The Internal Environment
Mike34
ExternalFactorAnalysisSummaryWorksheet.....1.docx
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External Factor Analysis Summary Worksheet
|
|
FACTORS |
WEIGHT |
RATING |
WGTD SCORE |
COMMENTS |
|
|
OPPORTUNITIES |
|
|
|
|
|
O1 |
Expanding in emerging markets |
0.14 |
2 |
0.28 |
FedEx has the opportunities of expanding in emerging markets in Asia and Latin America to increase sales |
|
O2 |
Focusing on retail e-commerce |
0.20 |
1 |
0.20 |
FedEx has the opportunity of leveraging on the growing demand for delivery in e-commerce (Degirmenci, 2022). |
|
O3 |
Innovation |
0.13 |
3 |
0.39 |
The company has the opportunity of expanding its innovation to tap into technologies such as Blockchain (Natarajan & Katina, 2021). |
|
O4 |
Portfolio diversification |
0.10 |
5 |
0.50 |
With the growth in online retailing FedEx can capital ion this to expand its portfolio |
|
O5 |
Expansion through merger and acquisition |
0.05 |
9 |
0.45 |
This strategy is good for FedEx to penetrate into new markets. |
|
|
|
|
|
|
|
|
|
THREATS |
|
|
|
|
|
T1 |
Unstable fuel prices |
0.09 |
6 |
0.54 |
The volatility in the global fuel prices leads to increase in the operational costs and reduces the profitability |
|
T2 |
High competition from online giants such as Amazon |
0.11 |
4 |
0.44 |
FedEx is facing high competition especially from online retail giants such as Amazon. This competition is likely to affect the market share of the company and reduce profitability |
|
T3 |
Trade tensions between the US and China |
0.06 |
8 |
0.48 |
The trade war between the US and China has imposed great threat to FedEx as China is a big market for the company’s services |
|
T4 |
The looming global recession and high inflation |
0.08 |
7 |
0.56 |
The looming economic meltdown and high inflation is of great concern to FedEx since it will affect demand of products and services of the company |
|
T5 |
Strong labor laws |
0.04 |
10 |
0.4 |
Most governments in which FedEx operates have focused on protecting the employees’ rights. There with huge operations and many employees FedEx may incur huge cost |
|
|
|
|
|
|
|
|
|
TOTAL SCORES |
1.00 |
|
4.24 |
|
References
Degirmenci, C. (2022). The Role of Logistics in Global Value Chains: Case of Mars Logistics Company (Doctoral dissertation, Mykolo Romerio universitetas).
https://vb.mruni.eu/object/elaba:116902616/
Natarajan, G., Ng, E. H., & Katina, P. F. (2021). BLOCKCHAIN TECHNOLOGY AND DIGITAL SUPPLY CHAINS: TOWARDS REVOLUTIONIZING THE INDUSTRY OF THE FUTURE.
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