PUBLIC SECTOR VALUE CHAIN: IMPACT ON PRICES AND BUSINESS MANAGEMENT
PUBLIC SECTOR VALUE CHAIN: IMPACT ON PRICES AND BUSINESS MANAGEMENT

Summary/Abstract: The paper presents the interconnection of public sector and enterprise value chains in the field of price policy implementation, which can influence both changes in new value and the enterprise management model. The starting point was the hypothesis that the value chain system of a company is not only connected with the value chain of other companies, but also of public sector institutions.This hypothesis is tested on the examples of two public sector institutions in the Republic of Republic of Serbia - the Regulatory Agency for Electronic Communications and Postal Services and the Tax Administration, whose decisions directly affect the change in regulated sales prices of companies or adjust the profits of related parties based on transfer prices. A modified public sector value chain is also given for this example. In the case of price regulation, companies are also obliged to calculate costs based on activities (ABC - Activity Based Costing). ABC may later influence possible changes in the management of the company and application of the ABM (Activity Based Management) model. Due to the wide range of possible consequences for changes in companies, the public sector has a great responsibility in improving the design and modification of its own value chain. All together it should lead to greater efficiency and effectiveness of both the public and private sectors.

• Details
• Contents