Beruflich Dokumente
Kultur Dokumente
CHAPTER 8:
An organization that provides some service or goods with no intention of earning a profit. NFP includes Private nonprofit corporations (such as hospitals, institutes, private colleges, and organized charities) as well as Public governmental units/agencies (such as welfare departments, prisons and state universities)
NFPs are dependant on dues, assessments or donations for their revenue sources.
In NFP organizations there is likely to be a very different sort of relationship between the organizations providing and the person receiving the service. Because the recipient of the service typically does not pay the entire cost of the service, outside sponsors are required.
Pattern of Influence on Strategic Decision Making Pattern of influence is derived from its source of revenues. Those who fund the NFP are likely to have significant influence on its operations
Some strategic management concepts can be equally applied to business and not for profit organizations whereas others cannot. The concept of competitive advantage is less useful to the typical not-for-profit organizations than the related concept of Institutional advantage. A NFP organization is said to have institutional advantage when it performs its tasks more effectively than other comparable organizations.
Portfolio analysis may be more difficult to apply to NFPs. Situation (SWOT) analysis; mission statements, stakeholder analysis, and corporate governance are all relevant to the strategic assessment of NFPs as they are to a profit making organizations
Strategic management is difficult to apply where the output of an NFP is difficult to measure. Thus it is very likely that most of the NFPs have not used strategic management because its concepts, techniques and prescription does not lend themselves to situations where sponsors, rather than the market place determine the value. However the situation is changing nowadays
Several characteristics peculiar to the not for profit organisation constrain its behavior and affects it strategic management. The constraints are as follows:
2.Mergers:
Merging with an organization with a similar mission can help to reduce administration costs
3.Strategic alliances
Developing cooperative with other NFPs. This will enhance their capacity to serve clients or to acquire resources while enabling them to keep their identity