case analysis

Problem Identification and Recommendation for SFK Organization

Student’s Name

Institution

Date

Introduction and problem statement

From the case, it is apparent that SFK-NY is one of the non-profit organization that is striving a lot to ensure that its mission of empowering the human spirit in every child is achieved. The case indicates that there is a huge gap in the society concerning the human spirit and hence SFK-NY has done its best to fill this gap. However, a closer look at the case reveals that the SFK-NY has not yet achieved its goal or rather its missions and vision. The vision statement for the organization is “One World, Every Child” (Vallas and Sherman, 2012). According to the case, it is stated that the mission of ensuring that the vision “ One World, Every Child” is achieved would only be complete when every child and young adult in the target region has participated in the SFK-YK program (Vallas and Sherman, 2012). This is because for all the children to learn he tools to help them make wise choices that provide them with certainty, happiness, concern for the well-being of others, the organization needs to invest a lot not only in employing personnel but also in expanding their project worldwide.

Expanding the program worldwide would need an enormous amount of money. Given that the SFK-YK is a non-profit organization, it means that it does not get capital from the services they offer. This is because they do not charge the beneficiaries for the services they get. The organization, according to the case, depends on donations from individuals, corporations, foundations, groups, clubs, and organization as well as their own fundraising from special events. Despite the fact that the organization gets a lot of assistance from well-wishers and clubs, the organizational Advisory Board and the director argue that their major concern is that SFK is not generating as much revenue through fundraising to support the current operation. They are also concerned that the organization is gaining a lot of popularity and that because of this, it is likely that it may experience massive growth. The board is also claiming that the cost for every student is approximately $300 per program, which is too much because every student needs to finish level 1,2 and even 3 depending on the availability of funding. This essay will support why lack of finance is the major strategic obstacle to the SFK-YK Program.

Body and discussion

One way in which an organization can achieve its strategic goal is by ensuring that all the factors of production are available and that they are put in proper use. Similarly, SFK-YK, despite offering the best and most popular services, must ensure that the factors of production are in place and that they are being utilized accordingly. Closer look at the case reveals that capital and resources are the main obstacle curtailing the success of the program. Other factors of production are available (Vallas and Sherman, 2012). For example, human capital, which is one of the key factors of production is dedicated and willing to effect and offer their services accordingly. Consequently, the human capital is not an obstacle to the program. Capital include such things as money or assets that can be used to run a program or a given venture. The case indicates that several plans or projects have not been achieved because of lack of enough capital.

There are many operations and activities in the case that have not been achieved because of lack of enough resources. For example, despite the fact that the SFK-NY program has started expanding internationally, it is apparent that its expansion is limited by lack of enough resources. For example, under revenue and management in the appendix section, a number of questions have been raised that can help in understanding where problems exist. For example, two questions raised clearly indicate that being a not-for-profit organization, the organization is facing a lot of challenges. For example, like other NFP, SFK is supported through investors who have the right to be rewarded for their investment, and who cannot afford to give away their products and services. In addition, the case reveals that the organization cannot get support from the government and that instead of supporting the not-for-profit organizations, the government may decide to subcontract the service out to the private sector. The problem of resources and capital is even worsened by the fact that being a not-for-profit organization, the organization cannot raise money through profitable operations. It also lacks shareholders to assist in raising the capital. Borrowing from banks is also not easy for a not-for-profit organization because there is no owner liability for loans (Vallas and Sherman, 2012). The only source of capital for such organization is a charity. Fundraising, grant writing, subscriptions and membership are other sources, but history indicates that fundraising is no longer appropriate. The fact that the SFK faces the problem of lack of capital is even worsened by the fact that top management are expected to hire properly, set and maintain a budget, solve internal problems, and assure that the basic mission of the organization is achieved.

Recommendations

A number of recommendations can be implemented to mitigate the challenges and problems facing the SFK organization. Some of these recommendations are discussed below.

1. Integrating the program into the normal school curriculum. This is one of the most appropriate recommendations that the SFK organization should do. The organization should write proposal seeking to include their program in the normal school curriculum. They may just allocate only three lessons per week. This would save the organization a lot of money. Doing this would also enable the organization get funding from the government because.

2. The second recommendation is that the SFK should actively seek for source of capital. Despite the fact that not-for-profit organizations have challenges when seeking for capital,SFK can use creative and innovative means to solicit capital and funding. As suggested by the board, the organization should use more focused and targeted fundraising. For example, the organization should target on parents, teachers and school administrators because they understand the importance of the program. The SFK organization should also look for those corporate foundations that are interested in funding this type of educational program.

3. The third recommendation is that the SFK should look for more powerful not for profit partners wo may support similar causes. This is because teaming up may increase SFK’s visibility and ability to fundraise with a more identifiable name.

4. Another important recommendation is that the SFK should diversify its operations by including a program that can be used to generate capital. Alternatively, they could find a for-profit partner and form a hybrid organization. One would be in charge of profit generation and the other would deal with the improvement and development of the program

Reference

Vallas, T., and Sherman, H. (2012). SFK-NY 2009: Success for Kids or too Successful to Succeed? International Journal of Humanities and Social Science. 2(17).