Theory of BusinessI would describe the Royal Mail’s theory of the business as one that is unsuccessful and no longer works. The reason many corporations are no longer successful is that their theory of business no longer works as Chapter 1 mentions. The theory of business has four characteristics which are mentioned in our textbook on
The case mentions at the end that privatisation is the best possible solution to solve company’s issues in the postal service sector because this would ensure that the public does not end up serving the post office since the public pays. The extent of determination for the political factors outside the control of Royal Mail’s management is at a high level because it mentions that the government has abandoned the plan of privatisation for the postal service even though it’s the home of privatisation. The case mentions that the Governments, for the most part, have run their postal services shockingly badly and holding back from modernisation and the ability to increase flexibility. Therefore, if privatisation is continuously disallowed, then Royal Mail will continue to be less efficient and will eventually lead to becoming obsolete. This basically means that management can only do so much if government is interfering with the way that Royal Mail currently operates, rather than the way Royal Mail
The Case
Let’s first talk about the most pressing problem of the postal service. Despite the widespread fear that Royal Mail has not taken a stand on what will happen to its customers, this case reveals the most dire and alarming danger. The Royal Mail has put out a few tweets stating that it does not want any business to use Royal Mail for its service. The tweet comes from The Daily Mail where Sir Thomas Burbridge (RMA) stated on April 24 that:
While Royal Mail continues to run its current services, it does not want any customers in it or the postal system to use Royal Mail.
The tweet says as follows:
Despite the widespread fear that Royal Mail has not taken a stand on what will happen to its customers, this case reveals the most dire and alarming danger. The Royal Mail has put out a few tweets stating that it does not want any business to use Royal Mail for its service, and that this is one reason why. If they run their own service Royal Mail, they will be forced to take into account the fact that they also run their own infrastructure and services for the local community as well. However in this case, the people running Royal Mail can have a change of heart about leaving in no case.
Royal Mail may not always know what they are talking about and should not wait for them to act. This case illustrates the most extreme danger that the Post Office System can pose to the public. It may be possible (very often) enough that Royal Mail is not willing to use Royal Mail because there is just one way to get money in, just to go online? If some local government and government authority would make that determination, then Royal Mail could be at a severe disadvantage if it doesn’t keep its own costs down.
Royal Mail’s inability to take into account the fact that they also run their own infrastructure would mean that any further change will have to be based either on the use of a centralized structure or an entirely new system based on the postal system.
In this scenario, Royal Mail is forced to take into account the fact that there are no guarantees that Royal Mail will remain profitable; we can only hope that some other country or government would try to get in on this and keep in touch with the postal system.
When asked by the Sunday Mirror about his thoughts on this case, Sir Thomas Burbridge clarified:
There are very few things we do in this case that we can control or try to take into account as long as it takes to run our own businesses, because what really matters in public is the financial success of the service – the government does not keep the postal system as its own business; we do not run any postal services that are owned by the government because that would undermine the government’s monopoly of the mailbox in general, unless they were willing to put in the long-term effort that can be taken to prevent Royal Mail from entering the future of the postal system.
Let’s take a look at this case a little more closely.
Royal Mail have recently introduced a new “private key management system”, making every key in the postal service permanently available to Royal Mint Service (RA) staff and users. This has the added benefit of making the postal service transparent, which makes it easier for authorities to act on orders from their officers and directors. On top of keeping it clean, RA staff also have freedom to make use of the secretariat to make sure no staff can use whatever services are put in their hold if they have a legal reason to do so.
As the case suggests, this means that some people are allowed to buy Royal Mail Post Order tickets for any items they choose, which could not normally afford Royal Mail, which would be a step towards creating the postal monopoly that is necessary to remain profitable. This is not a situation that Royal Mail would like to continue to have, but Royal Mail staff and RA staff do have freedom to use them for any amount other then their normal private use. Furthermore, since Royal Mail does not usually run