Key Elements of Performance Management System of FedEx Corporation - Assignment Example

Table of Contents 0Introduction 2 1 Background Information of FedEx Corporation 2 2.0Identification of Strategic Issues 3 2 Strategic Analysis 4 2.1.1 Internal and External Environment Analysis 4 2.1.2 Sources of Competitive Advantage 7 2.1.3 Summary of Analysis 8 2.1.3 Strategic Issues 11 3.0 Strategic Goals 16 4.0Recommendations for Actions to be taken by FedEx 18 5.0Key Elements of Performance Management System 20 6.0Conclusion 22 7.0 References 22 1.0 Introduction Strategic management has become vital for the survival in this new era of information and dynamic business environment. The new business environment has become quite challenging and competitive, where organizations have to develop some strategies to remain in competition. A number of strategic management tools are used for strategic analysis of the internal and external business environment, on the basis of which the strategies are formulated and implemented in response to the situation. A strategy provides a direction to the organization and a roadmap to achieve the corporate objectives (Amason, 2011). The purpose of this report is to conduct a strategic audit of a real-life organization and on the basis of strategic issues being faced by the organization, the goals, actions and key elements of performance management system to develop strategy are discussed in this organizational context. The report has four major sections, wherein the first section, the strategic issues are identified by employing a strategic audit. The strategic analysis is performed with the help of some strategic tools, such as PESTEL Analysis, SWOT Analysis, and Porter’s five forces model. Then to address these issues, the goals are set in the context of the organization in the second section. Thirdly, the actions are recommended which the organization should take. A strategy statement is also summarized in this regard. In the last section, the key elements of the performance management system are elaborated, which are important to develop the strategy for the organization. 1.1 Background Information of FedEx Corporation To address the purpose of the report, FedEx Corporation is selected. The FedEx Corporation was originated in 1971 by Frederick Smith, where its previous name was Federal Express, centered in Little Rock, Arkansas, and headquartered in Memphis, Tenn. The founder’s business visions have been esteemed all over the years, who always concentrated on providing superior customer services than rivals. During the start of the company, after fronting a number of funding problems, the company struggled and strived for its survival. The company entered into the initial public offerings in 1998, and its renowned itself as the name of FedEx Corporation in 2000 (FedEx Co., 2014). The FedEx Corporation is involved in delivery and shipping services mainly, and also it has developed a portfolio of business. It delivers different services to the different segments of the customers, which are business consulting services or support solutions, logistics services, e-commerce, and mainly the transportation services. Mainly, there are four segments of the company under the umbrella of FedEx Corporation, which are FedEx Ground, FedEx Express, FedEx Freight and FedEx Services. It is a multinational company, operating in more than two hundred countries, while its main territory is the United States of America and European Countries. More than 300,000 employees are working in the company, and it has established more than 1800 offices in the world (FedEx, 2014). 2.0 Identification of Strategic Issues In order to identify the strategic issues, there is need to conduct a strategic analysis of the FedEx Corporation with the help of strategic management tools. It is an important concern that which issue is basically strategic, as different individuals view the issue differently (Plambeck & Weber, 2010). A model suggested by Dobson, et al. (2004) has suggested that the strategic issues can be identified through the internal and external environmental analysis. Though, there can be a number of issues which may be strategic or not, but for the strategic issue to be taken to the next level of strategy development, there should be consideration of organizational vision and strategic objectives (Dobson, et al., 2004). It suggested that the strategic issue which has impacted on the strategic objectives must be considered, as there is the need to align the strategic initiatives with the strategic objectives of the corporation (Neilson, et al., 2008). 2.1 Strategic Analysis The strategic analysis can be executed by employing different strategic management practices, such as PESTEL Analysis, SWOT analysis, The Value Net, Porter’s Five Forces, and resource based view (Freeman, 2010). The strategic analysis of FedEx Corporation is performed by the industry profiling of the company and the external and internal analysis of the organization, where the SWOT matrix is applied to get the snapshot of all the external and internal factors, then the detailed analysis of the external environment is given by PESTEL analysis. Then the competitive environment is addressed by the use of Porter’s five forces of competitive advantages. 2.1.1 Internal and External Environment Analysis To conduct the external environment analysis, PESTEL Analysis framework is used. Here below the PESTEL Analysis is performed, which can provide a more detailed analysis of the company’s external environment (Hodgkinson, et al., 2006). PESTEL Analysis Political Opportunity: FedEx has allowances to provide its services to any market than the USA only, so growth can be promising. Threat: The rivals of FedEx are commonly government owned and they have more access to capitals, and lesser cost and profit susceptibility with advantageous business circumstances than FedEx (FedEx Inc., 2013). Technological Opportunity: The advancement of IT infrastructure and development of technology in aircraft and fleet can result in superior services delivered with enhanced partnership with the customers can enhance the customer’s satisfaction. Threat: there is need of higher costs in the gaining and maintaining of IT infrastructures as well as the complication involve in this, can damage the company’s revenues and reputation (Datamonitor, 2010). Economic Opportunity: the economic circumstances are improving, even in the USA, there are good prospects with respect to GDP rates. Besides, the growing internationalization and integrated markets are augmenting the economic growth. Threat: The higher instability in the energy charges and henceforth the fuel prices can be threatening to FedEx, and also higher costs for insurance and security of shipments (Market Publishers, 2014). Environmental Opportunity: The company’s use of recycled products and its contribution in ecosystem through it can be an opportunity to gain goodwill. Threat: With the growing anxieties of environment sustenance among societies and related establishments can request more, which can pose threats of corrupt repute or else higher costs to use environment-friendly technology (Datamonitor, 2010). Socio-cultural Opportunity: as the consumer behavior towards shopping is changed, they mostly prefer to do online shopping and use of internet for a variety of services can be much opportunistic. Threat: Due to more options available to customers, their lack of tolerance for bad service and increased demand for customized services can pose threats to the company (Alan & Simon, 2008). Legal Opportunity: The drop in the legal obstacles can cause the market development for the company. Threat: The variations in the tax regulations, ecological and security regulations can be a threat to the company’s sustenance (Datamonitor, 2010). Figure 1. PESTEL Framework applied to FedEx. Source: Author Porters’ Five Forces of Competitive Advantage The five forces model given by Michael E. Porter is employed for the competitive analysis of the company. Porter (2008) has contended that these five forces are the bases of competitive advantage/disadvantage, and by studying these forces, one can formulate strategies to be ready for action to counter rivals’ actions. The managers can consider possibilities to influence these forces in the pursuit of the company’s interests (Porter, 2008). The main assumptions of the model are criticized in the literature, and also for the range of its application, where it assume a stationary market configuration so can be functional for simple markets (De Man, 1994). Additional criticism is that it was established in early eighties, which entails that it cannot be used with these assumptions in 21st century (Karagiannopoulos, et al., 2005). The shipping external environment analysis demonstrates that there is an extreme level of competition between the UPS and FedEx, where a number of competitors are also competing in the industry. The following model presents the Five Forces for the FedEx Corporation.   Supplier Power (Low)   Threat To Entry (Low To Moderate) Threat Of Substitutes (Low)   Buyer Power (High) High Degree Of Rivalry Figure 2. Porter’s Five Forces Model applied to FedEx. Source: (Porter, 2008) Threat to New Entry: The threat to new entry is low to moderate with respect to FedEx, because there is requirement of higher fixed costs in developing a global shipping network, in acquiring and maintain the infrastructure necessary to strive. And also, there are strong brands in the industry which have advantage of remaining in competition due to their reputation; DHL and UPS. Extent of Competition: Prevailing competitors in the shipping industry are involved in the aggressive competition to gain more market share, where there is consistent competition among UPS and FedEx. Therefore, competitors have to concentrate more on the constant enrichment in quality of service, reducing prices, and groundbreaking packages, as there is very low costs of switching. In addition to these, the higher fixed costs in upgrading the technology can be the exit-barrier. Bargaining Power of Buyer: There is high bargaining power of buyers, as the switching cost is very low, so customers can switch to the competitors easily which are delivering superior quality services, lower rates, and convenience. Bargaining Power of Supplier: There is low bargaining power of suppliers, as the companies in shipping industry procure in bulk and can substitute the other suppliers with good credit terms and lower charges. Threat of Substitute: The threat of substitutes to the carriage service is low, due to the fact that this service cannot be substituted easily. 2.1.2 Sources of Competitive Advantage FedEx Corporation is not the market leader, but is in head to head competition, which means it has some competitive advantages. Mainly, it is the brand name of the company which provides it the competitive edge over UPS in some segments, where customers use the expression “FedEx it” apart from “deliver it”. Additionally, the company has been investing much in the capital infrastructure, which can be the source of competitive edge. The superior quality of its service, brand equity, exclusive combination of packages and the infrastructure are the main key success factors, and FedEx Company compete on these bases. Moreover, the company’s dedication to innovate and employing new technological advancements is additional capability. Generally, the FedEx also has some competitive disadvantages with respect to UPS, where there is lower return on equity, revenues, and market share of FedEx, but competitive with respect to the quality of services (El-Khamy & Golubov, 2005). 2.1.3 Summary of Analysis To summarize the external and internal analysis of the FedEx Corporation, the SWOT matrix can be employed. The SWOT analysis delivers a bigger picture of the company’s overall environment, where it answers to the question that whether the company has the appropriate resources and competences (internal environment), which can be tapped to avail the opportunities and evade the threats in its surrounding (external environment) or not (Pahl & Richter, 2007). “The SWOT Analysis takes the strengths and weaknesses of company, and also the opportunities and threats in the external environment into consideration” (Manteghi & Zohrabi, 2011). The SWOT analysis has been used for strategic positioning of the company and to formulate the strategic direction for the organization, as suggested by (Helms & Nixon, 2010) and (Quezada, et al., 2009). However, the SWOT analysis is not free from criticism, as there are some disadvantages of the SWOT matrix, where it does not consider all the environmental elements and competitive factors into account and overlooks some important matters, such as inflation, governmental laws and regulations, and so on. Furthermore, it is overgeneralized and is founded on subjective examination of the corporation’s aspects, where it does not have that much predictive power and systematic ways, so cannot be used for companies operating in the mature markets (Agarwal, et al., 2012). But it is argued that “SWOT’s ease of use often leads to its misuse” (Chermacka & Kasshanna, 2007, p. 392), where it is regarded just as a misconception due to lack of ability to get appropriate outcomes. Following figure presented the SWOT analysis for the FedEx Corporation. SWOT Analysis To assess the internal environment of the FedEx Corporation, the strengths and weaknesses can be measured, while in order to assess the external environment, the opportunities and threats can be evaluated. Strengths Unconquerable reputation for on-time delivery Market Leader in FedEx Express segment Strong brand equity Competent infrastructure, capabilities and capital, such as planes and aircrafts. Extensive capital investment to be competitive in long term Efficiently and effectively developed research and development department nurturing the innovation Good Industrial Rankings and reputation, due to reliable operations from many years Forerunner in developing company websites for online ordering and tracing orders by customer First mover advantage in express carriage Effective organization of Hubs Positions and Routing High preference to customer requirements Weaknesses Higher Prices in comparison to the competitors Other than FedEx Express, its other services are behind the rivals Extremely susceptible to the economic circumstances and fuel charges Lesser market share with respect to the rival Growing unionization (pilot and drivers unionization) Intricate organizational structure Asserts to be distinguished, but in reality not to United Parcel Service (UPS), as UPS has a one to one competition with it Lower market share at global level Higher fixed costs because of its constant investment in capital enhancement Opportunities The improving economy particularly for Asian countries Continued globalization in the worldwide market can resulted in more business opportunities with greater sizes Lower governmental barriers and intervention, so expansion can be possible Gaining more market share from rivals in the strong brand of Express The emergence of e-businesses, online order placements and access to technology can increase demand for stress-free, easy, and on-time delivery Change in consumers’ attitudes towards online order placements The higher fixed costs involved in maintenance of infrastructure can be a barrier for new entrants New Technological developments in aircraft and fleet are emerging Threats Impossibility of being market leader In shipping industry, there is lower return on capital employed due to its nature Higher fixed costs in maintenance of infrastructure for express segment Online business require lower prices to gain more customers and to compete Consumers’ behavior, as they are becoming less tolerant, and have more variety of services High volatility in energy prices Growing concerns for environment friendly products and services Higher costs involved in this can hurt profits Threats from rival because of higher prices, where the main rivals are UPS and DHL, (threat of starting a Price war) Many competitors are state owned and have more access to resources Figure 3. SWOT Analysis of FedEx Corporation. Source: Author 2.1.3 Strategic Issues The above analysis has identified a number of strategic issues, but it is important to analyze these issues with respect to the stakeholders. The stakeholders are the groups of those which are affected by the organizational decisions about strategic initiative, as they have their interests in the organization (Freeman, 2010; Freeman, 1984). So, it is vital to analyze the stakeholders in order to evaluate the urgency and feasibility of strategic issues. The literature has suggested different types of classifications of stakeholders on the basis of their influence and authority over the issue, where the most basic classification is the primary and secondary stakeholders given by (Clarkson, 1995). It is also argued that the stakeholders can impact on the prioritization and selection of the strategic initiative (Achterkamp & Vos, 2008). However, these can also be categorized on the basis of two classes, external and internal stakeholders, where the parties inside organization are internal while outside of organization are external stakeholders as argued by (Blair & Fottler, 1990). In context of the FedEx Corporation, the primary stakeholders are management, board of directors, investors/shareholders and the government. They are the main parties, which are concerned with the success of the company, and also have the investment in the company, thus they can be regarded as primary stakeholders. They will have greater influence on the strategic choices. While the secondary stakeholders are those with whom organization do interact but they have not invested their interests or capital in the organization, these are employees and customers of the FedEx Corporation. After analyzing the stakeholders, the strategic issues can be diagnosed on the basis of their importance and impacts on the stakeholders. Following are the major strategic issues identified from the analysis, which are mostly inter-related. 1) Decrease in Return on Capital Employed There has been seen a decrease in the return on capital employed, which is resulted from the major impairments and disposing off the older equipment and investing more in capital expenditures. The revenues are also diminishing, and are hurting profits from previous five years (FedEx Inc., 2013). The return on capital employed is the main figure to assess that either the firm is getting some return by deploying its capital or not. In this, there is need to increase sales which will in turn increase the earnings and then ROCE (Damodaran, 2007). The major stakeholders being affected with this issue are the primary, which are shareholders, BODs, and management. So this strategic issue is considered to be important. 2) Differentiation Another strategic issue, which is the concern of both primary and secondary stakeholder in to differentiate itself from the competitors. The FedEx Corporation needs the differentiation as there is a fierce competition with the UPS and other competitors on the same level of quality. This results in higher bargaining power of the customers, lower switching costs, and thus hurt market share and profits. 3) Uncompetitive Pricing Strategy The analysis reveals that the prices and rates charged by FedEx are higher than the major competitor, UPS, which makes the pricing strategy of the firm uncompetitive. As the bargaining power of the customers is high and their switching cost is much lower, thus it is important to make the pricing strategy more competitive in order to gain the competitive advantage. This can also be the cause of lower sales and in turn lower revenues, which resulted in lower ROCE. The prices for FedEx services are mainly higher due to the higher fixed costs involved in maintaining the infrastructure. It affected the primary and secondary stakeholders, as lower revenue will cut the return towards shareholders and higher prices will dissatisfy the customers. So, there is need to develop some sort of strategy for reducing the prices. 4) Lower market share Another strategic issue, which is at the corporate level is that the company has been facing the lower market share than the competitors, especially from the UPS. In order to compete with the rivals, the FedEx Company has to increase its market share by entering into more untapped markets. This can also be the result of the higher prices which would dissatisfy the customers and they are switched towards the competitors. Here, the both primary and secondary stakeholders are impacted by this strategic issue. 5) Complex organizational structure The structure of FedEx Corporation is quite complicated, where it operates in four segments and similar activities of these four segments are performed in fragmented ways. For instance, for the pickup service of shipments, there is a person for the FedEx Express, and another person is employed on the FedEx Ground. The company has disadvantage of this fragmented structure of the activities, on the other hand, the UPS has more integrated structure to operate. This may increase the redundancies of tasks and also the costs. This affects the primary stakeholders, so the major concern is given to this issue, which is strategic and long-term issue. 6) Union of labors There has been seen an upsurge in the Pilot’s demands for salaries and other employees’ benefits. It is mainly due to the establishment of the Pilots Association, which is working in concern of the pilots’ rights (FedEx Inc., 2013). This increase in unionization can hurt the business operations, as there is also the threat of a driver’s association. This is another strategic issue, which can be result of higher revenue losses and disruptions in routine businesses, if the employees behave defiantly. This can impacted the primary as well as secondary stakeholders, as the customers may be missed to be attended properly in such matters. 7) Higher volatility in Fuel Prices The FedEx business work in an industry with competitive pricing setting, which is now aggravated by ongoing increase in fuel prices. The increase in fuel prices can enhance the costs to the company and thus can hurt the profits of FedEx. It is a major threat to the company, as there has been an increase in the fuel prices from past years. It also impacts on the service delivery prices, as there would be higher input costs in delivering the services. So, it also impacted the primary and secondary stakeholders. 3.0 Strategic Goals The strategic issues are now identified and their impact on the stakeholders is also attended, and now these should be addressed as the strategic goals. The strategic goals includes organizational vision, mission and objectives (Lynch, 2012). The strategic goals to address the abovementioned strategic issues must be aligned with the overall corporate mission and vision. This alignment is necessary so as to integrate all the processes in the organization (Kaplan & Norton, 2001). These mission and vision provide a direction and then objectives are formulated to take an action. The vision statement of the FedEx Corporation is; “The FedEx has envisioned itself for 2016, where the company will have 1 trillion dollars of estimated worldwide e-commerce sales in 2016, signifying the 1% of international GDP. And also it has estimated a 42% increase in US online expenditure in 2017” (FedEx Inc., 2013). The strategic mission statement of FedEx Corporation is described as, “FedEx Corporation will produce superior financial returns for its shareowners by providing high value-added 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 employees, partners and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards” (FedEx Co., 2014). In order to formulate the strategic goals here, the FedEx Corporation’s mission statement is kept in view. The strategic goals and their objectives are here formulated on the basis of strategic issues extracted from the strategic analysis, stakeholders’ interests, and also the organizational mission and vision statements. Strategic Goals Strategic Objectives 1. Higher return on capital employed (FedEx has lower returns and profits) To improve returns to shareholders To increase profits To compete with its major competitor UPS. To satisfy primary stakeholders 2. Greater market share (FedEx has lower market share than UPS) To satisfy primary stakeholders For business expansion To compete with competitor, UPS To use the full capacity of capital 3. Achieve differentiation (only way FedEx can compete with UPS) To compete with the major competitors; UPS, DHL To get competitive advantage for long term To satisfy primary and secondary stakeholders 4. The integration of business segments (FedEx Express, Ground, Freight, and Services) To lower complexity and redundancies in tasks To get integration benefits To improve internal processes To cut costs To increase efficiency and effectiveness 5. Offering services at lower prices (as FedEx have higher prices than UPS) To satisfy customers To attract more customers To compete with competitors To attain more revenues 6. Effective HR Policy (FedEx has issues of increasing unionization and HR policies) To satisfy employees To reduce the increasing unionization To make internal process smooth To enhance efficiency and productivity There may be the conflicting interests of the stakeholders, where the two goals could be contradictory, as in this case, the 3rd and 5th goals are contradictory, where there is need to choose among them. The differentiation needs higher costs and thus resulted in higher prices, while the fifth goal is to reduce the prices in order to compete. This is the concept known as pluralism in stakeholders’ interests (Gallimore, 2009). 4.0 Recommendations for Actions to be taken by FedEx After formulating the strategic goals, there is need to develop some strategic actions, which the FedEx corporation can carried out in order to achieve these goals (Wheelen, et al., 2010). According to Porter (1980), there are different strategic options, which can be adopted to achieve the strategic goals and objectives. Michael Porter suggested three generic strategies based on two dimensions of scope and source of competition, which can be employed to achieve different goals, where to lower cost, there is cost leadership strategy, to be more competitive, the differentiation strategy is used. The third strategy is focus, which is to enter into a niche market and it can be focused with respect to lower cost or to the differentiated product for niche market (Dess & Davis, 1984). There are other strategic options as well, such as Ansoff’s matrix based on two dimensions of market (new/existing) and product or service (new/existing) (Lynch, 2012). Among these options, there are number of strategic actions which can be taken to achieve the suggested goals of the FedEx Corporation. These are following strategic actions. Differentiation For FedEx Company, there is need to use the differentiation strategy in order to compete in this competitive environment. Among the Porter’s three generic strategies, the differentiation strategy is chosen. According to this, the FedEx should enhance the service quality and also the infrastructure in comparison to the UPS, where it is in fierce competition. It will strive to attain the 3rd goal. Cost Reduction Strategy Another way of achieving the 1st and 5th goals (mentioned above) is the cost reduction strategy. According to this strategy, the costs can be reduced by the use of full capacity and process optimization. So the FedEx should deliver proper training to its employees and should employ full capacity along with it must eradicate those cost elements, which are not generating any income. This way the cost can be reduced, and higher revenues and higher ROCE can be attainedInvalid source specified.. Competitive Pricing Strategy For the Fifth goal of lowering prices, the FedEx should use a competitive pricing strategy, where it needs to lower its prices. It will also enhance the customer satisfaction and to achieve 2nd goal of getting more market share. Higher market share can counterbalance the loss suffered by plummeting prices. It is also significant in the industry where bargaining power of consumers is high (Karagiannopoulos, et al., 2005). As the FedEx has more fixed costs, which is main hindrance in reducing the prices, thus another strategy can be used for this purpose. Another strategy suggested by the (Olderog & Skiera, 2000 ) is the “bundle pricing strategy”, where FedEx can bundle up its diverse services and offering these bundles or packages at lower prices, where it can use to pull the sales of FedEx Ground service by coupling its amenities with the FedEx Express services that is the market leader. This will deliver two advantages; lesser prices, and cumulative sales as well as revenues. Thus resulting in the achievement of goals with numbers 1, 2, 5. Market development Strategy The FedEx can also employ market development strategy (Ansoff’s Matrix has explained this strategy as taking the existing product in new markets) for more market share, where the FedEx will target new customer fragments and new markets on section basis. In this regard, the FedEx should go for Asian markets. The time has come to enhance its market share in global market. The company can enter into low-cost areas, where there is low-cost labour and tranquil access to resources. Human Resource Strategy There is need to modify the human resource strategy, where the company should focus on the employees’ needs and requirements as well. Employees are the internal customers to the organization, so they need to be satisfied, and here they need to get competitive and attractive compensation packages and employees’ benefits. Technological Advancements The business segments of FedEx should be integrated by employing new technology, where the new technological advancements can be used to integrate the activities of these business segments. Thus, the new technology applications should be used, which will result in lowering the cost and enhancing the efficiency in long term. 5.0 Key Elements of Performance Management System After developing the strategic goals and the required actions to achieve these goals, there is need to set some measurement elements in order to evaluate the performance with respect to these goals. The performance management system described the measures which can be used to assess that either these goals and strategies will lead towards the successful organizational performance (Arvey & Murphy, 1998). In this regard, for strategic performance management system, (Kaplan & Norton, 2001) has developed a framework named as Balanced Scorecard, which is well-known for including a number of perspectives to assess the organizational performance. As they argued that balance scorecards provide an integrated framework for assessing the performance as well as it also point out the tradeoffs and regions of sub-optimization (Kaplan & Norton, 2001). The balance scorecards provides four perspectives to be considered, which customers, innovation and learning, financial and internal perspectives. Underneath, these perspectives are addressed in context of the case of FedEx, for whom the goals are formulated. Customer Perspective Goals Measures Differentiated services The percentage of increase in market share Low Pricing The percentage of sales increased from lowering prices Customer satisfaction Defined by customer, or the percentage increase in sales Financial Perspective Goals Measures To compete The percentage of return on capital employed (ROCE) To Prosper The percentage of Revenues increased Internal Perspective Goals Measures Integration of business segments The percentage of decrease in per-unit-cost (measure of efficiency) Employees satisfaction The number of strikes held, the absenteeism or attendance of employees Technology advancements The competitive advantage, Reduction in number of processes Innovation and Learning Perspective Goals Measures Leadership in infrastructure Time to market of new service Employees’ learning Breakthrough services provided These are the balance score cards in context of the FedEx Corporation, where the four perspectives are described with respect to the goal and their measures. These are the key elements of the performance management system, which can be used for the purpose of evaluation and assessment of the organizational performance. These can be analyzed as, for instance, in order to check that either the firm is competing on the financial perspective, then the return on capital employed can be used as a measure. 6.0 Conclusion The report has conducted the strategic analysis of the FedEx Corporation with the help of SWOT, PESTEL and Porter’s Five Forces Models, in order to find out what strategic issues are being faced by the organization. After extracting the strategic issues, the strategic goals and formulated to address these issues. Then some recommendations about the strategic actions are given to the FedEx to be taken to achieve the strategic goals. Lastly, the key elements of performance management system with the help of balanced scorecard are described to measure performance. 7.0 References Achterkamp, M. C. & Vos, J. F., 2008. 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