A Comprehensive Environmental Scanning for an Entrepreneurial Organization: The Divine Life Ventures - Term Paper Example

? Environmental Scan Brief Preface to the Company Background The paper will present a comprehensive environmental scanning for an entrepreneurial organization, The Divine Life Ventures (TDL Ventures). This organization is a non-profit based organization and is indulged in serving the physically disabled persons, especially those who are wither blind or low vision impaired. The organization aims to provide healthy and independent lifestyles to its clients by developing both mental and spiritual along with physical being. TDL Ventures work with the belief that it will open up both the clients’ minds and spirits and take them to new heights and thus will help them in reaching new success levels in any arena of their existences. Identification and Analyzing of External Environment Factors The most important external environmental factor of a non-profit organization can be identified through analyzing the issues directly related to the organizations’ operational efficiency in the particular industry. The first important factor affecting TDL Ventures is that of the financial issues. It is important to analyze whether the funds generated for accomplishing the organization’s goals are adequate or not. The essential task related to this factor is to satisfy the founder providing the money for the purpose. For mitigating the risk associated with this factor, TDL Ventures has overviewed and assessed costs associated with activities related towards delivery of services to the clients. On assessment of these issues, TDL Ventures can be stated to be in a position to carry the costs of its service within the non-profit social service industry in the US. The second most important external factor for TDL Ventures is the notion of both governmental and non-governmental organizations towards these social service organizations. It is, in fact, true that government and non government organizations confer a caustic overview towards these non profit organizations. This factor was a challenge for TDL Ventures during the time of its incorporation. However, pertaining to the level of importance of this specific social service to the people, the organization found adequate founders for its operations and is gradually leading to its success path (Handy & Ranade, 2000). The third most important external factor is related to the social issues governing the operation of a non profit organization. Traditionalistic cultures of the society are an influencing factor for successful operation of TDL Ventures (Twombly, 2011). Traditions prevailing within the society (either positive or negative) were required to be analyzed for effective identification of those factors. It was observed from identification process of the traditionalism that a certain portion of the society was supportive towards its existence while on the other hand, certain other portion was in an ambiguous position towards its existence. For copping up with this situation, TDL Ventures utilized several initiatives related to welfare reforms of the society and in the due course of time the society accepted its existence. At the same time, it was also required for TDL Ventures to make an assessment of cost-benefit position with regard to the societal factors. The societal cost incurred for bringing the organization into existence was to be compared with the societal benefits to be acquired from its operations. It was found from the comparison that social benefits in the form of providing a healthy lifestyle to the blind people in the society was much more than that of the costs initially encountered for the foundation of TDL Ventures (Business Studies Online, 2002). Identification and Analyzing of TDL Venture’s Internal Strengths and Weaknesses TDL Ventures holds a strong workforce which is determined towards the achievement of its goals, both short-term as well as long-term. TDL Ventures similar to any other non profit organizations enjoys benefits from its external environmental issues as well, apart from its internal strengths. However, it is also true that it is not quite too far from weaknesses. In this section of the paper, the strengths and weaknesses of TDL Ventures will be discussed. Strengths TDL Ventures holds the eligibility of acquiring both private as well as public grants from the industry players. From time to time, this organization is liable to obtain charitable donations from the country’s people which in turn would strengthen its financial resource position. It will also receive beneficial aspects from various governmental foundations that aim to contribute towards enhancing their social aspects. An important strength of the organization is its cause for which it is prevailing within the society. As it aims to benefit the blind people, this dimension will grab attention of various foundations as blindness is perhaps the worst curse among all other factors of being physically disabled. Thus, the organization’s motto is itself one of its internal strengths. Apart from various foundations, the general public inclusive of the clients’ family members have depicted interest in the organization’s performance. The organization is deemed to be holding strong financial position within the industry due to various reformative moves of the government towards the non profit organizations. One of the reforms is the exemption of non profit organization from paying corporate income tax to the government. This will act as a measure towards reduction of overall cost of TDL Ventures and thus a large gap will evolve between social costs and social benefits which would definitely add value to its existence in the future. According to the law granted for these types of non profit organizations, the legal authorities and the creditors are limited to its assets. This indicates that the founders of TDL Ventures are not accounted for its debt holding in the market. Therefore, this fact will act as an encouragement for the founders to invest more. Thus, with the passage of time, its financial position can be expected to get enhanced through the founders’ helping hands. Weaknesses A noticeable weakness of TDL Ventures is the involvement of various costs associated with its operations which at times surpass its benefits. This is because, since it is a legal entity, it is bound to handle various legal entities such as that of an attorney or an accountant. This incurs additional cost for the organization. Apart from this, costs are also incurred at times when it has to apply for Federal tax exemptions. The organization lacks proper management towards these issues and thus experiences the necessity of more skilled personnel (Pearce & Robinson, 2011). In the form weakness, TDL Ventures at times faces disparity due to the shared control which it follows in its activities. Due to lack of cohesion among the personnel, the organization has to always feel the fear of annoying its founders regarding settlement of management issues. More than half of the power of scrutiny lies with the public as they are an important interested group of the organization. It has to prepare and publish copies of its performance data for the public and at the same time are bound to take care of the issues of satisfying them with their high performance level. Taking these facts into consideration, TDL Ventures often face the fear of getting off the track of its goal path of servicing the society. Assessment of the Organization’s Competitive Position and Possibilities On consideration of the various facts of TDL Ventures available for both the internal as well as external environment, the competitive position of the organization can be considered to be strong within the industry where it operates (social service industry). Since its inception, it has received adequate support from various groups of the society and with the help of its personnel’s interactive nature within the society; it has prospered in gaining social acceptance from the public and also from its clients. The areas which the organization launched in its initial phases included transportation service, leadership training and personal development for the blind and low vision impaired people. These activities are hardly launched by any of the non profit organizations striving for providing service for the blind people. Thus, TDL Ventures hold a strong competitive position in comparison to its competitors’ activities (Barney, 2007). Apart from the present competitive position, TDL Ventures can be expected to prosper in the future too with respect to its growing interest both from its squad members as well as from various foundations. The reason for growing interest from these groups is its cause for which it exists within the society. Imparting of a better life for the blind is an enormous noble cause for any social service providing organization. Hence, the growing interest from various stakeholders of this non profit organization indicates strong future prospect. It can thus be considered to be in a healthy position within the industry to achieve both its short-term as well as long-term goals aimed towards betterment of the lifestyles of blind people. References Barney, J. B. (2007). Gaining and Sustaining Competitive Advantage (3rd ed.). Upper Saddle River, NJ: Pearson Prentice Hall. Business Studies Online. (2002). External Factors that Affect Businesses. Retrieved June 20, 2011, from http://www.businessstudiesonline.co.uk/GcseBusiness/TheoryNotes/Module%206/PdfNoPrint/02_SLEPT_Analysis_Social.pdf Handy, F. & Ranade, S. (2010). Entrepreneurs in the Nonprofit Sector. Retrieved June 20, 2011, from http://www.istr.org/conferences/dublin/workingpapers/handy.pdf Pearce, J. A., II, & Robinson, R. B. (2011). Strategic Management: Formulation, Implementation, and Control (12th ed.). Boston, MA: McGraw-Hill/Irwin. Twombly, E. C. (2011). Non-Profit and Voluntary Sector Quarterly. 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