8/13/2019 David Sm13e Cn 14
1/16
United States Postal Service - 2009Case Notes Prepared by: Dr. Mernoush anton
Case !uthor: Dr. "red David and Dr. "orest David
A. Case Abstract
USPS Corporation #$$$.USPS.co%& is a co%prehensive strate'ic %ana'e%entcase that includes the co%pany(s )iscal year-end Septe%ber 20* 200+ )inancialstate%ents* co%petitor in)or%ation and %ore. ,he case ti%e settin' is the year2009. Su))icient internal and eternal data are provided to enable students toevaluate current strate'ies and reco%%end a three-year strate'ic plan )or theco%pany. ,he Postal Service !ct o) 9/9 trans)or%ed the Post ))iceDepart%ent into the United States Postal Service* an independent establish%ento) the eecutive branch o) the 'overn%ent o) the United States. ,he Postal
1eor'aniation !ct re3uired that the 'overn%ent a'ency be sel)-supportin'.,his $as achieved in 9+2* and the postal services have been )ree )ro% tapayersupport since then.
B. Vision Statement #!ctual&
ur vision o) the )uture be'ins $ith a stron' )oundation. 4e $ill continue tostren'then our core operations and services* balancin' an i%%ediate and ur'entneed to reduce costs $ith a continued co%%it%ent to strate'ies such as5ntelli'ent Mail6* $hich are essential to our )uture. 4e $ill be 'uided by oneprinciple: $e eist to serve our custo%ers. ,his vision is our co%%it%ent toensurin' a vital Postal Service )or )uture 'enerations. ur vision rests on three%a7or strate'ies: #& "ocus on $hat %atters %ost to custo%ers. #2& 8evera'e ourstren'ths to create custo%er value and pro)its to invest in continuedi%prove%ent. #& %brace chan'e in the $ay $e respond to e%er'in' custo%erneeds and a rapidly evolvin' business environ%ent.
Vision Statement #Proposed&
,o be the )irst choice in postal and courier service to our custo%ers.
C. Mission Statement #!ctual&
,o provide every household and business across the United States $ith theability to co%%unicate and conduct business $ith each other and the $orldthrou'h pro%pt* reliable* secure and econo%ical services )or the collection*trans%ission* and delivery o) %essa'es and %erchandise.
Copyri'ht ; 20 Pearson ducation* 5nc. publishin' as Prentice
8/13/2019 David Sm13e Cn 14
2/16
Mission Statement#Proposed&,o provide the %ost superior* reliable and a))ordable %ail service to allpatrons #* 2* * =& throu'h our easy access locations or via hi'hlyadvanced and %ost updated $eb site #>&. 4ith our dedicated e%ployees#9&* $e continue to 'ro$ and be pro)itable #?* /&. 4e strive to have a
positive i%pact to everyone across the United States #+&.
. Custo%er2. Products or services. Mar@ets>. ,echnolo'y?. Concern )or survival* pro)itability* 'ro$th/. Philosophy=. Sel)-concept+. Concern )or public i%a'e9. Concern )or e%ployees
D. External Audit
CPM Competitive Profile Matrix
USPS UPS edEx
Critical Success actors!ei"#
t$atin
"!ei"#ted Score
$atin"
!ei"#ted Score
$atin"
!ei"#tedScore
!dvertisin' 0.0+ 2 0./ 0.2> > 0.2
,op Mana'e%ent 0.0/ 0.0/ 2 0.2 > 0.2>Custo%er Service 0.09 2 0.+ 0.2= > 0./,echnolo'ical
!dvances 0.09 2 0.+ 0.2= > 0./5nternational Mar@etSales 0.0= 0.0= 0.2 > 0.2+
Alobal pansion 0.0+ 0.0+ 0.2> > 0.2
"inancial Position 0.0= 2 0.> 0.2 > 0.2+
Custo%er 8oyalty 0.0 2 0.20 0.0 > 0.>0
Mar@et Share 0.09 2 0.+ 0.2= > 0./
Product Buality 0.09 2 0.+ 0.2= > 0./Mar@etin' 0.0+ 2 0./ 0.2> > 0.2
Price Co%petitiveness 0.0 > 0.>0 2 0.20 0.0
%otal &.'' &.(( ).*+ ,.('
Copyri'ht ; 20 Pearson ducation* 5nc. publishin' as Prentice
8/13/2019 David Sm13e Cn 14
3/16
-pportunities. n avera'e* the co%petitors are %ore epensive in services they o))er
co%pare to USPS2. Aovern%ental control o))ers the ability to 'et etra )undin' as needed. More consu%ers are shoppin' online )or 'oods and services
>. Aro$in' pac@a'e delivery to international %ar@ets?. Creatin' 7oint venture $ith popular eCo%%erce shoppin' sites such aseay* !%aon* verstoc@* and %any others
/. pansion into %ar@ets such as urope* S. !%erica* China and apan=. "or% 7oint venture $ith "ed and UPS to areas that USPS does not
deliver currently
%#reats. 4ea@ econo%y has i%pacted %any businesses and consu%ers due to
do$nsiin' and cut bac@s2. 1ise in )uel and 'asoline prices has i%pacted businesses and consu%ers
ne'atively* resultin' in cuttin' bac@ in spendin' %oney on posta'e andpac@a'e delivery. %ail has replaced sendin' letter* cards and other docu%ents>. nline bill pay and receivin' bills and state%ents electronically have
caused a %a7or drop in posta'e usa'e?. Co%petitors have a %ore advanced and user )riendly $eb site that attracts
businesses and consu%ers/. Co%petitors have struc@ deals $ith popular businesses and retailers )or
usin' their services $hen shippin' %erchandise
External actor Evaluation EE/ Matrix
0e1 External actors !ei"#t $atin" !ei"#tedScore
-pportunities
. n avera'e* the co%petitors are %oreepensive in services they o))er co%pare toUSPS
0.0+ 2 0./
2. Aovern%ental control o))ers the ability to 'etetra )undin' as needed
0.0= > 0.2+
. More consu%ers are shoppin' online )or
'oods and services
0.09 0.2=
>. Aro$in' pac@a'e delivery to international%ar@ets
0.09 0.09
?. Creatin' 7oint venture $ith populareCo%%erce shoppin' sites such as eay*
!%aon* verstoc@* and %any others
0.0/ 0.+
Copyri'ht ; 20 Pearson ducation* 5nc. publishin' as Prentice
8/13/2019 David Sm13e Cn 14
4/16
/. pansion into %ar@ets such as urope* S.!%erica* China and apan
0.09 2 0.+
=. "or% 7oint venture $ith "ed and UPS toareas that USPS does not deliver currently
0.0= 0.2
%#reats
. 4ea@ econo%y has i%pacted %anybusinesses and consu%ers due todo$nsiin' and cut bac@s
0. 2 0.2
2. 1ise in )uel and 'asoline prices has i%pactedbusinesses and consu%ers ne'atively*resultin' in cuttin' bac@ in spendin' %oneyon posta'e and pac@a'e delivery
0.09 0.09
. %ail has replaced sendin' letter* cards andother docu%ents
0. 0.
>. nline bill pay and receivin' bills and
state%ents electronically have caused a%a7or drop in posta'e usa'e
0.0 0.0
?. Co%petitors have a %ore advanced and user)riendly $eb site that attracts businesses andconsu%ers
0.0= 2 0.>
/. Co%petitors have struc@ deals $ith popularbusinesses and retailers )or usin' theirservices $hen shippin' %erchandise
0.0+ 2 0./
%otal &.'' ).'2
Positionin" Map
Copyri'ht ; 20 Pearson ducation* 5nc. publishin' as Prentice
8/13/2019 David Sm13e Cn 14
5/16
E. 3nternal Audit
Stren"t#s. Non-auto%ation presort and "irst Class 5nternational letters eperienced
increases in volu%e2. Dependent on 'overn%ent )or additional )undin' i) needed. Drop in )ield and career e%ployees could help reducin' the operatin'
epenses #hibit &>. Deliveries to %ore than >0 %illion addresses every day?. USPS is the $orld(s leadin' provider o) %ail and delivery services* o))erin'
so%e o) the %ost a))ordable posta'e rates in the $orld/. n-ti%e delivery o) )irst class %ail reached record levels in 200+=. 5n ctober 200+* USPS published ision 20* a )ive-year strate'ic plan*
coverin' the period 2009 to 20
!ea4nesses. "irst Class Mail revenue decreased E22/ %illion* or 0./ percent* $hile
volu%e decreased by >./ billion pieces* or >.+ percent* in 200+2. Decline in sin'le-piece "irst Class letters* $ith a decrease o) over billion
pieces o) %ail. ,he lon' ter% in sin'le-piece volu%e continued to decline* due to the
i%pact o) electronic diversion as businesses* nonpro)it or'aniations*
Copyri'ht ; 20 Pearson ducation* 5nc. publishin' as Prentice
8/13/2019 David Sm13e Cn 14
6/16
'overn%ents* and households continue to %ove their correspondence andtransactions to electronic alternatives* such as 5nternet bill pay%ent*auto%atic deduction* and direct deposit #hibit =&
>. ?2 %illion dollars )ro% 200= to 200+=. USPS co%pleted )iscal year 200+ endin' Septe%ber 0 $ith a net loss o)
E2.+ billion+. Mail volu%e in 200+ totaled 202.= billion pieces* a decline o) 9.? billion
pieces* or >.? percent* )ro% 200=9. 0.2>
n-ti%e delivery o) )irst class %ail reachedrecord levels in 200+
0.0= > 0.2+
5n ctober 200+* USPS published ision 20*
a )ive-year strate'ic plan* coverin' the period2009 to 20
0.0? 0.?
!ea4nesses
"irst Class Mail revenue decreased E22/%illion* or 0./ percent* $hile volu%e decreasedby >./ billion pieces* or >.+ percent* in 200+
0.0/ 0.0/
Copyri'ht ; 20 Pearson ducation* 5nc. publishin' as Prentice
8/13/2019 David Sm13e Cn 14
7/16
Decline in sin'le-piece "irst Class letters* $itha decrease o) over billion pieces o) %ail
0.0? 2 0.
,he lon' ter% in sin'le-piece volu%econtinued to decline* due to the i%pact o)electronic diversion as businesses* nonpro)it
or'aniations* 'overn%ents* and householdscontinue to %ove their correspondence andtransactions to electronic alternatives* such as5nternet bill pay%ent* auto%atic deduction* anddirect deposit #hibit =&
0.0? 0.0?
?2 %illion
dollars )ro% 200= to 200+
0.0/ 0.0/
USPS co%pleted )iscal year 200+ endin'Septe%ber 0 $ith a net loss o) E2.+ billion
0.0? 0.0?
Mail volu%e in 200+ totaled 202.= billionpieces* a decline o) 9.? billion pieces* or >.?percent* )ro% 200=
0.0> 0.0>
8/13/2019 David Sm13e Cn 14
8/16
. Drop in )ield and careere%ployees could helpreducin' the operatin'epenses #hibit &
>. Deliveries to %ore than
>0 %illion addressesevery day?. USPS is the $orld(s
leadin' provider o) %ailand delivery services*o))erin' so%e o) the%ost a))ordable posta'erates in the $orld
/. n-ti%e delivery o) )irstclass %ail reachedrecord levels in 200+
=. 5n ctober 200+* USPSpublished ision 20* a)ive-year strate'ic plan*coverin' the period2009 to 20
billion pieces o) %ail. ,he lon' ter% in sin'le-
piece volu%e continuedto decline* due to thei%pact o) electronic
diversion as businesses*nonpro)it or'aniations*'overn%ents* andhouseholds continue to%ove theircorrespondence andtransactions toelectronic alternatives*such as 5nternet billpay%ent* auto%aticdeduction* and direct
deposit #hibit =&>. ?2 %illion
dollars )ro% 200= to200+=. USPS co%pleted )iscal
year 200+ endin'Septe%ber 0 $ith a netloss o) E2.+ billion
+. Mail volu%e in 200+totaled 202.= billionpieces* a decline o) 9.?billion pieces* or >.?percent* )ro% 200=
9.
8/13/2019 David Sm13e Cn 14
9/16
%illion* a .9 percentincrease over 200=
-pportunities S5- Strate"ies !5- Strate"ies
. n avera'e* the
co%petitors are %oreepensive in servicesthey o))er co%pare toUSPS
2. Aovern%ental controlo))ers the ability to 'etetra )undin' as needed
. More consu%ers areshoppin' online )or'oods and services
>. Aro$in' pac@a'e
delivery to international%ar@ets?. Creatin' 7oint venture
$ith populareCo%%erce shoppin'sites such as eay*
!%aon* verstoc@*and %any others
/. pansion into %ar@etssuch as urope* S.
!%erica* China and
apan=. "or% 7oint venture $ith"ed and UPS toareas that USPS doesnot deliver currently
. Aet additional )unds
)ro% the 'overn%ent byreplacin' old andoutdated e3uip%ent*%achinery* truc@s andauto%obiles $ith a %oreeco )riendly* )uele))icient ones #2* ?*S?* S/&
. 5%prove the $eb site
$ith better technolo'yand %a@e the site user)riendly and then 7oin)orces $ith pri%aryonline %erchants suchas eay* !%aon and%any others )or onlinepay%ent processin'#* 2* * >* ?*42* 4+&
2. pand to international
%ar@ets such as apan*China* urope and S.!%erica #4* 42* >*/&
%#reats S5% Strate"ies !5% Strate"ies
. 4ea@ econo%y hasi%pacted %anybusinesses andconsu%ers due to
do$nsiin' and cutbac@s2. 1ise in )uel and 'asoline
prices has i%pactedbusinesses andconsu%ers ne'atively*resultin' in cuttin' bac@in spendin' %oney on
. Cut bac@ on Saturday%ail delivery #S?* S/*,2* ,* ,>&
2. 1educe bene)its and cut
additional labor )orce by?G #S* S* S?* S/* ,2*,&
. Develop a ne$ %ar@etin'and pro%otional plan byo))erin' discount i) onlineservices are used throu'hUSPS.co% #4* 4>* 4+*49* 40* ,* ,2&
2. 1educe %ail delivery )ro% /to ? days a $ee@ #4* 42*4* 4/* 4+* 49* 40* ,2*,* ,>&
Copyri'ht ; 20 Pearson ducation* 5nc. publishin' as Prentice
8/13/2019 David Sm13e Cn 14
10/16
posta'e and pac@a'edelivery
. %ail has replacedsendin' letter* cardsand other docu%ents
>. nline bill pay andreceivin' bills andstate%entselectronically havecaused a %a7or drop inposta'e usa'e
?. Co%petitors have a%ore advanced anduser )riendly $eb sitethat attracts businessesand consu%ers
/. Co%petitors have struc@deals $ith popularbusinesses and retailers)or usin' their services$hen shippin'%erchandise
Copyri'ht ; 20 Pearson ducation* 5nc. publishin' as Prentice
8/13/2019 David Sm13e Cn 14
11/16
6. SPACE Matrix
inancial Stabilit1 S/ Environmental Stabilit1 ES/
1eturn on 5nvest%ent Une%ploy%ent -2
8evera'e ? ,echnolo'ical Chan'es ->
8i3uidity 2 Price lasticity o) De%and -2
4or@in' Capital / Co%petitive Pressure -
Cash "lo$ / arriers to ntry -/
inancial Stabilit1 S/ Avera"e +.+ Environmental Stabilit1 ES/ Avera"e 5,.+
Competitive Stabilit1 CA/ 3ndustr1 Stabilit1 3S/Mar@et Share -/ Aro$th Potential Product Buality - "inancial Stability 2Custo%er 8oyalty -> ase o) Mar@et ntry 2Co%petition(s Capacity Utiliation - 1esource Utiliation ,echnolo'ical Hno$-
8/13/2019 David Sm13e Cn 14
12/16
Competitive Stabilit1 CA/ Avera"e 5+.) 3ndustr1 Stabilit1 3S/ Avera"e &.+
I-ais: "S J S K >.> J #-.>& K .0L-ais: C! J 5S K #->.2& J #.>& K - 2.+
7. 6rand Strate"1 Matrix
. 1etrench%ent2. 1elated diversi)ication. Unrelated diversi)ication>. Divestiture?. 8i3uidation
Copyri'ht ; 20 Pearson ducation* 5nc. publishin' as Prentice
8/13/2019 David Sm13e Cn 14
13/16
3. %#e 3nternal5External 3E/ Matrix
%#e 3E %otal !ei"#ted Score
Stron'.0 to >.0
!vera'e2.0 to 2.99
[email protected] to .99
0.2
2. Aovern%ental control o))ers the ability to 0.0= --- --- --- ---
Copyri'ht ; 20 Pearson ducation* 5nc. publishin' as Prentice
8/13/2019 David Sm13e Cn 14
14/16
'et etra )undin' as needed
. More consu%ers are shoppin' online )or'oods and services
0.09 0.09 > 0./
>. Aro$in' pac@a'e delivery to international%ar@ets
0.09 --- --- --- ---
?. Creatin' 7oint venture $ith populareCo%%erce shoppin' sites such as eay*!%aon* verstoc@* and %any others
0.0/ 0.0/ > 0.2>
/. pansion into %ar@ets such as urope* S.!%erica* China and apan
0.09 --- --- --- ---
=. "or% 7oint venture $ith "ed and UPS toareas that USPS does not deliver currently
0.0= 2 0.> > 0.2+
%#reats
. 4ea@ econo%y has i%pacted %anybusinesses and consu%ers due todo$nsiin' and cut bac@s
0. --- --- --- ---
2. 1ise in )uel and 'asoline prices has
i%pacted businesses and consu%ersne'atively* resultin' in cuttin' bac@ inspendin' %oney on posta'e and pac@a'edelivery
0.09 > 0./ 0.09
. %ail has replaced sendin' letter* cardsand other docu%ents
0. --- --- --- ---
>. nline bill pay and receivin' bills andstate%ents electronically have caused a%a7or drop in posta'e usa'e
0.0 --- --- --- ---
?. Co%petitors have a %ore advanced anduser )riendly $eb site that attractsbusinesses and consu%ers
0.0= > 0.2+ 2 0.>
/. Co%petitors have struc@ deals $ith popularbusinesses and retailers )or usin' theirservices $hen shippin' %erchandise
0.0+ 0.0+ 0.2>
%-%A< &.'' &.'( &.=2
Stren"t#s
. Non-auto%ation presort and "irst Class5nternational letters eperienced increasesin volu%e
0.0= --- --- --- ---
2. Dependent on 'overn%ent )or additional)undin' i) needed
0.0= --- --- --- ---
. Drop in )ield and career e%ployees could
help reducin' the operatin' epenses#hibit &
0.0/ 0.+ 2 0.2
>. Deliveries to %ore than >0 %illionaddresses every day
0.0+ 0.0+ > 0.2
?. USPS is the $orldFs leadin' provider o) %ailand delivery services* o))erin' so%e o) the%ost a))ordable posta'e rates in the $orld
0.0/ 0.0/ 0.+
/. n-ti%e delivery o) )irst class %ail reached 0.0= 2 0.> > 0.2+
Copyri'ht ; 20 Pearson ducation* 5nc. publishin' as Prentice
8/13/2019 David Sm13e Cn 14
15/16
record levels in 200+
=. 5n ctober 200+* USPS published ision20* a )ive-year strate'ic plan* coverin'the period 2009 to 20
0.0? --- --- --- ---
!ea4nesses
."irst Class Mail revenue decreased E22/%illion* or 0./ percent* $hile volu%edecreased by >./ billion pieces* or >.+percent* in 200+
0.0/ > 0.2> 0.0/
2. Decline in sin'le-piece "irst Class letters*$ith a decrease o) over billion pieces o)%ail
0.0? 0.? 0.0?
. ,he lon' ter% in sin'le-piece volu%econtinued to decline* due to the i%pact o)electronic diversion as businesses*nonpro)it or'aniations* 'overn%ents* andhouseholds continue to %ove their
correspondence and transactions toelectronic alternatives* such as 5nternet billpay%ent* auto%atic deduction* and directdeposit #hibit =&
0.0? --- --- --- ---
>. ?2%illion dollars )ro% 200= to 200+
0.0/ > 0.2> 2 0.2
=. USPS co%pleted )iscal year 200+ endin'Septe%ber 0 $ith a net loss o) E2.+ billion
0.0? 0.? 2 0.
+. Mail volu%e in 200+ totaled 202.= billionpieces* a decline o) 9.? billion pieces* or >.?percent* )ro% 200=
0.0> > 0./ 0.2
9.
8/13/2019 David Sm13e Cn 14
16/16
consu%ers are s$itchin' )ro% %ail to e-billin'. cept retailers* %ostbusinesses are closed on Saturday and Sunday. !ccordin'ly* i) the %ailis delivered Monday throu'h "riday* USPS can save billions o) dollars inoperational costs epenses )ro% utility* )uel* salary and %any otherepenses. ,he branches should re%ain open )or patrons on Saturdays
hal) days as they have been in the past.
* and the actual nu%ber $ascon)ir%ed yesterday. ,he nu%ber o) 5ntelli'ent Mail "ull Service %ailersincreased to =* a /0 percent increase )ro% %id-Dece%ber. ,o date*5ntelli'ent Mail "ull Service has 'enerated E billion in revenue.
,he Postal Service receives no ta dollars )or operatin' epenses* andrelies on the sale o) posta'e* products and services to )und its operations.
Copyri'ht ; 20 Pearson ducation* 5nc. publishin' as Prentice
Top Related