Chapter 6

Question 1

mission

Answer 1

defines purpose or reason for existence

Question 2

vision

Answer 2

a forward thinking statement that defines what a company wants to become and where it is going

Question 3

harvesting

Answer 3

strategy that reflects a reduced commitment to a particular market given its perceived weak future growth or profitability

Question 4

SWOT

Answer 4

stands for strengths weaknesses opportunities and threats
competitive SWOT to size up competition
company SWOT to define company strengths etc.

Question 5

PESTEL

Answer 5

guides us in developing an understanding of the micro economic environment - political economic societal technological environmental legal

Question 6

porters five forces

Answer 6

guides us in understanding the dynamics of the industry within which we compete

1. intensity of rivalry in industry
2. threat of new entrants into the industry
3. threat of new product/service substitutes within the industry
4. power or control of suppliers within the industry
5. power or control of buyers within the industry

Question 7

types of competition

Answer 7

guides us in understanding the nature of the industry's competitors landscape:
perfect competition
monopolistic competition
oligopoly
monopoly

Question 8

3C analysis

Answer 8

an assessment of our competencies, capability and capacity with respect to the resources that we possess

Question 9

stages of strategic planning

Answer 9

revisiting our purpose
I/E analysis
our view of our world
strategic choices
strategy implementation

Question 10

corporate level strategy

Answer 10

defines what the organization intends to accomplish and where it plans to compete

Question 11

business level strategy

Answer 11

outlines specific objectives the organization hopes to achieve for each of its identified business initiatives/business units

Question 12

operating plan

Answer 12

a detailed immediate-term set of objectives and corresponding tactics designed to achieve a specific business initiative

Question 13

operating plan formulation: fundamentals

Answer 13

1. staffing, infrastructure, and process realignment requirements
2. market opportunity identification
3. value proposition and positioning analysis
4. revenue driver identification and sales forecasts
5. upfront and ongoing cost commitment requirements

Question 14

directional lock-in

Answer 14

the level of financial and operational commitment an organization incurs as a result of implementing the organizations strategy

Question 15

vitality

Answer 15

refers to the ability of the NFP to grow and sustain its membership base and donor base

Question 16

collective entrepreneurship

Answer 16

ensures that the involvement of the community where an organization is located and the population that it serves are reflected in the formulation and implementation of its strategy

Question 17

rootedness

Answer 17

refers to the extent to which the nFP is interwoven into the fabric of the community that it serves and is supported by a broad representation of its organizations, business, and citizens