Comparison of a profit and a non profit organisation
the diagram as they are closely relied upon for the smooth running of the business. The people who Oxfam are aiming to help in the third world will also be in this section of the stakeholder diagram as they will be considered in terms of the aims and objectives of the organisation.
Marks & Spencer’s stakeholder diagram has an extra layer, in this section it includes organisations who do not have a direct influence on the running of the company but do indirectly. These organisations include the Government (may affect M&S by introducing new laws and legislation’s) and competitors (their advertising and pricing strategies may affect M&S sales).
The final section of each diagram consists of organisations who have no link to M&S or Oxfam but have the power to influence their target markets and the general public. These include the media/press and lobby groups. In terms of Oxfam the bank may also be included in this section of the stakeholder diagram, this is due to the fact the bank does not act as a source of finance as it does for M&S, it would only be used as a place to store Oxfam’s donations.
In comparison the main difference between profit making organisations and non profit making organisation is their objectives. A profit making organisation such as Marks & Spencer aims to make a profit in order to pay dividends back to shareholders and grow and expand whereas a non-profit making orgnisation aims to reduce poverty through donations of the general public. However, one thing both types of organisations do have in common is they both conduct marketing and advertising in order to meet their objectives.