Can Commercial Strategic Models Transfer To The Private Sector

Level: Undergraduate | Grade: 2:1 | Approx. Word Count: 2,250

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With the increase in public/private partnering for delivery of project, one factor critical to its successful outcome is the harmonisation of the strategic management of the two organisations. To evaluate whether strategic compatibility is achievable, this essay examines whether it is feasible for public sector organisations to adopt commercial models of strategic management.

A review of the literature confirms that while the objective of any organisation, irrespective of its public/private status, is to achieve success through satisfying the needs and demands of the consumer, there is a difference in the criteria by which success is measured by the respective managers. For the private sector success is measured by business growth and improved financial performance. In contrast, success for a public sector organisation, the measurement is based on delivering its objectives within the constraints of government funding. However, it is the extent to which these factors can be harmonised that will determine the ultimate outcome of a public/private partnering initiative.