STRATEGIC MANAGEMENT & BUSINESS POLICY 10 TH EDITION

1. CHAPTER 14 Strategic Issues in Not-for-Profit Organizations STRATEGIC MANAGEMENT & BUSINESS POLICY10TH EDITION THOMAS L. WHEELEN J. DAVID HUNGER

2. Not-for-Profits • NFP – • Private nonprofit corporations • Public governmental units/agencies

3. Not-for-Profits • Public or collective goods – • Certain goods and services that profit-making firms cannot or will not provide

4. Not-for-Profits • Importance of Revenue Source -- • Depends on dues, assessments, donations, funding

5. Not-for-Profits

6. Not-for-Profits • Institutional advantage -- • Performs its tasks more effectively than other comparable organizations

7. Not-for-Profits • Constraints on strategic management -- • Service is often intangible/hard to measure • Client influence may be weak • Strong employee commitments to professions

8. Not-for-Profits • Constraints on strategic management -- • Resource contributors intrude on internal management • Restraints on use of rewards and punishments

9. Not-for-Profits • Complications to strategy formulation -- • Goal conflicts interfere w/rational planning • Integrated planning focus shifts • Ambiguous operating objectives • Simplifies detailed planning – adds rigidity

10. Not-for-Profits • Complications to evaluation & control- • Rewards/penalties • No relationship to performance • Inputs rather outputs • Heavily controlled

11. Not-for-Profits • Not for Profit Strategies -- • Strategic piggybacking • Social entrepreneurship • Mergers • Strategic alliances