FEDEX COMPANY

The 21 Century Strategy for Fedex Company



The 21 Century Strategy for Fedex Company

Introduction

FedEx Corporation, formerly called FDX Corporation, is a global management services company providing customers and businesses with shipping, trade, and marketing services (www.fedex.com). It's also very focused on the impression it leaves with the people and places it serves, so it uses PEST (Political, Economical, Social and Technological Factors) to determine its market standing and what service improvements are necessary. This paper presents an evaluation and analysis on Fedex key business strategy in the 21 century and its strategic objectives which it hopes to achieve with those objectives.

Discussion

In the twenty first century, FedEx Express is redefining its business strategy in the country for the purpose of providing specialized services to cooperate with the expected growth of exports (Charles and Gareth 2004). From 1979 to 2001, the company FedEx has achieved such success:

The company's revenues have grown from 400 million to $ 22 billion a year.

Fleet has been expanded from 60 to 600 aircraft.

The average volume of cargo transported per day has increased from 60,000 to 3 million parcels.

Number of employees increased from 7000 to 200 thousand people.

Number of countries served has grown from a single (U.S.) to 215.

The magazine Fortune named the FedEx «The most beloved company in the world."

FedEx Company was named "best place of employment" in America, Canada, India, Brazil and Asia;

The newspaper Financial Times named the FedEx «The most respected company in the world."

In May 1983, FedEx became the first company that has reached the billion dollar profit in just ten years, based solely on internal growth and without having to acquire other firms. As a part of its new strategy, the company also launched a strategic alliance with the airline named Southern Winds (SW), in order to ensure greater penetration of international relocation services within the country. Southern Winds has a national network of 760 employees in 23 sales offices, 22 airports and 23 delivery centers in 19 provinces (Benson and Kinsella 2001). Through the understanding, which has no limitations in terms of weight of shipments, SW only sell within international transport services, FedEx Express. In turn, this company courier employ SW to move the load for the interior (Khan, Christopher and Burnes 2008).

Political Factors

Primary political factors affecting an organization are government rules and regulations. Being an international company, FedEx interacts with various nations around the world that don't enforce tough trade regulations, granting them the privilege of getting better international services. Some other political factors of concern are political stability, industrial limitations and business standards. FedEx is successful in serving the world because it strictly abides by all relevant laws.

Economic Factors

Inflation, exchange rates and interest rates are economic factors taken into consideration, for they have the potential to distress consumers. Depression in the market affects the financial assets of the company. It's both a positive and a negative for FedEx that it provides services around the world, since it must respond ...