Fedex

1.1 Executive Summary & Introduction

This report will cover how FedEx’s management is affected by the five elements of its general environment and the nature of the competition in the overnight delivery market using the Porter’s Five Competitive Forces. FedEx Corporation is a company, founded by Frederick W. Smith in 1971 which offers shipping and freight deliveries services almost throughout the world which includes North America, South America, Asia, Europe and more. FedEx is based in the United States with headquarters in Memphis, Tennessee. It is made up of FedEx Office, FedEx Express, FedEx Ground, FedEx Freight, FedEx Custom Critical, FedEx Supply Chain, FedEx Trade Networks, and FedEx Services. FedEx makes about five million physical shipments and processes over 100 million electronic transactions for each of its business day.

2.1 External Environment

There are lots of factors that will affect FedEx’s performance. One of it will be the external environment. External environment refers to external forces that will potentially affect organization’s performance. External environment consists of two main layers. They are general environment and task environment. The general environment forms the outer layer of the external environment which will affect FedEx indirectly.

2.2 International Dimension

One of the factors of the general environment is the international dimension. It includes events and opportunities in foreign countries. FedEx is a company that was founded in United States. It expanded its business into many countries in Europe and Asia. It even established a hub in Subic Bay, Philippines, to carry out its hub-and-spoke delivery which helps to increase the speed of delivery to Asian countries. In 1995, the international services were accounted for 12% of the whole business. FedEx is linked over 200 countries and territories worldwide. The countries include Argentina, Brunei, Cambodia, turkey and more.

2.3 Technological Dimension

The...