OGL 355 Leading Organizational

Innovation and Change:

Environmental Analysis
Objectives:
1. Perform an industry analysis on your Case Study Organization using Porter’s Five Forces
Industry Analysis.
2. Identify the target market for Case Study Organization and strategies to maintain the audience.

Complete the following and turn it in as a team assignment. There is no need to create any other
document, just complete this one, save as, and post it for your team. Everyone earns the same
grade unless consequences of non-participation are enacted (see Worksheet 1b, #2). Make sure to
support your ideas and cite from the textbook and other course materials per APA guidelines.

1a) What is a Porter's Five Forces Industry Analysis?

a. A Porter’s Five Forces industry analysis is an assessment of competition within a
market utilizing 5 guiding principles. According to Michael Porter, “It is a holistic
way of looking at any industry and understanding the structural underlying driver
of profitability and competence” (Harvard Business Review, 2008). A five force
analysis allows us to assess the opportunities, threats, and changes within the
industry so that we can create a strategy to implement based on the desired plan
for our business. Once the plan is in place you can check and adjust the analysis
based on the business cycle. Porter’s Five Forces Industry Analysis can be
applied to any business in any industry.

1b) How would the team implement Porter's Five Forces Industry Analysis?
a. The best way to implement Porter's Five Forces Industry Analysis is to begin with
rivalry among existing competitors. We can also look at the threat of new entrants
into our market who may take our profits. We can then assess the threat of
substitutes products or services in our industry to identify companies that can
mimic what we are doing. Next, we would analyze the bargaining power of our
suppliers to assess the profitability of our product. Finally we look at the
bargaining power of the buyers or consumers and can assess our profit margins.
Good industry analysis looks rigorously at the structural underpinnings of
profitability (Porter, 2008).

2) Indicate the threat level of new entrants within your organization’s industry.
a. Threat Level of New Entrants
● Low - organizations coming in with the same resources and partnerships.

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 ● High - government giving more benefits for veterans.

b. List 3 reasons why using sourced material for at least 1 of them to earn excellent.
i. If Veteran affairs work to give more benefits, that can take away from the
organization's charitable background of how to help (Korb & Toofan,
2021).
ii. The number of programs and specializations would be too high for new
entrants to join the competition.
iii. Gathering the needed support from bigger partners would be difficult for
new entrants.

3) Indicate the bargaining power level of buyers within your organization's industry.
Bargaining Power Level of buyers
● Low - donations of funds and resources are higher.
● High - Limited availability of resources or funds donated.

List 3 reasons why using sourced material for at least 1 of them to earn excellent.
a. Equipment and resources necessary for programs are unavailable due to high cost
or delivery dates (rental properties).
b. Substitutions of services requested are not available (mental health providers).
c. Industry resource providers can raise prices or reduce the number of services or
quality provided (Coulter, 2013).

4) Indicate the bargaining power level of suppliers within your organization's industry.
For a non-profit organization, it is a matter of who uses the organization depending on the
availability of programs that can support the veteran’s needs.
● Low - all programs available for veteran’s needs.
● High - programs offered are inadequate for veteran’s needs.

b. List 3 reasons why using sourced material for at least 1 of them to earn excellent.
a. The number of other non-profit organizations that offer similar programs.
b. The loss of trust in the organization because of the previous scandal.
c. According to the text, consumers will have bargaining power if the products are
standard or undifferentiated (Coulter, 2013).

5) Indicate the threat level of substitute products within your organization's industry
based on the identified buyers in #3. Provide reasoning to your selection.
a. Threat Level of Substitute Products
● Low
● High - We will assess through the lens of competing needs, vs. competing
products with the buyer being the donor, since without the donor, the
organization could not exist.

b. List 3 reasons why using sourced material for at least 1 of them to earn excellent.

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 i. The donor has a higher amount of choices now through their workplace
with the record number of programs for corporate giving and vast
selections being curated for them for corporate matches.
ii. Charitable giving trend is tied to the stock market traditionally at ⅓ of the
rate of the stock market growth. With the current financial market
slowing, we can expect donors to put their money in other places.
(Association of Fundraising Professionals 2022, July 12)
iii. Current world events are amplifying other causes that may attract a
donor’s attention

6) Indicate the threat level of industry rivalry within your organization's industry.
Provide reasoning to your selection.
a. Threat Level of Industry Rivalry
● Low
● High - Examples of organizations contributing to industry rivalry are
Disabled American Veterans, USO Inc, VFW Magazine.

b. List 3 reasons why using sourced material for at least 1 of them to earn
excellent.
i. The Wounded Warriors strategically focuses on only serving veterans of
the current generation, but they do not solely own this approach that gains
attention more easily on the newly injured. The USO also serves current
servicemen and servicewomen of this generation and offers programs for
wounded veterans in 250 locations. This would potentially appeal to the
same donor.
ii. The large revenue flow of organizations like Wounded Warriors ($301M)
such as Disabled American Veterans ($136M,) The USO ($268M,) and
the VFW ($70M) are equally able to communicate and execute their
mission in large ways and thus generate a social return by bridging the gap
between the people championing change for the cause and the people
benefitting from the support, making the competition for mindshare in this
area of veteran care very high (Wounded warrior project - overview, news
& competitors - zoominfo Zoom Info. Retrieved October 30, 2022)
iii. The overall charitable giving trend that recently peaked during the
pandemic with the number of donors at 11% in 2021 has fallen by 5.6% in
2022, making the competition for donations very high.

7) Who is your target market for your selected Case Study Organization? Describe the
target in 3-5 sentences providing at least one sourced material to earn excellent.

The target market for The Wounded Warriors Project will be large corporations
and government contractors that are looking to invest while the market allows.
Corporations and government contractors would be those who can have an
attachment to the brand of Wounded Warrior and help advertise themselves.
While the stock market slows the organization has time to show their
effectiveness of increasing social value which will be more attractive to those that

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 are looking to benefit from charitable donations (Association of Fundraising
Professionals, 2022.). This will provide a competitive advantage for the
organization with the right donors on our side.

8) Identify at least 2 strategies to maintain the organization’s target market. Discuss in

at least 5 sentences and provide source material for both strategies to earn excellent.
a. Long-term strategy - After the fallout of 2016 where Wounded Warriors lost trust
of the public, the organization should continue to build on trust that has grown
with their new leadership by being mindful of public perception on costs incurred
for anything outside of warrior care. (After public crisis and public fall wounded
warrior gains ground, Military.com 2019) They should continue to use their
successful storytelling to illustrate success stories of warriors that have been
treated and have regained independence and security, and further expand on this
tactic by investing in social media channels that can reach the next generation of
donors. With twice as many over 60 year olds donating than 30 year olds, the
future of social value will be transferred to a younger generation and donor.
(Charitable Giving Generation Gap Age, The Guardian. com, September 2012)

b. Near-term strategy - By partnering with large companies that have the mutually
shared goal of building social value and public trust, and a low risk of defunding
their charitable donations in a high-inflation economy, Wounded Warriors can
ensure a profitable relationship that can endure at minimum the near term period
of greater national security focus by providing these companies a link to the social
value of the successful Warriors treatment programs. Government contractor
companies with the largest increase of sales year over year that should be targeted
are those in Electronic & Communication Services, Medical, and Industrial
Products & Services. Examples would be Lockheed Martin, Boeing, and
Moderna. (These are the Top 10 Government Contractors, Bloomberg
Government.com, July 2022)

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 References

Coulter, M. (2013). Strategic management in action (6th ed.). New York, NY: Pearson, Perusall
Version

Covid era fundraising stalls as donations soften and donors, retention rates fall in first quarter
2022. Association of Fundraising Professionals. (2022, July 12). Retrieved
October 30, 2022, from https://afpglobal.org/covid-era-fundraising-stalls-donations-
soften-and- donors- retention-rates-fall-first-quarter-2022

Harvard Business Review. (2008, June 30). The Five Competitive Forces That Shape Strategy
[Video]. YouTube. https://www.youtube.com/watch?v=mYF2_FBCvXw

Korb, L. Toofan, K. (2021, May 17). The Challenges Facing the Department of Veteran Affairs
in 2021. Center of American Progress. Retrieved October 30, 2022, from
https://www.americanprogress.org/article/challenges-facing-department-veterans-
affairs-2021/

Porter, M. E. (2008, January 1). The five competitive forces that shape strategy. Harvard
Business Review. Retrieved October 30, 2022, from
https://hbr.org/2008/01/the-five-competitive-forces-that-shape-strategy

USO, inc. (n.d.). USO. Retrieved October 30, 2022, from https://www.uso.org/programs

Seck, H. H. (2019, August 9). After public crisis and fall from Grace, Wounded Warrior Project
Quietly Regains Ground. Military.com. Retrieved October 31, 2022, from
https://www.military.com/daily-news/2019/08/09/after-public-crisis-and-
fall-grace- wounded-warrior-project-quietly-regains-ground.html

We serve injured post-9/11 American Veterans & Service members: WWP. Wounded Warrior
Project. (2022). Retrieved October 30, 2022, from
https://www.woundedwarriorproject.org/mission

Wilkins, C. (2021, May 10). Debunking the nonprofit Marketing & Communications Budget.
Vermilion Design + Digital. Retrieved October 31, 2022, from
https://vermilion.com/blog/debunking-nonprofit-marketing-
communications-budget/

Zoom Info Technologies. (n.d.). Wounded warrior project - overview, news &
competitors - zoominfo. Zoom Info. Retrieved October 30, 2022, from
https://www.zoominfo.com/c/wounded-warrior-project-inc/106709079