OGL 355 Leading Organizational Innovation

and Change:
Organizational Sector Environmental Analysis
Objectives:
1. Understand how different sectors have different influences and measures.
2. Complete Organizational Sector Environmental Analysis Table

1) Complete the Organizational Sector Environmental Analysis Table below

ROW BUSINESS/FOR-PROFIT NON-PROFIT/ CHARITY PUBLIC/

GOVERNME
NT
1.Sector Competition for sales, substitute Competition for donations, Competition for
budget, elected
Environment goods, short range view, rapid pace substitute services, medium officials, party
Aspects of change, high authority to change range view, moderate pace of politics, long range
view, slow pace of
things, proactive decision-making change, limited authority to change, very low
authority change things, decentralized authority to change
things, external
decision- making reactive decision-
making

2. Team Name Team: CIA Agents Team: Detailed Devils N/A

and Org Name
Organization: Organization:
Reviewed for
Ideas Only Scrub Daddy Make-A-Wish Foundation

3.List Sector N/A

● Competition for Sales ● Competition for
Aspect
Matches from donations
Row 1-no ● Substitute goods
● Medium range view
support
needed ● Rapid pace of change
● Decentralized decision-
● Proactive decision-making making
authority
● Limited authority to
change things

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4. List Sector
● Short range view
Aspect Non-
Matches from
● High authority to change things
Row 1-no
support
needed
5. What is the ● Expansion of audiences is the
biggest biggest external influence for
external this sector and is being widely
influence on available Globally. When
typical products are not widely
available there is potential to
organizations
miss demographics. According
in each sector?
to the “CIA Agents” Team, this
Why? would present an opportunity
for expansion into international
markets, to reach a bigger
demographic which would
increase sales and target
market.(Use of Return on
Investment (ROI) to Assess the
Performance of Organizations,
n.d.)
6. What is the ● The biggest outcome strategy
biggest for this sector would be profit.
outcome This is because companies in
typical this sector compete for the
highest profit. “CIA Agents”
organizations
Team references how this
strive for in
would help expand the target
each sector? market, therefore increasing
Why? brand loyalty.(Use of Return on
Investment (ROI) to Assess the
Performance of Organizations,
n.d.)
● Substitute services N/A
● Moderate pace of change
● The biggest external N/A
influence on typical
organizations for the
sector is new donors.
Without donors
nonprofits cannot
function because they
depend on donors to
invest in their mission to
make a difference in the
world. It would ensure
positive outcomes
(Ibrisevic, 2023).
● The biggest outcome N/A
strategy typical NPO
organizations strive for in
this sector is to serve the
community with no
intention of earning a
profit (Coulter, 2013,
p.224). The reason for
this is to ultimately make
a social impact and
positive change to foster
a better world.
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7. What is the ● The biggest environmental
biggest threat in this sector would be
environmental competition because according
(external) to the “CIA Agents” Team,
competitors in this market rely
threat on
on innovative strategies,
typical
techniques in marketing, and
organizations promotional campaigns to
in each sector highlight new features or
above? Why? applications within their
existing product lines in order
to remain competitive.(Use of
Return on Investment (ROI) to
Assess the Performance of
Organizations, n.d.)
8. What is the ● The most common performance
most common measure in typical
performance organizations is Return on
measure Investment (ROI). According to
MBA Knowledge Base, 2021,
typical
ROI is a very popular ratio used
organizations
in the general assessment of a
in the sector company’s performance which
use? Why? itself is a profitability ratio in
order to calculate which
investments they should
concentrate on. This is because
For-profit organizations aim to
provide a return on investment
to their stakeholders, including
shareholders, investors, and
owners. Profitability allows
businesses to reward
shareholders through dividends,
increase share value, or attract
new investors by demonstrating
a track record of financial
success.
● The biggest N/A
environmental threat in
this sector would be the
economic climate.
Economic downturns and
recessions can have a
profound impact on the
financial health of
nonprofits. During
challenging economic
times, individuals and
businesses may reduce
their giving, resulting in
reduced funding for
nonprofits. Economic
factors beyond the
organization's control can
pose a significant threat
to its financial stability.
(Inflation in the U.S.,
2023)
● One of the most common N/A
performance measures in
typical organizations is
Donor Retention Rate.
This is because according
to DonorBox.com,
recurring donors are very
valuable to nonprofits.
Gaining new
relationships is always
more costly than
cultivating existing ones,
(Ibrisevic, 2022).
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 References

Ibrisevic, I. (2022, August 8). 20 KPIs For Nonprofits To Track - Key Performance Indicators.

Donorbox. https://donorbox.org/nonprofit-blog/kpis-for-your-nonprofit

Ibrisevic, I. (2023). 7 Key Characteristics of a Successful Nonprofit Organizations.

Donorbox. https://donorbox.org/nonprofit-blog/characteristics-of-a-successful-nonprofit

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Statista. (2023, June 21). Inflation in the U.S. - statistics & facts.

https://www.statista.com/topics/774/inflation/#topicOverview

MBA Knowledge Base. (n.d.). Use of Return on Investment (ROI) to Assess the

Performance of Organizations. https://www.mbaknol.com/financial-management/use-of-

return-on-investment-roi-to-assess-the-performance-of-organizations/

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