Level and Corporate-Level Strategies D

Feedback: Thank you for your Assignment 1 submission. I have graded your submission and developed feedback for you to review. As shared in the announcements and our bi-weekly calls, please carefully review my feedback to ensure you have an improvement strategy for the next assignment. Unfortunately, on this first writing assignment, you earned a grade of  D (69%). I would like to see you earn an A on all of your assignments and it is my goal to help you improve. While you cannot resubmit your responses to the requirements in this assignment for a better grade, what I encourage you to do is use this feedback and the information shared.

REQUIREMENT #2: Moving on to the second rubric criterion, here, you had an opportunity to apply the I/O model and the resource-based model to determine how your corporation could earn above-average returns. Figures 1.2 and 1.3 in our textbook provide an outline of the models. Understanding a corporation's external and internal factors are critical components in strategy development, compliance, growth, and profitability. Decision makers must consider not only what's going on inside their organization but also the ever-changing environment outside and how the two compliment and compete. The I/O and resource-based models are tools that can be used to conduct these analyses. Remember that in order to earn full credit, your responses must thoroughly address each grading criterion and in the case of these models, a thorough application of the internal and external models was needed.

Unfortunately, your response was an insufficient application of the models. For example, each model provides 5 specific actions a corporation should take to earn above average returns. A thorough application of the model would include clearly addressing  each of the actions for your specific corporation. 

REQUIREMENT #3: The third rubric criterion gave you an opportunity to assess how your corporation's success is influenced by its vision and mission statements. There are many internal and external influences on business success. Studying an impact created by the business can provide some interesting insight into the corporation's overall strategy and likelihood to succeed.

You provided an insufficient assessment in this grading area. I encourage you to dig deep into each concept. Focus on providing responses to each grading criterion that includes the level of depth and thoroughness needed to fully display your knowledge and readiness to add a higher level of value in business. 

Strategic Management and Strategic Competitiveness

Strategic Management and Strategic Competitiveness

FedEx Corporation [NYSE: FDX] is an American multinational conglomerate founded in 1971. The company has its headquarters in Memphis, Tennessee, and provides transportation, e-commerce, and business services in the United States and 219 other countries (Fedex, 1). The paper will delve into how the company operates in a global business environment and the technology they use, examining the external factors that the company has to contend with. The paper will also show how the company's vision and mission statements keep them on track to deliver for its shareholders, employees, and customers.

Globalization

FedEx Corp. has its most considerable presence in the U.S. and has rapidly expanded its presence into newer markets over the last 50 years. They produce a broad range of e-commerce, transportation, and business services under the FedEx brand. They are well known for delivering express small packages and document services through FedEx Express. The company's main competitors are UPS and USPS. They have expanded globally by advocating for international aviation deregulation. They actively played a considerable role in helping link global markets by providing numerous economic benefits for several nations, including lower airfares, expanded air service and choice in Europe, and more investment, trade, and jobs in China (Fedex, 1).

The company ranks 39th on the Fortune 500 index and has a market cap of $52.95 billion as of May 2022. In F.Y. 2021, the company recorded a revenue of 83.959 billion, which marked a 21.3% increase from the previous year (Hughes,2 ). The global transportation and logistics industry is highly competitive, with FedEx, UPS, and DHL being the three biggest players. Even though FedEx has a strong presence in the U.S., Europe, and Asia, UPS is the leader in the market in all of North America. DHL is the market leader in Europe, and they have a large presence in Asia. FedEx has been known to fuel innovation and create and supports  local jobs, all while helping lift individuals and their communities in major global markets. FedEx worked with 360,000 suppliers globally, employing more than 16.5 million individuals (Hughes, 2).

Technology

FedEx is a forward-thinking company and is always looking to innovate to save money and provide its customer base with the best service possible. From 2019 to 2022, FedEx worked to develop a prototype of Roxo, the FedEx SameDay Bot (Fedex, 3). It is an autonomous delivery device designed in response to the rapid growth of e-commerce, the complexities and expense of last-mile delivery, and the growing need to develop a lower-emissions transportation technology.

 FedEx has also been working in conjunction with Peloton Technology on developing "vehicle platooning." The technology involves electronically linking trucks into small groups called "platoons." They would use wireless vehicle-to-vehicle communication (Fedex, 3). The company's driver would be in the truck to operate the front controls, which are the acceleration and brakes of the trucks behind them. The technology might be released by the end of the year and was designed to reduce wind resistance and save fuel.

Industrial Organization Model

FedEx has to be registered with the U.S. Department of Transportation for their delivery trucks to be on the road delivering packages which means they have to follow DOT regulations like ensuring drivers have been drug tested, daily tracking of on-road hours drive a maximum of 11 hours after ten consecutive hours off duty, May not drive beyond the 14th consecutive hour after coming on duty, following ten consecutive hours off duty. Off-duty time does not extend the 14 hours, and all must take a 30-minute break daily (FMCSA, 4).

FedEx is the largest freight airline in the world (Doran, 5). It has to follow the rules and regulations set by the Federal Aviation Administration under PART 121 requires it to have an FAA-approved hazardous materials program. Air carriers who elect to accept, handle, and transport dangerous goods in air commerce must develop a complete and detailed hazardous materials program covering all aspects of the acceptance and transportation process and training for all employees (FAA, 6).

Resource-Based Model

FedEx is always looking to innovate and protect the environment. The company uses the latest tracking system to scan packages and let customers know where their package is from pick up to delivery. They have invested in newer technology and replaced older vehicles to help reduce emissions. The company has a goal to have all-electric vehicles by 2040. To assist with this, they have designated more than $2 billion of the initial investment in three key areas: vehicle electrification, sustainable energy, and carbon sequestration (FedEx, 7).

Vision

FedEx promises to “be a dynamic and progressive courier services firm that leverages technology and impacts the lives of all people.” (FedEx, 8). The company plans to ensure that each division will be run efficiently to produce added value for its customers and employees. While continuing to use the latest technology that can allow the business to run as efficiently as possible

Mission

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 (FedEx, 8). The company wants its shareholders to know they plan to continue to innovate o keep the company on the cutting edge of technology which will increase productivity and profits.

Stakeholders

FedEx (NYSE: FDX) is owned by 74.26% institutional shareholders, 8.83% Fedex insiders, and 16.92% retail investors. Frederick W. Smith is the largest FedEx shareholder, holding 20.05M shares representing 7.94% of the company (Wall Street, 9). The institutional shareholders have the largest share of the company and show that the company is stable and credible within the investment community. The downside of institutional shareholders holding such a large stake is that they can spark doubt among investors by selling their shares, causing the stocks to drop dramatically. For that reason, the company must operate with that in mind.

Insider ownership in the company is the board of directors, and the company's management must report to the board and get direction from the board about the company's direction. Retail investors have invested through a brokerage firm, and investing is not their specialty. Lastly is Fred Smith, who started the company and he has the most significant shares for an individual.

Sources

1.FedEx Newsroom. (2022, November 3).  New global report demonstrates fedex economic impact. FedEx Newsroom. Retrieved January 16, 2023, from https://newsroom.fedex.com/newsroom/asia-english/new-global-report-demonstrates-fedex-economic-impact 

2.Hughes, J. (2022, July 10).  Fedex competitors analysis. Business Chronicler. Retrieved January 16, 2023, from https://businesschronicler.com/competitors/fedex-competitors-analysis/ 

3. FedEx. (n.d.). Retrieved January 17, 2023, from http://www.fedex.com/gb/enews/2018/february/logistics-tech-trends.html 

4.Summary of hours of service regulations. FMCSA. (n.d.). Retrieved January 18, 2023, from https://www.fmcsa.dot.gov/regulations/hours-service/summary-hours-service-regulations 

5.Doran, M. (2022, August 19).  Fedex TOPS IATA World Cargo Carrier Rankings in 2021. Simple Flying. Retrieved January 18, 2023, from https://simpleflying.com/fedex-tops-world-cargo-rankings-2021/ 

6.Regularly scheduled air carriers (part 121). Regularly Scheduled Air Carriers (Part 121) | Federal Aviation Administration. (n.d.). Retrieved January 19, 2023, from https://www.faa.gov/hazmat/air_carriers/operations/part_121 

7.FedEx Newsroom. (2022, June 24).  Fedex commits to carbon-neutral operations by 2040. FedEx Newsroom. Retrieved January 20, 2023, from https://newsroom.fedex.com/newsroom/asia-english/sustainability2021 

8.Home > company overview > mission & goals. FedEx. (n.d.). Retrieved January 20, 2023, from https://investors.fedex.com/company-overview/mission-and-goals/default.aspx 

9.Who owns fedex? WallStreetZen. (2023, January 21). Retrieved January 22, 2023, from https://www.wallstreetzen.com/stocks/us/nyse/fdx/ownership 

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