New business model for Royal Mail
New business model for Royal Mail – Gillian Wilmot, Managing Director, Business and Consumer markets, Royal Mail (UK)
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UK Government plans to split Consignia into 2 companies
LONDON (AFX) – Consignia, the renamed Post Office, will be split into two companies under a radical proposal being examined by the government, the Sunday Times reported without citing sources.
It said ministers are considering a plan to merge Royal Mail and Parcel Force into one company and put Post Office Counters (POC), which runs the network of 17,800 regional post offices, into another. Each company would have a separate board and management structure.
Read MoreA whole new package
What do you do when government rewrites the rules of your business
Read MoreConsignia to cut 1,600 Scots jobs
SCOTLAND could lose up to 1,600 jobs under a massive cost-cutting scheme announced yesterday by Consignia, owner of the Post Office, Royal Mail and Parcelforce.
Consignia intends to cut Pounds 1 billion off costs and cut its total UK workforce by 20,000.
Unions described the move as the most ruthless attack on costs in the Royal Mail’s 350 year history and said they would vigorously oppose them.
Read MoreA whole new package: Royal Mail Interview
Consider this. Your company has had a legal monopoly for 350 years. Your core products are regarded as public services, so the government retains rights to interfere in business decisions. Neither your managers nor your workforce hasever seen a competitor. Suddenly, the government abolishes the monopoly, handing the future of the industry to an untried regulator. The regulator starts licensing competitors, even before establishing a clear regulatory framework.
Meanwhile, you are left with a public sector operating culture, a strike-prone workforce and a legal duty to maintain expensive public services even as competitors start eating into your more profitable markets. How do you respond?
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