The Eastland Postal Service is government owned. The government requires it to provide parcel delivery service to every home and business in Eastland at a low price which is set by the government. Express Couriers Co. is a privately owned parcel delivery company that also operates in Eastland. It is not subject to government regulation and most of its deliveries are to large businesses located in Eastland’s capital city. You have been asked to assess the relative efficiency of the management of the two organizations.
Which of the following factors should NOT be allowed for when comparing the ROCE of the two organizations to assess the efficiency of their management?
(a) Differences in workforce motivation
(b) Differences in objectives pursued
(c) Differenced in prices charged
(d) Differences in geographic areas served