Case: Teach for China and the Chinese Nonprofit Sector Case Solution
Problem Statement:
The primary issue faced by the company is the complexity of regulatory requirement in education industry. The secondary issues include the challenges from the public and risk faced by new entrepreneurial firm.
Case Analysis:
Teach for China is a nonprofit organization and the core mission of the organization is to expand the education opportunities across the china. However, the mission is too big for a newly developed organization but the company has achieved its short term milestones. The company intends to offers educational courses for the rural areas citizen in China as they have less educational facilities.
The company is performing well in its primary and secondary objective as indicated in the case that the company grew from 2 employees to 300 employees. The company created international and local relationships which led to the company’s assistance in getting the success. The company services enhanced to 70000 students in two year program.
This was done through the collaboration with international and local partners. Teach for China recruited the real estate entrepreneur, which indicates that the organization structure of the company is not working effectively and efficiently as the non-experienced person is hired on the most senior position of the company.
The newly hired board chair is a real estate entrepreneur and he has different mindset for doing business which includes the enhancement of return on capital employed but the Teach for China requires the person who intends to provide better educational services to the poor people.
The government of China has focused over the misuses of funds by the social organization like teach for china. The public of China or major funds donor of social organization is also worried about the incorrect use of their funds. The company has performed well in the past due to its appropriate policies and strategies but it is currently facing some problems such as legal issues.
Political Situation:
After the Cultural Revolution in China,the central government took big steps for the national education improvement and turning the laws and regulation in such a way to get optimum results on educational improvement. Actions for higher standards of education were also taken by the central government so that citizens will get quality education in subsidized prices.
The central government efforts for the improvement of educational standard in order to improve the local economy as the education improvement lead to higher standard of living which in turn increases economic activity. The central government is focusing on the primary and secondary education of rural area citizens. More specifically the government intends to provide the subsidized basic education to rural population. The central government consistently invests large funds on the educational improvement annually.
Opportunities for organization:
The independent international organization has researched that 66% of the Chinese children are lived in the rural areas. The company also studied that the 200 million children have low standard of living as compared to urban children. The central government is investing higher funds on urban student as compared to rural students which resulted in college drop outs.
Teach for China has the opportunity to increase its market share by providing services to the less benefited children. The gap between the standard of urban and rural student provides the firm the opportunity to support the rural student and increase their business. Although the company has objective for profit maximization however,the company has the mission to spend quality education across china. (Austin, 2006)...................
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