Organizational Behavior, Third Edition

Chapter 13. Organizational Structure and Culture

Exploring Behavior in Action: Growth and Structure Provide an Integrated Portfolio of Services at FedEx

Many companies have goals designed to achieve growth and diversification of the markets they serve, both product and geographical. These long-term goals are often maintained even during economic recessions such as that experienced at the end of the first decade of the twenty-first century. Growth can be achieved by developing new products and services internally or by acquiring other organizations. Growth by external acquisition has been popular because it is often a faster and less risky means of achieving the desired growth. FedEx's corporate strategy involved both of these approaches.

In 1971, Federal Express Corporation was founded in Little Rock, Arkansas. Early in its history, FedEx used internal development to achieve rapid growth. In 1983, Federal Express achieved $1 billion in revenue; it made its first acquisition in 1984, Gelco Express International, launching its operations in the Asia Pacific region. Five years later, Federal Express purchased Flying Tigers to expand its international presence. That same year, Roberts Express (now FedEx Custom Critical) began providing services to Europe. In 1995, FedEx acquired air routes from Evergreen International with authority to serve China and opened an Asia Pacific Hub in Subic Bay, Philippines, launching the FedEx AsiaOne Network. By 1996, FedEx Ground achieved 100 percent coverage ...