strategic-management

CASE 14 • THE UNITED STATES POSTAL SERVICE (USPS) — 2009 143
Strategic Planning
The Government Performance and Results Act (GPRA) requires all federal agencies to
develop and publish a five-year strategic plan. The Postal Service updates its plan annually
to accommodate ongoing business environment changes. This annual planning process
incorporates an assessment of recent performance, refinement of strategies, and prioritization
of objectives, programs, and budgets to optimize results. In October 2008, USPS published
Vision 2013, a five-year strategic plan, covering the period 2009 to 2013. Vision 2013
was designed to build on the successes of the Postal Service’s Strategic Transformation
Plan, which helped guide multiple improvements in service, efficiency, and workplace
conditions.
Competitors
EXHIBIT 6 USPS 2008 Mail Revenue
Percent Breakdown
First Class Mail 52%
Shipping Services 11%
Standard Mail 27%
Other Mailing Services 10%
Other Mailing Services 5%
Source: www.usps.com.
EXHIBIT 7 USPS Mail Volume by Type (pieces in millions)
2008 2007 2006
First Class Mail 91,697 96,297 98,016
Standard Mail 99,084 103,516 102,460
Periodicals 8,605 8,796 9,023
Package Services 846 914 919
Other Mailing Services 896 1,081 1,084
Total Mailing Services 201,128 210,604 211,502
Total Shipping Services 1,575 1,630 1,636
Total Mail Volume by Type 202,703 212,234 213,138
Source: www.usps.com.
FedEx
Headquartered in Memphis, Tennessee, and founded in 1971, FedEx is a major competitor
to USPS. This company has over $37 billion in annual revenues and more than 220,000
employees. FedEx Express unit is the world’s number-one express transportation provider,
delivering about 3.5 million packages daily to more than 220 countries and territories. It
maintains a fleet of about 675 aircraft and more than 44,000 motor vehicles. In addition to
its express delivery business, FedEx Ground provides small-package ground delivery in
North America, and less-than-truckload (LTL) carrier FedEx Freight hauls larger shipments.
FedEx Office stores offer a variety of document-related and other business services
and serve as retail hubs for other FedEx units. For 2008, FedEx made over $1.1 billion in
net income representing a 3 percent profit margin.
United Parcel Service
Headquartered in Atlanta, Georgia, UPS was founded in 1907 as a messenger company in
the United States and has grown into a gigantic corporation. UPS is a global company
with one of the most recognized and admired brands in the world. It is the world’s largest