Business Strategy and Strategic Management Process of FedEx Corporation

1. Discuss business strategy and the strategic management process.
2. Differentiate between the vision and mission statements and how to create them.
3. Identify a company’s objectives and discuss how they contribute to a company’s strategy.
4. Learn the three tests of a winning strategy.
5. Identify the model used by a business.

1. Introduction

In this paper, a strategic analysis of FedEx Corporation has been performed to evaluate the efficiency of its business strategies and determined vision and mission statements. This paper has been covered the business model, vision, mission statement, and objective evidence prepared on the basis of three tests of a winning strategy. All these information will help the target audience in getting significant knowledge about FedEx working structure and its behavior towards its target market.

2. FedEx Corporation

FedEx is considered as an international organization that offers services to businesses and consumers worldwide. The company headquarter is situated in Memphis, Tennessee. It is a parent organization that offers logistical and strategic support to a large range of operation divisions ("Company FedEx |," 2017). Nowadays, it is known as the FedEx Express. Furthermore, it can be said that the company is operating more than 14 small planes and offered its services to 25 U.S cities with the delivery of 186 packages. It has obtained its competitive advantage within the logistics industry of U.S due to its concentrated business structure and well- maintained customer experiences. 

3. Business Model of FedEx Corporation

The FedEx Corporation has divided its business model into five different segments. These five different segments are known as FedEx Express, TNT Express, FedEx Ground, FedEx Freight, and FedEx Services. All of these business segments contributed towards the accomplishment of the organizational objectives in a significant manner.  

3.1 FedEx Express

This business segment is engaged in offering the international time-definite delivery services, technology, and supply chain solutions to target operating units.

3.2 TNT Express

It is the combination of activities like transportation, freight transportation services, business to business customers, and small package ground delivery ("About FedEx | About FedEx," 2016).

3.3 FedEx Ground

It manages the operations and activities like offer small package ground delivery services to residential customers and business houses across the Canada and US.

3.4 FedEx Freight

It is engaged in offering the freight services across all lengths of a haul to customers across the Rico, US, Canada, and the Virgin Islands.

3.5 FedEx Services

This business segment of FedEx Corporation is responsible for the management of sale, marketing, communications, back-office, and technology functions that support the operations of the other FedEx organizations. The below-mentioned figure is defining the effective business model of FedEx Corporation ("CSR Policy Statements - About FedEx", 2018). This figure has completely explained the working structure and behavior of each business segment and how they are aligned with the ultimate objectives of the organization.

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4. Vision and Mission Statement

The mission and vision statement determined by its stakeholders serves as a guidebook for its success. It is because both statements lead the company in a right direction. Apart from this, they also helped the company in utilizing the available resources and avoid unnecessary mistakes to gain a strategic competitive advantage over competitors. The below-mentioned is vision and mission statement of organization that make it different from its competitors:

4.1 Mission

The mission of the FedEx Corporation is to offer a wide variety of supply chain solutions and package delivery functions, with a view to offer reliable and effective logistics services to institutional, commercial, industrial, global, and residential customers ("FedEx - FedEx - Mission & Goals," 2016). 

4.2 Vision

The vision of the FedEx Corporation is to make it possible for business houses and individuals to collaborate and connect with each other, no matter where they are in the world. 

5. Objective evidence to support sustainable competitive Advantages

The FedEx Corporation has adopted a large range of strategies to gain sustainable competitive advantages over its competitors. Due to the presence of sustainable competitive strategies, the company able to produce good outcomes with reliable customer services. The following is the objective evidence or strategy that support its sustainable competitive advantage over competitors:

6. Presence of Virtual Information Infrastructure

The foremost and important strategy of the FedEx Corporation is to use the virtual information infrastructure to gain a competitive advantage over existing customers. The use of virtual information infrastructure strategy served as a backbone for the FedEx Corporation which is highly responsible for its access to competitors ("Corporate Strategy of FedEx Corporation," 2015). On the basis of the virtual information infrastructure, the FedEx is engaged in maintaining a healthy relationship with its direct or indirect customers. Apart from this, it can also say that the company uses this corporate strategy to close the gaps between the seller and consumer.

7. The three tests of a Winning Strategy

The winning strategy adopted by the organization is the use of virtual information infrastructure. This strategy is completely compatible to resolve the company problems and bring a sustainable competitive advantage over existing competitors. The efficiency of FedEx Corporation winning strategy can understand with below-mentioned tests:

7.1 The Competitive Advantage Test

It is right to say that the use of virtual information infrastructure brings a sustainable competitive advantage for the FedEx Corporation. It is because the strategy is highly engaged in the development of information technology and system innovations with which the organization can differentiate its functioning from its competitors (Parmenter, 2015). 

7.2 The Goodness of Fit Test

Apart from this, it can also say that the use of virtual information infrastructure strategy is completely suited to the external and internal factors of the organization. It is because this strategy is highly engaged in technological innovations. Therefore, as a member of logistics industry, the technology is a key factor of focus for each company.

7.3 The Performance Test

Moreover, it is right to say that the strategy of virtual information infrastructure is completely engaged in boosting the company performance (Tan, 2016). It does not only enhance the profitability but also strengthens the competitive position and image within the market. This strategy does this through the promotion of direct and indirect relationship with potential customers.
Therefore, on the basis of winning strategy three tests, it can be said that the corporate strategy of FedEx is completely effective and sustainable for competitive advantage. 

8. Conclusion 

After studying all this, it can be concluded that the corporate strategies of FedEx Corporation become the foremost factor of its strength over existing competitors. On the other hand, it can also say that the mission and vision statement of the company is adequate and effective as per its working and define a way of success for its future growth.

9. References

About FedEx | About FedEx. (2016). Retrieved 6 February 2018, from
CSR Policy Statements - About FedEx. (2018). About FedEx. Retrieved 6 February 2018, from
Corporate Strategy of Fedex Corporation. (2015). UKEssays. Retrieved 6 February 2018, from
Company FedEx | (2017). Cleverism. Retrieved 6 February 2018, from
FedEx - FedEx - Mission & Goals. (2016). Retrieved 6 February 2018, from
Parmenter, D. (2015). Key performance indicators: developing, implementing, and using winning KPIs. John Wiley & Sons.
Tan, C., Niculae, V., Danescu-Niculescu-Mizil, C., & Lee, L. (2016, April). Winning arguments: Interaction dynamics and persuasion strategies in good-faith online discussions. In Proceedings of the 25th international conference on world wide web (pp. 613-624). International World Wide Web Conferences Steering Committee.

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