The Postal Service recently released its anticipated five year-business plan to alleviate their financial losses.
According to a statement by Robert Duncan, chairman of the USPS Boards of Governors and Postmaster General Megan Brennan said that the Postal Service is encountering a unique challenge as it is operating both as a federal agency and a large business with a duty to provide the best delivery service to every address in the US.
“Our mission and our role in America’s economy and society remain indispensable — but we can only continue to compete effectively and meet the high expectations of the public with an improved business model,” Duncan and Brennan said.
The most significant impact will be on the strategy in which would require legislation from Congress. This means a regulatory relief from the Postal Regulatory Commission or PRC and new labor agreements from the postal unions are needed.
“Ultimately, Congress determines the contours of the Postal Service’s statutory business model and therefore has the unique authority to enable this vision or direct the Postal Service toward a different vision,” the five-year plan states.
The Plan Focuses On Five Primary Goals:
- Provide world-class delivery services and customer experiences
- Equip, empower, and engage employees to serve our consumers
- Innovate fasters ways to deliver quality
- Invest in future platforms
- Achieve regulatory and legislative changes need to acquire financial stability
The five-year plan came eight months after Postmaster General Megan Brennan expressed that she and the USPS Board of Governors would release a 10-year business plan to address a $125 billion loss to the members of the House Oversight and Reform Committee.
Even so, the 10-year business plan remains to be on the pipeline. On the other hand, a USPS spokesman said that the agency is still working on a final draft for the Congress. The draft version of the 10-year business plan was submitted by Brennan last summer.
Nonetheless, the five-year plan, which was released by Postal Services’ Office of Strategic Planning involves a statutory requirement to offer the president and the Congress with a new strategic plan every three years.
Governor John McLeod Barger stated in a meeting of the USPS Board of Governors that the board’s Strategy and Innovation Committee made recommendations on the five-year strategic plan and accepted an in-depth briefing on its overall strategy.
Vice president of research partnerships at the R Street Institute, Kevin Kosar, said that the plan reenters some ideas like incorporating digital features into mail products. He also added that it would focus on a new concept and aim to “pivot its parcel system to focus more heavily on the wants and needs of consumers and small shippers, as opposed to big retailers.”
“I wouldn’t exactly say these strategies are transformational — at most, they are evolutionary, and I’m skeptical they will generate sufficient revenues to get the USPS out of its structural deficits,” Kosar added.
The five-year strategic plan, although, does not mention the White House postal task force’s recommendations, which entails rolling up the unions’ collective bargaining rights for reparation.
How Climate Action Can Be Forced by 137 Million Americans That Own Stocks
Climate change is coming sooner than later, which is why climate action is necessary to avoid problems to rise after. Here’s how owning stocks help us.
The US presidential elections are a few days away, and there is a possibility of a political solution that will resolve the climate crisis. Should the Biden administration get elected, they may provide us with climate legislation. However, no one has any guarantee of when that will happen and what the outcome will turn out to be.
While we are under the current administration, the Department of Energy has settled with referring to natural gas as US freedom molecules. This not the introduction to carbon tax the Republicans are hoping for.
So who can we turn to when it comes to immediate climate action? The corporations need to step up. We can see that some companies are jumping into action, like Beyond Petroleum, who is working on implementing their slogan. The company announced that they plan on cutting oil production to 40% in the following decade and expect to reach zero emissions by the year 2050.
It has joined hundreds of companies that are looking at science-based processes when it comes to cutting emissions. Nearly 300 companies that range from apparel to automotive to cutting their emissions to 35%, which is a great objective considering that these companies are responsible for having more emissions than Spain and France combined.
For tech companies, they seem to be in an arms race for sustainability. In 2019, Amazon promised to purchase 100,000 electric delivery vans to go carbon neutral by the year 2040 and to reduce enough carbon to offset all its past emissions.
Meanwhile, Microsoft is participating in Transform to Net Zero, which is a group of private companies that aim to achieve net-zero global emissions by no later than 2050.
The latest update for climate action has received both hopeful and cynical reactions—hope that the changes made by corporations can make a significant difference, but cynical about whether or not these commitments will be achieved.
However, Americans who own stock have the capacity to force corporations to take their own step towards climate action. If the 137 million Americans that own stock can convince the corporations they own stock from to take these steps, you can ensure that the climate will improve overtime.
It’s normal to feel some skepticism towards the actions of the corporations as some companies share the lack of concern towards the climate, but with the help of shareholders and voters, they can force these corporations to provide tangible proof of their climate action.
Their reward for this is that they can keep their shareholders because, at the end of the day, you can’t have shareholders if the world isn’t sustainable for living and that companies need shareholders to support their companies and products.
White House: Facebook, Apple, Google Monopoly Is Getting Exposed
The White House is looking into Facebook, Apple, and Google monopoly game, and is not looking good for the companies in question and other companies.
The House Judiciary Subcommittee that focuses on the Anti-Trust, Commercial, and Administrative Law began an investigation on Facebook, Apple, Google, and Amazon—the four major companies.
The subcommittee aims to answer the question of whether Big Tech gained their success by following the rules or did it stay on top of its game by bending the rules. After 16 months of research, hearings, and analysis, the results don’t look ideal for the companies involved.
From the looks of it, the tech sector does show an abuse of “monopoly power,” which the subcommittee concluded in their 450-page report, which they submitted previously.
What Is the Current Problem?
Congress is not looking into the companies for monopoly abuse, as this is something that happens when a company this big is in the business. They are more concerned with what they do to stay on top that concerns the subcommittee.
If the company has 90% of the market that was earned through natural growth and you deal with other companies and consumers fairly, then the anti-trust committee will leave you alone; however, if they notice that you used your size to knock small businesses out of the scene before they get a chance to compete, or have competitors that have proof that you’ve been leveraging parts of your platform fraudulently, then you will have a problem.
Dividing the Four Companies
- Apple – The App Store
Apple doesn’t have a monopolistic hold over the smartphone sector, but it does have control over what you can do with their iPhone. This is because you can only install apps through the Apple app store, and Apple controls which apps you can download through there.
Amazon is a company that controls over 50% of the US e-commerce market, and even more in other sectors. This company abuses monopoly power by leveraging its control over both the customers and the sellers and pushing favorable terms in negotiations that are unfair.
It’s without a doubt that Facebook has monopoly power over social networking, and it is unlikely that any social platform is going to take the power away from them.
Google has been the top search engine for 20 years. The company has changed its values from ranking results based on what’s best for Google to preferring its own websites and giving more space for ads.
Do you actively browse or participate with any of the ads involved? If you do, stay tuned for an update on the White House: Facebook, Apple, Google Monopoly investigation. If you are an aspiring app developer that wants to make it in the business, read up on how you can grow your consumers organically and work on that.
American Cloud Platform Giant, IBM, Splitting up in 2021
American Cloud Platform Giant, IBM, is splitting up to have two more focused infrastructures in 2021. Let us look at the implications of this strategic move and how this affects IBM’s long-term strategy.
IBM is one of the biggest cloud platforms in the United States that offers cognitive solutions that focus on marketing and selling hardware, middleware, and software products. Its product portfolio also includes hosting and consulting services from mainframe computers to nanotechnology. Through the years, IBM has reinvented itself and proved its adaptive capabilities by changing its product portfolio as technology becomes more intuitive and innovative. Here are some of its previous product range:
- In 1991, the printer and keyboard manufacturing process merged with Lexmark
- In 2005 and 2014, IBM sold its ThinkPad and ThinkCentre products to Lenovo
- In 2015, IBM adopted a Fabless model and offloaded the manufacturing design component to Global Foundries
- From 2002 to 2019, IBM acquired PwC consulting, SPSS, The Weather Company, and Red Hat.
IBM is considered one of the biggest companies in its industry line, with over 350,000 employees as of 2019. They are considered a global group with the US, and India has the biggest bases in the employee workforce.
The Big Split: IBM Splitting Up in 2021
At last October 10, 2020, IBM announced a spin-off where the new company will focus on higher-margin cloud services. During an interview, IBM CEO Arvind Krishna mentioned a significant shift in how IBM usually operated but emphasized that this is a needed move for their long-term strategy. He further reiterated that one of IBM’s strength is its adaptability in the face of the fast-paced environment of technology, and this is one of the ways to strengthen IBM’s portfolio.
The Vision of NewCo
IBM’s vision for NewCo is that this new division will focus on its open hybrid cloud platform, which can grow to a $ 1 trillion market opportunity. This will then launch IBM into even greater heights as the world’s leading managed infrastructure service provider. To summarize, IBM’s focus will be technology and platform innovation and digital transformations specific for cloud and cognitive software, global business services, global financing systems, and IBM Public cloud service.
The projected revenue for IBM alone is $59 billion. NewCo, on the other hand, focuses on IT infrastructure modernization, specifically for the managed infrastructure service business of the global technology service segment with projected revenue of around $19 billion.
IBM’s capital structure is expected to maintain a single A credit rating, while NewCo’s capital structure targets an investment-grade credit rating. The dividend policy for both companies is expected to be no less than IBM’s pre-spin dividend per share, and that the relationship between both companies is expected to be strong and strategic, which mutually influences each other.
Because of IBM’s admittedly risky yet strategic move, investors are knocking on its doors with IBM stock up 7% as of October 12 since the press release.
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