Fedex's Successful Internationalization

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4. The role of a manager and the application of key managerial functions hold a vital importance in success or failure of an organisation. Such managerial functions include planning, organizing and controlling activities within and outside of an organisation. FedEx is a good illustration of managerial functions applied well and which eventually resulted in high profits and stable market.

The managerial function of planning includes formulating strategies with a vision in mind which would help the organisation to compete in the dynamic market. FedEx founder Fred Smith recognized the growing market in Asia in 1979 and planned to expand to this territory. He focused on implementing strategies that would help FedEx become more flexible and mobile along with strategies pertaining to providing complete customer satisfaction in order to compete with other organisations in market. Some of it included launching operations in China in 1984, acquiring Tiger International Inc. for $895 million to get rights to enter in most Asian airports.

The function of organizing is to handle managerial jobs such as coordinating activities with the organisational resources at hand. FedEx implemented a series of buyouts as a part of its global strategy to expand internationally. In 2004 it rebranded all of its companies to make customers aware of its services. FedEx shifted base in 2008 to build a $150 million super-hub in Guangzhou to meet increasing customer needs. In 2006 it bought out its Chinese partner, Tanjin Datian W Group, to gain more control over its services.

The controlling managerial function includes monitoring and evaluating activities that occur rapidly in an international domain. The controlling activities in FedEx include developing a new IT system for customers. FedEx administers its own IT operations and technology keeping in account the distinction of different countries, custom authorities and individual needs. The IT system gives customers seamless clearance through customs, plus visibility of their shipments and customs procedures through a receipt. It provides customer the provision to go online from anywhere and track a shipment or make a transaction.

These initiatives help FedEx grow more as an organisation with the managerial applications used in the right way and hence being a successful organisation in Asia and internationally.

References:

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