Fedex Company Profile

2085 Words Apr 15th, 2011 9 Pages
BRIEF BACKGROUND[1] Owned by Frederick W. Smith, the company was incorporated in June 1971 and officially began operations on April 17, 1973, with the launch of 14 small aircraft from Memphis International Airport. It soon entered its maturing phase in the first half of the 1980s and grown to become the largest operating company in the FedEx family, handling about 3.2 million packages and documents every business day. During the fiscal year 2006, it netted a revenue of $21.4 billion (includes FedEx Trade Networks) and is currently employing more than 139,000 employees worldwide, serving in more than 220 countries and territories and 375 airports worldwide. David Bronczek is the current President and CEO of the
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In FedEx’s case, they were caught off guard by UPS when the latter usedits internally generated technology skills to offer e-tailers a multitude of shipping options and prices. Although both firms help customer better utilise information to track and ship inventory, UPS is pulling ahead of FedEx (Haddad & Ewing 2000). Rising fuel prices could also severely impact upon the company’s net income.
This aspect of the external environment affects the company in the same way that the legal aspect affects it. Laws and regulations effected within the transportation and logistics industry are dependent on the political environment which formulates such laws and regulations. The contemporary political environment is shown supportive of such technological advances in the industry under discussion to the extent that it has given impetus to the growth that the industry is experiencing now. Governmental policies and laws affect where and how companies may choose to compete, and deregulation and local government changes, such as those in the global transportation industry, affect not only the general competitive environment, but also the strategic decisions made by firms competing
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