Comparison Of For-Profit Companies And Non-Profit Organizations

In reviewing the readings we have covered thus far in class and looking at the different organizations they have involved, there seems to be the potential for varying strategies to be utilized depending on the type of organization being discussed. I would argue that although this might be true, a major factor contributing to this is the fact that for-profit companies, non-profit companies, and governments all have different goals for which they are trying to accomplish. As such, while there may be differences (or similarities) in the strategic approach one of them might take, the larger difference resides in what their desired end state looks like. Tony Russo points out this fact when he states, “The goal of a for-profit company is to return dividends to

These items guide the organization and keep them aligned and “true to their roots” regardless of the direction they attempt to take. In addition, whether it be a government or for-profit organization, all strategies require goal setting and clearly defined metrics to help track the progress of achieving that goal. Where the differences start to emerge is when the types of goals are discussed, which could alter the strategy being utilized. For example, a start-up, for-profit company might utilize a growth strategy that “entails introducing new products or adding features to existing products,” whereas a government such as Charlotte might utilize a more holistic strategy that includes goals spanning the entire range of services the City would like to provide its constituents. As can be seen here, where the goals for the start-up are more focused on the bottom-dollar and return on investment, the goals driving Charlotte’s strategy are more service