Essay on "Global Corporate Strategy Fedex"

Essay 11 pages (3117 words) Sources: 1+ Style: Harvard

[EXCERPT] . . . .

global Corporate Strategy, FedEx

Global Corporate Strategy -- the Case of FedEx

In a world in which change became the only constant, all individuals and groups of individuals must find means to survive. As dramatic as the statement might sound, it is in fact very true. Most of the changes which impact and modify our contemporaneous society come from the evolution of technology, and evidence in this direction stands our daily usage of technology to do our work or live better. Aside technology however, change also comes from the growing forces of globalization, which allow individuals, companies and resources to more easily transcend boundaries and serve purposes other than those initially intended.

In a context of rapidly evolving circumstances, economic agents develop strategies that generally integrate technology as a creator of new organizational value, and then they strive to expand their operations globally. This is of course true for those entities which possess the necessary resources to fund these endeavors, such as courier company FedEx, the main actor of this report. The research commences with an introduction to the challenges of the contemporaneous society, and then continues with an introduction to the express transportation and logistics industry. The findings indicate that it is crucial for each player within the industry to forward a strong vision and a visionary leadership, and to posses a reliable transportation and logistics infrastructure and a hi-tech virtual information infrastructure. FedEx can pride itself on being the owner of all these.

Consistency was a continuous presence within the strategies implemented by FedEx. Regardless of time period, the executives at the courier company were focused on the integration of technology (including internet applications) within business models and processes, as well as on efforts to expand the company -- these would be most commonly materialize in mergers and acquisitions. Despite the successes, FedEx seems to have placed the staff members at a secondary position in the hierarchy of organizational needs and resources, and it is recommended that they readdress this particular situation.

1. Introduction

The evolution of technology, and alongside with it, the evolution of the human race, seems to gradually turn into the constant feature of our life. We use technological applications on daily basis to increase the quality of our life, to perform our professional chores or to enhance our leisure time. Given this situation, it was only natural of organizational owners and managers to desire and strive toward the implementation of the developments within the business operations. These actions then became more efficient, with a reduced consumption of resources, delivered within a shorter time period, delivering a product that would better satisfy the needs of a larger customer palette, and eventually materializing in higher levels of financial gain for the economic agent. These very desiderates were the objectives on the minds of the FedEx executives when they perfected their strategic approach to business.

Nonetheless, it has to be mentioned, that through the nature of the operations they handle, as well as through the abundance of resources at their disposal (human resources, technologies and mostly, capitals), FedEx was able to introduce technology-based strategies at a global level and as such enhance their profitability rates. This has been possible due to the growing forces of globalization and market liberalization, which allowed economic agents to transcend boundaries, benefit from the comparative advantages of other regions, and sell their own products to wider consumer markets. Globalization also meant that the circulation of people was liberalized, and, as more and more members of the family lived in globally diverse regions, they would send packages to one another and as such create an increased demand for package delivery services. All in all, in a favorable context, FedEx was able to seize the opportunities and use its resources and abilities in a means that led to even more success.

2. The express transportation and logistics industry

The express transportation and logistics industry is often overlooked as a major player and presence within global economics. One must not however forget that this industry contributed significantly to the international transportation of commodities and finished merchandise, meaning as such that it provided a major component of the infrastructural backbone of global development. The industry is then contributing to financial prosperity also through its creation of jobs across the globe, which consequently increases the living standards of the populations.

At a global level, the main players within the industry are UPS, FedEx, DHL Express, Express Courier International and World Express Courier. These large companies base their success on the increased access they have to resources, and compete against each other in terms of business efficiency levels. These large organizations also benefit from the relations they constructed with various global partners, the ability to purchase bulk fuel (which materializes in cost efficiencies) or their large fleets. The small size companies can generally complete at a local level or by offering niche services and delivering top niche consumer markets.

In terms of competition, this is generally increased among the participants to the express transportation and logistics industry operations. It is still useful that, as mentioned throughout the introductory section, the developments within the communities have also generated an increased demand for courier services. A final specification relative to the competition is that this is also common from other types of companies, especially those offering logistics and transportation services by other means than road. FedEx for instance is met with competition from airline and vessel carriers. Nevertheless, what has to be noted is that these services are generally perceived by consumers and industry participants as complementary services, rather than competitive ones (Hoovers, 2010).

There are three necessary requirements for any company activating within this industry to stand any chances of success. First of all, the organization would have to construct its business model on a strong strategic vision, which would be accomplished through the efforts of a visionary leadership. Secondly, there is the impending necessity for a strong transportation and logistics infrastructure. Finally, the organization would have to base its operations on a strong virtual information infrastructure. FedEx has succeeded in simultaneously complying with all three needs.

Strategic vision

It is without any doubt that the ultimate scope of the FedEx operations is that of registering as many financial gains as possible. Yet, in achieving this desiderate, it was necessary to draw the favorable attention of the public, by presenting the company in a positive light. With this objective in mind, they have created a strong vision of the company's actions and intents, in order to reveal the benefits they can create for the communities and the entire world. In this order of ideas, the "FedEx Corporation's vision is a world where goods and information move quickly and seamlessly. A world where businesses source raw materials and parts globally, then move high-value goods quickly between continents and across time zones. A world where global information and transportation networks can shrink time and distance, creating competitive advantages for customers" (FedEx Corporation SEC Filling, 2000). In other words, FedEx is acting in accordance to a vision of making the world a better place by enhancing the populations' access to information, commodities and products.

Visionary leadership

The visionary leadership at the FedEx Corporation can be succinctly presented as a business approach in which the managerial team looks towards the future, and develops and implements strategies which will answer to emergent changes, ensure customer satisfaction, and organizational development and alignment to new requirements. The backbone of the FedEx leadership has been constituted by a strategy to innovate, focused on a sustained improvement of the logistics and technological infrastructure. Another component of their leadership has been that of creating a pleasant and dynamic working environment, in which employees are both rewarded, as well as stimulated and trained to perform at superior levels of quality. Then, another element is constituted by the desire to expand to other regions, best depicted by the company's investment policy. What must not be forgotten is that the courier company has also been rather prudential, and has not jumped to any business opportunity, but has weighted its win -- lose characteristics.

Given the various elements in the visionary leadership implemented at the FedEx Corporation, it becomes only natural for a person occupying a highly decisive position within the organization to simultaneously posses the following nine attributes: charisma, high intellect, individual consideration, courage, responsibility and dependability, flexibility, integrity, high judgment, and finally, a high respect for people (Fast Company, 2010).

Transportation and logistics infrastructure

The second pivotal component for any player in the express transportation and logistics industry is that of a strong and reliable transportation and logistics infrastructure. This is on the one hand given by the actual fleet allowing the corporation to collect and then transport the products and commodities. On the other hand, it is represented by the very people who make the operations possible. In terms of the staff members, their numbers are of an estimated 140,000 globe-wide. The employer is striving to capitalize on their capabilities… READ MORE

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