MASTER OF BUSINESS ADMINISTRATION

MARKETING MANAGEMENT
(MPMM 7113)
GROUP ASSIGNMENT 1

PREPARED FOR
DR. HJ. MOHAMAD IDRAKISYAH

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Answer All 2 Questions

1. The governance of Non-Governmental Organizations and non-profit entities. Discuss the

typical problems of not-for profit entities. (20 marks)

Although non-profit organizations put in a lot of effort to do good in the world, running one is much more
difficult than it appears. Non-profits face additional challenges that are unique to their sector in addition to the
issues that are typical of any business, such as adapting to new technology and remaining up to date with
accounting and regulatory requirements. The obstacles that non-profit organizations face due to limited
government funding.

Numerous non-profit organizations rely on government support. This assistance could come in the form of
grants or be part of a matching scheme. Alternatively, it could merely act as a safety net to cover shortfalls in
funds. There is less to go around as state, national, and municipal budgets shrink. The majority of non-profits
receive less funding than they desire or require, while others do not receive any funding at all.

The pressure on nonprofits to present strategic solutions and results one of the factor too. In the past, the
nonprofit sector placed a strong emphasis on demonstrating that the beneficiaries of its programs were utilizing
them and gaining access to them. The pressure has shifted now, largely because there is less to go around. It can
be much more challenging to calculate how you’re nonprofit is achieving its social impact goals.

Besides that, getting the best talent and keeping it over other industries. People who work for nonprofits tend to
be very committed to the causes they support and are an asset to the industry. However, recruiting "top talent" is
difficult for many nonprofits due to their limited resources. Those who are taken in by industries that pay more
and offer more opportunities.There are two parts to the solution. Fight the fear first.Put money into these people
if you need them. Nonprofits need to look at the big picture and fight the fear that they might leave or cost too
much. Second, if you cannot invest in new talent, you must believe in your best employees. Give your
employees an engaging work environment that lets them concentrate on your mission, which is why they love
their jobs and assist them in growing and developing their undeniable passion.

Last but not least, the issue of an astronomical rise in the demand for nonprofit services. Nonprofits are seeing
an increase in demand for their services everywhere. The problem of poverty is real, and many people are
having financial difficulties. The environment needs to be saved, and many schools are cutting arts programs,
making it harder for nonprofits to respond quickly to unpredictability and provide much-needed services.

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 2. Explain the Board functions working through management. (20 marks).

A firm or corporation is led by a governing body known as the board of directors. Their major objective is to
safeguard the assets of the shareholders of a company by ensuring that the management of the organisation
works in their best interests and that the owners receive a satisfactory return on their investment (ROI) in the
business. They achieve this goal by getting together on a regular basis to devise guidelines for the overall
management and supervision of the organisation.

The capabilities and make-up of a board of directors might vary greatly from one organisation to the next. The
specifics of how an organisation is run are laid out in the bylaws of the business. The bylaws specify the
procedures that must be followed, such as the number of board members who must be present at all times, the
number of board members who must be present at any one moment, and the election process for new board
members.

The requirements of the company should guide the composition and size of the board of directors. Nevertheless,
three to thirty-one people make up the majority of boards. To prevent votes from ending in a tie, it is best to
have an uneven number of voters. According to the opinions of a great number of specialists, the perfect
number of board members is seven. No matter how many there are, the members of the board of directors
should include both outsiders and insiders to fairly reflect the interests of the company's shareholders and
management.

A corporation absolutely has to have some goals to work toward. What I am referring to here are the broad
goals of the corporation, which essentially have to do with accumulating cash at a rate that is satisfactory.

The most efficient boards delegate their tasks to committees, which then report back to the complete board on
their progress. It has been demonstrated to be an efficient method for analysing difficult problems to establish a
small group of directors who are picked for their relevant skills. In order of their more recent ascent to
prominence, the audit, pay, and nominating committees now overshadow the more established executive
committee, whose function has a tendency to become that of the entire board. None of these more recent
committees are intended to look into the distribution of the available resources. This action is the very definition
of maintaining control over the direction the firm will take in the future.

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 3. Synonyms for Corporate Social Responsibility – Others, in your language? Describe. (20 marks).

Corporate social responsibility (CSR) is a self-regulating business model that assists a firm in being socially
accountable to itself, its stakeholders, and the general public is referred to as corporate social responsibility.
Companies are able to be aware of the kind of impact they are having on all elements of society, including the
economic, social, and environmental spheres, when they engage in the practise of corporate social
responsibility, also known as corporate citizenship. A firm is said to be practising corporate social responsibility
(CSR) when it conducts its day-to-day operations in a manner that contributes positively to society as well as
the natural environment, rather than negatively.

The concept of "corporate social responsibility" (CSR) refers to an approach to doing business that encourages
businesses to conduct their daily operations in a manner that is beneficial to both society and the environment,
rather than one that is harmful to either. CSR helps both enhance many parts of society and develop a positive
brand image for firms. This is a win-win situation for everyone involved.

The idea of a company being responsible for its impact on the community is quite broad and can be expressed in
a variety of ways, depending on the type of business and the sector in which it operates. Businesses can improve
their brands while also helping society if they engage in corporate social responsibility (CSR) programmes,
philanthropy, and volunteer work.

Before a business to be considered socially responsible, it must first demonstrate that it is accountable to both
its management and its shareholders. Businesses that decide to implement CSR programmes have typically
achieved a level of financial success that allows them to contribute to the communities in which they operate.
As a result, corporate social responsibility (CSR) is generally a strategy that is applied by large firms. After all,
a firm has a greater obligation to its peers, competitors, and industry as a whole to create ethical behaviour
standards in proportion to the level of visibility and success the corporation has.

As conclusion, CSR, often known as corporate responsibility, is typically a combination of activities that aim to
address social as well as environmental concerns. However, sustainability integrates these concerns into the
very fabric of the organisation. And ultimately, this is the goal that those in my field are working toward:
incorporating sustainability into "business as usual."

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 4. Corporate risks arise at a number of levels. Describe the levels. (20 marks).

There were a number of interconnected reasons that contributed to the failures, but two in particular stand out in
my view as being particularly important: the first was a failure to openly account for risk when creating
organisational plans, and the second was a failure to monitor and manage the risks that they had recognised and
assumed. Risk can take various forms, but it can generally be broken down into three categories: those that are
predictable, those that can be controlled, and those that can be managed. Organizations encounter a wide variety
of risks. Consider how significant the danger could be to both the organisation and the community it serves.
This factor is perhaps the single most essential consideration. Because of this, it is essential for those in charge
of managing the public sector to be familiar with the three different degrees of risk and the strategies for
mitigating them.

The lowest level will be includes standard hazards associated with operations and regulatory requirements.
Errors in procedures that are habitual, standardised, and predictable represent a risk to the organisation since
they put it at danger of suffering significant financial loss. These procedures are typically classified as either
strategic or vital, depending on their importance. Protecting essential assets and information, as well as
guaranteeing information security, privacy, backup, and disaster recovery, are all vital activities that must be
maintained and kept up to date. Financial accounting and tax systems must also be kept in good working order.
They also include internal controls that protect against fraudulent activity, negligence, legal and other regulatory
obligations, as well as other types of liabilities. If any of these processes were to fail, the organisation may be
put in jeopardy of suffering financial and informational losses as well as legal action. And even if every step of
the process is followed to the letter, the company may still be unable to successfully implement its strategy.
Protecting against these risks typically requires extensive training of personnel, as well as the establishment of
standard operating procedures, as well as the creation of internal controls, which may include the segregation of
duties and the empowerment of an internal audit department to monitor operating processes in order to highlight
defects and deviations in compliance. At this level, all of the dangers are both understood and able to be
avoided. As a result, the risk management of these procedures aims to achieve a hundred percent compliance
and no flaws at all.

The middle level will be Future viability of the organisation and the services it provides is the primary concern
of strategy risks. This may entail securing greater financial returns and revenues, as well as gaining and
preserving a competitive advantage over other governmental, non-profit, and for-profit organisations, as well as
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the possibility of competing for market share. To do so will invariably expose one to some risk. By a public
utility accepts the risk of default when extending credit to clients or giving them with extra time to pay their
utility bills, for example, this is an example of a straightforward and easily quantified risk. In this scenario, the
public utility takes the risk of losing money. They can also be more speculative, such as when a government
creates a whole new product line or service or enters a new market. Another example is when a private
company acquires a government-owned company. I have found that it is helpful to identify the major plausible
risks that are inherent in the strategy, attempt to mitigate or manage those risks, and then continually monitor
the risk exposure that the strategy has accepted in order to earn superior returns in order to manage these risks.
This has been my experience. Potential dangers to the strategy include those to the finances, the reputation, the
environment, the human resources, and the information technology. An organisation needs to develop a
framework for identifying, mitigating, and systematically managing the risks to the organization's strategic
objectives in an integrated and comprehensive manner in order to effectively manage strategy risks. This is
necessary for an organisation to effectively manage strategy risks. This may entail identifying the challenges
and barriers that could prevent the organisation from attaining its goals, as well as developing a mechanism to
monitor progress toward intended performance. In addition, this may mean determining the factors that could
prevent the company from accomplishing its goals. For instance, if the goal is to cultivate workers who are
proficient in technology, the organisation might devise a metric to determine the percentage of workers who are
rated as "very good" or "excellent" for their pertinent skills, experience, and knowledge of technology. This
would be an indication that the objective is being met. The next step for the company is to investigate the risk
factors that could prevent it from accomplishing its goal, such as a high employee turnover rate, retirements, or
inefficient training programmes.

To be able to plan for and respond to this middle strategic risks, public managers need to first identify the most
significant threats to the strategy, then create an early warning risk assessment warning system to signal when
adverse conditions are occurring, and finally establish funding priorities that will prevent or mitigate the most
likely and consequential strategic risk events. In order for risk management to be effective, senior managers
need to make it a priority, and monthly strategy review meetings, which are frequently led by risk experts,
should include time set out for risk professionals to discuss important operational and strategy concerns. These
kinds of frequent assessments ensure that leaders periodically address the risk exposure of the firm and evaluate
how well they are reducing the known risks to the strategy.

Last but not least the third risk are frequently referred to as "unknown unknowns," which refers to unforeseen
and unheard-of situations that pose a threat to humanity's very existence. When the price of oil doubled, it

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rendered General Motors and Chrysler's profitable product lines of huge, fuel-inefficient vehicles unsellable to
consumers. One could say that these two automakers went through an occurrence similar to this one when oil
prices doubled. In a world where gasoline costs are high, neither corporation had planned nor put into action a
strategy that could generate positive cash flows. Even if measurable models can have trouble estimating the
frequency of these risks, managers can still make preparations for them or find ways to limit their effects. In
order to complete their risk planning, some companies, such as Goldman Sachs and JP Morgan Chase, engage
in vigorous debates on the likelihood of certain occurrences and the results of such occurrences. These
gatherings are known as "tail-risk meetings" due to the fact that the chance of the occurrences that are being
addressed is in the "tail" portion of the probability distribution. These kind of discussions assist leadership
teams in determining whether the organization's plan is sturdy enough to withstand the disruptions that may
result from "unknown, unknowns." In the end, effective risk management needs accurate prediction of future
occurrences, particularly those that are extremely unlikely and have never before taken place. However, despite
the complexity of risk management, public managers who try to avoid it, minimise its importance, or transfer it
to another person or another time do so at their own risk. There are a variety of guises and permutations that risk
can take. Some dangers like lowest risks are known and unavoidable. Standard operating procedures, internal
controls, and internal audits are some of the tools that public managers use in an effort to reduce the frequency
of these incidents.

In the end, effective risk management demands leadership, particularly when things are going smoothly and
there are no impending storms to worry about. When this occurs, public managers must have the bravery to be
aware of the positive and negative effects of a particular action, and they must also be willing to reject
possibilities that put the organisation in an unacceptable amount of danger.

5. Discuss the differences between Social Responsibility and Ethics. (20 marks).

The primary objective of businesses is to maximise profits for the benefit of their owners and shareholders. This
does not, however, mean that they are free to do whatever it takes to achieve the utmost possible profitability.
They are not allowed to engage in unethical behaviour in the pursuit of the profit they want. This is where
issues of social responsibility and ethical behaviour in the workplace come into play.

There is a lot of room for misunderstanding between these two terms, and people have a tendency to use them
interchangeably. The concept of social responsibility is straightforward, yet the phrase "ethics" generates a great
deal of misunderstanding. In order for a company policy to be beneficial to the community, it must be followed.
The phrase "corporate social responsibility" was developed to describe this concept. However, when one
discusses business ethics, it transforms into a whole different topic. This is due to the fact that ethics is founded
on conscience.

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There has always been a conflict between commercial ethics and social duty, despite the fact that they appear to
overlap one another. Companies have been found to be involved in activities that cannot be considered ethical,
despite the fact that they have made a commitment to be socially accountable for their actions.

What is beneficial for society is not always beneficial for businesses, and vice versa; conversely, what is
beneficial for businesses is virtually never beneficial for societies.

Businesses are compelled to act in a responsible manner if the society as a whole is conscious and reacts in a
way that forces them to. The administration and the judicial system of any country are subject to the same
standards.

Selling alcoholic beverages and tobacco products, for instance, is not in violation of the principles of business
ethics; but, it may be in violation of the standards of social responsibility. The same logic can be used to gaming
and lotteries. To attract people under the age of 18 to engage in activities such as smoking and drinking violates
not only the principles of ethical corporate conduct but also the principles of social responsibility.

It is best to gain a general understanding of the definition of ethics before attempting to define business ethics.
The word ethics, which refers to a person's moral character, originates from the Greek word ethos. A way of
behaving that is ethical is one that concerns doing what is good and right. The study of ethics focuses on the
distinctions between right and wrong, good and evil. When applied to business, it indicates that a corporation
has a responsibility to act in a way that is ethical and serves the best interests of all parties involved, including
shareholders, stakeholders, and even the community.

Even if generating a profit is the single most crucial aspect of running a business, if doing so is the only priority
of a particular company, then that company represents the worst kind of capitalism. It is in everyone's best
interest for businesses to maintain strong ethical standards, as this benefits the community or society as a whole.
This is the primary objective of ethical business practises that the actions of the business shouldn't be harmful to
the people. Instead, it ought to be to their advantage. However, these punishments are little in comparison to the
immoral things that other corporations are capable of doing and have actually done. The law penalises
businesses that do not have excellent business ethics but these penalties are quite minor in comparison.

The conduct that is expected of man must be in accordance with the standards of behaviour that are seen as
respectable within the community or society. If we draw parallels between this scenario and the world of
business, companies still have a responsibility to fulfil their social commitments by engaging in activities that
are in line with the standards established by their community or society. Even if a company's primary focus is
on increasing profits for the corporation, it should nevertheless feel some level of social obligation for the
community in which it operates. This is the most fundamental interpretation of the term "social responsibility."
It is more of an obligation or a duty toward the individuals that the company's actions have an impact on. One of
the most important examples of this is lowering the amount of pollution produced by the company, which is
especially important to do if that particular company is the source of all of the pollution.

Reference:

https://digitalscholarship.unlv.edu/cgi/viewcontent.cgi?article=1323&context=sea_fac_articles

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