Strategic Management for Nonprofit Organizations Theory and Cases

by Oster, Sharon M.

• ISBN13: 9780195085037
• ISBN10: 0195085035
• Format: Hardcover
• Copyright: 1995-05-11
• Publisher: Oxford University Press

Summary

Nonprofit organizations in the U.S. earn more than $100 billion annually, and number over a million different organizations. They face increasing competition for donor's dollars and many of the issues they confront are similar to those confronted by for-profit organizations. Strategic Management for Nonprofit Organizations applies powerful concepts of strategic management developed originally in the for-profit sector to the management of nonprofits. It describes the preparation of a strategic plan consistent with the resources available; it analyzes the operational tasks in executing the plan; and describes the ways in which nonprofits need to change in order to remain competitive. The book draws clear distinctions between the different challenges encountered by nonprofits operating in different industries.

Author Biography

Sharon M. Oster is Associate Dean and Frederic D. Wolfe Professor of Management and Entrepreneurship at the Yale School of Management and Organization, where she was named best instructor in a 1994 Business Week survey of business schools. She is the author of Modern Competitive Analysis, Second Edition (Oxford, 1994) and writes widely in the areas of industrial organization and competitive strategy.

Table of Contents

Introduction	3	(14)
The Emergence of Nonprofits	4	(1)
A Look at the Field Today	4	(4)
A Look at Diversity in the Nonprofit Sector	8	(2)
Internal Revenue Service Distinctions	10	(1)
The Management Process: A Road Map of the Book	11	(6)
The Mission of the Nonprofit Organization	17	(12)
Why Do we have Nonprofits?	17	(5)
The Role of the Mission Statement	22	(2)
The Process of Mission-Setting	24	(3)
How Broad or Narrow Should the Mission Statement Be?	27	(1)
Conclusion	28	(1)
Structural Analysis of a Nonprofit Industry	29	(18)
Competitive Analysis for the Nonprofit: The Industry Level	29	(1)
Market Definition	30	(1)
Description of Current Industry Participants	31	(1)
Entry Conditions	32	(4)
Competition from Substitute Products	36	(1)
The Demand Side	37	(1)
Users	38	(2)
Donor Power	40	(1)
Supply	40	(2)
Industry Structure: Sources of Advantage	42	(3)
Summary	45	(2)
Competition and Cooperation Among Nonprofits	47	(18)
Game Theory	48	(2)
Simultaneous versus Sequential Games	50	(7)
Cooperation among Nonprofits: Beyond Games	57	(3)
Strategies for Cooperation	60	(1)
Competing with For-Profit Organizations and Public Agencies	61	(2)
A Few Thoughts on the Balance Between Competition and Cooperation	63	(2)
Human Resource Management	65	(10)
Attracting and Motivating Staff	65	(4)
Centralization versus Decentralization	69	(4)
Managing Volunteers	73	(1)
Conclusion	74	(1)
The Nonprofit Board of Directors	75	(12)
A Review of the Stylized Facts About Nonprofits	75	(1)
Function of the Board: The Theory	76	(4)
Functions of the Board: In Practice	80	(3)
Increasing Board Effectiveness	83	(2)
Conclusion	85	(2)
Product Mix and Pricing	87	(20)
Why Broaden the Product Portfolio?	87	(5)
The Product Portfolio: Balancing Ventures	92	(1)
Combining for Profit and Nonprofit Ventures	93	(1)
Tax Issues	94	(2)
Strategic Management Issues	96	(2)
Pricing in the Nonprofit World	98	(4)
Pricing in the Nonprofit Sector: How Much Do We Charge?	102	(3)
Conclusion	105	(2)
Fundraising for Nonprofits	107	(16)
Charitable Contributions: Magnitude and Sources	107	(4)
The Optimal Level of Fundraising Effort	111	(3)
Determinants of Giving: The Individual Level	114	(4)
Corporate Giving: Trends and Determinants	118	(1)
Cooperation versus Competition in Fundraising	119	(2)
Conclusion	121	(2)
Managerial Control	123	(16)
Why do we have Financial Reports?	123	(4)
The Budget Process	127	(5)
Problems of Inadequate Budget Control: Using Variance Analysis	132	(6)
Conclusions	138	(1)
Program Evaluation	139	(10)
Effectiveness versus Efficiency: A Few Definitions	140	(1)
For Whom are we Evaluating Programs?	141	(2)
The Mechanics of Program Evaluation	143	(3)
Concluding Thoughts on Performance Evaluations	146	(3)
Potential for Change	149	(8)
Adaptability of the Nonprofit	149	(2)
Sources of Change	151	(3)
Experiencing Change	154	(1)
Concluding Thoughts	155	(2)
Appendix: Guide to the Cases	157	(176)
A. People for the American Way	160	(16)
B. United Hmong Association	176	(21)
C. Public Broadcasting System	197	(21)
D. American Red Cross	218	(15)
E. The Good Faith Fund	233	(18)
F. Classical Jazz at Lincoln Center	251	(21)
G. The Future of Donor Choice at United Way	272	(15)
H. Guggenheim Museum	287	(23)
I. Leeway Inc.	310	(23)
Notes	333	(12)
Index	345