Chapter 2, Problem 3OTQ

Summary Introduction

Introduction:

USPS is the largest postal service organization in the world which handles 41% of the mails all around the world. It has around 760,000 workers with 300,000 mail collection boxes, 38,000 post offices, and 75,000 mail processing equipment.

The processing of first class mails is an automated process. The first class mail begins at an advanced facer cancellation system where the system itself cancels mails which do not carry the proper format. The rejected mails are processed manually. Next, the mails are processed through optical character readers which put the bar code on the mail. The local mails are processed separately.

Automation and the use of zip codes are the reasons for improvement in productivity. The USPS focuses on productivity, which is an important factor for keeping low postal rates and rapid delivery service. During 1980, USPS encountered a slowdown in the volume of mails due to increased competition from private delivery services.

With increased competition, USPS began to restructure the organization and change its strategy. USPS began to work closely with the customers and keep their costs low, improve productivity, and focus on the quality of the service. The reorganization helped the firm to overcome some of its potential challenges, cut down costs, and attract new businesses.

To determine: The impact of competitive pressure on USPS.