Problems with Mergers and Acquisition, Labor and Finance - Case Study Example

The paper “Problems with Mergers and Acquisition, Labor and Finance” is an engrossing variant of a case study on business. FedEx stakeholders have a central role, which is instrumental in its appropriate running. Customers are exceedingly important since they have a key task that supports the corporation during tempestuous periods. Industrial relations issues play an imperative role in an organization since it helps to improve organizations level of performance. Organizations should aim at increasing their level of performance by ironing out various industrial relations issues, which are likely to drag them behind. FedEx has experienced financial problems because of its pilots demanding an increase in salary as well as retirement benefits. Consequently, this results in a decline in the profit margin generated by the firm. The firm also experiences tough competition from firms such as DHL, the U.S Postal Service, and United Parcel Services of America (UPS) (Mann, 2014; Pace, 2011; Steinmetz & Brooks, 2010).

Apparently, the firm has lost some of its customers to its competitors because of its higher prices. FedEx does not have a constant price and therefore this can make its customers discouraged from using their services since it is unpredictable. FedEx wastes income because they do not have full-time drivers this makes them spend most of their money giving the drivers contracts. Despite the fact that there are alternatives to the various challenges that face FedEx, several factors limit the implementation of the alternatives. For instance, the quality of goods and services offered, FedEx provides high-quality services and goods compared to their customers.

Multinationals operate in many countries and since different countries have different regulations on different issues, this affects how the multinational will operate. FedEx is experiencing problems with its business model even though the IRS disclosed some information that challenges FedEx's long-held assertion that FedEx drivers Ground division are not its employees but contractors. FedEx operates in more than one country. Different countries have different ways of conducting their activities and organizational culture as well. FedEx experiences cultural challenges regarding the diversity of cultural perspectives.