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Rodrigo Loya Maria A. Silva Colin Green Sandra Vargas Melanie Rivera Jhael De Alba

History
 Founded in 1971 by Frederick W. Smith.  First Investment  1980’s:
– FedEx reached its maturing stage. – First US company to reach $1 billion in revenues.

 FedEx handles 3.3 million packages

Saturday delivery service .supply chain management  FedEx an Innovator company: .e-commerce .10:30 am next day delivery .General Environment  Global Provider of: .Transportation .Overnight package and letter delivery .

weekends and holidays. • • • Cost effective.600+ miles second day delivery. Handles millions of shipments. 1. Speed shipments across the border. 24hrs. Alternative for small packages. Electronic custom clearance. Delivers in 1 to 2 business days. Heavy weight shipments. 600 miles next day delivery. . Less than truck load (LTL) freight. Distance and time are wider. • • • Custom brokerage. 7 days a week.• • • Most familiar service. including nights. • • • • • • When customers need it now.

External Environment      Household name Competitive environment Global Presence IT advances Strong market position in air freight .

Competitive Environment      World wide presence Dominates ground services domestically High market share in the US Acquired full ownership of Mail Boxes. Intense competition with FedEx . etc.

.Competitive Environment     Recent acquire of ground services Specialize in air freight deliveries Global presence Other mergers. the effects.

Competitive Environment  Largest customer. but strong competitor  Attempt injunction against the alliance .

Internal Evaluation Management  Uses strategic management in planning and meeting goals Marketing  Major advantage by being a household name  Strong in its corporate structure  Able to respond to a with low absenteeism and low changing consumer turn over rates at the corporate environment by operating level. with wages and benefits increasing but with profit and incentive sharing plans reduced . by paying well and showing respect independently completely and collectively  2002 hours were reduced.

Production/Operations  Industry leaders in Air Express  Handles well over 3 million packages daily.Internal Evaluation Finance/Accounting  Fairly strong financial position  Year 2002 Highlights include large free positive cash flows. 22% increased net income and a $. incurred large amounts of debt for an expansion project.  Excellent ground crew & pilots  24 hour customer service .  Fairly weak in leveraging.05 dividend declared on common stock.

 Very aware of competitors programs and systems.8 Billion – Doubling package volume capacity – 10 new distribution hubs & 23 expanded hubs – Relocation or expansion of up to 300 existing facilities – Expected completion in 2009 CIS  Highly innovative software user and designer.Internal Evaluation Research & Development  Very innovative R&D team.  Six year expansion plan – Estimated cost of over 1. .  Constant and up to date system employee training.

SWOT Analysis  Strengths – – – – – Household name Product quality Global expansion Abreast in technology Air fleet  Weaknesses – Employee racial discrimination – Lack of ground transportation force – Costly technology innovations – Judgment for late deliveries – Increased debt .

SWOT Analysis  Opportunities – Global business growth – Online consumer services – Increase demand in logistics – Alliance with USPS  Threats – Foreign competition entry into home – Economic standing – Online competitive advantages of rivals – Gain in competition service costs .

Space Matrix) . opportunities and positive industry strength (SWOT Analysis.Strategy Formulation  Strategy 1 – Online subsidiary with a consumer retailer  Creating a collaborative union utilizing technological strengths and online consumer industry growth to provide full consumer opportunities through the convenience of e-commerce  Multiple strengths.

Space Matrix) .Strategy Formulation  Strategy 2 Travel  Last minute discount air travel tickets available to the public in order to gain additional profits from the already existing and operating transportation system in use  Major positive strength and opportunity (SWOT Analysis.

Space Matrix) .Strategy Formulation  Strategy 3 Mail  Enhancing and providing existing postal services formally provided by USPS  Strong opportunity and high competitive advantage (SWOT Analysis.

and equipment  Use strengths and opportunities as mentioned in analysis – Online consumer growth is expanding – Company is abreast in technology . technology.Evaluation of Alternatives  Forward Integration – Online Subsidiary With Consumer Retailer  Larger companies become more profitable – Ex: Wal-Mart. Target  Company is equipped and able to expand in this area – Leadership.

Evaluation of Alternatives  Horizontal Diversification Travel  Currently operates one of the largest airlines in the world – Has fleet of over 380 jets – Jets have state of the art instrumentation  Already employs more than 4200 skilled pilots  Has some of the best air travel technology and equipment  Highly capable to execute .

Evaluation of Alternatives  Concentric Diversification/Horizontal Integration Mail Opportunity from SWOT analysis Existing contract with USPS Future services to be rendered to private outside provider Capable of providing additional USPS services – – – – .

Evaluation of Alternatives Mail  Counteracting competitive strategic moves  USPS recognition of lack of resources .

Strategy Implementation  Strategy 3: – Concentric Diversification/Horizontal Integration Mail – Additional personnel – Insurance – Training  employee evaluations .

etc.Strategy Implementation Mail  Service sites by way of franchise – UPS and Mail Boxes.  Ample resources to accommodate USPS needs  Expansion project can handle additional/new inflows – Extra packages and mail .

Strategy Implementation Mail  Advertising  TV  Internet  Sporting events/arenas  New labeling on boxes .

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d.Pop Quiz a. c. . b.

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