In contrast, firms which were exposed to the ‘test’ of the market
would have to satisfy both the consumer and the financial markets if they were to survive
or to avoid takeover by more efficient and competitive organisations.
Allied to this argument was the proposition that privatisation would improve the performance
of an organisation’s management and workers. Freed from the need to meet
objectives laid down by government, management could concentrate on commercial
goals such as profitability, improved productivity and cost reduction