Fedex Express : A Cargo Airline

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FedEx Express is a cargo airline that was founded in 1971 by Frederick Smith in Memphis Tennessee. The company is managed under the umbrella of FedEx Corporation, and it is one of the largest express companies in the world. Due to its rapid growth, FedEx Express has gone through several acquisitions and mergers with different cargo and logistic companies throughout its history, not only in domestic markets, but also internationally. In 1987, FedEx Express made the acquisition of Island Courier, and later in 1989, acquired Flying Tigers to serve the Caribbean and Latin America becoming South America 's largest air express transportation company. As a result of these acquisitions, the Latin America and Caribbean Division (LAC) was…show more content…
Ducker, chief operating officer and president, International, of Memphis-based FedEx Express. (FedEx Strengthens Position in Brazil with Acquisition of Rapidão Cometa, 2012, second paragraph). Another reason was to complete the company’s strategy for profitable growth in the Latin American and Caribbean region. For many years the company’s strategy was to dominate the major markets of the region, and making this acquision was the final step. Now that they have entered the markets, the company has announced a change in strategy to now integrate and transform the business to the company culture, in addition to an expansion of new products and services, not limited to only transportation but also logistics. Generally, during an acquisition or merger the company can expect to have positive and negative effects. According to Nancy Hubbard, there are two main reasons for companies to fail during an acquision; process or fit issues. Process refers to negotiation issues, lack of planning, lack of communication, insufficient information gathered, implementation issues. Fit refers to size issues, diversification, previous acquisition experience, organizational fit, strategic fit, cultural fit and other demographic factors. (Hubbard, 2001) FedEx Express LAC has undergone several acquisitions during its history and as a result the company and its employees have plenty of experience in this process. However each acquisition is different
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