1. CHAPTER 14 Strategic Issues in Not-for-Profit Organizations
STRATEGIC MANAGEMENT & BUSINESS POLICY 11TH EDITION
THOMAS L. WHEELEN J. DAVID HUNGER
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2. NFP – Private nonprofit corporations
Not-for-Profits
NFP –
Private nonprofit corporations
Public governmental units/agencies
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3. Public or collective goods –
Not-for-Profits
Public or collective goods –
Certain goods and services that profit-making firms cannot or will not provide
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4. Importance of Revenue Source --
Not-for-Profits
Importance of Revenue Source --
Depends on dues, assessments, donations, funding
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5. Not-for-Profits
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6. Institutional advantage --
Not-for-Profits
Institutional advantage --
Performs its tasks more effectively than other comparable organizations
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7. Constraints on strategic management --
Not-for-Profits
Constraints on strategic management --
Service is often intangible/hard to measure
Client influence may be weak
Strong employee commitments to professions
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8. Constraints on strategic management --
Not-for-Profits
Constraints on strategic management --
Resource contributors intrude on internal management
Restraints on use of rewards and punishments
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9. Complications to strategy formulation --
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
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10. Complications to evaluation & control-
Not-for-Profits
Complications to evaluation & control-
Rewards/penalties
No relationship to performance
Inputs rather outputs
Heavily controlled
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11. Not for Profit Strategies --
Strategic piggybacking
Social entrepreneurship
Mergers
Strategic alliances
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