Applied Concept Paper

Kevin Concilio

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Contents

Executive Summary…………………………………………………………….....2 Abstracts…………………………………………………………………………...2 Concepts…………………………………………………………………………...4 Analysis…………………………………………………………………………....6 Conclusion…………………………………………………………………………7 Appendices………………………………………………………………………...9

A. Bibliography B. Articles

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Executive Summary This paper will first discuss articles that are linked to the main concepts to innovation,

small businesses and not-for-profit organizations. One main concept of technology and

innovation is that companies need to focus on how their top managers should emphasize

focus on the development of new products, and developing technology. Next, the paper

will transition to the complications that not-for-profit’s  can face when formulating a

strategy, and how strategic piggybacking can bring exposure to an organization. Finally,

this paper will identify some effective new venture business strategies. The purpose of

this paper is to apply these key concepts listed to real world business articles. The

concept of this paper is important to business students because it helps future

entrepreneurs to understand strategies and concepts that are used by businesses. I learned

from this assignment that every business is faced with many issues and that it is the way

that the management concepts we are learning about are applied the help them

strategically find a way to deal with these hurdles. Success or failure in their industries

may depend on it.

Abstracts 1. At Proctor & Gamble, the Innovation Well Runs Dry, Lauren Coleman-Lochner

and Carol Hymowitz, 6 September 2012

Proctor & Gamble is faced with one of its biggest challenges in their history, keeping up

with emerging innovation that is being created in new product categories. The company

has been known for launching new pioneering products and opening the doors for

different product categories. Lately, though the company has found itself focusing mainly

on product extensions and embellishments on their current product line. The article

blames the CEO of Proctor & Gamble, Bob McDonald. Proctor & Gamble’s  main  issue  is  

that top management need to find a way to reverse market share declines and they need to

emphasize to management what is really important so they can climb back to the top of

the industry.

2. The Kodak Lie, Larry Keeley, 18 January 2012

Kodak, who was once the classic American innovative and inventive symbols of our

country, has tragically demised. The company missed their moment of breakthrough

when  new  digital  photography  replaced  film  photography.  Although  Kodak’s  leaders  

knew about the impending shift to digital, they failed to realize  that  they  couldn’t  shift  

technology with their signature strengths in film. The company instead focused on their

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current technologies such as organic chemistry, optics and films without trying new

unfamiliar technologies. Essentially, Kodak needed to formulate ideas outside of the box

and focus on what new innovations their consumers wanted and needed.

3. Susan G. Komen for the Cure Defunds Planned Parenthood, Ruth McCambridge,

01 February 2012

Susan G. Komen for the cure, earlier this year, decided that it would no longer provide

funds to Planned Parenthood for performing breast exams. This move was a huge risk

that was taken to support pro-life  efforts  to  cut  Planned  Parenthood’s  federal  funding.

The reason for the defunding provided by the foundation is their newly passed policy that

disallows the organization from providing funds for organizations under congressional

investigation. This new move has raised a lot of controversy for the organization and the

decision has brought up questions on what the real motive of the foundation is.

4. La Raza Conference Explores Social Media Strategies, Aine Creedon, 11 July

2012

This article discusses the not-for-profit organization the National  Council  of  La  Raza’s  

recent social media strategies. The organization has been researching strategies that are

being used that could further develop their brand and help raise funds online. Social

media is providing the tools that can be used for organizations to develop and implement

new strategies that will give their brand recognition, which will in turn generate new

revenue for not for profit agencies. Benefits  for  an  organization’s  shift  to  social  media  

can be the start of a new venture and achieving new social goals.

5. At Youfit Health Clubs, patrons can Feel the Burn without Bells, Whistles,

Alexandra Clough, 18 May 2012

Youfit health Clubs stemmed from Planet Fitness founder Rick Berks, is a health club

that offers the basics such as resistance training, weightlifting and cardio, without the

extra bells and whistles that more expensive health clubs offer. The more expensive

health clubs offered services such as racquetball, basketball, spas, classes and indoor

swimming  pools.  The  founder  would  describe  these  clubs  as  a  “see  and  be  seen”  kind  of  

attitude about the club. He decided to make a club that is non-judgmental, affordable, and

still has new equipment,  a  clean  environment,  individual  TV’s  and  iPod/mp3  ports.  

Youfit  doesn’t  have  a  target  group  of  people;;  all  types  of  people  feel more comfortable in

their clubs regardless of age or fitness level.

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Concepts 1. The Role of Management in Innovation: The most important driver of corporate value is innovation. It is important for a company to generate a strong return from

investment in R&D, and at the same time take innovative risks. Management has an

obligation to not only encourage new product development but also develop a system to

ensure that technology is being used most effectively, with the consumer in mind. The

importance of technology must be reinforced by top management and encouraged by

everyone throughout the corporation. If top management lacks desire to concentrate on

investing time and money on innovation, then managers will follow their lead and show

no interest in the subject.

2. Technological Developments: Corporations need to keep up with the external developments of technological advances. When a corporation falls behind on technology

that can put them in an extremely dangerous point. Companies that are in the lead of their

industry must not focus too closely on ways to improve their current product line, instead

must focus on new developments that could be their next technological advance.

Technology grows at an extremely fast rate and it is difficult for a company to keep up or

surpass that rate if they are not focusing externally. The book explains one way to learn

about new technological developments in an industry. The company should locate their

research and development centers in locations where there is a strong impact on that

products development. Ultimately, that will put their key employees where they need to

be where the leading edge of technology is.

3. Complications to Strategy Formulation: One of the main issues in strategic management for not-for-profit agencies is the tendency to make decisions based on a

mission rather than a strategy. Not-for-profits’  continued  long  range  planning  and  

decision-making can be affected by certain constraints that can have a negative effect on

the formulation of an effective strategy. One constraint can be when a goal of an

organization can interfere with rational planning. Decisions can be made by the

organization based on pressures of stakeholders, which make significant contributions, to

the detriment of the organization as a whole. These decisions can have a negative effect

on the contributions to the organization, because people may not agree with the motives

of the decision.

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4. Strategic Piggybacking: The term strategic piggybacking, which was coined by Nielson, is the development of a new activity for a not-for-profit organization that

generates funds to make up the difference between revenues and expenses. The purpose

of the new activity is to help the primary service program generate new revenue yet still

be related to the organizations mission. Strategic piggybacking is not a new strategy, and

it’s  actually  really  popular  in  not-for-profit agencies. A great portion of large and popular

not-for-profit’s  revenue  since  the  1970’s  has  been  from  numerous  forms  of  new  ventures.  

The IRS however advises not-for-profits to not engage in these types of activities because

it may jeopardize their tax-exempt status if income exceeds 20% of total revenues from

the activity.

5. New Venture Business Strategy: The two keys for success in new ventures, according to Hofer and Sandberg, are (1) to differentiate the product from those of other

competitors in the areas of quality and service, and (2) to focus the product on customer

needs in a segment of the market in order to achieve a dominant share of that part of the

market. It is important for a new venture to study their competitors, and the needs of their

consumers in order to understand how they would respond to the companies’ entrance

into the market. To continue growth the company can emphasize their continued

innovation and pursue natural growth in the market. Additionally, a firm can further

success by forming a strategic alliance with similar markets.

Analysis 1. The Role of Management in Innovation: The CEO of Proctor and Gamble has recently  been  under  fire  because  of  failing  to  keep  up  with  P&G’s  breakthrough image.

Proctor and Gamble is known for their innovative products and for introducing the

consumers to new product categories. Recently there has been a decline in the pioneering

of  their  brands.  P&G’s  CEO  Bob  McDonald  has  management  sectioned  in  units, which

has slowed innovation. The corporation has instead focused on reformulating products

and not on inventing new products. As a result of this customers, have been switching to

cheaper competitors such as Unilever as well as store brands. Customers don’t  mind  

paying for technological advances in their household products, but they do not want to

keep paying the high price for an extended version of the product when they can get the

same advance from a cheaper brand. P & G needs to refocus on technological

competence as it did in past years.

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2. Technological Developments: Kodak  in  the  mid  1990’s  was  a  healthy  company.   Kodak was known for developing high end products from their continued focus on their

signature strengths organic chemistry, optics and films. What they failed to realize was

that though they focused on innovation of their familiar products, technology was shifting

to newer unfamiliar things. Kodak missed view of new developments from businesses

rivals that quietly engineered and focused on new digital technology basically ignoring

the product life cycle. Unfortunately, they continued to lose market share in the industry

that they once dominated and because of the lack of new developments, they would not

be able to regain those consumers.

3. Complications to Strategy Formulation: The Susan G. Komen foundation for Breast Cancer Awareness was recently hit hard for withdrawing funding to Planned Parenthood.

The backlash caused a wave of resignations and the brand has overwhelmingly

plummeted during their first quarter after the announcement. The reason that Komen has

given for the action is that its board has just now passed a policy that disallows them

from funding any organization under congressional investigation. Susan G. Komen

foundation failed to strategize the decision before making it; they needed to fully

implement the consequences from all angles before deciding. In order to proceed from

this decision, Komen needs to become aware of the danger of goal displacement and

focus on a strategy instead of its mission. This is good example of the special challenges

organizational governance issues presents to Not-For-Profits.

4. Strategic Piggybacking: The National Council of La Raza (NCLR) recently decided to enter new activities with social media, essentially to further their brand and online

funding. One of the new strategies on the panel is accepting mobile donations. Donors

can easily contribute to the organization using their mobile devices giving them the

option of donating from anywhere at anytime. A new Facebook tool for not-for-profit’s  

called Facebook Causes is another media strategy that would allow organizations to draw

attention and raise funds for them online. Also the foundation has been partaking in

Twitter chats and interacting with Google to qualify for Google Grants. These new

activities that the National Council of La Raza are engaging in are forms of strategic

piggybacking which is allowing not-for-profits to generate revenue and achieve their

social goals.

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5. New Venture Business Strategy: Youfit Health Clubs came into an industry that has been around for a while but the company has become a success because of their business

strategy. Youfit focused on what their customers really wanted in a health club, instead of

targeting the stereotype of health club goers. Youfit’s  Business  strategy  targeted both

Hofer  and  Sandberg’s  keys  to  success.  The  company  differentiated  the  health  club  by  

providing the basic needs in a health club making it affordable to consumers in a hurting

economy. Youfit used a differentiation strategy to focus on its customers’ needs by

providing  the  services  that  they  requested  without  the  extra  services  that  they  didn’t  use.  

This strategy that the founder implemented has made the health club successful.

Conclusion

In Summary, it  is  important  for  today’s  future  entrepreneurs  to  be  able  to  apply  concepts  

and strategies learned in the classroom to real word business problems. This paper

provided me with a better understanding of innovation and technological development. In

the twenty-first century innovation has become a main focus for a corporation whether

small, large, for-profit, or not-for-profit. Small businesses and not-for-profit agencies also

need to focus on strategies and implementation just as much as a huge corporation does.

The business world keeps growing at a fast rate and in order to succeed, you need to be

able to compete. The lessons learned in the classroom can help an organization compete

and succeed today and in the future.

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Appendices a. Bibliography

Clough, Alexandra. "At Youfit Health Clubs, Patrons Can Feel the Burn without Bells,

Whistles." At Youfit Health Clubs, Patrons Can Feel the Burn without Bells. The Palm

Beach Post, 18 May 2012. Web. 17 Nov. 2012.

<http://www.palmbeachpost.com/news/business/at-youfit-health-clubs-patrons-can-feel-

the-burn-w/nPKT9/>.

Colman-Lochner, Lauren, and Carol Hymowitz. "At Proctor & Gamble, the Innovation

Well Runs Dry." Bloomberg Businessweek. Bloomberg.com, 6 Sept. 2012. Web.

17 Nov. 2012. <http://www.businessweek.com/articles/2012-09-06/at-procter-

and-gamble-the-innovation-well-runs-dry>.

Creedon, Aine. "NPQ." La Raza Conference Explores Social Media Strategies. Nonprofit

Quarterly, 11 July 2012. Web. 17 Nov. 2012.

<http://www.nonprofitquarterly.org/policysocial-context/20634-la-raza-

conference-explores-social-media-strategies.html>.

Keeley, Larry. "The Kodak Lie." Fortune Tech Technology Blogs News and Analysis

from Fortune Magazine RSS. CNN Money, 18 Jan. 2012. Web. 17 Nov. 2012.

<http://tech.fortune.cnn.com/2012/01/18/the-kodak-lie/>.

McCambridge, Ruth. "NPQ." Susan G. Komen for the Cure Defunds Planned

Parenthood. Nonprofit Quarterly, 01 Feb. 2012. Web. 17 Nov. 2012.

<http://www.nonprofitquarterly.org/governancevoice/19541-susan-b-komen-for-the-cure-

defunds-planned-parenthood.html>.

Wheelen, Thomas L., and J. David Hunger. " Concepts in Strategic Management and

Business Policy: Achieving Sustainability”. Upper Saddle River, NJ: Prentice Hall, 2010.

110-14. Print.

b. Articles

Article 1

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At Proctor & Gamble, the Innovation Well Runs Dry, Lauren Coleman-Lochner and Carol Hymowitz, 6 September 2012

For  much  of  its  history,  Procter  &  Gamble  (PG)  didn’t  just  launch  new  products, it

created new product categories, from the first mass-produced disposable diapers to Crest

teeth-whitening  kits.  That’s  one  reason  P&G  has  more  than  1,000  Ph.D.’s  among  the  

8,000  employees  at  its  26  innovation  facilities  around  the  world.  “P&G  is  largely a

branded  science  company,”  says  Larry  Huston,  former  innovation  officer  at  P&G  who’s  

now managing director of 4inno, a consulting firm.

Lately,  though,  there’s  been  a  dearth  of  pioneering  brands  emerging  from  the  world’s  

largest consumer-products company. Spending on research and development in fiscal

2012 ended June 30 was $2.03 billion, or 2.4 percent of sales, the same as the prior year

and  down  from  3  percent  of  sales  in  2006.  P&G’s  most  recent  homegrown  

blockbusters—Swiffer cleaning devices, Crest Whitestrips, and Febreze odor

fresheners—were all launched at least a decade ago. Says Peter Golder, a professor at the

Tuck  School  of  Business  at  Dartmouth  College:  “P&G  is  built  on  creating  new  

categories, and innovation is in its DNA, but they need to rediscover  it.”

Regaining its new-product  mojo  is  crucial  because  P&G’s  business  strategy  has  long  

been to charge premium prices for cutting-edge products. A 150-oz. container of liquid

Tide detergent is $18 at Target (TGT), for instance, 20 percent more than  the  retailer’s  

house brand. As rising commodity prices have increased the cost of most basic household

products, cash-strapped customers may still be willing to pay more for true innovations

but not necessarily for the kind of product extensions and embellishments P&G has

turned to.

That’s  created  a  challenge  for  Chief  Executive  Officer  Bob  McDonald,  who  has  lowered  

profit  forecasts  three  times  since  Jan.  1.  He’s  trying  to  cut  $10  billion  in  costs  by  2016  

and reverse market-share declines in such key categories as U.S. detergents. McDonald is

under pressure from activist investor William Ackman, who in July took a $1.8 billion

stake  in  P&G  and  may  seek  management  changes.  Blockbusters  have  “dried  up  a  bit,”  

acknowledges  Bruce  Brown,  P&G’s  chief  technology  officer.  “We  want  to  get  back  to  

more  of  that.”

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McDonald earlier this year assembled a team of researchers, marketing managers, and

senior executives from across the company to chart a bolder innovation course. The

group  spent  10  weeks  analyzing  P&G’s  new-product pipeline and selecting the most

promising  ideas  for  development.  But  most  won’t  be  ready  for  at  least  another  year.

P&G’s  175-year history is filled with such consumer-product innovations as the first

synthetic detergent (Dreft, in 1933), the first fluoride toothpaste (Crest, in 1955), and the

first  stackable  potato  chip  (Pringle’s,  which  later  dropped  the  apostrophe,  in  1968).  

Researchers typically have leveraged technologies already used in P&G products to come

up with entirely new ideas. For Crest Whitestrips, launched in 2002, they adapted

bleaching  methods  from  P&G’s  laundry  business,  film  technology  from  the  food  wrap  

business, and glue techniques from the paper business.

In  recent  years,  however,  the  company’s  product  pipeline has been mainly focused on

“reformulating,  not  inventing,  products,”  says  Victoria  Collin,  an  analyst  at  Atlantic  

Equities in London. Among these are new scents of Tide for Eastern European markets

and  Secret  deodorant’s  Natural  Mineral  line.  As  a  result, analysts say P&G has lost

customers  in  the  U.S.  and  other  developed  countries,  who’ve  switched  to  cheaper  

products made by such rivals as Unilever, as well as store brands.

When former CEO A.G. Lafley took charge in 2000, he sought to increase the rate of

product development by collaborating with outside partners who could help with

everything from packaging to product design. Working with outsiders has enabled P&G

to gain access to some important technologies, such as a wrinkle-reducing ingredient

made  by  a  French  company,  Sederma  (CRDA),  that’s  used  in  its  best-selling Olay

Regenerist skin cream.

But Lafley also decentralized R&D, making business-unit heads responsible for

developing new items. R&D chief Brown says that inadvertently slowed innovation by

more closely tying research spending to immediate profit concerns. Between 2003 and

2008, the sales of new launches shrank by half. By the time McDonald became CEO in

2009, the number of what the company considered to be big product breakthroughs had

fallen to an average of fewer than six per year as unit heads focused on short-term results

and smaller inventions, says Brown.

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McDonald,  who  has  acknowledged  that  the  company’s  R&D  has  been  “inadequate”  in  

some product categories and regions, has now centralized 20 percent to 30 percent of

P&G’s  research  efforts.  He  also  named  Jorge  Mesquita,  already  chief  of  its  pet  care  and  

snacks  businesses,  as  head  of  P&G’s  new  business  creation  and  innovation  unit  and  given  

him responsibility for coordinating product launches.

One  area  of  focus  is  beauty,  where  “we  lost  our  way  for  a  couple  of  years,”  says  Brown.  

That business, which includes deodorants, cosmetics, and hair care and made up 24

percent  of  P&G’s  $83.7  billion  in  sales  in  fiscal  2012,  has  been  lagging competitors such

as  L’Oréal  (OR)  in  product  launches.  (L’Oréal  says  it  rolls  out  about  500  a  year.)

McDonald has said he hopes cost-cutting will free up more money for product

development. Yet the squeeze has forced P&G to make tough choices even when it does

introduce appealing products. One example: Spending to support a popular new Olay hair

removal  product  last  year  pulled  money  from  other  products,  “so  the  base  business  lost  

more  than  this  new  thing  gained,”  Brown  says.

Meanwhile, Unilever says it can roll out 10 new products in 60 countries in the same time

it once took to introduce them in just 10 countries. Recent new products include Clear

anti-dandruff shampoo and a Rexona deodorant that uses proprietary Motionsense

technology to activate the product as the wearer moves.

Kimberly-Clark (KMB), maker of Huggies diapers and Kleenex tissue, has opened

research centers in South Korea and Colombia and increased R&D spending in the first

half of this year by double-digits  from  the  year  before.  “Our  international business is

growing  so  rapidly  that  the  demand  for  innovation  has  increased,”  Chief  Financial  

Officer Mark Buthman says.

P&G  still  brings  plenty  of  new  products  to  market.  SymphonyIRI’s  New  Product  

Pacesetters report, which tracks the top-selling non-food innovations, showed P&G with

one-third of the top 25 last year. And the company over the years has acquired big

brands, including the Olay and SK-II skin care lines and Gillette. Yet homegrown

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products  remain  the  challenge.  Says  4inno’s  Huston: “You’ve  got  to  be  constantly  

creating  innovation.”

The bottom line: P&G, with $84 billion in annual sales, made its name as a new-product

whiz. But its biggest homegrown hits are at least a decade old.

Article 2 The Kodak Lie, Larry Keeley, 18 January 2012 FORTUNE -- People never seem to notice, but strategies have fashions. Just as cars had

fins for a while, or business folks try to dress like they just stepped off the set of Mad

Men, or phones get big touch screens and icons to chase after Jony Ive's iPhone design

choices, there are also conventions in how we think about what firms should do to create

value. These ways of thinking even have names so we can refer to them in shorthand:

focus, cost leadership, differentiation, core competence leverage, supply chain

integration, and the like.

This came to mind over the last few days in the midst of the Kodak (EK) death vigil.

Most of the Kodak conversation has been standard issue Chicken Little: the sky is falling;

the American dream is dead; another classic company has bitten the dust. We're all off to

hell in a handcart and there's not a thing we can do about it. After all, Kodak was a

symbol of better times, an era when American innovation and invention was seemingly

ubiquitous. But while George Eastman's goal -- to make photography "as convenient as

the pencil" has been realized and even exceeded -- Kodak was not the company that

capitalized on this new ubiquity.

And so, with a mixture of schadenfreude and fear, we hear the Monday morning

quarterbacks explain what went wrong and explain how a company with so much

promise managed to snatch defeat out of the jaws of victory. The basic buzz is that

Kodak missed the moment. Addicted to film photography, they never really could (to

borrow a phrase from another brief strategic fashion) "cross the chasm" and drive the

growing new digital photography field.

What if this convenient analysis is just too superficial? The demise of Kodak isn't merely

the classic disruption story that everyone loves to tut tut over. Nor is the company's

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downfall merely a result of recent bad decisions or the mismanagement of senior

executives. It is the more nuanced story of how easy it can be to get things wrong, even

when trying with the best of intentions to do everything right. It's a cautionary tale of the

need for deeper understanding of what innovation really means, and how it is infinitely

more vital than most people think it is, even as it isn't about any single product or widget

or technology.

Kodak knew all about the impending disruption of digital technology. As many have

noted, they own the primary patents on digital photography and built one of the world's

first digital cameras in 1975. As The Economist reported recently, a report circulated

among senior executives in 1979 detailed how the market would shift permanently from

film to digital by 2010. This disruption was no surprise. But following the fashions of the

moment back then, Kodak's leaders looked at the whole shift through the lens of their

signature strengths in chemistry, optics, and films. They tried to do new things with

familiar capabilities at the exact moment they needed to be hungrier to do truly new,

unfamiliar things.

One of Kodak's significant attempts to diversify away from the world of film came at the

end of the 1970s. They targeted xerography, specifically aiming at the other hometown

hero in Rochester, New York. I was consulting with Xerox (XRX) at the time, and we

took Kodak's threat to enter the world of copying very seriously. We were right to;

Kodak's strengths in organic chemistry and optics helped them to create some excellent,

high-end products.

This way of thinking was fashionable at that moment. In 1979, Sony (SNE) used its skills

in miniaturization to create the craze du jour, the Walkman. Toyota (TM) used its

strengths in paints and seals to make better quality cars than Detroit was making. A

decade later, one of my heroes, CK Prahalad, published his seminal paper on The Core

Competence of the Corporation in Harvard Business Review to explain the fashion. In

effect, the strategic question was: given what we are already good at, what new things

can we do that will drive growth?

For Kodak a continued focus on chemistry, optics and depositions on film made perfect

sense. And it made it a healthy company through the mid-1990s. But what it missed, what

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most of us chronically miss, was that the new businesses, however soundly reasoned and

engineered, were dinky, especially viewed in comparison to their base business. This is

why Pfizer (PFE) loves Lipitor (and the blockbuster drug model); why Cisco (CSCO)

loves routers; and why it was hard for IBM (IBM) to sell off the ThinkPad (though it did

so, in sharp contrast with HP (HPQ), which should have). And it's why PepsiCo (PEP)

has found it so hard to sell healthy snacks, when soda and potato chips are so very

popular. So often we want innovation to be easy -- allowing us only to have to tweak the

familiar instead of trying to do something more deeply connected to how customers live

their lives now.

In Kodak's case, the digital photography field not only was slow growing but it actively

undermined their largest source of profits: photo and motion picture films. The tiny

sideline businesses simply could not scale at a rate that might make up for the loss of film

revenues, so those inside the core business were unable or unwilling to do what it took to

foster drastic transformation.

This exact phenomenon plagues innovation in nearly every large firm. At least once a

week, top executives tell me that new growth businesses in their firms are intriguing and

potentially important, but they simply "don't move the needle." Said in plain American:

"The hot new thing simply cannot produce enough revenues this quarter to improve my

bonus as a senior executive." So those projects are starved of resources instead of

nurtured.

So what should Kodak have done? More to the point, what should you do to avoid this

trap? Well, there is a new form of strategic thinking coming into fashion right now, called

Convergences. Used well, it gives leaders a deeper sense of the interdependencies that

connect firms, products, systems, and services in new ecosystems. It challenges the older

notions of supply chains and vertical integration to get at newer ideas such as platforms,

which move the cost and risk of innovating off your balance sheet and onto others'. It

uses visualization techniques to reveal where new opportunity hotspots are emerging --

typically the confluence of new technological capabilities and new customer behaviors.

This new way of shaping strategy can show you the next big thing, long before it has a

name and a whole host of competitors. But that insight still doesn't solve the vexing

cultural and accounting problems that plague most firms innovation choices: senior

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executives have to be incentivized to create hot new platforms that are newsworthy, not

just get paid for driving growth in the familiar ways that drove value yesterday.

Will this latest strategic fashion make a difference? It already does. Will it be a

fashionable way to think for long? Who knows? Surely, I don't. That's the trouble with

fashion. Something new is usually just moments away. But for now this is a solid way of

thinking for those looking for the future to show up a little ahead of its regularly

scheduled arrival. That, at least, will never go out of style.

Article 3

Susan G. Komen for the Cure Defunds Planned Parenthood, Ruth McCambridge, 01 February 2012

January 31, 2012; Source: National Journal | The Associated Press reported Tuesday that

Susan G. Komen for the Cure, in a move that may potentially risk a portion of its large

base of supporters, has decided that it will no longer fund Planned Parenthood to perform

breast exams. The move appears to be linked to pro-life efforts to edge Planned

Parenthood out of federal funding due to its willingness to perform abortions, among a

host of other health services for women. The grants to be cut went to at least 19 clinics

and Planned Parenthood says they totaled approximately $680,000 last year.

The reason that Komen has given for the action is that its board has just now passed a

policy that disallows them from funding any organization under congressional

investigation. Recently, the House Oversight and Investigations subcommittee launched

an investigation, spearheaded by Rep. Cliff Stearns (R-Fla.),  into  Planned  Parenthood’s  

use of federal funding and issued a letter demanding information from Planned

Parenthood. While seen as a nuisance investigation by some, it was apparently enough

for Komen to hang its hat on in making the decision to defund Planned Parenthood. A

statement  from  Komen  said  that  the  action  had  been  taken  to  “strengthen  our  grants  

program”  and  had  “implemented  more  stringent  eligibility  and  performance  

criteria...While it is regrettable when changes in priorities and policies affect any of our

grantees, such as a longstanding partner like Planned Parenthood, we must continue to

evolve to best meet the needs of the women we serve and most fully advance our

mission.”

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In cutting the funding Komen is the only known organization to cut funding to Planned

Parenthood in response to the recent political pressure. Planned Parenthood, of course,

has been under constant attack by right-to-life legislators who have repeatedly tried to

block its federal funding but have been met by the resistance of President Obama and

others who did not wish to see the organization unfairly pilloried. Some states have also

attempted to pass laws preventing abortion providers such as Planned Parenthood from

receiving Medicaid dollars, but the Center for Medicare and Medicaid Services warned

states that such policies would put the totality of their Medicaid funding at risk.

In response to the decision, some have pondered the potential influence of Komen Senior

Vice President of Public Policy Karen Handel. Handel, the former Georgia secretary of

state,  joined  Komen  last  April  after  an  unsuccessful  electoral  run  in  Georgia’s  Republican  

gubernatorial primary. During the campaign, Handel promised to nix state funding for

breast screenings and cervical cancer screenings at Planned Parenthood if she became

governor.  “[S]ince  I  am  pro-life,  I  do  not  support  the  mission  of  Planned  Parenthood,”  

Handel wrote.

In  an  article  on  New  York  Magazine’s  Web  site,  Noreen  Malone  notes one tweet sent in

response  to  the  action.  “The  Komen  Foundation  just  destroyed  its  brand,  and  it’s  going  to  

be  very,  very  sorry.”  Melinda  Henneberger,  a  columnist  in  the  Washington  Post  who  has  

herself had breast cancer titles her article on the subject, “Planned  Parenthood  Will  

Recoup  but  Will  Komen?”

She cites a tweet from Daily Show co-creator  Lizz  Winstead  that  reads  “I  am  crying  in  a  

cab at this Komen decision. Tomorrow we will rally. Who is in this fight with me! You

can  no  longer  sit  idly  by.”  Henneberger  then  writes,  “In  response  to  the  charge  that  it  had  

given  in  to  bullying,  Komen  said  in  a  statement  to  CBS  News  that  ‘grant-making

decisions  are  not  about  politics.’  The  PR  team  that  came  up  with  that  one  may  have  a  

future in comedy. Though I guess  not  at  the  Daily  Show.”

Article 4 La Raza Conference Explores Social Media Strategies, Aine Creedon, 11 July 2012 A  panel  at  the  National  Council  of  La  Raza’s  (NCLR)  recent  conference  in  Las  Vegas  

discussed some social media strategies worth noting. Titled  “The  Social  Media  Network  

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Explained:  Get  Noticed  with  New  Media,”  the  panel  discussion  addressed  organizations  

looking to further develop their brand and online fundraising. The NCLR panel brought

attention to fundraising trends and mobile technology  that  could  increase  nonprofits’  

online donations.

Based  on  reporting  from  VOXXI’s  Julissa  Bonfante,  here  are  some  take-aways from the

La Raza social media panel:

Mobile donations: Make sure your organization is using the right tools for supporters to

donate through mobile devices. This will give users the option to donate from anywhere,

transforming their smart phone into a credit card.

Using Facebook tools: Facebook Causes is a fundraising application integrated with

Facebook and is one of the largest online advocacy platforms in the world. It allows

nonprofits to draw attention to their causes and to raise funds. Any Guidestar-verified

nonprofit can collect donations through Causes. Another important tip is to establish a

strong Facebook page, since this may be the first page someone sees when looking up

your organization.

Timing  is  everything:  NCLR’s panel spoke on the importance of posting on social

networks  during  the  weekends,  claiming,  “It’s  when  social  media  sites  get  the  most  

traffic.”  This  claim  conflicts  with  statistics  released  by  Bitly  several  months  ago  on  the  

optimal times to post on Twitter, Facebook and Tumblr (prime times to post on all three

happened during the typical work week, not on the weekend, according to Bitly). Despite

this discrepancy, few would dispute that posting on social networks during the weekend

is a useful tactic. Tools such as HootSuite or Later Bro are handy to automate your

weekend posts or tweets.

Partake in live Twitter chats: Make sure your nonprofit is interacting with its followers on

Twitter; one of the best ways to connect with organizations with similar missions is by

participating in the right Tweet Chats. Unsure of where to start with tweet chatting? Here

is a useful Twitter chat wiki.

Take advantage of Google Grants: Google Grants is a great resource for nonprofits.

Jennifer Edwards, associate coordinator of digital organizing for NCLR, points out that

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“Google  Grants  provides  non-profits $10,000 per month in in-kind AdWords

advertising.”

Summarizing  a  continual  focal  point  of  the  panel,  VOXXI’s  chief  operating  officer  and  

technology expert Ariel Coro said,  “The  key  to  social  media  is  having  a  good  strategy.  

Social media is putting all the tools in front of us but we have to understand the strategy

beyond  the  tools.”  In  other  words,  social  media  can  be  erratic  and  is  constantly  changing,  

but developing and implementing solid and consistent strategies to approach social media

never grows old. –Aine Creedon

Article 5 At Youfit Health Clubs, patrons can Feel the Burn without Bells, Whistles, Alexandra Clough, 18 May 2012

The founder of Planet Fitness health clubs has found a new world in which to help people

get healthy and fit. Youfit Health Clubs (www.youfithealthclubs.com ) is the brainchild

of Boca Raton resident Rick Berks, who sold the Planet Fitness trademark in 2002 and

finally parted ways with the company in 2008.

It was at that point he decided there was a need for a health club that offered the basics,

such as cardio and resistance training, without the bells and whistles of other, more

expensive clubs that feature spas, classes and a see-and-be-seen attitude, Berks said.

"There is an evolution to this type of club. In the past, clubs were everything-to-

everybody types of clubs," Berks said. But Youfit offers a simple model for people who

want to do strength and cardio training, without the need for classes or racquetball courts,

for example.

The newest Youfit just opened at the Town Center Mall in Boca Raton, in the back of the

mall, known as the Terrace, above the Blue Martini bar. Making the clubs attractive to

customers is that they require no long-term commitments, just $10 a month for access to

a single club, or $19.99 a month for access to any Youfit club.

There are about 40 Youfit clubs open now, including 32 in Florida, and Berks hopes to

have 50 open nationwide by the end of the year. The concept was first started in 2008 but

has really taken off in recent months, and more clubs are opening locally, Berks said.

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A Wellington location opened a few months ago, and several are under construction in

Broward County, too. A number of clubs are opening in Arizona, as well. Berks said he's

also scouting locations in California, the Northeast and the South.

The soured economy has been an upside for Youfit, because suddenly there are a number

of spaces, such as now-closed big box retailers, that are available for Youfit clubs, Berks

said. Berks said the clubs bring in steady traffic all day, compared with clubs that seem to

have peak periods during lunch and after work. The Simon Property Co., which owns the

Town Center mall, has asked Berks to open a Youfit in Simon's Boynton Beach Mall, but

Berks said he wants to see how the gym performs at Town Center before making a

commitment to Boynton Beach.

The Youfit clubs have a sleek, clean feeling, with all new equipment and plenty of it, so

there's no need for a wait to exercise, Berks said. An express circuit works every part of

the body in just 30 minutes per session, and includes both a cardio workout and strength

training. There also is equipment for seniors who want low-impact equipment to increase

strength and flexibility. In addition, the equipment is outfitted with individual TVs and

ports for iPods or mp3 players.

Berks says his goal is to make people of any age or fitness level feel comfortable working

out. "A lot of people who do not (typically work out) feel more comfortable in our clubs,"

he said. "It's geared toward the person who has not been a serious exerciser but now

wants to get fit."