Comparing for-profit and Not-for Profit Organizations
Name of Students
Institution of Affiliation
| Parameter | For-profit organization | Not for profit organization |
| Systems of management | The organizations have both decentralized and centralized management formats. In healthcare groups, decision making lies with the leading group authority. Considering that they are profit oriented, a decentralized management system is mostly practiced in running the organizations (Vaughan & Arsneault, 2014). | The organizations tend to have centralized formats of management and the federal government decides on the facilities and services provided by the organizations (Analyzing the Financial Health of Not-for-Profit Organizations, 2015). |
| Access to capital Market | The organizations have very high access to capital market and they easily raise funds that help them scale up their services quickly | In contrast, these organizations have limited access to capital market and it is the federal government that limits their expansion plans. The revenues that they generate is the one that funds them (Vaughan & Arsneault, 2014). |
| Strategic Goal for the organization | They aim to be leaders in the healthcare sector so that they can acquire the lion’s share in the marketSecondly, the goal is also to provide quality health services and enhance affordable and average revenue per patient | To ensure that better medical services are provided to the community at an affordable cost(Analyzing the Financial Health of Not-for-Profit Organizations, 2015). |
| Strategic Marketing | They use banners and advertisements to market their services and benefits to clients (Finkler et al. 2017). | Their aim is to receive funds from donors and thus the reason to market their services (Finkler et al. 2017). |
| Quality Attributes | They have high level of quality advocacy for patient satisfaction levels, and service feedback | Similarly, they also have high level of quality advocacy for patient satisfaction levels, and service feedback (Analyzing the Financial Health of Not-for-Profit Organizations, 2015). |
| Management of Pricing and Volume | It is the management that decides on pricing. Secondly, volume is usually decreasing in the organizations (Finkler et al. 2017) | It is the government that decides on pricing. When it comes to the patient volume, it is moderately retained in the organizations (Finkler et al. 2017). |
References
Analyzing the Financial Health of Not-for-Profit Organizations. (2015). Not-for-Profit Accounting Made Easy, 195-219. doi:10.1002/9781119202035.ch11
Finkler, S. A., Smith, D. L., Calabrese, T. D., & Purtell, R. M. (2017). Financial management for public, health, and not-for-profit organizations.
Vaughan, S. K., & Arsneault, M. (2014). Managing nonprofit organizations in a policy world. Thousand Oaks, CA: CQ Press.
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