Canada Post Corporation will face many difficulties in the future stemming from two present concerns:
Ø Customer Perception- Customer perception is fairly negative and is either associated with problems evident in the past or those associated with the United States Postal Service.
Ø Unionized Labour- Unions are a constant problem for any company associated with them.
To remedy these situations we propose the following:
Ø Divestiture- CPC should break into strategic business units. Each unit would then be responsible for individual quality control, sales, personnel as well as research and development. This divestiture will help them to reduce the detrimental effects of CPC's union as they will be contained in only one or two of the strategic business units and not the whole of the company. This will also facilitate CPC's drive into e-commerce as they will be able to hire technical experts into a strategic business unit without the consent of the union.
Ø Improve customer awareness- Incorporate an active advertisement campaign aimed at improving customer awareness of CPC's improvements in operations and service.
CPC is the fifth largest employer in Canada, employing almost 64,000 personnel to maintain daily business operations within Canada and abroad. The corporation is a Federal Crown Corporation responsible to customers, stakeholders, government, Canadian Union of Postal Workers(CUPW), and employees. In 1982/83 Canada Post incorporated. Since then it has operated a customer based organization that has recorded an increase its revenue by 138% since its incorporation. CPC boasted revenues of $5,380 million for year 1998/99.
CPC currently owns a significant portion of Purolator Courier Limited (95.8%) which is a leading domestic courier company within Canada. CPC also holds shares in International Post Corporation (IPC) which provides international consulting services for the mail distribution...