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FedEx Strategy for Success

The questions in this exercise are based on FedEx Corporation. To answer the questions you will need to download FedEx's Form 10-K for the fiscal year ended May 31, 2005 at www.sec.gov/edgar/searchedgar/companysearch.html. Once at this website, input CIK code 1048911 and hit enter. In the gray box on the right-hand side of your computer screen define the scope of your search by inputting 10-K and then pressing enter. Select the 10-K with a filing date of July 14, 2005.

1. What is FedEx's strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion?

2. What are FedEx's four main business segments? Provide two examples of traceable fixed costs for each of FedEx's four business segments. Provide two examples of common costs that are not traceable to the four business segments.

3. Identify one example of a cost center, a profit center, and an investment center for FedEx.

4. Provide three examples of fixed costs that can be traceable or common depending on how FedEx defines its business segments.

Solution Preview

1. What is FedEx's strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion?

FedEx's strategy for success in the market places is based on FedEx brand, and differentiating its service through providing the customers with convenient, seamless access to integrated services. The company relies primarily on operational excellence to achieve success in the market place. The evidence is that the company uses advanced informational systems that connect FedEx companies, so that the customers get the full range of FedEx services. The other evidence is that the company is using a strategy of integration from multiple operating units. ...

Solution Summary

This explanation provides you a paragraph's answer to each question for a total of 465 words with one reference.

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