Central Problem Definition
United States Postal Services is in a predicament because of financial problems. This attributed by the changes in the business world given that the organization still uses a traditional business model, which does not embrace the current changes in the world within the market it operates. This has led to increased costs of business given the decline in profits. Furthermore, this is due to the inability by the organization to maintain a competitive edge within the market due to inability to be flexible and embrace change such as technology. Financial troubles emanated form increased operational costs and declining profit margins making an entity unprofitable if it remains in operation (Devin, 13).
These environmental factors directly affect the organization but the organization lacks the ability to control such factors to their advantage.
The organization does not focus on the element of gender as it is aimed at providing its services across the divide given that people either male of female use the services offered by the entity. In addition, assumption of a racial perspective would reduce the organization to a mere racist organization given that the services offered by the organization traverse the racial and color divides. Age also plays a significant role in this service because majority or all individuals at younger ages use new technological means of sending messages. However, older people usually view this form as convenient for delivery of parcels as well as bills and other correspondences.
Home ownership is also a factor as increase in numbers ensures that individual in need of home deliveries for their bills and correspondences. Employment status also determines the number of individuals who would be able to use this service for their various individual needs and pay for it. Location plays a significant role fro the organization, as ease in accessibility of the entity by customers would ensure regular use of their services.
Inflation, as evidenced in the article, affects the entity negatively. This is because it becomes expensive for USPS to conduct its operations. Events like the recession have had a negative impact on the business leading to an imminent insolvency for the business. In addition, increase in spending power of consumers within any market is an indication of lower inflation, which eventually drives down the costs of doing business and increase the profits of USPS. In addition, majority of the expenses of USPS have been attributed to the high benefits for individuals (Winer, 37).Socio-Cultural
Age, as stated earlier, has a direct impact on USPS because it determines those who use this service. Higher numbers of younger technology savvy individuals do not use this service. However, older individuals prefer this means as it is the only means they know for delivery of mail. In addition, increase in population of the American population means that individuals in need of postal services offered by USPS increases drastically. Culture in the united states of sending mail has been able to support USPS given the increased use of technology-based means of communication. Use of the post office is slowly declining due to new culture of technology such a social media, which enables ease and speed in sending and delivery of messages regardless of the distance covered.
Technological changes have had a great impact on USPS leading to increase in losses as well as decrease in usage of their services. This is because of the ease of technology-based products in sending messages and vital document in a short time. In addition, USPS should adopt new technology for enhancing their services as well as development of consumer-oriented products. In addition, technology could also be used by the entity to enhance its distribution channels in comparison to its outdated and traditional means of delivery of mail and other services. In addition, it could also be used to enhance means of communication within and without the organization (Levitz, 41).
Taxation Policies directly affect the organization given that such charges are credited against the revenues accrued by the organization. Trade regulations on the other hand have role to play in the profitability of USPS. This is because any change in terms of regulation, which might encourage competition or might discourage the same tends to have a direct impact n the entity. Increased competition for the organization would lead to great losses as evidenced in the article given the declining market share of USPS to its rival suffering better services to the United States populace. On the other hand, decreased competition would turn the market into an oligopoly or monopoly if all the competitors closed operations. Such would give USPS a large control of the market share thus accruing many benefits such as increased prices and thus more profits for the organization.
Governmental stability on the other hand is paramount for USPS which as a government agency. Any instability in terms of governance within the united sates would lead to eventual closure of the entity. Unemployment Policies on the other hand have an impact on the entity, albeit though indirectly. This is because the entity dwells on government subsidies, which might be diverted to payment of unemployment benefits given the increased numbers of unemployed individuals. In addition, this would also result in retrenching workers, foregoing innovative projects such as research and development of new products (Winer, 34).
Devin, Leonard. “The U.S. Postal Service Nears Collapse” Business Week.2011.Print.
Levitz, Jeniffer. “Postal Doors staying open.” Wall Street Journal.9th May 2012. Web.13th July 2012.
Winer, Russell S. Marketing Management. Upper Saddle River, N.J: Prentice Hall, 2000. Print.