Management Analysis of Fedex

Topics: FedEx, Management, United Parcel Service Pages: 24 (7019 words) Published: June 3, 2012
Executive Summary____________________________________________

FedEx does not necessarily state all its policies, but they can be inferred through their actions; their policies clearly include being bold and aggressive, based off of intelligently collected information. There is also a strong emphasis on ethical policies. Their mission statement calls for high ethics, high quality services, and mutual reward for all stakeholders. This mission leads to a company culture of high ethics, pride in the company, and a need to give back to the community. FedEx does these in terms of environmental and social responsibilities.

The legal structure of FedEx is the C-class Corporation. There is a history of long and short term goals that have been completed successfully, and many more in the process of completion now. The market is generally business people who need fast, reliant transfers around the globe. However, the size and number of divisions of FedEx means that the market and marketing strategies can greatly vary. FedEx is very focus on growing and constantly improving their speed of service, demonstrated through their history of being first to try new technologies. Their services range from information systems, to delivery, to custom printing.

The organizational structure of FedEx is divided first by the division (E.g. services offered) and then by each region, as most of FedEx’s operations are global. Their structure is very complicated, yet very well planned out. This must be the case for so many divisions, in so many places, to work together so efficiently. Their strong organizational skills are definitely a reason for their great success. Likewise, FedEx is on top of human resource management, with strong orientation & training practices. Their policies focus on the needs of their employees, and they strongly support—through words and action—workplace diversity. All of this shines through in terms of a strong, growing financial position.

Leading & Influencing
The use of groups is strongly utilized in FedEx, with member of a group ranging in job hierarchy as well as expertise. Top managers typically set the long-term company goals, however, if there is an unsatisfied customer, they will find the time to address that customer themselves. While the teams come to conclusions, it is ultimately the higher management who makes the final decisions. In this way, the process of decision making could be called authoritative, though the manager still takes the group’s conclusions into consideration.

The three processes of controlling—measuring, comparing, correcting—are utilized well by FedEx. There are systems, largely electronic, in place that tell managers how much the company transfers in a day. FedEx assesses their organizational execution in relation to productivity by package count and revenue yield per package, in relation to on-time service and customer service ratings. The roots of any problems found after an evaluation are then discovered and solved; all this done by a team of specialists. Overall, FedEx’s success can be largely attributed to strong controls, and a constant drive to improve based off the control data collected. _____________________________________________________________ History of FedEx_______________________________________________

Federal Express started as a term paper written by Frederick W. Smith on the inadequacy of air shipments and fast package deliveries. He recognized the need for a system to specifically manage air-freight. Such a system began development by Smith in 1971, when he faced great difficulties making quick deliveries in his aviation business. Shortly thereafter, Federal Express was created and incorporated. Named ‘Federal’ to imply patriotism and the desire to be involved in national growth/activity; named ‘Express’ to recognize the goal of speedy deliveries. The first operations occurred...
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