The USPS company has a highly integrated system of divisions that essentially work together to ensure that the company stays on an edge over its competitors. Among the vital divisions of the company include the financial division that essentially seeks to ensure that the company retains the capacity to remain successful in its venture in business. Financial capacity of the company is dependent on the capacity of the company’s financial sector to fully manage the financial abilities of the company.
In addition, the marketing sector also has a huge role to play especially in regard to ensuring that the company obtains and maintains its clients. In this regard, the division has, on top of other efforts, sought to market the services of the company and thus helping it to be at a competitive advantage as compared to other companies. Lastly, the customer service division is solely responsible for the service of the customers of the company to ensure that they are fully satisfied. To achieve this, the company’s customer service division is responsible for the handling of any disputes that may arise and threaten the good company-client business (Gesenhues, 2014).
With the vision of the company centered on faster delivery of goods, the company has made significant efforts in order to achieve that. This echoes the mission of the company which states that systematically stipulates that the company provides personal as well as corporate postal services. The proposed business plan of the company has several assumptions. Firstly, it is assumed that the proposed changes would not affect the preferences of the public in regard to the usage of postal services of the company. It is also assumed that the introduction of the rather new inventions in the business that have not been tried and tested in any other models such as the drone deliver services would go as planned and that their use would be eventually adopted and authorized by the industry’s regulators. Lastly, it will be assumed that the company’s competitors would not pose a grave danger to the survival of the USPS Company (Gesenhues, 2014).
The success of the company’s venture to rebrand itself will be pegged upon its ability to implement successfully the highlighted proposed changes. In addition to these, the company would be in dire need of advancing and revolutionizing its management in the bid to achieve the visionary strategic milestone of being a leader in the mail service industry.
According to recent historical managerial ideas, there are few individuals having more significant impacts than those that say business enterprises ought to be kept running in a way that ‘maximizes shareholder values’. For USPS, it can be argued that whatever Americans see as not being wrong with the economy is deep rooted in this ideologies. Such factors include slowed growth and development as well as disparity, inadequate R&D, and training of workers and public goods. Funny though, it is supposed to imperative in a bid to boost the organization’s market share price since it has no establishment in history or in law. Moreover, there is no any exact proof that it makes the economy or the general public better off. Having started in the 1970s as a helpful remedial to self-satisfied administrative mediocrity, it has become rather corrupt as peddled by money managers and corporate administrators. (United States Postal Service, 2006)
Revenues and costs
The Postal Services has significant endeavors for reducing operations costs and enhance efficiency to guarantee costs are better adjusted to mail volumes. Operation costs have declined subsequently since FY 2011, thereby resulting in the first operation incomes since FY 2008. Having been less than anticipated decreases in First-Class Mail volume, combined with execution of the Market Dominant CPI rate it contributed essentially to FY 2014 net operations income. There is a consideration for commissions to do non-cash adjustments for staff remuneration and the payment to RHBF as non-operation costs. Continued losses have disintegrated the liquidity for Postal Service fundamentally. The United States Postal Services attained about $15 billion statutory limit for borrowing in FY 2012. The netbook estimation for its assets remains fundamentally lower than its liabilities, without being able to make the statutorily obliged installments to the RHBF for 4 years. Capital expenditures on resources are limited to those uses considered vital for the operations to continue.
Extraordinary treatment from federal, local, state governments has accorded U.S. Postal Service some unjustifiable advantages over the private-sector competition, for example, the FedEx and United Parcel Service as indicated by the recent economic analysis. According to Robert Shapiro, who is a former officer at the Commerce Department and economic adviser, said in a report that USPS gets about $2 billion benefits annually from tax exemptions, besides being a monopoly for mail delivery and access to government financing. (United States Postal Service, 2000)
There is an adage for business which is less expensive and simpler to hold existing clients than to get new ones. There could be estimated that it is five times as costly as much to obtain new clients than to hold ones. This is an explanation why organizations work very hard to keep clients happy. The U.S. Postal Service comprehends the significance of client retention. It has increased its endeavors in such manner, including transforming its sales, upgrading its utilization of analytics to check where it poses risks to lose clients, and operating client retention call centers. Moreover, client retention is very challenging during an era of contracting mail volume. Though there is a decrease of customer defection from 2012 to 2013, the extent of this prominent issue is no easy task for the Postal Service’s primary concern.
The Postal Regulatory Commission produced a report that says that 78% of the USPS’s clients both from households and medium-sized organizations said they were either exceptionally or ‘mostly’ satisfied with the services provided by the agency. The objective of USPS had been 82.5% satisfaction rate. This agency regularly conducts its own particular surveys to gauge client approval including bigger organizations. In this case, those big organizations were excluded in the Postal Service’s scorecard. According to the report by the regulator, the Postal Service reported that it would shutter another 82 mail handling centers. Indeed, the agency already consolidated 140 centers in recent years saying that the agency presently had a bigger number of facilities than it needed because of the decrease in first-class mail volumes. In addition, shuttering more mail centers would result in saving millions of dollars annually. (United States Postal Service, 2006)
USPS designed a vision to facilitate the value of mail by utilizing information and understanding from the mail to convey increased client value as well as drive operational proficiency. To accomplish this vision, USPS acknowledged it would need to make powerful and versatile business procedures and works on, presenting Intelligent Mail® ability and changing conventional mailer services. In this effect, Full-Service activity was conceived. The Full-Service project is a combination of information encoded in the new suite of Intelligent Mail® code identification with electronic mailing information from clients as well as data obtained from the mailing of USPS operations. Mailer submitted information regarding the make-up of the mail was then incorporated with operational information from the USPS system to make end-to-end understanding for both mailers and USPS. (United States Postal Service, 2000)
The U.S. Postal Service (USPS) delivers performance models and results, which are key to the attainment of its main goals of giving all inclusive postal administration and has been a long-standing concern towards mailers and Congress. Guidelines are key to setting practical desires for delivery execution and sort out exercises accordingly. Convenient and reliable reports of results are fundamental for administration, oversight, and accountability reasons.
Postal expenses are intensely packed in wages, benefits for employees and retirees, and also transportation. There was a removal of more than $6 billion from postal services in expenses in 2009, as a result of a decrease of 115 million work hours. Aggregate Factor Productivity (TFP) declined 0.9 percent, in the second successive year this measure has declined. TFP does compare postal yields, for example, mail volume and delivery system development, with the resources utilized. Mailing volume is weighted by various components, including shape, weight, and level of client preparation. The resource incorporates capital, work labor, and materials. The strategy is like the Multi-Factor Productivity record utilized by the U.S. Department of Labor Statistics to gauge the productivity for the general economy as well as major industrial departments.
Performance metrics chosen must offer clear proof of the achievement of each of the following factors even in ranges where a metrics is difficult to evaluate. First is quality, whereby it checks the conformance to the necessities of contract and principles of good workmanship. Second is a timely performance where it is essential to observe adherence to contract timetables. Thirdly, they must establish a good client-Supplier relationship. This is to ensure commitment towards consumer loyalty as well as trustworthiness and morals. Finally, cost control for forecasting and containing expenses on changes and cost reimbursement contracts. (United States Postal Service, 2000)
The Postal Service embraces innovation and empowers the utilization of technology that makes mailing more effective for clients. This includes having online services that permit business mailers to connect with clients within their localities, city or ZIP Code. After its launch in 2011, the Postal Service has done around 1.2 million transactions resulting in more than $1.2 billion in income. Moreover, the second Ounce Free is another way the Postal Service is adding values to the First-Class Mail. Business mailers can utilize the free second ounce to encase promotion materials, coupons and advertising messages for clients. Furthermore, Intelligent Mail builds the value for mailing for the Postal Service as well as its consumers. The Intelligent Mail barcode recognizes individual bits of mail and compartments of mail and channels them through the handling framework that is to delivery. (United States Postal Service, 2006)
With the US postal service aiming at achieving a milestone of goals, the company is in dire need of adopting some advanced systems of business that would help the company come to the actualization of the visions and missions of the company. The major step that the company needs to take is the incorporation of technology in most if its business. In this regard, the company would absolve to advance and supplement most of its operations with the technological advances available in the 21st century. Some of the most viable fields where technology can play a vital role is the advertising and marketing sector. With the advances on the global usage and dominance of the internet, it would be advisably prudent for the company to incorporate advertisements in avenues such as the local media, cabled television stations as well as the mailing systems. In addition, the company would also consider revolutionizing its marketing efforts by including tactics such as use of testimonials from previous customers as well as the use of attractive and lucrative guarantees. These efforts would culminate to the popularity and the public trust of the company among the public; individuals as well as corporates (USPS Advertising sector, 2015).
In order to achieve the strategic plan as well as ensure that the progress is well monitored. One of the most viable methods of monitoring the progress of the implementation of the strategic plan would include the periodic monitoring and reporting of the progress of the company. In this model, each of the leaders of the sections of the company would be required to file returns with the rest of the company. These periodical reports would be a viable avenue for the accountability as well as monitoring and evaluation of the financial progress of the company (USPS Advertising sector, 2015).
The second means of ensuring the good progress of the company would include the setting up of an oversight committee whose major aim would be the monitoring of the progress of the company in regard to the achievement of the objectives. Such an independent oversight unit would be the best in terms of the achievement of the strategic plans of the company. The third effort and bid to ensure accountability of the strategies of the company would include measures such as me development and adhering to a strategic timeline of objective. This would essentially outline each of the proposed goals and its proposed date of achievement. Such a timeline would help the company to achieve the goals within the stipulated timeline.
United States Postal Services is faced by a number of ethical, regulatory and legal issues. About ethics and social responsibilities, the Postal Service is committed to upholding its stand as a liable service organization and it also understands that there is a need to embrace a socially responsible behavior because it is fit for business. This is a principle that has enabled postal service to enhance corporate culture and trust in the key business relationships. There are a number of conflicts that faces it ranging from financial conflicts to organizational conflicts. Ethics requires the postal service management, purchase teams and contracting officers to fully address and consider any ethical concern that is raised on the side of any employee who has been involved in the contracting processes As well as in any other organizational conflict of interest which has arose from the side of the suppliers (United States Postal Services, 2004, p. 201)
Besides this, there are also a number of restrictions that have been imposed by federal regulation and law on the executive branch employees who need postal service employees under some specified circumstances to pursue ethics counseling just before they participate in a certain contracting activity. Generally, the circumstances that lead to this is if a postal service employee falls into one of these category. First, if an employee has either imputed or direct financial interest in the matter. Secondly, if an employee’s ability to remain impartial about the issue during his/her participation is questionable on the basis of relevant facts and thirdly, an employee may be needed to seek counseling prior to a contract if participation in such an issue can make an employee to give rise to suggestions and an appearance that this employee used their public office for the private gains of others.
The postal service also has a responsibility of ensuring their sustainability. The United States Postal service strives to ensure that there is a continually improving environmental responsibility and performance which are very vital in the long-term competitiveness and healthy progress of their business world. This organization has ensures that they have improved their sustainability and environmental practices in their operations and also continually encourages suppliers to also improve their sustainability and environmental practices during the carrying out of their contracts by ensuring that they provide environmentally-preferable products which are both cost effective and reliable. Once in a while when it is appropriate, the United States Postal service works in collaboration with suppliers so that they may identify opportunities that improve sustainability and environmental aspects (United States Postal Services, 2015).
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United States Postal Service. (2000). Mailing standards of the United States Postal Service. Washington, D.C.: U.S. Postal Service.
United States Postal Service. (2006). Annual report of the United States Postal Service. Washington, DC: U.S. Postal Service.
United States Postal Services. (2004). legal and regulatory issues faced by United States Postal Service organization. New York, NY.
United States Postal Services. (2015). Ethics and Social Responsibility. Retrieved June 22, 2015, from https://about.usps.com/manuals/spp/html/overview_007.htm
United States. (2004). An Act to Redesignate the Facility of the United States Postal Service Located at 747 Broadway in Albany, New York, as the “United States Postal Service Henry Johnson Annex.”. Washington, D.C.: U.S. G.P.O.
USPS Advertising sector. (2015). Business | USPS. Retrieved June 22, 2015, from https://www.usps.com/business/welcome.htm
USPS Advertising sector. (2015). Business | USPS. Retrieved June 22, 2015, from https://www.usps.com/business/welcome.htm