The US Postal Service (USPS) is an old organisation which is governed and controlled by the government. This was a simple way of starting a public organisation which would cater to various services to the citizens of the country. The case study is an interesting concept for strategic management which offers some fresh insights into the issues that are pertinent to the growth of such an organisation. Following are some of the diagnosis issues that have been identified from the case study and are viewed from the perspective of strategic management and by comparing it with similar established businesses which are more profitable and successful:
1. The primary issue that is observed in the case is the sporadic demand of mails that the organisation is facing, which makes it more difficult to manage their fixed costs especially the manpower costs which are almost seen to be about 85% of the budget. Looking from a strategic management perspective, it indicates that the organisation lacked a substantial management role and an insightful foresight of the future demand and moulding the processes in a way that will benefit them and the customers by receiving exceptional service. It is imperative to integrate exceptional services into the product offerings of a company (Kilmann and Kilmann, 1991; Gadiesh and Gilbert, 1998; Quinn, Doorley and Paquette, 1990), and USPS has not been able to integrate the services of timely delivery into the core product offering of mailing system. The primary issue of not realising or not noticing the trends in the market movements has caused a lot of damage to the service quality and inability to judge the strategy formation. Firms, be it private or public are required to maintain and sustain some kind of competitive advantage in their respective industry (Teece, Pisano and Shuen, 1997), and USPS has not been able to maintain a standardised service pattern. The primary source of the issue can be traced down to the inability of the organisation to recognise the future demand and make strategies accordingly.