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In a highly competitive industry the structure of a firm is very important to its success Today firms are moving away from the centralized structure of the past and adopting a more decentralized structure Management Challenges in the 21st Century p 315 The air express industry is no exception FedEx the leader in the air express industry since the late eighties is also leading UPS in the race to become decentralized Airborne Express is not even in the race In order to compete in todays changing environment Airborne Express needs to move away from its old fashioned centralized structure and form a more decentralized structure The old fashioned structure is not the only variable that makes Airborne the follower in the air express industry The Internet and information systems are transforming the air express market into an electronic commerce market and Airborne needs to transform its operations to meet this growing market This report describes the strengths and weakness of the organizational structure of Airborne Express Furthermore it also gives recommendations for future changes in Airborne Express The first section of this report addresses how the organization of the firm evolved and what changes are taking place structurally in its industry The second section discusses labor issues in the air express industry and how they affect Airborne Express The third section addresses the growing electronic commerce market and how its affecting the industry and Airborne Express 1 Structure of Airborne Express During the eighties many air express companies were formed and many were destroyed However three companies came out of this highly competitive period on top They were FedEx UPS and Airborne Express Airborne survived this highly competitive period by adapting to the external forces affecting the industry One of the external forces affecting Airborne was the size of the competition UPS and FedEx were just swallowing up competitors So Airborne decided the best way to compete was to be the low-cost provider of air
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