BM628: Analyzing Royal Mail's Corporate Strategy and Governance

This report provides an analysis of Royal Mail's corporate strategy and governance, focusing on the challenges it faces in the current market. It begins with an introduction to Royal Mail's background and the problems it encounters, including the demand for carbon-neutral deliveries, the shift from paper to digital communication, and the increasing volume of parcel deliveries. The research objectives and questions are clearly defined, followed by a literature review that examines how companies are meeting carbon-neutral delivery criteria and adapting to market changes. The analysis section delves into Royal Mail's efforts to modernize and address environmental concerns while maintaining cost-effectiveness and service quality. The report further discusses the company's response to the decline in letter volumes and the surge in parcel deliveries, particularly during the COVID-19 pandemic. Finally, it concludes with recommendations and an action plan for Royal Mail to navigate these challenges and achieve its strategic goals, including becoming a carbon-free corporation by 2050.

Corporate Strategy and
Governance

Contents
INTRODUCTION...............................................................................................................................3
Background.......................................................................................................................................3
Problem faced by the company..........................................................................................................4
Research Objectives..........................................................................................................................4
Research Questions...........................................................................................................................5
Issues which Airbnb faced during the pandemic of Covid 19............................................................5
Literature Review................................................................................................................................5
How companies meet the criteria and demand of carbon neutral deliveries......................................5
How does company respond to global change of the market from paper to digital communication?.7
How company cope with higher volume of parcel deliveries............................................................9
Analysis..............................................................................................................................................11
Discussion...........................................................................................................................................14
Recommendations and Action Plan.................................................................................................18
CONCLUSION..................................................................................................................................19
REFERENCES..................................................................................................................................21
Appendix............................................................................................................................................22

INTRODUCTION
Corporate governance can be defined as the combination of policies, approaches or
laws through which businesses are operated, regulated or controlled (Firmansyah, Husna and
Putri, 2021). The time period encompasses the inner and external factors that have an effect
on the interests of a business enterprise's stakeholders, along with shareholders, customers,
suppliers, government regulators and management. Corporate method is a unique plan or
framework that is long-term in nature, designed with an objective to gain a aggressive gain
over other market participants even as handing over both on consumer/purchaser and
stakeholder guarantees.
Background
Royal Mail is established 1516 as branch of the government and operates till these
days as postal carrier courier company. Throughout the history the Royal mail invented green
and rapid ways to deliver mail and parcels within the UK and globally. Royal Mail Group
Limited is public business enterprise and operates few brands-Royal Mail, Parcelforce
international and GLS Group. The objective of the corporation is to offer above 90
percentage sustainable and reliable First class and Second-magnificence deliveries within
agency’s set time-frame. Royal Mail and Parcelforce are more than a family name. They
perform in forty four international locations round the arena using nearly 160,000 humans,
turning in greater than 14.0 billion letters and 1.8 billion parcels every 12 months.
Specialising in connecting organizations, clients and communities throughout the UK, Royal
Mail Group is dedicated to delivering a 'one-price-is going-everywhere', thell-known postal
provider to more than 30 million addresses across the UK (Foroudi, 2020).
As a main UK company, Royal Mail Group are project one in every one of the biggest
modern changes in the UK in most recent records. Letter volumes are declining. Thus, as an
organization Royal Mail Group are centered around utilizing the rising number of bundles
being driven through the increment of the net shopping undertaking, especially at top retail
times. As quite possibly of the most seasoned endeavor inside the world, Royal Mail Group
can indicate its beginnings returned more than 500 years to 1516. Regal Mail and its
precursor associations are liable for various global firsts, going from the Penny Black stamp
to the world's initial one-rate-is going-anyplace Universal Service. That glad culture of
advancement keeps up with these days as new age and virtual supplier are presented and
contributions are expanded at home and abroad.

12,000 postal individuals serve in The Post Office Rifles all through the First World
War. 1,800 are killed and north of 4,000 injured eventually of the fighting. The Post Office
Rifles got 145 honors for chivalry, and three General Post Office faculty have been
introduced the Victoria Cross. The battle likewise sees a major ascent in letters and packages
being shipped off esteemed ones forestalling abroad. At its main, 2,500 group of laborers
managed 12 million letters and 1,000,000 bundles for each theek. Illustrious Mail praises the
London 2012 Olympics by means of giving 29 stamps observing Team GB's Gold Medal
winning competitors. The stamps are given the day after the success and to be needed to
purchase in Post Offices through noon. One more 34 stamps are given for Gold Medals won
inside the Paralympics, the essential time that a number US inconveniences stamps to live it
up Paralympics gold medallist. Regal Mail furthermore colors north of ninety post pressing
holders gold to have a good time our competitors' satisfaction in every computer games.
Problem faced by the company
Issues and Challenges confronted by using Royal Mail are linked to the cutting-edge least
expensive and environmental state of affairs and they'll be led by the purpose of the
enterprise to be the chief of present-day market and run their commercial enterprise in
environmentally friendly manner. Seventy three percent of the clients need carbon neutral
deliveries. There is a strong call for of extra ecological pleasant businesses due to the issues
with worldwide warming. Royal Mail is privy to the customers needs and is operating in
technological and industrial modernisation on account that 2017, wherein they're aiming to
turn out to be carbon free corporation until 2050 (Fu, 2020). Royal Mail is a worldwide
organisation and it's miles the use of every possible delivery alternatives-ships, trains and a
huge quantity of cars. The competition are giving a excessive pressure of keeping the fees
down and the modernisation of the transport machine will want a large investment. Another
Challenge that takes place is that purchasers massively stopped corresponding by using post
and favored the use of emails and other social medias as communique. Over forty percentage
of the organizations switched to paperless communication which caused other in letter
quantity.
Research Objectives
 To analyze the way Royal Mail meet the criteria and demand of carbon neutral
deliveries by keeping costs down and keeping high quality service.
 To determine how does Royal mail respond to global change of the market from paper
to digital communication.

 To identify how company cope with higher volume of parcel deliveries.
Research Questions
 What is the way Royal Mail meet the criteria and demand of carbon neutral deliveries
by keeping costs down and keeping high quality service?
 How does Royal mail respond to global change of the market from paper to digital
communication?
 How does the respective company cope with higher volume of parcel deliveries?
Issues which Airbnb faced during the pandemic of Covid 19
Looking at March and April information, studies [from Granicus] determined that
new quick-time period bookings declined about 50% from previous months. Further
compounding the misplaced sales was an 85% cancellation price on current reservations
inside the same time period. This has been very unfavourable for the single-list hosts who
count on Airbnb profits to help pay their mortgage. In addition, it’s left many multi-listing
hosts who are particularly leveraged dealing with a economic crisis.
Literature Review
The primary document contributing for the research is the Annual document of the enterprise,
which gives the accurate data of how the organization is situated within the contemporary
marketplace. Gives a clue of destiny and statistics of customer’s wishes. Statistical
information could be drawn from dependable theb sites such as McKinsey and agency-one of
the three largest management consulting and strategy consulting groups in the global. They
plan and can predict companies’ futures by means of diagnosing market as much as 30 years
beforehand (Garg, 2020). Global warming is a big problem, and every automobile adds to
carbon emissions. BBC and Financial times are a terrific supply to read extra and apprehend
how large competition as Yodel and DPD are doing to modernize and maintain up with
customers demands of greener deliveries.
How companies meet the criteria and demand of carbon neutral deliveries
Reinventing itself as a parcel-led organization handing over letters, rather than a
letters-led company turning in parcels, is going to take time for Royal Mail. What’s extra, its
final objective of producing 70% of overall revenue from parcels and forty% from shipments
out of doors the United Kingdom remains a way off. Despite its ambitious desires, the
corporation’s latest announcement that 2,000 management jobs can be scrapped via March
2021 is affirmation of years of falling income. This turned into in component due to Royal

Mail’s failure to reply rapid sufficient to declining letter volumes, along a greater latest
growth in parcel volumes related to on line shopping – a fashion that has been increased by
way of Covid-19 (Giannarakis, Andronikidis and Sariannidis, 2020). Ironically, but, this
makes its longer-time period targets of boosting parcel output more realisable. Gives a clue of
future and statistics of customer’s needs. Statistical information might be drawn from reliable
net sites including McKinsey and agency-one of the 3 biggest management consulting and
method consulting corporations inside the worldwide. They plan and can predict businesses’
futures by using diagnosing marketplace as a whole lot as 30 years ahead. Global warming is
a large hassle, and every vehicle provides to carbon emissions.
Outstandingly, Royal Mail is endeavoring to fulfill its extensive said fossil fuel
byproducts targets - its 48,000-durable vehicle armada is answerable for an expected 70% of
the association's general CO2 outflows, so there is a lot of space for additional overhauls in
functional execution. In the present time and place, be that as it may, Covid-19 is
unmistakably affecting the primary concern, with a 37% increase in packages volumes at the
pinnacle of the pandemic's most memorable wave in April and May being undermined by
means of general expenses flooding to £80m - customarily moved via additional time costs in
response to over the top levels of worker nonappearance, combined with PPE and bundle
related amount charges. In a word, reusing the business venture's undertaking model is
demonstrating monetarily excruciating inside the present moment and future presumptions
have previously been modified. In September 2020, Royal Mail modified upwards its net-
quote owing to the change in its business venture model to £140m-160m from an ahead of
time figure of £110m. It moreover raised its gauge of accuses related of the overall pandemic
from £120m to £140m.
Re-examining itself as a bundle drove manager conveying letters, in inclination to a
letters-drove business endeavor turning in packages, goes to get some margin for Royal Mail.
What's extra, its definitive goal of delivering 70% of by and large income from bundles and
40% from shipments open air the UK stays far off. Notwithstanding its strong objectives, the
organization's ongoing statement that 2,000 control occupations will be rejected through
March 2021 is affirmation of long periods of falling income (Mahmood and Alsayegh, 2020).
This was in part because of Royal Mail's inability to answer quick adequate to declining letter
volumes, close by an additional most recent development in package volumes connected to
on-line shopping - a design that has been expanded through Covid-19. Amusingly, however,
this makes its more drawn out term focuses of supporting bundle yield extra feasible.

Royal Mail is the UK’s pre-eminent transport organization. As the UK’s sole
designated Universal Service Provider, it supplies a 'one-rate-is going anywhere' service on
more than a few letters and parcels to over 30 million addresses throughout the United States,
six days a theek. Royal Mail also provides more than a few commercial services to
purchasers, sole buyers, SMEs, massive corporations and shops, and different postal
operators who use their downstream network. Royal Mail operates throughout 44 nations and
geographical regions worldwide, by and large through GLS, its worldwide floor-based totally
parcel transport community. With formidable carbon discount objectives, the gathering,
insurance and accuracy of its environmental statistics had been 3 key demanding situations
that Royal Mail changed into seeking to deal with while investigating suitable software
program. It wished a sturdy software platform that alleviated the hazard and aid associated
with existing guide spreadsheet processes, for amassing, handling and reporting its
environmental data. The majority of Royal Mail’s emissions end result from its vehicles and
delivery, and therefore calculating and reporting correct fleet-related emissions turned into
essential for Royal Mail so one can degree its performance against the formidable goals set
out in its environmental method. Another task for the enterprise was dealing with exceptional
roles inside the data collection, approval and reporting process. The ansther needed to be
flexible enough to manage the complexity of Royal Mail’s records series across most people
of its subsidiaries.
How does company respond to global change of the market from paper to digital
communication?
It appears that the perceived cost and authority of mail interprets into bodily interactions.
Mail grants extra cut-through and is a way much more likely to be opened than email.
Research thell-knownshows that 69% will open a letter from an agency about a
merchandising or unique offer. Furthermore, 60% will open mail if it’s from a business
enterprise about a product or service they don’t presently have. Understandably, the have
interaction extra with businesses the company has already handled. But even when mail is
obtained from agencies the haven’t used before, extra than half of communications are
opened. Of the ones opened pieces, forty three% result in a few sort of interaction (Mujih,
2021). Door to door mail consisting of leaflets, postcards and flyers additionally supply
robust cut-through, with 59% of human beings pronouncing they open it. Recipients truly
spend time with mail. On common, they hold mail across the house for more than two theeks.
Although maximum entrepreneurs recognize, from responses that come a lot later than

theeks, many humans hold mail for a whole lot longer. And with some mail which include
catalogues and customer magazines, people spend time reading it.
Considering that overall parcel as 70% of Royal Mail's CO2 emanations come from its
engines and transport armada, it have ended up being clear that having the option to precisely
report armada related discharges changed into significant for the association to measure its
presentation against the striking targets set out in its ecological methodology. All antiquated
discharges records has been relocated into the environmental elements module and will hence
be completed all through Royal Mail, in which realities can later be state-of-the-art from
north of 1,600 destinations across the United Kingdom, notwithstanding its worldwide arm,
General Logistics Services. Where realities was deficient with regards to, the environmental
elements module's demonstrating capability has empowered Royal Mail to record more
whole carbon, waste and water records. It does as such through taking midpoints, stopping
holes with earlier years' realities or the utilization of a standardized profundity part, which is
then changed while genuine measurements is presented. Thus, it has empowered the
association to record more solid pother and water use realities. Imperial Mail done its 2020-
21 objective to diminish outright fossil fuel byproducts through 20% against a 2004-05
pattern four years in advance of timetable. That equivalent year the business likewise
outperformed its objective to redirect 93% of waste from landfill, redirecting a record the vast
majority of its waste.
Consumers nowadays are exposed to an ever increasing variety of marketing
messages. It’s getting tougher for manufacturers to reduce through the noise and clutter and
to reach the right target audience at the proper time. Mail has usually had an critical role to
play within the marketing blend. To help broadcast brand messages in above-the-line
channels, marketers have traditionally used below-the-line channels like mail and electronic
mail to build a extra private, one-to one dating with their clients. In today’s unsure theather,
those greater direct, one-to-one communications with clients and their potential to deliver
extra personal, customised messages – offer advertising human beings a valuable opportunity
to help brands build believe. And mail specifically has a completely unique set of
characteristics that could help marketers to build reassurance and upload credibility to their
logo’s message. Email is here to stay and is a important detail of the marketers toolkit,
hothever this major trade inside the way virtual communications are perceived has
contributed substantially to the current climate of patron uncertainty. It comes as no wonder
therefore, to find that mail is especially valued whilst privateness is deemed to be important.

Royal Mail works with manufacturers to construct targeting and personalization strategies
using information matching, as an example different families can get unique tour brochures
relevant to their behavior. Design consultancy and referral to creative agencies is likewise
presented while the usage of Royal Mail advertising. A marketer can see the precise location
of an ad in Royal Mail’s pipeline, assisting to recognize while to trigger extra
communications.
The Royal Mail carbon target is all important for their aggressive new climate plan -
They have likewise presented their Net Zero objective by 10 years to 2040 and are resolving
to approach term outflows focuses in accordance with environment science, lessening
outright Scope 1 and 2 ozone depleting substance emanations by 25% by 2025/26 and Scope
3 discharges by 25% by 2030, from a 2020/1 base year. The Royal Mail 90,000 posties stroll
more than a billion stages every day, conveying to 31 million locations. These 'feet on the
road' assist with making the organization the greenest choice for conveying packages, in light
of contenders' accounted for outflows. The Royal Mail need to be viewed as an industry chief
as are calling for vast normalized writing about CO2e per package for UK conveyances, in
this way, they say, that clients can go with an educated choice. They bring up that not all
transporters report the carbon cost of a conveyance and that there is no normalized strategy
for estimation. Actually shoppers frequently have barely any choice on which transporter is
utilized so it's down to retailers to sell them on carbon proficient conveyances and for the
most part everything comes down to cost and administration - end clients could say that they
favor green conveyances however by the day's end many simply need their bundle conveyed
in a helpful opportune way for nothing or possibly as low an expense as could really be
expected.
Right now, 49% of Royal Mail's emanations are from homegrown activities, including
transportation organizations and structures. To cultivate net zero tasks, the whole Royal Mail
business will work on 100 percent inexhaustible power from 2022, diminishing dependence
on homegrown flights and expanding the utilization of rail. The organization will likewise put
resources into self-producing renewables by taking a gander at the potential for sun oriented
at north of 200 destinations the nation over - like its affirmed sun powered charger
establishment at the Midlands Parcel Hub, which will go live in 2023.To embrace the round
economy, Royal Mail plans to empower reuse models and extend its Parcel Collect
assistance. The organization will likewise embrace an essential survey of all Royal Mail
items in 2022 and preliminary developments to lessen single-use things, for example, elastic

groups, change the plan of mail sacks to kill link ties and increment the reused content of
plastic conveyance packs. In doing this, it hopes to see a 25% decrease in squander by 2030.
At long last, the organization has called for normalized all inclusive providing details
regarding CO2e per package to empower clients to settle on informed choices. Imperial Mail
will likewise join forces with vehicle makers to take a gander at every single business
vehicle, from vans to explained trucks, as well as new fuel types, not only electric, to
accelerate the rollout of electric and low-outflow vehicles across the UK. The postal
assistance will cover Steps to Zero in June every year through its ESG report; the
responsibilities will be checked by free examiners.
Parcels boom persevered to construct at Royal Mail, with revenue for the five months
to the quit of August up by way of 8.2% year on 12 months and by way of 17.7% in
comparison to the equal duration in 2019. Domestic parcel volumes increased with the aid of
34% compared to pre-COVID ranges (Singh and Singh, 2020). Reflecting the removal of
lockdown regulations throughout the summer season, domestic volumes reduced through five
% in comparison to the same duration closing 12 months, which included the primary
lockdown and closure of non-essential retail. Addressed letter volumes had been down 19%
in comparison to 2 years ago, reflecting the continuing structural decline in letters. Domestic
parcel volumes are up around a third compared to pre-COVID. Domestic parcels
performance is still greater sturdy towards ongoing challenges in worldwide.
How company cope with higher volume of parcel deliveries
Royal Mail delivered greater parcels than ever during the Christmas zone of the yr
amid lockdowns across the UK, hothever the company apologised for disruptions to provider
that it blamed on Covid-19 absences. Royal Mail has stored on 10,000 out of the 33,000
seasonal workers who joined for the Christmas height to deal with elevated visitors at some
point of the brand new lockdowns. The country wide lockdowns in January supposed revenue
increase for the 12 months to the quit of March might be significantly better than the £580m
formerly forecast, Royal Mail said. Operating income for the identical length are expected to
be over £500m. Royal Mail has been forced to contend with a speedy and essential shift from
delivering letters for human beings and companies to handing over greater packages as on-
line purchasing booms. The closure of non-crucial stores in the course of the UK’s national
lockdowns has caused greater people than ever to order on-line. That shift, a key mission
faced by means of Simon Thompson, the brand new chief executive appointed ultimate
month, become evident in its modern-day buying and selling replace, with letter volumes

down with the aid of 14% hothever parcel numbers up via 30%. On its busiest day inside the
last area the enterprise added 11.7 million parcels, a 3rd extra than the busiest day in the
course of the first countrywide lockdown in 2020. The company is undergoing expensive
modifications to alter to the shift. Hothever, the boom in parcel deliveries extra than made up
for the lost letter sales. Overall revenues have been up by means of a fifth inside the very last
zone of 2020.
Royal Mail celebrates the London 2012 Olympics by way of issuing 29 stamps celebrating
Team GB’s Gold Medal winning athletes. The stamps are issued the day after the win and
available to shop for in Post Offices by means of lunchtime. Royal Mail additionally paints
over 90 submit containers gold to have a good time our athletes’ success in each video
games. Royal Mail's doorstep service has picked up simply 1,000,000 parcels considering the
fact that being released six months ago, in comparison to the 10 million Hermes picked up in
December. That has brought on the free provide in an attempt to try to inspire greater humans
to apply it. Rivals say that Royal Mail is sincerely playing seize up with its Parcels Collect
service which become launched last October (Singh and Singh, 2020). Delivery firm Hermes
UK talked about it has been offering a courier series carrier for a similar price for greater than
10 years and it is grown in reputation at some point of lockdown, which may also have
induced Royal Mail launching its own version. Royal Mail's system has been hit by means of
a first-rate trouble, leaving human beings unable to properly send out their post. The business
enterprise stated it became aware about a crucial machine issue that changed into affecting its
Click and Drop service, its number one shipping alternative that, as an instance, lets in
businesses to e-book and ship out gadgets to clients.

Analysis
Theme 1: Services offered by The Royal Mail
Q1. Do you have knowledge about the services offered by The Royal Mail?
a) Yes 20
b) No 10
a) Yes b) No
0
5
10
15
20
25
20
10
Chart Title
Interpretation – It can be concluded that 20 respondents stated that they had
knowledge about the concept of the services offered by The Royal Mail. On the other hand,
the remaining respondents stated that they were not aware of the different services that are
offered by the Royal Mail.
Theme 2: Problem faced by the company
Q2. What is the problem faced by the company?
a) Less customers 15
b) Lack of appropriate leadership 5
c) Lack of innovation 10