Saving the USPS Through Privitization Essay example

If I were the current CEO for the United States Postal Service, I would be gravely concerned about the future of my business, as it has recently taken a steep plummet from its success and popularity in the 19th and 20th centuries. The USPS is now faced with the decision to renovate itself due to the extreme loss of business as technology takes over the 21st Century. Some say that the USPS should be entirely reconstructed because the business is only headed further downhill, while others say that paper mail is still very practical, more so than e-mail, and we must each write more letters to do our part in reviving the business to profitability again. Because the USPS has been such a vital part of our country through

The Express mail industry in the United States had a volume of $16-17 billion on expedited shipments in the year 1996. In the years before shipment volumes has risen 15-20% per year. However due to higher competition prices have fallen which resulted in a rise of only 10-15% in total revenues. As an example of this stands the revenue and the operating margin of the biggest player that make up 45% of the market. Federal Express’ revenue has more than quadrupled in the ten years prior 1996, however its operating margin has more than halved. (Exhibit 2) The

In July 2009, the Government Accountability Office (GAO) listed the budget of the United States Postal Service as “high risk” and recommended oversight from Congress and the Executive Branch. Specifically, the GAO stated that “Amid challenging economic conditions and a changing business environment, USPS is facing a deteriorating financial situation in which it does not expect to cover its expenses and financial obligations in fiscal years 2009 and 2010” (“Restructuring”, 2009, pg. 1). The GAO claimed that the mail volume in 2009 would likely decrease by about 28 billion as compared to 2008 and that the USPS would likely see declining volumes for the next five years (“Restructuring”, 2009, pg. 1). Clearly, the USPS is currently facing a

There is still a need for the United States Postal Service (USPS) today then just as anytime during the history of the United States. The USPS provides valuable and equitable services to all Americans everywhere in the United States, regardless of distance from their nearest post office. “Universal Service” a key term provided in an article by the Bloomberg Business week journal, describes what the USPS provides. The cost of delivering mail in rural communities is much higher than in urban areas. The USPS chief executive officer stated “You cannot charge 46 cents to deliver a letter by snowmobile in Alaska and make it work” (Bloomberg Business, 2014). Privatization of the USPS would possibly cause regional price differences that can place many Americans in rural areas at a

In Daniel Stone’s editorial article, “Flying Like an Eagle”, he advises the USPS some guidance to boost up their profit and their usage to the community. One of his inputs on the

The Post Office Department known as the United States Postal Services (USPS) (Annual Report, 2009) today, is a dominate player in the mail delivery arena and has been existence since 1776. The Post Office was originally a governmental agency, but due to mismanagement by Congress, was reorganized in 1971 and no longer a part of the presidential cabinet; but became an independent establishment of the executive branch of the Government. To date, the USPS maintains a monopoly on the day-to-day delivery of mail but competitors do share the market on some of the other types of deliveries; shares the market on some of the other types of deliveries (i.e. express

The Privatization of Royal Mail Maastricht  University   School  of  Business  and  Economics   Maastricht,  5th  April  2014   Wall,  Sebastian  (SW)   ID  numbers:   I6029483   Course  code:     Group  number:  1   Tutor’s  name:    Professor  Hans  van   Mierlo   Writing  Assignment:  Final  Paper         1   Executive   Summary      

Furthermore, source E McDevitt Caitlyn supports that USPS should not be restructured. According in the article it states “The postal service lost $1.1 billion in its latest Quarter”. This shows the amount of customers using the USPS.

The USPS could also use its association with the US Congress to “make a play for control of government broadband,” effectively making the USPS a “communications-delivery service, rather than just a team of letter carriers.” Evolving the USPS to fit today’s technology-filled world would likely broaden its horizons beyond simply mailing letters. Another step that could be taken by the USPS is to “rebrand” (Source A). Branding is undeniably a key aspect of any business or company because it is what draws people in and makes a business unforgettable. For example, everyone has heard of the “I’m Lovin’

Not only is the USPS delivering less and less mail each year thanks to the internet, the business is also spending too much on gas due to gas prices steadily going up. When each postal truck has to visit several neighborhoods, using about a tank of gas every other day, the cost of transportation starts to outweigh the actual profit being made. McDevitt supports such a statement by saying, “It’s [the USPS] being pummeled by the high fuel costs.” In a nation where people are becoming more and more concerned about the environment, such a high use of gas is even more of a problem. Also, the junk mail received is troublesome and often times annoying, which is incredibly frustrating since there is no way to stop it from getting into the mailbox. So much money is being spent on the transporting of useless mail to millions of people who would rather not be receiving it, and there is no way to profit from the. If it wasn’t already believable enough, numbers speak louder than words, and the numbers provided by the USPS exemplify just how real the loss of the company is (Source B). Since 2000, the number of pieces being transported to mailboxes around America has decreased by more than 40 billion pieces. With such a loss in business comes a decrease in the overall revenue for the company. So, it is surprising that there have been barely any changes to the way that the USPS is catering to the new society that it is supposed to be servicing. If the USPS would like to start making a profit yet again, the business needs to consider taking a step into the digital world along with reducing their

Great example. Honestly, with the advances in technology and the fast and efficient services of UPS and FEDEX, I thought that the USPS would go out of business years ago. I knew that they are a government organizations, but until this week, I did not think of them are a corporation. I think that the USPS will serve as a great example of federal bureaucracy in the future, when people are studying the increased U.S. debt. Don’t get me wrong, in no way am I saying that the USPS is responsible for the increased U.S. debt, but is one of many corporations that contribute to the fact. I am not a business major nor a politician and when I looked at the USPS annual fiscal report, there was a lot of positive verbiage in the report and when it came

The USPS has not implemented many aspects of change and they have not dealt with the technological change well. Ever since Email and text messages became the man way to communicate and send information, the USPS took a major hit with profits. Instead of having this work against them the government needed to makes changes within their own systems. Certain companies have contacts with UPS and FedEx when it comes to shipping. The USPS is not allowed to enter into any type of contract which is why, when the internet and online shopping became big these companies jumped on it. The USPS just stayed back and didn’t try to implement any changes. They need to research how they could incorporate technology into their business structure and make needed

The goal of The United States Postal Service is to create “a free flow of information between citizens and their governemnt as a cornerstone of freedom, often spoke of a nation bound together by a system of postal roads and post offices.” (Longley 2013) Postal offices are forbidden to open any letters unless it is undelieverbale. The United States Postal Service (USPS) is resposible for providing postal services for the United States to all Americans no matter the geographical location. The United States Postal Service is an independent agency of the United States federal government that was

The parcel service industry is made up of four main competitors. These competitors are UPS, FedEx, Airborne Express, and the U.S. Postal Service. Since 2000, American consumers have spent more than $50 billion to ship parcels, packages, and overnight letters. New parcel distribution patterns developed due to the way U.S. manufacturing companies are operating. The Internet has expanded the reach of direct marketing, particularly with retail transactions requiring home delivery. Globalization has also created the need for parcel carriers to expand worldwide.

USPS should consider shifting part of its mail volume to rail. By making this change it has been estimated that USPS could save at least $100 million per year. Additionally, “because of its lesser sensitivity to fuel price increases and greater control of its own infrastructure, rail transportation has major, long-term strategic advantages over highway” (Berman, 2012).