAL ANALYSIS ………………………………………………16-23 A. Competitive Advantage B. Distinctive Competencies C. Strategies D. Four Building Blocks E. Strengths F. Weaknesses G. Image Chapter IV: BUSINESS-LEVEL ………………………………………………………23-28 A. Business Level Strategy B. Issues in Differentiation C. Targeting Customer Needs D. Market Segmentation E. Differentiation of Quality F. Differentiation in World G. Advantages of Differentiation H. Impact of Strategy Chapter V: VALUE CHAIN ……………………………………………………… 28-34 A. Value Chain B. Product Technology C. Impact of National......

Words: 12466 - Pages: 50

Fedex Strategy Content Context and Process

...1. INTRODUCTION FedEx Corporation is a leading logistics services company, based in the United States. The previous names were Federal Express, Federal Express Corporation, and FDX Corporation. FedEx was found in 1971 by Frederick W. Smith in Little Rock, Arkansas ( The company officially began operations on April 17, 1973, with the launch of 14 small aircraft from Memphis International Airport. On that night, FedEx delivered 186 packages to 25 U.S. cities from Rochester, New York, to Miami, Florida. The FedEx headquarters then move to Memphis, Tennessee, and now the company had employed more than 290,000 workers. FedEx was the pioneer of the express transportation and logistics industry. In fiscal year 1983, Federal Express reported $1 billion in revenues, making American business history as the first company to reach that financial hallmark inside ten years of start-up without mergers or acquisitions ( 2. DESCRIPTION OF FEDEX’S STRATEGY CONTEXT BETWEEN 1973 - 2000 2.1. THE INDUSTRY CONTEXT “Know the other and know yourself: Triumph without peril. Know nature and know the situation: Triumph completely” (by Sun Tzu). If strategic management is concerned with relating firm to its environment, then it is essential to know this environment well. While the entire outside world was taken into consideration, emphasis was placed on the direct......

Words: 4388 - Pages: 18

Corporate Strategy and Hr Strategy

...“Linking Corporate Strategy and HR Strategy: Implications for HR Professionals,” In R. Padaki, N.M. Agrawal, C. Balaji and G. Mahapatra (eds.) Emerging Asia: An HR Agenda, New Delhi: Tata McGraw-Hill, 2005, pp. 215-223. Linking Corporate Strategy and HR Strategy Rishikesha T. Krishnan Associate Professor of Corporate Strategy Indian Institute of Management Bangalore Recognition of the link between corporate and business strategies and strategies related to the people function is not new. McKinsey’s 7-S framework that emphasised the need for the alignment of seven organisational variables (superordinate goals, strategy, structure, systems, staff, skills, and style) for organisational effectiveness is about twenty years old. But, during this time, the importance of people to organisational success has, if anything, only multiplied as businesses have become more knowledge- and technology-driven. As a result, even strategy gurus, who typically talk about esoteric topics like transnational corporations and integrated networks, today emphasise the importance of the “individualised corporation”. 1 In this paper, we attempt to integrate multiple perspectives on the links between corporate strategy and human resources strategy with the objective of giving HR professionals working within an organisational context some pointers on how they can contribute to better integration of corporate and business strategy with HR strategy. Corporate and Business Strategy Corporate strategy......

Words: 3258 - Pages: 14

Fedex Service Strategy

...------------------------------------------------- Fedex SWOT analysis July 14th, 2010 webmaster Leave a comment Go to comments Federal Express Corporation (Fedex) was established in 1973. Since then, Fedex had become a global logistics and supply chain management. The company had invested heavily in information technology systems. It had a powerful technical architecture that had the potential to pioneer in Internet commerce. However, there are some difficulties, the company’s logistic and supply chain operations have trouble to keep up the company’s image, The transportation volume growth was slowing down because the competitive industry was too intense. In early 2000 The company announced major reorganization within the entire Fedex family. Each five subsidiary companies was to function independently but to compete collectively. In order to analyze the situation carefully an external and internal analysis of the company and industry must be done so a complete picture of the industry could be understood. External analysis: Determinants of threat of new competitors: The global express transportation and logistic industry has a very high barrier to entry because it requires enormous capital resources, economies of scale and brand identity. Large firms have a cost and performance advantage in the industry. All of the established firms had a very strong foothold in the global market as they have established brand identities. There are economies of scale in the industry:...

Words: 1400 - Pages: 6

Corporate Strategy Strategic Principles • Identify the strengths and weaknesses of a particular corporate strategy • Stakeholder engagement and growning power of civil society • Process by which strategic vision is conceived, communicated and institutionalized CSR Models Position Minimalist Self interested Responsible to Stockholders/ owners therefore… Maximizing profit Stockholders/ owners/ Do good when cost “controllers” furthers quest for growth and profit Those with social and legal contract Those who influence direction and fortunes Society as whole / future Goes beyond law to spirit of commitment Develop responsive strategies Solutions for social problems Social contract Stakeholder Management Stakeholder stewardship Strategy Tripod market based view resource based view Strategy performance institution based view Peng et al, 2009 Integrated Strategy Market analysis Management nonmarket analysis Market strategy proces Integrated Strategy nonmarket strategy proces Market environment Nonmarket environment Investment Fund: Will you invest in this company? Questions • What was Monsanto’s strategy and Why? • What were the implications of this strategy for the company? • Having the benefit of hindsight, what should Monsanto’s sustainability strategy have been back in 1995? What should Monsanto have done to implement this strategy during the first 5 years? Strategic dissonance Burgelman and Grove, 1996 The......

Words: 319 - Pages: 2

Corporate Strategy

...MBA 685 Corporate Strategy Strategic thinking What is strategic thinking? The term ‘strategic’ has become a much over-used word in business today. You may have observed that the term is increasingly attached to people’s job titles and is used to dignify roles and elevate the status of projects that might otherwise not be regarded as sufficiently important. The dilution of the term strategic is unfortunate because one of the key functions of general managers in all organisations is to engage in strategic thinking. Strategy has a long heritage. The word ‘strategy’ comes from the Greek word for generalship. This betrays the origins of strategy, which lie in the military. Indeed, long before companies were said to have strategies, strategy was a well-developed art within the military sphere. The first writer on strategy is generally held to be the Chinese philosopher, Sun Tzu, whose most popular work, The Art of War, is widely read to this day (Sun Tzu, 2005). In Sun Tzu’s view, the art of generalship was about outmanoeuvring your opponent, convincing them that you were strong in places where you were weak and, conversely, that you were weak in places where you were strong. It was about luring the opposition into a position of weakness before battle was engaged, so that even if you possessed weaker forces, you could overcome the enemy through guile and cunning. Military writers often make a distinction between strategic decisions and tactical......

Words: 6213 - Pages: 25

Corporate Strategy

...analysis. This is a business tool in which each of the letters in PESTEL describes a type of change that takes place in the external business environment. Many of these external changes may be outside the control of the company, for example, new government legislation. Some changes may present a threat to the business, such as a competitor using new or improved technology. Social changes may bring opportunities, for example, migrant workers bringing new skills to the employment market. Environmental impacts, such as those caused concern to businesses like First. A business must assess what external changes are likely and which it needs to react to or take advantage of. Business planners can then create strategies to help the business respond effectively. We use the term ‘ business strategy’ refer to a plan for a group of related products. First’strategy to s relates to its transportation plans and takes into account all of the PESTEL factors in its environment. Political and economic factors Political Transport services are at the heart of the UK economy - moving people to work, home and school, and goods to households and businesses. In the 1980s, the government started to privatise bus services in the UK. It believed that allowing private firms to compete to run bus services would keep prices low and ensure companies would try harder to give customers what they wanted. The result has been more efficient, innovative and sustainable bus services. Government operates at two......

Words: 4196 - Pages: 17

Corporate Strategy

...Evaluate the corporate strategy based on recent financial performance. When Kazuo Hirai replaced Howard Stringer as CEO in 2012, an announcement of its “new corporate strategy” was also made. This comprised of five initiatives which Sony would undertake, primarily revolving around the strengthening of its core businesses of digital imaging, game, and mobile. Based on the performance reported in 2013, in table below, we can clearly see the changes for each segment Segment | Sales | Operating Income | | 2012 | 2013 | Y-o-Y % | 2012 | 2013 | Y-o-Y % | Imaging Products & Solutions | 761.3 | 730.4 | -4.1% | 18.6 | 1.4 | -92.5% | Game | 805 | 707.1 | -12.2% | 29.3 | 1.7 | -94.2% | Mobile Products & Communications | 622.7 | 1257.6 | 102.0% | 7.2 | -97.2 | -1450.0% | Home entertainment & Sound | 1283.2 | 994.8 | -22.5% | -203.2 | -84.3 | 58.5% | Devices | 1026.6 | 848.6 | -17.3% | -22.1 | 43.9 | 298.6% | Pictures | 657.7 | 732.7 | 11.4% | 34.1 | 47.8 | 40.2% | Music | 442.8 | 441.7 | -0.2% | 36.9 | 37.2 | 0.8% | Financial Services | 871.9 | 1007.7 | 15.6% | 131.4 | 145.8 | 11.0% | All figures other than percentages are in Yen (billions) | Perhaps the most interesting observation would that despite a 102% growth in sales for Mobile Products & Communications, there was a -1450% decline in operating income. This could be on account of investments made by the company to strengthen this particular segment, in keeping with the corporate strategy......

Words: 1306 - Pages: 6

Corporate Strategies

... Siemens Corporate Strategies: A Siemens AG Case Study Jeff Head Loyola University Chicago Foundations of Organization CPST 250 Dr. Marilyn Stocker February 13, 2015 Siemens AG, An Organizational Analysis “Siemens is a global technologies company comprised of 343,000 employees worldwide” (Karczewski, 2014). For the purpose of this paper an analysis of the company will be presented, to include a look at the company mission, human resources, markets, products offered, recent financial performance, and how engineering plays a major role in Siemens AG. Description of the Organization In 2013, Peter Loscher was replaced as CEO of Siemens AG by the current CEO Joe Kaeser. The following year Kaeser presented “Vision 2020”, a comprehensive plan to get the company back on track. This vision provided focus on the company’s path, positioning, culture and strategy. The strategic framework to support the vision centered on the company with four contributing elements: Customer and Business Focus, Governance, Management Model and Ownership Culture. Siemens History and Operations “Siemens was first founded in 1887 and started to expand with mass production and established a branch in Saint Petersburg and London for Russian lines and English lines” (Choudhary, 2013). It increased its production and started producing electrical power, lighting, and other advances after the Industrial Revolution, which enabled it to gain strength. After the end of World War II, it faced expropriation of......

Words: 3176 - Pages: 13

Corporate Strategy Originally a mechanical pencil maker, the company has, now, long been known for consumer electronics, namely their TVs. With their consumer-electronics suffering, and reporting of a $5.3 billion net loss, the company could be forced to shift their corporate level strategy. Sharp has started a project in which they will be growing strawberries in a controlled location near Dubai. They will be gathering data on how its cultivation techniques work to “achieve stable production of high-quality strawberries.” The company will not enter the business of selling strawberries, but rather an agricultural engineering business that will focus on technology to monitor growing conditions. With that said, Sharp is shifting from consumers to business customers. Sharp’s concentration is horizontal expansion. It isn’t really addressed in the article, but they have expanded into new segments within their core industry. One example would be Sharp’s TVs, they are in both high-end and low-end segments. Related diversification is present in Sharp because the same management is making the decisions. This creates synergy from within the corporation because managers and employees are applying their expertise for innovation and the shift in strategy. From previous knowledge of the company, Sharp also is a hybrid diversification company. They not only have a line of TVs, they are also in audio, mobile, and appliances. These different segments, within consumer-electronics, are completely......

Words: 1352 - Pages: 6

Corporate Strategy

...* Corporate Strategy is the growth design of the firm; it spells out the growth objective of the firm – the direction, extent, pace, and timing of the firm’s growth. It spells out the strategy for achieving the growth. * It is the strategy developed and implemented to the goals set by the company’s business policy. As a company-wide strategy, corporate strategy is concerned primarily with answering the question “what set of businesses should the company be in?” and should be distinguished from business strategy, which focuses on answering the question “how to build a sustainable competitive advantage in specific business or market?” More specifically, corporate strategy can be defined as the way a company creates value through the configuration and coordination of its multi-business activities. * Corporate strategy is concerned with the choices of businesses, products and markets. These are the following points of corporate strategy: * It can also be viewed as the objective-strategy design of the firm. * It is the design for filling the firm’s strategic planning gap. * It is concerned with the choice of the firm’s products and markets; it actually denoted the changes/ additions/ deletions in the firm’s existing product-market postures. It spells out the businesses in which the firm will play, the markets in which it will operate and the customer needs it will serve. * It ensures that the right fit is achieved between the firm and its......

Words: 258 - Pages: 2

Management and Strategy of Fedex Corporation

...Question One: “FedEx has built superior physical, virtual and people networks not just to prepare for change but to shape change on a global scale…FedEx is not only reorganizing its internal operations around a more flexible network computing architecture, but it’s also pulling-in and in many cases locking-in customers with an unprecedented level of technological integration (Janah and Wilder, 1997; Annual Report 1999; cited in De Wit and Meyer, 2004, p.647).” In the context of the above statement, critically analyse the Global express transportation and logistics industry in which FedEx operates using Porters Value Chain and Five Forces frameworks. From the results of your analysis evaluate the ‘core competencies’ and ‘dynamic capabilities’ that enabled FedEx to build an efficient and effective transportation, logistics and a virtual information infrastructure. [35 % marks] Question Two: Discuss the events leading up to the January 2000 reorganisation in the context of FedEx’s three major strategic initiatives: (1) A new branding strategy that involved changing the Company’s name to FedEx Corporation, and extending the ‘FedEx’ brand to four of its five subsidiary companies; (2) The need for one point of access to sales, customer services, billing and automation systems (3) A new low-cost residential delivery service, FedEx Home Delivery (De Wit and Meyer, 2004, pp. 657-661). Your answer should be based on a critical review of FedEx’s...

Words: 448 - Pages: 2

Strategies of Fedex and Ups

...The contrasting strategies Analyst felt that FedEx and UPS established themselves in China till the late 1990s following different corporate styles. While FedEx believed tackling foreign competition head-on, UPS believed in partnering with them. UPS, was happy to enter into lease agreements with other companies already having its presence in China. While FedEx’s main thrust was on capturing the accounts of its multinational customers operating in China, UPS tried to build an image of a local company. Advertising and promotion However, during the late 1990’s, as the competition in the logistics business in china intensified, both FedEx and UPS started emphasizing on promotion to attract Chinese customers. Till the late 1990s there was a marked distinction in the approach of FedEx and UPS towards advertising and promotion in China. FedEx followed an approach which emphasized on heavily publicizing its services offering in China. It launched intimidating ad campaigns to attract customers. One of the ad’s showed the tail of a FedEx plane parked in front of a forbidden city saying, “ Call FedEx , it’s almost forbidden not to.” FedEx stressed on promoting its service offerings and enhancing brand awareness among the customers in China. For this purpose, it hired a popular media partner, OMD based in Hong Kong. On the other hand UPS emphasized less on advertising because it preferred to project itself as a local company, but still it held up a six-week T.V......

Words: 860 - Pages: 4

Life is Wild | Donju (Movie) | How I Met Your Mother – HD – DUB/LEG Online