Share
Explore BrainMass

Cash fow, financial perspective, relevance, stakeholders

(1) What might be the difference in managing the cash flow of a for-profit verus a non-profit?

(2) Many companies place diproportionate emphasis on the financial perspective at the expense of the other three perspectives. Give an example of an organization which you are familiar from either previous work, the news, or personal experience where this has been the case. What were the results of this focus on the financial perspective on the customers and other stakeholders? Be as specific as you can and give concrete examples.

(3) Can you think of any organizations that do not have relevant "customer" to take into consideration? If there are such, how are they different from other organizations where all parts of the Balanced Scorecard operate equally.

(4) Organizations are complex sysytems with stakeholders. Somtimes the interests of various stakeholders can conflict. For your initial post to this discussion, please give an example of a business porcess where the interests of two (or more) stakeholders are in opposition .

All of these questions are answered in detail by a Phi Alpha Theta member with over 20 years of professional experience

1. 1. The main difference here is...

Solution Preview

1. The main difference here is that non-profits do not have to pay corporate taxes. They don't need to consider this aspect of when it comes to cash flow (unlike for-profits). They also (because they are considered more wholesome organizations than companies) often have to be or at least should be more moral and into profits, than the organizations that are not supposed to make a profit. That being, the non-profits.

2. This has happened a lot lately. Companies are worrying about keeping more cash on hand and make money from the finance end of cash flow (albeit not a lot if they are just counting on interest from a bank). An example of this is something that happened in India, with Bajaj Auto. Back in the 1980s was India's No 1 two-wheeler company. This is also when Hero Honda was starting into this specific market too. At this time, Bajaj had very large cash reserves and also had the by far number 1 position in two wheeled motorized scooters in the region. Instead of spending money on advertising or ...

Solution Summary

(1) What might be the difference in managing the cash flow of a for-profit verus a non-profit?

(2) Many companies place diproportionate emphasis on the financial perspective at the expense of the other three perspectives. Give an example of an organization which you are familiar from either previous work, the news, or personal experience where this has been the case. What were the results of this focus on the financial perspective on the customers and other stakeholders? Be as specific as you can and give concrete examples.

(3) Can you think of any organizations that do not have relevant "customer" to take into consideration? If there are such, how are they different from other organizations where all parts of the Balanced Scorecard operate equally.

(4) Organizations are complex sysytems with stakeholders. Somtimes the interests of various stakeholders can conflict. For your initial post to this discussion, please give an example of a business porcess where the interests of two (or more) stakeholders are in opposition .

These questions are answered in detail by one of our true experts!

$2.19