Running head: USPS GLOBAL & INCLUSION ANALYSIS 1

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1 Running head: USPS GLOBAL & INCLUSION ANALYSIS 1 USPS Global & Inclusion Analysis Team Run OGL355: Leading Organizational Innovation and Change Dr. B November 15, 2017 Arizona State University

2 USPS GLOBAL & INCLUSION ANALYSIS 2 USPS Global & Inclusion Analysis Deciding upon how to take the United State Postal Service (USPS) global was challenging because the organization seems so inseparably embedded in the American way of life. Conceptualizing it away from its monopolistic dependency upon the U.S. Government and imagining it expanding internationally hardly seemed plausible. Furthermore, the majority of countries around the world already have a well-established postal service. However, Team Run considered how the USPS might be able to expand globally into a country that had recently lost all of its infrastructure and was basically starting over. Countries that had recently experienced a disaster or a devastating war and were in need of rebuilding basic infrastructures might make a good target market. We considered many, and finally settled on war-torn Somalia as our target market. We took into consideration the context of a country and the unique cultural characteristics of its people. Perfectly timing our entry in the lifecycle of their re-development, the following comprises our proposal to expand the USPS into the Country of Somalia (Schmid, 2015). Mode of Entry Civil war in the 1980s led to the collapse of Somalia's central government in 1991 (U.S. Relations, 2017, para. 1). Over the next 26 years, the U.S. Government provided military, economic, and humanitarian aid to the people of Somalia (U.S. Relations, 2017). As a part of this supportive effort, the USPS endeavors to provide the people of Somalia postal services to facilitate their communication and commercial growth. The USPS will establish a multidomestic organization in Somalia that does not attempt to replicate its successes, or monopolistic nature as seen in the U.S. (Coulter, 2013). The Somalia Postal Service (SPS) will be run by locally-hired employees and operate under Somali currency as well as mobile-money as

3 USPS GLOBAL & INCLUSION ANALYSIS 3 successfully modeled in nearby Kenya (Posta Pesa, 2017). Business and marketing strategies will be tailored to Somalia s unique characteristics and needs (Coulter, 2013). The reason for this mode of entry is so that the SPS will gain the trust of the Somali people and ultimately be a successful, profitable organization providing a regular revenue stream into the USPS coffers. We propose that the USPS establish twenty-five post offices to start with, organized under the name Somalia Postal Service. These twenty-five main locations will be established nearest to population centers, but distributed evenly throughout the country, with a plan in mind to open additional sub-post offices in the future. Due to the dispersed population and rural nature of Somalia, as well as the substantial investment in mail delivery trucks that would be required to provide on-site delivery, a centralized service model was determined to be most prudent upon initial start-up. Similar to the USPS, in each post office the SPS will rent private, stand-alone mailboxes to individuals, businesses, and organizations where they can receive mail delivery addressed to that specific postal location (Mail & shipping services, 2017). They will provide domestic and international shipping services in the form of registered, first class, or bulk mail (Mail & shipping services, 2017). In addition, they will sell stamps, and shipping materials such as boxes, tape, envelopes, and mailing labels (Mail & shipping services, 2017). Unique to the region, the SPS will also sell airtime to customers who wish to set up an M-PESA account establishing access to mobile-money and will handle the cash transactions associated with those accounts (T.S., 2015). Through a unique, strategic partnership with dominant player Safaricom (Coulter, 2013), the SPS will perform bank-like services useful in a country where many workers in cities send money back home to their families in rural villages (T.S., 2015, para. 2). While the SPS will not be extending loans, they will serve as a trusted

4 USPS GLOBAL & INCLUSION ANALYSIS 4 facilitator of cash transactions into and out of mobile-money accounts. The concept of post offices supporting local commerce in this manner harkens back to the U.S. frontier days when postal stamps were viewed as currency (Post-office stamps as currency, 1862) and the Postmaster was a highly-respected individual in the community. In fact, the USPS still sells money orders today (What is a money order, 2017). Potential Political and Economic Threats to Expansion The SPS will need to make the best use of its many opportunities in order to thrive and prosper, given the many threats it will face in the forms of political strife and economic uncertainty. Somalia is a nation which is currently fractured and divided along political and ideological lines, having endured decades of civil war, occupation by foreign forces, as well as a weak interim government. Despite holding recent elections in February of 2017, the Somali government is still weak and large portions of the nation are under the control of militant extremist groups like al-shabab (Guled, 2017). These issues pose a grave threat to the survival of the SPS, given the lack of political certainty and continuity that exists in Somalia. As noted by Coulter (2013), organizations wanting to do business in countries with low stability face greater uncertainty and threats (p. 199). Economic threats are apparent as well. Somalia presently ranks 177 out of 229 nations in terms of its Gross Domestic Product, with most of the population being nomadic or seminomadic farmers (The World Factbook, n.d.). Given the lower relative earnings, the pricing of our services will need to be low, posing a threat to overall sustainability. Further, there is the threat of lower need for the SPS s services and products. In addition to this, Somalia lacks a formal banking system, with the majority of monetary transactions occurring via wire transfers

5 USPS GLOBAL & INCLUSION ANALYSIS 5 (The World Factbook, n.d.). This will pose a threat to the finances of the SPS, given the lack of safe locations in which the SPS can store and transfer money. Somalia and U.S. Key Cultural Differences In order to establish the SPS, the USPS needs an understanding of the cultural differences that exist in Somalia. Somalia is a different experience than what we are accustomed to in the United States. Somalis belong to clans and subclans. These hierarchical descent groups, each said to originate with a single male ancestor, are a central fact of Somali life (World Relief, n.d.). The Somali clan organization is an unstable system, characterized by changing alliances and temporary coalitions (World Relief, n.d.). We have to recognize these differences in order to thrive with SPS expansion. Coulter (2013) states it is important that the strategic decision makers understand national culture (pg. 202). Most Somalis speak Somali, but also can speak the languages of Arabic, Hebrew, Amharic, Italian, and at times, English (Somali Cultural Profile, 2016). Opinions vary on who holds the highest status in their communities, this includes those who have a strong character, are able to lead, are educated, are wealthy, are able to communicate with everyone, and have knowledge of the Qur an, tribal and family history (Somali Cultural Profile, 2016). Being aware of addressing the Somali culture, it is considered disrespectful to refer to clans or tribes, it is a very sensitive issue that is best avoided when in the United States and some in the community will deny their existence (Somali Cultural Profile, 2016). While the Somali culture has similar values to the United States, there are distinct differences to be mindful of. Do s and Don ts for Interactions with Somali Culture According to Coulter (2013), the presence of cultural differences may have an affect on how organizations are managed. Although Somali culture differs from the culture of the United

6 USPS GLOBAL & INCLUSION ANALYSIS 6 States in many ways, there are some key aspects of culture that U.S. employees of the USPS branch of the SPS should understand when interacting with the Somali people. Somalia is a Muslim country, and Islam is widely practiced by a majority of the Somali people (Lewis, 2017). Those working or visiting the country must hold high respect toward the religious views and practices of the Somali people, as it is something very important to them and their culture. As an outsider, you are expected to respect the religion but not expected to participate in prayer or discussion and you are not to discuss other religions or atheist beliefs (Somali Cultural Profile, 2016). The Somali people are also welcome to physical contact, so long as it is done in accordance to Sharia Law. The Law states that opposite genders are not to touch one another in public, meaning a man greeting a woman is not to shake her hand, but a woman greeting another woman may do so (Lewis, 2017). Additionally, one is not to use his or her left hand when greeting someone. The left hand is perceived as the dirty hand in Somali culture, and one is never to reach, eat, or use this hand when greeting another (Somali Cultural Profile, 2016). Those working to establish the SPS should also take into consideration the fact that Sharia Law dictates what men and women wear. Both genders are not to wear revealing clothing, meaning that Western clothing may be frowned upon, however, the Somali people highly encourage outsiders to wear traditional Somali clothing and welcome their choice to do so (Somali Cultural Profile, 2016). In understanding this, the SPS could make changes to their uniforms or that which they require employees to wear to better fit the culture. The people of Somalia are extremely hospitable, and in interacting with them, it is important to recognize this. Food or gift offerings are very common and generally seen as non committal, however, it is encouraged to give something of the same or lesser value in return at a later time (Somali Cultural Profile, 2016). This should be understood by the employees of the

7 USPS GLOBAL & INCLUSION ANALYSIS 7 USPS as the process of postal delivery could be viewed as a gift delivery, and employees should gladly accept any gifts they are given by their customers should they be given anything so they will not offend the individuals. Additionally, Somali people do not view staring as being rude, and instead view it as a sign of interest. In fact, avoiding eye contact with individuals who are staring, especially if one is to be doing something out of the ordinary like carrying a package, may be viewed as dismissive so it is always best to address those who stare by returning their gaze and greeting it with a smile (Somali Cultural Profile, 2016). Table 1.1 Do s Don ts Wear traditional Somali clothing; showing your willingness to dive into the culture is welcome (Somali Cultural Profile, 2016). Smile at those who are staring at you; they are simply showing interest as staring is quite common (Somali Cultural Profile, 2016) Be respectful of religious views. Islam is widely practiced in Somalia and the Somali people are very devout. You do not need to participate in prayer or discussion, but be respectful of it (Somali Cultural Profile, 2016). Accept food or gifts as offerings. Somalis are extremely hospitable people and there are generally no strings attached. It is okay to argue for the bill as well (Somali Cultural Profile, 2016). Both men and women should not wear revealing clothing (Somali Cultural Profile, 2016). Avoid eye contact with individuals, as it may show signs you are disinterested in what they have to say (Somali Cultural Profile, 2016) Do not discuss any other religions or anti religions (atheism). Somalis will immediately shut down and close their doors to you (Somali Cultural Profile, 2016). The left hand is perceived as the dirty hand so do not eat, reach, or shake hands with someone using this hand (Somali Cultural Profile, 2016).

8 USPS GLOBAL & INCLUSION ANALYSIS 8 Be respectful of Sharia Law and abide by its rules (Somali Cultural Profile, 2016). Opposite genders are not to touch one another in public. As a man, you can touch another man, but you may not touch a woman (Somali Cultural Profile, 2016). Attitudes of Somali Culture In order to establish a well-grounded working relationship with the country of Somalia, the USPS must consider the attitudes and approach when meeting with this culture (Somali Cultural Profile, 2016). Somalis are polite but reserved when meeting with new people, so the USPS should maintain same attitude as this is a sign of agreement. The Somali people have the dimension of collectivism within their communities (Coulter, 2013). They are a fairly tightknit culture and take care of the needs of their people. The USPS must be certain to look out for the needs of the community to establish a developing relationship within Somalia. Gender differentiation as made known by the Global Leadership and Organizational Behavior Effectiveness (GLOBE) research project is a common attitude taken on by the Somali people (Somali Cultural Profile, 2016). There is a hierarchy that places men above women.when interacting with people of the opposite gender, USPS employees must be careful to treat each respective gender with the consideration due them. Typically males should interact with males, and females with females to avoid discomfort or embarrassment on each side. Somalis emphasize an attitude of strong uncertainty avoidance. They are very careful to follow the country s laws, and are sure to avoid offending others (Somali Cultural Profile, 2016). One way that the USPS can avoid offense is by ensuring ample time to meet with their Somali counterparts. Rushing through a meeting can make a Somali feel as though the meeting wasn t properly planned, and can cause offense. Additionally, there is a strong attitude of power

9 USPS GLOBAL & INCLUSION ANALYSIS 9 distance that needs to be considered when working with the Somali culture. One way of keeping this in mind is by making sure to properly acknowledge leaders as they enter the room (Somali Cultural Profile, 2016). This shows the Somali people that the USPS is truly interested in maintaining a positive relationship with them, as reverencing the people in power is commonly practiced. Table 1.2 Attitudes of Somali Culture (Somali Cultural Profile, 2016) Collectivism They focus on the wellbeing of all the citizens versus the individuals. High Power Distance There is an obvious difference between those in power and those who are not. Power is not equally distributed. A high level of respect is required to be shown to those who are considered important within the community. Gender differentiation Men and women have different roles in society and are treated differently. Gender roles enforced. Strong Uncertainty Avoidance Somalis carefully follow the laws of the land and religious law and are not likely to take risks. They are careful to spend the extra time with each other in order to avoid offending and causing uncertainty

10 USPS GLOBAL & INCLUSION ANALYSIS 10 Conclusion In this paper we have described the cultural, political and economical considerations that would need to be made if the USPS were to establish a postal service in a country where currently none exists. It was determined this project may be plausible within the Country of Somalia if we utilized a multi-domestic organizational approach (Coulter, 2013). Nevertheless, there are serious political stability issues to be considered. Somalia, a largely rural country with some city centers, is rebuilding following many years of civil war. The current government is not yet completely stable. However, these rebuilding efforts occur during an age of tremendous technological development. The USPS views the timing of this decision and point in life cycle as ideal in order to obtain competitive advantage (Coulter, 2013). Given the extended project timeline that is necessary due to cultural and attitudinal considerations, the USPS may see improvement in the political environment before committing to a significant investment.

11 USPS GLOBAL & INCLUSION ANALYSIS 11 References Coulter, M. (2013). Strategic management in action (6th ed.). New York, NY: Pearson. Guled, A. (2017, November 12). U.S. Carries Out 3 Drone Strikes Targeting Extremists in Somalia. Retrieved from: Lewis, T. (2017). Somali culture customs and etiquette. Retrieved November 15, 2017, from Mail & shipping services. (2017). Retrieved from Services.htm. Pike, J. (n.d.). Knowledge of Somali Customs. Retrieved from Posta Pesa. (2017). Retrieved from Post-office stamps as currency. (1862, October 2). Retrieved from Schmid, S. (2015, October 5). International Strategy: What Means International Management? Retrieved from Somali Cultural Profile. (2016). Retrieved November 15, 2017, from The World Factbook (n.d.). Somalia. Retrieved from: T.S. (2015, March 2). Why does Kenya lead the world in mobile-money? Retrieved from

12 USPS GLOBAL & INCLUSION ANALYSIS 12 U.S. Relations with Somalia. (2017, April 12). Retrieved from What is a money order? (2017). Retrieved from World Relief. (n.d.). Somalia Cultural Profile. Retrieved from