MGT503 GDB 2 Spring 2011 idea SOLUTION

[vukhan]

Discussion Question
Introduction:

For a business enterprise, strategies and policies are very important and are closely related to each other. Strategies are comprehensive plans of action, designed to help achieve organization’s goals within specified time. Policies are standing plans that provide the broader guidelines for directing managerial activities in pursuit of organizational goals.

Question:

Are strategies and policies as important in a not-for-profit organization (such as NGO, labour union, hospitals or city fire department) as they are in a business enterprise? Why or why not, give reasons.

[Vuhelper]

[B]Strategy for non-profit organizations:
Alert! Do knot copy paste as it is, just take your idea and make your GDB yourself or
you will get 0 marks then do not complaint me, please
And you have to write this not more then 300 words
Applying ideas about strategy to the not-for-profit world, which were created in the for
profit world, needs to be done carefully. Clear difference in these types of organizations
exist, one signefficient difference between for-profit and non-for-profit entities is how
they each determine there effectiveness, While a wide variety of perspectives exist
on nonprofit effectiveness, and it has been well argued that effectiveness is “socially
constructed” (Herman & Renz, 1997, 1998, 1999), nonprofit effectiveness is often
thought of in terms of mission (Sheehan, 1996) while for-profit effectiveness often
focuses on “profit” and/or shareholder value (Smith, 1999 & 2004).

So, while for-profits may be mostly focused on ways to “outperform rivals” (Porter,
1996, p. 62), not-for-profits can be thought of as focused on “mission accomplishment”
(Sheehan, 1996). While there may be exceptions when a competitive mind-set is
appropriate for a nonprofit to consider in developing strategy, most do not take this
approach. In utilizing strategy concepts in nonprofit organizations, most practitioners,
consultants, and authors use various strategy tools – while purging the ideas of
“outperforming rivals,” growing shareholder value, and competition – from the process.
But if, those competitive drivers are purged, what is used as a replacement?
This paper argues that the replacement “driver” for competition in nonprofit
organizations should be a new concept called “mission gap.” It is the foundational
concept of a new model of strategy, described in the next section, which truly captures
the essence of the difference between the for-profit and nonprofit sectors.[/B]