Note on the Financial Control Structure of Nonprofit Organizations SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Finance & Accounting
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Note on the Financial Control Structure of Nonprofit Organizations
Discusses several aspect of the formal control structure of nonprofit organizations, distinguishing among the responsibility center structure, the program structure, the information structure, and a variety of administrative factors and behavioral considerations including the importance of addressing cooperation and conflict in a bureaucracy.
Swot Analysis of "Note on the Financial Control Structure of Nonprofit Organizations" written by David W. Young includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Structure Nonprofit facing as an external strategic factors. Some of the topics covered in Note on the Financial Control Structure of Nonprofit Organizations case study are - Strategic Management Strategies, and Finance & Accounting.
Some of the macro environment factors that can be used to understand the Note on the Financial Control Structure of Nonprofit Organizations casestudy better are - – talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, increasing inequality as vast percentage of new income is going to the top 1%, supply chains are disrupted by pandemic , increasing energy prices, cloud computing is disrupting traditional business models, there is backlash against globalization,
increasing household debt because of falling income levels, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Note on the Financial Control Structure of Nonprofit Organizations
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Note on the Financial Control Structure of Nonprofit Organizations case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Structure Nonprofit, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Structure Nonprofit operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Note on the Financial Control Structure of Nonprofit Organizations can be done for the following purposes –
1. Strategic planning using facts provided in Note on the Financial Control Structure of Nonprofit Organizations case study
2. Improving business portfolio management of Structure Nonprofit
3. Assessing feasibility of the new initiative in Finance & Accounting field.
4. Making a Finance & Accounting topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Structure Nonprofit
Strengths Note on the Financial Control Structure of Nonprofit Organizations | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Structure Nonprofit in Note on the Financial Control Structure of Nonprofit Organizations Harvard Business Review case study are -
High brand equity
– Structure Nonprofit has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Structure Nonprofit to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Cross disciplinary teams
– Horizontal connected teams at the Structure Nonprofit are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Training and development
– Structure Nonprofit has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Note on the Financial Control Structure of Nonprofit Organizations Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Highly skilled collaborators
– Structure Nonprofit has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Note on the Financial Control Structure of Nonprofit Organizations HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Successful track record of launching new products
– Structure Nonprofit has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Structure Nonprofit has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Ability to lead change in Finance & Accounting field
– Structure Nonprofit is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Structure Nonprofit in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Structure Nonprofit is present in almost all the verticals within the industry. This has provided firm in Note on the Financial Control Structure of Nonprofit Organizations case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Operational resilience
– The operational resilience strategy in the Note on the Financial Control Structure of Nonprofit Organizations Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Innovation driven organization
– Structure Nonprofit is one of the most innovative firm in sector. Manager in Note on the Financial Control Structure of Nonprofit Organizations Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to recruit top talent
– Structure Nonprofit is one of the leading recruiters in the industry. Managers in the Note on the Financial Control Structure of Nonprofit Organizations are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Strong track record of project management
– Structure Nonprofit is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Learning organization
- Structure Nonprofit is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Structure Nonprofit is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Note on the Financial Control Structure of Nonprofit Organizations Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses Note on the Financial Control Structure of Nonprofit Organizations | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Note on the Financial Control Structure of Nonprofit Organizations are -
Lack of clear differentiation of Structure Nonprofit products
– To increase the profitability and margins on the products, Structure Nonprofit needs to provide more differentiated products than what it is currently offering in the marketplace.
Interest costs
– Compare to the competition, Structure Nonprofit has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow decision making process
– As mentioned earlier in the report, Structure Nonprofit has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Structure Nonprofit even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
No frontier risks strategy
– After analyzing the HBR case study Note on the Financial Control Structure of Nonprofit Organizations, it seems that company is thinking about the frontier risks that can impact Finance & Accounting strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Slow to strategic competitive environment developments
– As Note on the Financial Control Structure of Nonprofit Organizations HBR case study mentions - Structure Nonprofit takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Structure Nonprofit is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Note on the Financial Control Structure of Nonprofit Organizations can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Note on the Financial Control Structure of Nonprofit Organizations, in the dynamic environment Structure Nonprofit has struggled to respond to the nimble upstart competition. Structure Nonprofit has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High bargaining power of channel partners
– Because of the regulatory requirements, David W. Young suggests that, Structure Nonprofit is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Structure Nonprofit supply chain. Even after few cautionary changes mentioned in the HBR case study - Note on the Financial Control Structure of Nonprofit Organizations, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Structure Nonprofit vulnerable to further global disruptions in South East Asia.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Note on the Financial Control Structure of Nonprofit Organizations HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Structure Nonprofit has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Structure Nonprofit, firm in the HBR case study Note on the Financial Control Structure of Nonprofit Organizations needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Note on the Financial Control Structure of Nonprofit Organizations | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Note on the Financial Control Structure of Nonprofit Organizations are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Structure Nonprofit in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Finance & Accounting segment, and it will provide faster access to the consumers.
Building a culture of innovation
– managers at Structure Nonprofit can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Finance & Accounting segment.
Learning at scale
– Online learning technologies has now opened space for Structure Nonprofit to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Structure Nonprofit can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Loyalty marketing
– Structure Nonprofit has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Better consumer reach
– The expansion of the 5G network will help Structure Nonprofit to increase its market reach. Structure Nonprofit will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Structure Nonprofit can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Structure Nonprofit is facing challenges because of the dominance of functional experts in the organization. Note on the Financial Control Structure of Nonprofit Organizations case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Using analytics as competitive advantage
– Structure Nonprofit has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Note on the Financial Control Structure of Nonprofit Organizations - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Structure Nonprofit to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Finance & Accounting industry, but it has also influenced the consumer preferences. Structure Nonprofit can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Structure Nonprofit has opened avenues for new revenue streams for the organization in the industry. This can help Structure Nonprofit to build a more holistic ecosystem as suggested in the Note on the Financial Control Structure of Nonprofit Organizations case study. Structure Nonprofit can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Manufacturing automation
– Structure Nonprofit can use the latest technology developments to improve its manufacturing and designing process in Finance & Accounting segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Developing new processes and practices
– Structure Nonprofit can develop new processes and procedures in Finance & Accounting industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Threats Note on the Financial Control Structure of Nonprofit Organizations External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Note on the Financial Control Structure of Nonprofit Organizations are -
Stagnating economy with rate increase
– Structure Nonprofit can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Increasing wage structure of Structure Nonprofit
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Structure Nonprofit.
Regulatory challenges
– Structure Nonprofit needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Finance & Accounting industry regulations.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Structure Nonprofit can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Note on the Financial Control Structure of Nonprofit Organizations .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Structure Nonprofit with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Structure Nonprofit needs to understand the core reasons impacting the Finance & Accounting industry. This will help it in building a better workplace.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Structure Nonprofit business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Finance & Accounting field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Structure Nonprofit can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Structure Nonprofit high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Structure Nonprofit in the Finance & Accounting sector and impact the bottomline of the organization.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Structure Nonprofit in the Finance & Accounting industry. The Finance & Accounting industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Environmental challenges
– Structure Nonprofit needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Structure Nonprofit can take advantage of this fund but it will also bring new competitors in the Finance & Accounting industry.
Shortening product life cycle
– it is one of the major threat that Structure Nonprofit is facing in Finance & Accounting sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Note on the Financial Control Structure of Nonprofit Organizations Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Note on the Financial Control Structure of Nonprofit Organizations needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Note on the Financial Control Structure of Nonprofit Organizations is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Note on the Financial Control Structure of Nonprofit Organizations is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Note on the Financial Control Structure of Nonprofit Organizations is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Structure Nonprofit needs to make to build a sustainable competitive advantage.
