Racial Discrimination at FedEx

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Case Details:

Case Code : HROB074
Case Length : 16 Pages
Period : -
Pub. Date : 2005
Teaching Note :Not Available
Organization : -
Industry : -
Countries : -

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Background Note

The history of FedEx, the leading transportation, logistics and supply chain management company, dates back to 1971 when Frederick W. Smith (Smith) felt the need for an airfreight system to facilitate quick delivery of documents. The company was incorporated in June 1971 at Memphis, Tennessee as Federal Express and started operations in 1973.

By the early 1980s, Federal Express was well established and the company crossed the $ 1 billion revenue mark in 1983. The following year, the company began its overseas operations with services to Europe and Asia.

In 1985, the company started a regular scheduled flight to Europe. In 1988, the first direct scheduled cargo service to Japan was started. In the late 1980s, Federal Express acquired Tiger International Inc. which helped it to become the world's largest full service all-cargo airline. In 1994, the company adopted FedEx as its primary brand name as part of a corporate identity makeover exercise.

Human Resource and Organization Behavior | Case Study in Management, Operations, Strategies, Human Resource and Organization Behavior, Case Studies

In 1998, FedEx acquired Caliber System Inc.⁶ In the same year, Federal Express became a wholly owned subsidiary of FDX Corporation (FDX), a newly formed holding company. FDX had many companies with expertise in niche areas such as ground transportation, express transportation and logistics.

These companies operated independently but competed collectively, each focusing on individual market segments. In 2000, the company was renamed FedEx Corporation. In February 2004, FedEx acquired US-based Kinko's⁷ for $2.4 billion based on an agreement with Clayton, Dubilier & Rice, announced in 2003. With this acquisition, the company acquired 1,200 stores belonging to Kinko's. The deal also allowed the company to expand its retail business, increase its range of services and provide greater customer convenience. As of 2005, FedEx had a presence in 220 countries. It had more than 2,15,000 people as full time employees and contractors with its headquarters in Memphis, Tennessee, and 4 operating companies (Refer Exhibit III for operating companies of FedEx)...

Excerpts >>

6] Caliber System Inc. was formerly called Roadway Services Inc. It provided a broad range of transportation services which included national and regional general trucking, small package delivery and custom logistics services.

7] Kinko's was a privately-held company founded in 1970 by Paul Orfalea. It provided a range of media services which included professional printing, copying, and binding and internet access services. It had more than 1200 branches in Asia, Australia, Europe, and North America. The shops operated 24 hours a day and 7 days a week.