Canada Post

Executive Summary

Canada Post Corporation will face many difficulties in the future stemming from two present concerns:

Ř Customer Perception- Customer perception is fairly negative and is either associated with problems evident in the past or those associated with the United States Postal Service.

Ř Unionized Labour- Unions are a constant problem for any company associated with them.

To remedy these situations we propose the following:

Ř Divestiture- CPC should break into strategic business units. Each unit would then be responsible for individual quality control, sales, personnel as well as research and development. This divestiture will help them to reduce the detrimental effects of CPC’s union as they will be contained in only one or two of the strategic business units and not the whole of the company. This will also facilitate CPC’s drive into e-commerce as they will be able to hire technical experts into a strategic business unit without the consent of the union.

Ř Improve customer awareness- Incorporate an active advertisement campaign aimed at improving customer awareness of CPC’s improvements in operations and service.


CPC is the fifth largest employer in Canada, employing almost 64,000 personnel to maintain daily business operations within Canada and abroad. The corporation is a Federal Crown Corporation responsible to customers, stakeholders, government, Canadian Union of Postal Workers(CUPW), and employees. In 1982/83 Canada Post incorporated. Since then it has operated a customer based organization that has recorded an increase its revenue by 138% since its incorporation. CPC boasted revenues of $5,380 million for year 1998/99.

CPC currently owns a significant portion of Purolator Courier Limited (95.8%) which is a leading domestic courier company within Canada. CPC also holds shares in International Post Corporation (IPC) which provides international consulting services for the mail distribution industry.

Over the years CPC has developed a customer-based philosophy improving their daily mail operations, customer relations, public perception, professionalism, and the relationship between management and CUPW. To solidify Canada Post as a corporation that cares for its customers, they have introduced an ombudsman to act as a third party mediator in customer satisfaction complaints. Unfortunately, consumers ma not be aware of the improvements that the CPC has made of the last few years.

“We are in business to serve all Canadian, businesses and organizations, through the secure delivery of messages, information and packages to any address in Canada or the World, at a level of quality and value that makes customers want to repeat the experience.”
-Canada Post mission statement

Canadians have had little choice as to their mail carrier, however, with an increase in mail couriers, technological advancements in e-mail and on-line shopping Canadian customers now have more choices. Increased competition and technology has forced Canada Post to apply innovative and technological improvements to remain in business and grow. Canada Post has made milestone improvements since their incorporation, however, important issues still plague the Canadian company. Some of these factors will be reviewed in detail within this analysis and will include such issues as:

· Public Perception - Evidence shows that Canada Post Corporation has made effective improvements in the level of service quality they provide to customers, however, the corporation is still plagued with poor customer perception. Canada Post was considered unreliable, overpriced, inconsistent and monopolistic in nature. As well, mail customers felt their service complaints fell on deaf ears. Customers associate the name “Canada Post” with these poor public perception traits and it is a stigma that even threatens Canada Post Corporation to this day.

· Union Relations - Poor relations between management and the CUPW inhibit corporate growth, innovation, technology as well as overall business operations. It is a relationship that affects public perception of Canada Post employees and the companies associated franchises.

· Bureaucratic - Canada Post Corporation employs almost 64,000 people and must be accountable to government, stakeholders, CUPW, employees, and its customers. As a result, Canada Post is highly bureaucratic in nature making it difficult to quickly apply innovative and technological advancements to effectively compete with environmental and corporate changes.

· Courier Hold - As indicated earlier, Canada Post Corporation owns almost all of Purolator Courier Limited. Purolator currently holds only 18% of the small parcel delivery service within Canada. This percentage is low considering only having a handful of organizations that compete within this segment of the delivery service. This industry is expected to increase substantially due to increased of on-line purchases