United States Postal Service Case Study

For the past two centuries, the United States Postal Service has been responsible for providing postal service to every civilian within the United States. They perform this massive task every day, and the services they deliver are ridiculously inexpensive for consumers. The United States Postal Service or USPS delivers a total of six days a week. In those six days, the USPS delivers an average of 563 million pieces of mail, which makes up 40 percent of the entire world’s volume of mail (). Unfortunately, the USPS is losing an astonishing amount of money, around 45 billion dollars since 2007 (). This is in part because mail capacity is plummeting even as the USPS must deliver to more addresses every year. By solving the macroenvironmental, competition
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The most notable macroenvironmental managerial issue the USPS is dealing with is the economy. The USPS did not really do anything incorrect in regard to the economy, the market just shifted. In today’s society, people do not want mail to be delivered overnight. In fact, society has translated into where communication must be immediately and not in physical documents. The USPS exceeds at what it does, but unfortunately, the United States of America does not necessarily need it as much as it did in the past. The USPS saw this market shift coming and try to adapt to it by entering a new business such as record retention, social security check administration and provide government delivery and storage services to various agencies and to under-served users such as low-income and the elderly (). Developments into new markets would require the USPS to be approved by Congress. Congress decided that the USPS orders did not include these services so it was not approved. The USPS was wedged doing what it has always delivered on, as market shift shoved it progressively into
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Technology has dramatically changed the operations of the USPS in good ways and bad ways. It has allowed the USPS to deliver mail faster and less expensive, but has also caused the USPS to experience massive loss in operating revenue. The biggest reason for the massive loss in operating revenue is email and digital messaging. The occurrence of email as a favorite method for business and personal communication, as well as the increasing growth of digital messaging, has caused the USPS to be dealt with a large blow that has resulted in many negative results. According to the United States Government Accountability office, “mail sent between 2007 and 2009 dropped in volume by 36 percent, or a whopping 36 billion pieces of mail