How might planning in a not-for-profit organization such as the American Cancer Society differ from planning in a for-profit organization such as Coca-Cola?
Answers
Non-profit and non-profit organizations vary greatly in the overall purpose of their existence and some aspects of their operations. The for-profit organization aims at maximizing profits. These profits are then forwarded to shareholders and owners. On the other hand, nonprofit organizations aim at providing society’s needs. Nonprofit organizations have no owners, and they are more concerned with ensuring the revenues are greater than the cost since they do not maximize profit. This ensures that these types of organizations can provide society’s needs. Also, the income of a non-profit organization is never distributed to any owner; rather it is recycled back to the mission and activities of the organization.
Non-profit organizations are exempted from paying income taxes since their goal is to make the world a better place. They invest time, resources, and funds in the community.
In that view, the two types of organization plan differently: nonprofit organization plans how to get donors and how to minimize costs of running their operations. Conversely, in a for-profit organization, the main objective is to strategize on how to maximize the profit.
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Answer:-
The major difference between a nonprofit organization and a profit organization is hidden in its name as a whole that is PROFIT. In that case, the whole planning process is governed and defined on that basis. The mission and intent of a non-profit organization direct them, while the vision of a for-profit company guides them as they strive to become a better version of themselves in a competitive external market.In profit organizations like Coca-Cola and others who planning process is tilted toward profit maximization in the long run. On the other hand in a non-profit organization planning process is more tilted toward the welfare of the society as a whole.
major difference between a nonprofit organization and a profit organization is hidden in its name as a whole that is PROFIT. In that case, the whole planning process is governed and defined on that basis. The mission and intent of a non-profit organization direct them, while the vision of a for-profit company guides them as they strive to become a better version of themselves in a competitive external market.In profit organizations like Coca-Cola and others who planning process is tilted toward profit maximization in the long run. On the other hand in a non-profit organization planning process is more tilted toward the welfare of the society as a whole.While funding is not easy to come by, for-profit companies may obtain capital from the free market in the form of sales or from investors, enabling them to continue operating as long as their product or service is in demand and the market is reasonably stable. Non-profits often have budgets that are fixed based on projected sales from the market and donations from people. To have the greatest effect, they usually have to extend their operating budgets. Non-profit organizations could create their strategic plans at reasonably regular intervals and work from there without too much intervention from external powers when it comes to the strategic planning phase.