Financial control and control of working capital, Financial Management

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a) Sponsorship - refers to monetary gifts or donations in support of a business or an event venture in return for a dominant display of the sponsor's name. In this case, FC Barcelona is sponsoring Unicef, but their commercial return for doing so is not so clear.

Social values - the beliefs of a firm regarding what is ethically correct. FC Barcelona believes in giving back something to those less auspicious, i.e. young children in need. Moral and Social values can also refer to the social responsibility towards other stakeholders, such as employees. The values of the business are strongly linked to its organisational culture and will guide its behaviour.

b) There are numerous possible reasons for FC Barcelona choosing to sponsor a NPO such as Unicef. For example:
• FC Barcelona is simply hold to its social corporate responsibilities
• There may be indirect commercial benefits for FC Barcelona, such as a wider fan base and an improved corporate image
• The Club is following its morals, i.e. it is more than a football club (that seeks to make money)

c) Although commercial marketing strategies have long been used by businesses that aim to make the most of profits, NPOs have also increasingly used marketing to improve their finances. Students are apt to discuss a range of marketing strategies used by NPOs, such as;

• Social marketing
• Sponsorship deals
• Slogans (catchphrases) and logos
• Public relations
• De-marketing

Such marketing strategies, and others that the student might believe, are used with the aim of achieving organisational objectives. However, it is unlikely that marketing strategies alone will truly enhance the effectiveness and efficiency of NPOs. Financial control, such as the control of working capital, will also be critical to the performance and survival of NPOs.


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