Strategic Management - Public Sector Term Paper

In this order of ideas, both private and public companies desire to possess and use the latest technologies on the market as to increase the performances of their operations. Take for instance the case of a new and better accounting software. This will not only be sold to private companies, but also to the entities in the public sector. As such, the strategic approach of the technologies used by the two types of companies is also similar, with the specification that private companies are sometimes better financially equipped to make the desired purchases.

In terms of financial strategies, both organizations wish to attract various investors to fund their operations. Whereas the private companies issue stocks, bonds or engage in other types of financial operations to retrieve funds from interested investors, the public companies often find it more difficult to attract the needed funds. Take for instance the case of a state university. The administration of the college is unable to list the school on the market and gain shareholders and most of their operations will be financed from governmental subsidies. But like the private companies, they have the need, desire and capability to attract additional funds. In this order of ideas, the university could live of donations or several academic programs financed by wealthy individuals. In all, the private and public entities are similar from a financial strategic standpoint as they make increased efforts to attract additional funds.The primary difference is that the investors in the private sector are driven by the possibility to increase their future income, whereas the "investors" in the public sector do not expect to make a financial gain, but are driven by personal interest (such as a desire to give back to the community) and are often more difficult to attract.

Finally, both private and public owned companies are interested in making a difference within the communities where they activate. In this particular instance, they develop wide series of strategies in regard to their customers, their employees, the government or the general public.

As such, the conclusion made here is that like the private companies, the public entities have the same understanding of the strategic approach. They hire the best candidates, they purchase the best technologies, they attract additional funds and they give back to the shareholders.

Human Resource -> Technologies -> Funding -> Shareholders

In all, however the two types of companies often possess varying resources and are driven by different goals, they develop and implement similar strategies, in various domains, all to support them in reaching their established goals.

References

Kickert, W.J.M., Klijn, E.H., Koppenjan, J.F., 1997, Managing Complex Networks: Strategies for the Public Sector, SAGE Publications

Whicker, M.L., Areson, T.W., 1990, Public Sector Management, Praeger Publishers.....