Free Essay

Fedex Ceo Fred Smith on ... Everything

In: Business and Management

Submitted By mutime
Words 2402
Pages 10
FedEx CEO Fred Smith on ... everything
May 11, 2012: 5:00 AM ET

Smith sounds off on China, the U.S. economy, the value of a good name, and why the government shouldn't pay for a liberal arts education.

By Brian Dumaine, senior editor-at-large

Fred Smith sees fast growth ahead in the developing world.
Fred Smith sees fast growth ahead in the developing world.

FORTUNE -- When Fred Smith founded FedEx in 1971, he had just returned from the Vietnam War, where he had served as a Marine platoon leader and then a pilot, and he was casting around for something to do. As legend has it, a paper he had written at Yale -- he doesn't remember the grade but is pretty sure it wasn't a good one -- laid out the idea for a hub-and-spoke system for delivering time-sensitive items like computer parts. He borrowed money from his sisters, leased some jets, and started his service. Today FedEx (No. 70 on the Fortune 500), with headquarters in Memphis, has 255,000 employees, 688 planes, and more than 90,000 vehicles that operate in some 220 countries and regions. Here's the world according to Fred Smith. Edited excerpts:

Q: In 2000 you started morphing from your traditional air express delivery business into ground and into freight. What was the thinking behind that strategy shift?

A: Well, in 2000 we were probably competing in a $50 billion annual [sales] market space. Today we're directly competing in about a $350 billion to $400 billion marketplace. Going into ground and freight opened up a market for us with the greatest growth potential over a sustained period of time: the developing world. Middle classes are emerging in various countries, including the BRIC nations [Brazil, Russia, India, and China]. And these middle-class populations are all knit together today for the first time in human history with a low-cost, standardized communication system that can intermediate language differences and show every product on the planet in visual format. And that of course is the Internet. Today if you want a component for an automobile -- Volkswagen or Chrysler or whatever -- you can look worldwide. And so that's the biggest opportunity. The growth of world trade and the growth of those emerging economies dwarfs the growth of GDP in the industrial countries.

What's one of your fastest-growing markets?

We are now the biggest international transporter of goods by air in and out of China. We also have established a FedEx-branded domestic parcel service there. We use this business to move our international traffic to and from the major gateways.

In China, do they get the FedEx concept?

Oh, yeah. You bet. One time Jiang Zemin [the former President of China] had our board of directors to his office, and he probably knew more about the company than a lot of them did, to tell you the truth.

I was surprised to learn about another new area of growth for you: a new service called FedEx TechConnect, where you will repair electronic items like the iPad and the Nook. It doesn't sound as if it's a core business to FedEx.

First of all, we're probably one of the biggest repair shops for devices like that in the world for the very simple reason that FedEx (FDX) basically invented the handheld, package-tracking device. Because a lot of that equipment is built into our DNA, we became very good at repairing it. And it was just a natural progression to tell a lot of our big customers that if you want us to also repair these devices, we can do it for you.

FedEx technicians in Memphis now will repair your smartphone or tablet -- for a price.
FedEx technicians in Memphis now will repair your smartphone or tablet -- for a price.

How big an opportunity is it?

It's a $15 billion market, and it's also a very sticky application. In other words, nobody has the assets that we do. We have the retail network. We have thousands of people that stop in millions of locations every day, so if you want to send your electronic device to us to be repaired, we've got the transportation networks to get it to a centralized repair shop. We don't have to have 500 of these less efficient repair shops. So it's a niche market, but it's an important niche -- although I don't think we're going to be here in five years talking about that business overwhelming the transportation business.

I'd like to turn to leadership. You wrote a piece recently about reputational intelligence. Can you explain what that means?

Well, what we call reputational intelligence is particularly important in our organization because at the end of the day we're essentially selling trust. People give us some of the most important things that they own. There's medical equipment that's going to a surgery this morning or a part that's going to determine whether the new 787 flies. So reputation is an integral part of the brand, but it's separate and distinct from the brand.

So how do you manage that?

You have to put your money where your mouth is. There isn't a year that's gone by where we haven't invested an enormous amount into trying to make the service better. There have been some years when we could have taken the approach: "You know what? We're not going to try to make the service better. Let's just dial it back by 2%. Most people won't notice that, and we can put another 2% to the bottom line." We've never done that. But it's also directly related to the culture we've tried to create. Ask any FedEx team member anyplace what the Purple Promise is, and they'll tell you, "I will make every FedEx experience outstanding."

So I noticed in a recent letter to your employees that you talked about a video of a FedEx delivery man tossing a computer screen over a fence at someone's home. It got caught on a security camera, posted on YouTube, and it went crazy viral. Not exactly the Purple Promise.

You know, what got into the mind of that young man I will never know. We went back, and the station he operated in was run by a great manager who communicated constantly about the importance of great service. And there's one thing pretty simple in our business: You don't throw or drop a package. That's pretty basic, right?

And of course what he did just made all of the other 255,000 of us just mad as hell because we work like hell and then there it was. We immediately had the head of our express delivery operations record his own YouTube video in which he said, "Look, this is not what we stand for. We apologize." That went viral too. Our quality-driven management says at its heart that you've got to use failures as an opportunity to improve. So that's why I mentioned it in my letter. It's not to hide it, but to make sure everybody looked at it and learned from it.

You're in a great position to see what's going on in the economy. Do you see U.S. growth slowing?

Yeah, we took our projection down a little bit. Our forecast for calendar 2012 is now 2.1% GDP growth, compared with 1.7% for 2011. I think there are some good things, and I think there are some troubling things. We have the European crisis, and hopefully the financial contagion from that won't spill over into the real economy in the U.S. Europe has definitely slowed down, but it's not the disaster a lot of people think that it is yet. Its economy is just not as robust as those in China and the United States.

Isn't part of the problem with the U.S. economy that it doesn't have the supply chains to compete with Asia?

Over the next decade, we will benefit from a lot of manufacturing activities coming back to North America. It may not be all in the U.S. A lot of it may be in Mexico and Central America, but overall we will see stronger U.S. manufacturing aided by the rapidity with which supply chains can be replenished and orders can be fulfilled. And the reason for that is that the high price of oil is making it substantially more expensive to move things from China to the U.S., whether it's by air or ocean.

If you could wave your magic wand, what would you do to make the U.S. more competitive?

The single biggest thing that the U.S. can do is to change the corporate tax system, because as it exists today, the system favors leveraged finance and financial services over industrial activities.

Such as interest payments being deductible?

Absolutely. And in a capital-intensive business, you add leverage at your peril because when the inevitable downturn comes, we've seen what happens. So how do we get more competitive? First the corporate tax rate should be lowered to make it globally competitive. Just set the maximum rate at 20% or 25% across the board and eliminate all the other foolishness. Next, we should go to a territorial tax system so you don't get penalized for bringing money back into the United States. Put a different way, money that is made in China making baby food for Chinese babies should not be taxed if it's brought back into the United States. We want that money to come back in the United States so we can create jobs here.

More: 10 Fortune 500 military CEOs

And then the third thing, depending on how the numbers come out, is to provide tax incentives for investment. Because the only thing that's correlated 100% with job creation -- and particularly good job creation -- is business investment. We strongly promote a 100% expensing of capital. Now, I don't think you could both lower the corporate tax rate and expense 100% of capital investment, because you'd add too much to the federal deficit. But being able to write off investment is preferable to a lower tax rate and the territorial thing.

But isn't it also a demand problem? U.S. corporations are sitting on a couple trillion dollars in cash, but they're not investing it because there's no demand.

Based on my 40 years in business, I think the economy is driven mostly by entrepreneurs and the development of new products and services, which start to create demand that then creates a virtuous circle. When Steve Jobs invented the iPod and iPhone, that helped drive cloud computing and telecommunications systems, and so all of a sudden how many jobs have been created? The point is that if you talk to the people who are demand-side-oriented, they discount Steve Jobs or other entrepreneurs who create their own demand. The most important thing you can do is to incentivize private investment. And I don't think that Lord Keynes ever advocated taking money from one group of citizens and transferring it to another group of citizens. What he advocated was in periods of low demand that government invest -- build roads, build dams, build ports, and so on.

FedEx is expanding its ground service in Beijing as well as other cities in China.
FedEx is expanding its ground service in Beijing as well as other cities in China.

You're a big advocate of rebuilding. Obama's budget includes billions for infrastructure. What do you think?

The only way to produce well-paying blue-collar jobs is with public investment in infrastructure and education, and private investment in equipment. After going to China -- oh, my God, it's embarrassing to fly into J.F.K. We need to pay to improve our infrastructure. One of the biggest opponents to this are the far right-wing Republicans -- the Tea Party fiscal hawks who are against spending on anything. But infrastructure has a multiplier effect, as long as it's good infrastructure. I mean, not the bridge to nowhere.

You've started to buy electric vehicles. Do you think the government's going to put in the incentives to help electrify the transportation system?

We're not seeing a positive return yet on our electric vehicles, so what we've been trying to do is to advocate policies that push down the cost of batteries by getting them built at scale. We advocated, for example, the reimposition of fuel-efficiency standards. Look, this is a national security and economic security matter, and you've got to look at these batteries as if they're an F-35 or a machine gun. Because what we've got to do is to get out of importing as much petroleum as we do from unstable and unfriendly parts of the world. Part of the problem is a political thing. I've watched this issue be pilloried by the right-wing media as an Obama thing. That's not true at all.

You mentioned earlier that investing in education is another key to creating more American jobs.

I personally think that the federal government -- and you're talking to a liberal arts major here -- should restrict its funding of higher-education grants and loans to science, math, and engineering because that's where most of the value added comes. We put so much emphasis on "college degrees." Well, in Germany students at some point come to a fork in the road, and they either go on to university or they go on to a trade school. Say you're a FedEx airplane mechanic working on one of our Boeing Triple Sevens. That's a $100,000-plus job. You don't have to have a college degree to get that job. You don't have to know Chaucer and The Canterbury Tales. You can go right to West Memphis, Ark., where we have a relationship with the community college, and be trained to be a licensed mechanic. Then you can come to work at FedEx.

So, long term, you're bullish on America.

Sure. But look, the U.S. political system is completely broken, and as a wise man once said, "What can't continue, won't." So we're either going to be stopped by the bond market at some point in time, or we're going to fix Washington. And I think we will be able to do it.

This story is from the May 21, 2012 issue of Fortune.…...

Similar Documents

Premium Essay

Fedex

...Federal Express was founded in 1973 by Frederick W. Smith. He literally invented the concept of overnight delivery, thereby creating a whole new market where previously there was none. Starting off with only fourteen small jets at its disposal, FedEx today has more than 560 aircrafts – making them the largest all-cargo air fleet in the world. The total daily lift capacity of their fleet exceeds 26.5 million pounds. Within 24 hours it travels approximately 500,000 miles. With the 2.5 million miles the FedEx Express couriers log a day; it is equivalent to 100 trips around the earth. A need that already has been identified rarely provides companies with big business opportunities. The greatest opportunities arise when you detect a completely new need that your customers didn’t even recognize themselves until you offered a solution to them. That is the success story of FedEx with its overnight delivery system. The company was named “Federal Express” because of the intended associations with the word “Federal” since it expressed an interest in nationwide economic activity. Another trace to the name is the proposed contract with the Federal Reserve Bank, which the company hoped to attain at that time. Although the proposal was denied, the name “Federal Express” was chosen since Smith believed it was a particularly good one for their purposes. It draws public attention to the business and facilitates name recognition. While the ability to identify an unidentified need provides a......

Words: 1926 - Pages: 8

Premium Essay

Dhl & Fedex

...The corporate strategy of fedex corporation Executive Summary This analysis of the corporate strategy of FedEx Corporation relates to three specific issues in the corporate strategy case. The first issue is a critical analysis of the global express transportation and logistics industry. The second issue discusses about the mergers and acquisitions in transportation and logistics industry. The final issue is a critical review of the performance of FedEx in the events leading to the January 2000 reorganisation. In the first section, the global express transportation and logistics industry is an attractive sector based on the fundamentals of the sector given in the five forces analysis using Porter's framework. There are large barriers to entry, there are minimal substitutes that exist, industry is relatively disciplined, and the power of buyers and suppliers are mixed. FedEx is well placed in the sector given its core competencies and dynamic capabilities relating to its management and the functional areas of marketing, human resources and information technology and systems. In the second section, gives a brief knowledge about the benefits and limitations of merger and acquisition strategies in this industry. This also describes how effective was the 1998 Caliber System acquisition and where did it led the company do in its further years. In the final section, it is noted that FedEx performed poorly within its sector and given its capabilities, the firm was expected to......

Words: 5014 - Pages: 21

Free Essay

Fedex

...FREDERICK W. SMITH August 11, 1944 marks a special day in history, not because a local, tiny hospital recorded another birth at their facility, or that the humble little town in Marks, Mississippi added another “member” to their thriving population of about 1,500; it marks a day when a little boy, born of modest means, would grow and learn how to make an honest dollar and eventually lead the corporate world, through savvy business relationships and exemplary leadership practices, to a place never before thought possible, the place of overnight logistics with next-day, on-time delivery. Frederick Wallace Smith, the son of a successful businessman, grew up in a tiny town in rural Mississippi. His father, James Frederick Smith, owned a chain of restaurants known as Toddle House; he also owned Smith Motor coach Company (renamed the Dixie Greyhound Lines after the Greyhound corporation bought a controlling interest in 1931). Fred Smith’s father died, however, when the boy was only 4 years old, leaving him to be raised by his mother and uncles. –Kouzes and Pousner (Kouzes, 2003) Now, some may say that the longstanding legacy of hard work, honest business practices and sound leadership ethics died with the passing of Smith’s father; I, however, beg to differ. I believe that the young Fred Smith, despite his early age, saw a man of character and a leader in his father who, in his time, helped shaped the face of fine dining and cross-country travel the way we’ve......

Words: 2151 - Pages: 9

Free Essay

Fedex Corporation

...Centennial College School Of Business Assignment # 3 FedEx Corporation MGMT 704 (Sec 101) Management and Leadership FedEx Corporation FedEx Corporation is a global courier service provider company based in Memphis, Tennessee. FedEx offers its businesses and customers operating globally with a wide prospective of transportation services, logistics and supply-chain solutions and e-commerce. FedEx mission statement states that they will strive to gain huge returns for their shareholders by offering exceptional transportation services and other business solutions. They endeavor to develop and maintain a mutually gratifying relationship with their employees, suppliers and customers. FedEx is consistently ranked among the top companies of the world and have a strong foothold in transportation industry. FedEx Corporation is committed to constant improvement to match the predefined standards and regulations in terms of consistency and accuracy of thoughts and analysis. FedEx focuses on creating a prototype organization which is similar to the quality management. They have created a management system under which every employee is tasked with innovation and new challenges at their day-to-day activity. But one team exclusively works on experimenting and developing future game-changing prospects. FedEx have setup their own institute of technology where they take on a detailed research on science, business and transportation industry at University of Memphis. This......

Words: 1300 - Pages: 6

Premium Essay

Fedex Strategy Content Context and Process

...1. INTRODUCTION FedEx Corporation is a leading logistics services company, based in the United States. The previous names were Federal Express, Federal Express Corporation, and FDX Corporation. FedEx was found in 1971 by Frederick W. Smith in Little Rock, Arkansas (http://en.wikipedia.org/wiki/Fedex). The company officially began operations on April 17, 1973, with the launch of 14 small aircraft from Memphis International Airport. On that night, FedEx delivered 186 packages to 25 U.S. cities from Rochester, New York, to Miami, Florida. The FedEx headquarters then move to Memphis, Tennessee, and now the company had employed more than 290,000 workers. FedEx was the pioneer of the express transportation and logistics industry. In fiscal year 1983, Federal Express reported $1 billion in revenues, making American business history as the first company to reach that financial hallmark inside ten years of start-up without mergers or acquisitions (http://about.fedex.designcdt.com/our_company/company_information/fedex_history). 2. DESCRIPTION OF FEDEX’S STRATEGY CONTEXT BETWEEN 1973 - 2000 2.1. THE INDUSTRY CONTEXT “Know the other and know yourself: Triumph without peril. Know nature and know the situation: Triumph completely” (by Sun Tzu). If strategic management is concerned with relating firm to its environment, then it is essential to know this environment well. While the entire outside world was taken into consideration, emphasis was placed on the direct......

Words: 4388 - Pages: 18

Premium Essay

Fedex

...History The modern air and ground express industry was pioneered with the founding of Federal Express in 1971; the corporation was created in 1998 as FDX Corporation and became FedEx Corporation in January 2000. Headquarters Memphis, Tenn. Principal Officers Frederick W. Smith, Chairman, President and CEO Robert B. Carter, Executive Vice President, FedEx Information Services and CIO T. Michael Glenn, Executive Vice President, Market Development and Corporate Communications Alan B. Graf Jr., Executive Vice President and CFO Christine P. Richards, Executive Vice President, General Counsel and Secretary NYSE Listing FDX (since December 1978) FY09 Revenue (Consolidated Information for all FedEx Companies) $35.5 billion Workforce More than 275,000 team members worldwide Average Daily Volume More than 7.5 million shipments for express, ground, freight and expedited delivery services Service Area More than 220 countries and territories, including every address in the United States fedex.com Over 20 million unique visitors monthly; more than 5.5 million package tracking requests daily and 19 million packages shipped via FedEx Ship Manager monthly. Operating Facilities Express: 1,083 stations; 10 air express hubs Ground: 32 ground hubs; over 500 pickup/delivery terminals Freight: Approximately 470 service centers Office: Approximately 2,000 locations ......

Words: 5208 - Pages: 21

Premium Essay

Fedex

...hand he provided whenever I needed it. Mrs. Ellen Tedford, Mr. McMahan’s Assistant, is absolutely the best there is. Thanks Ellen for everything, you’re one of a kind. I would also like to extend a special thank you to Mr. Steve Stapleton for keeping me in touch with the executives and doing his best to get me the face time I needed with them. Kudos to Eric Briggs and Janice Bonat--a staff of two that did the work of 20. Your administrative support and the continuous and timely feeding of current events internal and external to DoD was outstanding. Thanks a bunch! Last, but certainly not least, thanks to all the members of the Strategy Core Team-- Arun, Brave, Erik, Helena, Jim, Karen, Kate, Melissa, Nick, Penny, Jason, Mike, Pat, Rosemary, Roy, Steve Miles, Steve Carkeet, Teresa, and Ting; you guys are truly the best and the brightest. It was a joy to serve with you all. Table of Contents ACKNOWLEDGEMENTS i TABLE OF CONTENTS ii EXECUTIVE SUMMARY…………………………………. iii BACKGROUND…………………………………………….. 1 A Brief History Company Vision OVERVIEW………………………………………………… 5 Federal Express Corporation FedEx Express FedEx Ground FedEx Custom-Critical FedEx Logistics FedEx Trade Networks Operate Independently but Compete Collectively FedEx Strategy Core Team OBSERVATIONS………………………………………..….. 13 What Is Strategic Planning—Really The Strategic Reality for......

Words: 17415 - Pages: 70

Premium Essay

Fedex

...The FedEx Example for Gene One Shomeka Edwards University of Phoenix The FedEx Example for Gene One Frederick W. Smith founded the FedEx Corporation in 1971. FedEx specializes in overnight delivery of high-priority packages and heavy freight (www.fedex.com). By 1980, FedEx was a well-known and growing at 40 percent a year. The core values of the company are important to the leaders, stakeholders, and employees of FedEx. FedEx states, "Our people are the foundation of success and the key to the future." In January 2009, FedEx was once again named to Fortune magazine's list of the "100 best companies to work for" in the United States in 2009 (www.fortunemagazine.com). Fred Smith, CEO of FedEx, is commended for his loyalty to workers and leadership abilities. Even though his pay was docked 20% and executive pay cut 10%, he remained loyal to his employees. He did not cut hourly wages or announce layoffs. Don needs to mimic Fred Smith type of commitment to his leadership team. Fred Smith stated, "You have got to have a viable product or service, a compelling strategy, and an efficient management system. Assuming you have those things, leading a team is the single most important issue in running an organization today." (Business Week Online, 2006). FedEx focuses on managing collectively by working together to sustain loyal relationships with our workforce, customers, and investors. Don and his team are lacking in this area. Their senior management can't......

Words: 420 - Pages: 2

Premium Essay

Fedex Case Study

...Federal Express ​The Federal Express is an express transportation company, created in 1973 by an innovative entrepreneur Frederick W. Smith. During his college years, he saw the idea that the United States was becoming more of a service-oriented economy and that it needed a reliable, overnight delivery service company that would transport packages, documents, medicine, computer parts and electronics. ​Frederick Smith born in Memphis, TN in 1994 perhaps has became one of the most innovative entrepreneurs with his corporation. In 1966 he graduated from Yale University with an economics degree. While pursuing his career, “he authored a paper describing the concept of a freight-only airline that would fly all packages to one central point, where they would then be distributed and flown out again to their respective destination (Hisrich, 2010, pg. 226).” The operations would take place overnight when airports were less crowded, and with the proper logistics, the packages would reach their destination by the next day. The professor did not think the idea was feasible so Smith received a C grade for his paper. Fortunately for Frederick Smith, he didn’t take it to heart and ended up building that company he dreamed of. ​After graduating from Yale, he enrolled in the Marines he served two tours of duty, first as a rifle platoon leader in the U.S. Marines and later as an air controller. His four year term was well spent because it permitted him the opportunity to examine a......

Words: 1969 - Pages: 8

Free Essay

Fedex

...university | Success Story of FedEx | Essay | | | 4/27/2014 | | Success story of FedEx Ordering things online or over the phone is a common procedure today. Companies use different shipping companies to deliver items fast and safe. Postal office is one of the cheapest ways to ship packages and parcels, but with the Postal office you can’t always truck it. The Unites States Postal Services (USPS) not always provide customers with trucking numbers but it usually takes more time for receiver to get it. The company which achieve it success in shipping all kinds of freights, packages and parcels is FedEx. FedEx is known for its great rates, on time delivery and detailed trucking information. Below I would be talking about these great qualities of FedEx and why many businesses use their services. FedEx services are being used because they are so massive that they have made the correct business moves that allow them to give a price that most companies can’t complete with. Another area that companies like is the flexibility in the pricing that is catered to each individual company. What I mean by this is FedEx looks at company shipping history and gives them pricing discounts on the amount of volume a company ships. They also tailor it to which method the company ships more of; weather is overnight air freight or standard four day deliver ground. For example, the company I work for uses FedEx services almost every day. We ship via FedEx all freight payments......

Words: 751 - Pages: 4

Premium Essay

Fedex

...additional information on the company. In 1973, Fred Smith founded Federal Express (FedEx) in Little Rock , Arkansas. In 1973, the operation were relocated to Memphis, Tennessee. According to the FedEx website, on the first night of continuous operation, 389 Federal Express employees and 14 Dassault Falcon jets deliver 186 packages overnight to 25 U.S. cities — and the modern air/ground express industry is born. fedEx is the world’s largest express transportation company, responsible for delivering 3 million packages daily. FedEx provides ecommerce, transportation and business services worldwide. The company offers various shipping services for delivery of documents, freight, and packages. They offer regional next-day and second-day delivery. In 2004, FedEx also acquired Kinkos, which helped to expand the company’s retail access. FedEx Kinko provides a variety of services including copying, printing, signs and graphics, and a host of other services. One critical issue FedEx survived was their slow adaptation to technological changes. Federal Express was founded by Fred Smith in 1973. On April 17, 1973, with the launch of 14 small aircraft from Memphis International Airport Federal Express delivered 186 packages to 25 U.S. Cities. FedEx first seen profit was not until July 1975, becoming the premier carrier of high-priority goods in the marketplace and the standard setter for the industry it established. FedEx Express is the world's largest express......

Words: 764 - Pages: 4

Premium Essay

Fedex

... S. Sreenvas (14PGP119) Ankit Goyal (14PGP070) About FedEx: FedEx Corporation is an American global 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, which was used from 1973 until 2000. FedEx Corporation was founded in 1973 by entrepreneur Fred Smith. Today, with a fully integrated physical and virtual infrastructure, FedEx’s business model supports 24–48 hour delivery to anywhere in the world. FedEx operates one of the world’s busiest data- processing centres, handling over 100 million in-formation requests per day from more than 3,000 databases and more than 500,000 archive files. It operates one of the largest real-time, online client/server networks in the world. The core competencies of FedEx are now in express transportation and in e-solutions. Supply Chain Model: FedEx Supply Chain Process: * Order is sent to FedEx via XML, Internet, customer calls, EDI and is processed by the FedEx Order Management System. * Order information is sent from FedEx Information Network. * Order is transmitted to the appropriate Distribution Center. The order is processed, picked and packed and shipped to the end customer. * The package is picked up by FedEx, scanned, and delivered to the end customer. * The Fedex customer is billed for the order. * If the end customer decides to......

Words: 326 - Pages: 2

Free Essay

Fedex

...Fed Ex Case Brief Ever since its establishment, FedEx has committed itself to total quality service and had consistently been ranked on Fortune magazine’s industry lists, including “Worlds Most Admired Companies”, “100 Best Companies to Work For” among other accolades. FedEx has expanded far beyond what its Founder Frederick W. Smith has started back in 1971 and continued to strengthen its position as the market leader in its industry over the past 40 years. Their astounding achievements can be credited to the beginning high standards set by Fred Smith and these well-defined goals are communicated clearly and timely to the employees through its integrated business units. The standards were then periodically reinforced to ensure that they stay relevant, effective and efficient. Today, the rapid and continuous growth in the increasingly volatile and competitive business environment has inevitably contributed to FedEx’s key issues such as coordination, efficiency, customer expectations and employees’ management. As such, Fred Smith has to set new standards and constantly reinforces them in order to maintain all those achievements that gained the company much success over the years. Firstly, Fred Smith changed the way on how it manages employees in the business units. Instead of a rigid hierarchical organizational structure, he focused on employee empowerment and involvement, and emphasized the team approach to getting work done. Through this implementation, the......

Words: 604 - Pages: 3

Premium Essay

Fedex

...transportation agency, FedEx is known all around the world for its fast and on time delivery. Its slogan, “when it absolutely, positively has to be there overnight” says it all for the company. When one needs to get a package or parcel anywhere FedEx is one of the top choices. The company’s primary competitive advantage is its IT infrastructure. FedEx was the first to introduce a real corporate website where customers could print their unique barcode and have it picked up, track their packages and verify pricing and other helpful information. In this analysis different functions of the company are reviewed, such as different factors affecting the company, the key challenges and the recommendations to the company. FedEx: When it Absolutely, Positively has to be there Overnight About FedEx Headquartered in Memphis, Tennessee FedEx is the world’s express delivery. FedEx offers a variety of international packages and document delivery services to 214 countries, as well as freight services. On February 2004 FedEx acquired Kinko’s Inc. Now together the company provides document solutions and business services including copying, scanning, printing services, graphics, video conferencing, wireless and wired internet. FedEx is best known for its motto “when it absolutely, positively has to get there”. Fred Smith founded FedEx in 1971 and incorporated management philosophy that made FedEx a rapidly shining business in the industry. The principles that Smith integrated have......

Words: 4427 - Pages: 18

Premium Essay

Fedex Comparison

...[pic] Introduction FedEx Corporation (FedEx) is a US based company mainly engaged in offering logistics solutions. The company, through its subsidiaries, provides transportation, e-commerce and business services under the FedEx brand. The major benefit of using the company is its ability to provide “day-certain” service to every business address in the US and Canada, as well as provide “time-certain” delivery to those areas within one to three business days. The company was founded in 1973 by Frederick W. Smith, whose vision was to provide overnight delivery services for his clients. The company is divided into eight major divisions: [pic] The mission of FedEx is to provide superior financial returns for shareowners by providing high value-added supply chain, transportation, business and related information services through focused operating companies. Customer needs will be met in the highest quality manner appropriate to each market segment served. FedEx strives to develop gratifying relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations and all activities will be conducted to the highest ethical and professional standards (FedEx Corporation – Financial and Strategic Analysis Review, 2011). FedEx’s vision is a world where goods and information move quickly and seamlessly. The company’s goal is to connect the world in such a way that consumers will view them as a provider of......

Words: 5118 - Pages: 21