Assignment:
The questions in this exercise are based on FedEx Corporation. To answer the questions you will need to download FedEx's Form 10-K for the fiscal year ended May 31, 2005 at www.sec.gov/edgar/searchedgar/companysearch.html. Once at this website, input CIK code 1048911 and hit enter. In the gray box on the right-hand side of your computer screen define the scope of your search by inputting 10-K and then pressing enter. Select the 10-K with a filing date of July 14, 2005.
Problem 1. What is FedEx's strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion?
Problem 2. What are FedEx's four main business segments? Provide two examples of traceable fixed costs for each of FedEx's four business segments. Provide two examples of common costs that are not traceable to the four business segments.
Problem 3. Identify one example of a cost center, a profit center, and an investment center for FedEx.
Problem 4. Provide three examples of fixed costs that can be traceable or common depending on how FedEx defines its business segments.