1.5.3 Objectives of Private vs Public Enterprises
Instruction :
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Go through all instructions and course details thoroughly before starting each lesson or activity.
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Watch the attached video lessons attentively and take clear, organized notes in your notebook.
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Write all answers for the attached worksheets in your notebook. Make sure your work is neat and properly labeled.
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Revise your notes and completed worksheets after each lesson to reinforce understanding.
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If you face any difficulty or have questions, note them down and contact your instructor or course coordinator for guidance.
Click to download the Video Lecture Handout.
Good morning class. Today, we’re going to explore the differences in the objectives of private sector enterprises and public sector enterprises.
Don’t worry, I’ll explain with clear examples so you can connect them to real life.
Let’s start with the private sector. These are businesses owned by individuals or shareholders, like McDonald’s, Apple, or Toyota.
Their main objective is usually profit maximisation – making as much money as possible. For example, a supermarket chain tries to increase sales and cut costs to boost profits.
Another private sector goal is growth and expansion. Think of a tech company developing new apps to reach customers in other countries.
Private businesses also aim for customer satisfaction – keeping people happy so they return. For instance, an airline improving in-flight meals to win loyalty.
And don’t forget efficiency – running operations at low cost and high productivity to stay competitive.
Now let’s move to the public sector. These businesses are owned and run by the government, like public hospitals, postal services, or transport systems.
Their main goal isn’t profit, but social welfare – improving citizens’ lives. For example, a public school offering free education to raise literacy.
Public sector organisations also aim to provide affordable services. A government bus system might give discounted fares to students and seniors.
They may focus on employment generation, creating jobs even if it’s not the most profitable way. And they work for economic stability – supporting the economy during hard times,
like public health departments staying active during a pandemic.
Now let’s think about stakeholders. In the private sector, owners want maximum return on investment, employees want good pay and growth,
and customers want quality at fair prices. In the public sector, the government itself is the owner, employees often get more job security,
and customers expect access to essential services at affordable costs. The community wants jobs and ethical behaviour from both sectors.
Let’s compare with a quick example. A private hospital charges high fees for specialised treatments and aims to expand into other cities for more profit.
A public hospital, on the other hand, provides free or cheap healthcare for everyone, even if it loses money.
So class, let’s recap. Private sector objectives focus on profit, growth, customer satisfaction, and efficiency.
Public sector objectives focus on welfare, affordable services, job creation, and economic stability. Both are important – private businesses drive competition and innovation,
while public enterprises ensure fairness and access for all.
By the end of today’s lesson, you should be able to explain the objectives of private and public sector enterprises,
compare their stakeholder goals, and give real-life examples of each.
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