Nonprofit Organizations: Strategy and Marketing

This assignment delves into the critical aspects of strategic management and marketing within the nonprofit sector. It examines frameworks like the Balanced Scorecard, emphasizing their application in setting organizational goals and measuring performance. The discussion extends to stakeholder communication, highlighting its significance in building relationships and achieving mission objectives. Additionally, it explores market orientation concepts and how they apply to nonprofits, considering the unique challenges and opportunities they face.

Running head: SYSTEMATIC LITERATURE REVIEW
Systematic Literature Review: Strategic Management In Non-Profit Organization
Name of the Student
Name of the University
Author’s note

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Contents
Introduction......................................................................................................................................2
Methodology....................................................................................................................................2
Literature Review............................................................................................................................3
Definition of non-profit organisation...........................................................................................3
Definition of strategic management.............................................................................................3
Formulation of a business model for non-profit organisation.....................................................4
Understanding the business environment....................................................................................4
Resource Dependency Theory.....................................................................................................5
Communication management......................................................................................................6
Marketing concept.......................................................................................................................7
Conclusion.......................................................................................................................................8
Reference list:..................................................................................................................................9

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Introduction
Strategic management is the process of identification and implementation of tactics by
which managers of the organisation can achieve the aims and objectives. in order to reach the
Strategic management is important especially for the non-profit organizations as it serves to
satisfy the stakeholders including donors, volunteers, executive directors, clients and staffs who
are important and essential part of the success of the non-profits (Bryce, 2017). The strategic
management in non-profit organizations helps in continuous planning, controlling, assessment
and analysis of all that is important operations of the business for achieving organizational goals
and objectives of the company (Hill & Jones, 2013).
Methodology
The method theta has been implemented to carry out the process of research is based on
the topic. As the research is based on the systematic literature review the data that is gathered to
reach the conclusion and answer the research question is all taken by the process of secondary
data collection. It is the process by which the previous work of other authors and scholars are
used to come to a conclusion, in this process the researcher is not going to base the findings and
the result of the research on any new information. Systematic review is focused on addressing
the issue by identifying, critically evaluating and integrating the result of all related studies.
Google Scholar is a great platform to carry out this study. This is a service provided by Google
where academic journal articles are found in form of PDF files. With the help of Keywords the
researcher can find the previous work that has been done by other authors. The number of
articles that is going to be used in the literature is in between 20-25 and the time period that has
been selected to review the work is in between 2010-2017. As the topic that has been chosen is

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more theoretical the researcher will focus more on journals that have qualitative research more
than quantitative.
Literature Review
Definition of non-profit organisation
A non-profit organization (NPO) is a business entity whose aim and objective revolve
around creating social value in the process of operation. The idea of NPOs is to develop and
maintain a sustainable environment in the society by helping the people who are in need as well
as focusing on the sections of the society that is being neglected (Weerawardena et al., 2010).
On the other hand, according to Tabaku & Mersini (2013), the nonprofit segment is
usually addressed as the third sector, independent sector, voluntary sector, philanthropic sector,
social sector, tax-exempt sector or the charitable sector.
The similarities in between these definitions are that they both agree that the nonprofit is section
that is focused on creation of value. The difference in the definition lies in the fact that the
second definitions gives a more concrete idea about the sector and focuses on the aspects of the
business.
Definition of strategic management
Formulation of a plan is different form creating a strategy the planning process comes
after the strategy has been laid down. In a non-profit seeking organisation the operations of the
business has a very different tone, as it is driven by values the strategies that are implemented by
the management are also focused on the value creation (Anheier, 2014). According to Bao,
(2015), it can be defined as the dynamic process of planning, observation, inspection and

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evaluation of the factors that is important for a business organisation. The two definitions explain
the role and importance of strategic management.
Formulation of a business model for non-profit organisation
Developing a business model is regarded as one of the first step towards strategic
management. According to Polonsky & Grau (2011), it is essential to understand and map the
organisation to carry forward the process of business operation. Identification of the source of
finance is one of the important aspects of a business model in the non-profit sector. Resource
allocation and persuasion are the next most important aspects that are focused by the non-profit
seeking originations (Jungbok, 2015).
Understanding the business environment
A company is impacted by the internal as well as the external business environment. The
internal environment is in the control of the organisation, on the other hand the external
environment is not under the control of the company hence the company should be aware of the
factors and formulate the management strategies accordingly (Domanski, 2011).
Balanced Scorecard
According to Hartnett & Matan (2011), there can be a number of ways to evaluate the
success the nonprofit as accomplishments of the organisation are focused from the perspective of
the stakeholders. The tool that is used to measure the success is perspective with the help of
BSC; the organisation can concentrate on determining and monitoring the cause and effect
relationships between the important aims and have an accurate report on leading and lagging
initiatives. This process will supply substantial evidence to form the decisions rather than
guessing which fund raising campaigns, events and services are valuable to the stakeholders.

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Sundin et al., (2010), states that BSC has the ability to help the management of the companies
with multiple objectives by applying systematic analysis of the objectives of the stakeholders and
balancing it with the objective of the organisation by using the perceived cause and effect
relationships between the aims and actions taken by a non-profit seeking organisation (Greiling,
2010).
Resource Dependency Theory
This theory states how external resources of an organisation impact the behavior of the
organisation (Bryant & Davis, 2012). As funds rising are one of the most important aspect of a
non-profit organization external resource dependency theory is appropriate for the application in
strategic management of a NPO (Velayutham et al., 2012). The theory recommends that the
behavior of the company is directly impacted by the management of the organisation this
dependency on an external resource like donated funds and gifts in kind. Voluntary financial
support is not only the biggest concern of small scale organisation but also it is a major issue for
the company which operates on a much larger scale both nationally and internally. Scherhag &
Boenigk (2013), conducted a study regarding the cultural treatment of a donor of the
organisation with respect to communications in between the organizations and their donors or
perspective people who could donate. The authors argue that the organizations in order to keep
the funds following in the process of operation treat the wealthier and the most profitable donors
in a superior manner so that they can build a strong value oriented relation and make the process
of donation permanent. The dependency of the resources of a non-profit organisation is large in
terms of the stakeholders of the company as well because they are the ones who create the
process of resource accumulation and resource allocation in order to receive optimal operation.
In the study conducted by Akingbola (2013), the author states that all organizations are heavily

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dependent on the human resource associated with the company. In order to smoothly operate and
develop companies need to bank on some of the other aspects as well. The importance or the
significance of the resource to the organization is determined by the authority and influence the
factor that represents the resource has on the organisation. Influential and important stakeholders
of the company are associated with the resources that are most important for the organisation.
The significant factors based on this theory enjoy their influence based on a combination of
factors regarding the resource they offer: the level of significance the resource provide for the
organisation, the level of control the factor has on the distribution of the resource, and the level
of switching cost of the resource (McDonald et al., 2015).
Communication management
Communication is essential for any company operating in any industry in order to deliver
the message the company have for the various stakeholders. Depending on the nature of the
business and the purpose of the message companies come up with a strategic communication
management plan so that the messages are delivered to the right target at the tight time (Wiggill,
2011). The idea of strategic communication management is to align the communication process
of the organization with the objectives and aims of the organisation. For a non-profit
organisation one of the main aims is to develop a strong bond of mutual understanding with the
stakeholders of the company who are responsible of the inflow of resources that in turn help in
running the organisation. Wiggill (2011), argues that the lack of knowledge for an organisation is
a bigger issue for a nonprofit organization when it comes to implementing the communication
process. In order to effectively implement the communication strategies the company should be
aware of the full potential of the company. According to Kong (2010), suggest that both informal
and formal means have to be employed by a NOP so that the company can conduct a two-

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way communication between the stakeholders. The devices can include organizational culture,
missions, values, employee satisfaction surveys, and newsletters etc.
The media that is chosen to communicate is dependent on the nature of the message and
also on the direction of the message towards the particular stakeholder that that company is
targeting to communicate with. If the selection of medium is wrong then the purpose or the
meaning of the message has the chance to change Kong (2010). On the other hand, the authors
Maxwell & Carboni (2014), state strategic communication not only differs with the stakeholders
but also changes with the network the company is dealing with. As this would ensure that the
relationship in between all the stakeholders of the organisation have a strong bond with the
organisation, it will also help the company gain in terms of resource as many customers who
have no history of donation may be transferred into a donator. Skill development and training is
essential for this model to work successfully especially the human resource and the other internal
fact (Modi & Mishra, 2010).
Marketing concept
Marketing mix is a concept in strategic management which is essential for any
organisation. It is a tool that is used by the companies to plan and organize the present and future
policies and formulate decisions to achieve the goals of the organisation. Mano, (2010) state that
marketing for a non-profit organisation to meet the demands of the environment to combat or
decrease uncertainty and sustain organisational performance to excellence.
Because the performance measures of NPO may impact on the diverse nature of the
judgment. Therefore, planning and organisation must be implemented to suggest the relationship
in between the performance and effect on the multiple factors of the company. NPOs do not

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operate on the standard business model hence the standard business marketing strategies are not
suited to the complex, dynamic, volunteer- and community-oriented, mission-driven nature
of non-profit organisation (Mano, 2010). Tabaku et al. (2013), states that CRM or cause-related
marketing is a suitable supply of proceeds for a not-for-profit organizations. The cause of an
organisation is aligned with the marketing tactics of the company which ensures that the people
associated with the marketing process are always aware of the cause for which the company
operates.
Conclusion
The organizations that operate in the third-sector are the beacon of sustainability and
ethics in the business sector. The above concepts and definitions that are reviewed in the
literature state the compatibility of the concepts with the non-profit organizations and state the
importance of strategic management of the sector. As these organizations operate on a value
based, voluntary service the companies have to implement the process in a very tactful manner.
The nature of the organizations is such that the standard business strategies do not apply to the
efficiency of the organization which makes it imperative to strategies the management. The
business model will help the company identify with the changes in the in the environment and
map possibilities of growth in the future along with deal with present opportunities. The BSC
and the resource development theory digs deep into the operations suggesting ways and means
the organizations may implement to develop a strategic management.

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Reference list:
Akingbola, K. (2013). A model of strategic nonprofit human resource
management. Voluntas: International Journal of Voluntary and Nonprofit
Organizations, 24(1), 214-240.
Anheier, H. (2014). Nonprofit organizations: Theory, management, policy (2nd ed.). London:
Routledge.
Bao, G. (2015). What theories are needed for strategic management? Nankai Business
Review International, 6(4), 433-454.
Bryant, P., & Davis, C. (2012). REGULATED CHANGE EFFECTS ON BOARDS OF
DIRECTORS: A LOOK AT AGENCY THEORY AND RESOURCE
DEPENDENCY THEORY.
Bryce, H. J. (2017). Financial and strategic management for nonprofit organizations. Walter
de Gruyter GmbH & Co KG.
Domanski, J. (2011). The analysis and synthesis of strategic management research in the
third sector from early 2000 through to mid-2009. Foundations of Management, 3(2),
27.
Greiling, D. (2010). Balanced scorecard implementation in german non-profit
organization. International Journal of Productivity and Performance
Management, 59(6), 534-554.

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Hartnett, B., & Matan, R. (2011). The Balanced Scorecard: A strategic tool for the
nonprofit sector. Livingston, NJ: Sobel & Co.
Hill, C. W., & Jones, G. R. (2013). Strategic management theory. South-Western/Cengage
Learning.
Jungbok, H. (2015). Marketing strategies for nonprofit organizations. Advances in
Management, 8(10), 1-5.
Kong, E. (2010). Analyzing BSC and IC's usefulness in nonprofit organizations.
Mano, R. S. (2010). Marketing and performance evaluations in non-profit
services.International Journal of Productivity and Performance Management, 59(6),
555-570.
Maxwell, S. P., & Carboni, J. L. (2014). Stakeholder communication in service
implementation networks: Expanding relationship management theory to the
nonprofit sector through organizational network analysis.
McDonald, R. E., Weerawardena, J., Madhavaram, S., & Sullivan Mort, G. (2015). From
"virtuous" to "pragmatic" pursuit of social mission. Management Research
Review, 38(9), 970-991.
Modi, P., & Mishra, D. (2010). Conceptualising market orientation in non-profit organization
: Definition, performance, and preliminary construction of a scale.Journal of
Marketing Management, 26(5), 548.

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Polonsky, M., & Grau, S. L. (2011). Assessing the social impact of charitable organizations
—four alternative approaches. International journal of nonprofit and voluntary sector
marketing, 16(2), 195-211.
Scherhag, C., & Boenigk, S. (2013). Different or equal treatment? Donor priority strategy
and fundraising performance assessed by a propensity score matching
study. Nonprofit Management and Leadership, 23(4), 443-472.
Sundin, H., Granlund, M., & Brown, D. A. (2010). Balancing multiple competing objectives
with a balanced scorecard. European Accounting Review, 19(2), 203-246.
Tabaku, E., & Mersini (Zerellari), M. (2013). An overview of marketing means used by non-
profit organizations: A detailed overview of NPOs operating in the district of
elbasan. Journal of Marketing and Management, 4(2), 78-95.
Velayutham, C. M., PalanivelRV, AnbarasanR, & SinthujaM. (2012). Human resource
administration in relation to CEOs in not-for-profit organizations.
Weerawardena, J., McDonald, R. E., & Mort, G. S. (2010). Sustainability of nonprofit
organizations: An empirical investigation. Journal of World Business, 45(4), 346-356.
Wiggill, M. N. (2011). Strategic communication management in the non-profit sector: A
simplified model.