Fedex Internal Analysis

Topics: Balance sheet, Asset, Generally Accepted Accounting Principles Pages: 8 (1958 words) Published: February 9, 2013
Internal Environment Analysis
Company Profile
* History
Founded by Frederick W. Smith, FedEx Express was established in 1973 and it has grown rapidly. Smith had the idea of creating a company that would deliver mail all over the United States over night. His idea was to fly mail from one location to another at night because the traffic is better and packages could be sorted, distributed and out of its original location faster.

Delivering to over 220 countries and territories, FedEx today is a big global industry with a vast network worldwide. The company that started as a laid out in an economics class today is one of the biggest mail distribution corporations known by all customers as the company that “send shipment overnight” (FedEx,2013). * Employment

Employing more than 245,000 workers, contractors, pilots and operational personnel, FedEx is a corporation proud of its employees. FedEx creates opportunities not only for their full time employees but the company also hires college students as part time employees. It not only provides the college students a flexible job but it also helps FedEx cut costs, especially because the corporation is not unionized except for their pilots that are associated with the ALPA. FedEx not only employees in the United States, but it also employees overseas and 13 percent of its current employees are international. * Organizational Structure

The FedEx Corporation like many others is structure with a CEO, CFO, Market Development and Corporate Communications VP, Chief Information Officer, General Counsel and Secretary. Each subdivision of FedEx has a CEO, current David J. Bronczek is the CEO for the FedEx Express subdivision. Frederick W. Smith remains in the main position of President and CEO of the company as a whole (FexEx, 2013). * Location

FedEx main headquarters is in Memphis, Tennessee and the company has also another four headquarters which are located in Ontario, Canada; Guangzhou, China; Miami, Florida; Brussels, Belgium. FedEx also has more than 46,000 drop-off locations all over the country and many other regional hubs to help short and deliver packages. * Capacity

Utilizing a hub-and-spoke sorting and distribution system FedEx Express and FedEx ground have the capacity to process 15,000 to 20,000 packages daily. The technology utilized in its 29 hubs helps to speed the process and make it more effective. Operating 675 aircrafts and 75,000 motorized vehicles worldwide, FedEx has the capacity to utilize its transportations and guarantee delivery within 24 to 48 hours. * Internal Policies and Internal Culture

FedEx has been known for its outstanding Human Resources programs. The company implemented a no-lay-off policy, minority recruitment efforts, and guaranteed fair treatment practice within the organization. The company’s dedication to its employees and the technology acquired to make employees job more efficient helps empower workers. FedEx has a traditional culture where the company is centralized and very well structured. The most important component of the company is the people and that’s why their philosophy is “People-Service-Profit”. Market

* Market segmentation
FedEx target all ages in the market, the service is offered to everyone that needs packages delivered in a short amount of time. Service is offered to all the population in the United States and other countries. Home delivery is a great option for those who are unable to go to a FedEx store. Businesses that are in need of faster document deliveries is also benefited by FedEx because the lines in the stores are normally shorter that the regular UPS stores. Value chain analysis

By offering so many options and convenience to customers FedEx has been creating value to the firm’s process. The three overnight options is an example of this value being built to the organization. Customers can choose a First Overnight, Priority Overnight, and Standard Overnight, depending on their...
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