Business Scenanario on Parrent Company FedEx
Pacific Express in Kava
Setting the basis for the new Federal Express office in Kava is a more challenging task than initially assumed. For once, there is a growing need for a more organized and well structured logistics system — this element is pivotal in any economic entity, but even more so with PacEx (Pacific Express), since delivering packages and general logistics represents the main focus of its business operations. Then, another issue is given by the necessity to train people, which is sadly expected to generate some shortages. The desire to train the indigenous population and introduce it to the concepts of organizational culture, as forwarded in the western parts of the globe, represents, in its essence, a main reason as to why the local government has asked FedEx to open a subsidiary within their island. Aside this however, the delivery organization has chosen to operate in the region due to the long-term economic benefits for both parties (Kava and FedEx).
The current aim of PacEx is that of expanding its operations beyond its original contract with Star Semiconductors Inc. Actual strategies to achieving this desiderate include numerous marketing efforts which promote the services offered by the company. For instance, it is necessary to create a marketing campaign aiming at increasing the customer palette for the FedEx services in Kava. The efforts would have the expected outcome of increasing the customer base, the popularity of the organization and the demand for its services. The marketing campaign — the main tool of the efforts to expand the PacEx operations in Kava, would be constructed on the following principles:
it would promote the values of the organization: people, service, innovation, responsibility and loyalty (FedEx Website, 2009)
it would promote the high quality of the services offered it would include testimonies of satisfied customers; this segment of the campaign would strive to focus on the diversity of the FedEx customers, sending the message that the company can help regardless of the customers’ field of action or interest (FedEx Multimedia Center, 2009)
it would be promoted on various channels, such as television, radio and internet advertisements, but also communications with the target market through interviews in televised programs and specialized journals and magazines in the local media (Canwell, 1998)
Once the logistics and marketing parts of the business are handled, it is necessary to address the matter of the human resources. This constitutes the pillar of not just the expansion desire, but also the business success in its own. As it was previously mentioned however, the activity of working with the local employees is expected to raise some challenges. A first of these limitations is given by the local history of Kava in the meaning that the island only regained its independence three years ago. This translates into the fact that democracy is a fairly estranged concept, the population is generally used to being subjected and the employee in Kava will reveal several differences from the staff members in the western societies. With the use of problem formulation techniques and tools, it becomes obvious that the issue of employee training is a pivotal one. It is as such necessary to assess it in light of the negative consequences it might generate, the resources available to the company so that it reduces the threat of the problem and finally, the criteria which need to be satisfied in order to state that the problem has been resolved (Principia Cybernetica Web).
a) Problem components: different views manifested primarily in cultural barriers (such as language barriers); lack of experience in the field of delivery services; the role of women in the workplace is still decreased and it has only improved recently as a result of the epidemics and the necessity for more labor force; gender discrimination could raise problems and it must be limited, if not at all eliminated. Bribery is also a growing problem in the region and the efforts of the delivery subsidiary could be easily compromised — these problem components also represent the reasons as to why PacEx would find it difficult to acquire and adequately train its manpower. The existence and high relevance of these issues translates into a necessity to align the FedEx culture to the local views and find a common ground that will lead to the development of both parties and sustain them in reaching their pre-established desiderates. In terms of the local employees, it is necessary to include them in the company’s culture of “integrity and reliability” (FedEx Corporation Code of Business Conduct and Ethics, 2003-2007)
b) Resources available: financial resources received from the parent company, specialized assistance received from FedEx and the potential collaboration of local specialists who will make the transition easier and the integration process more efficient.
c) Criteria to be satisfied: increased communication and cooperation abilities; high employee performances; employee and organization satisfaction with the job and the outcome.
The environment in which any organization operates is an important part of the business analysis, meaning then that it is important to assess the impact of organizational actions upon the various categories of stakeholders (Werther and Chandler, 2005). In terms of the local employees, these will on the one hand be forced to align to new organizational values, but on the other hand, they will be on the path to professional formation and will be better able to provide for their families. In terms of the authorities, these will have set the basis for fruitful commercial relations with the American organization, which could bring several future gains.
Canwell, D., 1998, Marketing Campaigns, Cengage Learning EMEA
Wherther, W.B., Chandler, D., 2005, Strategic Corporate Social Responsibility: Stakeholders in a Global Environment, SAGE
2009, Our Company — Mission, Strategy, Values, FedEx Website, http://about.FedEx.designcdt.com/our_company/company_information/mission_statement last accessed on August 10, 2009
2009, Our Customers, FedEx Multimedia Center, http://mediacenter.FedEx.designcdt.com/video/our_customers last accessed on August 10, 2009
Problem Formulation, Principia Cybernetica Web, http://pespmc1.vub.ac.be/ASC/PROBLEM-for.html last accessed on August 10, 2009
FedEx Corporation Code of Business Conduct and Ethics, 2003-2007