strategic-management

CASE 16 • GOODWILL OF SAN FRANCISCO, SAN MATEO AND MARIN COUNTIES — 2009 163
EXHIBIT 4 CEO Direct Reports Organization Chart 2009
Administrative Assistant
Executive Assistant
Business Development & Strategy Specialist
Chief Operating Officer Chief of Organizational Advancement Chief of People Services
Source: Company documents.
receives preferential tax treatment. Governing responsibilities include financial oversight;
legal compliance; mission, vision, and overall strategic planning; fund-raising; and oversight
of the executive director.
As indicated in Exhibit 4, Alvarez-Rodriguez guides the organization in collaboration
with an executive team that consists of the chief operating officer; the chief of organizational
advancement (in charge of marketing, PR, communications, branding, and fundraising);
the chief of value recovery (which encompasses all commercial businesses);
and the chief of people services. In addition, she has three direct reports: two executive
assistants; a business development and strategy specialist. In turn, the executive team
oversees several senior managers including directors of finance, IT, retail operations, donations,
e-commerce, marketing, human resources, training, Workforce Investment Act, and
criminal justice and reentry. This management team draws from a diversity of life and work
experiences, including government, retail, environmental businesses, real estate, as well as
“graduates” of Goodwill’s training program.
Industry and Competitors
President & CEO
Nonprofit
Goodwill is one of thousands of nonprofits operating in California. In 2006, there were
102,677 nonprofit organizations in California. This was a 59.4 percent increase since 1996.
In 2006, 862 nonprofits were in the employment/job-related field, with a total revenue of
$1,330,679, 056. (Goodwill’s budget of $32 million comprised 2 percent of the entire revenue
for the field in California.) As a nonprofit organization, Goodwill competes with
other charitable organizations for donations from individuals, foundations, and corporations,
as well as for government contracts. Because of the national financial crisis, the
majority of the top 100 U.S. foundations say that they will be likely to reduce funding in
2009. 1 Only one foundation, the Bill & Melinda Gates Foundation, recently committed to
increase its giving.
Retail
According to Rachael Grossman, chief of organizational advancement, many people
assume that other nonprofit reuse retailers are Goodwill’s only competition, such as the
Salvation Army and St. Vincent de Paul. Instead, the organization discovered that key
competitors also include major discount retailers such as Ross and Target. Studies that
Goodwill conducted in October 2007 projected that retail would be the fastest growing
industry in San Francisco, adding 7,800 jobs from 2002 to 2012. Goodwill is well positioned
to capitalize on this growing market and prepare its participants for jobs. In fact,
history has proven that Goodwill’s largest revenue stream has been anticyclical.
The impact of the other anticipated revenue drops are cushioned by the relatively
recession-proof retail operations that Goodwill runs. As indicated in Exhibit 5, Goodwill’s
brick-and-mortar stores have maintained a 4 percent comp store increase over last year,
and its e-commerce business has grown in excess of 93 percent.