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BUSINESS AND MANAGEMENT

BUSINESS AND MANAGEMENT. MODULE 1 BUSINESS ORGANIZATIONS & ENVIRONMENT. Non-Profit & Non-Governmental Organizations. NPO’s operate in a business-like manner but without the profit being the major objective Sometimes referred to as Merit Goods

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BUSINESS AND MANAGEMENT

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  1. BUSINESS AND MANAGEMENT MODULE 1 BUSINESS ORGANIZATIONS & ENVIRONMENT

  2. Non-Profit & Non-Governmental Organizations • NPO’s operate in a business-like manner but without the profit being the major objective • Sometimes referred to as Merit Goods • They aim to provide a service or to promote special causes • Libraries; museums, hospitals, charities etc

  3. Merit Goods • These are services which people thing should be provided in greater quantities • If the individual is left to decide whether or not to pay for these goods, some may choose not to, or may not be able to.

  4. NGO’s • Operates in the private sector, ie it is not controlled by the government • They do not aim primarily to make a profit • Are set up and operate for the benefit of others in society • Also known as Private Voluntary Organizations • Amnesty International, Unicef etc

  5. Types of NGO’s • Operational NGO’s • Established from a given objective or purpose • Tend to be involved in relief-based and community projects • OxFam and Unicef • Advocacy NGO’s • Take a more aggressive approach to promote and defend a cause • Direct action and lobbying • GreenPeace and Amnesty International

  6. Charities • A registered NPO with the key function of collecting donations from individuals and businesses in order to support a cause that is beneficial to society • Use a variety of marketing methods to attract donor attention • Oxfam and World Wildlife Fund • Some charities have very complex structures and are run by a Board of Directors similar to a large corporation

  7. Advantages of Charities • Provide financial support for the benefit of society • Exempt from paying taxes • Donors receive income tax benefit • Can protect employees with limited liability

  8. Disadvantages of Charities • Lack of profit motive may cause problems with staff • Trustees, who control the purse strings of a charity, do so voluntarily • Finances must be carefully controlled • Survive solely on the donations – not allowed to sell anything • Difficult during hard economic times

  9. Pressure Groups • Established by the members of an NPO to address a special interest • Not a union or environmental protection group • Win public and media support • Influence government policy

  10. Formative Case Study Case: Network Rail On “S” drive Source: Jones, Hall, Raffo, Business Studies 3rd Edition, Unit 6, page 60.

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