Question

In: Operations Management

how do non- profits, government organizations or cooperatives leverage the concepts of corporate and business level...

how do non- profits, government organizations or cooperatives leverage the concepts of corporate and business level strategies?

Solutions

Expert Solution

Corporate is a legal entity which separated from its owners. Where corporate enjoy most of the rights with responsibilities. They can pass loan, contract, borrow money from banks, make own assets, hire an employee and pay taxes.

The non-profit organization or cooperatives leverage the concepts of corporate because they get money from investors and organisers, some charity funds also included in non-profit government organizations enjoys the no tax-paying facility and they can hire any employee, borrow money from banks, make their own assets etc so that we can say that Non-profit organisation leverage the concept of corporate and same as cooperative where two or more work together to achieve common objectives. In cooperatives, owner distributes the profit on the basis of their investment and can borrow money, pay taxes, make assets, pay taxes and law and regulations provide them extra power to work.

Business strategy of Non-profit government organisation is based on promotional material but the more important tool is an organisation development, their business objective is a part of work and support for social and other affected people who suffer from any impact. Increasing the network is their first priority and get fund in the form of charity.

While the cooperative market strategy is that their two or more organization collaborate with each other to meet the same objectives where the revenue divided between them, risk and investment also divided. Several companies invest to increase their profit through cooperation with other organizations.


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