More so the companys ceo said that the high number of

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analyst would agree that the cyber-attack has significantly affected the company's performance. More so, the company's CEO said that the high number of shipments through its networks was fueled by the continuous growth in e-commerce. FedEx's decision to scoop up TNT Express was expected to pay-off handsomely. Analysts praised this acquisition even though they did not see the expected results. They forgot to predict an attack would be made on the same system. By acquiring TNT express, the company hoped to enhance delivery and pick-up services, incorporate a global express connection system, make the firm more efficient and increase profit. Its management team insisted that TNT would bring about many advantages and UPS could not have it. In addition, it claimed that the decision would lead to higher dividends for the shareholders. TNT's cost of integration was around $800 million (Jurney, 2017). Apart from engaging in acquisitions, the firm has also engaged in other investments such as buying biofuels from Red Rock Biofuels LLC of Fort Collins to improve its FedEx express performance (Risher, 2015). It did this because of it interested in making sure that around a third of its supplies will be from alternate sources. In addition, FedEx wanted to develop a sustainable jet fuel product which could be manufactured and distributed to wherever it was needed (Risher, 2015).
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FEDEX 6 Wagonner (2017) argues whether a firm can capitalize on e-commerce prosperity and still avoid paying high prices in the Amazon's stock. This shows that there are negative consequences are associated with e-commerce (Wagonner, 2017) Analysis The problem that faces this company is the failure to put up a strategic plan that would prevent it from experiencing such an attack. In all the articles presented in the literature, the company only concentrated on how the investment on TNT express would pay off. FedEx got involved in the development of contingency plans after the occurrence. The causes of the problem included the following; It had not sufficiently patch all its computers, servers and network appliances. Any large firm is expected to engage in the same to make sure that it protects the organizational system. Patching increases a firm’s security posture. The firm also failed to control the number of individuals who could access the system's implements. It did not create a response immediately it discovered the attack. Additionally, it failed to concentrate on making sure that all the equipment on the networks met the strict production-management compliance requirements. As a result of the attack, the company's earnings fell by around 5%. FedEx's management team, after noting that its growth was closely linked to the growth of e- commerce should have made sure that its network could not be attacked in any way. Ignoring the minor issues cost the company and forced it to come up with contingency plans, later on, an action it would have taken a long time ago. The company had not insured the system, and therefore, it lost a lot of money.
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  • Fall '14
  • Prof.Oyawa
  • FedEx Trade Networks

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