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UNITED WAY OF AMERICA.
Term Paper ID:29731
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Essay Subject:
Strategic analysis of the non-profit organization.... More...
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9 Pages / 2025 Words
12 sources, 14 Citations,
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Paper Abstract:
Strategic analysis of the non-profit organization. United Way of America as an umbrella organization that provides guidance and authorization to local and regional organizations. External environment of functioning including law, politics, social structure, economics and technology. Porter's Five-Force model to assess competition. Strengths and weaknesses. Core competencies.
Paper Introduction:
STRATEGIC ANALYSIS: UNITED WAY OF AMERICA
Introduction
This research performs a strategic analysis on the United Way of America organization. United Way of America is a non-profit umbrella organization that provides guidance and authorization to local and regional United Way organizations (United Way of America, 4).
This research develops the strategic analysis of United Way of America through a focus on four foci of organizational analysis. The focus areas are (1) environmental analysis, (2) Porter’s (139) Five-Forces Model, (3) strategic strengths and weaknesses, and (4) core competencies.
Environmental Analysis
Environmental analyses performed by organizations concern the external
Text of the Paper:
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Competitive Strategy 4th ed. An important core competency of the United Way of America is the skillto raise funds for charitable purposes. The barriers continue toexist; however, there are now conservative religious organizations andconservative political organizations able to challenge the United Way.Buyers The buyers for the United Way are the local organizations that look tothe United Way for funding. A complementary core competency isthe ability to develop and maintain public trust in the organization.Integrity is one element required in building public trust, but anothercore competency of the organization - administrative expertise - is equallyimportant (Bartling 56). E. Subsequently, the surge slowed to a trickle. Rivalry among existing competitors can become intense as eachcompetitor attempts to improve its position relative to rivals by using useof price competition, advertising, product introductions, and increasedcustomer service (Slater and Olson 15).New Entrants For decades, the United Way functioned somewhat in the manner of amonopolist in its focus on generating and dispensing funds for local-basedcharitable organizations. All charitable organizations must prepare toride out the economic slowdown.Technology Technology affects charitable organizations as it affects most otherorganizations. The same public relations firm and the sameindignant denials and excuses surfaced once again under the auspices of theUnited Way of America (Mundy 26). Association Management 51 (November 1999): 55-61.Drogan, W. "Keeping Your Core Competencies Covered". The focus areasare (1) environmental analysis, (2) Porter's (139) Five-Forces Model, (3)strategic strengths and weaknesses, and (4) core competencies. "A Fresh Look at Industry and Market Analysis". For the most part, the power in thisrelationship lies with the United Way. The Internet, as an example, provides the United Way withanother means of reaching donors. Environmental Analysis Environmental analyses performed by organizations concern the externalenvironment within which an organization must function. M. Important elementsof an organization's external environment are (1) law, (2) politics, (3)social structure, (4) economics, and (5) technology (Slevin and Covin 196-197).Law Legal developments hold the potential to affect the functioning of theUnited Way. Currently, the United Way is experiencing problemsin a difficult period beset with social, political, and economic problems.The organization, however, appears to have the strengths required to remaina viable charitable force. Works Cited"A Better Way to Make a Difference"? Journal of Management 23 (March- April 1997): 189-2 9.United Way of America. While recipient organizations did generate fundsfor themselves, most recognized the power and efficiency of centralizedfund raising. "The United Way System". M. G. Association Management (July 2 1)" 6-8.Kearns, K. "The Strategic Management of Accountability in Nonprofit Organizations: An Analytical Framework". Business Week (18 March 2 2): 66-67.Barman, E. Religious leaders founded the first United Way organization in Denverin 1887. P., and Covin, J. The organization must make optimal useof communications technology. Summary and Conclusion This research performed a strategic analysis on the United Way ofAmerica organization. Publiclaw, as an example, requires the United Way to eliminate bias from itsoperations, which means that it cannot fund organizations that functionwith biased polices toward some groups. Instead of collecting money and dispensing it to organizations who ask forit, Gallagher proposed that the United Way work directly to developsolutions to problems (e.g., poverty, crime, and so forth) and then toparticipate in the funding of those solutions. in September 2 1, the United Way experienced a surge incontributions. He is a man of ideas andexecutive competence, qualities that the United Way of America organizationrequires ("A Better Way to Make a Difference"? This approach, according toGallagher, will allow the organization to target its funds more effectively("A Better Way to Make a Difference"? A. In fact, however, the United Way collected only $3.9 billion(approximately $13 per person in the national population in 2 1) indonations in 2 1. The United Way and other charitableorganizations must continue to seek funds from a stingy population thatlooks in the mirror and sees nothing but generosity.Economics The decline in economic performance beginning in the United States inlate 2 and continues to persist in late 2 2 remains a threat to thestability of the United Way. Editor & Publisher (28 January 2 2): 26-27.Porter, M. Barriers to entry into charitable fund raising have never been highfor small organizations. United Way of America is a non-profit umbrellaorganization that provides guidance and authorization to local and regionalUnited Way organizations (United Way of America, 4). Such organizations did emerge, however, and now the UnitedWay must deal with these rivals (Barman 1193). New York: The Free Press, 1995.Slater, S. strategic analysis: united way of america Introduction This research performs a strategic analysis on the United Way ofAmerica organization. Vital Speeches 68 (1 May 2 2): 44 -443.Mundy, A. Social Forces 8 (June 2 2): 1191- 1212.Bartling, C. The United Way continues to hold theadvantage in this rivalry. Faith-based service programshold the potential to undermine the fund-raising efforts of the United Way,as some donors will assume that government funding is available to providefor the needs of charitable organizations.Politics Political actions also create problems for the United Way. Strategic Strengths and Weaknesses The assessment of an organization's strengths and weaknessesfrequently occurs within the context of a SWOT (strengths-weaknesses-opportunities-threats) analysis that considers (1) internal strengths andweaknesses and (2) external opportunities and threats. Core competencies tend to vary by bothindustry and by organizational function. Similarly, for manycharitable organizations that depend on the United Way for funding, thereare no viable substitutes.Suppliers In the aftermath of the terrorist attacks in New York and Washington,D.C. Direct linksfrequently exist between an organization's internal strengths andweaknesses and its external opportunities and threats (Weirauch 22-23).Strengths An important internal strength of the United Way of Americaorganization is its new chief executive, Brian Gallagher, who assumedoffice in January 2 2. "CMAI Performs Petrochemical Industry SWOT Analysis". 67). This amount of money is small compared to the un-servedsocial needs in the United States. He wants to transform theorganization from a "simple collector and dispenser of cash into acommunity problem-solver" ("A Better Way to Make a Difference"? The Bush Administration has been unsuccessful in persuadingthe Congress to approve faith-based social service initiatives.Nevertheless, the Administration proceeded to implement some faith-basedprograms in the absence of implementing law. In early 2 2, however, insiders at the UnitedWay provided information to national newspapers indicating the re-emergenceof problems similar to those of the early-199 s. The center of the morerecent problems was the National Chapter of the United Way organization inthe Washington, D.C. Following the forced resignation of the organization's presidentand other members of United Way of America, the organization regained(gradually) the trust of the public upon which United Way of Americadepends for the bulk of its financial support (Kearns 187). F., and Olson, E. E. com/unitedway/home/Weirauch, W. Thesefive factors are (1) the threat of new entrants, (2) the bargaining powerof buyers, (3) the threat of substitute products, (4) the bargaining powerof suppliers, and (5) the intensity of rivalry among the players in theindustry. "The Psychology of Asking and Giving". Theorganization's longevity and its success (the organization raised $3.9billion in 2 1) over the years is an important strength of the United Wayof America.Weaknesses The embezzlement scandal that rocked the United Way of Americaorganization in the early-199 s threatened the future of United Way ofAmerica. 67).Threats A major threat to the United Way of America organization stems from anapparent on-going weakness in the organization related to effectivefinancial controls. 67). For years, the entry into charitable fund raising by anotherorganization with similar capacities to those of the United Way appeared tobe unlikely. Porter's Five-Force Model Porter's (139) Five-Forces Model assesses the competitive structure ofan industry or an organization within the context of five factors. 66). "The Pack Rat". P. Some organizations, such as the BoyScouts of American, can afford to go their own way.Substitute Products For people in real need, there are few substitutes for charity in acountry with a weak public service orientation. United Way of America Public Policy Advocacy Center (October, 2 2): 1-6. "Never Give Up! "Strategy Formation Patterns, Performance, and the Significance of Context". Over the years, many people supposed that financial integrity was nolonger at problem because of the new policies and controls implemented atthe United Way of America. The new weakness in the organization maybe more serious than the one exposed in the early-199 s because it providesan indication that the United Way of America organization did not learn thelessons of the past.Opportunities Brian Gallagher, the new chief executive at United Way of America,sees and opportunity for the organization to better pursue its missionthrough the transformation of its strategies. This research develops the strategic analysis of United Way of Americathrough a focus on four foci of organizational analysis. Retrieved from the Internet on 2 2-1 -3 at: http://capwiz. "Asserting Difference: The Strategic Response of Nonprofit Organizations to Competition". Business Horizons 45 (January-February 2 2): 15-22.Slevin, D. Variations in core competenciesby industry, however, may not exist in relation to all organizationalfunctions (Drogan 6-7). Hydrocarbon Processing (May 2 1): 21-24. Other communities subsequently founded United Way organizations.Twelve of these local United Way organizations created the national UnitedWay Organization in 1918 ("A Better Way to Make a Difference"? In response, conservativepoliticians exhibit public fits of apoplexy and encourage the public toretaliate against the United Way by withholding donations to theorganization.Social Structure The United States views itself in a corporate sense as a generousnation. Gallagher was highly successful in a similarposition in the United Way of Central Ohio. Public Relations Since 9/11". A case in point is the UnitedWay's denial of funding for the Boy Scouts of America because thatorganization discriminates against homosexuals. Public Administration Review 54 (March-April 1994): 185-192.Marks, B. Without public trust, theUnited Way of America cannot count on the public financial support that isessential to the organization's capacity to fulfill its mission. Thesuppliers (in the case of United Way and its rival organizations, donors)hold the power over charitable organizations.Rivalry Rivalry among charitable organizations is increasing as donationsshrink in proportion to needs. As the strength and competence of the United Waygrew, however, barriers to entry became higher for organizations that hopeto challenge the dominance of the United Way. area. Core Competencies Core competencies are tasks, skills, and operations at which anorganization excels, or is competent, or which an organization must developif it hopes to become successful. In the midstof a recession, the United Way and other charitable organizations arecompeting for a shrunken pool of charitable funds (Marks 441). The re-appearance of charges of serious financialmalfeasance following an earlier scandal posed a serious potential threatto public trust in the United Way of America.
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