Poject on FEDEX MANAGEMENT ...

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Executive Summary____________________________________________

Management
FedEx does not necessarily state all its policies, but they can be inferred through their actions; their policies clearly include being bold and aggressive, based off of intelligently collected information. There is also a strong emphasis on ethical policies. Their mission statement calls for high ethics, high quality services, and mutual reward for all stakeholders. This mission leads to a company culture of high ethics, pride in the company, and a need to give back to the community. FedEx does these in terms of environmental and social responsibilities.

Planning
The legal structure of FedEx is the C-class Corporation. There is a history of long and short term goals that have been completed successfully, and many more in the process of completion now. The market is generally business people who need fast, reliant transfers around the globe. However, the size and number of divisions of FedEx means that the market and marketing strategies can greatly vary. FedEx is very focus on growing and constantly improving their speed of service, demonstrated through their history of being first to try new technologies. Their services range from information systems, to delivery, to custom printing.

Organizing
The organizational structure of FedEx is divided first by the division (E.g. services offered) and then by each region, as most of FedEx’s operations are global. Their structure is very complicated, yet very well planned out. This must be the case for so many divisions, in so many places, to work together so efficiently. Their strong organizational skills are definitely a reason for their great success. Likewise, FedEx is on top of human resource management, with strong orientation & training practices. Their policies focus on the needs of their employees, and they strongly support—through words and action—workplace diversity. All of this shines through in terms of a strong, growing financial position.
 
Leading & Influencing
The use of groups is strongly utilized in FedEx, with member of a group ranging in job hierarchy as well as expertise. Top managers typically set the long-term company goals, however, if there is an unsatisfied customer, they will find the time to address that customer themselves. While the teams come to conclusions, it is ultimately the higher management who makes the final decisions. In this way, the process of decision making could be called authoritative, though the manager still takes the group’s conclusions into consideration.

Controlling
The three processes of controlling—measuring, comparing, correcting—are utilized well by FedEx. There are systems, largely electronic, in place that tell managers how much the company transfers in a day. FedEx assesses their organizational execution in relation to productivity by package count and revenue yield per package, in relation to on-time service and customer service ratings. The roots of any problems found after an evaluation are then discovered and solved; all this done by a team of specialists. Overall, FedEx’s success can be largely attributed to strong controls, and a constant drive to improve based off the control data collected.
 
History of FedEx_______________________________________________

Federal Express started as a term paper written by Frederick W. Smith on the inadequacy of air shipments and fast package deliveries. He recognized the need for a system to specifically manage air-freight. Such a system began development by Smith in 1971, when he faced great difficulties making quick deliveries in his aviation business.
Shortly thereafter, Federal Express was created and incorporated. Named ‘Federal’ to imply patriotism and the desire to be involved in national growth/activity; named ‘Express’ to recognize the goal of speedy deliveries. The first operations occurred in April 1973, delivering packages all across the United States.
Federal Express “took off” very quickly, being the first company to reach revenues of 1 billion dollars without mergers or take-overs in ten years (1983). Shortly thereafter, Federal Express expanded internationally and within five years was directly serving 21 countries. With the acquisition of Tiger International, it became the largest company in the air/ground express industry.
In 1994 the company was renamed FedEx, which was already the common slang for the company, substituting verbs for quick shipment. In 1998, FedEx acquired Caliber Systems Inc. and became FDX Corporation. Over the next two years they performed various acquisitions of businesses with different, but related services. Once the functions of the different acquired companies were determined and organized, FDX Corp changed its name one last time to FedEx Corporation.
 
In 2000, the world saw the release of FedEx’s new strength. Since, more growth has occurred including the acquisition of Kinko’s Inc. and further division organizing for even greater efficiency. The FedEx Corporate portfolio today includes: FedEx Express, FedEx Ground, FedEx Freight, FedEx Kinko's Office and Print Services, FedEx Custom Critical, FedEx Trade Networks and FedEx Services (Corporate Website, History).
FedEx Corporation started with a college student’s term-paper, moved to a rapidly growing delivery company, and then to one of the top recognized companies around the globe for its reliable shipping and information services.
 
Management__________________________________________________

Identification of Management Issues

Company Policies:
All companies have policies, whether they are written or not, in regard to how the organization is to be run. In an article from Fortune magazine about the success of FedEx, the policy regarding decision making from the management of FedEx is apparent. FedEx is an aggressive competitor that relies on intelligent information and bold moves. FedEx has become the giant it is through innovation and trust in its intelligence. As the first company to offer the service of overnight delivery, FedEx proved itself as a competitor and a first mover. Experts scoffed at FedEx when they bought their own airplanes for delivery and now it appears that in the market’s future, the company not having to pay for cargo space in commercial flights might be the competitive advantage that it needs. The corporate policy of operations at FedEx can be inferred by evaluating the business moves that they have made in the past (Boyle). FedEx is aggressive and bold and relies on its trust in the service that it provides and the information that it receives to make first moves in the market to edge out the competition.
Mission Statement:
FedEx will produce superior financial returns for shareowners by providing high value-added supply chain, transportation, business and related information services through focused operating companies competing collectively, and managed collaboratively, under the respected FedEx brand. Customer requirements will be met in the highest quality manner appropriate to each market segment served. FedEx companies will strive to develop mutually rewarding relationships with its employees, partners and suppliers. Safety will be the first consideration in all operations. All corporate activities will be conducted to the highest ethical and professional standards (Corporate Website, Mission).
 
Company Culture:
With this mission in mind, it is evident that FedEx promotes a company culture that is positive and responsible. The last line of the mission statement says FedEx will conduct its activities to the highest ethical and professional standards. Clearly, having honest and ethical employees, and doing business in a way that is fair toward the customers or shareholders is a major consideration of the corporation. In terms of the actual culture of FedEx, the web site and our contact gives the impression that the culture of the company is consistent with the mission statement.
FedEx is looking for men and women of integrity who take pride in their work and value the ideal of providing high quality services. The fact that FedEx promotes a concern for ethics and social responsibility does not take away from its ability to compete. By staying true to their company policy on overall management, FedEx strives to best its competition aggressively, just not at the expense of today’s communities and resources. Not only are ethics important to the company in terms of behavior of employees but also in the sense of giving something back to the community and environment.
Social Responsibility and Practices:
On their website, FedEx talks about their views of the environment:
FedEx cares about the communities in which we live and work. We are dedicated to effective corporate citizenship, leading the way in charitable giving, corporate governance and a commitment to the environment. (Corporate Website, Socio-Economic Responsibility)
It is easy for corporations to make statements concerning responsibility to the environment that are empty, yet FedEx has a long list of actual things that they take part in that show their environmental and community concern. Though FedEx’s concerns about the environment are numerous, here are a few examples of what they do in order to take care of the earth:
• Using natural resources efficiently by recycling, innovating, and controlling pollution.
• Measuring environmental concerns by establishing employee accountability and also reporting to senior management.
• Having a commitment to emergency preparedness so that the effects of a disaster on the environment will be minimal.
These are just three of the many ways that FedEx promises to make good on their commitment to the environment (Corporate Website, Socio-Economic Responsibility).
There are also many examples demonstrating the commitment FedEx has to helping the community:
• Providing free of charge special hybrid powered delivery trucks to charities during holidays so that they can collect gifts for the needy more easily.
• Working with the Red Cross organization to help provide fast relief to disaster areas in the world.
• Proudly sponsoring SAFE KIDS Walk This Way, a nationwide program that advocates child pedestrian safety.
The effort to give back to the people that made FedEx the successful corporation that it is today does not stop there; there is a much longer list of other ways in which FedEx sacrifices to fulfill its part in society (Corporate Website, Socio-Economic Responsibility).
 
Ethical Behavior Policies:
FedEx’s ethical standards have been made clear in their mission statement. On the website under information provided for shareholders in the company there is a list of thirty-nine different regulations for the board members and stockholders that outline a system that should be free of corruption. Many of the steps on the list deal with issues like conflict of interest and the integrity of the board members. On an employee and operational level, and a top managerial tier, FedEx delivers a commitment to high ethical standards (Corporate Website, Shareholder Guidelines).
Analysis & Recommendations for Management
FedEx appears to be the ideal company from a management perspective. In making bold moves to achieve market dominance and in its commitment to the environment and community, FedEx is the kind of corporation that is fair to its stockholders and employees. In terms of their corporate policy, FedEx has the vision to and the level head to be the threat in their industry. In the business world right now ethical standards can be a rarity; with FedEx’s edge on competitors and its commitment to maintaining ethical business practices, it creates a safe choice for investors.
We would recommend that FedEx remain an innovator in the market. They do not need to settle or become comfortable with their position with the competition. By being bold they have put a lot of pressure on the competition and need not let up. FedEx has very high ethical standards and they need to not compromise them in the future. If they stick with their mission statement and continue to offer a high quality service and product they will continue to be a major corporation in the future.
 
Planning______________________________________________________

Identification of Planning Issues
Company Structure:
FedEx Corporation, which has the “C” Corporation structure, has an unlimited number of shareholders and no limits on types of stock or voting arrangement. The Corporation provides strategic direction and consolidated financial reporting for the operating companies that compete collectively with the previously mentioned Corporation’s divisions, FedEx Express, FedEx Ground, FedEx Freight, FedEx Kinko’s Office and Print Service, FedEx Custom Critical, FedEx Trade Networks and FedEx Services.
Strategic Management:
FedEx Corporation’s recent short term goal for management was to complete the acquisition of Kinko’s, Inc from Clayton, Dubilier & Rice, Inc., which previously owned the majority of Kinko’s outstanding shares (Corporate Website, Annual Report). As the website states, the goals expanded, yet remained focused on Kinko’s after the acquisition. They became:
• Create a network operations center and digitally connected network of 1,200 stores
• Utilize technology as a competitive weapon—both back-end as well as customer-facing systems
• Segment and tailor its services to corporate, mobile professional and retail customers
• Establish a world-class, professional sales force targeting the lucrative commercial print market
• Implement hub-and-spoke stores in local markets to better utilize equipment and capacity
• Broaden product and service offerings to meet the growing needs of its customer base.

(Corporate Website, History)
FedEx’s long term financial goals include increasing cash flow and financial returns by improving operating margin, principally at FedEx Express and through continued growth at FedEx Ground and FedEx Freight segments. These are all corporate goals, and the individual divisions may have many of their own. (Corporate Website, Annual Report)
 
Market & Marketing Strategies:
Since FedEx Corporation is a global company comprised of various divisions which perform a variety of services, each division and region has a different target market and marketing strategy. However, the majority of its target market is the big and small-businesses around the world who are dependant on the reliable, high-speed services of FedEx. Thus, the speed and reliability of their services is what they advertise.
Attitude- Technology & Innovation:
FedEx has a positive attitude towards innovation and technologies, recognizing how critical it is to constantly improve their technologies in order to provide the fastest services in the industry. To aid the access to the convenient service option access for FedEx customers, FedEx launched FedEx.com in 1994. Over the next few years, FedEx demonstrated constant improvement on technologies, always providing better service for its customers.
More than two decades ago, FedEx embraced a wireless technology system to facilitate its customers, couriers, and contract delivery personnel to access the company’s information system at anytime and anywhere. Further, FedEx introduced a wireless handheld computer system called FedEx Powerpad to read 2-D barcodes. This allowed faster uploading of data, better planned routes, and the ability for customer’s to give specific instructions in the code. FedEx also developed a FedEx Institution of Technology with the University of Memphis; the courses were designed to advance world-class interdisciplinary research and introduce a new generation of highly skilled graduates to the workforce (Corporate Website, Technology).
Through its history, FedEx has been the first to offer many services, demonstrating their drive for constant growth and change (innovation). The web-site lists these “firsts”:
• first transportation company dedicated to overnight package delivery
• first to offer next-day delivery by 10:30 a.m.
• first to offer Saturday delivery
• first express company to offer time-definite service for freight
• first in the industry with money-back guarantees and free proof of performance, services that now extend to its worldwide network

(Corporate Website, History)
Products & Services
FedEx provides different services regionally, nationally and internationally. Each service and product lines are under a department division. They are FedEx Express, FedEx Ground, FedEx Freight, FedEx Kinko’s Office and Print Service, FedEx Custom Critical, FedEx Trade Networks and FedEx Services.
FedEx Express is the world largest express transportation company. It has services within the continental United States, to 215 countries worldwide and freight services within the United States and 50 other countries internationally
FedEx Ground provides services in the United States and worldwide. It specializes in cost-effective, small package shipping, offering business-to-business delivery and residential services through FedEx Home Delivery and FedEx SmartPost.
FedEx Freight is the U.S provider of next and second-day regional, less-than-truckload (LTL) freight services. It is comprised of two operating companies, FedEx Freight East and FedEx Freight West.
FedEx Kinko’s and Print Services focuses on the small businesses and residential customers in the United States and large-multinational companies worldwide. It offers access to technology for color printing, finishing and presentation services, internet access, videoconferencing, web-based printing, and document management solutions, etc.
FedEx Custom Critical provides door-to-door service available with same-day or next-day delivery of urgent freight, valuable items or hazardous goods. Finally, FedEx Supply Chain Services provides transportation and logistics management, consulting services and other customized supply chain solutions to improve customer services and minimize costs for customers (Corporate Website, Division Information).
 
Analysis & Recommendations for Planning
FedEx’s strength in its industry and its constant growth seem to be a result of its strong planning. Their goal setting and achieving as well as their strong desire to come up with new ideas, has resulted in FedEx constantly growing and improving their services. With improved services, they can assure their market that they are the fastest and most reliable, thus gaining the trust of businesses world-wide that depend on such benefits, especially as globalization continues. Thus, FedEx has stayed on top of the industry for decades, and will likely continue to do so for years to come.
There is little to be recommended for the planning of corporate FedEx. The success of the company, the fact that FedEx has been ranked in the top ten overall on Fortune’s, “Most Admired Companies” list for the past three years, would not be possible if not for solid planning functions (Boyle). Without them, FedEx could never have grown into the company it is today. Nevertheless, as long as the company does not settle, and continues to plan and change for the future, their success should continue
 
Organization__________________________________________________
Identification of Organizational Issues
Company Structure & Management Type:
Company Structure: There are ten different divisions of the FedEx corporation including; FedEx Corporation, FedEx Express, FedEx Express: International, FedEx Ground, FedEx Freight, FedEx Kinko's, FedEx Custom Critical, FedEx Trade Networks, FedEx Services, FedEx Supply Chain Services. At the top of each division there is a combination of Chief Executive Officer/President/Chairman.
There following is a Executive Vice President, of Market Development and Corporate Communications, who also is the President, Chief Executive Officer of FedEx Services. This job is responsible for all marketing, sales, strategic planning and analysis, and communications activities for FedEx Express and FedEx Ground. Another executive position is Executive Vice President and Chief Financial Officer. This job is responsible for all aspects of FedEx Corporation’s global financial functions, including financial planning, treasury, tax, accounting and controls, internal audit and strategic sourcing.
The next executive position is Executive vice president and Chief Information Officer. This position is responsible for setting the technology direction, including the corporation's key applications and technology infrastructure. FedEx applications, advanced networks and data centers provide around-the-clock, worldwide support for the company's information-intensive transportation and logistics product offerings. The next position is Executive Vice President, General Counsel, and Secretary. This position is responsible for ensuring that FedEx Corporation's global activities are in compliance with international, federal, state and local government regulations.
For FedEx Express there are a whole different set of board members which oversee the operations broadly. The first position for the FedEx Express portion is President, Chief Executive Officer and is responsible for the ultimate direction, leadership and accountability of FedEx Express worldwide operations. Another position is Executive Vice President, Operations & Systems Support, which is responsible for all U.S.-based FedEx Express operations, as well as worldwide air operations.
The next position is President, Chief Executive Officer of FedEx Trade Networks and is responsible for the leadership and strategic direction of FedEx Trade Networks, which offers international shipping assistance to customers of all sizes through its operating subsidiaries. Fourth comes Executive Vice President of International, Express Freight Services, and is responsible for setting strategy and overseeing all business operations for FedEx Express' U.S. export business and Express Freight Services, as well as for its other four international regions, which are Asia-Pacific (APAC); Canada; Europe, Middle East and Africa (EMEA); and Latin America-Caribbean (LAC).
 
Another executive position is the President, Asia Pacific region (APAC), and is responsible for developing and executing all corporate strategies and operations in the Asia Pacific region. Cunningham has been with FedEx since 1982. There are also positions for Canada, Europe, Middle East, Africa, and the Latin American-Caribbean regions. The FedEx Ground has the same executive positions including C.E.O., President, Executive Vice President, etc. The FedEx Freight division has the same executive positions and different regional positions throughout the world. FedEx Kinko’s has management responsible for the strategic direction of Kinko's, guiding product and service vision as well as leading the organization's growth and development in the marketing, business and corporate areas.
The FedEx Corporation is a centralized company where as the higher leveled management has much more responsibility than the lower level employees. The lower level employees are not entrusted with much responsibility because their task is simply to take the package from point a to point b and there is no room for the employees to use the little power they have when on the road or doing whichever job they are assigned. Regional managers are required because of the idiosyncrasies each state has that affect what can be shipped and what kind of taxes might be applied to certain items. The FedEx International division requires different management techniques that will take into account the different cultures around the world.
FedEx's Board of Directors presently has four committees: Audit, Compensation, Information Technology Oversight and Nominating & Governance. The Audit Committee directly oversees FedEx's independent auditors and assists Board oversight of the integrity of FedEx's financial statements. The Compensation Committee evaluates the performance and sets the compensation of the Chairman of the Board, President and Chief Executive Officer and oversees the administration of FedEx's employee-benefit plans. The Information Technology Oversight Committee oversees major information technology related projects and technology architecture decisions and advises FedEx's senior information technology management team. The Nominating & Governance Committee identifies individuals qualified to become directors and oversees FedEx's corporate governance practices (Corporate Website, Board of Directors).
The President of the FedEx Corporation, Frederick W. Smith, is responsible the direction of all the FedEx divisions. Power flows from him down to all the other heads of the different divisions, but ultimately is in his hands. His respected heads of the departments do have much power to themselves to delegate to whom they see fit to handle it, regardless, any decision that will affect FedEx’s image will be run by Mr. Frederick Smith.
With such an emphasis put on customer satisfaction and reliability FedEx needed a way to stay in touch with their customers and see what they needed to improve on. The solution to their query is held in their daily operations review. The daily operations review is a meeting which takes place every day at 5 AM. “The corporation's Global Operations Control and Coordination (GOCC) group chairs the meeting. Fifteen to thirty representatives from key departments - Air Operations, Hub Operations, Customer Service, Computer Systems, Meteorology - stationed around the globe attend or participate by conference call. It never runs longer than 60 to 75 minutes” (Goldberg, 38). This shows the amount of effort FedEx has put into their company to insure that they are always doing things the best way; the amount of organization needed to accomplish this is unbelievable and shows.
 
Human Resource Management

The role that employees play in the success of an organization is very important. This is why many organizations like to use the phrase: “Our people are our most important asset”. Through proper Human Resources Management, many organizations can live up to that phrase.
This is why the Human Resources staff at FedEx maintains a highly motivated, productive, and satisfied work force by providing leading-edge training, technology tracking capabilities, outstanding safety, renowned benefits, and dedicated personnel services.
Human Resource Management success at FedEx can be measured by following

the HRM process, including:

1. Human Resource Planning
2. Recruitment/Decruitment
3. Selection
4. Orientation
5. Training
6. Performance Management
7. Compensation and Benefits
8. Career Development

1) Human Resource Planning

Planning is the process by which managers ensure that they have the right number and kinds of people in the right places, and at the right times, who are capable of effectively and efficiently performing assigned tasks. Through planning, organizations can avoid sudden talent shortages and surpluses. FedEx human resource planning is achieved by assessing current and future needs. By doing so, present positions are fulfilled and a program for future needs can be developed.
2) Recruitment and Decruitment

FedEx offers college recruitments, in which they host and participate in on campus recruiting in various locations throughout the year. FedEx also offers a variety of challenging and rewarding internships to motivated individuals seeking to jump-start their careers (Corporate Website, Recruitment).
FedEx does not believe in firing, instead FedEx will “decruit”, offering the option for employees to leave. This is in contrast to a company simply firing someone, forcing them to leave with some temporary compensation.
 
3) Selection
FedEx employs a wide range of selection devices which include: application forms, written tests, performance simulation tests, interviews background investigations, and physical examinations. This way, FedEx screens job applicants to ensure that the most appropriate candidates are hired.
4) Orientation
FedEx practices organizational orientation, which informs the new employee about the organizations objectives, history, philosophy, procedures and rules.
For instance, FedEx has found that contractors are more successful if they and their drivers visit FedEx Custom Critical headquarters to learn about the company before taking any loads. The program helps to familiarize them with the company’s operations and customer commitment, as well as important safety and regulatory information. As a result, orientation is required for all new contractors (Corporate Website, Orientation).
5) Training
FedEx offers training to all its new employees, yet the training may vary according to the specific job descriptions.
At FedEx Kinko’s, training begins with eight weeks of basic training in a local market FedEx Kinko's Office and Print Center and eight weeks of training at our corporate office in Dallas, TX. Training concludes with six months work experience as an assistant manager in a center. The program's phased approach includes training in center operations, center management responsibilities, formal coaching, mentoring, financial acumen, leadership training and more. All of which are delivered through a variety of means, including instructor-led programs, hands-on experience and web-based courses. The hands-on training allows participants to exercise their skills by actually performing the tasks-from equipment use to leadership components (Corporate Website, Leadership & Development FAQ).
 
6) Performance Management
Performance Management systems establishes the performance standards and evaluating performance in order to arrive at objective human resource decisions as well as to provide documentation to support those decisions. FedEx appraises employee performance annually, by sitting with individual employees and talking to them to see how their year was. In doing so, FedEx engages in 360-degree-feedback method.
7) Compensation and Benefits
Since employee’s skills tend to affect work efficiency and effectiveness, many organizations implement benefits and compensations for their employees. At FedEx, benefits including healthcare, life insurance, disability protection, and savings plans are offered in all levels, from FedEx Corporate to FedEx Ground. How these work vary on different positions, but all the employees can have a peace of mind knowing they are covered by an outstanding benefits program. (Corporate Website, Benefits)
8) Career Development
As one commences their search for a career, one has to look at the future and see the opportunities that await him. This is important since one wants to develop and become somebody for the company.
FedEx offers a wide range of career opportunities within each of the FedEx Corporation Companies. They also offer dynamic work environments, wide range of career options, career advancement opportunities, and challenging opportunities to people looking to join an organization that recognizes and rewards the contributions of its employees. This all results in positions that allow employees to excel, keep them motivated and hard working, and provide them with highly satisfying work (Corporate Website, Careers).
 
Diversity Practices
FedEx takes its diversity practices seriously. The company was built on a philosophy that puts people first and allows diversity to be embraced. FedEx believes that, in order to meet the needs of a diverse customer base, diversity must be reflected in the organization. They recognize that as a global company, diversity is necessarily part of FedEx’s culture. Further, the variety of cultures in the employment ranks enables FedEx to better understand the needs of their employees and customers, and to maintain an inclusive environment.
FedEx realizes that diversity gives unique perspectives on an ever changing marketplace. It is because of the commitment that FedEx has to diversity that FedEx enjoys a leading role as a Neighbor of Choice in the community. As mentioned briefly in the management section, FedEx shares their success and the success of their employees, with the community through thriving volunteer service efforts.
The diversity strategy includes supportive partnerships with many worthwhile organizations, such as:
• American Red Cross
• United Way
• Adopt a School
• Africa in April
• Habitat for Humanity
• Hispanic Business Alliance
• NAACP
• Special Olympics
• Welfare to Work programs

These practices have been so successful, that FedEx has received various awards and

recognitions such as:

• 50 Best Companies in America for Asians, Blacks, & Hispanics.(Fortune Magazine)
• Div. 50 America’s Top Organizations for Multicultural Business Opportunities. (Div.299.com)
• Diversity 100 Recognition Award (Next Step Magazine)

(Corporate Website, Diversity)
 
Financial Information
Financial information plays a very important role in organizing; through this FedEx is able to complete their annual financial report, and determine the operation results for each year.
In millions,except earning per share
Operations Result 2004 2003 Perecnt Change

Revenues $24,710 $22,487 10
Operation Income 1440 1471 -2
Operation margin 5.80% 6.50%
Net income 838 830 1
Dilute Earnings per common share $2.76 $2.74 1
Average common and common equivalent shares 304 303
Capital Expenditures $1,271 $1,511 -16

Financial Position
Total Assets $19,314 $15,385 24
Long-term debt, including current portion 3587 2017 78
Common Stockholders investment 8036 7288 10

The General operations results are determined by aggregating the operation results of the various FedEx divisions. The reportable divisions include FedEx Express, FedEx Ground, FedEx Freight, and FedEx Kinko’s. Each of these divisions gives a table, which compares revenues, operating expenses, operating income and margin.
The overall results of these statements come to show financial strength. For example, the net income has increased despite the drop in capital expenditures; this demonstrates a stronger financial position than last year. Even though liabilities have gone up, it only indicates growth in the company. Further, the ratio of debt to total assets is such that FedEx would have no trouble covering all its liabilities, and has a lot of working capital. (Corporate Website, Annual Report)
 
Analysis & Recommendations for Company Organization
FedEx is very well organized company with many different divisions that all are mapped out to meet the specifications needed to run a successful company. FedEx’s track record speaks for itself. In a time where technology is such a quickly changing commodity, a company which can continue to progress and stay up to date with the changes in technology is a rare sight. FedEx has done just that, without their rigorous organizational structure there is no doubt that the company would never have reached the point where they are now. Their challenge is to maintain this organizational planning as they continue to grow, if it weakens or they can no longer sustain their massive size, there would be severe problems.
In terms of the treatment of employees and the incorporation of diversity practices, FedEx is doing a good job. Their policies are focused on what is best for the employees, and this ends up being what is best for them. The only questionable principle is “recruitment,” because at times certain people do have to be fired; in such cases, it is unclear whether FedEx will fire or recommend for the individual to leave. This aside, however, the company has a solid system of human resource management and a well backed history of diversity practices. This is all reflected in the very positive financial statements, which show both company growth and profit.
 
Leading & Influencing__________________________________________
Identification of Leading & Influencing Issues
Leadership:
Leadership is a very important concept in business; no company can be successful without great leadership. To begin with, leadership is different from management; management mainly refers to authoritative duties placed on managers by obligation. Yet, leadership refers to the ability of influencing others to reach a common goal or decision. The most information found on leadership in FedEx is the fact that team management is often utilized for decision making. However, the role of the FedEx founder, Frederick Smith must be recognized, as he and his top managers all share common visions and goals, with which they shape FedEx.
Decision Making & Team Management:
In FedEx, no matter what level of management is analyzed, leadership is used through Team Management for decision making. Regardless of upper or lower management, teams may consist of several individuals from different levels of authority within the organization. Effort from each individual is always expected, pushed on, and compensated.
Although team management is practiced and encouraged in order to make decisions, top management do have different responsibilities than lower management. In the FedEx organization, senior managers such as Executive Vice Presidents and above, hold a prime concentration on determining the company’s long term goals. Conversely, if need be, when a relationship with a key customer is being threatened by day-to-day decisions, top managers do come forward. In situations such as these, top managers do become a vital part in the short term process.
Finally, although upper management does encourage ideas and feedback from employees—dealt with in a consultative manner—all employees are responsible for abiding by all performance measurements that are agreed upon. By doing this, top management exemplifies their authoritative way of managing their employees.
 
Analysis & Recommendations for Leading & Influencing
All in all, FedEx’s way of executing leadership is up to par. By allowing, supporting, and encouraging their employees’ ideas, they show that they work as a team. They even have different levels of team management when situations call for it. This allows FedEx to have diverse views and approaches on how to keep up with the times. Combining them into new, well-developed ideas allows for the necessary innovation and change, which plays a major role in the continuing success and progress of FedEx.
FedEx also balances this team management very well with the amount of centralized power necessary to organize such a massive company. Otherwise, their reliable and speedy delivery system would not be possible, and the organization would likely have to separate into smaller, independent parts. Concerning leading and influencing, FedEx’s methods prove to be a success since they are continuously growing
 
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