This paper discusses and details the importance of strategic management in these areas and suggests future paths for success.
The strategic management of nonprofit and governmental organizations must include the respect of those who contribute to them without pay. This paper explains that it is important to target the age groups and genders that research has shown are important to them. The strategic management of such organizations is something that is dependent on the flow of the current economy as well as political trends. It discusses how these things must be considered in any planning of management for such organizations. Accepting the need to target certain age brackets, certain fund raising areas, and other things that are not important in a for-profit scenario are fundamental to the strategic management of nonprofit or governmental organizations.
“The use of strictly financial concerns in the strategic management of non profit and can impede the development planning and success of a non profit or governmental organization. In for profit businesses the concerns and use of financial aspects is understandable because the end result of such a venture is to be financial gain(Kaplan, 2001). In the case of a non profit or governmental organization however is different. The financial gain is not the goal. Instead the goals are things such as providing a service or getting things done or acting as a watch dog group for various things. All of these elements are important to the non profit or governmental organization. The finances of such organizations are only important in that they provide the ability to maintain the organization’s desire to provide the service or other aspect of its cause. Because of the difference between this and a for profit business it is important to realize the fundamental differences in non profit and government organizations and for profit business. The basic difference is the end goal and result(Kaplan, 2001). The strategic planning of non profit and governmental organizations is geared toward getting enough funding to carry out the objective, while in for profit situations the goal is the money itself.”