Oxfam's Other Main Source Of Finance example essay topic

All organisation's whether they be profit making or non profit making have to increase awareness of their services and products to all of their key stake holders in order to maximise and achieve their set targets and objectives. Most non profit making organisations operate in the services sector such as hospitals and local authorities or exist as charities such as Oxfam or NSPCC. The objectives of a non-profit making organisation differ from that of profit making organisations in terms of they have other objectives apart from making a profit. Their main primary goals are non economic, for example, Oxfam aim to alleviate hunger throughout the world.

Over the years marketing amongst non-profit making organisations has become ever more important. This is due to the fact that many non-profit organisations rely on membership fees and donations so it is essential that effective methods of communications are used to increase awareness amongst individuals and organisations in order to maximise the memberships and donations. In 1942, the Oxford Committee for Famine Relief met for the first time, establishing what is now one of the best-known non-government organisations in the world, Oxfam. Oxfam Great Britain is a development, relief, and campaigning organisation dedicated to finding lasting solutions to poverty and suffering around the world. The organisations aim is to enable all human beings to have a life of dignity and opportunity.

This is achieved through working with poor communities, local partners, volunteers, and supporters to overcome poverty and suffering. Oxfam works in 70 countries throughout the world joining together to fight poverty. Oxfam helps by giving money and advice, helping people to help themselves. This way they grow more food, dig wells for clean water, train health workers, learn to read and write, plant trees and gain confidence and build mutual trust.

Oxfam relies on public donations to continue providing long-term support to the people around the world. Oxfam uses powerful advertising to persuade the general public to make a donation. This powerful advertising is usually done via television. The adverts show people, usually children in third world countries suffering due to poverty and famine, asking you to donate three pounds a month. This initial scene is set to play on the viewer's mind and inflict a feeling of guilt. The advert then shows how your donation will be spent, stressing the fact that your money will be a long term investment.

This is aimed to give the viewer satisfaction and reassure them that their money going to be used in a positive way. At the end of the advert a telephone number is given for viewers to ring up and donate using a debit cards. There are a number of ways available in which you can make a donation to Oxfam, the latest method available is through a secure online donation, using a credit card, other methods include a monthly direct debit installment or the more traditional cash donation. Oxfam's other main source of finance is through their Fair Trade Shops, which sell quality, handcrafted products from around the world.

Oxfam use to raise money by selling clothes and bric-a-brac donated by the general public. In the mid 90's Oxfam developed their product range, through market research they discovered people were more willing to by hand crafted items than second hand clothes etc. Due to this Oxfam decided to work with other countries and have them produce handcrafted products and sell them in Oxfam stores. Oxfam works with over 30 countries in Africa, Asia and Latin America. This scheme is known as Oxfam Fair Trade, helping people earn a living from their skills.

Oxfam help train and support the producers, linking them with consumers and paying them a fair wage. Oxfam have developed this scheme so consumers know that the people behind the products get a decent wage and a fair deal. Through developing and extending their product range Oxfam also developed their market. The new product ranges attracted people from different market segments meaning their target audience grew and incorporated a wider target market. The key stakeholders of Oxfam are as follows: Committee (organisers), aid relief workers, volunteers (shop workers etc), Customers, members (people who donate on a monthly basis), individuals in the third world who Oxfam will benefit. Media, Banks.

It is essential that profit making organisations identify their target markets through extensive research and develop a successful marketing mix that will hopefully achieve all of their aims and objectives. As expected the main aim of a profit making organisation is to maximise profits, this then allows organisations to meet other objectives such as to grow and expand. Marks & Spencer is a renowned company world wide, which prides it self on providing top quality products and service. Marks & Spencer was established in 1884 by a Russian refugee named Michael Marks. Marks ran a small market stall selling clothes insisting on selling high quality products, which has become a trademark of M&S over the years. In 1894 Marks formed a partnership with Tom Spencer, a clerk for a clothing company, Dewhurst, which is still a major supplier for M&S. This is when the company's name Marks & Spencer was first introduced.

In 1926 the company became a public limited company (plc) and in 1931 the company started selling food. In 1975 their first European store (in Paris) was officially opened. Over the years the company has grew and gained a successful reputation. Their group turnover is lb 8 bn, on which they make lb 1 bn profit (a very high profit / turnover ratio compared to other retail stores).

They have 68,000 employees, and serve 15 m customers per week. Their UK business provides 90% of their turnover, half from food and half from other sources. There are 300 stores in Britain with 379 situated throughout the world. Their European stores are run as franchises; they also have US subsidiaries under different names.

Throughout the 1980's Marks & Spencer's company statement was to provide top quality products. This was the case and the company was renowned as one of the best in Britain. M&S undertook very little advertising as business was booming and their excellent reputation was spread via word of mouth leading to repeat custom. Due to this their customers were marketing the company themselves and this was a perfect way of reaching and broadening their target market through their target market.

However throughout the 1990's Marks & Spencer's reputation started to fall and instead they gained a reputation of being dated and dull. By the late 90's both sales and share prices had fallen to an all time low. The board of directors elected a new chairman (Luc Vanderbilt), who was given the task of reinventing the company. His main objective was to give the company a new image and introduce product ranges that would appeal to a variety of target markets, young and old, male and female. A number of new product ranges were gradually introduced, including a designer range named 'Autograph', a new casual men's range called 'Blue Harbor' and the much publicised 'Per Una' range designed by George Davies. In order to promote the company's new image extensive national advertising was undertaken.

For the first time M&S were advertising in newspapers, magazines and on the television. Along with this all M&S stores were refurbished to give a more modern feel and appearance and new staff uniforms were introduced. Since these changes have been made Marks & Spencer's sales have steadily started to increase and they have regained their reputation as one of Britain's most succesful companies. The Key Stakeholders of Marks & Spencer are as follows: Board of Directors, Chairman, managers (regional, store, department), employees.

Shareholders, customers, suppliers, sub-contractors (cleaners, caterers), other sources of finance (banks etc). Government, competitors. Media, lobby groups. From the two stakeholder diagrams you can see that there are some similarities between the two organisations in terms of the individuals and organisations concerned, but in general the structure under which these individuals are involved does differ. The first noticeable difference is the number of layers to each diagram. Oxfam has fewer people concerned with their business in comparison to a large profit making organisation such as Marks & Spencer.

The core of each diagram is similar with the people directly concerned with the running of the organisation. The main difference is Marks & Spencer has paid employees working in their stores whereas Oxfam rely upon volunteers to work in their stores. The second layer of each diagram differs quite substantially. Both organisations rely upon customers as a source of finance.

M&S also gain finance through their shareholders (purchasing shares from stock market) and banks whereas Oxfam rely on donations as their only other source of finance. The suppliers and subcontractors of M&S will also be placed in this second layer of the diagram as they are closely relied upon for the smooth running of the business. The people who Oxfam are aiming to help in the third world will also be in this section of the stakeholder diagram as they will be considered in terms of the aims and objectives of the organisation. Marks & Spencer's stakeholder diagram has an extra layer, in this section it includes organisations who do not have a direct influence on the running of the company but do indirectly. These organisations include the Government (may affect M&S by introducing new laws and legislation's) and competitors (their advertising and pricing strategies may affect M&S sales).

The final section of each diagram consists of organisations who have no link to M&S or Oxfam but have the power to influence their target markets and the general public. These include the media / press and lobby groups. In terms of Oxfam the bank may also be included in this section of the stakeholder diagram, this is due to the fact the bank does not act as a source of finance as it does for M&S, it would only be used as a place to store Oxfam's donations. In comparison the main difference between profit making organisations and non profit making organisation is their objectives. A profit making organisation such as Marks & Spencer aims to make a profit in order to pay dividends back to shareholders and grow and expand whereas a non-profit making organisation aims to reduce poverty through donations of the general public. However, one thing both types of organisations do have in common is they both conduct marketing and advertising in order to meet their objectives.