FedEx Corporation – Essay Example

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Innovation FedEx has adopted innovation in all facets of its business. The company uses innovative techniques and processes to make life easier for its customers (Evans, 2002). The company has also improved its business operations to discharge its corporate social responsibilities. Adoption of innovation as a business practice has enabled FedEx save millions of dollars and become more competitive (FedEx, 2014). The Fortune magazine has rated FedEx as one of the 10 most admired companies in the world which is a clear indicator of the success that FedEx has achieved. Value Chain and VRIO Framework Value Chain Michael Porter put forth the value chain analysis wherein he stated that a firm has four support activities and five primary activities.

The four support activities namely firm infrastructure, human resource management, technology development and procurement with respect to FedEx are discussed below. Firm infrastructure FedEx has a robust infrastructure in place which ensures the smooth functioning of its day-to- day business. The behemoth has 1,200 stations and 10 air express hubs for its Express services. The company has 33 ground hubs and more than 500 pickup and delivery terminals.

Its operating facilities include close to 370 service centers and more than 1,800 offices. FedEx’s air operations are performed through a fleet of 649 aircraft, while express, ground, freight and expedited delivery service are carried out by 1,00,000 motorized vehicles. FedEx also has 6,300 authorized ShipCenters and 37,000 drop boxes that add to customer convenience. Human Resource Development FedEx was founded on a ‘people-first’ philosophy. The company takes utmost care of its team members. FedEx encourages its members to contribute and grow. The company has embraced diversity in its human resource management practices.

Two-fifth of FedEx’s U. S. workforce is minorities. 27 percent of its management team is also minorities. FedEx continuously tries to improve its safe work practices. Safety and health principles are incorporated into all aspects of FedEx’s business. The company has developed numerous recognition programs for celebrating employee achievements.  FedEx has been listed in the Fortune “100 Best Companies to Work For" list ten times in the past eleven years. Technology FedEx has been at the forefront when it comes to embracing technology. The company has used state-of –the-art technology in all facets of business to deliver value added services to customers.


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