Question

Identify the main stakeholder groups in FedEx. What claims do they place on the company? How is the company trying to satisfy those claims?

Answer 1

Answer:-

The main stakeholder groups in the FedEx are the stockholders and bondholders. The stockholders are the investors who provide the equity financing component to the company whereas the bondholders are the creditors who provide the debt financing portion of the FedEx.

The bondholders put the claim of interest payments to the company. This is because the returns on the bonds held are always inform of the interest income. The stockholders on the other hand claim dividend payments from FedEx.

The company is trying to satisfy the claims by maximizing on the profitability to ensure that the stockholder returns are maximized as well as the bondholders being paid their interests. FedEx have optimized in their operations such that they reported a revenue of $64 billion in 2017 and net income of $2.997 billion to help realize these objectives of maximizing returns to the main stakeholders.