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FedEx's strategy

The company found that sureness of delivery and the timeliness of delivery were of greatest concern to customers. While customers were concerned with costs, Federal Express found that they were willing to pay a higher fee to assure both delivery and timeliness. Thus, the marketing service quality program at Federal Express was born. To implement this program successfully and to maintain the effectiveness of the program, however, demanded that the organizational structure at Federal Express be revamped. At Federal Express, it was determined that the revised organizational structure must provide for greater employee empowerment.

At Federal Express, the quality management department was formalized within the revised organizational structure, but was maintained as a relatively small organizational unit. By keeping the quality management department relatively small, the firm was in a position to pursue the notion that quality is everyone's job at Federal Express. This notion is put into practice by empowering employees to make an increasing proportion of the day-to-day work decisions at Federal Express.

3. What role has information technology played in FedEx's strategy and its implementation efforts?

The design, implementation, and operation of the network and database systems required by Federal Express had to overcome problems that were both social and technological in character. The technological problems proved to be the most easily overcome. A global information system that served many of the same purposes required by Federal Express already existed. This global information system was a network operated by the United States military. The global information system designed and implemented by Federal Express was modeled after the military global information system. Importantly, this information system is designed to predict the development of problems to enable the company to make necessary corrections before the proble...

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FedEx's strategy. (1969, December 31). In Retrieved 11:21, August 17, 2017, from
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