This hypothetical case is a paradigm of privatization decision in many jurisdictions as they struggle with budget. It tells the story of the city manager of a small Texas town, the reason to believe that when they pick up the offer of a private company and dispose of waste were to assume they could balance the city budget and save enough money to avoid over compromising the lone hours of the city’s social worker. Privatization, however, mean firing two popular long tim … Read more »

This hypothetical case is a paradigm of privatization decision in many jurisdictions as they struggle with budget. It tells the story of the city manager of a small Texas town, the reason to believe that when they pick up the offer of a private company and dispose of waste were to assume they could balance the city budget and save enough money to avoid over compromising the lone hours of the city’s social worker. Privatization, however, mean firing two popular long time in the city sanitation employees who also do assorted maintenance tasks as soon as they finished hauling the garbage. The case challenges students to assume the role of the city manager and decide after analyzing the current city budget and costs, as well as the private waste collection bid, whether or not “go private.” HKS reference number 1033.0.
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from
John D. Donahue
Source: Harvard Business School
6 pages.
Release Date: 1 January 1990. Prod #: HKS828-PDF-ENG
Garbage collection in Lone Pine: to privatize or not? HBR case solution