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1. Conduct online research on FedEx, including both company and non-company sources.
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2. In a narrative format, discuss the company from a strategic perspective. Information concerning recent changes in the firm is readily available online and should be accessed. Strategic issues should be discussed in “real time.”
Student Answer: FedEx was founded in 1971 by Fred Smith, previously known as Federal Express, headquartered in Memphis, TN. FedEx, is a multinational …show more content…
courier delivery company and a major player in the package delivery market and a direct competitor to the global leader, United Parcel Service (UPS) (FedEx.com). Over forty years later, the company has the world's largest airline in terms of freight tons flown and the world’s fourth largest in terms of fleet size, with a sales revenue of more than $40 billion (FedEx.com). The company provides transportation, e-commerce, and business services worldwide as well as shipping services for packages and documents, offering next-day and second-day, freight services.The company has managed to maintain the leading position in the courier industry globally. FedEx began as a pioneering venture providing full range transportation, information, and supply chain services consisting of four operating companies, such as FedEx Ground, FedEx Corporation, FedEx Express, and FedEx Freight. Each branch has grown and diversified into a multi-business enterprise, building a presence in ten major areas (Bhardwaj & Momaya, 2006). Competing with the U.S. Post Office and UPS, Federal Express began overnight delivery with a flat fee, who currently has the largest sales of any US air freight company and the world’s largest fleet of aircraft (Martin, 2016). To further compete with UPS and increase their brand, FedEx reorganized Kinkos stores to FedEx offices. The Kinko’s implementation allowed the company to expand its brand into document management and other business services including fax, black, white and color copying, printing, finishing, presentation services, signs and graphics, internet access, video conferencing and various other retail services and products (Farhoomand, Ng, & Conley, 2003). In order for FedEx to remain relevant, they had to and must continue to be innovative, strategic and current with technology abreast the multiple and ongoing changes within the industry.References:FedEx.com. Retrieved November 26, 2017. From: http://about.van.fedex.com/our-story/history-timeline/history/.Martin, M. (2016, September 9). Supply Chain Management Federal Express (FedEx). Retrieved: November 24, 2017. From: https://www.thebalance.com/federal-express-fedex-2221098.Farhoomand, A. F., Ng, P. P., & Conley, W. L. (2003). BUILDING A SUCCESSFUL E - BUSINESS: The FedEx Story. Communications Of The ACM, 46(4), 84-89. doi:10.1145/641205.641210. Bhardwaj, B. R., & Momaya, K. (2006). Role of Organizational Flexibility for Corporate Entrepreneurship: Case Study of FedEx Corporation. Global Journal Of Flexible Systems Management, 7(1/2), 37-44.
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3. What have been the keys to FedEx’s success since its inception?
Identify the industry and primary competitors for Fedex. Using Porter’s strategy typology, define the competitive strategy employed by FedEx. Provide extensive support.
Student Answer: The key’s to FedEx’s success: FedEx has distinguished themselves by giving their customers fast, reliable and quality service. Their goals have always been to serve and satisfy individual customers as well as businesses domestically and internationally. Additionally, FedEx has other areas that have played an integral part in their success, according to FedEx Positive Defiance.Innovation Culture: “People-Service-Profit.” , FedEx’s philosophy is to put people first. They incorporated a culture of creative thinking, empowering employees by including them in the business in the development of ideas, products & services.Commitment to customer service: They value their customers, to show appreciation, they extended drop-off times by three hours to allow customers more time to drop off packages. The company partnered with USPS and added drop off boxes at multiple locations for convenience. For efficiency purposes, they incorporated wireless technology for employees to more easily access company data as well barcode scanners for tracking packages. More importantly, FedEx is known for their incredibly fast service.Social responsibility: Going green, FedEx built the largest solar-powered plant in California, they use alternative energy sources in their vehicles and production buildings.The company has been recognized for their dedication to charity work, recognition for their efforts in minimizing air pollution, and their environmental policy in regards to upholding sustainability and a positive reputation in the industryEmployee recognition: to enhance employee morale and motivation, FedEx has five company-wide recognition programs. Below is a brief explanation of a couple of the reward programs: “The Five Star” - “An award designed for team members who have “enhanced service and profitability” and a strong team environment.”Bravo Zulu, the meaning is an individual award given to employees who go above and beyond their job expectations. “The Purple Promise” is FedEx’s highest individual achievement award who has innovative ideas and seek ways to benefit customers.Philanthropy: FedEx organized a “Trees for Troops” program where they delivered thousands of real Christmas trees to military families. Each Fall, FedEx team members volunteer for “FedEx Cares Week”, which is a week-long venture that benefits the community and United Way as well multiple other service projects that benefit the community.FedEx is a transportation and logistics industry. A few of the major competitors in the industry, are UPS, DHL and USPS. Each competitor has their own brand, customer base, and operations costs. The high cost is associated with entering into the industry. Each company has had successes and failures because of the operational costs as well maintaining innovation with the ongoing changes in the economy. Reference:FedEx Positive Defiance. Retrieved: November 26, 2017. From: https://fedexpositivedeviance2011.wordpress.com/.
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4. Is FedEx positioned effectively in its industry? What specific strategic changes would you recommend for the company?
Student Answer: I feel that FedEx is positioned effectively in its industry, but they could be more innovative in an ever-changing industry by opening new offices and expanding their alliances with regional service providers. I recommend that FedEx incorporate a similar design as Kinkos in distribution centers such as Amazon, Wal-Mart and other major retailers where all of their packages are shipped through FedEx, exclusively. This could potentially eliminate UPS, DHL, and USPS as their shipping preferences. With comparative pricing, this could work. In my opinion and experiences with each brand and research, FedEx is more reliable, have better service and the best customer service. To my knowledge, FedEx currently does not have anything such as this in place, and neither does any of their competitors. This would be a way to grow their brand, potentially lower costs, and increase revenue in the long-term. FedEx will be the leader in all retail express shipping services and expand the market within and outside of the U.S., This implementation could be a global expansion for FedEx put a competitive advantage ahead of the other logistics companies in the industry. By building relationships with retailers such as this will be an investment that will create a great return. I am almost certain that FedEx’s management team would be interested and would take the opportunity into consideration.Reference:FedEx Can Keep Up with the Competition, (2014, March 22). Retrieved: November 27, 2017. From: https://www.gurufocus.com/news/252140/fedex-can-keep-up-with-the-competition
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5. Conduct online research on Dollar Tree, including both company and non-company sources.
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6. In a narrative format, discuss the company from a strategic perspective. Information concerning recent changes in the firm is readily available online and should be accessed. Strategic issues should be discussed in “real time.”
Student Answer: In 1970, Macon Brock, Doug Perry, and K.R. Perry started K&K Toys in Norfolk, Virginia. The toy store grew to over 130 stores on the East Coast which created the foundation to the store we now know as Dollar Tree. K & K toys were sold in 1991 and all assets were applied to the Dollar Tree stores which opened in 1991. The Dollar Tree is headquartered in Chesapeake, Virginia and is known for the store with all items $1.00. By 2008 the brand had expanded and opened more than 3,000 stores gaining popularity which landed their name in 100th spot on the Fortune 500 list. In 2012, Dollar Tree ranked #39 as a Fortune 500 company leading the way in the dollar store sector operating in 48 states across the United States and Canada (Dollar Tree, 2017). Dollar Tree competes in a low-end retail market with other retailers such as Family Dollar, Dollar General, Fred’s and Big Lots, with each having a low turnover as well. Regardless of the low-end retail market, the Dollar Tree brand continued to expand. In 2014, the company announced their intent to purchase multiple Family Dollar stores, according to, The Story of Dollar Tree. The company has now implemented online shopping as an option. Consumers now have the availability and convenience shop online and pickup at the store or home delivery. Dollar Tree is moving forward in the retail industry and remaining innovative with technology even though they are a low-end retailer. Additionally, the company has a great team of buyers with excellent bargaining power, to purchase merchandise at extremely low prices, increase revenue, expand their brand and remain current in a growing and changing market (Parnell, 2017).References:Dollar Tree, Inc. (2017). Parnell, J. A. (2017). Strategic management: Theory and practice (5th ed.). Academic Media Solutions.The Story of Dollar Tree. Retrieved: November 26, 207. From: https://www.dollartree.com/custserv/custserv.jsp?pageName=History&parentName=About.
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7. How would you categorize Dollar Tree along Miles and Snow’s strategy typology? Provide extensive support for your answer.
Assume that Dollar Tree competes in the discount retail industry. Identify the strategic groups that exist and define each in detail.
Student Answer: How would you categorize Dollar Tree along Miles and Snow’s strategy typology?
Provide extensive support for your answer.Miles and Snow’s strategic typology involves four strategic types: defenders, prospectors, analyzers, and reactors. I categorize Dollar Tree’s strategic typology as a prospector. Prospectors are innovative and always seeking growth opportunities, new markets and willing to take risks. Dollar Tree took a major risk when they purchased Family Dollar stores, however, that placed in a more competitive position to combat the Wal-Mart Markets and Dollar General stores as well as the Dollar General Markets, which is their greatest competitors to date. Nevertheless, each of the typologies, defender, prospector, analyzer, and reactor could be a step forward if implemented strategically. The defender typology will focus on improving the efficiency of Dollar Tree’s existing operations. Analyzers keep a watchful eye on their competitors for new ideas and often implement those ideas into their marketing strategy and business development plans. Reactors respond on an as-needed basis, they monitor the situation and respond accordingly.Reference:Gimenez, F. P. (2000). The Benefits of a Coherent Strategy for Innovation and Corporate Change: A Study Applying Miles and Snow’s Model in the Context of Small Firms. Creativity & Innovation Management, 9(4), 235.Assume that Dollar Tree competes in the discount retail industry. Identify the strategic groups that …show more content…
exist and define each in detail.Wal-Mart is the retail giant and most competitive in the industry. They not only have to retail, but they also have a grocery store, pharmacy and automotive center. Customers can shop for household items, groceries, and have their vehicle serviced at one stop. Wal-Mart’s success is contributed to their ability to strategize and fulfill the needs of their customers. The company has remained true to their core purpose “always low prices” and to save customers money, which keeps customers interested and coming back (Efron, 2017).The second largest retailer is Target. Targets strategy is to attract a more upscale customer and young professionals (Trefis Team, 2016). Stores are typically in higher-end areas and more stylish with better quality products (Trefis Team, 2016). They also have a balanced product line in pricing to fulfill the needs of any shopper. Targets style screams high-end in comparison to Wal-Mart from their home accessories to their apparel. Additionally, Target offers online shopping with same day in-store delivery, in many of their products. References:Efron, L. (2017, May 31). Why Wal-Mart Is Winning In A Losing Industry. Retrieved: November 26, 2017. From: https://www.forbes.com/sites/louisefron/2017/05/31/why-wal-mart-is-winning-in-a-losing-industry/#2ffdae7e44d5. Trefis Team, (2016, October 11). Target Looking to Drive Revenue Through Smaller Stores. Retrieved: November 26, 2017. From: https://www.forbes.com/sites/louisefron/2017/05/31/why-wal-mart-is-winning-in-a-losing-industry/#2ffdae7e44d5.
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8. Competition has intensified among discount retailers in recent years. How can Dollar Tree continue to distinguish itself in this industry? What changes in the competitive strategy—if any—would you recommend, and why?
Student Answer: Dollar Tree can continue to distinguish itself in the industry is by implementing a development and strategic management team to incorporate new ideas to set their brand apart from competitors (Parnell, 2017).
Dollar Tree offers flyers in the newspaper on a monthly basis, outside of that, there is minimal to no advertising. No advertisement has been implemented informing customers of online shopping availability. Many retailers use all forms of social media for advertising as well as television. All generations are on social media, many times they can be the first line of advertisement, especially if the company has a small advertising budget.All of the major discount retailers set themselves apart by partnering with a well-known brand. At Wal-Mart, you can find celebrity cookware and bedding, coupled with low prices. Target, you will find celebrity household brands and apparel. K-Mart you will find celebrity bedding such as Martha Stewart. They must set themselves apart even though they are a dollar store. Additionally, Dollar Tree should expand their product line and offer more convenience for their customers. They should incorporate a grocery line in stores close to residential areas. Specifically, poverty-stricken neighborhoods that may not have immediate or easy access to a market. Most important, courteous staff. It is imperative that any organization has helpful and courteous staff. Your staff can make or break your business. Reference:Parnell, J.
A. (2017). Strategic management: Theory and practice (5th ed.). Academic Media Solutions.
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