Planning for Holiday Shipment at FedEx - Free Essay in Strategic Management

Strategic management entails accomplishment of set organizational goals whereby, the managers make informed decisions and undertake actions that will assure company's effective performance in the long run. All this is done while taking into consideration the mission statement of the corporation. According to Robbins et al (2014), it is essential for firms to design a business model. The volume of packages shipped at FedEx rose due to increased demand during the holiday resulting from a shift in market dynamics brought about by rapid developments of e-commerce. Furthermore, there was a notable change in vacation promotions and purchase trends as evidenced in the huge need for delivery of packages on Mondays. The rise in number of retail locations acting as fulfillment stations for e-commerce orders also contributed to this dynamic shift of direction. For this reason, the management was required to undertake some strategic measures in response to the unexpected situation as explained in this essay.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Order now

Identifying the mission, goals and strategies of an organization is cardinal to strategic management of an organization. For FedEx, its mission focuses on recording high financial returns while providing quality service delivery to clients. Additionally, maintaining healthy relationships between suppliers, workforce and all stakeholders is at the core of its service. All its operations are done in accordance to set code of ethics and safety is observed. In an effort to increase total output during the peak season, the company established automated facilities that had a projected capital expenditure of $1.5 billion.

Conducting an external analysis is vital in determining the prevailing conditions in the surrounding and their effect on the business activities of an organization (Robbins and Coulter, 2017). Some of the aspects taken into account include legislation, competition, availability of labor among others. In preparation for the sales influx, FedEx increased the number of workers by more than 50,000 posts. The opportunities arising out of this are employment and high profits. However, major threat is lack of customer satisfaction due to delayed delivery of packages.

An internal analysis helps in outlining the core competencies of an institution with intent of gauging its capabilities and resources available to support its current operations. These aspects coupled with competencies of its workforce boost its competitive advantage globally (Robbins and Coulter, 2017). Main strength of FedEx during holiday was addition of aircraft equipped with Enhanced Vision Systems that aid landing in minimal visibility to curb delays that would arise from weather changes. On the other hand, failure of FedEx express and FedEx ground not delivering on Christmas eve and Christmas day as well as closing its locations on the same days inconvenienced most people, hence its weakness.

Formulation of competitive, corporate and functional strategies depends wholly on the SWOT analysis generated by manager. For example, FedEx fulfillment solution gives small and medium businesses an opportunity to enjoy a logistics network whereby they attain beneficial and scalable development. Effective implementation of these designs requires right competency, teamwork, hiring new and qualified workforce and ensuring availability of other fundamental resources in the attainment of organizational goals. Results obtained require evaluation in order to determine effectiveness of mechanisms employed.

Conclusion

Managers play a significant role in strategic management because it enhances the performance of their organizations. The two have a positive correlation. Secondly, managers formulate flexible goals due to uncertain environments which is crucial in strategic management. Most businesses face unexpected conditions due to changing environment. Furthermore, these leaders play a key role in coordinating activities of each department in their firm and channel them towards achieving set goals. This results from diversity and complexity of corporations.

References

Robbins, S., & Coulter, M. (2017). Management, Global Edition. Harlow, United Kingdom: Pearson Education Limited.

Robbins, S., Bergman, R., & Stagg, I. (2014). Management eBook. Pearson Australia Pty Ltd.