Swot Analysis Fed Ex Indianapolis Hub 2012

market ranking schema fall School of telephone line MBA program Dr. Michael D. Wiese Fishers Campus Proposal to Management of Market Audit SWOT / environmental Analysis By Jeffrey K. Lockhart October 02, 2012 To Another spread out letter to the management of Federal expect Corporation (FedEx Corp) Ladies and Gentlemen, I am lively involved in an MBA trade class at the Falls School of Business Anderson University.I have been asked, as part of a merchandising audit, to assist in building a marketing plan that analyzes a tidy sum of the Situation Analysis of such plan, for a particular strategical Business Unit (SBU), or actual work unit, at my place of employment. The process for building a marketing plan starts with a elaborated topographic point analysis of the market and seam. The primary purpose of a situation analysis is to uncover key finishance issues that usually go unmarked in twenty-four hour period-to-day business operations. The output of the situation a nalysis is employ to build the marketing strategy.To accomplish this I will discuss the Strengths, Weaknesses, Opportunities and Threats (SWOT) / Environmental Analysis, with respect to current market forces, the businesss competitive position, and its current performance for the identified SBU described below. I will do this by leaninging the internal strengths and weaknesses that impact the SBUs ability to set FedEx customers, constituency as well, as directly meet the FedEx mission. Also, I will list more or slight of the external/environmental factors that are impacting/shaping the ability of the unit to serve its customers, constituency as well, as meet the FedEx mission.Finally, as part of the SWOT I will discuss the opportunities and threats that as managers you should be aware of and for which you will deprivation to manage. Identification of the Specific Business Unit (SBU) FedEx Express Indianapolis Hub Sec. 9 Dallas / Ft. Worth ramp (DFW) SWOT Analysis FedEx Expr ess Indianapolis Hub Sec. 9 Dallas / Ft. Worth ramp (DFW) Internal Strengths Internal Weaknesses Recognized as manufacturing Global Market Leader/ largest transportation gild providing fast tried and true service for more than 3. million package transportments all(prenominal) business day 10m + for each one day from the DFW ramp alone. (I) Limited weight bulk discourse ability with the DFW SBU only having 35 employees and 16 slides, and four hours in which to perform each nights mixed bag. (I) Leading-edge information and engineering technology (the Matrix). incumbent package tracking system is state of the art. This provides tremendous advantage for the respective(a) ramps in the Indy hub. (I) Reliability on other areas of the hub to perform their bloodline in a satisfactory manner.Non-con drivers making successionly deliveries of freight to the sort process. (I) Worlds largest privately owned pass along of pack airplanes (660 jets). There are currently 90 gate s for planes coming in and out of the Indy hub DFW manages 2 of them each sort. (I) youthful in-bound planes open fire ca physical exertion the entire sort to be delayed resulting in late out-bound flights to the freights final destination. (I) Boeing 777s now fly into the Indy hub lowering emissions, with less fuel consumption, this aircraft reduces the environmental and also noise impact of entire operations. I) be and frequency of asset replacement / investment is in truth expensive. Keeping a fleet of 660 aircraft maintained as well, the constant new purchase of aircraft is a drain on company capital. (I) Indianapolis is the second largest distribution hub in the company only behind home-base Memphis, TN. (I) Plane strikes by tug drivers can be very lively incidences for the company. The DFW ramp had no aircraft strikes by its drivers during 2011 and no(prenominal) year to date 2012. (I) FedEx Invented Express distribution. The Indy hub continues to grow due to this attrib ute of FedEx. I) The cost in penalties for not meeting required express shipping deadlines for each package can add up to a significant replete(p) annual dollar cost. (I) Providing rapid, reliable, time-definite oral communication to more than 220 countries and territories the DFW ramp participates in this. (I) guest Service is provided by significant training of each DFW ramp proletarian in the correct processing/application of their job. (I) Below is a list of External Environmental Factors affecting the FedEx marketing strategy include some(prenominal) those that would be considered strengths as well as those considered to affect the company in a negative manner.External Environmental Factors Strengths External Environmental Factors Weaknesses FedEx has contracted long-run with the US Postal Service to deliver all of its Global Express Guaranteed international shipping freight. It features 1-3 business days to more than 190 countries (Money-back guarantee). (E) Business is subject to major economic downturns. In the 2000 downturn many companies flavor for a way to save money stopped shipping, or move to cheaper methods such as surface shipping. This resulted in reduced routes and limited lay-offs. E) FedEx now connects markets that comprise more than 90% of the worlds gross home(prenominal) product within one to three business days. (E) A novel survey found that 84% of satisfied customers will jump ship for a better deal if the opportunity arises. With the marketplace becoming more and more commoditized, customer retention has become a critical part of business strategy. (E) FedEx measures customer service and loyalty via two separate indexes a 1% increase in the Loyalty Index has been found to be expenditure approximately $100mm of additional annual business. E) Inclement weather is definitely a negative environmental factor that can affect timely delivery of FedEx express delivery. Winter snows and summer thunder storms definitely present challenges to the various FedEx markets. FedEx Express is named among the top five of the Worlds Best international Workplaces by Great Places to Work Institute. (E) The TSA adopted new rules enhancing many of the surety requirements for air cargo on both passenger and all-cargo aircraft. It is reasonably contingent that these new rules, or other future security requirements for air cargo carriers, could impose material costs on FedEx. FedEx Express is named Super Eco-Airline of the family 2012 by Air Transport World. (E) The FAAs regulatory authority relates in the beginning to operational aspects of air transportation, including aircraft standards as well, personnel and ground facilities, which may from time to time affect the ability of FedEx to operate its aircraft in the most high-octane manner. FedEx Corp ranks ninth in the business Super-brands list and is the only company representing the transportation industry in the top 20, making it a attractor in its field. E) FedEx Express participates in the Civil Reserve Air Fleet (CRAF) program. Under this program, the U. S. Department of Defense may requisition for military practice certain of FedEx Expresss wide-bodied aircraft in the event of a declared need, including a national emergency. Opportunities and Threats are part of the SWOT analysis that moldiness be examined by managers involved in the development of a marketing plan/strategy include the following.. Opportunities Threats The DFW ramp has the opportunity to grow its portion of the Indy hub market share if its manpower is increased.It is only limited by itself. If the volume will support more staff it will be allowed. ad hominem injuries in the workplace can affect the DFW ramps boilersuit performance ratings. Thus, limiting the advancement of its managers. The DFW ramp can control its freight misflows by continuing the training of its personnel. This will result in amend performance ratings for the ramp and additional opportunit ies for its managers. Conflicts between personnel can negatively affect, and ultimately change the mojo of the ramps team performance.Teamwork is a very important attribute, necessary for the ramp to meet its volumes and timelines. The DFW ramp has the opportunity every(prenominal) night to help solidify the loyalty of 10m customers to FedEx. If it does not do its job correctly the DFW ramp has the opportunity to give 10m customers a reason to use UPS for their next shipment of freight. Each DFW ramp staff has the opportunity to neutralize the various FedEx competitors by performing their job with excellence. Unionization is always a potential threat to the current positive work environment.This would not be a good thing for the company. By doing their job correctly, identifying suspicious packages each of the DFW ramp staff has the opportunity to act in place of a DEA or BATF agent. Drugs trafficking and potential terrorism are definite threats to FedEx with each sort that takes place. Theft prevention can enhance FedExs reputation in the market place. Each DFW ramp staff has the opportunity to act as eyes and ears against thievery of freight being shipped through their area. Individual theft of various pieces of freight can hurt FedExs reputation in the market place.