Forum post 600-words

THE UNITED STATES POSTAL SERVICE: PROFIT, VALUE CREATION,

AND FINANCIAL SERVICES

ASSIGNMENT QUESTIONS

Question 1: What do the USPS’s financials tell you about whether or not (a) it creates economic

value, (b) is more or less efficient than UPS or FedEx, and (b) needs to reexamine its business

model? Explain your answer.”

Question 2: What positive externalities does USPS produce, and how has the value of these

externalities changed over time?”

Questions 3: Explain how you would calculate the economic value crated by the USPS, taking

into account the positive externalities it produces.”

Question 4: What capabilities and competencies does the USPS have that would enable it to

create economic value by offering financial services? Would creating economic value this way

“fit” with the USPS’s overall purpose, culture, and history? Why or why not? Explain.

Question 5: If the USPS were to begin offering financial services, how would it impact its

revenue, the consumer surplus it creates, and the positive externalities associated with its

operation? Discuss potential impact on each of these three value components.

Question 6: Should the USPS begin offering financial services? Why or why not?

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Exhibit 1: Statement of Operations

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Exhibit 2: Balance Sheets

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Exhibit 3: Information Sources