Finance

This research looks into the FedEx Corporation and its need to have a training program that seeks to coach anyone who qualifies to work for the corporation. As with every other organization, FedEx also has its fair share of challenges that slow down the processes and procedures that constitute to decision-making. Throughout the paper we seek to understand these challenges in order to know what we are up against as we push for this proposal. These challenges that we have discussed include risk, costs, internal politics and also public relations. We also look into future projections of the Cash flows to get to understand why the training program is essential and should be installed.

Federal Express (FedEx) Corporation could be said to be the worlds leading shipping company which was originally known as FDX Corp. In January 1998, it acquired Caliber Systems Inc. and through the sales made the company sort to build and expand on basis of its strength in delivery services. Today, it has several companies that compete under the same name and logo, mainly FedEx Express, FedEx Ground, FedEx Freight, FedEx Office, FedEx Custom Critical, FedEx Trade Networks and FedEx Services.

Fed-ex could easily be assumed to have all the necessary resources needed to run its everyday operations. It is true that this company is well equipped with the latest technology, machinery and transportation we could think of. Aside from this, the company could look into introducing a training program that could gradually build to become a training institution. It may not be as far-fetched as it sounds because this company has been able to acquire a global reputation that is commendable. All these within a matter of years. Having a training program that seeks to coach those hoping to work for or with FedEx, would boost customer confidence in the company. (Madan, 2005, P. 14)

The training program would offer training in all areas and aspects of FedEx. From management to baggage handling to packaging and transportation to customer care and relations. It is an investment project that could be worthwhile in the future. The trainees would be trained by the best in the field and in turn provide the best services in the field.

FedEx has numerous competitors in the courier industry but has emerged top courier provider in the United States, thanks to its strategic plans and direction. Having the training program assures the companys stakeholders of quality production and service. Of course for this program to be in effect, funds have to be provided. FedEx has a net income of US 765 million (financial statements 2010, Q3) and so with proper planning, installment of the program would not be hindered by lack of funding par se.

There are a number of challenges that the program could face before inception into the organization. They include, cost of risk, inception and general operating costs for the program, politics involved in trying to get it through committees and public relations. Looking into the cost of risk involved in introducing this program, they stand undesirable to some extent. On one end, a training program ensures of a better future in terms of the companys investor and stakeholder relations. It will increase their confidence and trust in the company as a company that seeks to be the best in the world. (Madan, 2005, P. 15)

On the other end, the move to implement this new program could be the worst decision made if the results do not reflect the projections made when the idea was first introduced. I have chosen to assume a growth projection of 15 upon implementation of the program. The computations on revenue, operating income and net income are done against the financial reports in 2009. It is a long-term project as results will start to show once training has commenced and the first students have implemented what they have learnt. This could be estimated to take 6-9 months. (Thareja  Capstone project, 1999, P. 24)

The general costs of operation and other expenses will increase as a result of the programs implementation. For a while before the company breaks-even, less profits or even losses will be felt but with the 15 projection, returns will be worth it.

The organizational structure of any company is an important part that could determine the order of operations and decision-making. Through my research I have come to understand FedEx to be a very flexible employer and regards it employees with such high esteem. As to such, top management is open to suggestions from anyone and everyone within the organization, who feels that their idea could help the organization attain its goals. Although it is not very clear, I want to believe that the same relaxed mode goes with decision-making. Bringing forth a proposal such as this is not easy if the flow of communication is too tight. Such a channel discourages creativeness among employees and thus the company misses out on great chances at innovations and advancements. This also encourages internal politics that are not healthy and could hinder effective flow of communication. Internal politics only slows work down and results in sub-standard products and services.

Public relation is another sensitive area in relation to a companys growth and development. It is the same public that you rely on for your very existence. Therefore, it is with utmost importance that FedEx treats its stakeholders with the respect accorded to them. If a company has a bad public image, then it is almost of no use to encourage people to join your organization for the training program. Good public image translates to good public response and support to your services and new ideas. (Wetherbe, 2000, P. 27)

CONCLUSION
Generally, FedEx is a good employer and it is clear that they want their employees to work under conducive conditions. Similarly, the company expects the staff to be at their best and perform beyond expectations. With rapid technological advances and increasing management styles, the training program will ensure tat FedEx stays ahead of its competitors and have the upper hand with the economy and market share. It is one of their goals to be the global leader in offering this transportation service. Installing this program could be a step in the right direction

FedEx Corporation
Statement of Cash flows as at 31st May 2009

   2009 15 Projection

Net Income     98.0 112.7
DepreciationDepletion 1,975.0 2271.25
Amortization       0.0 0.0
Deferred Taxes   299.0 343.85
Non-Cash Items 1,356.0 1559.4
Changes in Working Capital      -975.0 -1121.25
Cash from Operating Activities 2,753.0 3165.95

Capital Expenditures           -2,459.0 -2827.85
Other Investing Cash Flow Items, Total     76.0 87.4
Cash from Investing Activities           -2,383.0 -2740.45

Financing Cash Flow Items      -3.0 -3.45
Total Cash Dividends Paid  -137.0 -157.55
Issuance (Retirement) of Stock, Net     41.0 47.15
Issuance (Retirement) of Debt, Net   499.0 573.85
Cash from Financing Activities   400.0 460

Foreign Exchange Effects   -17.0 -19.55
Net Change in Cash   753.0 865.95