Running head: FEDEX CORPORATION 1

FedEx Corporation

Iniobong J. Udoudo

Dr. Roger Blair

Human Resources Management

MAN53065E3-10712019

Everglades University

August 21, 2019

FedEx Corporation

Summary

FedEx Corporation or organization was founded in 1971 in Memphis. It is a logistic

company which provides transportation, e-commerce, and business services. The company is

globally presence in 220 countries and has more than 260,000 employees. In 1973 FedEx

introduced the next-day delivery revolutionizing the distribution industry. Since the

foundation FedEx made large investments both in research and development as well as in its

logistic infrastructure. As of January 2000, FedEx created a worldwide network consisting of

34,000 drop-off locations, 10 million square feet of warehouse space, 648 aircrafts, and

60,000 vehicles. In addition FedEx introduced several technological innovations which in

turn has given the company an enormous competitive advantage. Nevertheless the

environment changes constantly due to the increasing number of competitors, financial crisis

or globalization. Due to this strategic management becomes more and more important for

FedEx (Berger, 2010).

Mission Statement

Based on its mission statement that stated thus; “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. Customer

requirements will be met in the highest quality manner appropriate to each market segment

served. FedEx will strive to develop mutually rewarding relationships with its employees,

partners and suppliers. Safety will be the first consideration in all operations. Corporate

activities will be conducted to the highest ethical and professional standards” (Jurevicius,

2013). They achieved a very successful team work with fantastic collaboration.

Description of FedEx and Marketing Strategy

FedEx Corporation is an American multinational courier delivery Services Company

headquartered in Memphis, Tennessee. The name "FedEx" is a syllabic abbreviation of the

name of the company's original air division, Federal Express (now FedEx Express), which

was used from 1973 until 2000. FedEx Services began operations in June 2000 to provide

information technology, sales, and marketing support for FedEx Corp. subsidiaries FedEx

Express and FedEx Ground. Customers can also actively track and manage deliveries en

route to or from their home, without a tracking number or even a FedEx account. Moreover,

we understand that Fred Smith, the founder of FedEx started the company in 1971. FDX

Corporation was created in 1998 and later on became FedEx Corporation in January 2000..

The company operates in four segments: FedEx Express, FedEx Ground, FedEx Freight, and

FedEx Services. FedEx Express is currently the world’s number one providing express

logistics worldwide. This segment offers various shipping services for the delivery of

packages and freight. It also provides international trade services specializing in customs

brokerage, and ocean and air freight forwarding services, customs clearance services, as well

as global trade data, an information tool that allows customers to track and manage imports

and international trade advisory services, including assistance with the customs-trade

partnership against terrorism program, as well as publishes customs duty and tax information

in various customs areas. In addition, it offers supply chain solutions, including critical

inventory logistics, transportation management, and temperature-controlled transportation

services. FedEx has a workforce of more than 300,000 team members worldwide (UKEssays,

2018).

FedEx Marketing Mix Business Strategy

FedEx marketing mix covers 4Ps (Product, Price, Place, Promotion), while marketing

strategy covers pricing, advertising & distribution strategies used by the company. To explain

the marketing mix I will start with product.

 Product: The marketing mix product covers services to include; shipping, tracking and

managing your shipments - Package, Envelope, or Express Freight, Freight Shipments,

Expedited/ Extra Care Handling, Air/ Ocean Freight Forwarding etc. In each of the above

services there are various offerings offered by FedEx to its customers. FedEx has good

market share in the freight segment and it also has a good growth rate. It has a relatively

lower market share in the Kinkos (retail outlets) segment than its competitors (FedEx

Marketing Mix (4ps) Strategy, n.d.).

 Price: Before now FedEx used to charge for a package simply by measuring its weight.

There were some items like towels, shoes, tissues which were light in weight but occupy

a lot of space during transportation. Hence this used to incur costs to the company and the

margin for such products was low and thus fetches lower revenues due to their light

weight. Hence in 2015, FedEx revised this strategy to dimensional weight pricing to all

their ground packages. Thus they charged according to length, breadth and depth of the

packages instead of simply using weight as a measure. This helped FedEx increase

revenues and margins. This is the basic marketing mix pricing strategy of FedEx. This

strategy allowed FedEx to recover all its operating costs (FedEx Marketing Mix (4ps)

Strategy, n.d.).

 Place: Following is the distribution strategy of FedEx: FedEx has outlets spread across all

parts of the world where the customer can give its parcel for shipping in person. FedEx

also offers its services online where you can create an account and through that schedule

a pickup. FedEx staff will come at the designated location at the scheduled time for a

pickup of your shipment. FedEx also offers daily pickups and cancellations. The

customers can track and manage their shipments online so that they know where exactly

their parcel has reached. The FedEx staff then delivers the shipments at the desired

location (FedEx Marketing Mix (4ps) Strategy, n.d.).

 Promotion: The promotional and advertising strategy in the FedEx marketing strategy is

as follows: FedEx indulges in coming out with creative advertising campaigns which are

remembered for years like the John Moschitta Ad. Its long time Ad agency has been

BBDO. Also they run print media throughout the year. FedEx also indulges in

sponsorships of sports events that are dedicated to achievements of excellence. It has been

the official carrier of the UEFA Europa League, ATP World Tour and Rolland Garros. It

also follows Charitable giving policy. It has a separate department called FedEx Cares

which focuses on these 5 pillars: Delivering for good, Sustainable transportation,

Employment pathways, Road safety, Global Entrepreneurship. FedEx also has its own

YouTube channel on which various videos are uploaded signifying its reliability and

affordability. It also engages in excessive digital marketing promotions (FedEx Marketing

Mix (4ps) Strategy, n.d.).

 People: FedEx is one of the leading global logistics company and people are the

backbone of its business. People play a major part in the services industry. FedEx staff is

extremely friendly and cooperative with their customers. The pickups and deliveries are

done at the scheduled time without being late thus improving customer satisfaction. The

FedEx staff should be extremely coordinated so as to deliver the parcels on time without

any delay. This becomes a challenge due to its wide geographical presence. The staff

ensures that packages are delivered on time without breakages and delays (FedEx

Marketing Mix (4ps) Strategy, n.d.).

 Process: FedEx manages its delivery services very effectively. The customers of FedEx

can timely check the status of the parcel. Also customers are given the facility of express

delivery in case of urgencies. Most of its processes are automated and main focus is given

on reliability and affordability of its services (FedEx Marketing Mix (4ps) Strategy, n.d.).
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 Physical Evidence: FedEx has several outlets spread across the world, which adds to its

physical evidence. Customers are given printed invoices at the retail outlets when they are

availing the FedEx services. In case of online services, the invoices are sent to the

customers’ email accounts stating the order number and other relevant details so that they

can track their orders efficiently. Also the packages are packed thoroughly to avoid any

breakages during the transit. This completes the FedEx marketing mix (FedEx Marketing

Mix (4ps) Strategy, n.d.).

FedEx Human Resource Management Functions

 Quality Service: FedEx one of the most prominent transportation corporations worldwide

is known for its high quality services (UKEssays, 2018). FedEx during its 30 years’ time

period have brought into many innovative HR polices and functions to include;

 Time Efficient Delivery: Punctuality and customer focused services are the important

strategies of the company which distinguishes them from their competitors. The HR

strategy of the organization focuses on creating a competent, committed and customer

focused workforce (UKEssays, 2018).

 Settle Grievances: FedEx makes certain the all type of grievances of the employee is

look after. To provide temporary employees the chance to have a permanent job they

have designed a development program. Innovative HR policies aim at full employee

satisfaction therefor FedEx was named as one of the most employee-friendly organization

worldwide (UKEssays, 2018).

 HR Policies: It worth Complimenting FedEx for its HR policies, “FedEx is known to be

an example of an organization that has created an effective HR strategy that supports

productivity and profitability. The corporation’s philosophy is that employees should be

doing the kind of work they want to do (UKEssays, 2018).”

 Organizational Chart: In FedEx organizational chat, the CEO is Frederick W. Smith

Chairman, President and Chief Executive Officer. The company capacity is a $42-billion

global transportation, business services and logistics company. As a CEO, Smith is

responsible for providing strategic direction for all FedEx Corporation operating

companies, including FedEx Services, FedEx Express, FedEx Ground and FedEx

Freight. Since the inception of FedEx in 1971, Smith has been an active proponent of

regulatory reform, free trade and “open skies agreements” for aviation around the

world. To encourage technology innovation, most recently, he has advocated for vehicle

energy-efficiency standards and a national energy policy. Smith born in 1944 in Marks,

Miss., he attended Yale University, where he earned a B.A. in 1966. Smith served as an

officer in the U.S. Marine Corps from 1966-1970 (UKEssays, 2018).

Structure of FedEx Organization

FedEx implements’ three levels of management which is top level management,

middle level management and lastly the first-line management (UKEssays, 2018).

 Top Level Management: In FedEx, The roles of Top managers are responsible for

setting the mission, vision, goals and objectives of the company. These involve planning

and organizing functions more than leading and controlling. The missions set by the top

managers for the organization are providing high value-added logistics, transportation and

related business services to customers worldwide. This is the level Frederick Smith the

chairman, president and chief executive belong (UKEssays, 2018).

 Middle Management: The role of middle managers is mainly to supervise the first-line

managers. Middle managers each remains the head of different departments and has

responsibility to manage between the top managers and the first-line managers. After

receiving goals and mission planned by top managers, middle managers are to research on

a useful way to use each of their departmental resources. For example, one of FedEx’s
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missions is to provide high value-added logistic services. Therefore, middle managers

will have to find ideas and ways to use their abilities in their department and in his

capacity to achieve that mission. Middle managers involve planning and executing the

corporation’s strategic business activities (UKEssays, 2018).

 First-line Management: The first-line manager mainly oversees the running of the

organizational daily operations for the company. They are responsible in supervising

workers who perform the physical activities like separating the goods to different groups

before sending them out, collecting freight from customers, physically transporting the

goods or freight to the address given and charging fees for their services. In addition,

First-line managers play an important role as they also provide training like

communication skills and service knowledge to increase workers capabilities. All workers

under them will have to give cooperation in following their supervision in order to result

in good and efficient service provided to customers (UKEssays, 2018). In a nutshell, they

embrace team work

 Performance Management: Performance Management is a strategic method which

guarantees that the set goals of an organization are met in an efficient and effective way.

It is a complicated and broader view of the HR functions. It starts with the joining of a

new employee and ends when employee leaves the job. It is a continues process which

involves the regular communication, setting joint goals, progress review, improving

performance by implementing development programs for the employees, feedback, and

rewarding the employees.

FedEx believes in two way communication between the employees and the

management. The employees have the right to freely express their views and ideas about the

policies of the management. The company has set up different communication programs like

Open Door Policy, SFA program and Guaranteed Fair Treatment Procedure which address
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and solve the grievances of the employees and also communicates about the major events

being organized in the corporation (UKEssays, 2018).

Human Resource Planning (HRP)

The term “HR function” refers to all the tasks and responsibilities associated with

managing FedEx staff. The HR function within FedEx encompasses the delivery of a broad

range of tasks, actions, and services.to include; job assignments; external recruitment,

performance management, career development and progression; provision of remuneration

and benefits; preparation and administration of staff development opportunities; and

consultation and advice to staff and managers on FedEx’s HR culture and its translation into

work interactions and other HR matters (Human Resource Planning Society 12) In other

words, Human Resource Planning is understand to be a process where a manager has to

identify current and future human resource needs for an organization to achieve its goals. It is

a part of resource planning where the focus is on aligning the workforce with goals and

objectives of the organization (Sharma, n.d.).” Delivery of the HR function is the result of

close cooperation among many in FedEx. Managers and Supervisors are on the front line of

HR management, since they take a number of decisions with regard to the selection,

progression, and performance management of their staff. They do so in the framework of

policies designed and transactional support services provided by the human resources

functional teams based in Budget Personnel and Management Systems Department

(BPMSD). The HR function can therefore be pictured as a combination of (i) active staff

management by managers and supervisors; (ii) HR service delivery; (iii) and HR policy and

process design; supported and supervised by (iv) HR Leadership (Human Resource Planning

Society)” (Lee, 2019)

The most significant insight in involving HRP in FedEx organization is learning about

the process of best practices in the organizations. FedEx do not only define the tasks to be

accomplished within a given timeframe, but also identify the type and number of human

resources required to accomplish those tasks. Hence, Human Resource Planning is a valuable

tool and department in every business organization it helps FedEx to function well in their

business. It is a part of resource planning where the focus is on aligning the workforce with

goals and objectives of FedEx Company or organization. There are four key steps of the HRP

process. They include analyzing present labor supply, forecasting labor demand, balancing

projected labor demand with supply, and supporting organizational goals. Below is the

FedEx’s HR planning for the company’s growth:

FedEx Long Term Goals

 Increase EPS 10%-15% per year;

 Grow profitable revenue;

 Achieve 10%+ operating margin;

 Improve cash flows;

 Increase ROIC;

 Increase returns to shareowners. (Investor Relations)

Growth Strategies

FedEx plans to focus on these five strategies to grow as a business.

 Grow through e-commerce & technology;

 Grow core package business;

 Grow internationally;

 Grow our supply chain capabilities;

 Grow through new services & alliances. (Investor Relations)

Conclusion
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As earlier explained above, FedEx provides customers and businesses worldwide with

a broad portfolio of transportation, e-commerce and business services. It offers integrated

business applications through operating companies competing collectively and managed

collaboratively, under the respected FedEx brand. Consistently ranked among the world's

most admired and trusted employers, FedEx inspires its more than 290,000 employees to

remain absolutely, positively focused on safety, the highest ethical and professional standards

and the needs of their customers and communities (Jurevicius, Mission Statement of Fedex,

2013). FedEx is a US multinational courier delivery services company. FedEx was founded

in 1971 and has grown on to become one of the leading courier and logistics companies in the

world. Its revenue in 2015 was US $47 billion. It employs more than 300,000 employees.

FedEx's major global competitors are DHL International.

FedEx mission is evaluated 2.9 points, indicating above average level. The statement

lacks three components: to include markets, technology and concern for public image (social

and environmental responsibility). It mentions only one value, integrity, out of four values

used as supposed. Even though the company provides them separately, most important values

should’ve been included in the statement as well. FedEx mission is customer-oriented, which

means that it focuses on customers’ needs, unlike product-oriented missions that focus on

what products and services to offer (Jurevicius, 2013).

Recommendations for Improvement

For FedEx’s mission statement to have been complete and generated a grounded

meaning, they should address more stakeholders in it and add some additional information

about what markets it serves, if it uses the newest technology and how socially and

environmentally responsible the company is being run (Jurevicius, 2013).

References

Berger, A. (2010). Strategic Management. In A. Berger, Case study- FedEx Corporation (p.

24).

Essays, U. (2018, November). Description about FedEx Corporation Commerce Essay.

Retrieved August 21, 2019, from UkEssays:

https://www.ukessays.com/essays/commerce/description-about-fedex-corporation-

commerce-essay.php

Essays, U. (2018, November). The Most Important Hrm Activities Fedec Commerce Essay.

Retrieved August 21, 2019, from UKEssays:

kessays.com/essays/commerce/description-about-fedex-corporation-commerce-

essay.php

FedEx Marketing Mix (4ps) Strategy. (n.d.). Retrieved August 21, 2019, from

Mbasktool.com: https://www.mbaskool.com/marketing-mix/services/16788-

fedex.html

Investor Relations. (n.d.). Retrieved August 21, 2019, from FedEx:

http://investors.fedex.com/company-overview/mission-and-goals/default.aspx

Jurevicius, O. (2013, September 14). Mission Statement Of Fedex. Retrieved August 21,

2019, from StrategicManagementInsite.com:

https://www.strategicmanagementinsight.com/mission-statements/fedex-mission-

statement.html
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Jurevicius, O. (2013, September 14). Mission Statement Of FedEx. Retrieved August 21,

2019, from Srtategicmanagementinsite.com:

https://www.strategicmanagementinsight.com/mission-statements/fedex-mission-

statement.html

Lee, C. (2019, April 24). Human Resource Management Plan Essay. Retrieved August 21,

2019, from Ivypanda.com: https://ivypanda.com/essays/human-resource-

management-plan-essay/

Sharma, A. (n.d.). Human Resource Planning and Management- FedEx. Retrieved August

21, 2019, from Brainmass.com: https://brainmass.com/business/human-resource-

outsourcing/human-resource-planning-and-management-fedex-517301