Capstone Essay Example | Topics and Well Written Essays - 2000 words - 3

Capstone - Essay Example Accordingly, the organization’s mission statement also addresses the establishment of prosperous and beneficial relationships with both internal and external groups that are associated with the activities of the business such as its employees, suppliers and other partners (FedEx Corporation 2013a). Not only does the mission statement of the company depict the organization’s commitment towards its primary stakeholders but it also provides a roadmap for the management and the employees as to how FedEx Corporation aims to conduct its business activities. As indicated by the formulation of the organization’s mission statement, the vision statement and mission statement of a company often represent messages or meanings that are one and the same while in other scenarios; the vision statement portrays a company’s aspirations or what it hopes to achieve in the future (Secord 2003). According to FedEx Corporation (2013a) the organization intends to serve its custom ers in the best manner possible by identifying the exclusive requirements of each market segment. The presence of this clause in the organization’s mission statement has been the driver of FedEx Corporation’s successful service to its global clientele which displays varying needs. For example, the initiation of takeovers in countries such as Brazil, Mexico and India in the recent years has been prompted by the organization’s dedication to â€Å"accommodate evolving customer needs† (FedEx Corporation 2012). 2. Analyze the five (5) forces of competition to determine how they impact the company. Porter’s Five Forces model operates as an effective and comprehensive framework for identifying, analyzing and evaluating the possible opportunities and threats to a company which are posed by various competitive forces within the industry (Hill and Jones 2007). On the basis of this understanding, the framework outlines five key areas of competition that play a fundamental role in the formulation and execution of strategies to effectively address the outlined threats and successfully capitalize on opportunities. Bargaining Power of Suppliers The nature of FedEx Corporation’s activities and the scale of its operations demands regular interaction with several suppliers that are located across the globe. The company’s suppliers are identified as fuel suppliers, producers of shipping materials and airplane manufacturers (Berger 2011). Berger (2011) states that dominant fuel suppliers command strong bargaining power over the organization because of the unavailability of substitutes which greatly limits the organization’s ability to engage in successful negotiations in order to lower operating expenses. Similarly, the aircraft manufacturing industry displays an oligopolistic situation with Boeing and Airbus being the primary suppliers of aircrafts which lends significant bargaining power to the manufacturers (Berger 2011). Contrary to this observation, Berger (2011) identifies that producers of shipping materials exhibit only limited bargaining power because FedEx Corporation has the option of choosing its designated suppliers amongst several companies in a market that is highly competitive. Bargaining Power of Buyers Hill and Jones (2007) comment that bargaining power of buyers is subject to change as per the changes in the external environment. In the case of FedEx Corpora