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Title: Business Proposal

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Business Proposal


Shleifer, 1999). It is believed that privately managed corporations are likely to be well managed and consequently more profitable. This is because the management is more profit-oriented and that they are likely to be well governed in order to effectively compete with others in the market. Vickers & Yarrow, 1991; The privatization of public corporations is a trend that has proved to be quite effective in many countries seeking to gain optimal benefits from state corporations. The privatization strategy has been singled out as an effective way to enhance efficiency, improve quality of products and services; encourage innovation, cost management and quicker delivery (

In the recent past, propositions have been made for the post service in my country in my country to be privatized. This way, it is expected that the quality of service will be enhanced and so will the diversity of service by the post. The country’s post remains significantly traditional, with the main business being the sending and receipt of letters. This is unlike in other countries where the role of post has revolutionized highly and functions such as money transfer, car assurance and passport services among others. This study aims at exploring the likely impact of privatization of the post service and how it could affect the efficiency of the corporation. This will be done through a comparison between the country’s post and other countries with advanced post services such as Australia.

Background of the study

. This denotes therefore that in the event that the local post is privatized, it is likely to earn more revenue for the country than it is doing currently thus improving the economic welfare of the country. Yorming, 2003)The post in my country is in dire need for improvement; given that it has failed to add value to the services provided to customers. As opposed to developing services that are considered highly valuable in the modern world and which posts in other countries are already providing, the national post primarily concerns itself with the business of sending and receiving letters. The old classic nature of the national post can be identified with the fact that it remains under government control. Accordingly, there is little incentive to improve profitability because the government officials may not anticipate revenue benefits as it would be expected with private investors (

It is notable that post services in various countries have changed tremendously and that more services are provided. Posts are no longer confined to the traditional role of delivering mail and new innovations have been developed to assist people in obtaining various important services. The country of comparison Australia provides a variety of services and is not confined to mail service only. The post provides agency services and is also involved in retail merchandising besides the traditional mail sending and delivery service (Australia Post website). It acts as a third party agency and a central point at which companies are connected to the consumers (Australia Post website). Accordingly, the post office provides license renewal services, money transfer, ID checks, passport application agency services and car assurance among others (Australia Post, 2011a; Australia Post, 2011b; Australian Passport Office, 2011). These services generate additional income for the post while providing much needed services to the citizens of the country.

. This is expected with the post service once it is privatized. This will not only benefit the post service but government departments and private companies as well. It is notable that if the post is privatized, it will undertake various services such as issuing and renewal of passports on behalf of the immigration department, payment of bills such as electricity bills and telephone bills, license renewal for various departments and companies such as driving licenses, business licenses and property licenses and issuance of car assurance and other insurance services; all which would reduce the workload in the departments to a significant level. Dagdeviren, 2006)Privatization literature suggests that public corporations are more likely to improve their performance if they are converted into private corporations (

outsourcing is one of the most important cost cutting measures that modern companies are employing. On the other hand, the post would gain significantly from additional revenue emanating from the provision of services on behalf of the departments and the private companies. Due to the increased dedication expected from the new owners as they attempt to make profits, the post is expected to have better management, effective service and innovative strategies.Yorming (2003),Privatization of the post would enhance efficiency for the parties involved because there would be lesser waiting hours at the departments and private companies to collect the various documents and conduct certain procedures. This also depicts the possibility of cost cutting because fewer employees would be required in the benefiting departments. Further, less cost will be incurred because of outsourcing their services. According to

Customers are also expected to benefit significantly from the privatization of the post. This is because it will make work easier for them, thus saving them energy, time and money. Customers will not need to go to the government departments to collect documents and renew passports and licenses but rather they will conduct this conveniently in the posts around the country. In the event that the post adopts innovative services such as money transfer available in Australia post, customers will have the convenience of sending money instantly for various purposes. Privatization of the post is therefore highly desirable and should be undertaken to improve the efficiency of the post.

Cameron & Green, 2004). Such changes may impact on the success of the organization to a significant level hence the need for the management to communicate the intended changes to the employees in order to avoid resistance to change which may limit the achievement of objectives (Smith, 2001). As the country’s post is privatized therefore, it is highly essential that the challenges expected in the change process are considered. Megginson & Netter, 2001; privatization involves a significant change towards profit maximization which may require change in strategy, processes and use of resources within the organization. There may be need to reorganize the organization’s departments, change existing leadership, adopt new skills and probably cut down on the number of employees in order as the private owners seek to reduce costs (Domenico (2004),. Firstly, it can be established that a new system will be in place and that the impact is likely to change many processes in the organization (Alderman, 2004). According to )Clarke & Christos, 1995Domenico, 2004; A significant level of challenges are however likely to be witnessed during the change process (

Statement of the intent

My study will seek to examine the role of the post service in my country in order to establish the improvements that can be made if the service is privatized. This will involve assessing the importance of privatizing post in enhancing efficiency in the government departments and private companies through acting as an agent for various services and the benefits to consumers through easier services and time saving. In doing so, the study will make a comparison between my country and other countries such as Australia where post has been privatized. The study will focus on the challenges that are likely to be faced during the transformation of the corporation from the public sector to the private sector. As it would be anticipated, changes are likely to be witnessed in the department, resource allocation and new skills requirements. In this regard, it is imperative for the management to guide the change through enhancing effective communication with employees about the change and providing adequate information as to what will be required of them under the new system (Cohen & Kotter, 2005; Cook & Macaulay, 2004).


In order to meet the objectives of the study, this study will employ both primary and secondary data in the collection of relevant information. Primary data will be obtained from interviews and questionnaires focusing on government officials and the post’s management and employees in order to establish their views on privatization and what they expected to result from the same. Secondary data will set the background for the study and will involve the use of books, web articles, journals and periodicals.


The completion of this study will culminate in the determination of the impact of privatization in my country’s post service. As noted in the proposal, there is need for change in order for the post to emulate other advanced posts such as Australian post. This study will also explore the expected challenges from the change of the post from a public corporation to a private one.


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. Retrieved April 16, 2011 100 Point checks & identity verificationAustralia Post. (2010a).

Retrieved April 16, 2011 from Applications and renewals.Australia Post. (2010b).

Retrieved April 14, 2011 from Australian post outlets.Australian Passport Office. (2011).

Cameron, E. & Green, M. (2004). Making sense of change management: a complete guide to the models, tools & techniques of organizational change. New Jersey: Kogan Page Publishers.

Clarke, T. & Christos, P. (eds.) (1995). The Political Economy of Privatisation. London and New

York: Routledge.

Cook, S. & Macaulay, S. (2004). Change management excellence: using the four

intelligences for successful organizational change. New Jersey: Kogan Page Publishers.

Cohen, D & Kotter, J. P. (2005). The heart of change field guide: tools and tactics for leading

change in your organization. UK: Harvard Business Press.

Dagdeviren, A. (2006). Revisiting privatisation in the context of poverty alleviation. Journal of

International Development, 18(1), 469–488.

Domenico, B. B. (2004). The challenges of privatization: an international analysis. Oxford, UK:

Oxford University Press.

Megginson, W & Netter, J. (2001). From state to market: A survey of empirical studies on

privatization, Journal of Economic Literature,
39(2), 321-89.

Shleifer, A. (1999). State Versus Private Ownership. Journal of Economic Perspectives, 12 (4),

Smith, P. (2001). Effective Change Management. London: SAGE.

Journal of EconomicVickers, J. & Yarrow, G. (1991). Economic Perspectives on Privatization.

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New York, NY: John Wiley.Business Practices.Yorming, P. (2003).