Case_10_United_Way_TN - Teaching Note Case 10 United Way...

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Teaching Note: Case 10 – United Way Case Objectives 1. To apply the concepts of strategic management to a non-profit organization. 2. To examine how the external and internal environment affects a non-profit business model given the current state of U.S. economic and philanthropic activity. 3. To discuss the many decisions and actions that a non-profit organization has to undertake to sustain a competitive advantage. 4. To evaluate the impact of negative publicity on a non-profit organization and the implications for strategic leadership in such a case. See the table below to determine where to use this case: Chapter Use Key Concepts Additional Readings or Exercises 1: Strategy Concept Strategic management; vision, mission, strategic objectives See NOTE, video interview with CEO Brian Gallagher 2: External Environment External environmental forces, Porter’s five forces model See NOTE additional information. Also see Porter’s 1996 HBR article “What is strategy?”, and Porter & Kramer’s 1999 HBR article “Philanthropy’s New Agenda: Creating Value” 3: Internal Analysis Value chain, resource-based VRIN analysis 4: Intellectual Assets Human capital; intellectual capital 5: Business- Level Strategy Generic strategies 9: Strategic Control Behavioral control; corporate governance See NOTE United Way ratings by watchdog groups 11: Strategic Leadership Leadership capabilities; ethical orientation Case Synopsis The United Way Case illustrates the problems that have been created due to a well- established business model, in a challenging environment, facing the possibility of declining growth, and competition from new directions, all under the threat of eroding trust. This case shows how a mature brand, with a powerful and mostly honorable history, can still stumble. Since the year 2000, United Way had seemingly reached a plateau of fundraising in the U.S. Certainly there were options for growth but charitable donations still had not topped the inflation-adjusted increases of the 1998-1999
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campaigns. In addition, veteran fund-raisers on all fronts were citing challenges such as competition for donations, difficulty recruiting and keeping volunteer staff, and a growing focus on large gifts from very wealthy individuals, which, when publicized, could reduce the motivation for smaller donors to contribute. The explosive growth of single-focus nonprofits since 9/11 meant more choices for donors who increasingly wanted a connection to a cause. Coupled with the well-publicized scandals in organizations such as the Nature Conservancy, Red Cross, and United Way of America itself, trust was eroded, legitimacy of mission was questioned, and governance issues were at the top of the to-do lists of nonprofit CEO’s. In this environment, Brian Gallagher, United Way of America CEO since 2002,
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This note was uploaded on 10/11/2011 for the course BUSINESS A 474 taught by Professor Thompson during the Spring '11 term at Ill. Chicago.

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Case_10_United_Way_TN - Teaching Note Case 10 United Way...

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