Corprite Finance Of Np Street Papar Selling By Homeless From Non Profit Organization

5066 words - 20 pages

1. NOVY PROSTOR'S BACKGROUNDNovy Prostor is an organization helping people in need by letting them to sell their magazine called "Novy Prostor" on the streets. The agency was established in December 1999 in Prague, based on similar model of selling street papers called "The Big Issue", in London, the UK. The idea is to publish street papers, which are sold by homeless people and give them this way a chance to earn at least some money for living. Novy Prostor is non-profitable organization donated by government. The state grand is about 5 million a year, which is 20 per cent of the agency costs. Private sponsors donate other 0.20 per cent.The magazine had started monthly publishing and quickly became weekly magazine selling about 25 thousand issues. It is sold for 30 CZK, from which the vendor keeps 50 per cent for his own use.The magazine does not focus on any specific area. The agency pays for the articles to insure their quality. The articles are thematically very different for mass readers.The agency employs 7 permanent employees: two people in management, accountant, psychologist, and 3 other employees. Their job descriptions are not specifically defined. We can say that everyone does everything from organizing the street papers operations, printing and dealing with vendors to helping the vendors with their living issues. Their problems are basically basic needs: food, accommodation, cloths as well as alcoholism, psychological problems with being on the bottom of the society or helping them to enter the working society again, finding jobs and /or giving them reference, and support. The articles for the magazines are written by permanent staff as well as outsourced journalists.These days the agency employs about 160 vendors, who sell the magazine on the street of mainly Prague, but also other big cities: Plzen, Brno, Ostrava etc.This enables them to belong to a social group again and helps them to gain job experience necessary for being able to fit to the working society again.2. AGENCY'S CONFLICTSThere are several agency conflicts, which we have identified:A. Differences between Czech and English mentalityB. Government supportC. No brand awarenessD. High turnover of vendorsA. Differences between Czech and English mentalityThe agency Novy Prostor follows the London model of street papers "The Big Issue". In the UK the magazine is non-profitable organization, helping people in needs, mainly homeless. Their vendors sell the street papers, keeping half of the price of the issue for their needs. The agency supports their operation by placing commercial advertisements in the magazines. The UK organization does not have any government grand, but is sponsored by some private companies.Novy Prostor has tried the business model mentioned above. However, they have met with readers' negative attitude towards the commercial advertising in charity magazines. The readers did not like to support the magazines with commercials of large, well-known companies...

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