An Analysis of New Geographic Markets and Projected Location Development Alternatives for Lake Michigan Mailers, Incorporated
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Authors
Rhoa, David C., 1968-
Issue Date
1990
Type
Thesis
Language
en_US
Keywords
Alternative Title
Abstract
This paper is divided into two divisions. This first division concerns the cost relationship between the U.S. Postal Service and the presort industry. The second is an analysis of
Lake Michigan Mailers, Inc. and the feasibility of its expansion into new geographic markets. The findings of both divisions are presented respectively below.
DIVISION I:
* The USPS has experienced years of massive cost growth. This growth has been witnessed primarily in the labor sector.
* The costs of the presort sector are substantially lower than counter-part costs
in the USPS. * The USPS is promoting an automation plan to
be completed by 1995. This automation plan will reduce overall USPS costs significantly.
This plan calls for the bar coding of all mail To accomplish this goal, the USPS is
dependent on greater participation of the presort sector in the processing of mail.
expected to offer monetary incentives to the presort sector to encourage
increased bar coding participation.
* The relationship shared between the USPS and the
presort sector is expected to change in the years to
come. The role of the presort sector will become more
significant with regards to mail processing as
automation of the Postal System becomes a reality.
DIVISION II:
* Lake Michigan Mailers, Inc. {LMMI) has
experienced substantial growth in sales over
the past two fiscal years. This growth has
developed, primarily, as a result of
increased mail and package volume.
* Transportation, rent and labor
expenditures, as a percent of sales, are
considered low by LMMI management and
accounting standards.
* The average retail client is a woman, age
36 to 55. The majority of clients live
within a fifteen statute mile radius. The
sign on the building and word of mouth are
the most common forms of introducing LMMI
services.
* The largest percentage of mail piece
transaction volume is claimed by the
"Financial Institutions" category.
* Niles, Michigan is the best choice for a
new branch location given the Community
Selection Criteria supplied by LMMI
management.
* For the short run (six months to a year),
it is recommended that the servicing of the
Niles location be handled through the Saint
Joseph location. This plan is the most cost
effective and is in line with the
conservative expansion history of LMMI.
Description
vi, 158 p.
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U.S. copyright laws protect this material. Commercial use or distribution of this material is not permitted without prior written permission of the copyright holder.