Prior to beginning work on this interactive assignment, read Chapters 6 and 8 in your textbook.
Within the market economy, companies and organizations strive to minimize risk and competition while maximizing profits. However, as mentioned in the text, law enforcement agencies, as government entities are unable to minimize competition or maximize profits while still working within parameters of supply, demand, and competition similar to other businesses.
While it is generally true that law enforcement agencies are unable to minimize competition and maximize profits, the same cannot be said to be true for correctional organizations. Private prisons have been a staple of the correctional field for decades. Most of these agencies are very profitable and continue to tailor their product to the demands of the public marketplace. If the supply of inmates and demand for additional space is necessary, a private prison merely uses a portion of its profits to build new facilities in an effort to maintain equilibrium.
For this interactive assignment, you will take on the role of a supervisor in either a law enforcement agency or a correctional organization. Once you have chosen your role, you must draft an executive summary in an attempt to redirect efforts by decision makers within the state government who wish to cut your organization’s operations budget. Your executive summary must address issues pertaining to supply, demand, competition, and cost minimization in order to influence those in the state government who would approve or reject the proposed budgetary cuts. (A Sample Executive Summary is provided by the Ashford Writing Center for your convenience.)
Create a one-page, double-spaced executive summary document applicable to your selected agency. Include the following content in your document:
- Explain the elements of public finance and budget management as applied to your selected organization including how equilibrium, price, and quantity will change if supply or demand for service is altered within your organization.
- Briefly analyze the technical aspects of budgeting and finance and explain how competition within your selected organization currently exists and how this affects the market value of the services provided by your agency.
- Evaluate the financial constraints that arise in budgeting due to equilibrium and competition within your chosen organization.
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