Strategic Management and Planning Nonprofit Organization †Free Sampl

Question: Disuss about the Strategic Management Nonprofit Organization. Answer: Introduction A not-for-profit or nonprofit organization refers to one which does not earn profits for its owners (Bahnson, McAllister Miller, 2008). This is to say that all the money earned by or donated to the organization is utilized in pursuance of the organizations goals and keeping it functional. Not-for-profit organizations are generally charities or other forms of public service organizations. Notably, for an organization to be considered as a not-for-profit, it must further scientific, charitable, educational, public safety, cruelty prevention, literary, or religious purposes or causes (Amit Zott, 2012). It is quite unfortunate to learn that many individuals who are not involved with nonprofit organizations do not acknowledge the significance of such organizations to the total operation of a countrys economy. To many, these organizations are simply little entities that exist in their own separated corner of the economy. Not-for-profits tend to serve one major purpose which is to better the world while zeroing out their books (Bahnson, McAllister Miller, 2008). They are considered a reliable source of employment despite what some people might believe. Recent statistics indicated that an estimated 10 million individuals were employed in the nonprofit industry in 2010, this being about 10% of the overall employment in America. By providing workers with a stable source of income, nonprofit organizations, similar to for-profit ones, indirectly motivate continuous other facets of a nations economy (Wing, 2010). Brief economic impact research shows the vital value of not-for-profits in any given economy. The employment offered helps in sustaining the economy in a similar manner as for-profit organizations would. Even though nonprofits tend to have distinct missions, they all share similar overall purpose. Notably, they allow individuals to collaborate and join resources so as to attain common objectives and goals. One of the main reasons why people start not-for-profits is to work on social issues or react to the various needs in their communities (Fleishman, 2009). Background to the Situation Recently, the wife of Bill Gates, Microsoft founder attended a Conference where various aid delivery, information technology, education and engineering companies presented their products which would be utilized in the growth of infrastructure in developing nations. Melissa Gates and Pricilla Chan, wife of Chan Zuckerberg, were particularly interested in the stabilization of developing areas and enablement of Project Loon as a technique of advancing these nations and spreading knowledge (Cordes Steuerle, 2009). Following this Conference, Bill and Melinda Gates Foundation, and the Chan Zuckerberg Initiative are in need of strategic advice for the establishment of a permanent aid delivery corporation. Before venturing on this particular business, a number of considerations need to be looked at, and create an organization that is able to meet the current Chan directive and any future requirements in illness and flood stricken regions, or areas that are disadvantaged by years of economic denial or warfare. Some of these considerations include having a mission statement, what type of corporation it will be, the fiscal sponsorship that will jump start the corporation, the name, and who will do the work in terms of autonomous contractors, volunteers, and employees. The corporation that has been proposed will be named the StratSynth Group and will be funded by the Giving Pledge. Its main mission will be to enable the acquisition, delivery and operation of essential life support items (Acton, Fagan Mamano, 2012). Additionally, its initial goal will be to address the East African Drought Crisis, publicly. As indicated, the main concentration of the corporation will be toward the establis hment of long term recovery and rehabilitation for stricken countries. To determine the success of this newly established corporation, it is important to look at the various internal and external factors that are bound to influence or affect the organizations performance. These factors include political, environmental, technological, and legal factors. Porters five forces analysis will also be looked at in relation to this particular venture. PESTEL Analysis describing the business landscape upon which StratSynth will operate Political factors It is important to consider the impact that political factors may have on future corporations profitability as social welfare policies, government stability, international trade regulations, and taxation policies may contribute greatly to the organizations profits (Baligh, 2011). For nonprofit organizations such as StratSynth that will provide community growth services in developing nations, government stability is a main issue to consider in the continuous provision of future services. Taxation policies, on the other hand, may have a positive or negative impact on the possibility of donors regularly donating and on the corporation gaining new donors. Economic factors These factors can have a huge impact on the need for services or donations business cycles. Moreover, money supply, inflation and cost of living, GNP trends, disposable income levels, and unemployment trends are quite relevant in assessing economic factors likely to impact a not-for-profit organization (Bahnson, McAllister Miller, 2008). For instance, a reduction in disposable income would mean a reduction in memberships and donations. With regards to StratSynth, increased unemployment rates may result in increased need for aid. The organization may also need to research increased funding which may be rather hard to obtain. Socioeconomic factors Keeping in mind StratSynth is a corporation that will be based in East Africa, social mobility, population demographics, consumerism, levels of education, lifestyle transformations, and attitudes towards leisure and work are some of the socioeconomic factors that may influence the macro-environment that StratSynth will operate (Amit Zott, 2012). It should be noted that such impact tends to differ in each nonprofit organization. Technological factors Government spending on study, novel discoveries, the focus on technological effort, rates of obsolescence, and speed of transfer are some of the technological factors that may affect StratSynth (Wing, 2010). For this particular organization, it may mean that new techniques of attracting donors, advocators, and volunteers need to be found via the use of social media such as Facebook and Twitter. It will also mean providing adequate training to its staff to ensure competence in handling technology. StratSynth needs to investigate the impact that technology will have on its operations, and conduct an assessment of the current technology items owned by the corporation. Environmental factors Developing nations tend to experience various hardships in terms of the environment, for instance pollution and wastemanagement issues. StratSynth needs to be aware of the fact that environmental protection laws, energy consumption and waste disposal are at the core of the factors to be considered when evaluating the business environment (Fleishman, 2009). Legal factors It is quite possible for one or two individuals to sue the organization. Therefore, StratSynth should consider possible court cases that may impact it, tax laws, and proposed laws (Cordes Steuerle, 2009). The corporation should also note that laws in the developing nations might be slightly different from those of the developed world. Five Forces Analysis of the likely competitors to StratSynth In his Five Forces model, Michael Porter cites that competition is not about which organization is the biggest, but rather, who is the most profitable. This model has been quite relevant for profitable organizations and that is why most people do not see its relevance in nonprofits. With regards to the bargaining power of service providers, they tend to gain more authority as their services become core to the organizations vision and mission (Acton, Fagan Mamano, 2012). The buyers or grantmakers in this case, are considered to be the social impact provided by StratSynth. If they are able to get a superior product from a competing corporation, they will eventually purchase their vision or mission instead. Referring to the competitive rivalry, it is interesting to note that there are about 1.5 million nonprofits in America today (Baligh, 2011). There are also various organizations in East Africa providing similar service to the needy population. That is why StratSynth must establish an effective leadership that understands the competition or gap in this particular market. Threat of substitution refers to how likely a grantmaker or community member will shift to StratSynths competitor. If shifting costs are lower and similar corporations exist in East Africa, then StratSynth may be facing a grim threat of substitution. Given the presence of donor loyalty or high fixed costs, the threat of novel entrants can be restricted (Bahnson, McAllister Miller, 2008). However, if the demand for StratSynths service is high and fixed costs are low, it may be successful in entering the East African market. The business level resources and capabilities required for the StratSynth mission Gates and Chan need to note that a not-for-profit organization tends to lack the fiscal flexibility of a commercial organization given that it relies on resource providers that are not participating in an exchange transaction (Amit Zott, 2012). These providers are oriented towards provision of services or goods to a client other than the real resource provider. Cashmanagement and budgeting will be the two main areas of fiscalmanagement that will be significant to this particular organization. Gates and Chan need to note that it is often quite hard to remain focused on the organizations mission to assist in solving social ills, as short term fiscal considerations of budget balancing and fundraising might take focus away from attaining the corporations mission. Five organizations with the resources and capabilities with which StratSynth may engage using Corporate Level Strategies Corporate level strategies are all about the choosing andmanagement of a combination of businesses which are competing in various product markets or industries (Wing, 2010). A corporate level strategy is significant in that without it, it is impossible for any given organization to have long term plan or technique to attain goals or objectives. Having a corporate level strategy would mean StratSynth concentrating multiple resources on a specific goal. Additionally, for the organization to succeed in its endeavors, it needs to consider the inclusion of other organizations with similar goals and which have also successfully implemented their strategies. Five organizations with capabilities and resources with which StratSynth may engage are Africare, The Carter Center, Oxfam International, The Rockefeller Foundation, and the Catholic Medical Mission Board. Africare is concerned with helping Africans in areas such as environmental health, water, private sector development, emergency humanitarian assistance, and food (Fleishman, 2009). The Carter Center is committed to human rights and the mitigation of peoples suffering. This organization aims at preventing and resolving disagreements, improving health, and encouraging liberty and democracy. Oxfam International is committed to establishing long term solutions to poverty, hunger, and social injustice through lasting partnerships with poverty stricken communities across the globe (Cordes Steuerle, 2009). On the other hand, the Rockefeller Foundation is a worldwide organization focused on enriching and sustaining the livelihoods and lives of the poor and neglected individuals across the globe. Catholic Medical Mission Board would be quite handy for StratSynth in that it is an organization providing medical supplies and medicines free of charge to partner organizations internationally (Act on, Fagan Mamano, 2012). It also delivers medical supplies to individuals residing in poverty stricken conditions and those who do not have any hope of receiving even the basic medical care. All these organizations would be very helpful to the proposed nonprofit given their missions and objectives. For Africare and The Carter Center, a joint venture would be the most appropriate strategy for StratSynth. Implementation of equity alliance would be suitable for the Rockefeller Foundation, and Oxfam International, where the nonprofit will enjoy equal benefits and services provided. On the other hand, the recommended implementation strategy for the Catholic Medical Mission Board would be the nonequity alliance (Baligh, 2011). Melinda Gates interests in the firms producing the Pouncer Drone, the Spider Light Strike Vehicle and the Rokon two wheel drive motorcycle, and advice on whether these firms should be included in the cooperative strategic relationships The firms that Melinda Gates is interested in should be incorporated in the cooperative strategic relationships as they will guarantee speedy delivery of the services the organization is offering. Furthermore, the drought affected regions in East Africa do not have sufficient or effective means of transportation. This means that relief food rarely reaches this needy population. However, by adapting the firms manufacturing the Spider Light Strike Vehicle, the Rokon two wheel drive motocycle, and Pouncer Drone, the nonprofit will succeed in delivering its services to these remote regions, thus saving lives (Bahnson, McAllister Miller, 2008). Organizational structure for a six (6) person Synstrat Headquarters group, including a brief role statement and rationale for each individual employed A six person organizational structure that would be applicable to the Synstrat Headquarters group would be the Board of Directors, the Managing Director, the financial manager, a supervisor, human resource, and volunteers or employees. The Board is responsible for making planning and guidance decisions while the manager maintains relations with the organizations stakeholders and other contributors/fundraisers. S/he will also control the resources. The financial manager will be in charge of budgeting and controlling of funds for the organization. The supervisor will not only serve as the backbone of the organization, but will collaborate with the manager in putting plans into action (Amit Zott, 2012). The Human Resource will be in charge of recruiting staff while the volunteers or employees will be individuals working to fulfill the organizations goals and objectives. Volunteers or Employees A vision and mission statement for the Synstrat Group, including a positioning statement defining the cooperative stance of Synstrat with other similarly aligned organizations As already indicated, the main vision and mission statement for the Synstrat Group is to be able to acquire, deliver, and operate essential life support items. This means that it will provide the necessary equipment and items needed by the ravaged community in East Africa. On the other hand, the Groups positioning statement will be to create awareness of what is taking place with the East African Drought Crisis. Positioning statements are significant in determining how a given product and/or service will be positioned in a given market. References Acton, D.D., Fagan, C., Mamano, K. (2012). Planning for a not-for-profit combination: Insight into federal, state, and funding considerations. The CPA Journal. Pp. 64 67. Ambos, B., Shclegelmilch, B. (2007). Innovation and control in the multinational firm: A comparison of political and contingency approaches. Strategic Management Journal, 28(5). Pp. 473 486. Amit, R., Zott, C. (2012). Creating value through business model innovation. MIT Sloan Management Review. Pp. 41 49. Bahnson, P.R., McAllister, B.P., Miller, P.B.W. (2008). Noncontrolling interest: Much more than a name change. Journal of Accountancy. Pp. 46 53. Bahnson, P.R., McAllister, B.P., Miller, P.B.W. (2008). 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