KELLER SCHOOL OF MANAGEMENT
HSM543 DISCUSSIONS WEEK 1-7 W/ CITATIONS (REFERENCES)
NOTE: SOME REFERENCES ARE INDICATED WITHIN THE DISCUSSION
POST.
WEEK
... [Show More] 1: TAX STATUS AND THE ABILITY TO RAISE CAPITAL
Q1: Welcome to week one! In this topic, we will be addressing how to raise capital in
organizations. You are at a seminar with other attendees representing various types of healthcare
organizations. After dinner, you are chatting with several of your new fellow attendees and you
are discussing who has it easier for raising capital, the not-for-profit organizations or the forprofit organizations. What comments do you have?
Regarding the discussion of raising capital the not-for-profit organizations raise capital easier
than a for-profit organization. For-profit organizations rely on investors to help them raise the
money necessary to grow the business. However, they will only do so for a percentage of the
business. For instance, investors will provide cash and services as well as property for shares.
Whereas, a not-for-profit will raise money from donations submitted by businesses and
community. Also, they are able to obtain grants and government assistance.
Q2: JULIE KOKOCZKA
True Thalia,
However, I submit that it is very difficult and time consuming to obtain donations or grants.
Also, the outcomes of such requests and applications are not guaranteed. So, from a simplicity
standpoint, perhaps it is not so easy for not-for-profit organizations to raise money.
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Julie your statement is very true regarding not-for-profits are challenging and time-consuming to
obtain capital. Not-for-profits are organizations that do more charitable work, and their objective
is to serve the community. They don't distribute any of the profits to the owner(s) it goes back
into the organization. Whereas the funds in a for-profit the profits can redistribute into the
organization or shareholders. I believe that not-for-profit can raise capital easier than a forprofit, but the for-profit with raising more money.
Q3:
Non-profits usually make a profit to keep the business running. However, earning a profit is not
their primary objective. They use 501(c)(3) that exempts them from some federal taxes.
According to the IRS, it states the tax exemptions for the 501(c)(3) is that the organization has to
be referred to as "charitable." [IRS17] Meaning organizations must not be formed or developed
for their interests. Also, profits are not to be paid out shareholders. There are some limitations
on section 501 that states there is a certain amount of political influence or lobbying the
organization may conduct.
WEEK 1: STRATEGIC BUDGETING
Q1: Class, let’s begin the second topic of the week by warming up with budgeting! We all do
budgeting or have done budgeting in a different form in our daily routines. Why is it so
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important for healthcare organizations to budget in a strategic manner? And what is the
connection between the organization’s 3-year strategic plan and the annual budget cycle?
Budgeting helps the organization strategically spend money in places that it is most needed. It is
a comprehensive financial plan that helps the organization achieve its operational goals as well
as finances. By developing a budget, the firm is creating their objectives for the usage of
resources and acquisition. It becomes an important benchmark to ensure that management is on
the right path to receive satisfactory outcomes. According to Louis Stratton, he states budgeting
“provides coordination between all departments while aligning the company’s strategic plan.”
[Str15] Everyone with a say so are working towards a common goal such as performance
evaluations and the overall organizational goal.
Q2: Strategic planning in health care consists of developing objective to meet goals as well as
determine how well the organization is presently doing and what they hope to achieve in the
future. In healthcare, one must take into account things that may affect the organization’s day to
day operations such as governmental policies, technological advancements as well as economy.
A key component in strategic planning is evaluating and appointing the right people that are
responsible for different aspects of the organization. Communication is another element that one
should consider ensuring the team’s success.
Q3: A SWOT analysis plays a critical part in strategic planning. It addresses any concerns the
organization may have such as weaknesses and threats. Also, the strengths the business has and
future opportunities. It allows us to see the bigger picture and the challenges that we may face.
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. The strength is the
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competitive edge the organization has on others in the industry. As a company, one must
understand its weaknesses to help improve the outcome of the firm. Opportunities assist the
company advance and grow in the ever-changing economy. Finally, analyzing the external
threats such as environmental threats and or regulation as well as technology is an enormous
contribution to the success of the organization. [Show Less]