Company Overview

FedEx Corporation is synonymous with overnight delivery, a company that

was pioneered in the 1970s and still dominates the courier industry
nearly three decades later. Within the last three decades, the business
has been restructured for the 21st century and now consists of six major
operating segments: FedEx Express, FedEx Ground, FedEx Freight, FedEx
Logistics, FedEx Office and FedEx Services.

In 1965, a Yale University undergraduate, Frederick W. Smith wrote a

term paper that described the logistics problems companies were
facing and proposed a system for managing urgent deliveries. As a
result, Federal Express Corporation was established in 1971 in Little
Rock, Arkansas. And in 1994, Federal Express was officially renamed
FedEx Corporation.

FedEx Corporation is tasked with a mission to:

 produce superior financial returns for its shareowners by providing high value-added logistics,
transportation, and related business services through focused operating companies.
 meet Customer requirements in the highest quality manner appropriate to each market
segment served.
 strive to develop mutually rewarding relationships with its team members, partners, and
suppliers.
 consider Safety first in all operations.
 conduct corporate activities to the highest ethical and professional standards.
Drivers of Change – Technological in
relation to FedEx in Nigeria

Driving factors Significance Impact Average% overall % Consumer

time-line industry Rating industry Rating

Federal Express was one of the first express delivery

companies to recognize the benefits of technology. As far
back as 1978, just five years after its start-up, the company
opened the first automated customer service centre, which
has had a positive impact on the growth of the company,
even from the perspective of employees.
Mobile internet and
cloud technology  Ongoing 34   16
A recent study of FedEx operations in Nigeria critically
examined the correlation between technology infusion,
employee performance, and business productivity. Results
showed that investment in technology has had a positive
impact on the performance of employees and improved the
company's productivity.

FedEx Delivery Manager is an interactive solution for delivery

options and notifications. It notifies recipients of pending
deliveries via email and allows them to proactively manage
the final delivery.

2019 -
Internet of Things FedEx Delivery Manager became available in Nigeria in 2019  14 6
ongoing 
and offers convenient delivery options. Recipients in Nigeria
will receive a notification by email informing them that their
package has been picked up by FedEx, they can either wait
for the scheduled delivery or change the delivery information
in a few simple steps through the secure FedEx website.
Business and Operating Model
• FedEx provides a broad portfolio of transportation,
e-commerce, and integrated business solutions
through operating companies competing
collectively, operating collaboratively, and
innovating digitally under the FedEx brand.

• FedEx’s business model is centred around creating

high value-added package delivery to more than
220 countries. The model is encapsulated in one
sentence, “When it absolutely, positively has to be
there overnight”.

• FedEx relies on its highly efficient operating

systems, which are suitable for aircraft. The model
is such that FedEx planes do not fly directly but
pass through one of the strategically located FedEx
hubs. As a result, packages are immediately placed
on departing aircraft and this operating model
reduces delivery times.
Business Segments and Services
FedEx Express invented express shipping and remains the world leader in the industry, providing fast, reliable, and on-
time deliveries to more than 220 countries and territories, connecting markets that account for over 99% of the world's
gross domestic product.

FedEx Ground offers affordable daily service to any business address in the United States and Canada, as well as home
delivery to 100% of US residences through its FedEx Home Delivery Service.

FedEx Freight is a leading North American provider of LTL services across all lengths to businesses and individuals.

FedEx Logistics offers a full range of supply chain solutions, specialized transportation, cross-border e-commerce
technology services, customs brokerage, and trade management tools and data.

FedEx Office offers reliable service and access to printing and shipping. Services include digital printing and copying,
professional finishing, signage, computer rentals and business printing solutions.

FedEx Services provides sales, marketing, information technology, communications, customer service, technical support,
billing and collections, and certain administrative functions that support our transportation segments.
Drivers of Change
• Businesses today operate in a diverse
environment where change is pervasive. A
driver of change is an internal or external
pressure that shapes change in an
organization. It involves a change in strategy,
plans, projects, products, services, and
operations.
• A WEC survey of senior industry executives
identified the main drivers of change in
industries: demographics, socioeconomics,
and technology.
• Some drivers of change will have a strong
impact on specific sectors.
• This presentation will discuss drivers relating
to FedEx.
Drivers of Change – Demographic &
Socioeconomic

• The term demographic refers to the

statistical characteristics of human
populations used especially to identify
markets. Demographic characteristics
include age, gender, ethnicity, family status,
education level, income and occupation.
These are measurable characteristics.

• The term socioeconomic refers to the

interaction between the social and
economic habits of a group of people.
Socioeconomic factors include occupation,
education, income, wealth and where
someone lives.
Drivers of Change – Demographic &
Socioeconomic factors in relation to FedEx in Nigeria
Average% overall % Consumer
Driving factors Significance Impact time-line
industry Rating industry Rating

The impact of COVID-19 has caused local, state, and

national governments around the world to issue work
and travel restrictions daily which has impacted
FedEx's ability to meet its high standards of service.

Changing nature of As a result, FedEx decided to suspend its money-back  March 2020 -
guarantee for all FedEx services within the Middle 44   44
work  ongoing
East, Indian Subcontinent and Africa, of which Nigeria
is a part.

Also, the impact of covid 19 has caused an added 3

days to the delivery lead-time of FedEx services
between Nigeria and other countries worldwide

An escalation of geopolitical events can lead to

outright wars, violence, political uncertainty, trade
wars, tariffs, sanctions and international unrest, which
may threaten and disrupt global trade and supply
chains.

Geopolitical Volatility  According to the World Economic Forum report of 2017 - ongoing   21 21 
2018, the escalation of geopolitical risks was one of
the most pronounced trends of 2017.
In recent years, Nigeria has become a fully failed
state of critical geopolitical concern which has
greatly affected the expansion of businesses in
the country
Drivers of Change – Technological

• Technological means
relating to or associated
with technology.

• Technology is the
application of practical
sciences to industry or
commerce.
Drivers of Change – Technological in
relation to FedEx in Nigeria
Impact Average% overall % Consumer
Driving factors Significance
time-line industry Rating industry Rating
Federal Express was among the first express transportation
companies to realize the benefits of technology. As early as
1978, just five years after it began operations, the company
pioneered the first automated customer service centre which
has been beneficial to business growth, even from the
perspective of employees.
Mobile internet and
A recent study of FedEx operation in Nigeria critically  Ongoing 34   34
cloud technology
examined the correlation between technology infusion,
employee performance and the organization’s productivity.

Investment in technology has a positive impact on FedEx

employees’ performance and improved the productivity of
the firm.

FedEx Delivery Manager is an interactive delivery options and

notifications solution. It notifies recipients of pending
deliveries via email and allows them to proactively customize
final delivery

FedEx delivery manager became available in Nigeria in 2019 2019 -

Internet of Things  14 14 
ongoing 
Recipients in Nigeria will receive a notification by email
informing them that their package has been picked up
by FedEx, they can either wait for their delivery as
planned, or can change their delivery information in a
few simple steps via our secure website.