strategic management - fedex corporation

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Strategic Management Professor: Vahid Victor Keyhani Group 3 Đào Ngọc Lan Đài - 332929 Trần Ái My - 332966 Nguyễn Thị Trà My - 332953 Trần Quang Khôi - 332969 Nguyễn Trọng Tấn - 332955 Ngô Thùy Phương Thảo - 332942 Phạm Thùy Trang -332964

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Page 1: Strategic management - FedEx Corporation

Strategic ManagementProfessor: Vahid Victor Keyhani

Group 3Đào Ngọc Lan Đài - 332929

Trần Ái My - 332966Nguyễn Thị Trà My - 332953Trần Quang Khôi - 332969Nguyễn Trọng Tấn - 332955

Ngô Thùy Phương Thảo - 332942Phạm Thùy Trang -332964

Page 2: Strategic management - FedEx Corporation

Contents 1. Introduction: Overview, Mission & Vision Statements2. Company history3. Corporate social responsibility (CSR)4. Scope5. Operations 6. Competitive advantages 7. Marketing & E-commerce8. Recommendations9. References

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1. Overview - Mission & Vision Statements

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COMPANY OVERVIEW• FedEx Corporation (FedEx)

is a provider of transportation, e-commerce and business services.

• The company offers:– time certain delivery services– international trade services– in-store services– online services– business solutions

• FedEx operates through four segments.

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COMPANY OVERVIEW• FY15 Revenue: $47.5

billion• Team Members: More than

325,000• Countries and Territories

Served: More than 220

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Mission Statements FedEx Corporation will produce superior financial returns for its shareowners by providing high value-added logistics, transportation and related business services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served. FedEx will strive to develop mutually rewarding relationships with its employees, partners and suppliers. Corporate activities will be conducted to the highest ethical and professional standards

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Vision Statements

• It’s what we do• It’s why we matter • It’s who we are

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Objectives

• Financial Goals– FedEx Corporation provides strategic leadership

and consolidated financial reporting for the FedEx family of companies, managing a broad portfolio of transportation, e-commerce and business services. FedEx Corporation has clearly outlined goals and strategies for the future

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Objectives

• Long Term Goals– Achieve 10%+ operating margin– Increase EPS 10%-15% per year– Grow profitable revenue– Improve cash flows– Increase ROIC– Increase returns to shareowners

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Strategies

• FedEx plans to focus on these five strategies to grow as a business.– Grow core package business– Grow internationally– Grow our supply chain capabilities– Grow through e-commerce & technology– Grow through new services & alliances

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2.FEDEX’S HISTORY

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1971 - 1989• 1971: Federal Express Corp. is

founded in Little Rock, Arkansas.

• 1975: Federal Express installs its first drop box.

• 1977: Federal Express purchases seven Boeing 727 aircraft

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• 1978: listed on the New York Stock Exchange (FDX).

• 1983: reach revenues of $1 billion .

• 1989: purchases Flying Tiger

1971 - 1989

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1990 - 1999

• 1990: win the Malcolm Baldrige National Quality Award in the service category.

• 1994: launches fedex.com • 1995: opens the Asia Pacific hub

in Subic Bay• 1998: creates FDX Corp.• 1999: opens a hub in Paris airport

and launches its Euroone network

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2000 - 2015• 2000: FDX is renamed FedEx

Corporation.

• 2001: create an alliance with U.S. Postal Service.

• 2004: acquires Kinko's for $2.4 billion.

• 2005: launches around-the-world flights.

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2000 - 2015• 2007: expands in India

• 2012: acquires Rapidão Cometa, Brazil.

• 2014: acquires the Supaswift businesses in South Africa and six other countries.

• 2015: starts the construction of the FedEx Shanghai International Express

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3. CSR

Ethical practices

Unethical practices

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Ethical practicesEnvironment & efficiency

FedEx Fuel Sense

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Ethical practicesDisaster readiness and relief

Disaster Response Unit (DRU)

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Ethical practicesPedestrian and road safety

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Ethical practicesCommunity and philanthropy

Center for Sustainable Transport

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Unethical practices

Overcharging business customers Taking "no action" to fix it

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4. Scope

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Package Shipping in US

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International Package Shipping

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Freight Shipping

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• FedEx launched the Euro network in 1999.• Two major hubs located in Paris, France and

Cologne, German.

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• FedEx connect with more than 400 intra-Asian flights to ensure complete coverage of the region, including leading business centers such as Seoul, Tokyo, Osaka, Taipei, Hong Kong and Bangkok.

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5. Operations

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Company Structure

FedEx Corporation(325,000 employees)

FedEx Services(12,000 employees)

FedEx Office

FedEx Tech-Connect

FedEx Express(165,000 employees)

FedEx Trade Networks

FedEx Supply-Chain

FedEx Ground(70,000 employees)

FedEx Smart-Post

FedEx Freight(39,000 employees)

FedEx Custom Critical

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Key Process

Verify order data

Select appropriate routing

Designate service provider

Shipment tracking

Process invoices

Prepare billing

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Technology

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Technology • In 2007,

– Launched FedEx Innovative Labs– Developed Digital Assisted

Dispatch System and Electronic Trade Documents

• In 2010,– Launched Global Business Data

Visualization Experience– Introduced the first all-electric

trucks

• Recently, – Built private cloud

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6. Competition

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Overall

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FedEx vs UPS

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FedEx vs DHL

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FedEx’s Competitive Advantage

• Cost savings• Knowledge• Customer service• Market advantage• Service options• Reliability• Support• Innovation: SenseAware

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7. Marketing& E-Commerce

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8. Recommendations

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9. References• http://

investors.fedex.com/company-overview/overview-of-company/default.aspx

• http://investors.fedex.com/company-overview/mission-and-goals/default.aspx

• http://about.van.fedex.com/our-story/company-structure/• http://about.van.fedex.com/our-story/history-timeline/timeline

/• http://about.van.fedex.com/blog/tag/technology/• http://about.van.fedex.com/social-responsibility/overview/• http://investors.fedex.com/company-overview/mission-and-go

als/default.aspx• http://investors.fedex.com/governance-and-citizenship/policie

s/code-of-conduct/default.aspx• https://www.youtube.com/watch?v=7USlVgd0OyY

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Thank you for listening!