Fed Ex What Is Fedex's Strategy for Research Paper

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Fed Ex

What is FedEx's strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operations excellence, or product leadership customer value proposition? What evidence supports your conclusion?

FedEx's strategy in the market place combines customer intimacy, product leadership customer value proposition, and operational excellence. In our textbook, Noreen, Brewer, and Garrison describe how companies who have customer intimacy attract new and retain past customers by understanding and reacting to their needs better than their competition. Operational excellence is defined as providing faster services, conveniently, and at a lower price than their competition (Noreen, Brewer, & Garrison, 2008). Companies that pursue product leadership customer value proposition get their customers to select them due to delivering a higher quality service or product than their competition (Noreen, Brewer, & Garrison, 2008).

You can find the evidence of customer intimacy and operational excellence in the 10-K form that states they strive to provide their customers with convenient, seamless access to our entire portfolio of integrated business solutions. The form goes on to state they are pursuing a number of initiatives to continue to improve the FedEx customer experience. This includes improving the capabilities of FedEx's sales professionals. FedEx's OneCall program assigns a single customer service agent to handle almost all issues of a customer's account. Intimacy can be further found in the statement that each segment of FedEx operates independently because this allows them to anticipate and respond to customer needs.

Operational excellence can also be found where they state they are the leader in reliable rapid global delivery of packages, documents, and freight plus have specialized services such as customs-clearance with a money back guarantee. Evidence of product leadership customer value proposition is also found in a…

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What are FedEx's four main business segments? Provide two examples of traceable fixed costs for each of FedEx's four business segments. Provide two examples of common costs that are not traceable to the four business segments.

Fed Ex has four main business segments. They are FedEx Express, FedEx Ground, FedEx Freight, and FedEx Kinko's. A fixed cost that is traceable in a segment only exists because of the existence of the segment itself (Noreen, Brewer, & Garrison, 2008). If the segment is removed then so is the cost. Common costs are incurred to support operations of multiple segments of a company and are not traceable in any way or part of a particular segment (Noreen, Brewer, & Garrison, 2008). If a segment is removed then the cost remains and doesn't change.

A traceable fixed cost for FedEx Express is the cost of their facilities at Memphis International Airport, which includes hangars, aircraft maintenance, flight training, fuel facilities, administration building, and warehouse space. FedEx Express also has traceable costs in maintaining the 557 airplanes they own. They also have costs related to operating their offices and information data centers that are located in Pittsburgh and owned by FedEx Ground. Costs are also related to the salaries of the CEO plus all the worker's salaries. Traceable costs also include the costs to maintain the 39,500 vehicles and trailers plus the cost of operating their customs-critical headquarters in Green, Ohio. FedEx Kinko's traceable costs include operating 1,290 Office and Print Centers as well as the salary

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