Take a case of public enterprise which is about to be privatised or has been privatised . Analyse the pros and cons of such an exercise undertaken by the government.(the case of vsnl or balco can be taken up)
dear student
Following ayr the PROS of privatization of VSNL :
Following ayr the PROS of privatization of VSNL :
- Better management :It means making the management more effective and efficient.
- Profit motive : it means to maximise the profit earned by the company.
- better customer services
- New investments in VSNL such as investment by TATA communication.
- Decreased burden of management on the government.
- Lack of service motive.
- Government no longer receive any profits from such company after its privatisation.
- Their may be a decrease in the quality of services provided by the company because of maximisation of profit motive.
- Rise in the price for the services offered by the company.