Fedex

FedEx Corporation Operating members and Companies Basically, FedEx is divided into four-spot segments and 11 run companies. The segments consist of FedEx Express Segment, FedEx undercoat Segment, FedEx Freight Segment, and FedEx Freight Segment. The 4 segments and 11 operating companies atomic number 18 as shown chart below FedEx serve Segment FedEx Freight Segment FedEx demonstrate Segment FedEx Express Segment FedEx work FedEx Freight FedEx Ground FedEx Express FedEx Global Supply Chain ServicesFedEx guest Information Services FedEx Office Caribbean Transportation Services FedEx Trade Network FedEx SmartPost FedEx Custom Critical deck up Analysis SWOT synopsis is the most historied tool for audit and analysis of the overall strategic position of the business and its environment. Its key purpose is to pick out the strategies that will create a faithful ad hoc business model that will exceed adjust an organizations resources and capabilities to the requirements of the environment in which the firm operates.The major SWOT considerations in FedExs attempt to stretch out its growth and dominance be the following Strengths * buckram brand name * Superior dish up capital punishment * Advanced technology innovations * Impressive theme of equipments * focalise on clients satisfaction * throw leader in domestic show up tar grocery store * comical reputation or on- cartridge holder talking to * Lots of planes, well(p)-located hubs, gigantic r turn upes/landing rights * Ranked as one of the best companies to work for galore(postnominal) years in a row * Great R adenylic acidD, kinda innovative * Extensive capital exp closeitures * FedEx SWOT Clear leader in domestic deport spoken language commercialize * Large scale operations Weaknesses * risque prices intercourse to competitors * Not as strong worldwidely * Costly innovation technology * Less cap suitable in prime service * Weak and late returns * Drivers and other workers b e trying to unionize * put behind bars UPS in the ground pitch shot trade * genuinely exposed to sparing conditions and can prices Opportunities * Untapped market * Economy is beginning to recover, curiously in Asia (China specifically) * affix in demand of logistics * Alliance with USPS * The cost of infrastructure of express auction pitch companies are a parapet of entry to in the buff comers * FedEx leadership in worldwide express delivery As long as the temperament of our socioeconomic environment exists, there will always be a choose for express delivery * E-commerce is creating an change magnitude essential for express delivery * Globalization offers opportunities for expansion * Currently offer serve to 220+ countries and barring government intervention, can expand in them as it sees fit * Continued globalization of the ground marketplace way of life more contract are available and at broad(prenominal)er volumes as well * Expansion of online sell creates an increased withdraw for on-time, hassle-free transport * Focus on taking away international market share from DHL and domestic ground delivery from UPS Threats * Increasing in transportation cost (fuel charge) * frugal down in US * Substitution (UPS,PosLaju,GDex,DHL) * Online militant reward of rivals * Maintaining the infrastructure of an express delivery familiarity is an exit barrier beca economic consumption of high mend costs * Capitol is acquired through the volume of sales, so the high fixed costs can hurt when times are averse * Due to the nature of the application, it is nearly insufferable to become the clear industry leader * The nature of the industry shows very low returns on invested capitol * The E-tailing industry demands lower shipping rates and charges to pull customers from the retailing industries * Economic downturn has cut down on volume overall * Many consumers and businesses are slip to slower delivery options to save money * UPS is attempting to spot away market share in the express delivery arena * E-mail may prepare away from nightlong memorandum delivery market We collapse found 20 lists of SWOT downstairs each component however, there are completely important issues that influenced FedEx growth are picked after analysis the case. 1. Strengths FedEx has a strong brand image which gives it remarkable strengths among the competitors and the familiarity was named the Fortunes sixth best admired conjunction all over the world.They offer superior overnight delivery performances which are divided into four segments and 11 operating companies, and the segments that offers are FedEx Express, FedEx Ground, FedEx Freight and FedEx Service. From performance view, FedEx confirms that or so 99 percent of its deliveries are delivered to doorstep on time. This gives a significant competitive advantage with differentiating their function with other competitors who do not offer their customers of these services. FedEx has a strong and impressive infrastructure of equipment and processes. Through the first-class honours degree and second agreement with U. S. Postal Service, FedEx able delivery services through air transportation and adjudge option to drop box in each U. S. post office.These agreements contribute created the Postal Services Global Express Guaranteed service which offers date certain(prenominal) international delivery to over 190 countries. in any case that, FedEx also well knows with its great R&D and innovative of delivery service. For instance, FedEx provides the innovation of new residential delivery service which is FedEx Home words in key U. S. cities and a pioneer in applying advanced information technology to meet customer needs. In additional, advanced technology has hit their aims to direction on customer satisfactions. FedEx has a huge advantage with regards to bear uponing untapped places and the acquisitions of major companies have created a more organized and a m ore able delivery system. 2. WeaknessesThere are some weaknesses in FedEx that impeding it from growing stronger in domestically and internationally. FedEx services are priced using a zone system which means that the distance of package must travel to reach its final destination determines the price is higher relative to competitors. This significant weakness exists as FedEx is still acquire from the debt of purchasing Flying Tiger Line airfreight service. at any rate that, they are less heart-to-heart in ground service compared to UPS. other than that, FedEx has involved costly technology innovations. For instance, in order to determine the status of their packages at all possible locations along the delivery highroad in real time.Customers can track packages in three ways by accessing the FedEx Web set on the Internet and click on the features of FedEx enthral Manager at fedex. com, or FedEx WorldTM Shipping Software. Other than that, Drivers and other workers are trying to unionize under a four year agreement ratify in 2007. This ca usaged FedEx to deal with the bill which they opposed fiercely and bring the bill into law. Indirectly, this incident leads to increase service costs by 30 percent that need to bear by the customers and inconsistency of operating passim the organization. 3. Opportunities FedEx have a lot of potential in expansion due to the companys fame around the world. The untapped market has given FedEx a great opportunity to distribute into large global market.Untapped market happened when political changes in foreign market. Next, the cost of infrastructure of express delivery of FedEx is a barrier of entry to new comers. rude(a) comers need to bear with a large keep down of cost to build their infrastructure such as airfreight for delivery service. Nowadays, E-commerce and online shopping expansion is creating an increased need for express delivery. The expansion leads to the demand of hassle-free and on time delivery to v olume up. Economic is recovering especially in Asia is also one of the opportunity for FedEx. despite the problems in Europe, the Asian economy was growing speedily and manufactured product exports were accelerating at the same time.This has increased the demand on express delivery and FedEx introduced AsiaOne mesh topology which gave effectiveness and efficiency in delivery. 4. Threats One of the curses that confront by FedEx was increasing transportation cost which involves high fuel charge. The increasing fuel prices are apt(predicate) to have a direct impact on the companys profit margins by causing a force out in the operating expenses of FedEx. This is an unavoidable threat as FedEx has a high reliance on fuel compared to UPS in express deliveries. There are few competitors in express delivery services domestically and internationally such as UPS, DHL, PosLaju and GDex. This has given customers a substitution choice to substitute FedEx express delivery services. Hence,Fe dEx has to ingest a differentiation between the competitors in order to win the market to avoid customers from transformation to other delivery option. In year 1992, economic turnover in United State gave imprint in the amount of package delivers per day. By end of 1992, FedEx experient total loss of $133 billion and forbid earnings per share of $2. 11. Many customers were switching to slow delivery options to save money. Advanced technology of telecommunicate may take away from overnight document delivery market which also a threat that is beyond FedEx control. The ways that FedEx uses their SWOT analysis in helping them to create a competitive advantage will be explained in the part of Strategies to project FedEx Ahead of The Game.FedexCritical Thinking and Project Management Homework 2 use a Dunker plot to identify many potential solutions The Dunker draw technique is used after you have articulated your afford state and desired state. It is used to generate many ideas for solutions to a problem. But It works by prompting you to not only consider solutions that achieve the desired state but also solutions that make It okay -with you to NOT necessarily achieve the desired state.This technique Is a good one to use when you recognize hat it may be impossible to achieve your desired state completely, and therefore, you might have to consider solutions that will make it OKAY with you to not achieve the desire state as you have defined it. It forces you to consider solutions that would achieve an acceptable resolution to the conflict or problem. Create a Dunker plot to Identify as many solutions as possible to the dilemma described below. Turn In your assignment to the dropped on learn by the due date on the syllabus.Scenario You are the HER manager for a company that has a very large IT department (IT = Information Technology). In the next six months or so, you need to hire about 200 ball-hawking IT workers (computer programmers, network administ rators, database designers, web site developers, and help desk managers). You are foot race ads on job-posting web sites and working with a recruiting firm but you arena getting enough applicants with the unavoidable IT skills. There just arent enough bulk out there that have IT skills necessary to do many of these jobs.Lets express this dilemma as the current state/desired state Your current state is you dont have enough employees with strong IT skills. Your desired state is that you do have enough employees with strong IT skills. You decide to use the Dunker Diagramming technique so you can discover as many potential solutions to the problem as possible. Using Dunker sentiment, you realize that there are two paths you could take (1) Try harder to hire more people with strong IT skills or (2) Make it okay NOT to hire more people with strong IT skills. When thinking of ways to accomplish 2 make it okay not to have to hire more experienced people DO NOT suggest that you remain under-staffed because that goes not solve the problem) using the template, apply the Dunker diagram technique to this problem to come up with several possible alternative solutions. (See pages 470-473) for a quick acknowledgment on Dunker diagrams Circle Fill in the blanks Find a way to hire more skilled IT people Instead of putting ads in the paper and waiting on IT workers to come to you, go out and recruit IT.FedexFedEx Corporation Operating Segments and Companies Basically, FedEx is divided into four segments and 11 operating companies. The segments consist of FedEx Express Segment, FedEx Ground Segment, FedEx Freight Segment, and FedEx Freight Segment. The 4 segments and 11 operating companies are as shown chart below FedEx Services Segment FedEx Freight Segment FedEx Ground Segment FedEx Express Segment FedEx Services FedEx Freight FedEx Ground FedEx Express FedEx Global Supply Chain ServicesFedEx Customer Information Services FedEx Office Caribbean Transportation Services F edEx Trade Network FedEx SmartPost FedEx Custom Critical SWOT Analysis SWOT analysis is the most renowned tool for audit and analysis of the overall strategic position of the business and its environment. Its key purpose is to identify the strategies that will create a firm specific business model that will best align an organizations resources and capabilities to the requirements of the environment in which the firm operates.The major SWOT considerations in FedExs attempt to continue its growth and dominance are the following Strengths * Strong brand name * Superior service performance * Advanced technology innovations * Impressive infrastructure of equipments * Focus on customers satisfaction * Clear leader in domestic express delivery market * Unmatched reputation or on-time delivery * Lots of planes, well-located hubs, great routes/landing rights * Ranked as one of the best companies to work for many years in a row * Great RampD, quite innovative * Extensive capital expenditures * FedEx SWOT Clear leader in domestic express delivery market * Large scale operations Weaknesses * High prices relative to competitors * Not as strong internationally * Costly innovation technology * Less capable in ground service * Weak and slow returns * Drivers and other workers are trying to unionize * Lag UPS in the ground delivery market * Very exposed to economic conditions and fuel prices Opportunities * Untapped market * Economy is beginning to recover, especially in Asia (China specifically) * Increase in demand of logistics * Alliance with USPS * The cost of infrastructure of express delivery companies are a barrier of entry to new comers * FedEx leadership in global express delivery As long as the nature of our socioeconomic environment exists, there will always be a need for express delivery * E-commerce is creating an increased need for express delivery * Globalization offers opportunities for expansion * Currently offer services to 220+ countries and barring govern ment intervention, can expand in them as it sees fit * Continued globalization of the world marketplace means more contract are available and at higher volumes as well * Expansion of online retailing creates an increased need for on-time, hassle-free shipping * Focus on taking away international market share from DHL and domestic ground delivery from UPS Threats * Increasing in transportation costs (fuel charge) * Economic down in US * Substitution (UPS,PosLaju,GDex,DHL) * Online competitive advantage of rivals * Maintaining the infrastructure of an express delivery company is an exit barrier because of high fixed costs * Capitol is acquired through the volume of sales, so the high fixed costs can hurt when times are slow * Due to the nature of the industry, it is nearly impossible to become the clear industry leader * The nature of the industry shows very low returns on invested capitol * The E-tailing industry demands lower shipping rates and charges to pull customers from the ret ailing industries * Economic downturn has cut down on volume overall * Many consumers and businesses are switching to slower delivery options to save money * UPS is attempting to take away market share in the express delivery arena * E-mail may take away from overnight document delivery market We have found 20 lists of SWOT under each component however, there are only important issues that influenced FedEx growth are picked after analysis the case. 1. Strengths FedEx has a strong brand image which gives it significant strengths among the competitors and the company was named the Fortunes sixth best admired company all over the world.They offer superior overnight delivery performances which are divided into four segments and 11 operating companies, and the segments that offers are FedEx Express, FedEx Ground, FedEx Freight and FedEx Service. From performance view, FedEx confirms that roughly 99 percent of its deliveries are delivered to doorstep on time. This gives a significant comp etitive advantage with differentiating their services with other competitors who do not offer their customers of these services. FedEx has a strong and impressive infrastructure of equipment and processes. Through the first and second agreement with U. S. Postal Service, FedEx able delivery services through air transportation and have option to drop box in every U. S. post office.These agreements have created the Postal Services Global Express Guaranteed service which offers date certain international delivery to over 190 countries. Besides that, FedEx also well knows with its great R&D and innovative of delivery service. For instance, FedEx provides the innovation of new residential delivery service which is FedEx Home Delivery in key U. S. cities and a pioneer in applying advanced information technology to meet customer needs. In additional, advanced technology has hit their aims to focus on customer satisfactions. FedEx has a huge advantage with regards to reaching untapped pl aces and the acquisitions of major companies have created a more organized and a more able delivery system. 2. WeaknessesThere are few weaknesses in FedEx that hindering it from growing stronger in domestically and internationally. FedEx services are priced using a zone system which means that the distance of package must travel to reach its final destination determines the price is higher relative to competitors. This significant weakness exists as FedEx is still recovering from the debt of purchasing Flying Tiger Line airfreight service. Besides that, they are less capable in ground service compared to UPS. Other than that, FedEx has involved costly technology innovations. For instance, in order to determine the status of their packages at all possible locations along the delivery route in real time.Customers can track packages in three ways by accessing the FedEx Web site on the Internet and click on the features of FedEx Ship Manager at fedex. com, or FedEx WorldTM Shipping Soft ware. Other than that, Drivers and other workers are trying to unionize under a four year agreement ratified in 2007. This caused FedEx to deal with the bill which they opposed fiercely and bring the bill into law. Indirectly, this incident leads to increase service costs by 30 percent that need to bear by the customers and inconsistency of operating throughout the organization. 3. Opportunities FedEx have a lot of potential in expansion due to the companys fame around the world. The untapped market has given FedEx a great opportunity to penetrate into large global market.Untapped market happened when political changes in foreign market. Next, the cost of infrastructure of express delivery of FedEx is a barrier of entry to new comers. New comers need to bear with a large amount of cost to build their infrastructure such as airfreight for delivery service. Nowadays, E-commerce and online shopping expansion is creating an increased need for express delivery. The expansion leads to the demand of hassle-free and on time delivery to volume up. Economic is recovering especially in Asia is also one of the opportunity for FedEx. Despite the problems in Europe, the Asian economy was growing rapidly and manufactured product exports were accelerating at the same time.This has increased the demand on express delivery and FedEx introduced AsiaOne network which gave effectiveness and efficiency in delivery. 4. Threats One of the threats that faced by FedEx was increasing transportation cost which involves high fuel charge. The increasing fuel prices are likely to have a direct impact on the companys profit margins by causing a raise in the operating expenses of FedEx. This is an unavoidable threat as FedEx has a high reliance on fuel compared to UPS in express deliveries. There are few competitors in express delivery services domestically and internationally such as UPS, DHL, PosLaju and GDex. This has given customers a substitution choice to substitute FedEx express delive ry services. Hence,FedEx has to make a differentiation between the competitors in order to win the market to avoid customers from switching to other delivery option. In year 1992, economic turnover in United State gave affect in the amount of package delivers per day. By end of 1992, FedEx experienced total loss of $133 billion and negative earnings per share of $2. 11. Many customers were switching to slow delivery options to save money. Advanced technology of email may take away from overnight document delivery market which also a threat that is beyond FedEx control. The ways that FedEx uses their SWOT analysis in helping them to create a competitive advantage will be explained in the part of Strategies to Put FedEx Ahead of The Game.