Background to the situation
The StratSynth group is a nonprofit organization, which will provide aid to the grief stricken areas. The corporation is funded by the giving pledge that includes world’s wealthiest individuals who are philanthropist. The mission statement of the corporation is to set up permanent aid delivery in all the grief stricken areas such as war zones and areas affected by epidemics and floods. The vision statement of the organization is to establish rehabilitation and long-term recovery for the grief stricken nations. The immediate mission is to provide essential life support items to the grief stricken areas. The corporation is formed due to the initiative taken by Melinda Gates and Priscilla Chan and they are interested in acquiring Pouncer drones, the Spider light strike vehicles and Roxon two-wheel drive motorcycle, which will improve the efficiency of the delivery system. The immediate concern of the organization is to address the East African drought crisis and this report gives us a detail description of the strategic planning for the creation of a permanent aid delivery corporation.
The East African region comprises of Somalia, Djibouti, Ethiopia, Kenya, Uganda and other neighboring countries. The current drought is like a déjà vu because this phenomenon has become the part and parcel of the life of the people in East Africa. The draught has occurred seven times in the past decade, the one in 2011 being the worst in 60 years. This is a region affected by severe hunger and famine due to the rapid changes in the climatic conditions, forced migration and fluctuating food supplies. The amount of people affected due to the crisis has been roughly estimated to be around 12.8 million and the situation is expected to deteriorate even more. The draught has hit the East African region for three years consecutively and this has caused the food production to be minimized (Agutu et al. 2017). There is an increment in the numbers of the refugees and the victims affected by communicable diseases. Moreover, the conflict in the various countries in the Eastern Africa is also a key factor for diminishing resources. The war in the Southern Sudan and Somalia has made the lands less fertile so it very difficult to cultivate anything. Thus, it can be seen that East Africa has become the epicenter for catastrophes both manmade and natural and has affected millions of people (Hoell et al. 2017).
A PESTEL analysis is a tool used to monitor and analyze the factors of the macro environment that will influence an organization (Grünig and Morschett 2017). The various macro environmental factors that will influence the organization are as follows:
- Political
- Economical
- Social
- Technological
- Environmental
- Legal
The political factors have different impacts depending on the type of the organization. A nonprofit organization provides services for the community development and so the most important issues are government stability and taxation policies. East African regions have always been the center of political crisis (Thomson 2016). However, Kenya and Ethiopia have been quick to act on the crisis and had shown leadership qualities but most of the other countries are still politically unstable due to the lack of resources and ongoing war (Butt et al. 2016). The opportunities that the organization has are due to the change in the government, the devolved government, medium term plan 2 and on going public sector reforms. The organization may be threatened due to the uptight relation between the western countries and East African government, politicians’ pessimistic perception of the civil society, countries lack of clarity on the rules and regulations on NGOs and the current referendum drive.
PESTEL Analysis
The economic factors that may affect the organization are GNP trends, money supply, business cycle, cost of living, inflation and interest rates. The disposable income and unemployment trends are also relevant factors, which has to be taken into consideration. The opportunities on which the company can capitalize are current focus on the infrastructure development, fiscal policies, the funding provided by the government to the NGO sector and Oil exploitation in the economy (Rodrigues et al. 2016). The threats that could create problems are declining economic growth and the rise in the economic crimes such as terrorism financing and money laundering.
The social factors that may affect the environment of the organization are social mobility, political demographics, level of education, consumerism and lifestyle. The effect of the social factors will be quite different in a nonprofit organization (Gray et al 2017). The opportunities in the social environment are chances of employments due to the mineral oil utilization, government internships and focus on the specially able men, women and children. The threats that will affect the organization are communicable diseases, increase in poverty, increment in the criminal activities, substance abuse and effects of Marburg and Ebola (Barfield 2016).
Technological factors that may affect the organization are new discoveries and government involvement in new research. The availability of a particular technology can either boost or hamper the operations of the organization. The opportunities in the technological field are E-government policies, rapid changes in technology and online delivery capabilities. The threats that may affect the organization are the high cost of maintenance of the information technology infrastructure due to the rapid changes and cyber crime (Reij and Waters-Bayer 2014).
The environmental protection laws and the laws related to energy consumption and waste disposal will help in audit of a nonprofit organization so that it may help in increasing the productivity and reduction in cost. The opportunity that the organization can exploit is the go green requirement and the threats that may affect the organization are global warming, urban decay and environmental degradation (Fer et al 2014).
The legal structure of the industry may also affect the non-government organization. The nonprofit organization does not have to think about the profitability of the organization but the safety laws and the occupational laws may affect the organization. The opportunity that may affect the organization is the change in the laws affecting the charity regulations. The threats the company may face are risk of disruption due to the changes in the charity regulations and the increase in the legal suits due to the changes in the constitution.
Porter’s five forces model was generally designed for the profit industries. However, the model is also applicable for the non-profit sectors. The model can be modified according to the nonprofit organization. The forces will show the factors that will have an impact on the goals of the organization and how the efficiency of the processes can be increased more effectively (Fung 2014). The Porter’s five forces are as follows:
- The power of large suppliers
- The power of the large customers
- The entry potential
- The threat from substitution of the product
- The level of competition amongst the organizations
A nonprofit organization activity is mainly based on services and no products are involved. The services provided by a NGO are for the societal needs and so there is no involvement of material resources. This is the cause for the diminishing impact on the supplier power. However, in this case the Giving Pledge it can act as both the supplier and the customer. The Giving Pledge is providing StratSynth with funds for a particular mission and in return, they are expecting a desired result where the society is beneficial. The power of the supplier is totally dependent on the leadership of the organization and the funding of the organization. A large funder will have more influence on the organization. The funded amount is divided into two parts, one of it is project and other is operational( Dobbs 2014). Project funding is generally specified for a particular project while the operational development includes administrative, staff and infrastructure development.
Five Forces Analysis
The barrier of entry in the field of nonprofit organization is exceptionally low.
The threat of substitution in case of non-government organization will be quite different from a profit organization. The competition for funding of the different projects in the organization can be assumed as a threat to substitution. StratSynth may face this problem when they will focus on the different goals and technologies they wish to acquire(Ortega et al 2014). The threat of substitution can also be referred to as threat of competing needs. The end goal of the organization is the welfare of the society but there is always a debate regarding the key area of focus. The debate is mainly about the areas that require immediate attention (Ombati and Muturi).
The local NGOs have a good understanding among themselves and so they never intrude each other’s area of operation. However, in case of international NGO’s the financial pool is very small and there is always an intense level of competition (Biginas 2017). However, in this case the Giving Pledge is sponsoring the specific organization.
The high priority missions need special vehicles and equipments for success. These vehicles and equipments are of special quality and endurance. These resources are costly. StratSynth requires proper funding for these equipments (Kinuthia and Katuse 2017). The rescue operations in these third world countries are only possible if the technologically superior vehicles like Spider LSV are used. For these operations, StratSynth requires business mergers and partnerships with eminent corporations. The US agencies like DIV (Development Innovation Ventures) work with the non-profit organizations. DIV helps in a high amount of funding.
The weapon and vehicle corporations like Singapore Technologies Engineering (ST Engineering), who provides light strike vehicles to reach the interiors of East Africa. The other corporations like C-RAM system and Barrett Communication also will help StratSynth in these high-risk rescue operations. These vehicles have the ability to reach the victims of natural calamities like flood easily.
In countries like Kenya the mergers with KENGEN (Kenya Electricity Generating Company) and KMD (Kenya Meteorological Department) collaborates with StratSynth to monitor the situation and to supply the required energy for the rescue missions.
The Windhorse Aerospace is the company, which has developed the pouncer drones. These are drone are manufactured in the United Kingdom and cost of each drone is around $183.Thus to decrease the cost of production the company will have to set up a facility in East Africa. The drones can carry huge amount of food that will be enough for at least 80 persons for a day.
The Roton two wheeler motor bike is also an essential item as it can travel through any rough terrains and a collaboration has to be made with the Roton so that a manufacturing can be set up. The set up will help in rescuing lives and as well as providing delivery of first aid and food where the drones cannot reach.
The five organization with which StratSynth can engage in corporate level strategies are as follows:
- Singapore Technological Engineering: They will provide the technology for the production of the Spider light strike vehicle.
- Development Innovation Ventures: This nonprofit organization will provide with excess funds
- C-RAM and BARRET communication: The will help in the high-risk rescue operations.
- Kenya Meteorological Department: They will provide electricity for the manufacture of the drones, motorcycles and the vehicle.
- Windhorse Aerospace: They will provide the technology for the production of the Pouncer drone.
Reference:
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