sana asked in News & EventsCurrent Events · 9 years ago

Are strategies and policies as important in a not-for-profit organization (such as labor union, hospital?

3 Answers

  • 9 years ago
    Favorite Answer

    Yes, very much.

    In CIM ( examination, there was a section about NPO and its marketing strategies.

  • 9 years ago

    Having a strategy is useful for any organisation.

    One further point: you classify hospitals and labour unions as 'not-for-profit.' This does not seem reasonable.

    A labour union is, by intention and in effect, a for-profit outfit. Its whole purpose is to maximise returns for its members; in other words to make their work more profitable. The strategy is usually also openly capitalist: to create a cartel (hopefully a monopoly position) in the supply of labour so that the union can dictate the terms. A union which fails to produce results will go out of business since workers will eventually not be willing to invest their money in the membership fee.

    A hospital is rather different. Private hospitals are clearly for-profit: someone put up the capital to build them and expects a return on his money - at least it's so here in GB and I expect not very different in the USA. Even publicly funded hospitals which are not in the same sort of market-place are subject to similar financial constraint - they must show a surplus of income over expenditure or at least break even; if they regularly take in less money than they expend, they too will go out of business. When money is easily come by, they too distribute it - not indeed to shareholders, but in the form of inflated salaries for the senior medical staff who control the place.

    How, precisely, do you define 'not-for-profit?'

  • 9 years ago

    dear strategies and policies as important in a not-for-profit organization as they are in a business enterprise.

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