Report to the Directors of USPS diagnosing the state of affairs and Essay - 1

Report to the Directors of USPS diagnosing the state of affairs and offering some prognosis on what might be a more sustainable business model - Essay Example However, reduction of certain required expenses will lead to a decline in the company’s service quality. For example, the Post Office decides to cut the services of the one of the mail sorting employees. The cut is based on the company’s decision to reduce its huge employee salary payments. The employee reduction will trigger a slow customer mail services. The current business model includes a ballooning debt figure. The debt included an unpaid $5.5 billion amount on its defaulted loan schedule. In fact, the current business model is characterized as not a profitable self-maintaining business entity. Likewise, the current business model is described as needing to sacrifice its services in order to reduce its operating expenses. For example, the lone postman is hired as a part time employee to deliver mails on a Wednesday and Friday. Consequently, mails that arrive on a Monday will be delivered two days later, Wednesday. Similarly, mails that arrive on a Thursday will be delivered on a Friday (Ross, 2012). The same article described the current business model is grounded on low stamp and parcel rates. The current rates of mailing the correspondences were not high enough to surpass the breakeven point. Consequently, an increase in the stamp and other post office rates will lead to the increase in the company’s overall revenue (Ross, 2012). The current business model fails to generate enough revenues needed to pay for the maturing debts (Epstein, 2011). A business is normally set up in order to generate revenues. This is the first step. The USPS accomplished this first business task. Next, the company must generated net profits. The net profit amounts are arrived at by subtracting operating expenses from the gross profit amount. Based on the company financial report, Table 1, the company failed to generate enough revenues needed to arrive at the bottom line. The bottom line is the passing grade of any company. The bottom line equates to a net

The Current and Future use of Internet Technologies for LLOYDS TSB Essay

The Current and Future use of Internet Technologies for LLOYDS TSB Bank - Essay Example The first ATM put up by City Bank of New York heralded the era where technology graduated from being a superficial accessory to being an integral part of the entire banking process. The present form of online banking finds its roots in the pioneering initiative launched by four of the major banks of New York, Citibank, Chemical Bank, Chase Manhattan and Manufacturers Hanover bank. These banks simultaneously, yet individually, offered home banking services that allowed bank customer to maintain records as well as carry out transactions without leaving the comforts of their home (Mary J.C., 1997) Internet Banking received a major boost with the rapid development and penetration of banking activities conducted over the internet. Activities like money transfer and securities trading can be done through internet banking. It’s a virtual bank in itself which is often an extension of its brick and mortar model. With expanding information technology it is wise for the banks to adopt and leverage it, for expansion of business and better and faster delivery of services to the customer. Some of the benefits of internet banking are:Â   Internet banking is being used both in B2B (business to business) and retail banking. There are also some banks which only have a virtual presence, for example Nexity Bank. Generally bigger banks tend to offer internet banking. This is because smaller banks often find the cost of the service unprofitable before they expand to a certain scale (Gup B.E., 2003) Lloyds TSB is the largest retail bank in UK serving over 30 million customers. Being one of the largest banks in UK and the world, it has taken to internet technology in a big way and offers an array of services to its customers over the internet. Some of the internet banking services offered by TSB are like payment of bills, management of direct debit and standing orders, online application for savings account– over draft –