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Case Study 2011

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Many people seem to be making that mistake! A PRP is not unethical for a Non-profit, it's actually very useful. This is all a result of the increased competition in the world economy. For a non-profit organization to be successful in today's time, they must behave in the same manner as private sector organisations. This is not only true for non-profits, but also for public sector businesses (of course all of you know this as privatization and re-nationalization)

1sippah, you're in Kenya? Hmmm... I'm finishing exams on friday, after Business P2... If you are too, you might run into me at Gypsies... How will you know it's me? Just look for the drunkest guy there ;)

I am not saying that PRP is unethical however in this case, since it is not directly linked to the objective of the business i.e. the performance is not measured by the success of the objectives but it is measured by a different factor which in this case is revenue. We can argue that this is the reason that all of Neil's ideas seem to be money related and none of them seem to directly or immediately complement the objective of the business which is to help children with autism. We can argue that eventually, Neils options and ideas will lead to RO helping autistic children but then again is it ethical to continue spending money on marketing and outsourcing schemes rather than buying the PECs cards. That is where the idea of ethics comes in, making the autistic children wait.

An interesting scenario that i was told about some time ago was about an eye clinic somewhere in Kangemi which is a Kenyan slum and it was entirely started and funded by donations. after constructing the eye clinic and all the startup costs, there was 40 million shillings left in their account, they decided to leave that money in a bank earning interest and run the clinic on the interest it would earn every year so they limited the amount of free service they would give to the public according to the interest rates. this worked well for a few years till the bank collapsed and they lost the 40 million that was sitting in the bank. The ethical dilemma here is, was it right for them to keep that money stagnant even though it would ensure the sutainability of the clinic rather than use the money and have helped so many more people than they did.

Thus we can apply the same idea to reach out where Neil is trying to ensure the sustainability of RO and Laura is simply trying to have as many people benefit from RO as possible. factors that would influence the most viable decision in this case would be the economic climate which we are told is in a recession therefore we cannot be sure of whether businesses will have resources in the future and whether business will survive or not.

I finish on friday too, I guess we gonna meet up at gypsies. you'll recognize me as the most stoned guy there and the sexiest guy there.

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Here is a quote for you from Wikipedia:

"First, a founder's passion and charisma, initially essential to the successful establishment of an organization, becomes a limiting rather than a creative and productive force. As an organization matures, professionally-trained and talented people are normally engaged and the board is expanded. The founder's domination of the decision making process may frustrate effective and inclusive group decision making."

I will continue my previous discussion(s) in a few minutes.

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Many people seem to be making that mistake! A PRP is not unethical for a Non-profit, it's actually very useful. This is all a result of the increased competition in the world economy. For a non-profit organization to be successful in today's time, they must behave in the same manner as private sector organisations. This is not only true for non-profits, but also for public sector businesses (of course all of you know this as privatization and re-nationalization)

1sippah, you're in Kenya? Hmmm... I'm finishing exams on friday, after Business P2... If you are too, you might run into me at Gypsies... How will you know it's me? Just look for the drunkest guy there ;)

reach out has no or negligible competition

From Wikipedia:

"While they are able to earn a profit, more accurately called a surplus, such earnings must be retained by the organization for its self-preservation, expansion and future plans. Earnings may not benefit individuals or stake-holders. While some nonprofit organizations put substantial funds into hiring and rewarding their internal corporate leadership, middle-management personnel and workers, others employ unpaid volunteers and even executives may work for no compensation. However, since the late 1980s there has been a growing consensus that nonprofits can achieve their corporate targets more effectively by using some of the same methods developed in for-profit enterprises. These include effective internal management, ensuring accountability for results, and monitoring the performance of different divisions or projects in order to better benefit from their capital and workers. Those require satisfied management and that, in turn, begins with the organization's mission."

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Many people seem to be making that mistake! A PRP is not unethical for a Non-profit, it's actually very useful. This is all a result of the increased competition in the world economy. For a non-profit organization to be successful in today's time, they must behave in the same manner as private sector organisations. This is not only true for non-profits, but also for public sector businesses (of course all of you know this as privatization and re-nationalization)

1sippah, you're in Kenya? Hmmm... I'm finishing exams on friday, after Business P2... If you are too, you might run into me at Gypsies... How will you know it's me? Just look for the drunkest guy there ;)

I am not saying that PRP is unethical however in this case, since it is not directly linked to the objective of the business i.e. the performance is not measured by the success of the objectives but it is measured by a different factor which in this case is revenue. We can argue that this is the reason that all of Neil's ideas seem to be money related and none of them seem to directly or immediately complement the objective of the business which is to help children with autism. We can argue that eventually, Neils options and ideas will lead to RO helping autistic children but then again is it ethical to continue spending money on marketing and outsourcing schemes rather than buying the PECs cards. That is where the idea of ethics comes in, making the autistic children wait.

An interesting scenario that i was told about some time ago was about an eye clinic somewhere in Kangemi which is a Kenyan slum and it was entirely started and funded by donations. after constructing the eye clinic and all the startup costs, there was 40 million shillings left in their account, they decided to leave that money in a bank earning interest and run the clinic on the interest it would earn every year so they limited the amount of free service they would give to the public according to the interest rates. this worked well for a few years till the bank collapsed and they lost the 40 million that was sitting in the bank. The ethical dilemma here is, was it right for them to keep that money stagnant even though it would ensure the sutainability of the clinic rather than use the money and have helped so many more people than they did.

Thus we can apply the same idea to reach out where Neil is trying to ensure the sustainability of RO and Laura is simply trying to have as many people benefit from RO as possible. factors that would influence the most viable decision in this case would be the economic climate which we are told is in a recession therefore we cannot be sure of whether businesses will have resources in the future and whether business will survive or not.

I finish on friday too, I guess we gonna meet up at gypsies. you'll recognize me as the most stoned guy there and the sexiest guy there.

With no offence, I have to say that you have taken this PRP issue WAAAAY too far! I hope the quote that I posted above will lead you to agree as well. NPOs today are increasingly using strategies that for-profits often employ. These include, and are certainly not limited to, motivational approaches. The idea is to get the best out of their employees.

And besides, Neil is the financing manager. He has to look for sources of finance to get the PECs cards made (which are to help families with autism, he is not against Laura's objectives in anyway whatsoever, he just dislikes her leadership style and her indifference). Once these start being made, is when RO will start to use most of its surplus. This is because Laura's vision is to provide the cards at a cheap rate. These rates they intend to be charge will have to be lower than the cost of their production. Ergo, their surplus will reduce significantly, since these will make up for the extra costs of production. Neil's commission will inevitably decrease as a result (and if you are a good student you will note this as a potential problem).

Laura is trying to reach as many families as possible, I agree. But, in the first quote that I posted, you should realize that all the friction she is causing is because she intends to remain the dominant decision maker. There is some relationship here to resistance to change (and if you look at past paper one's there is almost always a discussion on resistance to change, especially in section C).

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Many people seem to be making that mistake! A PRP is not unethical for a Non-profit, it's actually very useful. This is all a result of the increased competition in the world economy. For a non-profit organization to be successful in today's time, they must behave in the same manner as private sector organisations. This is not only true for non-profits, but also for public sector businesses (of course all of you know this as privatization and re-nationalization)

1sippah, you're in Kenya? Hmmm... I'm finishing exams on friday, after Business P2... If you are too, you might run into me at Gypsies... How will you know it's me? Just look for the drunkest guy there ;)

I am not saying that PRP is unethical however in this case, since it is not directly linked to the objective of the business i.e. the performance is not measured by the success of the objectives but it is measured by a different factor which in this case is revenue. We can argue that this is the reason that all of Neil's ideas seem to be money related and none of them seem to directly or immediately complement the objective of the business which is to help children with autism. We can argue that eventually, Neils options and ideas will lead to RO helping autistic children but then again is it ethical to continue spending money on marketing and outsourcing schemes rather than buying the PECs cards. That is where the idea of ethics comes in, making the autistic children wait.

An interesting scenario that i was told about some time ago was about an eye clinic somewhere in Kangemi which is a Kenyan slum and it was entirely started and funded by donations. after constructing the eye clinic and all the startup costs, there was 40 million shillings left in their account, they decided to leave that money in a bank earning interest and run the clinic on the interest it would earn every year so they limited the amount of free service they would give to the public according to the interest rates. this worked well for a few years till the bank collapsed and they lost the 40 million that was sitting in the bank. The ethical dilemma here is, was it right for them to keep that money stagnant even though it would ensure the sutainability of the clinic rather than use the money and have helped so many more people than they did.

Thus we can apply the same idea to reach out where Neil is trying to ensure the sustainability of RO and Laura is simply trying to have as many people benefit from RO as possible. factors that would influence the most viable decision in this case would be the economic climate which we are told is in a recession therefore we cannot be sure of whether businesses will have resources in the future and whether business will survive or not.

I finish on friday too, I guess we gonna meet up at gypsies. you'll recognize me as the most stoned guy there and the sexiest guy there.

With no offence, I have to say that you have taken this PRP issue WAAAAY too far! I hope the quote that I posted above will lead you to agree as well. NPOs today are increasingly using strategies that for-profits often employ. These include, and are certainly not limited to, motivational approaches. The idea is to get the best out of their employees.

And besides, Neil is the financing manager. He has to look for sources of finance to get the PECs cards made (which are to help families with autism, he is not against Laura's objectives in anyway whatsoever, he just dislikes her leadership style and her indifference). Once these start being made, is when RO will start to use most of its surplus. This is because Laura's vision is to provide the cards at a cheap rate. These rates they intend to be charge will have to be lower than the cost of their production. Ergo, their surplus will reduce significantly, since these will make up for the extra costs of production. Neil's commission will inevitably decrease as a result (and if you are a good student you will note this as a potential problem).

Laura is trying to reach as many families as possible, I agree. But, in the first quote that I posted, you should realize that all the friction she is causing is because she intends to remain the dominant decision maker. There is some relationship here to resistance to change (and if you look at past paper one's there is almost always a discussion on resistance to change, especially in section C).

Touche my drunkard friend, I am now going to take a few hours to cram as much as I can of this new study guide I have after doing a line or two and I will get back to you once I am about to crash and have achieved Business and management Nirvana.

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Hey guys, have been reading your discussions and i have to say, very informative, thanks.

Question, for the SL Exam ill have Section A composed of 3 questions (i have to choose 2) and Section B composed of 1 compulsary question.

How many marks will each have? And how much time shouldd i allocate for each question?

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Hey guys, have been reading your discussions and i have to say, very informative, thanks.

Question, for the SL Exam ill have Section A composed of 3 questions (i have to choose 2) and Section B composed of 1 compulsary question.

How many marks will each have? And how much time shouldd i allocate for each question?

Hey, each of the Section A questions for you are 15 marks. Section B is worth 20 marks. Section B will include a more analysis-based response. Time, that really depends on you. Maybe 5 mins reading and planning time, and then 20 mins for each question in Section A and 30 mins for section B.

Good luck!

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Alright everyone, goodluck with the paper 1 tomorrow and please just continue brainstorming on this forum till you get into the exam, you never know it might just help someone. I would continue commenting but I now have approximately 10 hours till the beginning of my paper and as you all know this is an afternoon paper, you can guess what time it is for me so i would like to get a few decent hours of sleep.

and slack I know you're awake too, if u see this, GO TO SLEEP!!!!

so again goodluck guys.

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Alright everyone, goodluck with the paper 1 tomorrow and please just continue brainstorming on this forum till you get into the exam, you never know it might just help someone. I would continue commenting but I now have approximately 10 hours till the beginning of my paper and as you all know this is an afternoon paper, you can guess what time it is for me so i would like to get a few decent hours of sleep.

and slack I know you're awake too, if u see this, GO TO SLEEP!!!!

so again goodluck guys.

I'll just sleep for about an hour, before the exam! :P

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Not that I've been an active member of this forum, I just want to wish you all good luck!

:)

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can ppl who just finished the exam ..please post the questions if they remember?

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Will this case study definitely be used this november in Australia?

The same case study is used all over the world for IB Students..just differs from year to year..but its the same Case Study for May AND November :)

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Any people who sat the exam in May remember what topics the questions were related to?

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Well I'm not an active member of this forum, but I was reading all the questions that you guys posted, thank you so much , in a few hours I'm gonna take the exam, and you really help me...

Good Luck everyone :D

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Has anyone else noticed how Option 1 doesn't mke sense?

It says that Neil is considering raising the prices from $25 to $30. Neil believes that this would help increase motivation of the students, while doubling the revenue for Reach Out. HOW??

If the revenue for Reach Out doubles, it means that they are taking $10, and therefore the students still get paid $20. This will not increase their motivation because they are still getiing the same amount of pay.

There is likely to be a question on this "mistake".

they will get remotivated because they will feel that Reach out may put this extra money in training and development of students. according to Maslows theory if students think that this will happen their self actualisation needs will be covered as they will develop even more in what they are doing. we can relate it to other motivation theories similarly, in the aspect of self development of the students

Edited by 4fair1

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This topic has been closed by a moderator.

Reason: Exam period passed

If you disagree with this action, please report this post and a moderator or administrator will reconsider it.

Kind regards,

IB Survival Staff

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