FedEx and Feedback Loops

Case Study # 116313

Business > Companies

This paper looks at how FedEx uses feedback loops to improve its business model.

1,294 words () | 2 sources | APA | 2009 United States

Paper Summary:

This paper discusses two feedback loops that FedEx pays attention to: the production and business results that come out each month and the international trade indicators. The paper shows how FedEx analyzes the feedback and adjusts their business plan to maximize the company potential over the long-term. The paper posits that organizations that are able to observe the feedback, learn, and adjust will continue to operate successfully.

From the Paper:

"Feedback loops play a crucial role in any company. There are both positive and negative feedback loops which help to determine how a company is going to proceed in the future. A company that studies the feedback loops and organizes a strategy in both the short term and long term will continue to expand and produce profits. FedEx is a great example of a company that listens to the environment and pays attention to the feedback loops in the cargo industry. The first feedback that is important for the company to observe is the production and business results that come out monthly. The second feedback loop that is important to the company is the international trade indicators. These indicators are used by the company for feedback to develop both the long-term strategy the company is going to take and the short-term tactical strategies that help weather any economic storm and capitalize on economic booms."

Sample of Sources Used:

Larsen, K., McInerney, C., Nyquist, C., Santos, A., & Silsbee, D. (1996) Learning Organizations (Part VI: Systems Thinking) Retrieved from http://home.nycap.rr.com/klarsen/learnorg/
FedEx. (2009). FedEx website. Retrieved on July 30, 2009 from www.fedex.com.