On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Leadership & Managing People
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Case Study Description of On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr.
Alan B. Graf, Jr., is executive vice-president and chief financial officer at FedEx Corp. FedEx Corp. is comprised of multiple operating companies, with the core companies being FedEx Express, FedEx Ground, FedEx Freight, and FedEx Kinko's. Collectively, FedEx provides transportation, e-commerce, and business services globally. The Memphis, Tennessee-based corporation moves more than 5.5 million packages daily, serving more than 215 countries and territories. The corporation is comprised of more than 250,000 employees and contractors worldwide and maintains approximately 663 aircraft and over 71,000 ground vehicles. Graf joined FedEx Express, the predecessor to FedEx Corp., in 1980 as a senior financial analyst and has held a variety of management positions in the Finance division during his tenure with FedEx. His current responsibilities involve oversight of corporate global financial functions, including financial planning, treasury, tax, accounting and controls, internal audit, and corporate development. Graf is responsible for the financial activities of the corporation's core operating companies and also serves on FedEx Corp.'s Executive Committee, which is charged with the planning and implementation of FedEx Corp.'s strategic business activities. A native of Indiana, Graf graduated from the Kelley School of Business, Indiana University, with both a bachelor's and Master of Business Administration degree. He remains active with the Kelley School of Business, where he serves on the Dean's Advisory Council and was honored with membership in the Academy of Alumni Fellows in 2004. Graf holds three board memberships that include NIKE, Inc., Kimball International, Inc., and Mid-America Apartment Communities, Inc. He also serves on the Advisory Board for the University of Memphis Tiger Cubs.
Swot Analysis of "On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr." written by Catherine M. Dalton includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Fedex Graf facing as an external strategic factors. Some of the topics covered in On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. case study are - Strategic Management Strategies, Leadership and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. casestudy better are - – increasing household debt because of falling income levels, cloud computing is disrupting traditional business models, wage bills are increasing, there is increasing trade war between United States & China, technology disruption, digital marketing is dominated by two big players Facebook and Google, competitive advantages are harder to sustain because of technology dispersion,
talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, etc
Introduction to SWOT Analysis of On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr.
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Fedex Graf, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Fedex Graf operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. can be done for the following purposes –
1. Strategic planning using facts provided in On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. case study
2. Improving business portfolio management of Fedex Graf
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Fedex Graf
Strengths On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Fedex Graf in On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. Harvard Business Review case study are -
Innovation driven organization
– Fedex Graf is one of the most innovative firm in sector. Manager in On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Highly skilled collaborators
– Fedex Graf has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Fedex Graf
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Fedex Graf does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Leadership & Managing People industry
– On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. firm has clearly differentiated products in the market place. This has enabled Fedex Graf to fetch slight price premium compare to the competitors in the Leadership & Managing People industry. The sustainable margins have also helped Fedex Graf to invest into research and development (R&D) and innovation.
High brand equity
– Fedex Graf has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Fedex Graf to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Effective Research and Development (R&D)
– Fedex Graf has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Fedex Graf is present in almost all the verticals within the industry. This has provided firm in On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Learning organization
- Fedex Graf is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Fedex Graf is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Fedex Graf is one of the leading recruiters in the industry. Managers in the On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Digital Transformation in Leadership & Managing People segment
- digital transformation varies from industry to industry. For Fedex Graf digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Fedex Graf has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Successful track record of launching new products
– Fedex Graf has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Fedex Graf has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Weaknesses On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. are -
No frontier risks strategy
– After analyzing the HBR case study On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr., it seems that company is thinking about the frontier risks that can impact Leadership & Managing People strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Fedex Graf has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Fedex Graf is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of Fedex Graf is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Fedex Graf needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Fedex Graf to focus more on services rather than just following the product oriented approach.
High cash cycle compare to competitors
Fedex Graf has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Products dominated business model
– Even though Fedex Graf has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. should strive to include more intangible value offerings along with its core products and services.
High bargaining power of channel partners
– Because of the regulatory requirements, Catherine M. Dalton suggests that, Fedex Graf is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Fedex Graf supply chain. Even after few cautionary changes mentioned in the HBR case study - On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr., it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Fedex Graf vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr., in the dynamic environment Fedex Graf has struggled to respond to the nimble upstart competition. Fedex Graf has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Slow decision making process
– As mentioned earlier in the report, Fedex Graf has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Fedex Graf even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Skills based hiring
– The stress on hiring functional specialists at Fedex Graf has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Opportunities On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. are -
Better consumer reach
– The expansion of the 5G network will help Fedex Graf to increase its market reach. Fedex Graf will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Using analytics as competitive advantage
– Fedex Graf has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Fedex Graf to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Fedex Graf is facing challenges because of the dominance of functional experts in the organization. On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Developing new processes and practices
– Fedex Graf can develop new processes and procedures in Leadership & Managing People industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Creating value in data economy
– The success of analytics program of Fedex Graf has opened avenues for new revenue streams for the organization in the industry. This can help Fedex Graf to build a more holistic ecosystem as suggested in the On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. case study. Fedex Graf can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Fedex Graf can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr., to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Building a culture of innovation
– managers at Fedex Graf can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Leadership & Managing People segment.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Fedex Graf can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Leadership & Managing People industry, but it has also influenced the consumer preferences. Fedex Graf can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Manufacturing automation
– Fedex Graf can use the latest technology developments to improve its manufacturing and designing process in Leadership & Managing People segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Fedex Graf can use these opportunities to build new business models that can help the communities that Fedex Graf operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, Fedex Graf can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Leadership & Managing People industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Fedex Graf can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Fedex Graf can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Threats On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. are -
Environmental challenges
– Fedex Graf needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Fedex Graf can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Consumer confidence and its impact on Fedex Graf demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
High dependence on third party suppliers
– Fedex Graf high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Fedex Graf can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. .
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr., Fedex Graf may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Fedex Graf business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Leadership & Managing People field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Fedex Graf can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Fedex Graf will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Shortening product life cycle
– it is one of the major threat that Fedex Graf is facing in Leadership & Managing People sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Increasing wage structure of Fedex Graf
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Fedex Graf.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Fedex Graf in the Leadership & Managing People industry. The Leadership & Managing People industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Fedex Graf in the Leadership & Managing People sector and impact the bottomline of the organization.
Weighted SWOT Analysis of On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Fedex Graf needs to make to build a sustainable competitive advantage.