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Fed Ex: Organizational Change Essay

960 words - 4 pages

FedEx: Organizational ChangeFedEx Corporation, one of the world's leading courier and express logistics companies based in Memphis, was founded in 1973 by Fred Smith and started its European operations in 1984. The company operates in 211 countries around the world and is divided into seven business units: FedEx Corporation, FedEx Express, FedEx Ground, FedEx Freight, and FedEx Customs.Express is the reliable express delivery that delivers in 1-2 business days in 211 countries. Ground is what we are the most familiar with, specializing in door to door delivery. The trade network provides global e-customs clearance in brokerage and trade. Chain services provide information sales and marketing for FedEx. There is also Freight and Customs providing the transportation via train and air (FedEx Worldwide).FedEx and Information TechnologyFedEx, an Express and Transport company entered a fierce domestic market that was already dominated by some very well established companies, these being: United Parcels Services and US postal services. Fred Smith believed that applying IT to its business, FedEx was able to leap frog the rest of the industry, by building a bridge between the physical and virtual worlds.Today, approximately 90,000 Federal Express employees, at more than 1,650 sites process 1.5 million shipments daily, all of which must be tracked in a central information system, sorted in a short time at facilities in Memphis, Indianapolis, Newark, Oakland, Los Angeles, Anchorage, and Brussels, and delivered by a highly decentralized distribution network. The firm's air cargo fleet is now the world's largest.In fact, according to the mission statement, they say, "FedEx Corporation will produce superior financial returns for its shareholders by providing high value-added logistics, transportation and related information services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment served, FedEx Corporation will strive to develop mutually rewarding relationships with its employees, partners and suppliers, and Safety is the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards."So far their mission is a recipe for success. FedEx Corporation used e-business and IT to grab a competitive advantage within their market place, thus allowing the company to increase its profits in a matter of a few years, from an $8 Billion operation to an $18 Billion.FedEx and e-commerceWith the introduction of e-commerce and the World Wide Web the whole way of selling goods to customers has changed over the years. Business and companies can now look elsewhere for better buying solutions as they are no longer tied down with one individual supplier. There is now a global marketplace within which they can seek suppliers (or customers). With this information medium customers are empowered to find new suppliers, new products, or...

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