[KN] Better efficiency and productivity.
[AN] Private firms maximize their profit by lowering the cost by which productivity would increase.
[AN+] This leads towards more savings.
[KN] Increase their profits.
[AN] Private firms would aim to increase their profit by producing goods that are in demand.
[AN+] This leads towards more sales of the business.
12 Analyse the reasons of privatisation of businesses. [6]
Moderators: Salman Khalid, Syed Mustafa Ali
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Farzan Siddiqui
- Trade Titan
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hafsa kashif
- Grand Commerce Guru
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Re: 12 Analyse the reasons of privatisation of businesses. [6]
[KN] To increase the customer base along with market share
[AN] Private companies often have the urge to provide higher quality goods and services to customers which attracts them leading to increase in brand reputation
[AN+] Thus this will result in the opportunity to collect more revenue for the business which will further lead to investment in business expansion
[KN] Increasing competition
[AN] Privatization allows decreases the barriers to enter different industry which increases the market competitiveness thus Increased competition causes variety of similar goods which makes the demand for such goods price elastic leading to firms respondin by offering lower prices with high quality which increases the choice for customers.
[AN+] Thus, customers get to enjoy better quality products so it is win win situation for them increasing their satisfaction too.
[AN] Private companies often have the urge to provide higher quality goods and services to customers which attracts them leading to increase in brand reputation
[AN+] Thus this will result in the opportunity to collect more revenue for the business which will further lead to investment in business expansion
[KN] Increasing competition
[AN] Privatization allows decreases the barriers to enter different industry which increases the market competitiveness thus Increased competition causes variety of similar goods which makes the demand for such goods price elastic leading to firms respondin by offering lower prices with high quality which increases the choice for customers.
[AN+] Thus, customers get to enjoy better quality products so it is win win situation for them increasing their satisfaction too.
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Abbas17
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Re: 12 Analyse the reasons of privatisation of businesses. [6]
[KN] private firms would generate higher productivity and efficiency
[AN] this would mean that their cost of producion is lower
[AN+] which allows them to be more mobile with prices and adapt to market changes
[KN]it also have reduced govt intervention
[AN] this allows businesses to respond to market changes in demand and supply better
[AN+] this helps with customer retention for the long run.
[AN] this would mean that their cost of producion is lower
[AN+] which allows them to be more mobile with prices and adapt to market changes
[KN]it also have reduced govt intervention
[AN] this allows businesses to respond to market changes in demand and supply better
[AN+] this helps with customer retention for the long run.
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Hussain Asghar
- Trade Titan
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Re: 12 Analyse the reasons of privatisation of businesses. [6]
[KN] Higher competition
[an] When more businesses enter private sector,the role of market forces demand and supply increases in resource allocation decisions
[an] As a result in order to gain maximum market share and to become a market leader, a business increases efficiency and improves quality of its products leading to high customer satisfaction
[KN]To increase productive capacity
[an] private sector invests more in capital than the govt does hence this increases quantity of capital (FOP)
[an] leading to low costs and high output, which eventually results in economies of scale
[an] When more businesses enter private sector,the role of market forces demand and supply increases in resource allocation decisions
[an] As a result in order to gain maximum market share and to become a market leader, a business increases efficiency and improves quality of its products leading to high customer satisfaction
[KN]To increase productive capacity
[an] private sector invests more in capital than the govt does hence this increases quantity of capital (FOP)
[an] leading to low costs and high output, which eventually results in economies of scale