EOpriv: Building a competitive operation

[Dan Bell <dbell@kent.edu>]

Here is one more section. Again, your feedback and ideas
are welcome.


5.5     Building a competitive operation

        No business can be a source of wealth creation for its employee owners 
if
its revenues do not exceed its costs. The newly privatized enterprise needs
an environment in which it can be competitive. Assuming, at least in the
beginning, comparatively low levels of quality and high levels of cost, the
new company may not be able to enter the international market immediately.
It also may have a difficult time competing against imports if no
government protections are in place.

        The privatization agency should only accept bidders with business plans
that include a realistic three to five year plan of operational
improvements and capital expenditures which will allow the enterprise to
compete unassisted eventually. During the transition period, however,
either government subsidies to make competitive prices possible or
protective tariffs to make higher prices competitive will be necessary.

--
Dan Bell
International Program Coordinator
Ohio Employee Ownership Center
Kent State University
Kent, OH 44242
(330) 672-0333 << New direct number!
(330) 672-4063 fax
dbell@kent.edu
http://www.kent.edu/oeoc/
http://cog.kent.edu