Free

British Telecom: of the Benefit or the Merit of Privatization - Research Paper Example

Comments (0) Cite this document
Summary
The present essay is intended to analyze the benefits and processes involved in privatization. There are three methods of privatization. Of these three the first one namely, share issue privatization is the most commonly used method of privatization…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.7% of users find it useful
British Telecom: of the Benefit or the Merit of Privatization
Read TextPreview

Extract of sample "British Telecom: of the Benefit or the Merit of Privatization"

Running Privatization Privatization-An analysis Privatization is a process by which a public sector organization run by the government is taken over by a private entrepreneur or a group, or the ownership of an organization or a business or an agency is transferred from public sector to private sector (Chowdary, 2006). The present essay is intended to analyze the benefits and the processes involved in privatization.
There are three methods of privatization
1. Share issue privatization: In this process shares of the organization is sold at stock market
2. Asset sale privatization: Here the entire firm is sold by auctioning
3. Voucher privatization: Share of the ownership is sold to all citizens of the country at a very low prize.
Of these three the first one namely, share issue privatization is the most commonly used method of privatization.
There are many benefits for privatization. The major benfit is the importance it gives to customer. When the monopoly is with the government, the customer is given least importance and the service provided is not satisfactory. But privatization increases the quality of services to the customer and thus resulted in greater customer satisfaction, although the price for the services has increased. Another advantage of privatization is the change in attitude of the government employees. They started to behave in a cordial manner to the customer and began to treat the customer as a respectful entity. Complaints regarding the service have tremendously reduced in all the sectors, which have undergone privatization in India (Dwivedi, 2007).
Another important advantage of the privatization is the increase in competition or a free market competition. This would ensure higher quality of products, timely delivery of the products, reduce costs over a period of time, no red tape delaying, less corruption, more choices for the customer to choose from etc. When the entire monopoly of a business is with the government it is not possible to measure or compare its efficiency. The government is not bothered about the profit it makes and also the losses. But a private owner would be keenly interested in profits and would make necessary changes in the organization to maximize the profits thus resulting in better performance and specialization.
British telecom is one of the most important sectors, which was privatized towards the last of last century, more precisely in 1982. Privatization resulted in a change in the organizational structure, which gives more focus on specific market needs and the different sectors of the market. Now it is almost 20 years and privatization has resulted in tremendous improvement of the enterprise. The managers who resisted privatization later became the advocates of privatization mainly because of the greater benefits they enjoyed in a private sector. The share value increased more than six times. The number of skilled labors was reduced, without any existing staff, thus increasing the profit of the company. Political intervention in each and every aspect was considerably reduced. The company now leads in the supply of converged network services (The historical development of BT, 2009).
Thus it could be seen that privatization has resulted in greater benefits to customers as well as those who are within the organization. It has resulted in the improvement of quality and quantity of products and services. British Telecom is a good example of the benefit or the merit of privatization.
References
Chowdhury, F. L. (2006). Corrupt Bureaucracy and Privatisation of Tax Enforcement, Pathak Samabesh, Dhaka.
Dwivedi, K. (2007) Privatization and its benefits [online] Available at: http://www.merinews.com/catFull.jsparticleID=124950 Accessed on 10th June 2009.
The historical development of BT (2009) [online] Available at: http://www.btplc.com/Thegroup/BTsHistory/History.htm Accessed on 10th June 2009. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“British Telecom: of the Benefit or the Merit of Privatization Research Paper”, n.d.)
British Telecom: of the Benefit or the Merit of Privatization Research Paper. Retrieved from https://studentshare.org/business/1528138-privatisation-essay
(British Telecom: Of the Benefit or the Merit of Privatization Research Paper)
British Telecom: Of the Benefit or the Merit of Privatization Research Paper. https://studentshare.org/business/1528138-privatisation-essay.
“British Telecom: Of the Benefit or the Merit of Privatization Research Paper”, n.d. https://studentshare.org/business/1528138-privatisation-essay.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF British Telecom: of the Benefit or the Merit of Privatization

Merit

...? Merit Essay Pojman is a renowned psychologist who has brilliant ideas on human behaviors. He is a psychologist who advocates for equality in all humans. I strongly disagree to the argument of Pojman of rewarding the virtuous and punishing the vicious relatively to the extent of their deserts. In the practical world, this will be unrealistic because people are used to the contrary. There will be many questions of human rights that will arise. From the ancient periods, it is difficult to measure what is considered equally just. In the contemporary situation, most people are rewarded on the basis of assumption and estimates. In the education sector, most students do not get what is rightfully theirs. Most students feel...
2 Pages(500 words)Essay

British Telecom

...undoubtedly has no power to control this tendency or to change it. That is why it will have to rely on new innovations in order to countervail the tendency mentioned or reduce its negative impact. In my opinion the project Blue Phone is of paramount importance for the business of the company. Certainly in order to succeed the project requires expenditure on R&D, but it is worth spending money on this project as it will bring benefits in the long run. Second the company should adapt to the increasingly unpredictable environment in order to succeed. Works cited. BT Group Plc, Datamonitor, 2005. Available from About British...
7 Pages(1750 words)Assignment

Effective Privatization

...(now taken back into public ownership as a not for profit organisation) 2 British Air Ways 3 Air Traffic Control 4 British Steel 5 British Gas 6 British Telecom 7 The Water Companies 8 And most Power Companies To assess the effects f the present governments nationalisation policy we would have to take in to consideration the fact that we have a socialist government, one f whose key beliefs is that public ownership is the better way to run the country, although this government does not appear to be as hard line in that respect as previous Labour Governments. (Stiglitz 1994, 307-323) Arguments for Privatisation 1 Opening up production and consumption to...
8 Pages(2000 words)Essay

Telecom Industry

...there is no huge price discrimination in this industry, ultimately the customer stands to benefit from the healthy rivalry in the oligopoly market of the telecom industry. 5. Effects of Regulation, Market Structure on Performance of Telecom Industry 1. Pricing: The state ownership and prospective privatization leave prices and quality largely unaffected. Given that market structure and the degree of liberalization are controlled for, it is not ownership per se but the presence of market power that tends to be reflected in high prices. At the same time state control has often been associated with highly distorted price structures, since cross-subsidization tended to be...
12 Pages(3000 words)Essay

Merit

...Pojmans Argument for Merit and Desert Background At times, the argument and quotations given by the philosophers’ turnout to be misleading, because of their careless approach. This is best understood with the help of Pojmans statement- “the virtuous are rewarded and the vicious punished in proportion to their relative merit and deserts”. It is a careless statement but holds merits and desert both in it. Introduction Merit is a reward or a punishment given or granted to a person; on the other hand desert is obtaining a reward or punishment earned. The inference that can be drawn from the statement “the virtuous are rewarded and the vicious punished in proportion to their...
6 Pages(1500 words)Essay

Telecom

... Information Systems in Business Keeping abreast of telecom requires continually peering into the future and testing out new ideas. Since building a true R&D capacity of this sort this can be expensive, how might a smaller organization solve this problem? Smaller organizations have distinct and virtually limited requirements as compared to medium-sized or large organizations in terms of the need to address keeping abreast of telecommunications trends. It is true that building research and development (R & D) capacity can be expensive if potentially all comprehensive details, information and applications are required to be integrated and incorporated in the organization’s database. However, to serve simplified organizational goals... into a...
2 Pages(500 words)Essay

Telecom Eireann

...Telecom Eireann Question GIS development and implementation took longer because of participation from numerous stakeholders, whichnecessitate input from all stakeholders. Introduction of new information technology system further delayed the process, for it takes a considerable amount of time to transit from one system to another. It is evident that users and developers were willing to contribute to the process, but they needed to participate in each of all business processes involved. Information need is the chief factor in this project, as it is stated that the most knowledgeable and proficient project manager had to be secured. Involvement of labour union in all aspects of the process exemplifies that decision making...
1 Pages(250 words)Essay

Economics (merit good) education

...and consequently have an improved way of life (Ver Eecke, 2003, p. 701). Other merit goods include goods and services like health services that the government provides for its citizens for the benefit of the community. This is usually conducted because it would lead to under-provision within the community. It also generates difference between the social and private expenses in addition to the advantages of creation and exploitation leading to the risk of not selling the goods and services (Besley and Ghatak, 2003, p. 235-249). Merit goods are also those goods and services that the government thinks consumers will under utilize, and they ought to be provided free for the...
6 Pages(1500 words)Essay

Water privatization

...and consequently access to unsafe water. In fact the author argues that various governments have resulted to asking private companies to run the water sector in an attempt to get good results (Segerfeldt 1). The scope of water provision improved a great deal despite the various protests staged to stop this process. The issue of prices, as the author indicates, needs to be overlooked as the areas linked with privatized water have continued to benefit greatly from the efforts (Segerfeldt 1). Notable examples include Chile, Guinea, Argentina and Philippines amongst others that have benefited from the privatization process through saving its citizens...
9 Pages(2250 words)Research Paper

Privatization

...privatization, governments try to improve the performance of their duties like infrastructure etc. In the past, privatization has occurred in many different countries. In the Great Britain, privatization started with partial privatization of British Petroleum in 1979. A large number of industries were privatized after this like British ports, British Telecom etc. In 1987, one of the largest airlines in Europe, British Airways was also privatized. Along with these, many other assets such as buildings, roads and buildings were also...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic British Telecom: of the Benefit or the Merit of Privatization for FREE!

Contact Us