Strategic Posture and Corporate Governance – FedEx Corporation
Strategic Posture and Corporate Governance – FedEx Corporation
FedEx Corporation was founded in the United States and now has operations all over the world. This corporation connects global economies by engaging in international trade and is responsible for more than 90 percent of the total gross domestic product of the world (Oster et al., 2017). The organization maintains the belief that through facilitating connections between individuals and the various commodities and services available, one’s quality of life can be enhanced. FedEx was founded in 1973 under the name Federal Express Company by a naval pilot who recognized the difficulty in getting packages to several locations within one or two days. The expansion of the company’s operations to more than 200 nations throughout the world has resulted in a year-over-year rise in the income of the enterprise. The corporation offers a wide variety of services, including as distribution and storage, packing, and shipping to over 220 countries worldwide via its subsidiary branches, FedEx Express. This company has grown and become competitive with industry giants like UPS and DHL because to a focus on innovation.
Based on the most recent financial reports, it appears that FedEx Company has performed quite well over the past year in terms of investment. The company’s net income for the fiscal year ending in May 2020 was $4.57 billion, up from $4.37 billion the previous year. This represents an increase of approximately 5%. FedEx’s total assets also grew during this period, reaching $62.78 billion by the end of the fiscal year (Earl, 2020). This represents an increase of nearly 9% from the previous year. Thus, it appears that FedEx has been able to grow its business and increase its profitability over the past year, making it a good investment choice for long-term growth.
In terms of market share, FedEx has performed relatively well over the past year. The company held a 14.4 percent share of the global package delivery market in 2019, which was a slight increase from its 2017 market share of 14.2 percent (“FedEx Corporation,” 2019). FedEx’s main competitors include UPS and DHL. However, FedEx has been able to maintain a strong position in the market, thanks in part to its focus on providing excellent customer service and its efficient delivery operations.
The profitability of FedEx Corporation throughout the course of the past 4 years has been rather consistent. In terms of the interplay of FedEx’s sales, the firm’s revenue has consistently climbed from 2018-2021. This trend is expected to continue. Nonetheless, between the years 2018 and 2020, their stream of revenue did neither experience a significant fall nor did it experience a significant increase (“FedEx Corporation,” 2019). That is, till 2021, when it will increase to $83,959 from its previous level of $69,217. It is possible that the implementation of lockdowns as a response to the COVID-19 outbreak was a more significant contributor to this increase in revenue. It’s possible that the lockdowns were beneficial to FedEx Corporation by inducing a shift in demand, increasing consumers’ propensity to shop online, thus, as a result, raising income for the corporation during this period of time.
Company mission and vision statements
FedEx’s mission statement is “FedEx Corporation will produce superior financial returns for its shareowners by providing high value-added logistics, transportation, and related business services through focused operating companies” (COMPARABLY, n.d) FedEx emphasizes on its website how its services aim to improve people’s quality of life by reducing their workload. The organization achieves this by serving as a trusted intermediary between its clients and the supply chain. And that’s not all. Through its CSR initiatives, FedEx shows that it is committed to more than just shipping packages; it is actively working to improve people’s lives in the communities in which it operates.
FedEx’s vision statement is “being a dynamic and progressive courier services firm that leverages of technology and impact the lives of all people.” FedEx’s actions show that the company’s main goal is to have a worldwide influence, which it achieves by reaching all corners of the globe and connecting people through a complex network of logistics.
A good mission and vision statements should reflect the company’s genuine goals and the solutions it envisions for the future. Companies need clear mission and vision statements to communicate their objectives to the public, its customers, and potential investors. The following are qualities that distinguish effective mission and vision statements from those that are less effective: (Putter, 2018).
Good Vision and Mission Statements
i. The message is clear, easy to understand, and makes use of language that is accommodating
ii. The statement outlines some very lofty objectives.
iii. The vision statement articulates positive aspirations for the future, whereas the mission articulates steady advancement toward the provision of improved services.
Bad Vision and Mission Statements
i. The message is difficult to understand because it lacks specificity, is very general, and contains simple grammatical structures.
ii. The message is lengthy and coated with wordiness, which makes it ambiguous not just to outsiders but also, at times, to insiders.
iii. The message is overused and gives off a negative impression because it portrays the company as the lone leading provider that excels over other businesses that offer comparable services.
FedEx Board of Directors
1. Marvin R. Ellison – He was appointed to the board in 2019. He is a member of the Audit and Finance Committee. He is an external member (FedEx, n.d)
2. Stephen E. Gorman – He was appointed to the board in 2020. His role is to provide oversight and guidance to the company. He serves on the Governance and Nominating Committee and the Audit Committee.
3. Susan Patricia Griffith – She was appointed to the board in 2018. Her role is to provide oversight and guidance to the company. She serves as a member of Information Technology Oversight and Nominating & Governance Committees. She’s an external member.
4. Kimberly A. Jabal – She was appointed to the board in 2013. She brings a wealth of experience in the areas of finance, accounting, and auditing to the board, and her appointment strengthens the board’s ability to provide oversight of the company’s financial affairs. She is an external member.
5. Nancy A. Norton – She was appointed to the board in 2004. She is responsible for the audit committee and the nominating and governance committee. She is an external member of the board.
6. Fred Perpall – He was appointed in May 2020. His role is to provide advice and oversight to the company on strategic matters. He is an external member of the board.
7. Joshua Cooper Ramo – He was appointed in 2020. His role is to provide strategic advice and counsel to the company on a range of issues, including technology, global expansion, and sustainability. He is an external member of the board.
8. Susan C. Schwab – She was appointed in 2018. Her role is to provide oversight and guidance to the company. She is an external member of the board.
9. Frederick W. Smith – He is the Executive Chairman and Chief Executive Officer of FedEx Corporation. He was appointed to the board in May 1998. His role is to oversee the company’s operations and strategic direction. He is an internal member of the board.
10. David P. Steiner – He was appointed to the position in May 2018. He is responsible for providing oversight and guidance to the company on matters related to its business operations, strategy, and financial performance. He is an external member of the board.
11. Rajesh Subramaniam – He was appointed to the position in 2020. He is the president and CEO of FedEx Express, the largest unit of FedEx Corporation. He is responsible for the company’s global air express transportation, e-commerce and shipping services. He is an internal member of the board.
12. Jim Vena – He was appointed to the board in May of 2020. His role is to provide advice and guidance on matters relating to the company’s operations and strategy. He is an external member of the board.
13. Paul S. Walsh – He was appointed to this position in 2018. He is responsible for overseeing the company’s operations and strategic direction. He is an external member of the board.
COMPARABLY. (n.d.). Fedex Mission, Vision & Values | comparably. Retrieved October 28, 2022, from
Earl, A. (2020, February 1). Fedex hopes its 3 Big Investments will pay off. The Motley Fool. Retrieved October 28, 2022, from
FedEx Corporation. (2019). 2019 Annual Report. Washington, D.C.: United States Securities and Exchange Commission.
FedEx. (n.d.). Home > ESG > board of directors. Retrieved October 28, 2022, from
Placek, M. (2022, September 23). Topic: Fedex corporation. Statista. Retrieved October 28, 2022, from
Oster, C. V., Rubin, B. M., & Strong, J. S. (2017). Economic impacts of transportation investments: the case of Federal Express. Transportation Journal, 37(2), 34-44.
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