Essay Financial Analysis for Fedex Corporation

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Financial Analysis for FedEx Corporation

EXECUTIVE SUMMARY

The modern air/ground express industry was pioneered with the founding of Federal Express in 1971; the corporation was created in 1998 as FDX Corporation and became FedEx Corporation in January 2000 (FedEx, 2013).
FedEx provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services, offering integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. FedEx inspires its more than 290,000 employees to remain absolutely, positively focused on safety, the highest ethical and professional standards and the needs of
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RECOMMENDATIONS AND JUSTIFICATIONS

RECOMMENDATION#1: Should the firm increase their capital expenditures to increase competitiveness? This will almost always be true but what segments of the business get the most capital allocated to them and why?
Yes, by increasing competitiveness FedEx would increase revenue and reduce cost through tighter integration and consolidation, improve/increase productivity, and reduce capital expenditures. New capital expenditures would help the company make additional revenue (Collins, 2010).
RECOMMENDATION #2: Should the firm increase growth by acquiring other companies for synergies or grow internally? Do they have the infrastructure to grow internally? If they by a competitor, how will the merger be integrated in regards to culture, overlapping businesses, etc.
FedEx should increase growth internally. FedEx should invest in growth in a number of ways: people/training (customer service), capital (facilities and equipment upgrades), and advertising (product and services). Internal growth will inevitably cost money in the short-term, but the returns on these investments should outweigh the money spent over time. The business size will not necessarily increase because of internal growth, but the quality of the business will. As the US economy recovers in the coming years, consumers and small businesses will once again require more of the services that FedEx
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