Public goods are those that are non-rivalrous and non-exclusive. Non-rivalry means that the consumption of the good by one individual does not reduce the availability of the good for consumption by others. Non-excludable being that no one can be effectively excluded from using the good. A private good on the other hand is a good that exhibits both excludability and rivalrous. Excludability being it is reasonably possible to prevent a class of consumers (e.g. those who have not paid for it) from consuming the good. Rivalrous being the consumptions by one consumer prevents simultaneous consumption by other consumers. Private goods satisfy an individual want while public goods satisfy a collective want of the society. In the private sector, generally the main principle is to make as much money as possible. In competitive markets, firm’s objectives are to maximise profits. This can be seen as both a positive and a negative. Organisations will tend to be run very efficiently to compete with competitors, but on the flip side means that they could control producer power and don’t act in the favour to consumers.
The private sector is always looking to improve and be as innovative as possible, striving for excellence. This is done so that they can capitalise on their market share of the good or service that they are providing. This can be seen as both an advantage and disadvantage. It provides individuals within organisations no glass ceiling. The greater effort that they put in the higher the rewards they will reap. Therefore as the company grows there