PEST Factors for FedEx

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Large FedEd tail ad on plane
Large FedEd tail ad on plane (Image: Scott Olson/Getty Images News/Getty Images)

FedEx Corporation, formerly called FDX Corporation, is a global management services company providing customers and businesses with shipping, trade, and marketing services. It's also very focused on the impression it leaves with the people and places it serves, so it uses PEST (Political, Economical, Social and Technological Factors) to determine its market standing and what service improvements are necessary.

Political Factors

Primary political factors affecting an organization are government rules and regulations. Being an international company, FedEx interacts with various nations around the world that don't enforce tough trade regulations, granting them the privilege of getting better international services. Some other political factors of concern are political stability, industrial limitations and business standards. FedEx is successful in serving the world because it strictly abides by all relevant laws.

Economic Factors

Inflation, exchange rates and interest rates are economic factors taken into consideration, for they have the potential to distress consumers. Depression in the market affects the financial assets of the company. It's both a positive and a negative for FedEx that it provides services around the world, since it must respond to varying economic factors as a result. FedEx must be flexible with its charges, basing them on the economic status of each country it serves.

Social Factors

Social factors that affect an organization are population and educational perspective of the international and macro-economical society. These pertain to decisions organizations make to meet the needs and demands of a specified number of consumers in certain countries. Populated countries are favorable to FedEx because they have more consumers who require their services. Global organization expansion is influenced by countries with high literacy rates, something that's certainly a driver for FedEx.

Technological Factors

FedEx, like other organizations, is successful primarily due to the advancement in technology. The company took the expansion of the Internet to its full advantage by providing electronic services to customers anywhere in the world. With this technology, consumers can check the status of their transactions with just a few mouse clicks. FedEx is able to communicate with the world through e-commerce, another innovation for business-to-business transactions.

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