Managing the Double Bottom Line

Page 88

EXHIBIT 4A: STRATEGIC FRAMEWORKS PRESENTED

IN

MANUAL

The Firm

Chapter

Frequency

The Environment

Chapter Frequency

Strengths & Weaknesses

4

Annually

Opportunities & Threats 4

Annually

Cost Structure

5,6,7,8

Continually

Five Forces (Porter)

Customers

3

Continually

Industry

4

Annually

Competitors

4

Annually

Once thoroughly during market research (prior to program); as needed thereafter

4

Analyze the Social Enterprise

BUSINESS ASSESSMENT: STRENGTHS

AND

WEAKNESSES

Rationale: In this section you will analyze the strengths and weaknesses of your social enterprise as they relate to the ability to carry out enterprise objectives. Understanding your enterprise is an invaluable exercise that also has strategic implications for how you will build and operate your business. For example, if you discover that your product is recognized for its high quality but your operating efficiencies are low, you might either focus on a strategy for improving your production and delivery methods to lower your costs or employ a marketing strategy to strengthen your brand and sell high-quality products at a premium price. Definition of Strengths and Weaknesses A Weakness Can Also Be a Strength and Vice Versa

The TARTINA plant and administrative offices are located in Colline, a rural community on a steep incline about two hours from TARTINA’s primary market in Port-au-Prince. This location is a weakness in terms of the distance employees must travel to distribute or service their products and the poor roads and communications. On the other hand, Colline is home to the microentrepreneurs who produce TARTINA products, and the land, plant, and office facilities were provided free by Save the Children’s implementing partner, ADE. Operating and production costs are also cheaper in Colline than in Port-au-Prince. Therefore, the advantages of TARTINA’s location to some extent offset the cost and inconvenience resulting from poor infrastructure and the distance from the primary market.

Strengths are internal conditions—skills, aptitudes, and aspects—that enable your social enterprise to effectively deliver products or services based on your customers’ needs. Strengths enable your social enterprise to distinguish itself from its competitors as well as block their attempts to imitate your products or services. Examples of strengths include skilled staff, a good reputation, and ample resources. Weaknesses are internal conditions that can lead to poor performance. Examples of weaknesses are obsolete technology or equipment, poor quality control, and weak managerial skills.

You must weigh strengths against weaknesses to determine their relative benefit or detriment.

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Managing the Double Bottom Line:

Copyright ©2000 Sutia Kim Alter. This work is licensed under the Creative Commons Attribution-Share Alike 3.0 License (http://creativecommons.org/licenses/by-sa/3.0/)


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