Privatization Swot Analysis

It has been shown that when employers are required to pay their workers more it will force many to put off hiring, cut back the hours, and even lay off employees, just to keep labor costs down. A brewing company in North Carolina pays all of their 44 employees the minimum wage, but the owner estimates that with an increase in the minimum wage their company would have costs of up $40,000 (Quittner). Since costs would increase, small companies would be trying to find ways to compensate that pay. First they would have to cut back on the number of hours someone works, because they would not be able to keep paying the workers to be at work. It is necessary to balance their intake and outtake on money.

One explanation appeals to be behavioral traits; the managers acquiring firms may be driven by overconfidence in their ability to run the target firm better than its existing management. This may well be so, but we should not dismiss more charitable explanations. For example, Firms can enter a market either by building a new plant or by buying existing business. If the market is not growing, it makes more sense for the firm to expand by acquisition. Hence, when it announces the acquisition, firm value may drop simply because investors conclude that the market is no longer growing.

A corporation is owned by shareholders, who profit from the company 's gains. A partnership is owned by two or more people who divide the business ' profits. Also, corporations can raise funds easier than other businesses, according to the U.S. Small Business Administration. Corporations can sell stock to raise money for business expenses or cover debts. Whereas partnerships must try to come up with funds on their own, or turn to loans or credit programs to raise money.

It will reduce the bargaining power of the buyers plus it will provide an opportunity to the firm to streamline its sales and production process. • By rapidly innovating new products. Customers often seek discounts and offerings on established products so if Twitter, Inc. keep on coming up with new products then it can limit the bargaining power of

Many people against raising the minimum wage argue it would raise the unemployment rate. Many argue companies wouldn’t be able to keep the same amount if workers, and half a million jobs would be lost (Minimum wage). This is not true, the extra money in customers hands would raise the economy enough to cancel out the extra costs, and actually create more jobs. Jobs might initially be lost, but in the long run, they will recover with a vengeance. In the end, when people say raising the minimum wage would lose jobs, it is a temporary loss that will recover within a year or

Supporters believe that raising the minimum wage will positively affect the economy. The individuals that are not supporters of the minimum wage increase feel that an increase, (while it is helping low-income individuals) will make it more difficult for companies and businesses to succeed. Anti- supporters believe that due to the fact that company owners would have to raise wages or prices of their products in order to make profits, this could eventually lead to the business closing. This could then lead to a “trickle-down” effect for the rest of the economy. Anti- supporters believe an increase in the minimum wage will negatively affect the economy.

This is true because baby boomers will slowly drain down to 3 trillion dollars’ stock pile that social security is a master of a last few decades. By 2033 we won’t be able to pay the senor citizen the amount that they are owed but that is not a reason to blow up social security. Right now, social security system is partially funded meaning that it takes out the pay checks of workers to be able to pay for the retired, but to help benefit the system and make it better than what it is we could fully fund it meaning benefits will be payed from a trust fund instead of a worker paying into the

What impact will the prospect of deprivatization have on investment by managers of privatized firms? Deprivatization occurs when ownership is transferred from the private sector to the public sector. So if a private firm reverts back to government ownership, the managers will have less control over the company. They many even lose their jobs. Therefore, any investments made by the company could possibly be lost or the investment strategy may change under the new ownership.

Ever since the Great Depression, the minimum wage has been in effect — in order to reduce poverty and solidify that employees are paid a reasonable sum. Although the minimum wage can be beneficial and advantageous for individuals and to our economy as a whole, it can also be detrimental to our nation’s finances. The federal government should not allow this to pass, but rather they should increase the citizens’ knowledge of the pernicious consequences and complications that will arise with a higher minimum wage, especially one as high as $15 per hour. Some of the resulting conflicts that will occur if this possible raise in the federal minimum wage takes effect are: job loss, business failure, higher consumer prices, and a lower demand for uneducated employees. Although it may appear as if increasing the federal minimum wage will help to lift families out of poverty, in

A structural reform that would thus help reduces the burden on the taxpayers (Harris, 249). One of the things that would be kept in place would include abolishing price controls, provision of new capacity left to the private sector without taxpayer support, build new infrastructure in high demand locations, and uneconomical projects that are driven by political motives and special interest lobbying would be abolished. The tax imposed on businesses and individuals to support the railway industry destroy job creation and wealth creation as well. Removing rail subsidies could assist in benefiting the passengers by bringing in entrepreneurship and innovation on the railways that could help bring down