1.0 Introduction
A Non-profit Organisation (NPO) is an establishment that uses its funding for the pursuit of a specific purpose such as for a charitable cause (Lorette, 2015). It is different from a for-profit organisation as its objective is to provide greater good to the society rather than to maximise the wealth of its stakeholders. The surplus revenues of an NPO are used for either its expansion, self-preservation or plans and no part of the profit is distributed to its members. NPOs are increasingly starting to operate like traditional business organisations as strategic planning and marketing is imperative for their survival.
NPOs must market themselves in order to generate funding required to meet their organisational objectives. It is imperative for an NPO to brand itself as many companies choose to affiliate themselves with an NPO based on its reputation and perception. This also gives them a competitive advantage.
This essay aims to explore the marketing strategies of The United Nations Children’s Fund (UNICEF) and American Red Cross. The essay will further compare the two by analysing its marketing efforts and then drawing managerial inferences for the same.
2.0 Organisational Overview
2.1 UNICEF
2.1.1 Company Profile
UNICEF was created by the United Nations General Assembly to provide relief for the children victimized by World War II and was originally known as the United Nations International Children’s Emergency Fund. Headquartered in New York, it is now a
On the web site for UNICEF, this organization is for the assistance to aide countries around the world. They distribute food, supplies, medicine to villages in foreign
UNICEF was created in 1946 to provide emergency food, clothing and healthcare to children in countries that were destroyed during WWII. It was created to solve the food and medical crisis after the War in the European countries involved and those that were devastated in the War. Eglantyne Jebb, a British reformist, founded the Save the Children International Union, SCIU, which pressured the United Nations to start a group that specifically worked with children suffering from the trauma and aftermath of war. Also, U.S. army filmmakers created a film that shows the amount of destruction war does and how much it affects children. This film raised $200 million for welfare work, and so the UN proposed to use this money to provide relief to children in a new organization called UNICEF. So, the Collective Action problem it intended to solve was that: After WWII, UNICEF was created to provide food, clothing, and medical aid
According to our text, “Not-for-profit organizations lack a residual ownership claim and the organization’s purpose is something other than to provide goods and services at a profit.” “Because significant resources are provided to governments and not-for-profit organizations, financial reporting by these organizations is important.” (Page 2).
The debate on whether all healthcare institution should be non-profit rises many issues and they have been heavily debated. The best way to examine this to analyze if non-profit hospitals are in fact better that for
The United Nations Children's Fund (UNICEF) is an international organization present in 190 countries (Unicef, n.d.). It is an agency focused on the area of maternal and child health. Recently, the organization is providing fresh water and food for mothers and children, education for mothers and girls, and immunization programs for children (Unicef, n.d.). The advantages for this program are the benefits to the education and health of the women and children, but the disadvantages are ability to retrieve funds all the time, and providing care to everyone. They have to have a focused topic, like they do, in order to start to care for the population. There are many issues in the third world countries that go beyond the abilities of one organization,
Not for profit organisations consist of organisations that are not run for the profit or personal gain of individual/s. They are often referred to as charities and provide benefit services to society, often encouraging people to band together by sharing resources to achieve a common goal. Profits can be obtained by these organisations but must applied for the organisations purposes. These organisations include Surf life-saving, Churches, and Salvation Army etc. (Sessoms, 2014).
Stakeholders play a critical role in the management and decision-making process of an organization. An example of a stakeholder includes employees, managers, patients, vendors, suppliers, the community, creditors, customers and the government (Daft, 2013). Also, Daft (2013) says, “Stakeholders are groups “within or outside of the organization that has a stake in the organization’s performance” (p. 23). There are a few differences surrounding stakeholder expectations between non-profit and for-profit organizations. The differences in nonprofit organizations and for-profit business organizations are the direction of activities for the end goal (Daft, 2013). Although it is very difficult to measure the impact that a nonprofit has on society, community, or a particular group as opposed to evaluating an income statement from a for-pro-profit organization. The same level of attention should be paid to stakeholder for nonprofit organizations as stakeholders of for-profit organizations.
“The Toys R Us campaign offers fun, simple ideas to help people "go blue", such as a special app on its Facebook page to help fans give their profile picture a blue tone.” Accepting donations for two months as well. Cause-related marketing is “marketing that ties a company and its products to an issue or cause with the goal of improving sales or corporate image while providing benefits to the cause companies associate with causes to create long-term relationships with their customers, building corporate and brand equity that should eventually lead to increased sales.” Toys R Us found a way to help an organization while promoting the stores image in a good light. Research shows 70 percent of buyers have bought a cause-related marketed item.
A non-profit organization cannot be effectively managed if it is not effectively planned. One of the challenges facing non-profit organizations has been long range, strategic planning. Long range, strategic planning in the non-profit sector is essential to the success of an organization. Long range, strategic planning encompasses broad policy and direction setting, internal and external assessments, attention to key stakeholders, the identification of key issues, development of strategies to deal with each issue, decision making, action and the continuous monitoring of results. (Herman, The Jossey-Bass Handbook of Nonprofit Leadership and Management, 154) While it is important to deal with the short term planning and activities of non-profits, managers or directors must consider the future of their organizations. Successful planning should be comprehensive, integrating all areas of responsibility of an organization.
Bastian, Bettina. Inaash: Bridging the Chasm between Non-profit Objectives and Long-term Financial Profitability. Ivey ID: 9B14M004. London, Canada: Ivey Publishing.
A nonprofit organization is an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. Therefore, people involved with NPO's do not make money for themselves. Any money made by an NPO in the U.S. can be viewed on the organization's 990 forms, which are required to be made available to public.
Strategic Planning is the best approach I think it will benefit the nonprofit organization like Goodwill Industries because the organization can benefit from their strongest capabilities, exploit greatest
A not for profit organization is a corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive (Legal, 2013).” There are immense community benefits as a not-for-profit generally accepts everyone regardless of ability to pay. Nonprofit organizations are granted tax-exempt status which helps them to provide services to the public and are expected to be effective managers of their finances as well as being efficient (Financial Management, 2010). In doing so, they can gain exemptions from federal and state incomes taxes and have the ability to solicit tax-deductible contributions (Financial Management, 2010). Organization must follow legal financial
The UN has many different agencies and programs. One of the most important is UNICEF (United Nations Children’s Fund)
Non – profit organization- organization whose goods do not include making profit for each owner. These organizations do not strive for making profit in case if these organizations profit again is invested welfare of the society.