Strategy is a coordinated set of actions to create and sustain a competitive advantage in achieving a nonprofit's mission. It operates at three levels - organizational, programmatic, and operational. Five principles of strategy formation are: 1) strategy is not planning, 2) know thyself, 3) know thy market, 4) build on strengths, and 5) make criteria explicit. Real-time strategic planning involves continuously evaluating and updating strategies in response to trends. A business model outlines an organization's scope, customers, programs, funding sources, and locations.