BTEC HND IN BUSINESS (MANAGEMENT)

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NAME OF STUDENT
REGISTRATION NO.
UNIT TITLE
ASSIGNMENT TITLE
ASSIGNMENT NO
NAME OF ASSESSOR
SUBMISSION DEADLINE

Trn L Hng Anna (F04B)

F04-056
Unit 7: Business Strategy
FedEx Strategy Evaluation, Selection and Implementation

2 of 2
Mr. Pham Quoc Khanh
January 8, 2013

I, Trn L Hng hereby confirm that this assignment is my own work and not copied or
plagiarized from any source. I have referenced the sources from which information is obtained
by me for this assignment.

________________________________

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Date

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1

Unit Outcomes
Outcome

Evidence for
the
criteria

Feedback

Assessors decision
First

Understand
approaches
to strategy
evaluation
and
selection
LO3

Understand
how to
implement a
chosen
strategy
LO4

Analyse
possible
alternative
strategies
relating to
substantive
growth, limited
growth or
retrenchment

3.1

Select an
appropriate
future strategy
for a given
organisation

3.2

Compare the
roles and
responsibilities
for strategy
implementation

4.1

Evaluate
resource
requirements to
implement a
new strategy for
a given
organisation

4.2

Discuss targets
and timescales
for achievement
in a given
organisation to
monitor a given
strategy

4.3

Merit grades awarded

M1

M2

M3

Distinction grades awarded

D1

D2

D3

Re
work

Internal
Verification

Outcome

Evidence for
the
criteria

Feedback

Assessors decision

Assignment
( ) Well-structured; Reference is done properly / should be done (if any)

Overall, youve

Areas for improvement:

ASSESSOR SIGNATURE

DATE

DATE

NAME:.........................................................................................

(Oral feedback was also provided)

STUDENT SIGNATURE
NAME :..............................................................................
FOR INTERNAL USE ONLY
VERIFIED
YES
NO
DATE
: ...........................................................................
VERIFIED BY : ...........................................................................
NAME
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Internal
Verification

A REPORT ON FEDERAL EXPRESS

Prepared for:
Mr. Pham Quoc Khanh (Lecturer)
Unit3: Business strategy
Banking Academy, Hanoi
BTEC HND in Business (Management)

Prepared by:
Trn L Hng - Anna
Registration No.: ITP F04- 056 ( F04B)

INTRODUCTION

Federal Express or FedEx is an American Corporation global courier delivery services

company. The name FedEx is the short version of the companys original air
division, Federal Express, which was used from 1973 until 2000. It is the Worlds
largest express transportation company. It has headquarters in many countries, from
Africa to Asia.
FedEx provides express and logistics services from business and people. With the
quality standard, FedEx became the leading organization in transportation industry all
over the World. They provide a range of services for customer such as FedEx Express,
FedEx Ground, FedEx Freight, FedEx Office, FedEx Custom Critical, FedEx Trade
Network, FedEx Supply Chain Solutions and FedEx Services.
As mentioned in the first report, FedEx has a desire that expand their business in
Vietnam in the near future. All information of FedEx and some suggestion based on
theories were stated in the previous report. In this report, the five-year-objective of
FedEx in Vietnam will be set up. This objective and direction are the probably
recommendations for FedEx in their long-term business in Vietnam.

I. Possible alternative strategies and evaluation for FedExs 5-year plan (focus on
outcome 3.1 & 3.2)
1. Possible strategies for FedExs 5-year plan
Objective for 5-year plan from 2013 to 2017 of FedEx: Reaching 40% market share
of Vietnams market at the end of 2017
One can see that, the objective should be divided into two stages to have suitable
strategies as well as detail planning to easier to achieve.
Stage 1 (2013-2015): Achieving 20% market share of Vietnams market at the end of
2015
Stage 2 (2016-2017): Promote FedEx brand over Vietnam and reaching 40% market
share of Vietnams market at the end of 2017
2. Alternative strategies for FedEx
The table below will show detail about the variety of options for each stage of
objective
Alternative Stage 1 (2013-2015): Achieving
Strategies

Stage 2 (2016-2017): Promote

20% market share of Vietnams FedEx brand over Vietnam and

market at the end of 2015

reaching 40% market share of

Vietnams market at the end of
2017

Option 1

Acquiring

Market penetration

Option 2

Joint venture

Market Development

The table below will show detail about the key activities in each option to achieving
the objective

Stage 1

Key activities
Analysis about finance, reputation, operating of some
companies such as Worldwide Express

Preparing and acquiring Worldwide Express

Have suitable strategies to combine between new company

and FedEx
Take advantages of FedEx reputation

Stage 2

Apply new technology for service

Market

Set the standard high quality service for market

Focus to develop 4Ps: product, price, place, and promotion

Acquiring

Option 1

penetration

attract new customers

Stage 1
Joint
ventures

Research about suitable companies to build the partnership

Join venture with EMS Express which is hubs in Hanoi and

Ho Chi Minh City

companies

Option 2
Stage 2
Market
development

Standardizing managing and service system between two

Focus on promoting brand from North to South of Vietnam

FedEx get used to working style and market of EMS Express
to expand the distribution network into some other provinces

Use different pricing policies to attract different types of

customers and create new market

One can see that, with each stage of objective, there are two suggest of option and for
FedEx, Vietnam is an oversea market therefore using market entry strategy is suitable.
Firstly, in option 1, strategy for stage 1 is Acquiring and for stage 2 is Market
penetration. Easy to understand that, Worldwide Express is a reputable company in
logistic industry with flexible operating system and large network therefore acquiring
Worldwide Express help FedEx build stronger image and have large distribution

channel. Market penetration help FedEx make existing customer use more and also
attract new customer.
Secondly, in option 2, strategy for stage 1 is joint ventures and for stage 2 is market
development. One can see that, when joint ventures with big company like EMS
Express, FedEx can easier to learn about the method in logistic of this company in the
foreign countries, help FedEx reduce the cost for research new market, reduce the risk
and can achieving the objective. Then company can use market development to
expending new markets and give more services to more and more customer in
Vietnams market.
3. An appropriate future strategy for FedEx
In order to select the most appropriate option for company, I have to analyze the
suitability, Feasibility, Stakeholders acceptability, and the risk of each option.
Stage 1: Acquiring and market penetration
ACQUIRING
Criteria
Suitability
Strength and distinctive competences
Fix weaknesses
Satisfy the goals
Deflect environment threats
Average score: 4
Feasibility
Human Resources
Financial Management
Technology
Strong Brand
Average score: 4.25
Acceptability to stakeholders
Shareholders
Customers
Government
Banks
Average score: 4.25
Risks
Business risks
Technology
Average score: 2
Total: 14.5
Total score: 29

Score
4
4
4
4
4
5
4
4
5
4
4
4
2
2

MARKET PENETRATION
Criteria
Suitability
Strength and distinctive competences
Generate competitive advantage
Satisfy the goals
Deflect environment threats
Average score: 4.25
Feasibility
Human Resources
Financial Management
Strong Brand
Technology
Average score: 4.25
Acceptability to stakeholders
Shareholders
Customers
Government
Local authority
Average score: 4
Risks
Internal risk
Business risks
Average score: 2
Total: 14.5

Score
5
4
5
3
4
5
4
4
3
5
5
3
2
2

Analysis why suggest Acquiring

Suitability: one can see that, Worldwide Express have many knowledge and
experience operating in Vietnams market, if acquiring it FedEx might attract
more

customers. In addition, Worldwide Express is a major partner of

FedExs competitors like DHL and UPS so it suitable for FedEx avoids the
competitive from competitors.

Feasibility: FedEx has good financial management, the human resources are
good. In many year developed, with a modern technology in delivery goods
and services as well as a strong brand name therefore this strategy is feasible.

Acceptability to Stakeholders: FedExs shareholders will accept with

acquiring method because acquiring local companies help company can easier
to entry a new market. Banks will also feel more comfortable dealing with a
business that already has a good record.

Risks: Business risks: there might be conflict between culture as well as style
work in Worldwide Express and FedEx. Besides that, the technology of
Worldwide Express might not suitable to apply with the system delivery of
FedEx

Analysis why suggest Market penetration

Suitability: the advantage of Market penetration is reducing the risk that

customers will switch to other logistic companies thereby deflecting
environment threats. Also, this strategy will persuade existing customer use
more and also attract customers from competitors. Therefore FedEx will
increasing market share if apply this method

Feasibility: with strong brand name FedEx can take advantages of FedEx
reputation this strategy is feasible. Moreover, FedEx can definitely focus to
improve 4Ps base on the strong finance such as company able to enough
money for advertising campaign (Promotion), and build up new distribution
system (Place).

Acceptability to Stakeholders: Shareholders will also accept because this

strategy would bring more revenue for the company. In addition, customers
will accept this strategy because they might be benefited from sales
promotion. However, in some cases, shareholders think that the lower service
price might not lead to good profit and it could affect negatively on company.
9

Risks: Business risks: with a large of distribution channel might provide the
same quality of service might not satisfy customers.

Stage 2: Joint ventures and market development

JOINT VENTURES
Criteria
Suitability
Reduce risks
Fix weaknesses
Technology
Suit policies
Average score: 4.5
Feasibility
Financial Management
Technology
External relations
Average score: 4.67
Acceptability to stakeholders
Shareholders
Employees
Government
Average score: 4.3
Risks
Business risk
Knowledge
Average score: 2
Total: 15.47
Total score: 30.39

Score
5
4
4
5
5
4
5

3
5
5
2
2

MARET DEVELOPMENT
Criteria
Suitability
Strength and distinctive competences
Fix weaknesses
Satisfy the goals
Deflect environment threats
Average score: 4.5
Feasibility
Human Resources
Financial Management
Technology
Strong Brand
Average score: 4.75
Acceptability to stakeholders
Shareholders
Customers
Local authority
Average score: 3.67
Risks
Internal risk
Business risks
Average score: 2
Total: 14.92

Analysis why suggest Joint ventures

Suitability: Joint ventures will help FedEx to reduce risks of government

intervention and also fix weakness of FedEx in Vietnams market. Besides
that, Government of Vietnam has many policies to supporting and encourages
foreign company. Therefore this strategy is very suitable.

Feasibility: with the professional financial management, FedEx can easier to

meet the requirement of partner. In addition, FedEx has an advance of
technology so they can good condition to make a close relationship with
partner.

Acceptability to Stakeholders: Government and shareholders will accept

because they can see the revenue when FedEx joint ventures with other
10

Score
5
4
5
4
4
5
5
5
3
4
3
3
1

companies. Employees might have more opportunities to work in different

environment, improve their skill, when have close relationship with partner

Risks Business risks: Conflicts of interest between different parties but

company can have suitable policies to improve.

Analysis why suggest market development

Suitability: with this strategy, FedEx will have new customer as well as a
large distribution channel thereby they can achieve the objective of this stage.

Feasibility: FedEx get used to working style and market of EMS Express to
expand the distribution network into some other provinces by the easier way
based on the strong finance. They also have good human resources to have
exactly plan for Use policies to attract different types of customers and create
new market. Therefore FedEx can achieve the percent of market share as
mentioned.

Acceptability to shareholders: Government and shareholders will accept

because they can see the revenue when FedEx development market.

Risks: Company might not satisfy existing customer because in some case
they too focus on the new customer. However, FedEx will concentrate for this
problem.

To sum up, one can see that, base on analysis above the second option has higher
score (30.39). It is use Joint ventures for stage 1 and market development for
stage 2. However, FedEx will gain maximum profit if the manager can have suitable
plan to combine with other strategy.
II. How to implement a chosen strategy for FedEx
1. Compare the roles and responsibilities for strategy implementation (outcome 4.1)
In this part we will discuss about the roles and responsibility of each department in
FedEx to meet the sub-objective and plan that company was mentioned.( the subobjective for each stage and the detail activities I will show in part 2 below)
Firstly, to complete two stages in their objective they should conducted by many
departments. For example:

Business Department is very important department which normally have

responsibility for building a plan for FedExs projects, such as: researching,
designing, etc.

11

Another important department is marketing which is responsible for how

FedExs service is promoted; thereby it has a direct effect on profitability of
company.

Corporate governance is one of the important departments in FedEx. This

department will audit the implementation of project at large. For instance, it is
tracking the operating of the company joint ventures by FedEx to make sure it
is running well, or manage and audit the performance of local distributors.

FedExs departments have to work together to implement each strategy and reach high
efficiency.
Secondly, the Human Resources should be shown in the action. To develop a plan for
FedExs campaign to attract more customers, it requires 20 workers to work on it.
It is not necessary that there must be one of them to be the team leader to control all
process. Besides that, the skill and the level of job of employees are very important.
The third factor shown in the action plan is Resources. This is an important factor in
any company. To implement strategy, FedEx must decide how to allocate resources.
The action plan mentioned about three resources: times, workers, and money for each
activity.
In addition, the time for this plan is fixed as five years should be mentioned in action
plan. The time allocation depends on the features of each activity as well as the
human resources.
From the action plan, the total budget that FedEx will spend for five years is about
$60 million. ( Fedex, 2011)
Last but not least, the targets and measurement are conducted. Company should
have a specific target and the measurement for this action in action plan. The target
can help company have exactly plan for each department for each groups of market.
The measurement help managers can have suitable analysis about performance of
each staff as well as the operation of company.
The table below I will show detail about the sub- objective, activities to achieve each
target, and departments to carry out each activities
Strategies
Stage 1
Joint

Sub-objectives
Activities
Department
Choose and joint ventures Planning for selecting suitable Planning Dept.
potential companies within company to joint ventures
12

ventures

3 months

Completing

joint

ventures Finance Dept.

with EMS Express

& Legal Dept.

Ensure the good operating Assess

of

the

joint

the

operating

for Corporate

ventures FedEx and new company

governance Dept.

companies to gain 20%

market share by 2015
Stage 2:
Market

Expand
Use

different

geographically

by Business planning

pricing using model style of EMS Dept.

development policies to attract different Express and

types of customers and
create new market and
reaching

40%

market

Put

new

branches

into Business planning

operating: build new branches

Dept. and Human

Resources Dept.
Research market to know R & D Dept.

share by 2017

about the buying behavior of

customer in new market
Apply different prices policies Marketing
to meet the satisfy of new Sales Dept.
segments

2. Evaluate resource requirements to implement a new strategy for a given

organization and action plan to monitor a given strategy for FedEx
The flowing is action pan for FedEx in the neat five year
Stage 1 (2013-2015): Achieving 20% market share of Vietnams market at the end of
2015
Stage 2 (2016-2017): Promote FedEx brand over Vietnam and reaching 40% market
share of Vietnams market at the end of 2017

13

and

14

Main Activities
Action plan
Resources
Sub- Objective: Choose and joint venture potential companies within 3 months
Planning
Planning Dept.:
- 3 teams (20 workers)

Set up the criteria for - 3 months

the

company

that - $2,500

FedEx wants to joint

ventures:

size

Select

Measurement
companies

that - Base on joint ventures

suitable for every set up

companies

criteria of FedEx in 3

reports and other articles

months

from Internet, Business

employees,

locations,

sales,

accounting

magazine to ensure they

of

business,
finance,

Targets

meet the criteria

reputation,

etc.

Joint ventures

Research and Select

two suitable companies

- Finance Dept.:
- 20 workers
Negotiating the price - 2 months
and

pay

for

Complete all joint ventures

procedure

the - $30 million

business

with

the

targeted companies ( EMS

- Hire

the

lawyers

to

support and check the

legal procedures

Express ) in three months

- Legal Dept.:
Due diligence process
Objective: Ensure the good operating of the joint ventures companies to gain 20% market share by 2015
Assess the operating
- Corporate governance
- 25 workers
Make sure that the joint - Base on financial reports

15

Dept.:

- Until 2015

ventures

companies - Based on the reporting

Keep tracking the

- $50,000

operate well and be able to

from Government, the

operating of the

gain 20% market share by

Ministry of Finance, etc.

company to make sure

2015

it is running well.
Adjust the strategy,
policies if they are not
effective
Stage 2:
Main Activities
Action plan
Resources
Targets
Measurement
Sub- objective: Use different pricing policies to attract different types of customers and create new market
Expand
- Business planning Dept.:
Select
4
potential Compare the reports of
geographically

Research
market

for
to

availability,
and

potential

ensure

the

- 20 workers

provinces in Vietnam that project

-$5,000

can help FedEx to increase other external reports

accessibility

suitability

of

managers

with

its market share by at least

an

10% in one year.

effective demand for the

service in the new market.
-Business planning:
Build

branches

and

Build at least 1 branch in 4 Make sure that it will

- 30 workers

16

chosen provinces in 3 finish on time

agencies
Complete
Put new branches
into operating

the

- $2 million

months

- 200 workers

Train 30 higher skilled Measure the operating of

-$8 million

employees at each branch.

legal

formalities
- Human Resources Dept.:
Recruit more employees
Train employees to meet all

new branches strictly in

every month based on

requirements of FedEx

financial

reports,

customers

surveys,

managers and employees

Research market

- R&D Dept.:
Research

Select two potential

targeted market segments

sure that new segments

that can help FedEx to

would help FedEx to

different areas to know

increase market share by at

satisfy the goals

about

least 5% after one year

types

of

more

different - 10 workers

feedback.
- Ensure about the make

customers
their

in -$2,000

buying

- Keep tracking frequently

behavior, size, needs and

Apply different price
policies

to

wants.
- Marketing and Sales Dept.: - 30 workers
Apply this strategy with a -$2,000

Reaching 40% at the end

of 2017

know

about

the

changes in new segments

Base on government
statistics,

business

small amount of customers

magazine, reports from

in each new segments to

other competitors, etc.

17

know about their react

Assess and adjust if the
strategy is not effective
Create
delivery

more

types

service

of
with

different price that suitable

for new segments

18

Make survey

CONCLUSION

This report is the continuous part for my previous report that mentioned about the
plan FedEx want to invest in Vietnam market. In this report, the strategy of five-yearobjective of FedEx was made. Based on that, I create two options for FedEx in the
next 5 years. After evaluating, Option 1 with Joint ventures and Market devalopment
strategy was chosen. I designed a complete strategy with many detail information to
show the some main activities. Besides, there are some important elements such as
target of activities, timescales, and measurement methods were stated.
This report I made base on my own knowledge and research. There could be some
omission and unprofessional analysis. However, I have tried to perform my report in
the easy way to follow with my best effort. If I could have more time to read and
research about this field, I would have better report on FedEx strategy. Hope this
report is useful for beginner and it could be a handy recommendation for FedEx
future.

19

REFERNCES

BPP Professional Education, Business Strategy, 2010

Unknown (n..d) [ONLINE]. Receivable from:
http://www.managementstudyguide.com/core-competencies.htm [Accessed
November 19th, 2012]
Unknown (n.d.). [ONLINE]. Receivable from:
http://www.slideshare.net/birubiru/strategy-control-7038193 [Accessed November
19th, 2012]
Fedex, n.d. Fedex. [Online]. Available from:
http://about.van.fedex.com/mission-strategy-values [Accessed 30 November 2012].
Fedex, n.d. FedEx. [Online] . Available from:
http://about.van.fedex.com/mission-strategy-values[Accessed 30 November 2012].
Abruzzini, B., 2012. Engage Media. [Online]
Available at: http://www.world-chronicles.com/special-reports/vietnam-youngcountry-old-memories [Accessed 30 November 2012].
Ahkyar, 2011. Stude mode. [Online]
Available at: http://www.studymode.com/essays/Pest-Analysis-Vietnam-725284.html
[Accessed 30 November 2012].
Anon., 2010. Articles base. [Online]
Available at: http://www.articlesbase.com/self-help-articles/does-age-have-an-effecton-the-performance-at-workplace-2588059.html [Accessed 2 November 2012].

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