UNIT 1: EXPLORING BUSINESS ACTIVITY Public Sector Strategies

Introduction: Broader aims than the private sector Not just focused on profitability All in society are important stakeholders, e.g. tax payers, national & local government

Service Provision: Public sector has emphasis on public service Example – BBC What other services are provided on behalf of the Government? Some services are provided by central/national government; some by local government

Cost limitation: Government responsible for around half of all spending in Britain Government revenue (income) is generally raised through taxation Government has a responsibility to use taxpayers money carefully Government needs to be accountable for its spending

The Audit Commission: An independent public body working on behalf of the government to identify ways to reduce unnecessary costs and make sure public money is used properly, e.g. in areas such as: Housing, health, fire and rescue, etc

Value for money: Providing services at lowest cost Using resources to produce services Making the most efficient use of those resources Government departments are allocated budgets to spend & expected to use them as efficiently as possible = value for money

Meeting government standards: Standards and targets are set for providers of public services to meet Example: Primary Health Care Trusts (PCT’s) meet the needs of local populations for health care.

Service level agreements: Agreements made between a service provider and those providing funds Set out standards and targets to be met

Quality Assurance: This is a standard that may be set in an SLA Example: – Local council hire contractors to collect household waste – Contractor has SLA with the local council – Expected to meet standards of punctuality & cleanliness – Providing quality service by turning up on time and doing what is expected of them in a friendly, cheerful way

Growth of range of provision: Public service provision must meet needs of local community, e.g. new roads to ease traffic flow Demand grows for new types of provision, e.g. Swine flu pandemic of 2009 called for increased stocks of Tamiflu vaccine Government must always identify ways of improving and widening range of services