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Fedex's Internal and External Environments Essay

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FedEx’s External and Internal Environments FedEx’s external environment both positively and negatively affects the organizations operations. Their external environment consists of government, weather, and the economy. FedEx does not have a very large external environment because their operations are not affect by many outside sources. The government affects FedEx’s operations by providing security regulations. A regulation that affects them is increased security regulations that were just recently enforced by the federal government. These regulations protect FedEx from any external threats that can be within the goods they deliver. This protection can also negatively affect FedEx’s operation by adding additional time to the delivery…show more content…
The internal environment of FedEx consists of customers, distribution and competitors. This environment determines what FedEx does to succeed in their market. FedEx has two major customers who consist of businesses and individual customers. These business customers have accounts with FedEx to arrive at their location to pick up packages daily or weekly. Two-thirds of FedEx’s business comes from these customers so FedEx curves their operations to satisfy this clientele. Since FedEx’s competition is trying to acquire some of this clientele they have begun to operate and market to this clientele more effectively. Individual customers are also in FedEx’s internal environment. These customers represent one-third of their business. With increased competition from competitors FedEx has marketed to this market substantially. They have created boxes that are prepaid for shipment as long as the contents fit into the box. This has effectively increased business amongst individual customers for FedEx. FedEx’s internal environment also consists of their distribution and delivery of packages. This environment contains FedEx’s trucks and planes that it uses to transport their packages for their customers. If their trucks or planes break down FedEx needs to find an alternative or get these vehicle’s fixed immediately. Appropriate maintenance and regulatory inspections are done to these vehicle to keep them up and running for FedEx. FedEx’s internal environment
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