FedEx’s external environment both positively and negatively affects the organizations operations. Their external environment consists of government, weather, and the economy. FedEx does not have a very large external environment because their operations are not affect by many outside sources.
The government affects FedEx’s operations by providing security regulations. A regulation that affects them is increased security regulations that were just recently enforced by the federal government. These regulations protect FedEx from any external threats that can be within the goods they deliver. This protection can also negatively affect FedEx’s operation by adding additional time to the delivery and processing operations of FedEx.
The weather can also affect positively and negatively effect the operations of FedEx. Bad weather, which consists of excessive rain and snow, can negatively affect FedEx. These forms of weather can cause road closures due to flooding or snow and flight delays due to these same conditions. With these delays and closures excepted shipping dates can be delayed causing problems with their customers. Weather can also positively affect operations because it can make deliveries arrive earlier than expected which results in satisfied customers. It can also positively affect them by delaying their competition that cannot have their hubs in ideal locations.
The economy can both positively and negatively affect the operations of FedEx. With the economy in a recession FedEx’s operation and sales could have been decreased due to the amount of customers that FedEx had. While in the recession FedEx had to rely on their business clientele to provide a large quantity of orders. If this clientele did not provide the appropriate amount of business FedEx would have to cut most of its employees and close down some of their hubs. Since the economy has turned around FedEx is able to acquire its regular... [continues]
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