FedEx and Administration Issues

Paper Summary:

In this article, the writer notes that FedEx is considered an industry leader in most of its businesses and is one of the most admired U.S. corporations, but points out that the company has seen some challenges in recent years, in particular the rising cost of fuel and the corresponding economic downturn. The writer then discusses the strengths and weaknesses, and opportunities and threats of the FedEx company, focusing on the merger between FedEx and Kinko's. The writer concludes with recommendations and maintains that FedEx needs to market aggressively to get customers on board in order to keep their planes full even if the overnight market enters into a prolonged decline.

Outline:
Introduction
Situation Analysis
Key Issues
Recommendations

From the Paper:

"The other way to deal with rising fuel prices is to aggressively build out the Express business. For one, there is no evidence that this business is on the permanent decline. It is assumed that if the cost of fuel continues to increase there will be difficulties however. Each plane leaves on a set schedule and the way to maximize profits is to make sure those planes are as full as possible. Part of the overnight market is price inelastic - some materials are too time-sensitive to be shipped any other way. FedEx needs to market aggressively to get those customers on board in order to keep their planes full even if the overnight market enters into a prolonged decline."

Sample of Sources Used:

• Deutsch, Claudia. (2007). Paper Jam at FedEx Kinko's. New York Times. Retrieved June 16, 2008 from http://www.nytimes.com/2007/05/05/business/05kinkos.html
• Schlangenstein, Mary. (2008). FedEx to Rename Kinko's, Record $696 Million in Costs. Bloomberg. Retrieved July 3, 2008 from http://www.bloomberg.com/apps/news?sid=akX5meseuru8&pid=20601103
• No author. (2008). FedEx Posts Loss, Gives Low Forecast. Reuters. Retrieved July 3, 2008 from http://www.reuters.com/article/businessNews/idUSWNAS861120080618
• Berman, Jeff. (2008). DHL Express to Stay the Course in US Market. Logistics Management. Retrieved July 3, 2008 from http://www.logisticsmgmt.com/article/CA6530454.html
• Schultz, John D. (2007). LTL Market: Getting the Balance Right. Logistics Management. Retrieved July 3, 2008 from http://www.logisticsmgmt.com/article/CA6451284.html

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