...I. What is a Non-Profit Organization? A. The basic definition of a non-profit organization is not established for the purpose of making a profit; not entered into for money: a non-profit organization (dictionary.com). In a society where everything costs, how can it be that an organization can exist that is not established for the purpose of making a profit? What is their purpose? By answering these questions, one will gain an understanding of what a non-profit organization is as well as the history of how non-profit organizations came into existence. B. Digging a little deeper, the premise of a non-profit organization is that a non-profit organization is an organization which exists for educational and charitable reasons, and from which its shareholders or trustees do not benefit financially from. Any money earned must be retained by the organization, and used for its own expenses, operations, and programs. Many non-profit organizations also seek tax exempt status, and may also be exempt from local taxes including sales taxes or property taxes. (investorwords.com). Bottom line, their purpose of existence is for the greater good of the community by the services they offer. A few well-known non-profit organizations are Kaiser Permanente, Easter Seals, Habitat for Humanity, the Red Cross, and United Way. Although many of the aforementioned organizations have a different look and feel, they all share the same unique key characteristics of a non-profit organization. C. Some of...
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...Strategy defined What is strategy? The Oxford Dictionary describe strategy as A plan of action designed to achieve a long-term goal or overall aim; or the art of planning and directing overall military operations and movements in a war or battle; It is derived from the Greek word “stratégia” that means generalship (Oxford dictionary. 2015). A company’s strategy consist of the competitive moves and business approaches that managers are employing to grow the business, attract and please customers, compete successfully , conduct operations and achieve the targeted levels of organizational performance (Hough et al. 2008:4). Strategy is all about how the anticipated goals will be achieved. It works like a recipe where different elements are used in a more or lesser manner to achieve an end result. In an organisation the leader ensures all members are heading in the right direction and completing their goals and objectives. Organisations lacking leadership quickly implode as members scatter in all directions attempting to achieve conflicting goals in a silo-orientated environment. However, this can be overcome if leaders communicate and execute business strategies. A business strategy is a leadership plan that achieves a specific set of goals or objectives such as: * Developing new products or services. * Entering new markets. * Increasing customer loyalty. * Attracting new customers. * Increasing sales. * Decreasing costs. (Baltzan, 2013:16) Leaders also...
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...entities exist in. These include for-profit, not-for-profit, and government organizations. These environments have many similarities, as well as differences. Examples of these may include the Methodist Hospital in San Antonio, which is a for-profit organization; the American Heart Association, which is a not-for-profit organization; and the U.S. Department of Health and Human Services, which is a government organization. Each of these organizations has their own practices and policies unique to them. Not-For-Profit According to Investopedia (2016), a not-for-profit organization does not earn profits with the intent to line the pockets of an owner, but rather it is earned or donated and then used to achieve the goals or objectives of the organization. Many, but not all NFPs are charities or some other public service organization. NFPs are able to apply for a tax exempt status, as long as they meet certain criteria set by the state and federal government, thereby freeing them from most forms of taxation. Any donations that are made to the organization may be tax deductible for the person making the donation. According to Carter (2016), “Not-for-profit organizations raise capital by soliciting donations from businesses and individuals. Government and private grants may be used to fund the operation of a nonprofit organization. A not-for-profit organization may have an easier time getting the public to donate capital in comparison to a for-profit organization due to the perception...
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...In today’s world, non-profit organizations can no longer rest on the idea or premise that the work they do is rewarding, or personally fulfilling. While the work that non-profits do is greatly needed, and at times greatly appreciated, it is greatly underfunded as well. In Philip Harvey and James Snyder’s article as well as Bill Gates article all authors clearly outline that in order for non-profit companies to be successful; they have to begin to re-align their organization’s goals, objectives with their financial statements. The question becomes how does a non- profit realign their goals, objectives and financial statements in such a way that they are still able to do their good work, but remain financially viable? Bill Gate’s answer is creative capitalism. Another answer, one that mirrors the idea of creative capitalism is the idea that organizations now more than ever must ensure that they are closely integrating their cause agendas into their business strategies instead of just writing a check. In each of these answers, organizations and corporations can find success. “Charities Need a Bottom Line Too” (Harvey & Snyder, 1987) and “Making Capitalism More Creative” (Gates, 2008) both help to clearly outline what charities, corporations and nonprofits could do differently to be financially more successful and stable. Each of these articles holds several things in common. One of which includes the same observations that Jack Welch endorses. These observations include that business...
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...business firm have to decide from where they will raise fund, where they will invest and how much of the profit will be distributed among the shareholders. “Finance” Came from Latin word “finis” means “dealing with the money”.finace is called the art and science of managing money. At the micro level, finance is the study of financial planning, asset management and fund raising for business and financial institutions. At the macro level, finance is the study of financial institution and financial markets and how they operate within the financial systems in both the domestic and global economics. Scholar’s view: “Finance consists of providing and utilizing the money, capital rights, credit and funds of any kind which are employed in the operation of an enterprise.” _George R Terry “Finance is concerned with the process, institutionsmarkets and instruments involved in the transfer of money among and between individuals, business and governments”. _Lawrence J Gitman From the above discussion, it can be said that finance is the process of financial planning, identification of sources of fund raising, investment of fund, protection of fund, distribution of profit to achieve the goal of the organization. Question-2: What is business finance? Ans: Generally, finance...
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...Online Library, and/or one of the approved websites posted in the Webliography to find a research article(s) (no older than 2001) related to nonprofit versus for-profit healthcare and organizations. Analyze the characteristics of each type of organization and the factors that impact operations. Discuss options to improve the financial and operational performance of nonprofit organizations and the criticisms leveled at for-profit healthcare organizations. Define: characteristics a feature or quality belonging typically to a person, place, or thing and serving to identify it. Define: Analyze examine methodically and in detail the constitution or structure of (something, esp. information), typically for purposes of explanation and interpretation. Characterists: accepting patients community benefits monetary payments "More important, most doctors in a for-profit practice own that business and have complete decision-making autonomy. Doctors in nonprofit settings have no stake in the practice, and major decisions must be okayed by a board of directors." (school) "To be sure, the very nature of hospital payrolls means fewer benefits for physicians. Doctors in private practice can sock away as much as $30,000 annually in a tax-deferred SEP-IRA, or similar plan. But contributions to a nonprofit hospital's plan are capped at $10,000. That's because a private practice can skew its benefits to favor the high earners. In a hospital, with hundreds of employees clamoring...
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...Challenges of Managing Non-Profit Organizations There are different challenges a non-profit organization face, although I believe that these challenges are also faced by for profit organization at the same similar level. Trust is an issue that both non-profit and for profit organizations encounter at some point in their business, therefore transparency is very important. Transparency warrants organizations to provide clear statements of where their money goes, how it is utilized, and how it is making the organization accomplish their goals. These are not the only factors that are essential to make the stakeholders or anyone interested in the cause to trust the organization. For a non-profit organization trust is a key element to engage volunteers, donors and other business; without trust chances are that the organization might fail to achieve their mission by raising funds. Trust is acquire by performing the goals you have set for your mission and not deviating from it, at least not too far from achieving the organizations goals either for non-profit or for profit organization. It is also important to have a plan (Taylor-Hamm) in case there is a catastrophic event that might jeopardize your organization, it will help you foresee adverse situations and you will be better prepared in case your first plan fails. Performance challenges are faced in the same manner on both types of organizations non-profit and for profit organization. However they might be measured in a different...
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...points: 1. Turnaround strategy means to convert, change or transform a loss-making company into a profit-making company. 2. It means to make the company profitable again. 3. The main purpose of implementing a turnaround strategy is to turn the company from a negative point to a positive one. 4. If a turnaround strategy is not applied to a sick company, it will close down. 5. It is a remedy for curing industrial sickness. 6. Turnaround is a restructuring strategy. Here, a loss-bearing company is transformed into a profit-earning company, by making systematic efforts. 7. It tries to remove all weaknesses to help a sick company once again become strong, stable and a profit-making institution. 8. It tries to reverse the position from loss to profit, from declining sales to increasing sales, from weakness to strength, and from instability to stability. 9. It aids to reduce the brought forward losses of the loss-making company. 10. It helps the sick company to stand once again in the market. 11. It is a complete U-turn of a planned strategic economic transition. The definition of turnaround strategy w.r.t different senses is depicted below. In general, the definition of turnaround strategy can be stated as follows. “Turnaround strategy is a corporate practice designed and planned to protect (save) a loss-making company and transform it into a profit-making one.” In financial, commercial, corporate or from a business perspective, the turnaround...
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...Thanks Business plans may be internally or externally focused. Externally focused plans target goals that are important to external stakeholders, particularly financial stakeholders. They typically have detailed information about the organization or team attempting to reach the goals. With for-profit entities, external stakeholders include investors and customers.[2] External stake-holders of non-profits include donors and the clients of the non-profit's services.[3] For government agencies, external stakeholders include tax-payers, higher-level government agencies, and international lending bodies such as the International Monetary Fund, the World Bank, various economic agencies of the United Nations, and development banks. Internally focused business plans target intermediate goals required to reach the external goals. They may cover the development of a new product, a new service, a new IT system, a restructuring of finance, the refurbishing of a factory or a restructuring of the organization. An internal business plan is often developed in conjunction with a balanced scorecard or a list of critical success factors. This allows success of the plan to be measured using non-financial measures. Business plans that identify and target internal goals, but provide only general guidance on how they will be met are called strategic plans. Operational plans describe the goals of an internal organization, working group or department.[4] Project plans, sometimes known as project frameworks...
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...address the issue of WrapItUp was experiencing. The store manager compensation more competitive in which store management compensation would be directly correlated to restaurant profits. The store managers would receive 35% of the store’s incremental profits. The associate managers would receive 15% of profits and the remaining 50% would be paid to WrapItUp cooperate. During the sixth-month trial, both stores increased their profits consistently and with that improvement means that all the managers’ total compensation went up subtaintially as well. b. Was compensation really the root cause or the HR executive myopic in her focus? Yes, compensation is the root cause in HR executive focus. Since the low compensation is the main reason that cause managers offered for their resignations in exit. WrapItUp’s turnover rates for both salaried managerial and hourly employees had consistenly exceeded industry averages and were s constant source of frustration at all levels of the company. The low compensation leads to the difficulty for the company to attract and retain top talent, especially at the store manager level. Any position could not stay vacant for long, so hiring had been more a rush scrambled than a thoughtful exercise to find the right person. c. Was the plan itself structured correctly? The plan is structured correctly when the pilot program been introduced as well as the ShareIt program. Most of the managers could succeed if they were better motivated and more stragically...
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...Business plans may be internally or externally focused. Externally focused plans target goals that are important to external stakeholders, particularly financial stakeholders. They typically have detailed information about the organization or team attempting to reach the goals. With for-profit entities, external stakeholders include investors and customers.[1] External stake-holders of non-profits include donors and the clients of the non-profit's services.[2] For government agencies, external stakeholders include tax-payers, higher-level government agencies, and international lending bodies such as the IMF, the World Bank, various economic agencies of the UN, and development banks. Internally focused business plans target intermediate goals required to reach the external goals. They may cover the development of a new product, a new service, a new IT system, a restructuring of finance, the refurbishing of a factory or a restructuring of the organization. An internal business plan is often developed in conjunction with a balanced scorecard or a list of critical success factors. This allows success of the plan to be measured using non-financial measures. Business plans that identify and target internal goals, but provide only general guidance on how they will be met are called strategic plans. Business plans are decision-making tools. There is no fixed content for a business plan. Rather the content and format of the business plan is determined by the goals and audience....
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...Entrepreneurial Leadership Task 1 Analyze and describe the founding leader, leadership style, and major business principles of a profit-oriented entrepreneurial approach in which the primary goal is to provide a product or service to consumers and to make a profit. Task 1 Response At the age of 22, John Schnatter founded Papa John’s Pizza in 1984 (Cendrowski, 2009). Mr. Schnatter converted a broom closet at Mick’s Lounge bar into a takeout pizza restaurant (Cendrowski, 2009). The concept of the takeout pizzeria was conceived during his studies at Ball State University (Cendrowski, 2009). During this time, he wanted to build a pizza brand based on the principle of “Better ingredients, better pizza” (Cendrowski, 2009). Since the inception of the company, Papa John’s has developed a strong quality claim and devote consumer base taking the company from small beginnings to the third largest pizza chain in the United States (Brandau, 2009). As a leader, Mr. Schnatter believes in hard work and demands his employees produce a superior product. According to the Papa John’s website, Schnatter developed six core principles every employee from the lowest level on up must memorize and repeat daily (2011). The core principles are: Focus-Constantly deliver a superior Papa John’s pizza; Accountability-Do what we say we are going to do, and do it; Superiority-Demand “Best in-class” at everything you do; P.A.P.A (People are priority always)-Our success depends on how well...
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...movie, but the real story that shows the tragic medical system in America. However, it also warns the Korean government’s motion for the new medical plan. Now, the Korean government seems to destruct the non-profit medical system and proceed to health care service provided by private entities instead of the government. It seems that it doesn’t bring negative effects,...
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...Doesn’t Grow on Trees Anymore! The economic downturn in the United States has been intensifying every month since September 2008, and it is having significant impacts on numerous nonprofit organizations (NPOs). It is now clear that this financial crisis is more severe than anything we have experienced in over 50 years; it is affecting every sector of the economy. Managers of NPOs are facing numerous obstacles while having to face an increase in the vital services they provide to the public. The most critical issue is the lack of funding. The effects of the economic recession are spurring NPO leaders and their funders to create and apply innovative fundraising projects, collaborate together and to deeply analyze federal packages and plans for support. Although raising funds in today's tight economy is a challenge, some nonprofits are doing better than others. Organizations that are doing well have numerous amounts of revenue sources and many ways for donors to give, they spend more time and personal effort in building relationships with their donors, have refocused on the importance of developing staff, resources, and programs, and are simply looking to do more, not less (Borning, 2010). NPOs have suffered from the downturn in 2008 and 2009 but the fact is even tougher financial times have come since then for many nonprofit organizations, especially larger organizations that rely heavily on government grants and contracts (Kerr, 2010). Fifteen regional NPO...
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...assist management in its function of maximising efficiency and achieving corporate goals.” However this is not the main focus of the definition given in this book as they begin the definition explaining that: “management accounting is the application of accounting techniques to the provision of information designed to assist all levels of management in planning and controlling the activities of the firm and in decision making.” These definitions are similar suggesting decision making, planning, control and also performance evaluation are four fundamental management functions which management accounting provides information for. Decision making is central to the management of an enterprise. (Weetman, 1996) The manager of a profit-making business has to decide how he or she will implement the objectives of the business, at least one of these objectives will relate to allocating resources to maximise profit. To be economic, efficient and effective in its use of finance, a non-profit-making enterprise (such as churches and charitable organisations) will be making decisions on resource allocation. Most organisations will make a decision based on the financial implications of that decision and will depend on resources (for example people, products, services or long-term and short-term investment). Decisions may have a...
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