Strategic Audit Report: Executive Summary

Running head: Strategic audit report 1

Strategic audit report 4

Strategic audit report

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Part 1

FedEx implements a continuous strategic audit in monitoring small progresses or variation from expected performance on a short-term basis. This is attained through information systems at FedEx which is equipped to give useful insights into the progress and outcomes of implementation initiatives. FedEx agents have access to real-time client data for any number of customers. Managers and other essential individuals can also view this data. Having this kind of real-time data access is crucial for FedEx's performance monitoring and forecasts, as it allows them to see what their customers are ordering and from which divisions, if any. FedEx is able to detect issues, isolate causes, and develop workable remedies thanks to its extensive network of computerized systems (Yun et al, 2021).

FedEx has the capability to perform both functional and consolidated financial analysis and evaluation. FedEx, the parent business, receives financial data from each of its operating divisions and compiles it into a unified report. Each business unit within the company can have its own financial data reported and analyzed in addition to the overall company's data. FedEx needs to look at things from both the operating company level and the corporate level in order to have a full picture of the company's financial health.

FedEx relies on benchmarking to examine its operations and results against those of its competitors. The organization must assess its performance and quality of service in order to identify and address gaps, improve processes, and expand offerings. In order to maintain their high level of service and cater to their customers' individual preferences, FedEx relies heavily on benchmarking data. As described in the company's values, FedEx's corporate culture includes a robust performance-tracking technology system, quantifiable sustainability goals, and a rewards program for top performers. Awards for exceptional achievement reinforce FedEx's high-performance culture and encourage employees to go above and beyond in their pursuit of customer satisfaction (Tanriverdi, & Du, 2020).

The current strategic audit tools and processes used are effective. This is because they have so far enabled the company to operate among the best performing businesses in the global market.

Recommendation

FedEx can gain more from evaluating its performance in relation to the prevailing market trends. This can be attained through implementing Core Competence Analysis. This type of strategic audit is vital for a business as it establishes the fundamental strengths of the business and areas that needs more effort in maximizing the differentiating advantage of the business (Alvarenga et al, 2019). This would improve the overall value of FedEx Company.

Part 2

Types of output

There are three main types of output in which FedEx use in determining the performance of the company in a given period. The first type of output is SWOT analysis output where the management focuses at evaluating the internal and external business environment and determining the most appropriate strategy to apply in operating optimally. The second type of output used by FedEx is performance analysis. This focuses at determining the prevailing performance of the company based on established information that is obtained in earlier periods. FedEx use this output in determining the performance trend of the company over time. The third type of output used in the company is value chain analysis where the systems within the organization are assessed based on their performance (Huong et al, 2022).

Behavior controls

The company has set rules and regulations that dictate the expected mode of conduct among the members of the organization. The regulations are documented as Code of Conduct and is made available to every member of the organization upon joining FedEx. This makes it easier for the management to evaluate performance of the members of the organization based on their compliance to the expected code of conduct or behavior in the organization (Huong et al, 2022).

Input controls

FedEx has established an effective input control strategy that eliminates possible loops in the performance of the company as a result of faulty inputs or unqualified members of staff or employees. This is attained through the use of hiring criteria selection, appraisal requirements and promotion. With these processes, there are lower chances of the company experiencing unqualified people occupying positions of leadership within the organizational structure. Also, the company has an effective procurement system to ensure resources acquired by the company meets quality standards based on the predestined purpose within the organization (Kumar, 2020).

Reference

Alvarenga, J. C., Branco, R. R., Guedes, A. L. A., Soares, C. A. P., & e Silva, W. D. S. (2019). The project manager core competencies to project success. International Journal of Managing Projects in Business.

Huong, T. T., Bac, T. P., Ha, K. N., Hoang, N. V., Hoang, N. X., Hung, N. T., & Tran, K. P. (2022). Federated Learning-Based Explainable Anomaly Detection for Industrial Control Systems. IEEE Access, 10, 53854-53872.

Kumar, A. (2020). A STUDY ON SUPPLY CHAIN MANAGEMENT OF FEDEX EXPRESS TRANSPORTATION (Doctoral dissertation).

Tanriverdi, H., & Du, K. (2020). Corporate Strategy Changes and Information Technology Control Effectiveness in Multibusiness Firms. MIS Quarterly, 44(4).

Yun, M., Xiong, J., & Wong, K. (2021). Is FedEx a Good Investment Choice?. Frontiers in Economics and Management, 2(2), 171-175.