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Strategic Management
Professor: Vahid Victor Keyhani
Group 3
Nguyễn Thị Trà My - 332953
Trần Quang Khôi - 332969
Ngô Thùy Phương Thảo - 332942
Nguyễn Trọng Tấn - 332955
Phạm Thùy Trang - 332964
Đào Ngọc Lan Đài - 332929
Trần Ái My - 332966
Contents
1. Introduction: Overview, Mission & Vision
Statements
2. Company history
3. Corporate social responsibility (CSR)
4. Scope
5. Operations
6. Competition
7. Marketing & E-commerce
8. Recommendations
9. 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
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 practices
Environment & efficiency
FedEx Fuel Sense
Ethical practices
Disaster readiness and relief
Disaster Response Unit (DRU)
Ethical practices
Pedestrian and road safety
Ethical practices
Community 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 market
2) 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/default.aspx
• http://www.fool.com/investing/general/2014/07/21/despite-optimism-fedex-corporation-
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!

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Fed ex corporation

  • 1. Strategic Management Professor: Vahid Victor Keyhani Group 3 Nguyễn Thị Trà My - 332953 Trần Quang Khôi - 332969 Ngô Thùy Phương Thảo - 332942 Nguyễn Trọng Tấn - 332955 Phạm Thùy Trang - 332964 Đào Ngọc Lan Đài - 332929 Trần Ái My - 332966
  • 2. Contents 1. Introduction: Overview, Mission & Vision Statements 2. Company history 3. Corporate social responsibility (CSR) 4. Scope 5. Operations 6. Competition 7. Marketing & E-commerce 8. Recommendations 9. Conclusion - References
  • 3. 1. OVERVIEW - MISSION & VISION STATEMENTS
  • 4. 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.
  • 5. COMPANY OVERVIEW • FY15 Revenue: $47.5 billion • Team Members: More than 325,000 • Countries and Territories Served: More than 220
  • 7. Vision Statements • It’s what we do • It’s why we matter • It’s who we are
  • 8. 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
  • 9. 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
  • 11. 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
  • 12. • 1978: listed on the New York Stock Exchange (FDX). • 1983: reach revenues of $1 billion . • 1989: purchases Flying Tiger 1971 - 1989
  • 13. 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
  • 14. 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.
  • 15. 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
  • 16.
  • 18. Ethical practices Environment & efficiency FedEx Fuel Sense
  • 19. Ethical practices Disaster readiness and relief Disaster Response Unit (DRU)
  • 21. Ethical practices Community and philanthropy Center for Sustainable Transport
  • 22. Unethical practices Overcharging business customers Taking "no action" to fix it
  • 27.
  • 28.
  • 29.
  • 30. • FedEx launched the Euro network in 1999. • Two major hubs located in Paris, France and Cologne, German.
  • 31. • 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.
  • 32.
  • 34. 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
  • 37. 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
  • 39. 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
  • 40. FedEx’s Competitive Advantage • Cost savings • Customer service • Market advantage • Service options • Reliability • Support • Innovation: SenseAware
  • 42.
  • 46. 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.
  • 47. Recommended Strategies 1) Expand market 2) Retrenchment • Controlling the operating expenses • Communicating among regions to avoid redundancy, overlap territories
  • 49. 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/default.aspx • http://www.fool.com/investing/general/2014/07/21/despite-optimism-fedex-corporation- 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