Introduction to Business

This is confirmed by the case facts say: Federal Express took a leading role in lobbying for air cargo deregulation that finally came in 1977. These changes allowed Federal Express to use larger aircraft (such as Boeing 727s and McDonnell-Douglas DC-10s) and spurred the company’s rapid growth. By the mid-2000s Federal Express had the world’s largest all-cargo air fleet, including McDonnell-Douglas MD-11s and Airbus A-300s and A-310s. The planes have a total daily lift capacity of more than 12,000 tonnes. In a 24-hour period, the fleet travels nearly 500,000 miles while its couriers log 2.5 million miles a day, the equivalent of 100 trips around the earth.Deregulation is also an economic policy that is implemented through political action. Deregulations lessen in effect government control in how a business conducts its business. In the case of the cargo industry, the government has allowed industry players to acquire bigger aircraft that could move goods better for the player in the industry.The changing need and wants if customers because of changing technology. People need to communicate and thereby documents these events. The proliferation of the Internet has made it accessible to almost everybody who has computers and even cell phones and hence what originally caused Fed Ex to generate revenues by delivering mails has stopped because customers could now communicate via electronic means and store and transfer documents in a similar manner.The business of Fed Ex requires the use of aircraft which must take into consideration the reality of changing weather conditions to run the business. At one of the company’s sources of a major operation, the weather is favorable to Fed Ex. Case facts say, the Memphis weather was excellent and rarely caused closures at Memphis International Airport and that the airport was also willing to make the necessary. There is low bargaining power of buyers.