Analyzing FedEx's Internationalization and Management Functions

This report provides a detailed analysis of FedEx's successful internationalization strategy, particularly its expansion in the Asian market. The report addresses key questions, including the reasons behind FedEx's success in Asia, the imitability of its approach by competitors, the strategic decision to move its Asian hub to China, and the application of managerial functions (planning, organizing, and controlling) within FedEx's operations. The analysis incorporates relevant literature to critically evaluate FedEx's strategies, competitive advantages, and the effectiveness of its management practices. The report highlights FedEx's understanding of consumer demands, its ability to establish a strong market presence, and its implementation of IT systems. The report also examines the challenges FedEx faces from competitors like UPS and Amazon, and emphasizes the importance of adaptability in maintaining a profitable position in the industry.

Running head: MANAGEMENT OF ORGANIZATIONS
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Name of the Student
Name of the University
Author Note

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Answer to Question 1
According to Altbach and De Wit (2017), the changes that have taken place in
demands of consumers have been understood effectively by FedEx and has further
formulated strategies which are able to play a major role in fulfil the needs. The company has
developed its reputation by the proper implementation of successful approaches and
strategies in Asia. The company has been able to become a major carrier based service
provider in Asia. The potential which has is developed by the Asian region was thereby
identified effectively by the company. The organization further took a decision to acquire the
company named Tiger International Inc. so that it is able to develop its operations in Asian
market. This decision had proved to be successful and acted as a major turning point for the
company.
As discussed by Bouncken, Schuessler and Kraus (2015), the success which was
gained by FedEx in the industry was mainly based on the control which the company had
developed over the Asian market. The company thereby started expanding its operations by
purchasing its partner company named Tanjin Datian W Group in China. The organization
has thereby gained total control on its operations in Asia. FedEx was successful in offering its
services and reaching the consumers in various smaller cities of the country. Another major
step which was taken by the company was based on the movement of Asian Hub from
Philippines to China. This step proved to be useful for the development of its operations.
As discussed by Cannavale (2017), FedEx had aimed at providing seamless levels of
services to the Asian customers by moving the Asian hub to the country. FedEx had further
rebranded its business operations in 2004 with the aim of increasing the reach of consumers
and the presence of the business in the industry. The effective implementation of various IT
systems has been able to play a key role in providing fierce levels of competition to different
companies which operate in the same industry. The IT based systems which have been
implemented by the company have been able to provide opportunities to FedEx so that the
management is able to communicate with consumers and ensure success as well.
Answer to Question 2
As discussed by Cavusgil and Knight (2015), the proper understanding of the
potential of Asian market is considered to be an important approach that was implemented by
FedEx. The organization has thereby been able to develop its Asian operations with the

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knowledge based on the market. The company has aimed at offering the best services to
customers with the help of movement of the hub closer to areas where services will be
provided. FedEx has developed a wide variety of service which can be offered to the
consumers including, business solutions, e-commerce and transportation. The different
services which are offered to consumers are related to different business operations of the
company which include, FedEx Freight, FedEx Services, FedEx Express, FedEx Ground. The
different business services that are offered by the company to fulfil various needs of
consumers cannot be imitated easily by the competitors.
According to Chiva, Ghauri and Alegre (2014), the key factor which lies behind the
absence of effective competition levels available for FedEx is related to resources and
capabilities gained by them. The organization has thereby developed its position in the
industry before the competitors had been able to start their operations. The operations of
various new organizations within the market has not been able to affect the profitability and
revenue based levels of FedEx. The package and freight sector of Asia is competitive FedEx
has recently starting facing competition from the companies United Parcel Service and
Amazon.
As discussed by Dutot, Bergeron and Raymond (2014), the competitive advantage
that has been gained by the company is based on the entire duration of the operations in
comparison to other companies. The advantage which has been gained by the company over
its competitors has proved to be effective for FedEx so that the revenues and levels of
profitability can be maintained. The solutions which are offered by the company to the
consumers have been expanded so that it is able to maintain the profitable position in the
industry. The approaches and strategies cannot be imitated by the competitors in an effective
manner in order to compete with FedEx. The process which has been implemented by FedEx
in order to form an effective customer base in various areas of its operations has provided
strength to the company. The strength that has been developed by the industry is based on
understanding of the changing needs of consumers. The organization has been quite
successful in the proper development of its position in the industry with the help of its
customer management skills (Hånell and Ghauri 2016).
Answer to Question 3
According to Hong, Wang and Kafouros (2015), the decision related to the closure of
the Asian hub of FedEx in Philippines and further moving the operations to China was based

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on proper development of Asian operations. The company has thereby been successful in
proper development of operations with assistance provided by the resources possessed by
FedEx. The analysis of consumer demands is considered to be an important part of effective
part of the operations. FedEx also decided to increase its fleet in order to reach more number
of consumers within less amount of time. The formation of the hub closer to the operating
areas is considered to be an important part of the steps taken by the company in order to
develop the customer base.
As discussed by Khojastehpour and Johns (2015), FedEx has the aim of creating a
huge customer base and providing them with desired products within lower amounts of time.
The supply and distribution based activities of the organization have affected the revenues
and levels of profitability as well. The development of the Asian hub of the company in
China has played a major role in the reduction of costs. The organization has also been
successful in increasing levels of revenues and profitability. The reduction of the cost levels
has been helpful for the company to provide effective services to the consumers. The
organization has been successful in detecting the growth based opportunities in Asia and
further has used the opportunities in order to develop its position. The different decisions
which have taken by the company based on the expansion of operations in Asia has been
helpful in ensuring the success of FedEx (Knight 2015).
Answer to Question 4
According to Suseno and Pinnington (2017), the management of different functions of
the organization is considered to be a major part of social process which is conducted by
them. The process is thereby based on responsibility which has to be fulfilled by an
organization in order plan the operations in an economic and effective manner. The various
functions that are considered to be basic or fundamental for the organization mainly include,
organizing, planning, controlling and actuating. A new model has also been developed with
respect to different managerial functions of organizations which is based on different steps
including, organizing, planning, staffing and directing.
As discussed by Williams et al. (2014), FedEx has been analysed in the case study
which is related to the ways by which the company has been able to implement the different
managerial functions in an effective manner. The analysis of the managerial functions which
have been fulfilled by the company include, planning, controlling and organizing. The
process of planning has played a major role in the ways by which the company has

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implemented different strategies in order to develop its operations in Asia. Organizing is
considered to be an important function which is based on the development of different
aspects of the company in an effective manner. The aspects of the organization which are
managed with the help of this function are the physical aspects, human resource aspects and
financial aspects.
According to Khojastehpour and Johns (2015), the managerial function based on
organizing is thereby helpful in developing different parts including, identification of various
activities, assigning duties, classification related to grouping of the activities, coordination
based on authority and delegation of authority. Controlling is considered to be a major part of
the managerial functions which are based on the development of standards related to
performance depicted by the employees in order to achieve standards or goals. The case study
based on FedEx is also able to depict different managerial functions that are fulfilled by the
company. The management of the company has gained immense levels of success in
understanding the different growth related opportunities that are offered in Asian market.
According to Hong, Wang and Kafouros (2015), the process of planning is also based
on the different strategies which have been developed and implemented by the company on a
periodic basis. Acquisition of the various organizations has proved to be an important part of
the entire planning process which is conducted by FedEx. The proper development of IT
systems is also considered to be an important part of the planning process.
The managerial function related to organizing has also been depicted in an effective
manner in the case study based on FedEx. International growth of the organization is thereby
facilitated by implementation of appropriate technologies in various organizational functions.
The managers of FedEx have been able to play a major role in the ways by which the
company has organized various functions. The function related to controlling is based on the
proper maintenance of the profitable operations of FedEx (Knight 2015).

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References
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