Why Firms are Nationalized?


One might assume that government ownership of the factors of production is found only in communist or socialist countries, but that assumption is incorrect. Large segments of business are owned by the governments of many countries that do not consider themselves either communist or socialist. From country to country, there are wide differences in the industries that are government owned and in the extent of government ownership.

There are a number of reasons, sometimes overlapping, why governments put their hands on firms. Some of them are 1) to extract more money from the firms—the government suspects that the firms are concealing profits; 2) an extension of the first reason—the government  believes it could run the firms more efficiently and make more money; 3) ideological—when left-wing governments are elected, they sometimes nationalize industries, as has occurred in Britain, France, and Canada; 4) to catch votes as politicians save jobs by putting dying industries on life-support systems, which can be disconnected after the election; 5) because the government has pumped money into a firm or an industry, and control usually follows money; and 6) happenstance, as with the nationalization after World war 11 of German-owned firms in Europe.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Courtesy and Competence


The two go hand in hand. Statistics show that customers seem to be happier being served by an enthusiastic amateur rather than an indifferent expert. Now for you this might be determined by whatever it is you’re being served with as a customer. For example, if I was going to the dentist, I think I might put up with some indifference if it was an expert dentist. However, the reality is of course that we want both. I would like a dentist that was relaxed and personable and at the same time accurate with his/her instruments.

Common courtesies and manners are very important, probably more important than you may consider at this point. They are also, very often, culturally based—for example, German consumers will place less importance than Italian or British consumers on such things as friendliness and personality. How you can actually be courteous and good mannered will also vary, for example, in Britain many people will shy away from the perhaps over zealous. American style of being best buddies and will avoid expressions such as ‘have a nice day’ even though, when said sincerely, customers warm to them.

Competence means that whoever serves the customer in your business or whoever supports people that serve customers in your business has to do things and do them well. It means getting things right first time. It means knowing what you should know. It means doing what you can do to the best that you can do it—competence and courtesy, hand in hand—it’s a licence to keep customers for life.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight