The Internal Environment Institution: Student’s name: Date: Part 1. In business, "corporate culture" refers to the rules, customs, and beliefs that all employees follow and are taught (Wheelen, Thomas., & Hunger, J. David, 2014). However, in today's world, the CEO, CFO, and other top executives' actions and attitudes have a direct impact on the company's culture. FedEx has a culture that demonstrates to its employees and customers how much they are valued. FedEx prioritizes service, people, honesty, innovation, responsibility, safety, and loyalty (FedEx, 2019). FedEx understands the importance of a positive work environment and a strong corporate culture in order to achieve operational success and provide excellent customer service. As a result, FedEx has implemented a "People-Service-Profit strategy" (P-S-P) and continues to promote a high-performance culture. (FedEx, 2019). Frederick Smith, the company's current CEO and founder, came up with this idea because he believed that investing in employees would result in better work and, as a result, financial success. This philosophy emphasizes the importance of treating employees with respect and dignity, as well as rewarding team members based on how well they perform their duties. FedEx believes that its employees are the best way to make big decisions, and it attributes its success to its innovative culture. Because service providers' employees are the ones who directly interact with customers, this philosophy is especially important in the service industry. Training, giving employees power, and providing incentives are all critical in a company whose culture is based on this philosophy (Peoplematters, 2019). FedEx Corporation's plan to make more money, in my opinion, is consistent with its core value of putting people first. People who are enthusiastic about their jobs are always more creative and productive. On the review site Glassdoor, current FedEx employees gave CEO Frederick Smith an 84% approval rating, and 73% said they would recommend working there to a friend (Glassdoor, 2019). FedEx is the company most likely to hire these individuals as a result of this. In addition, some FedEx freight drivers chose not to join a union in 2017, indicating a favorable work environment (Dcvelocity, 2017). FedEx Corporation employs approximately 300,000 people in over 250 countries and territories. As a result, there are numerous programs in place to thank employees for their efforts. This demonstrates how much FedEx cares about and values its employees. There is a list of awards and recognition programs on the main website, including "The Humanitarian Award," "The Five Star," "Bravo Zulu," and "Purple Promise" (FedEx, 2019). A five-star rating is the highest you can achieve at FedEx. The manager gives the staff theater tickets and quick cash bonuses in the form of Bravo Zulu. Pilots, couriers, customer service representatives, and meteorologists are among those who benefit from the "purple promise.

1. The Internal Environment
Institution:
Student’s name:
Date:
Part 1.
In business, "corporate culture" refers to the rules, customs, and
beliefs that all employees follow and are taught (Wheelen,
Thomas., & Hunger, J. David, 2014). However, in today's
world, the CEO, CFO, and other top executives' actions and
attitudes have a direct impact on the company's culture. FedEx
has a culture that demonstrates to its employees and customers
how much they are valued. FedEx prioritizes service, people,
honesty, innovation, responsibility, safety, and loyalty (FedEx,
2019). FedEx understands the importance of a positive work
environment and a strong corporate culture in order to achieve
operational success and provide excellent customer service. As
a result, FedEx has implemented a "People-Service-Profit
strategy" (P-S-P) and continues to promote a high-performance
culture. (FedEx, 2019). Frederick Smith, the company's current
CEO and founder, came up with this idea because he believed
that investing in employees would result in better work and, as
a result, financial success. This philosophy emphasizes the
importance of treating employees with respect and dignity, as
well as rewarding team members based on how well they
perform their duties.
FedEx believes that its employees are the best way to make big
decisions, and it attributes its success to its innovative culture.

2. Because service providers' employees are the ones who directly
interact with customers, this philosophy is especially important
in the service industry. Training, giving employees power, and
providing incentives are all critical in a company whose culture
is based on this philosophy (Peoplematters, 2019). FedEx
Corporation's plan to make more money, in my opinion, is
consistent with its core value of putting people first. People
who are enthusiastic about their jobs are always more creative
and productive. On the review site Glassdoor, current FedEx
employees gave CEO Frederick Smith an 84% approval rating,
and 73% said they would recommend working there to a friend
(Glassdoor, 2019). FedEx is the company most likely to hire
these individuals as a result of this. In addition, some FedEx
freight drivers chose not to join a union in 2017, indicating a
favorable work environment (Dcvelocity, 2017). FedEx
Corporation employs approximately 300,000 people in over 250
countries and territories. As a result, there are numerous
programs in place to thank employees for their efforts. This
demonstrates how much FedEx cares about and values its
employees.
There is a list of awards and recognition programs on the main
website, including "The Humanitarian Award," "The Five Star,"
"Bravo Zulu," and "Purple Promise" (FedEx, 2019). A five-star
rating is the highest you can achieve at FedEx. The manager
gives the staff theater tickets and quick cash bonuses in the
form of Bravo Zulu. Pilots, couriers, customer service
representatives, and meteorologists are among those who benefit
from the "purple promise" (FedEx, 2019). These projects will
benefit FedEx Corporation's high-performance culture, and
employees will be motivated to work toward the company's
goals. FedEx also places a premium on a supplier base and a
workforce that reflect and celebrate diversity. FedEx will be
better able to adapt to the needs of its diverse customer base. In
the United States, 41% of FedEx employees are not white
(FedEx, 2019). Asian, African-American, Hispanic, female,
transgender, gay, and lesbian people are among those sought

3. after by the company (FedEx, 2019). FedEx's Corporate
Diversity Council oversees the company's efforts to make
workplaces worldwide more inclusive and diverse (FedEx,
2019). This council's goal is to raise cultural awareness
throughout the organization through activities such as
multicultural training and diversity events (FedEx, 2019).
FedEx Corporation believes that it should gradually alter its
operations to meet the needs of the markets it serves. When
leaders are committed to and supportive of their employees, it
encourages employees to provide excellent customer service,
which helps the company meet its objectives and put its plans
into action.
Part 2.Internal Factor Analysis Summary Guidelines
FACTORS
WEIGHT
RATING
WGTD
SCORE
COMMENTS
STRENGHTS
S1
The strong brand image
0.2
5
0.5
The FedEx company has earned a trustworthy image by
successfully catering to the needs of both individual customers
and commercial clients through the provision of dependable
services. When it comes to its interactions with customers,
FedEx places a strong emphasis on being truthful and

4. forthcoming. Because of this, both employees and customers
will develop positive mental images of the company. In order to
improve the company's brand image and increase revenue,
FedEx uses a model of coordinated interaction that ensures
there is strong coordination across all of the company's
departments. This, in turn, results in prompt responses to the
company's customers.gh
S2
The focus on sustainability
0.2
5
0.5
A commitment to sustainability is indicative of FedEx
Corporation's commitment to its corporate responsibility.
FedEx's commitment to sustainability is shown in its global
citizenship report, which outlines the company's efforts to
increase the corporation's long-term value for all stakeholders
(FedEx Global Citizenship Report, 2017). Success rates increase
for businesses that make sustainability a priority. A 50%
reduction in earnings volatility over the past decade was
achieved, for instance, by companies that made investments in
carbon reductions.
S3
The high performance company culture
0.2
4.5
0.5
FedEx is a great place to work because the culture respects and
appreciates everyone involved. FedEx places a premium on
service, people, integrity, innovation, responsibility, safety, and
loyalty (FedEx, 2019). This is why FedEx has a high
performance culture and has embraced the "People-Service-
Profit approach (P-S-P)" (FedEx, 2019).
S4
The large logistics network
0.05

5. 3.5
0.175
When measured by the number of employees it has, FedEx ranks
as the ninth largest corporation in the world. There are around
425,000 people working for it (FedEx, 2019). Therefore, the
organization is able to manage deliveries to over 230 countries
via a vast network of warehouses and retail outlets. More than
600 of FedEx's planes are capable of taking the corporation into
new international markets. FedEx is able to run efficiently and
reliably because of its excellent routes and strategically placed
hubs (Supplychain, 2019).
S5
The leader in the overnight delivery market
0.05
2.5
0.125
Overnight shipping was pioneered by FedEx Corporation. So,
they've maintained their monopoly on that sector of the market.
Many consumers like this feature, and FedEx Corporation's
reputation benefits from it (Encyclopedia, 2019)
WEAKNESSES
W1
Overdependence of U.S market
0.1
4

6. 0.4
Because of the magnitude of the risk involved, FedEx cannot
afford to be overly reliant on a single region's economy,
climate, or government. The only solution to this shortcoming is
to expand into other markets.
W2
Rising prices
0.1
2
0.2
On January 7, 2019, an increase in prices was announced.
Therefore, all shipping prices, including FedEx Ground and
FedEx freight, were increased by 4.9% and 5.9%, respectively,
because of the limited available space. FedEx's shipping costs
are somewhat more than those of UPS and DHL, and the
company has been increasing their prices on occasion.
W3
Losing market share to competitors
0.2
2
0.4
Comparing FedEx and UPS using conventional size statements
and financial statistics, we find that FedEx has a lower
operating margin. FedEx can put the money to better use in the
future, as seen by the current asset ratio and the liquid asset
ratio. Comparatively, UPS's net earnings surpass those of
FedEx.
W4
Rising operating expenses
0.1
3
0.3
FedEx operations cost a total of $60 billion in 2018, $55.28
billion in 2017, and $47.28 billion in 2016, respectively. In
2016, FedEx operations cost $47.28 billion. When compared to
2017, it has increased by 9.58 percent, and when compared to

7. 2016, it has increased by 16.9 percent. To put it another way,
FedEx's operational costs have been continuously climbing
upwards over the course of the past year.
W5
differentiation and decentralized operations
0.1
4
0.4
There are now unprecedented levels of rivalry between shipping
and parcel delivery firms. Given the proliferation of
competitors, FedEx is having difficulty setting itself apart.
There is now less room for individuality as a result.
Furthermore, as FedEx's business units are run independently of
one another, there is room for misunderstanding.
TOTAL SCORES
1.3
3.5
Summary.
FedEx has been able to successfully elevate the firm brand
image by responding to changes in the external environment and
adjusting to the needs of customers all over the world. The
FedEx Corporation has built a loyal client base because to its
consistent delivery of high-quality services for both consumers
and businesses. As a result, FedEx Corporation enjoys a wide

8. variety of advantages within its own walls. Some significant
competitive advantage platforms are a high-performance
business culture and access to a wide network. However, losing
market share to rivals like UPS and Amazon would be
disastrous for business. FedEx needs to keep its delivery prices
competitive despite the rise in its operational costs. Instead than
raising delivery prices, FedEx would be better served by
working to set itself apart from the competition. FedEx will be
able to set itself apart from the competition thanks in large part
to its commitment to sustainability and environmentally friendly
services. FedEx also has to recover some of its lost market
share by putting plans into action. FedEx should make an effort
to increase its share of other commercial markets by utilizing its
extensive network, huge aircraft fleet, infrastructure,
equipment, etc. FedEx, like many other companies, has relied
solely on the US market up until now, thus the company
desperately needs to expand internationally. FedEx receives
73% of its overall income in the United States. Because of its
reliance on the United States, FedEx has missed out on several
overseas prospects (Asia-Pacific market). If FedEx loses a lot of
money in the United States, it faces a serious challenge. FedEx
might fortify its position in the market by forming strategic
alliances with companies that are leaders in information
technology, which would lead to the introduction of novel
processes and tools.
These internal elements have a significant impact on FedEx's
current and future operations. FedEx achieved a weighted score
of 3.00, with a score of 3.0 being the industry norm. To put it
another way, FedEx has been able to capitalize on its strengths,
make adjustments to counteract its deficiencies, and keep an eye
on its internal environment so that its score is neither too low
nor too high. This research also demonstrates how FedEx, which
has a well-respected brand name, has utilized internal shifts to
its advantage in the transportation market. Since there is so
much misleading data out there, and since some marketing firms
have erroneously estimated market share, my data collecting

9. efforts would be hampered.
References.
FedEx Annual Report | Superior Networks. (2018). FedEx
Annual Report 2018. Retrieved from
http://s1.q4cdn.com/714383399/files/oar/2018/AnnualReport201
8/index.html?
utm_source=InvestorRelations&utm_medium=Referral&utm_ca
mpaign=Annual
Report2018&utm_content=FinancialInformationAnnualReports
Samaha, L. (2017). Better Buy: FedEx Corporation vs. United
Parcel Service -- The Motley Fool. The Motley Fool. Retrieved
18 April 2019, from
https://www.fool.com/investing/2017/04/06/better-buy-fedex-
corp-vs-unitedparcel-service.aspx
About FedEx - Home. (2019). About FedEx. Retrieved 18 April
2019, from
https://about.van.fedex.com/
People Matters - Interstitial Site — People Matters. (2019).
People matters.in. Retrieved 18 April 2019, from
https://www.peoplematters.in/article/best-practices/22- federal-
express-people-profit-service-557?
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