Business Scenanario on Parrent Company FedEx

Business Scenanario on Parrent Company FedEx

Pacific Express in Kava

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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, last accessed on August 10, 2009

2009, Our Customers, FedEx Multimedia Center, last accessed on August 10, 2009

Problem Formulation, Principia Cybernetica Web, last accessed on August 10, 2009

FedEx Corporation Code of Business Conduct and Ethics, 2003-2007

Business Scenanario on Parrent Company FedEx

Business Scenanario on Parrent Company FedEx

The matter of manpower recruitment and training of the new staff members remains a pivotal component in FedEx’s expansionist strategy within Kava. This chapter is focused on revealing the available courses of action in achieving the personnel desiderate and the selection of the most adequate solution with the aid of the cost-benefit analysis as a decision-making technique. The cost-benefit analysis is generally used with financial applications, but it can often be simplified in order to help the individual in making a decision. With the aid of this tool, managers are able to pin point and assess the limitations and advantages pegged to each available solution. The final decision is retrieved through the weighing of the importance of the costs and the benefits associated with each alternative course of action (Mind Tools, 2009).

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The available solutions are briefly summarized below:

(1) Sending employment demand statements to the employment agency in Kava and waiting for the interested individuals to send in their resumes

(2) Conducting operations similar to head-hunting, but at a smaller scale; this process implies that the managers at PacEx assess the individuals currently employed within the delivery industry and approach them with the intent of hiring them

(3) Selecting employees through marketing campaigns created and issued by the PacEx under the aegis of FedEx.

Cost-Benefit Analysis

Alternative 1: Recruitment through the Kava employment agency

Costs: it is possible that more people send their resumes as this type of recruitment tends to address the unemployed, rather than the individuals directly interested in a job or an industry (delivery services in this case); the selection process will be tedious and inefficient and it will also imply increased levels of resource consumption

Benefits: minimal consumption of financial resources; the recruitment process in itself is simple

Alternative 2: Head-hunting

Costs: it is possible that PacEx be accused of unfriendly competition; the process of head-hunting is time and resource consuming and the company does not currently afford to lose more time

Benefits: despite the longer time required by the selection stage, the process of head-hunting is extremely efficient as the recruitment process is significantly shorter — once the desired individuals have been observed and selected, the recruitment process is limited to the acceptance of the spotted individual; these employees have the advantage of previous expertise within the field of delivery services, meaning that it will be significantly easier to work with them, and also that the costs associated with training programs are reduced

Alternative 3: Selection through marketing campaigns

Costs: increased financial costs with the development and promotion of the marketing campaign; increased time consumption for the period it takes for the campaign to be developed; increased necessity to offer training programs

Benefits: the prospective employees are presented with the features, requirements and benefits of the job, meaning as such that only those interested and, possibly, with previous expertise will sign on for the interview; the informative campaign will transmit the organizational values and the prospective employees will know what to expect; upon airing of the advertisements, it is highly probable that responses will not linger

Based on the analysis of the benefits and limitations of each of the available courses of action, the solution with the highest rate of expected success is the third one. In addition to the fact that it reveals the strongest benefits, it also has the advantage that most of its limitations can be easily overcome. In this order of ideas, both time and resource consumption can be reduced by using the previous FedEx campaigns. This strategy does not imply a lack of creativity and originality, but it is based on several advantages, as follows:

Along its existence, parent company Federal Express has created numerous marketing campaigns which have managed to attract both employees as well as customers — this expertise is vital for the success of the Kava-based subsidiary, Pacific Express

FedEx still possesses its previous campaigns and can readjust one to suit the recruitment requirements of PacEx

The endeavor would materialize in the benefits of reduced time in creating a new campaign, combined with the decade long expertise of FedEx

The campaign would be modified and adjusted to the current needs of the Kava-based subsidiary, meaning as such that the advertisements would be personalized in such a manner that they attract personnel in the Kava offices

Finally, there is the limitation of increased resource consumption pegged to the training necessities. In this light of events, lower costs with training would only be achieved for the second alternative, which is however not the most viable solution. Additionally, the company is already prepared to train its new workforce and the fact that the manpower recruited through marketing campaigns requires training does not in its essence represent a limitation

This solution seems the most viable one for the time being as it combines the benefits of rapid applicability as well as the possibly to rely on corporate experience. The cost-benefit analysis has revealed this through the identification of the gains and inconveniences pegged to each alternative solution in the meaning of making them more obvious and simplifying the decision making process.


2009, Cost / Benefit Analysis, Mind Tools, last accessed on August 17, 2009

2009, Decision Making, Management Help, last accessed on August 17, 2009

2009, Website of the FedEx Corporation, / last accessed on August 17, 2009

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