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.
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?
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.
3. Identify one example of a cost center, a profit center,
and an investment center for FedEx.
4. Provide three examples of fixed costs that can be
traceable or common depending on how FedEx defines its business segments.
