Royal mail presentation


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Liberalisation of UK postal services

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Royal mail presentation

  1. 1. <ul><li>Founded: 1516 </li></ul><ul><li>Headquarter: London </li></ul><ul><li>Key people: Donald Brydon, Chairman </li></ul><ul><li>Moya Greene , CEO </li></ul>
  2. 2. SEMINAR GROUP MEMBERS <ul><li>ANTHONY ODERINDE </li></ul><ul><li>POURIA LIRAVI </li></ul><ul><li>RAYMOND MAGUHWA </li></ul><ul><li>REKHA NAIR </li></ul>
  3. 3. Logistic Network of Royal mail <ul><li>Royal Mail serves every one of the 49 million posting addresses in the UK. </li></ul><ul><li>Royal mail employs nearly 170,000 people . </li></ul><ul><li>It runs some 28,000 vehicles, together with a network of over 60 trains. ( Train Transport was eliminated due to cost reduction) </li></ul><ul><li>31 dedicated and 120 contracted flights per day. </li></ul><ul><li>Royal Mail International serves a global network of 300 destinations worldwide, sourced by 1,400 flights per week. </li></ul>
  4. 4. Source: Postcomm
  5. 6.
  6. 7. <ul><li>Royal Mail - processing and delivering letters and packages in the UK. </li></ul><ul><li>Parcel force Worldwide - collection and delivery services for express packages and parcels within the UK and throughout the World.  </li></ul><ul><li>Post Office Limited (POL) - managing the nationwide network of post office branches as retail outlets. Just under four hundred post offices are run by people directly employed by Post Office Ltd (POL). These offices are called ‘directly managed’ or Crown offices </li></ul><ul><li>General Logistics Systems B.V. (GLS)  - the holding company for a pan-European group of companies providing parcel services, logistics and express services throughout Europe. </li></ul>IN 2002, THE ORGANIZATION BECAME &quot;ROYAL MAIL GROUP PLC&quot; WITH THE FOLLOWING OPERATING DIVISIONS: Internal network Relationship
  7. 8. External network of Royal mail in UK <ul><li>There are around 11,500 post offices in the UK : Subpostmasters are 97% of all post office outlets are sub post offices, run by private business people, subpostmasters. </li></ul><ul><li>In case of separation of Royal mail and (POL) The NFSP is pressing for a lengthy , binding Inter Business Agreement (IBA) to be put in place before the two companies separate.( Income and footfall from mail is essential to the survival of the post office network. Currently, transactions on behalf of Royal Mail account for one third of both POL and subpostmasters’ income; and half of all customer visits to post offices are driven by mails business. ) </li></ul>
  8. 9. Latest News <ul><li>Under the Government plans, the 170,000 Royal Mail employees would have a chunk of the company in a trust. They would not be able to sell the share - they would share the dividend. That means the system rewards loyalty - those that stick with the operation keep getting the benefits. 'John Lewis' deal </li></ul><ul><li>An alternative is to offer the workforce a (very small) number of free shares and a (rather larger) number of discounted shares. That was the norm for the Thatcher privatizations. </li></ul><ul><li>(Source : Mail online 16 October 2011) </li></ul>
  9. 10. How to develop External Relationship <ul><li>Franchise the brand in International markets, the national franchising is done by NFSP. </li></ul><ul><li>Benefits of franchising : For the franchisor, the franchise is an alternative to building 'chain stores' to  distribute  goods and avoid investment and liability over a chain. The franchisor's success is the success of the franchisees. The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business. </li></ul><ul><li>Outsourcing or joint venture with national & international partners : Rivals such as DHL, FedEX ,TNT and Bpost have implemented this in their businesses and were successful. </li></ul>
  10. 11. Targeting new markets <ul><li>Merging Parcel force Worldwide and General Logistics Systems B.V. (GLS) or combine the Supply chain of these divisions . </li></ul><ul><li>Gain greater market share in the Express Shipment services throughout the world ,especially in the developing countries where the rival companies have lower market share. (Example : DHL operates in almost every where in the globe). </li></ul><ul><li>By contracting Airlines who have flights all around the world (FedEx) Used BA Concorde planes for transporting packages to Ireland. </li></ul>
  11. 12. Who is going to Benefit??
  12. 13. <ul><li>The British Government :By passing the debts of the company to the share holders ( Tax payers). </li></ul><ul><li>Share Holders : Employees and management are going to be on the same team. The interests of staff and share holders are reconciled rather effectively if they are the same people.(mail online 16 Oct 2011) </li></ul>
  13. 14. Future Response <ul><li>U niversal service – ensuring the continued provision of an affordable, universal postal service </li></ul><ul><li>P rotecting customers’ interests – ensuring that customers are protected in terms of pricing and quality of service where they have little effective choice </li></ul><ul><li>P romoting sustainable competition between postal operators </li></ul><ul><li>A dvising on the Post Office network – the national network of directly owned and franchised post offices and sub-post offices; </li></ul><ul><li>B uilding effective stakeholder relations with major customers and operators, thegovernment, trade unions, the Postwatch customer watchdog and parliament. </li></ul>
  14. 15. Sources <ul><li>References </li></ul><ul><li>Royal Mail WILL be sold off: Posties get shares in 'John Lewis' deal – Mail online </li></ul><ul><li>National Federation of subpostmasters website. </li></ul><ul><li>Postal Services Act 2000 , </li></ul><ul><li>Department of Trade and Industry (1999), Postal Office Reform – a world class service for the </li></ul><ul><li>21s century , </li></ul><ul><li>Websites </li></ul><ul><li> – the Royal Mail letters business </li></ul><ul><li> – Postcomm </li></ul><ul><li> – Royal Mail’s GLS European network </li></ul><ul><li>Royal mail – Wikipedia </li></ul>
  15. 16. Thanks for your attention