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
Strategy / MBA Resources
Case Study SWOT Analysis Solution
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 energy prices, increasing government debt because of Covid-19 spendings, wage bills are increasing, increasing transportation and logistics costs, digital marketing is dominated by two big players Facebook and Google, increasing inequality as vast percentage of new income is going to the top 1%, geopolitical disruptions,
cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, 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 -
Ability to lead change in Leadership & Managing People field
– Fedex Graf is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Fedex Graf in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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.
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.
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.
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.
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.
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.
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.
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.
Superior customer experience
– The customer experience strategy of Fedex Graf in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Fedex Graf has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
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.
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 -
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr., it seems that the employees of Fedex Graf don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
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.
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.
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.
Low market penetration in new markets
– Outside its home market of Fedex Graf, firm in the HBR case study On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Lack of clear differentiation of Fedex Graf products
– To increase the profitability and margins on the products, Fedex Graf needs to provide more differentiated products than what it is currently offering in the marketplace.
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.
Capital Spending Reduction
– Even during the low interest decade, Fedex Graf has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Slow to strategic competitive environment developments
– As On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. HBR case study mentions - Fedex Graf takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Workers concerns about automation
– As automation is fast increasing in the segment, Fedex Graf needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
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.
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 -
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Fedex Graf to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
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.
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.
Learning at scale
– Online learning technologies has now opened space for Fedex Graf to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
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.
Buying journey improvements
– Fedex Graf can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. On Time, All of the Time: An Interview with FedEx Corp.'s Alan B. Graf, Jr. suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
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.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Fedex Graf in the consumer business. Now Fedex Graf can target international markets with far fewer capital restrictions requirements than the existing system.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Fedex Graf can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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.
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.
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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Fedex Graf in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
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 -
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Fedex Graf needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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.
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.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Fedex Graf.
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.
Regulatory challenges
– Fedex Graf needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Leadership & Managing People industry regulations.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
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.
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.
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. .
Technology acceleration in Forth Industrial Revolution
– Fedex Graf has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Fedex Graf needs to keep up with the evolution of technology in the Leadership & Managing People sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
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.
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.
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.
