Strategic management concepts and applications

Strategic Management

Question 2) The company I have chosen is FedEx. Its primary business is overnight package delivery. The mission of the organization is to deliver every package on time. The organizational culture has a couple of key elements. One is the military culture that has been passed down from founder/CEO Fred Smith. This culture is very rigid, necessary for a business built on punctuality. The other element of the culture is strong customer service, because the business is built on regular customers and brand loyalty.

The long-range objectives for FedEx are to build out global capacity in its core business. The firm is also embarking a growth strategy involving its other lines, some of which have much less market penetration. These include customers clearance, less-than-truckload freight and office services. Over the long-run FedEx hopes to build synergies between their different operating units, allowing them to enhance the customer experience and thereby market share.

Question 1) FedEx's present strategy is working well. The company created its industry and has no emerged as the dominant player in that business. Evidence of FedEx's success can be found in Dahl's departure from the U.S. market. FedEx has several strengths, including a strong culture, established transportation networks, powerful brand and favorable plane lease terms. Weaknesses include being exposed, full force, to the business cycle. Another weakness at FedEx is the Kinko's unit, which has failed to generate synergies and seldom turns a profit. There remain opportunities to develop overseas businesses, and further opportunities to increase its presence in customs, LTL and other key transportation-related industries.