Chat with us, powered by LiveChat You will continue to develop Section IV of the Strategic Audit Report (started last week by adding three more parts to include Operations and Logistics, Human Resource Management (HRM), and | WriteDen

You will continue to develop Section IV of the Strategic Audit Report (started last week by adding three more parts to include Operations and Logistics, Human Resource Management (HRM), and

 You will continue to develop Section IV of the Strategic Audit Report (started last week by adding three more parts to include Operations and Logistics, Human Resource Management (HRM), and Information Technology (IT). The assignment from last week can be found in the attachment section.

It is imperative as a global business leader to understand all concepts and internal working in an organization to be able to make the right decisions for the future. Researching these three sections will enable you to understand further how your company operates from a technical and personal perspective.

Provided are the guidelines to complete each part:

  1. Operations and Logistics

o Provide a one-page detailed report of your strategic audit company's products, services, and manufacturing facilities.

o Do they produce their products internally or have them outsourced?

o If they are service-oriented, how are these services provided and what resources do they use? An example would be a healthcare provider of medical staff who works in a hospital, but the hospital is not owned by your company.

o What is their logistics set up and/or how are their goods and services transported and supplied to the customer?

2.   Human Resource Management (HRM)

o Examine your company's workforce.

o How many employees do they have?

o What benefits do they offer?

o Are they union or non-union?

o What are the working conditions (especially if they have facilities in other countries)?

o Have they been protested by human rights groups for employment practices, or fined by the government?

o What is your strategic audit company's human resource office's overall mission or goals?

3.   Information Technology (IT)

o Explain how your company incorporates Information Technology into its business model.

o Are administrative and customer services automated?

o Are the manufacturing and logistics systems automated?

o What IT trends do they follow and what is the future outlook for your company's IT utilization?

Each part of your assignment should be one page in length.

All pages should be double-spaced, with sources cited and referenced using current APA formatting.

You should have a total of three (3) pages upon completion of all parts. Compile all pages of your document to submit to this assignment. 

The Internal Environment


Student’s name:


Part 1.

In business, "corporate culture" refers to the rules, customs, and beliefs that all employees follow and are taught (Wheelen, Thomas., & Hunger, J. David, 2014). However, in today's world, the CEO, CFO, and other top executives' actions and attitudes have a direct impact on the company's culture. FedEx has a culture that demonstrates to its employees and customers how much they are valued. FedEx prioritizes service, people, honesty, innovation, responsibility, safety, and loyalty (FedEx, 2019). FedEx understands the importance of a positive work environment and a strong corporate culture in order to achieve operational success and provide excellent customer service. As a result, FedEx has implemented a "People-Service-Profit strategy" (P-S-P) and continues to promote a high-performance culture. (FedEx, 2019). Frederick Smith, the company's current CEO and founder, came up with this idea because he believed that investing in employees would result in better work and, as a result, financial success. This philosophy emphasizes the importance of treating employees with respect and dignity, as well as rewarding team members based on how well they perform their duties.

FedEx believes that its employees are the best way to make big decisions, and it attributes its success to its innovative culture. Because service providers' employees are the ones who directly interact with customers, this philosophy is especially important in the service industry. Training, giving employees power, and providing incentives are all critical in a company whose culture is based on this philosophy (Peoplematters, 2019). FedEx Corporation's plan to make more money, in my opinion, is consistent with its core value of putting people first. People who are enthusiastic about their jobs are always more creative and productive. On the review site Glassdoor, current FedEx employees gave CEO Frederick Smith an 84% approval rating, and 73% said they would recommend working there to a friend (Glassdoor, 2019). FedEx is the company most likely to hire these individuals as a result of this. In addition, some FedEx freight drivers chose not to join a union in 2017, indicating a favorable work environment (Dcvelocity, 2017). FedEx Corporation employs approximately 300,000 people in over 250 countries and territories. As a result, there are numerous programs in place to thank employees for their efforts. This demonstrates how much FedEx cares about and values its employees.

There is a list of awards and recognition programs on the main website, including "The Humanitarian Award," "The Five Star," "Bravo Zulu," and "Purple Promise" (FedEx, 2019). A five-star rating is the highest you can achieve at FedEx. The manager gives the staff theater tickets and quick cash bonuses in the form of Bravo Zulu. Pilots, couriers, customer service representatives, and meteorologists are among those who benefit from the "purple promise" (FedEx, 2019). These projects will benefit FedEx Corporation's high-performance culture, and employees will be motivated to work toward the company's goals. FedEx also places a premium on a supplier base and a workforce that reflect and celebrate diversity. FedEx will be better able to adapt to the needs of its diverse customer base. In the United States, 41% of FedEx employees are not white (FedEx, 2019). Asian, African-American, Hispanic, female, transgender, gay, and lesbian people are among those sought after by the company (FedEx, 2019). FedEx's Corporate Diversity Council oversees the company's efforts to make workplaces worldwide more inclusive and diverse (FedEx, 2019). This council's goal is to raise cultural awareness throughout the organization through activities such as multicultural training and diversity events (FedEx, 2019). FedEx Corporation believes that it should gradually alter its operations to meet the needs of the markets it serves. When leaders are committed to and supportive of their employees, it encourages employees to provide excellent customer service, which helps the company meet its objectives and put its plans into action.

Part 2.

Internal Factor Analysis Summary Guidelines









The strong brand image




The FedEx company has earned a trustworthy image by successfully catering to the needs of both individual customers and commercial clients through the provision of dependable services. When it comes to its interactions with customers, FedEx places a strong emphasis on being truthful and forthcoming. Because of this, both employees and customers will develop positive mental images of the company. In order to improve the company's brand image and increase revenue, FedEx uses a model of coordinated interaction that ensures there is strong coordination across all of the company's departments. This, in turn, results in prompt responses to the company's


The focus on sustainability




A commitment to sustainability is indicative of FedEx Corporation's commitment to its corporate responsibility. FedEx's commitment to sustainability is shown in its global citizenship report, which outlines the company's efforts to increase the corporation's long-term value for all stakeholders (FedEx Global Citizenship Report, 2017). Success rates increase for businesses that make sustainability a priority. A 50% reduction in earnings volatility over the past decade was achieved, for instance, by companies that made investments in carbon reductions.


The high performance company culture




FedEx is a great place to work because the culture respects and appreciates everyone involved. FedEx places a premium on service, people, integrity, innovation, responsibility, safety, and loyalty (FedEx, 2019). This is why FedEx has a high performance culture and has embraced the "People-Service-Profit approach (P-S-P)" (FedEx, 2019).


The large logistics network




When measured by the number of employees it has, FedEx ranks as the ninth largest corporation in the world. There are around 425,000 people working for it (FedEx, 2019). Therefore, the organization is able to manage deliveries to over 230 countries via a vast network of warehouses and retail outlets. More than 600 of FedEx's planes are capable of taking the corporation into new international markets. FedEx is able to run efficiently and reliably because of its excellent routes and strategically placed hubs (Supplychain, 2019).


The leader in the overnight delivery market




Overnight shipping was pioneered by FedEx Corporation. So, they've maintained their monopoly on that sector of the market. Many consumers like this feature, and FedEx Corporation's reputation benefits from it (Encyclopedia, 2019)



Overdependence of U.S market




Because of the magnitude of the risk involved, FedEx cannot afford to be overly reliant on a single region's economy, climate, or government. The only solution to this shortcoming is to expand into other markets.


Rising prices




On January 7, 2019, an increase in prices was announced. Therefore, all shipping prices, including FedEx Ground and FedEx freight, were increased by 4.9% and 5.9%, respectively, because of the limited available space. FedEx's shipping costs are somewhat more than those of UPS and DHL, and the company has been increasing their prices on occasion.


Losing market share to competitors




Comparing FedEx and UPS using conventional size statements and financial statistics, we find that FedEx has a lower operating margin. FedEx can put the money to better use in the future, as seen by the current asset ratio and the liquid asset ratio. Comparatively, UPS's net earnings surpass those of FedEx.


Rising operating expenses




FedEx operations cost a total of $60 billion in 2018, $55.28 billion in 2017, and $47.28 billion in 2016, respectively. In 2016, FedEx operations cost $47.28 billion. When compared to 2017, it has increased by 9.58 percent, and when compared to 2016, it has increased by 16.9 percent. To put it another way, FedEx's operational costs have been continuously climbing upwards over the course of the past year.


differentiation and decentralized operations




There are now unprecedented levels of rivalry between shipping and parcel delivery firms. Given the proliferation of competitors, FedEx is having difficulty setting itself apart. There is now less room for individuality as a result. Furthermore, as FedEx's business units are run independently of one another, there is room for misunderstanding.





FedEx has been able to successfully elevate the firm brand image by responding to changes in the external environment and adjusting to the needs of customers all over the world. The FedEx Corporation has built a loyal client base because to its consistent delivery of high-quality services for both consumers and businesses. As a result, FedEx Corporation enjoys a wide variety of advantages within its own walls. Some significant competitive advantage platforms are a high-performance business culture and access to a wide network. However, losing market share to rivals like UPS and Amazon would be disastrous for business. FedEx needs to keep its delivery prices competitive despite the rise in its operational costs. Instead than raising delivery prices, FedEx would be better served by working to set itself apart from the competition. FedEx will be able to set itself apart from the competition thanks in large part to its commitment to sustainability and environmentally friendly services. FedEx also has to recover some of its lost market share by putting plans into action. FedEx should make an effort to increase its share of other commercial markets by utilizing its extensive network, huge aircraft fleet, infrastructure, equipment, etc. FedEx, like many other companies, has relied solely on the US market up until now, thus the company desperately needs to expand internationally. FedEx receives 73% of its overall income in the United States. Because of its reliance on the United States, FedEx has missed out on several overseas prospects (Asia-Pacific market). If FedEx loses a lot of money in the United States, it faces a serious challenge. FedEx might fortify its position in the market by forming strategic alliances with companies that are leaders in information technology, which would lead to the introduction of novel processes and tools.

These internal elements have a significant impact on FedEx's current and future operations. FedEx achieved a weighted score of 3.00, with a score of 3.0 being the industry norm. To put it another way, FedEx has been able to capitalize on its strengths, make adjustments to counteract its deficiencies, and keep an eye on its internal environment so that its score is neither too low nor too high. This research also demonstrates how FedEx, which has a well-respected brand name, has utilized internal shifts to its advantage in the transportation market. Since there is so much misleading data out there, and since some marketing firms have erroneously estimated market share, my data collecting efforts would be hampered.


FedEx Annual Report | Superior Networks. (2018). FedEx Annual Report 2018. Retrieved from utm_source=InvestorRelations&utm_medium=Referral&utm_campaign=Annual Report2018&utm_content=FinancialInformationAnnualReports

Samaha, L. (2017). Better Buy: FedEx Corporation vs. United Parcel Service — The Motley Fool. The Motley Fool. Retrieved 18 April 2019, from

About FedEx – Home. (2019). About FedEx. Retrieved 18 April 2019, from

People Matters – Interstitial Site — People Matters. (2019). People Retrieved 18 April 2019, from federal-express-people-profit-service-557?

College of Business |

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