Strategy Management

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Table of Content
Executive Summary3
Background4
Introduction5
Question 1a6
Porter Five Forces6
The threat of entry6
The power of buyers7
The power of suppliers7
The threat of substitutes7
Competitive Rivalry8
Porter Five Force – FedEx Corporation9
Threat of new Entrants:9
Bargaining Power of Suppliers:9
Bargaining Power of Buyers:9
Product Substitutes:10
Intensity of Rivalry:10
Porter Value Chain11
Primary activities11
Support Activities12
Porter Value Chain – FedEx Corporation13
Primary activities:13
Support Activities:13
SWOT analysis of FedEx14
Company Strengths and Resource Capabilities:14
Company Weaknesses and Resource Deficiencies:15
Company Opportunities:15
Company Threats:16
Question 1b17
Core competencies17
Core competencies FedEx Corporation –18
Capabilities FedEx Corporation of20
Question 1c22
International trade22
Advantage of international trade to FedEx Corporation24
Disadvantage of international trade to FedEx Corporation26
Question 2a27
Classical Perspective28
Organization structure29
Limitations of classical perspective29
Classical Perspective – FedEx Corporation31
Visionary32
Mission34
Evolutionary Perspective35
Evolutionary Perspective – FedEx Corporation36
Question 2b39
Evolutionary perspective39
Classical perspective39
Prefer Classical perspective39
Question 341
The Rational loop41
The overt politics loop42
The culture and cognition loop42
The covert politics loop43
Appendix:45
1. Five Forces Analysis by Michael Porter.45
2. Porter Value chain46
3. SWOT analysis46
4. Whittington’s perspective48
5. Stacy’s integrated model of decision-making and control (1996)49
6. Generic competitive strategies:49
Reference:50

Executive Summary
FedEx is a global logistics and supply-chain management company (Ng & Farhoomand, 2002) that began operations in 1973 as an overnight package deliver company. In 2003, annual revenue exceeded $20 billion and 24-48 hour delivery is available to well over 200 countries. In 2001, Fortune named FedEx one of the top ten most admired corporations in America (Boyle, 2002) FedEx provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. We offer integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand.

Background
FDX is the world’s largest express transportation company. Revenues in fiscal 1999 were $14 billion and the first quarter of fiscal 2000 was $3.6 billion. There are more than 148,000 employees’ worldwide, serving 210 countries and 366 airports worldwide, with 643 aircraft. The ground vehicle fleet numbers 43,500 worldwide. The distance driven totals approximately 2.7 million miles in the US alone, there are 34,000 drop boxes, 2400 FedEx shipping sites and 7600 authorized shipping centers. The average package volume amounts to approximately 3.1 million packages daily, weighing in at 25.6 million pounds annually. Average daily freight volume is about 7 million pounds per day. This level of business generates more than 500,000 daily calls and 63 million daily electronic transmissions according to Cornell Equity Research, December 5, 1999 by Iwanowycz, Kaylo, Lee, Sekine, & Wells.

Introduction
According to case study about FedEx by Ali F. Farhoomand and Pauline Ng (2002) suggest that since its inception in 1973, Federal Express Corporation (‘FedEx’) had transformed itself from an express delivery company to a global logistics and supply chain management company. Over the years, the Company had invested heavily in IT systems, and with the launch of the Internet in 1994, the potential for further integration of systems to provide services throughout its customers'...
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