FURNITURE BANK

Furniture Bank Business Case

Furniture Bank Business Case

Introduction

The year 2007 brought new opportunities of growth for Furniture Bank, a non-profit organization catering the furniture and household goods needs of less privileged Torontonians since 1998. However, the organization encountered several financial and operation management problems in the past couple of years (Fraser, Farmer & Salamat 2010, p.4). In fact, such a phenomenon is common to almost any start up charity based institution. Sixty percent (60%) of all non-profits fail within the first ten years (Jegers 2010, p. 407).

In this report, I present the different ideas discussed so far about expanding our operations and growing our presence across many regions. In doing so, I review the operational capabilities of the company by carrying out the strengths, weaknesses, opportunities and threats (SWOT) analysis for organizational structure, its facilities and technologies, its financial resources, and its fund raising processes. Following the analyses, I weigh the different ideas and recommend how we can materialize those ideas.

Idea 1: Acquiring New Trucks

Furniture Bank should use its funds in acquiring new trucks since the trucks in use are under 90% capacity and have also worn out. Therefore, FB must seriously consider the option of getting discounted GM Diesel trucks to ensure that it has the necessary transport to get in more donations on time. Also, it is expected that the two trucks will be able to fetch in $127000 in revenues (Fraser, Farmer & Salamat 2010, p.5). That would be a great help for the company's cash flows.

Idea 2: Pacifying the Fundraising Activities

The Furniture Bank receives the majority of its revenue through in-kind contributions of furniture. In 2007 their total revenue was $711,166 and a substantial portion of this amount game from grants from foundations. The organization was able to arrive at good cash surpluses. What this demonstrates is that the Furniture Bank is reasonably close to being self-sustaining. The management and the board are open and pro-active in looking for growth and new income producing options. Fundraising activities are the primary source of revenue for Furniture Bank. In 2007, the grant was $240000, while in 2008 it was $198000 (Fraser, Farmer & Salamat 2010, p.11). In order to thrive well, the organization needs to explore more avenues for fundraising. It may use social networking platforms to solicit funds and furniture. The recommendation also suggests that the feasibility study for the expanded business looks at office furniture. This could open up a new revenue source from small businesses and non-profits plus the added benefit of exposing the Furniture Bank to more corporations and thus increasing the awareness of the mission (Kong 2008, p.299).

Idea 3: Taking Help of Information and Communication Technologies

Furniture bank must conduct an analysis of the operating practices that are dependent upon the use of technology. The inadequate and inefficient call center should be replaced with an inexpensive, but technologically modern CRM system. An operations review may identify other processes and systems that could be more ...