How would forprofit and nonprofit organizations differ in th

How would for-profit and nonprofit organizations differ in their applications of the strategy implementation

Solution

Answer:

While nonprofit and for-profit corporations operate in similar ways, there are often subtle operational differences. One significant place they differ is strategic planning. Although both use the same kinds of processes, the way they use planning tools to establish goals is different. Boards of directors have different expectations from nonprofits than they do from commercial businesses. Also, there are different people involved in the for-profit strategic planning process as opposed to the nonprofit planning process.

Strategic Planning\'s Function

A strategic plan is used by any organization -- for-profit or nonprofit -- to establish goals as well as to review operations. Some organizations do them yearly, while others do them every 3-5 years. These goals are one of the first major differences in for-profit and nonprofit organizations\' strategic plans. The goal of a for-profit company is to return dividends to shareholders or profit to owners over time. The goal of a nonprofit is to further its mission, which includes making enough money to continue to operate.

Similar Planning Tools

There are many approaches an organization might use to jumpstart its planning process. When it comes to strategic planning, for-profit and nonprofit organizations benefit from the same tools. For example, both types of organization might use a SWOT analysis to determine strengths, weaknesses, opportunities and threats and establish goals and objectives for the organization. There are many other planning tools, but both for-profits and nonprofits choose a step by step process that helps them analyze corporate operations and establish long and short-term goals and objectives.