Canada Post Essay Research Paper Executive SummaryCanada
Canada Post Essay, Research Paper
Executive Summary
Canada Post Corporation will confront many troubles in the hereafter stemming from two present concerns:
? Customer Perception- Customer perceptual experience is reasonably negative and is either associated with jobs apparent in the yesteryear or those associated with the United States Postal Service.
? Unionized Labour- Unions are a changeless job for any company associated with them.
To rectify these state of affairss we propose the followers:
? Divestiture- CPC should interrupt into strategic concern units. Each unit would so be responsible for single quality control, gross revenues, forces every bit good as research and development. This divestiture will assist them to cut down the damaging effects of CPC? s brotherhood as they will be contained in merely one or two of the strategic concern units and non the whole of the company. This will besides ease CPC? s thrust into e-commerce as they will be able to engage proficient experts into a strategic concern unit without the consent of the brotherhood.
? Better client awareness- Incorporate an active advertizement run aimed at bettering client consciousness of CPC? s betterments in operations and service.
Introduction
CPC is the 5th largest employer in Canada, using about 64,000 forces to keep day-to-day concern operations within Canada and abroad. The corporation is a Federal Crown Corporation responsible to clients, stakeholders, authorities, Canadian Union of Postal Workers ( CUPW ) , and employees. In 1982/83 Canada Post incorporated. Since so it has operated a client based organisation that has recorded an addition its gross by 138 % since its incorporation. CPC boasted grosss of $ 5,380 million for twelvemonth 1998/99.
CPC presently owns a important part of Purolator Courier Limited ( 95.8 % ) which is a prima domestic messenger company within Canada. CPC besides holds portions in International Post Corporation ( IPC ) which provides international consulting services for the mail distribution industry.
Over the old ages CPC has developed a customer-based doctrine bettering their day-to-day mail operations, client dealingss, public perceptual experience, professionalism, and the relationship between direction and CUPW. To solidify Canada Post as a corporation that cares for its clients, they have introduced an ombudsman to move as a 3rd party go-between in client satisfaction ailments. Unfortunately, consumers ma non be cognizant of the betterments that the CPC has made of the last few old ages.
? We are in concern to function all Canadian, concerns and organisations, through the unafraid bringing of messages, information and bundles to any reference in Canada or the World, at a degree of quality and value that makes clients want to reiterate the experience. ?
-Canada Post mission statement
Canadians have had small pick as to their mail bearer, nevertheless, with an addition in mail messengers, technological promotions in e-mail and online shopping Canadian clients now have more picks. Increased competition and engineering has forced Canada Post to use advanced and technological betterments to stay in concern and grow. Canada Post has made milepost betterments since their incorporation, nevertheless, of import issues still plague the Canadian company. Some of these factors will be reviewed in item within this analysis and will include such issues as:
? Public Perception & # 8211 ; Evidence shows that Canada Post Corporation has made effectual betterments in the degree of service quality they provide to clients, nevertheless, the corporation is still plagued with hapless client perceptual experience. Canada Post was considered undependable, overpriced, inconsistent and monopolistic in nature. As good, mail clients felt their service ailments fell on deaf ears. Customers associate the name? Canada Post? with these hapless public perceptual experience traits and it is a stigma that even threatens Canada Post Corporation to this twenty-four hours.
? Union Relations & # 8211 ; Poor dealingss between direction and the CUPW inhibit corporate growing, invention, engineering every bit good as overall concern operations. It is a relationship that affects public perceptual experience of Canada Post employees and the companies associated franchises.
? Bureaucratic & # 8211 ; Canada Post Corporation employs about 64,000 people and must be accountable to authorities, stakeholders, CUPW, employees, and its clients. As a consequence, Canada Post is extremely bureaucratic in nature doing it hard to rapidly use advanced and technological promotions to efficaciously vie with environmental and corporate alterations.
? Courier Hold & # 8211 ; As indicated earlier, Canada Post Corporation owns about all of Purolator Courier Limited. Purolator presently holds merely 18 % of the little package bringing service within Canada. This per centum is low sing merely holding a smattering of organisations that compete within this section of the bringing service. This industry is expected to increase well due to increased of online purchases through the cyberspace.
Situational Analysis
External Environment
Opportunities
Canada Post has the chance to capture a greater portion of the little package bringing market. They must besides utilize monetary value point and quality service to win back a better portion of the market.
There is a huge chance for Canada Post to capitalise on e-commerce. There is a big untapped market for? Secured electronic mail? minutess online, Canada Post can take the manner for this market universe broad. Canada Post can besides use the cyberspace to supply better quality services ( where is my bundle, package pickup, etc? ) every bit good as marketing their current services and merchandises. The addressed missive mail market is easy shrinking, but the unaddressed bulk-mail market is increasing opening concern chances such as ad mail and studies. In add-on there is a turning market for magazine and catalog bringing.
Peoples seem to keep an image of what Canada Post was similar 10 to fifteen old ages ago. Canada Post has made paces to better the jobs that affected their service in the past but they have done really small in bettering the populace? s consciousness of CPC? s attempts. CPC has the chance to do consumers cognizant of its betterments and therefore better consumer? s sentiment.
Canada Post with continued advanced direction can go on every bit good as addition its international consulting concern.
Menaces
CPC is a crown corporation and as a consequence alterations in authorities policies shape the manner the company operates. This is an external menace that may originate at any clip. The Government may go through Torahs, which affect the organisation, and Canada Post has little or no control over them. This may make hold-ups that can take to uncertainnesss within the organisation.
The perceptual experience of Canada Post has been historically hapless. Over the old ages clients have developed a negative image about the corporation. These unfavorable judgments have arisen due to misdirected and slow mail. During the last few old ages Canada Post have made many positive alterations to turn to consumers concerns. Despite these alterations, the clients continue to believe of CPC as inefficient. This is due chiefly to a deficiency of consumer consciousness about the betterments. Hence client perceptual experience of Canada Post continues to be low.
The Canada Post Corporation has expanded immensely over the old ages. More and more mercantile establishments have been opened to supply consumers with easy entree to Canada Post. However this rapid enlargement has led to Canada Post exerting less control over the qualit
Y of service provided by these franchises. This may take to possible constrictions and lessening service quality.
Letter-mail volumes, which still provide the majority of Canada Post? s concern, face competition from messenger services and electronic options such as facsimile, electronic mail and electronic financess transportation. The dominant users of Canada Post & # 8217 ; s letter-mail services are Bankss, public-service corporations, recognition card companies and other concerns. These companies are likely to accommodate to more advanced electronic options. This state of affairs poses an acute menace to Canada Post Corporation unless they are able to introduce.
In the distribution market, transnational messenger companies, such as United Parcel Service ( UPS ) and Federal Express, have used their monolithic United States webs and advanced engineering to spread out into Canada and supply stiff competition to Canada Post.
Internal Environment
Strengths
One of the cardinal strengths that Canadian Post Corporation has is that they are a monopoly in the Canadian postal service market. For over a century Canada Post has successfully met the demands Canadian citizens by the bringing of letters and packages. Time has allowed them to polish and sophisticate the mail processing and distribution system. Today, they are one the highest rated postal services in the universe. Canada Post Corporation besides conducts International Consulting operations and the system they have in topographic point Acts of the Apostless as a theoretical account for the postal service demands of other states.
About ten old ages ago CPC made a strategic determination to buy a big portion of Purolator Courier. This allowed them to diversify their concern into an country that was comparatively familiar to them. This strategic move in today? s universe of e-commerce and package bringing, will let them to capitalise on the new germinating retail markets online. Canada Post has recognized the demand to better client dealingss and overhaul company image. They have extended the company? s doctrine to be? In Business to Serve. ? Acknowledging the demand for alteration is difficult for companies to make, but it will be worthwhile in the long tally.
Over the old ages, Canada Post Corporation has remained changeless in the country of grosss. Last twelvemonth entirely they increased their net net income by $ 14million ensuing in an one-year net income of $ 50 million dollars.
Failings
Many of Canada Post? s failings are found straight within the organisation itself. With over 46,000 employees belonging to the CUPW, the concern of the brotherhood places great emphasis on the corporation. There is a changeless conflict between the corporation? s need for labour stableness and runing flexibleness every bit good as the brotherhoods need to better their members working conditions and footings. Actions, such as a work stoppage, can be damaging to the endurance of Canada Post in this extremely competitory industry as evidenced by a $ 100 million loss of grosss in 1998 straight related to a brotherhood work stoppage. In add-on, by holding a nonionized corporation, Canada Post is limited in its hiring policy.
The mail distribution industry is invariably altering with invention and the addition in engineering. Canada Post is slow to accommodate to this fast gait of a altering environment. They have the capital and resources to be able to vie in this environment, but ever seem to be one measure behind everyone else in the market.
Canada Post realizes the importance of client credence, but they haven? T been able to doing clients cognizant of their superior service. Throughout the old ages, Canada Post has made important alterations and betterments to their service, but has done small to do the consumer aware of them. Selling is a major failing of Canada Post.
Strategic Options
Most long-run options are derived from both the chances and failings of the corporation.
? Canada Post Corporation has many options that revolve around e-commerce. With a bulk control of Purolator and a basic monopoly in the missive bringing concern they should concentrate on capturing a larger portion of the little package bringing market. With long-run selling programs forcing the usage of Puralator and Canada Post the two could increase well their clasp on this market.
? Canada Post Corporation should look to make strategic confederations within the e-commerce universe and market themselves as the bringing vehicle within Canada for the cyberspace.
? An extra focal point of the CPC could be that of un-addressed mail. The debris mail market is increasing quickly and should besides be a focal point of CPC.
? Secure papers transportation market should be a major focal point of CPC. This is a virtually untapped market and can be easy marketed across boundary lines. CPC needs to hone this engineering and market itself as a universe leader in this field.
? Create strategic concern units to flatten CPC concern construction and minimise the damaging effects of brotherhoods. This will besides ease CPC? s ability to respond rapidly and be more advanced.
Recommendations
CPC will profit by making the followers:
? Management should stay liquid and invariably readjust and measure the way of their company and the industry.
? With CPC as the parent corporation, strategic concern units should be created to flatten the concern construction. Other SBU? s could be added as new chances arise or create first mover advantage in an emerging market.
? Allow each SBU to be independent for development, care but have all SBU? s responsible to CPC and accountable.
? Offer comparable rewards to let for SBU? s non-union labour personal to be every bit good, if non better than the competitions.
? Expand the e-commerce capableness purchase offering bing merchandises every bit good as new advanced services and merchandises. Examples: Package pickup ( utilizing Purolator more blatantly ) , earning strategic confederations with extra companies to procure more little bundle bringings.
? Integrate a secure electronic mail bringing system appealing to differing grades of security required. The cost to the consumer will be a fraction of current costs and can be accomplished with less fuss ( bank and measure statements, paperss necessitating signatures, etc? ) . The costs for CPC in using this scheme will be a important cost nest eggs compared to that of regular missive bringing. CPC should so see a steeper diminution in the usage of regular missive deliver. CPC will so be able to cut down costs by utilizing less nonionized labor ( costs ) while doing a larger net income border on the secured bringing.
Decision
The Canada Post Corporation has recognized the demand and importance of being advanced and reacting to alter. Today they are seeking to maintain up with the gait of engineering every bit good as seeking to better their public image. We have identified that a major obstruction that soon faces them lies within brotherhood and direction. We found that the brotherhood is keeping them back with regard to the rate of alteration and as a consequence we recommended that they should restrict the brotherhoods influence by diversifying into separate SBU? s. In order to be successful tomorrow, we have besides recommended that Canada Post spread out operations to include e-commerce and strategic confederations every bit good as secured electronic mail bringing. The Canada Post that you know today will non be the same tomorrow, if they can set words into action we wouldn? T be surprised to see them agitate off the repute and come out a solid leader in the old ages to come.
Information beginnings:
Canadapost.ca
Yahoo intelligence beginnings
Public sentiment
