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A three-step process for nonprofit organizations to prioritize market segments based on their vulnerability to changes in direct beneficiaries, other beneficiaries, organizations, inputs & labor, political & social, and environmental components. A template for assessing the urgency and impact of market changes on organizational sustainability, and determining areas of focus based on the total score of each component.
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Step 1: Program Specific Considerations
The screen encompasses an evaluation of the organization as a whole, but different programs may react differently to market changes. Are there particular programs that are currently more vulnerable to market changes in one or more of these five areas?
Market Component
Vulnerable Program(s)
Direct Beneficiaries
Other Beneficiaries
Other Organizations
Inputs & Labor Market
Political & Social Environment
Nonprofit Sustainability Cohort Page 2 of 2 2019
Step 2: Assessing Urgency & Impact
With specific programs and external dynamics in mind, ask two key questions to prioritize which market aspects are currently impacting their organization’s business model most:
To conduct this prioritization activity, rate the speed at which individual components are changing and the significance with which each impacts the organization on a scale of 1 (low) to 5 (high).
Market Component
How quickly is the market changing?
How significantly would a change impact the organization’s sustainability?
Total
Direct Beneficiaries
Other Beneficiaries
Other Organizations
Inputs & Labor Market
Political & Social Environment
Step 3: Determining Areas of Focus
By totaling the two numbers, determine which segments of the market are most volatile. Using a table to summarize this analysis, and a color-coding scheme described below, you’ll create a visual representation of the volatility or placidity of your market.