Exam question - Not-for-Profit Organization

tanbc

Related  :  

• 28-Nov-2015 Exam question part B - Q1
• TMA1 2014 -Q1
  

Not-for-profit organisations do not need the rigour of strategic management as compared to commercial organisations. Discuss the validity of the above statement.   (20-25 marks)

Guideline :
Strategic management is meant for all types of organisations. Not for profit organisations need to be accountable to stakeholders too.


Objectives of having strategic management are :
• Survival & growth
• Environment change constantly, organisation’s structure, culture and processes have to adapt accordingly.
• Change in technology is so disruptive; it can cause a company to go out of business
• Pressure from stakeholders, such as green development NGO has forced companies to adopt sustainable development strategy.


Both types of organization need to accountable to their stakeholders. SM could ensure the stakeholders needs are met.


Need to emphasise that SM could improve clarity in goals, accountability and transparency and governance.  
This in turn would ensure continue financial supports from its donors/sponsors.


A conclusion statement is required  on your view as to validity of question’s statement