MGT503 GDB 2 Spring 2011 idea SOLUTION

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[B]Strategy for non-profit organizations:
Alert! Do knot copy paste as it is, just take your idea and make your GDB yourself or
you will get 0 marks then do not complaint me, please
And you have to write this not more then 300 words
Applying ideas about strategy to the not-for-profit world, which were created in the for
profit world, needs to be done carefully. Clear difference in these types of organizations
exist, one signefficient difference between for-profit and non-for-profit entities is how
they each determine there effectiveness, While a wide variety of perspectives exist
on nonprofit effectiveness, and it has been well argued that effectiveness is “socially
constructed” (Herman & Renz, 1997, 1998, 1999), nonprofit effectiveness is often
thought of in terms of mission (Sheehan, 1996) while for-profit effectiveness often
focuses on “profit” and/or shareholder value (Smith, 1999 & 2004).

So, while for-profits may be mostly focused on ways to “outperform rivals” (Porter,
1996, p. 62), not-for-profits can be thought of as focused on “mission accomplishment”
(Sheehan, 1996). While there may be exceptions when a competitive mind-set is
appropriate for a nonprofit to consider in developing strategy, most do not take this
approach. In utilizing strategy concepts in nonprofit organizations, most practitioners,
consultants, and authors use various strategy tools – while purging the ideas of
“outperforming rivals,” growing shareholder value, and competition – from the process.
But if, those competitive drivers are purged, what is used as a replacement?
This paper argues that the replacement “driver” for competition in nonprofit
organizations should be a new concept called “mission gap.” It is the foundational
concept of a new model of strategy, described in the next section, which truly captures
the essence of the difference between the for-profit and nonprofit sectors.[/B]