Operating a statutory body in a commercial environment
A Port of London Authority case study

Page 1: Introduction

Government plays an important role in the lives of individuals and business organisations. There are many reasons why governments intervene in markets. For example, during the Second World War, many industries were taken over by the Government to co-ordinate production to meet the war effort. One organisation set up to provide key benefits not just to the people of London but also to the country...
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Page 2: The PLA’s mission

All organisations aim to serve the needs of their stakeholders. These can be individuals or groups, e.g. shareholders, managers, employees, customers or the general public, who have a stake in the running of the organisation or in the consequences of its activities. In order to show stakeholders what its core values are, an organisation produces a mission statement. The PLA’s mission...
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Page 3: Funding operations

The financing of a business organisation is not a precise science where income and expenditure can always be matched. Financing the requirements of a business needs careful planning and it is important that an organisation has a reliable cash flow. A company will raise money from shareholders who put funds into a company in return for shares. The PLA, however, is a public trust - it does not...
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Page 4: Becoming competitive

The river is both a national asset and a busy centre of commerce. Riverside land is in great demand for both residential and industrial use. Within this complicated juggling act, the PLA remains an independent statutory body operating in a fiercely competitive environment. Promotion One of the PLA’s major functions is to promote the Port of London to the world. It is, in many ways, an...
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Page 5: Meeting stakeholder needs

It is unacceptable for a modern organisation to ignore the impact of its activities on the wider community. People living in the society in which an organisation operates are also stakeholders. The PLA is confronted by a wide array of issues and has to try to balance the interests of all the stakeholders. These concerns can range from encouraging international shipping companies to use the port...
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Page 6: Conclusion

It is important that organisations adopt a broad approach to strategies which take the needs of their stakeholders into account. The PLA tries to keep all its stakeholders as happy as possible by adopting a highly positive commercial approach in all its dealings. It must consider the private costs of its actions, as well as the wider social costs and benefits, and balance the commercial aspects...
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