fedex corporation

Strategic ManagementProfessor: Vahid Victor Keyhani

Group 3Nguyễn Thị Trà My - 332953Trần Quang Khôi - 332969

Ngô Thùy Phương Thảo - 332942Nguyễn Trọng Tấn - 332955Phạm Thùy Trang - 332964Đào Ngọc Lan Đài - 332929

Trần Ái My - 332966

Contents 1. Introduction: Overview, Mission & Vision Statements2. Company history3. Corporate social responsibility (CSR)4. Scope5. Operations 6. Competition7. Marketing & E-commerce8. Recommendations9. Conclusion - References

1. OVERVIEW - MISSION & VISION STATEMENTS

COMPANY OVERVIEW• FedEx Corporation (FedEx)

is a provider of transportation, e-commerce and business services.

• The company offers:– time certain delivery services– international trade services– in-store services– online services– business solutions

• FedEx operates through four segments.

COMPANY OVERVIEW• FY15 Revenue: $47.5

billion• Team Members: More than

325,000• Countries and Territories

Served: More than 220

Mission Statements

• FedEx Corporation will produce superior financial returns for its shareowners by providing high value-added logistics, transportation and related business services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served. FedEx will strive to develop mutually rewarding relationships with its employees, partners and suppliers. Corporate activities will be conducted to the highest ethical and professional standards

Vision Statements

• It’s what we do• It’s why we matter • It’s who we are

Objectives

• Financial Goals• Long Term Goals– Achieve 10%+ operating margin– Increase EPS 10%-15% per year– Grow profitable revenue– Improve cash flows– Increase ROIC– Increase returns to shareowners

Strategies

• FedEx plans to focus on these five strategies to grow as a business.– Grow core package business– Grow internationally– Grow our supply chain capabilities– Grow through e-commerce & technology– Grow through new services & alliances

2.FEDEX’S HISTORY

1971 - 1989• 1971: Federal Express Corp. is

founded in Little Rock, Arkansas.

• 1975: Federal Express installs its first drop box.

• 1977: Federal Express purchases seven Boeing 727 aircraft

• 1978: listed on the New York Stock Exchange (FDX).

• 1983: reach revenues of $1 billion .

• 1989: purchases Flying Tiger

1971 - 1989

1990 - 1999

• 1990: win the Malcolm Baldrige National Quality Award in the service category.

• 1994: launches fedex.com • 1995: opens the Asia Pacific hub

in Subic Bay• 1998: creates FDX Corp.• 1999: opens a hub in Paris airport

and launches its Euroone network

2000 - 2015• 2000: FDX is renamed FedEx

Corporation.

• 2001: create an alliance with U.S. Postal Service.

• 2004: acquires Kinko's for $2.4 billion.

• 2005: launches around-the-world flights.

2000 - 2015• 2007: expands in India

• 2012: acquires Rapidão Cometa, Brazil.

• 2014: acquires the Supaswift businesses in South Africa and six other countries.

• 2015: starts the construction of the FedEx Shanghai International Express

3. CSR

Ethical practices

Unethical practices

Ethical practicesEnvironment & efficiency

FedEx Fuel Sense

Ethical practicesDisaster readiness and relief

Disaster Response Unit (DRU)

Ethical practicesPedestrian and road safety

Ethical practicesCommunity and philanthropy

Center for Sustainable Transport

Unethical practices

Overcharging business customers Taking "no action" to fix it

4. Scope

Package Shipping in US

International Package Shipping

Freight Shipping

• FedEx launched the Euro network in 1999.• Two major hubs located in Paris, France and

Cologne, German.

• FedEx connect with more than 400 intra-Asian flights to ensure complete coverage of the region, including leading business centers such as Seoul, Tokyo, Osaka, Taipei, Hong Kong and Bangkok.

5. Operations

Company Structure

FedEx Corporation(325,000 employees)

FedEx Services(12,000 employees)

FedEx Office

FedEx Tech-Connect

FedEx Express(165,000 employees)

FedEx Trade Networks

FedEx Supply-Chain

FedEx Ground(70,000 employees)

FedEx Smart-Post

FedEx Freight(39,000 employees)

FedEx Custom Critical

Key Process

Verify order data

Select appropriate

routing

Designate service

provider

Shipment tracking

Process invoices

Prepare billing

Technology

Technology • In 2007,

– Launched FedEx Innovative Labs– Developed Digital Assisted

Dispatch System and Electronic Trade Documents

• In 2010,– Launched Global Business Data

Visualization Experience– Introduced the first all-electric

trucks

• Recently, – Built private cloud

6. Competition

Overall

FedEx DHL UPS

Advantages

-Most environmentally friendly-Timely Shipping

-International presence-Air delivery-Sea delivery

-Pickup-Speed of Delivery-Work from Home

Disadvantage

-Not Many Services-Smaller Fleets than UPS

-Weak US Presence -Extra Costs

- Pricey

FedEx’s Competitive Advantage

• Cost savings• Customer service• Market advantage• Service options• Reliability• Support• Innovation: SenseAware

7. Marketing& E-Commerce

Social Network

E-Commerce

8. Recommendations

Strengths Weaknesses

Diversified business operation Strong information system networks Strong market position Brand equity Technology infrastructure Physical assets Sustainable development

Overdependence in U.S. market Declining market share in Sector Cost of infrastructure in expanding international market Decentralized operations Delivery-staff need training Covering loss in financing and investing activities by

profit in operating activity

Opportunities Threats

International expenses Expanding Chinese market Online shopping Using cooperative strategies Challenging competitors through merger &

acquisitions Growing potential customers Growing global transportation

Increasing transportation cost Economic slowdown in China E-substitution Current economic situation in U.S. market Vulnerable to increasing reach by major competition Cost-cutting initiative Green initiative makes it costly to keep up with

standards.

Recommended Strategies

1) Expand market2) Retrenchment

• Controlling the operating expenses• Communicating among regions to avoid

redundancy, overlap territories

9. CONCLUSION

References• http://investors.fedex.com/company-overview/overview-of-company/default.aspx• http://investors.fedex.com/company-overview/mission-and-goals/default.aspx• http://about.van.fedex.com/our-story/company-structure/• http://about.van.fedex.com/our-story/history-timeline/timeline/• http://about.van.fedex.com/blog/tag/technology/• http://about.van.fedex.com/social-responsibility/overview/• http://investors.fedex.com/company-overview/mission-and-goals/default.aspx• http://investors.fedex.com/governance-and-citizenship/policies/code-of-conduct/defa

ult.aspx• http://www.fool.com/investing/general/2014/07/21/despite-optimism-fedex-corporati

on-faces-challenge.aspx• http://logisticsviewpoints.com/2015/04/10/this-week-in-logistics-news-april-4-10/• http://processedword.com/blog/usps-vs-dhl-vs-fedex-vs-ups/• http://www.fedex.com/us/supply-chain/services/critical-inventory-logistics/• http://www.senseaware.com/what-is-senseaware/• https://www.youtube.com/watch?v=7USlVgd0OyY

Thank you for listening!