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MBA Strategic Management Module Nonprofit Organizations

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Question:

Discuss about the MBA Strategic Management Module Nonprofit organizations.
 
 

Answer:

Nonprofit organizations are always into competition for raising their funds and donations. However, on the similar note competitive forces cannot be used in organisations like the local governments. The can be discussed with each of the perspectives of Porter’s Five forces. In case of threat of new entrants, it can be said that a local self-government should not worry about the same. Local government being a public organisation and part of governmental initiative should not be worried with any new entrants. There is no chance that a new government can come into play are local governments are single and individually powerful. Threat of substitutes is the problem where it might be said that another government cannot substitute a government. Hence, in this regard a local government does not have any threat. The threat can be citizens who would want better work or care from the local governments. However, the organisation cannot be substituted by the power of citizens (Gordon 2013). Local governments need to prove their worth to the local residents so that the vote or the societal welfare is in the right hands. Bargaining power of customers is missing in case of local government. The prime reason being there is no pressure that can be created by customers. There is no unique service that can attract the market. In addition, it is notable that local government does not have customers but citizens. Bargaining power of suppliers can be one of the options that might be fruitful for a local government. However, in this case the upper hand is of the local government. The prime reason is any supplier would be interested is being attached to a government project. Hence, they would try to comply with the governmental endeavours (Kersting and Vetter 2013). This helps in retaining the image of the suppliers. Therefore, they hardly increase the price of supplies until and unless it is extremely needful. Finally, in case of industry rivalry there no organisation to oppose a government. The only competition that the government can have is the better work or welfare of other local governments of a nation. However, that is a comparison that can be drawn but there cannot be industry rivalry.

In the above perspectives, it can be said that local self governments need to work for the betterment or the welfare of the local inhabitants. However, the government is not into any fierce competition of attaining competitive advantage. Hence, the idea of five forces analysis cannot be implied to them. The only learning that the organisation can derive is the way different firms work to satisfy customers. Unique ideas like social networking sites or direct face-to-face conversation, feedback can act as the right drive to help the organisation serve people better. There is monetary transaction or profit maximization but the timely resolution of the grievances of the citizens would act as the driving force for the local government. Hence, some ideas could be beneficial through five forces.

 

References

Gordon, G.L., 2013. Strategic planning for local government. ICMA Publishing.

Kersting, N. and Vetter, A. eds., 2013. Reforming Local Government in Europe: Closing the gap between democracy and efficiency (Vol. 4). Springer Science & Business Media.

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