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Privatising the Royal Mail

Assigment 2 for (BMAN10780)Business and Management Skills module | University of Manchester, Manchester Business School | by Julia Gasiglia, Young J. Lee, Geunho Yae, Daniel Orzel, Tom Osborn, David Farkas
by

David Farkas

on 13 April 2015

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Transcript of Privatising the Royal Mail

PRIVATISING THE ROYAL MAIL
Advantages
Advantages
The Royal Mail
Disadvantages
Disadvantages
Conclusion
THANK YOU FOR YOUR KIND ATTENTION!
David Farkas
Young J. lee
Julia Gasiglia
Geunho Yae
Daniel Orzel
Tom Osborn

Made by
©2013
for the Mail
Chuka Umunna (MP)
BBC One | Question Time | 12. 09. 2013
losing of the feeling of stability

organisational fragmentation

workforce issues
for the Government
losing the potential profit gained by modernisation
losing a key element of national infrastructure
the heritage of the Royal Mail will be lost
for the Customers
Prices cannot stay low in the long term

Post Offices will close

Service quality setback
David
Julia
Young
Guenho
Daniel
Access to public capital

Quicker shift is available
70% voted NO | Sunday Times poll
past examples
privatisation worked at
Austria post
Deutsche post
bpost
became profitable shortly
enjoys up to 17% profit margins
Profit margins of Austria and Deutsche post are double than that of Royal Mail
Change was needed
Demand has changed
Market has changed
Daily letters sent dropped
82m
53m
2004-2013
Parcel volumes are increasing
Internet trading volumes increased

Amazon, FedEx
Full
Semi
Privatisation
Remain state owned?
NO!
Already semi-private – 38% state owned

Some foreign investment

Possible growth
Main problem is the national price of postage
investment needed to keep up with competitors

retain market share against its competitors

big opportunity for foreign capital


more important services
no income shortage
lost profit ~ corporate tax
Government can invest in other services
Education
Health care
Infrastructure developments
quick and markable income
more investments
higher amount of money injected

the government cannot afford much investments
let the mail to keep up with competitors
and fulfill the changing demands
what does privatisation mean?
government sells ownership

aiming to gain social benefits
Many pros and cons
efficency
better management
scope for innovation
depletion of jobs
unemployment increases
Full transcript