Academic Writing

Sample Essay on How Non-Profits and For-Profit Companies Work

How Non-Profits and For-Profit Companies Work


Whenever a corporation pursues to expound its undertakings abroad, there are numerous facets that have to be put into consideration. These facets vary in regard to whether the corporation is a for-profit or a non-profit organization.

For Profit Company

Geographical Differentiation

Geographical differentiation includes a number of features. Initially, the venture need to be able to ascertain whether clients in the intended market have the buying power to buy the corporation’s commodities or services, as well as whether the organization can set a competitive rate for its commodities and services. Second facet is the regional labor expenses as well as linked labor regulations. Having know-how of the local labor expenses will aid the venture assess whether the growth will be workable due to high wages can mean high operating expenses as well as lessened gains. In the same way, comprehending labor rules and laws in the intended market is essential in certain nations for instance EU member nations, employing fresh workers is expensive and tough labor regulations make it unachievable to dismiss workers. Presence of raw commodity providers is the third factor.

Fruitful production in the intended market relies on the accessibility of raw materials. If suppliers are far from the Image 2amenity, the corporation’s expenses of shipping is probable to be high, leading to increased cost of production as well as high price for the end commodity. The same way, a corporation has to look at distribution facets. These incorporate the shipping network via which the commodities will reach last customers. Perishable goods for instance milk or flowers demand an improved supply link to shun losses. Additionally, an organization has to look at the power of its corporate culture as well as uphold known status in all its undertakings. If the company culture is feeble, it is probable to be weakened in the numerous parts the corporation develops to causing loss of market share and brand.

Product, market or technology differentiation

Provided the diversity in interests and preferences, a corporation ought to look at tailoring its commodity to meet residential needs or preferences. For instance, McDonald’s has thrived in its global markets by tailoring the menus to meet the demands of residents.

Non-Profit Company

The most crucial facets for a non-profit corporation connected to working in other parts or nation incorporate divisionalization differentiation and hierarchical differentiation.

Divisionalization Differentiation

To excel in running a company, executives need to grow and upkeep useful subcultures. They are present amongst workers, bosses as well as leaders. Nevertheless, provided that each company has its subculture, operating in another part with sturdy divisional subcultures may lead to battle with the initial company as such subcultures have great standards that are challenging to change. On top of this, via globalization, an organization may find it hard to retort to human resource exercises in all areas it runs. Leaders ought to take into consideration these divisional disparities when making policies to expand.

Hierarchical Differentiation

As a corporation grows its undertakings in areas in a nation or globally, it develops and more stages arise in its structure. As it has been noted, subcultures are there at every stage of a company.  Therefore, when the company’s structure grows, there is a possibility that more subcultures will arise. In the course of growing subcultures, they tend to accord to each other or turn out to be independent in their undertakings. Sturdy subcultures may be separated from the feeble ones. Due to the fact that certain executives in the company fail to concentrate to the numerous kinds of subcultures, it causes considerable battles in the company. To avert incidents of such clashes, leaders ought to spur friendly interactions amongst the parent company and the newly established company in another area or in overseas nation.

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