What are the three levels of the FedEx operating strategy?

• A. Compete collectively, operate independently, manage collaboratively
• B. Compete individually, operate collectively, manage independently
• C. Compete collectively, operate collaboratively, manage independently
• D. Compete separately, operate independently, manage cooperatively

Answer: (A)

The levels describe how a big logistics company balances external competition, day-to-day operations, and cross-unit coordination. The best fit is that the company competes collectively, meaning the FedEx network is presented as a unified market front with shared capabilities, while the individual business units operate independently to run their specific routes, pricing, and local decisions. Management collaborates across units to optimize the whole network—sharing technology, hub locations, schedules, procurement, and strategic plans for overall efficiency and synergies. If units tried to compete on their own without a network-wide approach, or if operations were fully collaborative with no unit autonomy, the balance between speed, flexibility, and coordination would be off.