Fedex Corporation

FedEx Corporation Case Analysis

Established in 1973 as a time-definite overnight shipping company FedEx Corporation has grown into a business conglomerate of five companies involved in global package transportation , printing , and other trade solutions which employs approximately two hundred thousand people FedEx 's formula for success is encapsulated in a simple business creed People-Service-Profit ' or PSP , which puts employee satisfaction at the top of company priorities in to deliver maximum service quality and maintain company profitability . At the heart of the PSP however , is an open and honest communication between employees

and the management . To realize the PSP creed , the company strives to develop communication competence among its managers focused on the development of communication skills . Likewise , the company invests fully in the continued development of management personnel , providing them with the necessary support in terms of trainings , incentives , and feedback mechanisms . FedEx trains its managers to be effective employee communicators and motivators , and makes certain that managers fully understand their responsibilities based on company expectations

Opportunity

Since the company 's inception , top management had vigourously emphasized the role of competent and open communication in value creation . FedEx has therefore used strategic communication to facilitate open and direct management-employee communications that it considers an important driver of company profitability . Likewise , the company has also ensured that an infrastructure , in terms of information and communications technology , exists to support efforts at disseminating company values and pertinent knowledge regarding employee concerns and management interests

Analysis

The company 's decision to establish effective employee-management communications is influenced by two factors , the first of which is FedEx 's competitive strategy as outlined in the corporate creed of People-Service-Profit ' or PSP , and second , by the company 's management model as a conglomerate of five independent companies According to the PSP , the company strives to take good care of its employees in to motivate them to take good care of FedEx 's costumers , which ensures a healthy bottomline for the company . Clearly FedEx 's corporate credo mirrors its strategy for maintaining competitive advantage in the increasingly competitive external environment of the air cargo and package transportation industry . This strategy acknowledges the importance of ensuring high job satisfaction rates among the company 's employees who are at the frontline of the business and who are responsible for delivering quality service to the consumers In to develop a good working environment , the company needs to develop a culture of open communication wherein the top management are genuinely informed about ground operations and the employees know their role in the company 's plans and goals and are passionate about achieving them . Thus , FedEx treats its managers as intermediaries between the top management and the frontline workers , whose primary responsibility is to facilitate the active transfer of information and communication from the top management to the employees and vice versa . In the same manner , the company 's conglomerate status , and the inherently demanding and pressurized environment in the cargo and freight transport insudtry makes it necessary to...