How The Federal Express Corporation Maintains Its Successful Reign 1

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Running Head: How The Federal Express Corporation Maintains its Successful Reign 1 How the Federal Express Corporation Maintains Its Successful Reign Patten University 07/17/2015 How The Federal Express Corporation Maintains its Successful Reign 2 It was in 1965 that Fredrick W. Smith, an undergraduate at Yale University conceived the idea of a system that would transport time sensitive shipments at a faster rate. At the time most deliveries were distributed by passenger occupied itineraries that took several days to arrive at their destination. Later in 1971, Smith acquired a majority interest in Arkansas Aviation Sales. It was here that Smith realized how challenging it was to make deliveries in a one - two day time frame. In his…show more content…
How The Federal Express Corporation Maintains its Successful Reign 3 The overall organizational structure of the FedEx Corporation consists of six independent business units: FedEx Express, FedEx Ground, FedEx Freight, FedEx Custom Critical, FedEx Trade Networks, and FedEx Services, each of these businesses work in different sectors. “Although FedEx Corporation is the parent company of the six independent business units, it still offers strategic leadership at corporate level and they operate on their own and therefore are solely responsible for their decisions and ultimate success.” According to Boundless Management, the FedEx organization operates as a functional structure. “A functional organization is a common type of organizational structure in which the organization is divided into smaller groups based on specialized functional areas, such as IT, finance, or marketing.” Since the above chart displays teams in different parts of the organization, it is clear that FedEx also operates under functional departmentalization. Overall, FedEx puts more emphasis on its greatest asset, its personnel. By creating incentives like career advancement and ongoing career development helps to retain employees and encourages them to attain personal and team goals. It was Fredrick W. Smith, the CEO and founder of the organization whom insisted that employees should be an integral part of
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