explain 5 merits and demerits of global enterprises
- It is more effective in achieving the objective laid down by government. as it is under the direct control of government.
- It is a source of government income as its revenue goes to government treasury.
- It is accountable to parliament for all its actions which ensures proper utilisation of funds.
- It is suitable for activities where secrecy and strict control is required like defence production.
- It suffers from interference from minister and top officials in their working.
- It lacks flexibility which is essential for smooth operation of business.
- These organisations are usually insensitive to consumer needs and do not provide goods and adequate service to them.
- Such organisations are managed by civil servants and government officials who may not have the necessary expertise and experience in management.