TOPIC 1 MATERIAL Terms:

Term ethics privatesector charity SWOTanalysis 7 7 30 31 line Definition Themoralprincipleswhichguidedecisionmakingandbusiness objectives Businesseswhicharenotcontrolledbythegovernment Acharityisannonprofitorganisationwhichisestablishedtosupporta providerelieftoagivencauseinsociety Adecisionmakingframeworkwhichaidsinidentifyingthecurrent Strengths,Weaknesses,Opportunities,andThreatsofthebusinessinthe presentandfuture. Alegaldocumentwhichoutlinesallthecrucialinformationaboutthe business,includingaims,objectives,products,markets,finances,staff. AnextensionofthePESTanalysis,whichidentifiesthemajorfactors whichmayaffectthebusiness,includingSocial,Technological, Economical,Ethical,Political,Legal,Environment.Thisanalysesthe currentsituationbutcannotaccountforfuturechanges. Thebasicshorttermgoalssetmythebusinesstoaidinachievingthe aims.Therearecommonlyquantifiableornumerical,suchasachievean increaseof5% Moralguidelinessetbyabusinesstohelpensurethatabusinessbehaves ethicallytowardsitsstakeholdersandenvironment. astatementgeneratedbythebusinesswhichstatestheoverallaspiration ofthebusiness,suchasbeingtheleadingfashionlabel Acleardeclarationofabusinesssintentandpurposeofexisting.Fora school,thismaybeprovisionofachievementforallstudents Theoverallstructureandtypeofbusiness(nonprofit,profit,company, soletrader) Abusinessorganisationwhichoperatesintwoormorecountries. Theresponsibilityofanorganisationtoactresponsiblytowardsits stakeholdersandsurroundingenvironment.

Businessplan STEEPLEanalysis

31 31

objectives

43

ethicalobjectives visionstatement missionstatement businessmodel multinational company corporatesocial responsibility

43 44 45 55 136 153

CHARITIES Profit is NOT a main objective Established for a particular cause Any profit is known as surplus Advantages
Provide welfare & support Usually exempt from tax

Disadvantages
Hard to source income Trustees (those who control the charity) cannot receive income. Solely rely on donations

Workers are motivated by good cause

STAKEHOLDERS OF REACH OUT Laura Neil Andrew Student therapists Families with autistic children SOURCES OF CONFLICT Laura & Neil
Laura Help families at all costs Continue to employ Andrew Gandin Decision-making is emotionally driven and based on her intuition Neil Create a sustainable future and income Dismiss Andrew on account of bad performance Prefers to analyse decisions with evidence and reason

Wants to make Reach Out a family brand Wants to keep Reach Out as a completely noncommercial organisation Wants to charge as little as possible Wants to form a sponsorship arrangement with N-Pharma Wants to charge more for sessions

Families & Therapists

Families Want routine, reliable sessions Therapists Need flexibility with their hours

ETHICAL ISSUES IN REACH OUT

x Unqualified specialists pose a risk to autistic children who are delicate x Autistic children need routine which the therapists sometimes cannot provide x Families with autistic children cant afford expensive counselling and miss crucial treatment Lauras scheme provides much cheaper counselling Laura also wants to make PECS cards more affordable Lauras blog provides free advice and support

TOPIC 2 MATERIAL LIST OF CHARACTERS Laura Chan:

Deep emotional connection to the cause - son Toby has autism Feels that the current support for autistic children is poor Feels that current private counsellors act unethically in charging more for the sessions Created a network and blog of her experiences Raised awareness through social networking Formed Reach Out with Neil Johnson and launched the charity on 1 May 2010 Determined to leave no child with autism behind Strongly committed to offering the cheapest service Strongly committed to producing and selling PECS cards Makes decisions with her heart Doesnt want the charity to get too big Laissez-faire leadership Income is $2000 per month Director of Communication and Networking Neil Johnson:

Motivated by Lauras story Saw the financial potential in the idea Has experience in both sectors Has skills and expertise Funds $10,000 start-up cost himself Income is 10% of cash receipts Equal status with Laura Director of Finance and Strategy Is motivated by the financial side of the business Analytical and scientific approach to decision-making Wants to make the charity bigger Andrew Grandin:

Has Asperguss syndome himself Celebrity status Very sympathetic to the cause Limited experience working with adults Communication issues Lied about knowing how to use a computer Responsible for managing therapists Known to be unreliable May generate GOODWILL* as a result of being employed *goodwill refers to the intangible assets of a business like reputation and customer base. COMMUNICATION METHODS Communcation in Reach Out Verbal (between therapists and directors, between directors) Email (Laura when she works from home, Laura between families) Internet (Lauras blog)

BARRIERS TO EFFECTIVE COMMUNICATION (LINE 102) Internal politics: Neil thinks Andrew is unfit for the job, feels angry towards him. Use of ICT: Andrew lied about his capabilities in using a computer Attitude: Andrew doesnt think there is anything wrong, and doesnt want to listen. Physiological: Andrew has Asperguss syndrome which often hinders social awareness and interaction with other people. Skills of sender/receiver: Andrew has communication issues and cannot express himself properly Effects include low morale (therapists), errors (appointments being cancelled, forgotten), lack of control (Neil and Andrew)

FURTHER PROBLEMS WITH COMMUNICATION IN REACH OUT No method to analyse the communication systems Breakdown of communications between families and Reach Out and therapists

TOPIC 3 MATERIAL Terms

Term Final accounts Line 32 Definition Three financial statements; profit & loss, balance sheet and cash flow forecast which account for all the finances of a business The costs associated with starting up a business

Start-up costs

32

Term Salary commission

Line 39 40

Definition A set amount of income per year which is paid in monthly payments commission pays workers as a percentage of the total level output (ie. how much revenue has been generated by said employee) otherwise known as total revenue term given to profits made from charity operations

total cash receipts surplus

40 56

Neil Johnson estimated the start-up cost to be $10,00, which would cover the refurbishment of Lauras bedroom to become an office WAGES Laura - income of $2000 per month Andrew - income of $1000 per month Neil - income of %10 of cash receipts Therapists - $20 per hour Problems can arise when Neil wants a higher income - this would mean getting a higher revenue. This would not be of concern Laura or Andrew

OTHER SOURCES OF INCOME Although Neil eventually supplied the start up costs, others sources were considered. Short term loan short, uncomplicated boost of cash which can be paid off quickly less risk for Neil may be hard to obtain as it would be difficult to prove that it can be paid back x usually high interest x adds liability Community grant free, doesnt have to repaid fits the nature of the business, worth cause x can be hard to obtain x may take a long time to get

TOPIC 4 MATERIALS Product: the counselling sessions run by students the online support from Lauras blog

the subsidized PECS cards Place: - Tangible products