Value Chain Analysis of Nonprofit Organization

A nonprofit Organization is a non-business legal entity focusing on the public and social welfare to benefit people. The income exceeding the expenses is for organizational purposes; the private parties can’t take it away. Today, we’ll discuss the value chain analysis of Nonprofit Organization supply chain analysis; primary and supporting activities in the process of value chain analysis Example Company. They are inbound and outbound logistics, operations, marketing, and customer service; infrastructure, HRM, technology, and procurement as an application of the value chain analysis process.

Suppliers of Nonprofit Organizations

• Charities
• Fundraising
• Donations
• Donor companies
• Volunteers
• Food suppliers
• Equipment providers

Leading Nonprofit Organizations

• The Salvation Army
• United Way
• Charity Navigator
• American Red Cross
• Private Foundation
• Humane Society of the US
• St. Jude Children’s Research Hospital
• Candid
• Feeding America
• Direct Relief
• Compassion International
• Map International
• American Heart Association
• Charity Watch

The Value chain analysis of Nonprofit Organization supply chain analysis would analyze the primary and supporting activities in the process of value chain analysis. They’re inbound and outbound logistics, operations, marketing, and services; infrastructure, HRM, technology, and procurement. Here’s supply chain analysis of Nonprofit Organization value chain analysis company example as follows;

Value Chain Analysis of Nonprofit Organization

Let’s discuss the primary and supporting activities involved in the process of value chain analysis of Nonprofit Organization supply chain analysis. It is an application of value chain analysis based on Porter’s model; some of the key elements and components of value chain analysis are as follows;

Primary Activities of Nonprofit Organization

The primary activities are directly involved in the production of products and goods and adding value to the nonprofit company. Some of the five main primary activities in the value chain analysis of Nonprofit Organization supply chain analysis are as follows;

Inbound Logistics of Nonprofit Organization

I-Large Fund Raising Network

There are many Nonprofit Organizations operating their functions in specific fields in various parts of the world. They receive charities, donations, food supplies, equipment, and funding from local people businesses, and international organizations. The size and scale of their funding and donation depends on various factors; for instance, the worth and value of their cause and objectives.

II-Strong Commitment

Authentic Nonprofit Organizations have a strong commitment to their industry-focused goals and objectives. They could be political, social, human rights, animal rights, natural and environmental, human trafficking, workers’ rights, and others. The specific industry-focused nonprofit would receive funding and donations from the relative field of individuals, businesses, and companies.

Outbound Logistics of Nonprofit Organization

Nonprofit Organizations receive donations and charities through bank transfers and cash; in terms of food suppliers, donations, and another resalable commodities. They employ multiple channels and methods to receive funding, food, supplies, equipment, and other items from donor companies, charitable organizations, and other individual clients. Multiple channels and mediums would increase their market reach and network

Operations of Nonprofit Organization

I-Multiple Operations

Nonprofit Organizations engage in multiple operations relevant to their specific fields and industry. For instance, the women’s rights nonprofit organization would find the female victims of domestic violence and other atrocities committed against them. Their daily operations comprise finding the victims, helping them, feeding them, giving them shelter, and supporting them to get back on their feet again.

II-Administrative Functions

Along with performing their daily industry-focused operations, Nonprofit Organization also engages in multiple administrative, legal, and fundraising activities. It allows them to strengthen their reputation, and raise funds and donations; so that they would keep performing and running their core operations and activities.

Marketing & Sales of Nonprofit Organization

Nonprofit Organizations run various types of marketing and advertisement campaigns to spread public awareness and raise funds and donations for their activities. They employ various media channels, traditional media, billboards, word-of-mouth, public gatherings, and digital media channels to increase the conversion rate and sales.

Services of Nonprofit Organization

Nonprofit Organizations offer a wide range of services to the public and needy people. The additional services would help them to increase their market reputation and promote brand loyalty among them. Some of the main services of Nonprofit Organizations are as follows;

• Social and public support
• Legal guide and assistance to victims
• Helping people to stand up on their feet
• Curing the sickly people
• Research program for dangerous diseases

Supporting Activities of Nonprofit Organizations

Supporting activities are indirectly involved in the production of products and goods and adding value to the nonprofit company. Some of the main supporting activities in the value chain analysis of Nonprofit Organization supply chain analysis are as follows;

Infrastructure of Nonprofit Organization

Nonprofit Organizations have established a very large infrastructure of fundraising activities, schools, hospitals, welfare facilities, public support networks, and other institutes. Well-developed infrastructure of the nonprofits would help them to smoothly perform their public welfare operations without any disruptions and delays.

HRM of Nonprofit Organization

Nonprofit Organizations have employed thousands of people and volunteers in their public welfare projects. The human resource management department of nonprofits plays a key role in building a large database of employees and volunteers, crafting and spreading public awareness messages, managing to work with limited resources, and motivating workers to look at the bigger picture.

Technological Development of Nonprofit Organization

Some research-oriented Nonprofit Organizations invest a significant amount of capital and intellectual resources in research and development. The objective is to find breakthroughs, access to the latest and advanced technology, and find tools and equipment to remove the miseries of ordinary people.

Procurement of Nonprofit Organization

Nonprofit Organizations are highly careful about procuring the supplies, materials, and funding from the right organizations. They make sure that the supplier’s organization is engaging in ethical practices; funding the nonprofit without any threads attached.

Conclusion: Nonprofit Organization Value Chain Analysis Example Company | Application of Value Chain Analysis Process |Process of Value Chain Analysis

After an in-depth study of the value chain analysis of Nonprofit Organization; we have realized that Nonprofit plays a key role in the growth and development of society. If you are learning about the Nonprofit Organization value chain analysis example company; then you should keep in mind the abovementioned primary and supporting activities. They’re inbound and outbound logistics; operations, marketing and sales, and services; infrastructure, procurement, HRM, and technological development as an application of the value chain analysis process.