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Case Study of Reach Out, a business providing therapy to children with autism.

Extracts from this document...

Introduction

´╗┐Rosamma Karishma Joseph ? 11C Australian International School, Sharjah IB Business & Management CASE STUDY: Reach Out ________________ 1. Glossary KEY BUSINESS TERM DEFINITION 1. Private sector Division of the economy that is controlled by private individuals and businesses rather than governments, with an objective of earning a profit. Eg: sole traders, partnerships 1. Part-time work Type of employment which requires the employees to work for less than the standard office hours. 1. Public sector Division of the economy that is controlled by the government. Eg: health, education, postal, police services 1. Public-private partnerships Contractual agreement between a public organization and a private party to provide a good or service. 1. Self-employed An individual who operates a business by being a sole proprietor, a partner, a consultant. 1. Flexible Schedule Alternate work arrangement with a different schedule preferred by the employee enabling them to meet personal needs. 1. STEEPLE analysis An analysis of the effects of social, technological, environmental, ethical, political, legal, economical influences on a business environment. It also helps in decision-making. 1. SWOT analysis A tool used to analyze the internal strengths and weaknesses and the external opportunities and threats of a business or any decision. 1. Business plan A report that contains details about how a business will achieve its aims and objectives. 1. Budget A financial document that estimates future expenses and incomes. 1. Start-up costs Costs incurred before a business begins earning any revenue or producing goods or services. 1. Grant A sum of money given by an organization, usually a government body, for a particular cause. 1. Performance-related pay The sum of money earned by an employee depending on how well he/she has performed in the workplace. 1. Financial motivation A sum of money given to an employee that is intended to motivate the employee and enable him to increase productivity. 1. Non-profit organization An organization that operates as a professional business but without the main objective of earning a profit. ...read more.

Middle

and identifying key problems in the organization and evaluating them. He is affected by the working environment and by the success of Reach Out, since his income is earned through a performance related pay system. 3. Andrew ? As the manager of Reach Out, Andrew was responsible for managing therapists and overseeing the scheme. Failure to manage his responsibilities well led to Neil questioning his role and presence in Reach Out. 4. Therapists ? Consisted the students looking for experience from the local university. They were concerned with the number of therapy sessions to be conducted at Reach Out, financial benefits (wages, salaries) and attaining experience at Reach Out. Reach Out?s external stakeholders include: 1. Families of children affected by Autism ? They formed the customer base at Reach Out. They determine the financial position of Reach Out. Their feedback on Reach Out is vital to the success of the organization. 2. General public ? They provide Reach Out with donations. They are interested in the performance of Reach Out and the services offered. With increase in reputation, Reach Out can manage to acquire more financial resources from the general public. 3. Suppliers of PECS cards ? These are a key source of Reach Out?s revenue. If Reach Out maintains a good relationship with its suppliers, it can manage to receive quality goods on time and at a good price. Suppliers will be interested in the financial position of Reach Out and if they would be able to pay the outstanding amounts in time. ________________ 1. Areas of Concern: 1. Neil?s Option 1 ? In this idea, the families would be asked to pay a higher fee. This would contradict Laura?s aim of ensuring Reach Out behaves ethically and is not profit oriented. They also might lose goodwill while the charity may lose reputation and the image of Reach Out will be spoiled. 2. ...read more.

Conclusion

This is because Andrew did not have much experience working with adults and he experienced difficulty with some social situations. 3. Dismissal of Andrew: Neil wanted to dismiss Andrew from Reach Out because of the number of complaints received regarding punctuality of therapists and absenteeism. It was Andrew?s job to overlook these matters and failure to do so was a growing concern for Neil. However, Laura was determined to retain Andrew because she thought it would improve the image of Reach Out. 4. Laura?s leadership style: The way in which Laura is leading Reach Out is termed as laissez-faire. In this type of leadership major decisions are taken by the management and orders are passed onto the workers. The workers are then free to act accordingly to perform as per these orders. There is too much decision making power in the hands of the workers and therefore there is a blurred perception of direction. Nick was also concerned about the manner in which Laura took decisions heavily basing them on her intuition. While Neil preferred a more analytical and scientific approach of reasoning and arriving at a rational conclusion. 5. Neil?s idea of charging a higher fee: Neil?s option to increase revenue for Reach Out was to increase the fee of therapy sessions by $5. However Laura did not support this. She felt that it did not reflect the ethical principle of Reach Out to charge families as little as possible. She further stated that it might tarnish the image of the charity. 6. Neil?s second option of branding Reach Out: Laura felt that this was nappropriate and did not see how it would aid Reach Out in achieving its goals. She only wanted to sell the PECS cards and help autistic children. 7. Neil?s third option of obtaining a sponsorship from N-Pharma: Laura was apprehensive about N-Pharma?s involvement with Reach Out. She was unsure if N-Pharma was actually passionate about helping autistic children or was indulging in a public relations exercise, as part of their corporate social responsibility programme. Page of ...read more.

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