Download FedEx case study analysis and recommendation and more Papers Business Economics in PDF only on Docsity!
FEDEX CASE STUDY
ANALYSIS AND
RECOMMENDATION
Hanoi, 2021
ABSTRACT
This report includes case abstract, our recommended vision and mission statement for FedEx. Also, there are some matrixes that we use for analyzing the situation of FedEx in this case. At the end, we provide some suggestions for FedEx.
FUOB-12B
Group 1
Nguyen Huu Hai
Tran Anh Quan
Cu Huy Binh
Nguyen Viet Anh
Strategy and Innovation
1. Case abstract.
- FedEx is looking for a new strategic plan for the future to develop their logistic system further. In order to do that, FedEx is looking to handle each problem in each factor. In addition, the case is divided into strategic business operations and strategic for human resources management. Also, they try to be efficient in its operations to be successful in the dynamic market. This company should be in a position to single out opportunities and challenges to emerge successful in the logistic industry. 2. Vision statement.
- FedEx will ensure that safety is considered in all operations. Corporate activities will be conducted to the highest ethical and professional standard. 3. Mission statement.
- We aspire to make FedEx reduce carbon emission and use recycled materials to prevent global warming and FedEx will be conducted to the highest ethical and professional standard. In addition, FedEx is trying to expand globally to expedite service. We are buying back shares for expect liquidly moving forward without any additional debt, then we provide an airfreight to support our logistic service. Furthermore, we ensure great cost savings for our customers who do not need the volume full-size truck delivery by modernizing its airline and trucking fleet. 4. SWOT analysis. Strengths Weaknesses
- Reputation
- Good financial situation, high EPS
- High rate of domestic market share
- Applying recycling policy
- Lack of some positions in the organizational structure.
- Service depends on fossil materials and fuel Opportunities Threats
- Demands for Air Freight increases
- International market is potential
- The developments and the advantages of Natural Gas Powered Trucks
- Rise of E-commerce
- Many strong competitors
- Air Freight is competitive
- International market is competitive
- Rise of E-commerce
- Less Load Truck requires high cost
- Awareness about the environment is rising. 5. SWOT matrix.
- Based on the factors in SWOT analysis, we provide IFE and EFE matrix below. EFE matrix Key external factors Weigh t Rating Weighted Score Opportunities
- Demands for Air Freight increases. 0.15 4 0.
- International market has high potential. 0.15 4 0.
- The development and the advantages of Natural Gas Powered Trucks
- Rise of E-commerce 0.05 3 0. Threats
- Strong competitors. 0.1 2 0.
- Air Freight is competitive. 0.1 2 0.
- International market is competitive. 0.1 2 0.
- Rise of E-commerce. 0.15 1 0.
- Less Load Truck requires high cost. 0.05 2 0.
- Awareness about the environment is rising. 0.05 2 0. Total 1.00 2. IFE matrix Key internal factors Weight Rating Weighted Score Strengths
- FedEx has a good reputation. 0.2 4 0.
- FedEx is in a good financial situation. Its EPS is high. 0.2 3 0.
- FedEx has a high rate of domestic market share. 0.2 4 0.
- FedEx applies a recycling policy. 0.15 3 0. Weaknesses
- FedEx lacks some positions in its organizational structure. 0.15 2 0.
- FedEx’s service depends on fossil material and fuel. 0.1 2 0. Total 1.00^ 3. 7. IE matrix.
- Base on the result of EFE and IFE matrix, we provide IE matrix below. The IFE total weighted scores The EFE total weighted scores Strong 3.0-4. Average 2.0-3. Weak 1.0-2. 4.0 3.0^ 2.0^ **1. High 3.0-4.
I II III Medium 2.0-3.
IV Fedex V VI Low 1.0-2.
VII VII IX** Based on this matrix, FedEx is suitable with strategies such as Vertical & Horizontal Integration, Market Penetration, Market Development, Product Development. 8. CPM matrix. FedEx United Parcel Servic United States Postal Deutsche Post (DPW.DE
Y-axis: 2. X-axis: 3 Aggressive profiles: Achieve major competitive advantages in a growing and stable industry.
10. BCG matrix. FedEx Express, FedEx Ground and FedEx Freight is suitable with Vertical & Horizontal Integration, Market Penetration, Market Development and Product Development. FedEx SmartPost is suitable with Market Penetration, Market Development, Product
Development, Divestiture. FedEx Service is suitable with Product Development, Divestiture, Diversification and Retrenchment.
11. Grand Strategy matrix. The players in this industry should choose strategies such as Market Development, Market Penetration, Product Development, Vertical & Horizontal Integration and Related Diversification.
FedEx’s service depends on fossil materials and fuel.
Total of internal part 1.0 2.9 3. Total 6.15 6. These two strategies are not extremely different. Moreover, the scores for both of them are also good. So, it is not bad if FedEx apply these two strategies together.
13. Recommendation. - Based on our analyzing, we will present some suggestions for FedEx in this case. Firstly, there are some actions that we mentioned above in the SWOT matrix. Moreover, FedEx should apply both market development and product development strategy. - The market development strategy will help FedEx to compete with others in the international market. FedEx can aim to reach some nations that it does not operate in such as Myanmar, North Korea, Iran... Therefore, FedEx can increase their rate of market share. - The product development will help FedEx to compete with others in both the international market or domestic market. With the innovation in their service, they can make an impression on their competitors. Moreover, using this strategy, FedEx can not only attract more new customers but also remain old customers. Thus, FedEx can increase their profit and make it become stronger.
