hi everyone this is our final project for MGMT 7160 Global strategic management and we have chosen FedEx as our company this presentation was created and narrated by Amanda coop lanise Davis Chelsea fairchilds Phoebe Garrett and Bradley gay during our presentation today we will be discussing the following topics introduction history organizational structure product and strategy overview SWOT analysis and financial overview current news and projects performance competitive analysis and summary and recommendations introduction FedEx Corporation is an American multinational conglomerate holding company focused on Transportation e-commerce and business services based in Memphis Tennessee it was the first company to offer an overnight delivery service which we know as Federal Express they also own FedEx Ground FedEx office FedEx supply chain and FedEx Freight FedEx Corporation is a publicly held company with over 550 000 employees providing services to more than 220 countries and territories the mission of FedEx Corporation is to produce Superior Financial returns for its share owners by providing High value-add Logistics transportation and related Business Services through focused operating companies customer requirements will be met in the highest quality manner appropriate to each market segment served FedEx will strive to develop mutually rewarding relationships with its team members partners and suppliers safety will be the first consideration in all operations corporate activities will be conducted to the highest ethical and Professional Standards history this slide displays a long timeline of the historical events that have occurred at FedEx over the years and as you can see there are quite a few so only cover some of the more memorable moments in 1965 Frederick W Smith wrote a term paper at Yale University proposing a revolutionary way to accommodate time-sensitive shipments and received an average grade in 1973 April 17th Federal Express began operations in Memphis Tennessee with 389 team members that night 14 aircrafts delivered 186 packages to 25 U.S cities in 1975 they installed their first Dropbox in 1977 they bought seven Boeing 727s after two years of lobbying led to Congress deregulating Air Cargo 1978 Federal Express listed on the New York Stock Exchange as FDX in 1983 made in America business history as the first company to reach 1 billion in revenues within 10 years of startup without murders or acquisitions 1984 started InterContinental operations with service to Europe and Asia in 1986 introduced super tracker handheld barcode scanner 1988 FedEx started service to Japan 1994 they rebranded as FedEx launched fedex.com the first Transportation website with online package tracking in 1995 FedEx became the only us-based all-cargo carrier with rights to serve China in 1996 they introduced FedEx internet ship now FedEx ship manager enabling customers to process shipments online for the first time in 2005 started the world flights unveiled California's largest corporate solar power installation at their Oakland hub in 2006 launched FedEx cup with the PGA tour in 2009 they introduced since aware providing near real-time visibility and insight into shipment conditions mid-transit in 2010 they announced the first all-electric trucks 2013 they launched FedEx delivery manager in 2017 they opened 100 million dollar international express and cargo Hub in Shanghai China they also delivered thousands of tons of medical supplies food and water to Texas Florida Puerto Rico and other areas hit by natural disasters [Music] in 2021 they unveiled priority Earth their initiative to deliver a more sustainable future with a Glo goal of carbon neutral operations by 2040 and on April 17 2023 FedEx celebrated 50 years of driving history of acquisitions the list of the many Acquisitions FedEx has gone through over the years I will highlight a few of the more important ones in 1989 they acquired tiger International which to help FedEx expand into International their International Air presence in 1998 their purchase of Viking Freight and in 2001 their purchase of American freightways led to their formation of the freight opco in 2004 FedEx acquired Kinkos and rebranded as FedEx Kinkos and then rebranded again in 2008 as FedEx office this increased the retail presence and allowed customers to drop off and retrieve their packages in store in 2004 parcel direct rebranded as FedEx Ground economy then in 2006 ANC Holdings UK rebranded as FedEx UK Watkins Motor Lines in 2007 flying Cargo in Hungaria 2011 they acquired multipack Mexico in 2014 Bongo International rebounded as FedEx cross-bordered North America in 2016 teen Express was acquired by FedEx and had both a positive impacts and negative impacts the positive impact would be an increase in European roadway presence and the negative would be the 2017 Cyber attack which ended up increasing their integration costs in 2017 Northwest research was acquired organizational structure below you will see the 10 Executives that make up FedEx corporate's leadership team Frederick W Smith founder and executive chairman Raj supermanium president CEO and director Mike lens Executive Vice President and CFO Robert B Carter Executive Vice President FedEx Information Services CIO Mark Allen Executive Vice President general counsel secretary Jill Brennan Executive Vice President Chief sales officer free career Executive Vice President Chief customer officer FedEx Corporation SRI Ram Krishna Swami Executive Vice President Chief transformation officer FedEx Corporation Rebecca Young corporate vice president operations science and advanced technology FedEx Corporation Tracy breitman corporate Vice President Chief people officer FedEx Corporation hello my name is Phoebe Garrett and I will be taking you through the strategy and product segments when you think about company such as FedEx the first thing that comes to your mind are the purple tail airplanes in the sky or the large trucks that you see passing you on the highway but FedEx provides services from Air ocean and rail one of the segments FedEx Logistics provides transportation to more freight around the globe offering options of air and ocean cargo transportation and Customs clearance FedEx Services provides a comprehensive marketing strategy technical support as well as billing collection services for customers FedEx freight offers transportation of Commodities over 150 pounds or Cargo in bulk that come by ship this service is offered whether domestic or International by land air or c FedEx ground which is Trucking is a low-cost shipping option that delivers B2B which is business to business and it also delivers b2c which is business to consumer FedEx dataworks allows businesses more visibility into their supply chain business it provides the capabilities to grow with the recent speed of e-commerce foreign analysis for FedEx starting with the company's strengths FedEx has built an extensive Global Transportation Logistics network over its 50-year history as a company FedEx currently provides service to more than 220 countries and territories worldwide comprising more than 99 percent of the world's gross domestic product this well-established infrastructure and widespread reach give it a competitive advantage in the international transportation and Logistics industry FedEx's large Global presence is enforced by a strong brand image built on the tenets of reliability speed Quality Service the name FedEx became synonymous with fast efficient delivery the company officially adopted the name FedEx in 1994 after being previously called Federal Express FedEx offers a broad portfolio of services including express delivery Custom Critical Freight forwarding Supply Chain management capabilities in e-commerce Solutions FedEx is able to utilize this diverse portfolio of Transportation capabilities to cater to various customer needs and adapt to changing Market demands an area of technological innovation FedEx has consistently invested in cutting-edge technology and automation to streamline its operations and improve efficiency Innovations such as route optimization real-time tracking and automated sorting systems enhance their service quality and competitiveness in recent years the company has even partnered with third-party technology companies on joint ventures exploring the feasibility of advancements such as autonomous delivery robots drone deliveries and even autonomous line-haul vehicles with a partnership through Aurora and paccars since 2021 now for the company's weaknesses like all logistics companies heavily rely on Transportation FedEx is vulnerable to Market fluctuations and fuel prices though the company may pass these costs onto the consumers through increased rates and fuel surcharge fees higher fuel costs can still notably impact its operating expenses and profitability the vast scale and complexity of FedEx's operations can also pose challenges in terms of coordination Logistics and infrastructure management maintaining seamless operations across its Global Network requires ongoing Investments and efforts as for the competitive landscape Logistics and transportation is highly competitive mature industry with several major players vying for market share FedEx faces competition from traditional competitors like ups and DHL while merging e-commerce Giants such as Amazon or even expanding their own Logistics capabilities now for the opportunities presented to FedEx by the current Marketplace the continued growth of e-commerce industry presents significant opportunities for FedEx as online shopping becomes more prevalent there is a greater demand for Reliable and efficient delivery services which FedEx can capitalize on by expanding its e-commerce Solutions a recent example is the Freight operating company's expansion into residential deliveries of larger heavy and hard to handle shipments through its Freight direct service with the increase in complexity of Global Supply chains companies are seeking partners that can provide end-to-end Supply Chain management Solutions FedEx can leverage its expertise in infrastructure to offer comprehensive supply chain optimization Services through its FedEx supply chain operating segment service offerings under this business segment include warehousing inventory management and reverse Logistics as for sustainable practices there is a growing emphasis on sustainability environmentally friendly practices in the logistics industry from investors regulators and the larger Global community the external pressure provides additional incentives for the companies like FedEx to invest in Greener Technologies such as electric vehicles and alternative fuels in order to reduce its carbon footprint for the company's website FedEx has launched its priority Earth initiative with the ultimate goal to achieve carbon neutral operations by 2040. now for the threats FedEx faces in its industry changes in regulations related to trade Customs or security can impact FedEx's operations requiring the company to adapt and comply with new rules compliance costs and potential disruptions in global trade could pose challenges recent examples per the company's regulatory news site includes expansions of EU bans of products originating from Russia and the 2022 implementation of the uyghur forced labor prevention act in the U.S which prohibits entry of goods produced in the xinjiang weaker autonomous region of China FedEx operates in numerous countries exposing it to geopolitical risks such as trade disputes political instability or International conflicts these factors can disrupt Supply chains impact cross-border operations and increase costs while technological advancements for example autonomous vehicles drones artificial intelligence blockchain present opportunities for the transportation and Logistics industry they also have potential to disrupt traditional Logistics models and may change the ways in which established players in the industry must compete it is important for companies like FedEx to stay agile and continuously invest in Innovation to remain competitive in the ever-changing marketplace will now turn our attention to FedEx's Current financial position for the most recent quarterly results for Q4 FY 23 revenue is down approximately 3.36 billion dollars year over year though the company did see a year-over-year increase in net income of approximately 146 million overall revenues are still above pre-pandemic levels but appear to be tapering off from the pandemic era highs that were fueled by increased demand and residential e-commerce deliveries also while FY 23 results reflect a downward Trend in operating margins of 5.45 percent down from a 6.68 percent and FY 22 and 6.98 and fy21 a 2022 capital.com article has decided that activist investor D.E Shaw which owns a significant stake in the company would like to see adjusted operating margins improve to a range of between 20 to 22 percent by the end of fy25 FedEx's year-over-year earnings per share are up to 15.48 from FY 22s 14.33 but as alluded to earlier still down from the highs of the pandemic era seen at the end of FY 21. these downward Trends can also be seen in the return on Equity return on assets and profit margins since FY 21. market capitalization estimates for FedEx stock has also consistently trended downward from its FY 21 highs though the company Book value has turned it upwards from approximately 24.2 billion in fy21 to the current value of approximately 26.1 billion at the end of FY 23. while this may be partially driven by the stock repurchase program initiated in December 2022 or approximately 16.6 million shares have been purchased back by the company since the end of FY 21 it also reflects a decrease in the Market's estimate for the value of FedEx's intellectual Capital valued at approximately 30.5 billion dollars after the Q4 FY 23 earnings release hello my name is Phoebe Garrett and I'll be presenting current news and projects FedEx reached a milestone by celebrate celebrating 50 years of service on April 17 2023. FedEx celebrated this momentous occasion by giving back to the communities for which they have served for over 50 years hosted various events such as Meals on Wheels mifa and cleaning up parks these events were done across the global Network FedEx also announced they will consolidate its operating companies into one organization this will create efficiencies throughout the company and build a stronger Enterprise FedEx expects the drive to generate 4 billion of permanent cost reductions by the year fiscal year 2025. FedEx Alpha airline pilot Association are in contract negotiations if a deal is met contracts will go into effect August 2023 and would not be amendable until 2028. to increase performance FedEx can consider implementing multiple different strategies first it is important to improve efficiency and reduce cost FedEx can focus on this by streamlining its operations this can be achieved through process optimization Automation and the adoption of Advanced Technologies by leveraging data analytics and artificial intelligence FedEx can optimize its Logistics Network routing and delivery processes leading to a faster and more reliable service next FedEx can enhance technological operations by continued investment which allows FedEx to remain competitive and enhance their performance this will include upgrading I.T systems implementing Advanced tracking and tracking capabilities and utilizing emerging Technologies like blockchain for enhanced supply chain visibility and security next it is important for FedEx to realize that strength and specialized services such as the customer's experience are very crucial to enhancing the overall growth of the company FedEx can invest in customer-centric initiatives such as improving communication channels offering real-time tracking and tracing updates and providing personalized delivery options lastly FedEx can develop sustainable initiatives by focusing on sustainability FedEx can improve its environmental performance and align with customers changing expectations this can involve investing in eco-friendly Transportation options such as electric vehicles or alternative fuel Technologies physics can also Implement recycling programs promote waste reduction and explore packaging innovations that minimize environmental waste we will now look at a brief competitive analysis of the FedEx company it can be said that its main competitors are DHL and UPS when you look at the pricing between these three companies FedEx tends to be faster and cheaper than DHL in the domestic Market however DHL is faster and cheaper internationally UPS is the cheapest option domestically but FedEx is faster than ups and provides time sensitive guarantees that UPS does not when focusing on the geographical location FedEx has a strong presence in the United States Europe and Asia DHL is the leader in Europe and has a strong presence in Asia as well UPS is the leader in the North American Market with FedEx having the world's largest Cargo Airline and ups having more trucks in the areas that FedEx continues to excel is its brand recognition it's customer loyalty it's scale and size its continued Global reach as mentioned earlier with a strong presence in Europe Asia and United States its variety of easily accessible shipping options its culture of innovation and investment in new products such as the FedEx same-day bot which is an autonomous robot designed for local same-day deliveries and it's working in partnership with Microsoft to develop the FedEx surround which helps businesses use real-time data analytics to improve Supply chains another way that FedEx has value add is with its Acquisitions to expand business recently it acquired the North West research Group which focuses on inventory research as well as P2P mailing a European e-commerce Shipping Company another strength of FedEx is its Collective competition with other businesses an example of this is its partnership with neuro and autonomous vehicle company where they tested self-driving delivery vehicles so as FedEx continues to look forward and maintain a competitive Advantage it should focus on its continued investment in AI Technologies and drones it's opportunity for growth in the e-commerce Market especially with Amazon becoming a significant competitor in this space and its place was within the growing Last Mile Market in summary from its Inception in 1965 to today FedEx has grown to be one of the leaders in transportation e-commerce and business services its current business segments include FedEx Express Federal Corporation FedEx Logistics FedEx freight FedEx Services FedEx Express FedEx dataworks in FedEx ground some of its strengths include a strong Global presence brand reputation a diverse service portfolio and its Innovation and Technology opportunities are the growing e-commerce Market supply chain optimization and sustainable practices while Revenue has been down year over year FedEx did see a year-over-year increase in its net income with DHL and UPS's key competitors each company seems to have some advantages over the others however FedEx Remains the fastest service in the domestic Market while considering FedEx's history organizational structure product strategy strengths weaknesses opportunities threats financial analysis current news projects performance and competitive analysis we have identified a few recommendations FedEx can optimize cargo operations for efficiency utilize more efficient air fright Logistics prioritize customer solutions for customer loyalty increase workplace culture for employee well-being and lastly enlarged Global presence for increased Market opportunities focusing on these recommendations will allow FedEx for Keen in on the areas of the most Improvement in which could make the company even greater