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COMPANY BACKGROUND

FedEx Corporation

To understand the corporate level strategy of FedEx it is necessary to first know what industries they currently compete in, as well as where they stand within those industries. Currently FedEx is made up of six independent business units: FedEx Express, FedEx Ground, FedEx Freight, FedEx Custom Critical, FedEx Trade Networks, and FedEx Services, each compete in different sectors of the transportation industry in order to tailor the entire FedEx service to best fit each customers needs. Its parent company is the FedEx Corporation, which offers all of the strategic leadership, as well as the financial accountability for all of the business units. The business model that is followed at FedEx Corporation is Operate independently, compete collectively. Figure 1 lays out the decision making tree at FedEx Corporation.

Fred Smith FedEx President, Chairman, CEO Fred Smith, CEO, Chairman

T. Michael Glenn, VP Corporate Communications

Alan B. Graf, CFO

Robert Carter, Chief Information Officer

Kenneth Masterson, General Counsel Secretary

The board of Directors sits in conjunction with the vice presidents and is responsible for an array of activities such as auditing, executive compensation, information technology oversight, and governance. Although FedEx Corporation is a the parent company of the six independent business units, FedEx Corporation offers strategic leadership at a corporate level and the operate on their own and are therefore solely responsible for their decisions and ultimate success. The top two performing companies, as well as the most widely known FedEx companies are FedEx Express and FedEx Ground.

COMPANY BACKGROUND

B. FedEx Express
The first of the six independent units is FedEx Express. The president and CEO, David J. Bronczek heads this unit. FedEx Express is the worlds largest express transportation firm. It has three subsections of U.S., International, and Freight. Offering guaranteed service to 120 different countries for packages from 1- 2,200 lbs. FedEx Express accounts for over one-half of FedExs revenue.

C. FedEx Ground
FedEx Ground is the next business unit, headed up by Daniel J. Sullivan, president and CEO. FedEx Ground guarantees delivery to every business address in the U.S., Canada, and Puerto Rico. It currently accounts for a little over $3 billion in revenue.

The History of FedEx The idea for FedEx came from an assignment Frederick Smith wrote while an undergraduate at Yale about how the mail delivery companies of the day were inefficiently using the passenger air routes for package delivery. This idea would launch a company that was the first in American history to reach $1 billion in less than 10 years without a merger or takeover.

Conception Frederick Smith would not have the opportunity to test his theories until 1971, when he bought stake in the Arkansas Aviation Sales. However, he found the delivery system inefficient and set about trying to create a model for more financially feasible delivery. He put $4 million of his own money and raised $91 million of venture capital into creating a new company. His goal was to create a company that could provide a nationwide express delivery system that could get packages delivered efficiently.

Founding Frederick Smith came up with the name Federal Express because of its connotations with serving the entire country and its potential for name recognition. He incorporated his new company and it began delivering packages in April 1973. The company began with just 14

COMPANY BACKGROUND

planes flying out of Memphis and serving 25 American cities. Memphis was chosen because of its central location and minimal closures of the airport for bad weather. In July 1975, the company turned its first profit.

Growth FedEx grew rapidly in the late 1970s and early 1980s. In 1977, the federal government deregulated the airline industry, which allowed FedEx to use bigger planes and increase efficiency. The company switched to a single computer system, called COSMOS, in 1979 that allowed it to track various aspects of the company. Profits topped $20 million in 1979.

Competition FedEx did not back away from competition. In 1981, it challenged the United States Postal Service by offering to ship overnight letters. In the mid-1980s, FedEx started to go global. It purchased Gelco Express, a company that had a presence in 84 countries. It was the first of several purchases that FedEx made to expand its dominance overseas. Significance FedEx revolutionized the way that package delivery was thought of in the business world. It replaced the model of using the same routes as passenger aircraft and developed economically feasible methods of guaranteeing overnight package delivery. As of 2009, FedEx works in more than 200 countries providing next-day service.

Now that FedEx has been organized into many operating units, each unit has its very own logo color. Yet, the Fed in all types of FedEx popular logo design remains purple. Following are the color variations in different FedEx logos representing different operating units: FedEx Express Logo color: Orange FedEx Freight Logo color: Red FedEx Ground Logo color: Green FedEx Kinkos Logo color: Blue FedEx Trade Networks Logo Color: Yellow FedEx Services Logo color: Grey, this is also the color of the Ex in its corporate logo.

COMPANY BACKGROUND

The famous FedEx Logo is a quality example of sheer ubiquity and inspiring symbology. The FedEx logo has won many distinctive awards and is often regarded as the best creative design ever.

PARTNERSHIP LEUCO Tool Corp is proud to announce our partnership with FedEx.

FedEx is one of the global market Leaders in Logistics. The benefits and added values for you are countless, but wed like to name a few: FedEx has been in the logistics business for 30 years. They guarantee fast, safe, and confidental shipment to keep you one step ahead. By using the FedEx Return Manager, we are able to offer you an easy paperless system to return your tooling systems to LEUCO for service or replacement. We transmit to you the FedEx return shipping label via E-Mail. All you have to do is print out the label and wait for the pickup. FedEx InSight automaticlly notifies you by E-Mail when your order is shipped or critical events delay the shipping process. To take part in FedEx InSight contact your LEUCO salesman. FedEx provided us the technology to offer you the ToolTracker. Just type in the tracking number and you will exactly know where your shipment of LEUCO tools is located at the moment. For the tracking number, take part in FedEx InSight or contact your LEUCO salesman. To use the ToolTracker click here.

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COMPANY BACKGROUND