Question

In: Operations Management

Explain growth and how it is achieved in a for-profit business vs a non-profit business.

Explain growth and how it is achieved in a for-profit business vs a non-profit business.

Solutions

Expert Solution

Growth means a different factor when we consider a for-profit and a non-profit organization. Growth in the terms of a for-profit would essentially mean an increase in the stock value, increase in the value of the shareholders, profit margins, successful product implementation in the market, present inventory and value and its evaluation and projected growth forecasts. While in the case of non profit business growth would mean increase in funding, development of resources that can be self sustained, measuring low overhead vs high overhead, system efficiency, measuring the input vs output value of the business, ease of getting donations, favouritism in the eyes of the people and popularity amongst similar businesses and public relationships.

While the values to measure the growth of a for-profit business is easy. Non-profit businesses provide a number of challenges due to the presence of no set scale value.


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