StratSynth Group - PESTEL Analysis - Case Study Example

StratSynth Group Course Name Professor’s Name Institutional Affiliation City and State Where Institution is Located Date Contents Introduction 3 Background to the situation 3 PESTEL analysis 4 Political factors 4 Economic factors 4 Social- cultural factors 5 Technological factors 5 Environmental factors 6 Legal factors 6 A Five Forces analysis of StratSynth Group 6 Barriers to entering a market - low 6 Bargaining power of the customers- comparatively low 7 Bargaining power of the supplier- high 7 Availability of substitute goods -low 8 Intensity of existing rivalries- low 8 The Business Level Resources and Capabilities required for the StratSynth Group operations 8 The five organizations with the resources and capabilities with which StratSynth may engage using Corporate Level Strategies 9 The Bill and Melinda Gates Foundation 9 Chan Initiative 9 World vision 10 Task Force for Global Health 10 Good360 10 Cooperative strategic relationships with advanced systems firms 11 Organizational structure of StratSynth 11 Vision statement 12 Mission statement 12 Positioning statement 13 References 13 Introduction Stratsynth Group is a permanent aid delivery corporation that aspires to use advanced products to facilitate acquisition, delivery, and operation of essential life support items to developing nations. It also has the long-term purpose of stabilizing and enabling project loon in countries affected by floods, drought, economic denial and decades of warfare. Through the use of advanced systems, the non-profit organization will eventually set up a long-term recovery and rehabilitation for stricken nations. This corporation will be funded by the Giving Pledge and will conjunct with other aid delivery organization to ensure that the calamities facing developing countries are countered efficiently and more. Background to the situation Charity organizations have evolved over the years based on service delivery and managing the costs associated with their activities. However, the unpredictability of calamities has made it hard for them devise techniques that will shape the market. Even though the nature of disasters range, the risks are taken by aid workers, inaccessibility and distorted mobility are characteristics of disasters. StratSynth Group offers a solution that tackles these inconveniences in delivering aids. The Corporation provides advanced systems such as Poncer drone, Rokon two-wheel drive motorcycle, and Spider Light Strike Vehicle will enable the group to conduct operations in inaccessible and dangerous areas. This use of advanced structures will give the corporation a competitive edge thus maximizes its efficiency and effectiveness. Through extras such as Project Loon, the corporation will be able to facilitate knowledge acquisition in developing countries. Thus, the implementation of advanced systems and technologies in promoting charity work is the backbone of StratSynth Group. PESTEL analysis This review describes the macro environmental factors and how they affect the government (Shabanova, Ismagilova, Salimov and Akhmadeev, 2015). The business operates in areas that are widely affected by calamities. These disasters may occur due to natural reasons such as drought, flooding or disease strikes. However, some disasters occur due to human causes such as decades of warfare and economic turmoil due to political instability. Political factors In the business landscape of StratSynth, political factors have a large influence. The factors associated with political instability thus make it hard to conduct trade, organize business activities and deliver aid programs to the disaster-stricken areas. For instance, constant political instability in Somalia since 1991 has made it difficult for aid programs to conduct their activities in the Horn of Africa (Nicholson, 2014). This is a menace that the business has to tackle in almost all disaster-ridden areas. Economic factors Economic factors will have an influence on how the entire group operates its effectiveness and impact rate. These factors include inflation, economic growth, and interest rates. In most regions where the company will work in the inflation rate is high and the economic growth is slow. These factors are characteristics of currently affected countries (Mwangi, Wetterhall, Dutra, Di Giuseppe and Pappenberger, 2014). These slow economic growth rates will influence the projects established by StratSynth to ensure long-term recovery and rehabilitation of the areas. In retrospect, set up long-term projects may fail to attain their full potential. Social- cultural factors The corporation will be adversely affected by the social-cultural factors in its region of operation. The population growth rate, health consciousness, and the shared belief will negatively influence the distribution of aid in the stricken areas. Due to unprecedented population growth rates, hostile beliefs and lack of proper sanitation awareness, the corporation may have a hard time not only in predicting the magnitude of disasters such as famine but also in devising methodologies to serve each disaster differently. Technological factors Technological factors will have a positive impact on the landscape of the business. Modern technology will help facilitate delivery of aid programs to hit areas. The current landscape is embracing the use of technology in their operations. Through advanced technological systems, operations are undertaken without endangering the lives of aid workers in those areas. Technology is also used to determine the scope of the disaster, the background of the catastrophe and research on the long-term technicalities that can be set up to prevent the reoccurrence of the epidemic. Technology also offers an avenue for the corporation to seek funds to facilitate its activities in these regions. Further, it is through this avenue that the businesses can identify the efforts in place by other organization thus helping in the coordination of the aid programs. This coordination benefits the affected individuals, the community, their governments and the group. Environmental factors The current environment faces challenges based on ethics. The sector recognizes that it is vital for funding to be used for the stipulated purposes only. Thus, regulations are set up in developing countries to scrutinize the activities of non-profit organizations. These rules fail to be active in some countries due to the high rates of corruption. Therefore, the group will face challenges in ensuring that there is a proper acquisition, delivery, and operation of aid programs in particular areas. Legal factors The set international guidelines on aid programs are very heartening to the organization. The fact that a high number of affected countries show tax leniency to charity groups encourages the corporation. Legally, the sector is viable and boosts productivity. This encouragement is based on the reduction of operations costs, the availability of volunteers from the affected countries and tax waivers on activities and products imported. A Five Forces analysis of StratSynth Group Barriers to entering a market - low In any sector, the existing barriers to entering the market determine the number of players. Thus, when it is easy for a supplier to get into the market, the level of completion is higher in the sector. An industry that requires low intellectual capacity, small capital investments and few government regulations attracts numerous interested parties (Boateng, Akamavi and Ndoro, 2016). The charity market is extraordinary in the way it is readily available to investors. This fact is based on the target market areas it addresses. These segments such as religion, elderly provision, and disabilities require little intellectual capacity, small capital investments and fewer regulations thus making it easy for corporations to start operations. However in some sections such as sports, education, and art, the capital investment and intellectual capacity required is high thus making the completion in the sector low. Thus, the competition is the particular market is determined by the barriers to entering the market (Dobbs, 2014). Bargaining power of the customers- comparatively low In the sector, almost all entities are offering the same package of goods and services. However, when the particular target market is flooded, the customer is unlikely to pay higher prices for the same products and services offered across the board. Thus, due to intense competition from the competitors of StratSynth, the customers have a higher bargaining power which in turn affects the prices of goods and services. The nonprofit organizations struggle to raise funds due to the high competition. This conflict is fuelled by funders and investors who prefer not to support projects that have a minimal impact on the society. Thus, to attract funding, the NGOs have differentiated their products to offer high-value outputs and outcomes that have a significant impact on the community. Bargaining power of the supplier- high The supply structure has a substantial impact on the overall market framework. In a supply channel that features monopoly, the supplier has a high bargaining power thus leading to high prices of goods and services (Crawford, 2016). The high prices affect various markets thus disfiguring the cost structure making it unattractive for funding. In the current status of the market, the bargaining power of suppliers is low because of the high number of vendors. Thus competitors have embraced healthy spending habits and low-cost procurement activities with an aim to increase cost effectiveness and organizational efficiency. These practices are based on attracting financial support for projects, for tendering for contracts and strategic growth and development of the firms. Availability of substitute goods -low In markets where there are replacement products, there is a threat to direct competition. The market structure features several organizations that offer substitute products and services. It is important for StratSynth to identify the competitors that provide substitute goods and services in projects and seek coordination or partnerships as a part of strategies for growth and sustainability (Ferreira, Storopoli and Serra, 2014). Intensity of existing rivalries- low In various areas, several NGOs try to all the projects in the area. In this way, these organizations create an area of operation in that any funding to this field should be to the particular group. These sects of operation give a paragon on how the market is structured in some regions. Diversity in organizational breakdown should be encouraged mainly to facilitate the reliability of the organization to any area. The Business Level Resources and Capabilities required for the StratSynth Group operations The business needs to have significant capital investments since the projects to be carried large. The scope of projects to be covered by the Group is large thus the business needs to have a high financial, human resource and management capabilities. The financial managements of the funds if done properly attract funding from observers. Thus, the pillar of its structure should be proper and correct financial management. The group is privileged to have the support of the Giving Pledge which ascertains a flow of capital to the organization. The efficiency of organizational structure is also a resource for the corporation. It should be able to conduct projects in various parts of the world in a simultaneous manner. Therefore for the operations of Stratsynth group to be successful in various regions, a wide variety of assets are needed. Tangible assets will include fixed assets such as headquarter offices, regional offices and operational vehicles. These assets will include the advanced machinery for aid delivery to be purchased. In addition for a mission to be successful financial assets are required too. Intangible assets will include patents, licensing agreements, service contracts and permits. They facilitate the day to day operations of the corporation. Human assets such as skilled individuals, aid workers and volunteers will also be instrumental for mission accomplishment. The capability to assess missions such as the East African Drought Crisis will enable the Group to be effective in its operations. The five organizations with the resources and capabilities with which StratSynth may engage using Corporate Level Strategies The Bill and Melinda Gates Foundation The choice of the organizations that can engage with StratSynth Group is based on the capabilities, moral nature and reliability of the firms. The Bill and Melinda Gates Foundation and Chan-Zuckerberg are already teaming up in a non-equity alliance to form StratSynth. Their friendship sets to pursue certain goals while remaining as independent organizations. The capabilities and moral nature of the two organizations set a foundation that ensures the corporation will perform. Chan Initiative StratSynth can also organize a joint venture with Chan Initiative to curb the East African drought crisis. Since the initiative is interested in the ongoing crisis, the financial partnership can offer the short-term solution of supplying aid to affected areas. The venture can also set up a program the will ensure food security for parts of the region despite long famine periods. World vision World Vision is also a reliable, established and ethical organization. The organization mainly addresses poverty around the world. It is an organization that bases its investments on long-term techniques of eradicating poverty all over the world. It has a vast human resource through which StratSynth can partner with to ensure efficient delivery of aid to all areas. The fact that the organization is well placed financially and geographically fuels its efficiency. Thus an equity alliance will see world vision provide the human resource and the corporation provides the aid thus not only benefiting the affected individual but also creating a mutual benefit to the two organizations (Buckley and Casson, 2016). This can be done in areas that StratSnyth is not well established. Task Force for Global Health Task Force for Global Health is also organizations that the corporation can work with to ensure and increase in capability. Thus, it can guarantee the supply of medicine and health facilities to areas affected by epidemics and outbreaks (Perez, von Schnurbein, and Gehringer, 2016). On the other hand, StratSynth will ensure their delivery to affected areas through advanced systems. This can be undertaken in the form of a joint venture which serves the mission of the two organizations. Good360 Good360 donates corporate products to other charities. This is also an available welfare network that through partnership and mutual understanding will serve the Group in a convenient way (Andrevski, Brass and Ferrier, 2016). It will be a source of supply of goods required for organizational operations. Cooperative strategic relationships with advanced systems firms The advanced systems offer solutions to delivery of aid to adversely affected areas. The Pouncer drone provides a remote control that ensures supply to areas that are war-torn, quarantined or inaccessible due to natural calamities. Thus, it reduces the risk taken by aid workers. The Spider Light Strike Vehicle and Rokon two-wheel drive motorcycle serve the same purpose of ensuring accessibility and mobility amidst natural and human-made calamities. The organization needs these systems to have a competitive advantage in the market. The use of cooperative strategic relationships will ensure the organization reduces its production costs thus maximizing efficiency and competitive advantage through exclusive access to upcoming and upgrade technologies. Thus, the cooperation of the group with at least two of these firms especially Rokon and Pouncer drone will ensure not only a reliable supply of these products but also a discounted price of purchase based on purpose. The Pouncer and Rokon are recommended because they are lightweight and have a high mobility. Thier costs are also relatively small compared to Spider LSV. Through mutual relationships, the organization will be able to expand its technical and operational resources (Baumgartner, 2014). This will enable a quick growth and development of the organization. Organizational structure of StratSynth The Chief Executive Officer (CEO) is in charge of the day to day management decisions of the corporation. He/she is also responsible for the long and short-term goals of the company. Further, the CEO acts as the liaison between management and the board of directors. The management sector is divided into two sections; head of corporate and charity services. The latter is in charge of managing all charity projects and coordinating the activities of these charity projects. He/she is also tasked with reviewing policies developed by the policy development manager. The casework manager is also under the latter. The case manager plays the role of facilitating all charity projects, analyzing their data and advising on what the firm should undertake. The head of corporate services deals with financial management and accounting. He/she gives the financial go-ahead for each project. The communications officer facilitates exchange in the administrative sector. The human resource manager is tasked with ensuring proper hiring, diversity management at work and good correlation in the workplace. Vision statement Establish a long-term recovery and rehabilitation for stricken nations. Mission statement Utilize advanced systems and technologies to enable the acquisition, delivery, and operation of essential life support item to disadvantaged areas. Positioning statement StratSynth Group will utilize funding resources to implement advanced technologies that ensure minimum risks, mobility, and accessibility during the supply of aid to disadvantaged stricken regions such as East Africa. This offers an alternative to the manual supply of support, especially in hard-hit areas. It also intends to use the technologies to enhance education, health and social systems in developing systems. References Andrevski, G., Brass, D.J. and Ferrier, W.J., 2016. Alliance portfolio configurations and competitive action frequency Journal of Management, 42(4), pp.811-837 Baumgartner, R.J., 2014. Managing corporate sustainability and CSR: A conceptual framework combining values, strategies and instruments contributing to sustainable development. Corporate Social Responsibility and Environmental Management, 21(5), pp.258-271 Boateng, A., Akamavi, R.K. and Ndoro, G., 2016. Measuring performance of non‐profit organizations: evidence from large charities Business Ethics: A European Review, 25(1), pp.59-74. Buckley, P.J. and Casson, M., 2016 International Joint Venture Strategy. International Business: Economics and Anthropology, Theory and Method, p.106. Crawford, M., 2016. 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Shabanova, L.B., Ismagilova, G.N., Salimov, L.N. and Akhmadeev, M.G., 2015. PEST-Analysis and SWOT-Analysis as the most important tools to strengthen the competitive advantages of commercial enterprises Mediterranean Journal of Social Sciences, 6(3), p.705 Vismara, S., 2016 Equity retention and social network theory in equity crowd funding. Small Business Economics, 46(4), pp.579-590 Read More