Different Dimensions of Strategic Management - Reach out to Asia - Case Study Example

STRATEGIC MANAGEMENT Executive Summary This study is centered towards highlighting different dimensions of strategic management. In modern world non-profit firms are losing on their significance due to various reasons. Financial or economic crisis is a major issue that stops a non-governmental organization from fulfilling its set strategic objectives. Donations or acquiring funds has been such a major problem for some NGO’s that they were bound to limit their widespread operations. In this study a particular non-governmental organization has been highlighted that is serving backward community from past many years. ROTA or Reach Out To Asia is the chosen non-profit firm for this analytical study. It is clearly evident that strategies are implemented by a firm either to gain competencies or to sustain market position for long term. However this study shall outline strategies initially adopted by the firm and certain recommended strategies for the future. There is some form of objective present behind every strategic approach undertaken by a firm. The main objective of ROTA is to expand on its operations and serve a wider base of underdeveloped community. This firm is currently working for a narrow market segment and only serves limited group of people. Education is an important tool that helps in redesigning living standards of an individual and even enhances conditions of a society. ROTA has adopted this tool in order to serve backward community people. Its main focus is educating people so that they can reasonably differentiate right from the wrong. There are certain areas where the firm is lacking such as promotional measures are not implemented by the firm. This measure has been stated as a strategic objective for ROTA in future years. An action plan also is formulated in order to address this form of strategic objective. Promotional technique will be introduced in the firm by signing a contract with well known advertisement agencies. These agencies will frame contract conditions that need to be agreed upon by the top management. The most preferred media channels for establishing communication are newspapers, radio, etc. These channels can effectively covey required message to target audience. On the other hand promotion has two-fold purpose as portrayed in the study. This would help to spread awareness regarding strategic initiatives been undertaken by ROTA amongst target group as well as public. It would even initiate increased levels of donations. Often non-profit firms find it difficult to acquire funds since people whom they approach are unaware about projects been undertaken by the firm. Promotional campaign will not only encompass future projects to be implemented by ROTA but would even reflect upon the journey of this non-governmental organization. There are other strategic objectives such as diversifying into other regions. Strategic alliance has been denoted as a medium through which ROTA can expand on its operations as well as gain market presence in other regions. Mission, vision and values ROTA or Reach Out To Asia is a nonprofit organization that works towards providing quality education to needy people. The idea of enabling quality education to Asian continent was conceived in 2005 by Emir of Qatar State, His Highness known as Sheikh Tamim bin Hamad Al Thani. ROTA is presently functioning as a non-governmental firm operating under Qatar Foundation. The parent organization was founded in 1995 and takes care about the basic needs of backward community. ROTA’s main focus has been to provide a platform where educational needs can be effectively fulfilled. On the other hand, Qatar Foundation creates value by believing that people’s potential is the greatest resource of a nation. It aims at creating that potential in an international context through progressive education, network chain, community welfare and research. The mission of this nonprofit organization ROTA is to extend educational assistance to Asia. Strategic geographic location of this continent provides an exceptional opportunity in terms of supporting their neighboring countries. This approach helps these regions to overcome efficiently wide array of developmental difficulties. Moreover it has been observed that own community of Qatar comprises of above 60% Asian people. This gives ROTA an added advantage in context of understanding cultural norms and needs of Asian people. There needs to be certain changes in the mission statement of ROTA. It should not only focus on educational qualification but even implement strategies to provide basic necessities. The geographical coverage area also needs to be expanded by ROTA. In order to achieve this mission the organization needs to focus on Asian countries as well as its neighboring regions. There are no such competitors of ROTA in Qatar hence it can be indicated that there is a wider scope for future growth. ROTA needs to focus more on community development and education is just one segment of such objective. This non-profit firm firstly should spread awareness amongst global customers about their initiatives (Reach Out To Asia, 2014). It would help to gain support of global partners who can provide required funds for carrying forth operations. Value creation by ROTA should not be limited to developing educational platform. Expansion of operations will help to resolve issues faced by majority portion of backward community. Vision of the firm can be to set its position in global market place in the coming ten years. The mission of helping needy people shall not be bounded within Asian community but needs to expand to other regions across the globe. Develop 4 strategic objectives ROTA is a newly formed non-profit organization and it works for a small segment. Non-profit firms usually have a major objective that is to serve needy people by resolving their issues. There are different sources through which these firms acquire require funds so as to sustain their operations. Profit making is not an initiative of these firms but they are inclined towards making this society a better place to live in. ROTA being a non-profit firm aims to eradicate illiteracy from the world. This can be achieved by promoting education amongst backward community. Education is the only tool which helps to develop a community and initiate future growth within a region. Strategic objective of ROTA is to focus on education only for its coming years of operations. It can be stated that this non-profit firm aims at a common issue highly noticeable in backward society (Hoskisson, Hitt, Duane and Harrison, 2007). The firm has adopted best measures in order to address such strategic objective. ROTA works in collaboration with Qatar Foundation which supplies funds to support widespread operations of the firm. Its entire framework of operations has been divided into two parts such as ROTAQ that takes into account operations taking place in Qatar, and ROTAsia which handles innovative projects across Middle East and Asia. The firm possesses a strategic objective to develop educational projects in those countries where there is a need for immediate action. Major priorities for the firm are Bangladesh, Indonesia, Afghanistan, Cambodia, Lebanon, Pakistan, Iraq, Nepal, Yemen and Palestine. These are the poorest countries across the globe who has either suffered from war or any form of natural disaster. ROTA has been fulfilling its set objectives over the years. However certain changes can be made in its long term or short term objectives. Firstly the firm should also focus on other basic needs in mentioned poorest countries apart from education (Wintzer, 2007). This would help to resolve many such issues that negatively impact people belonging to backward community. Secondly it has to be aligned towards adopting promotional tools which can spread awareness about their initiatives across the globe. This in turn will even attract people to join the educational projects of ROTA as volunteers. Thirdly the firm has narrowed down its operations and this is disrupting market position of ROTA. It should now focus on regions outside Asian community and this would help in mitigating problems of many people (Simerson, 2011). Last strategic objective of ROTA can be to include more number of volunteers within the system. Even the ones who have been provided with educational platform by ROTA can later be influenced to join the organization. All these strategic objectives can be correlated with a common organizational goal that is to reduce societal problems. Identifying opportunities and threats Opportunities and threats are two vital components of a strategic tool known as SWOT. These factors are external to a firm and cannot be internally controlled. In the present scenario developed countries possesses all facilities essential for living but developing countries are deprived off basic necessities. Non-governmental organizations implement different strategies through which they eradicate societal issues. ROTA is one such non-profit firm that works for education in developing countries. There are wide set of opportunities available to ROTA in terms of spreading awareness about education across the globe. The first major opportunity for ROTA is to expand on its global operations. Asian community is the prime focus of ROTA but it now needs to shift to other regions where educational qualification has not gained importance. These regions can be developing regions of EU or other foreign countries. Expertise possessed by this organization would help it to mitigate many issues of these regions. ROTA even can explore an opportunity of forming strategic alliance with some well known international non-governmental organizations. This will help to resolve the most common factor related to availability of funds. International organizations shall not only help ROTA with monetary support but even provide a platform through which they can expand on its educational projects. Strategic alliance with global firms would enable ROTA to enter into those regions that previously posed entry barrier for the firm. Another opportunity is to diversify into more activities. In order to achieve their ultimate goal of eradicating societal issues the firm has to provide basic amenities to needy people. Apart from education ROTA can work for food, clothing, shelter, sanitation facilities of backward community. On the other hand, they can even work in collaboration with some small scale firms. This in turn shall provide job opportunity for those people who are being educated by ROTA. Threats can be defined as external environmental conditions which are beyond the firm’s control. The major threat for ROTA is natural disaster in its area of operations. Developing countries where this non-profit firm operates is disaster prone regions. Any form of natural calamities in these regions might disrupt educational campaign of ROTA. This would even de-motivate citizens from being associated with programs of ROTA. Financial crunch can even be a major threat for ROTA. Qatar Foundation might witness financial crisis and this will indirectly affect activities of ROTA. Donations are acquired by the non-profit organization from large scale firms or well known citizens or community (Peng, 2013). Economic crisis will tend to reduce the spending power of individuals. They would prefer to invest in properties or any other form of asset rather than giving lump sum amount of donations. Inadequate supply of funds will result into elimination of wide array of projects. Increasing number of non-governmental organizations in Asian regions shall reduce the uniqueness of ROTA. The firm is bound to witness challenges if proper actions are not taken in terms of creating a long term impact on developing countries. Competition is even prevalent in non-profit sector and growth can be achieved only be allocating resources in appropriate areas. Identifying strengths and weaknesses Strengths and weakness are internal components of a firm. These factors enable a firm to achieve competitive advantage. It can be stated that strengths help a firm to explore market opportunities whereas weakness makes an organization more prone towards being affected by threats. The major strength of ROTA is consistent support from Qatar Foundation. Funds and volunteers are provided by parent organization. On the other hand, experience of so many years helps the non-profit firm to resolve educational issues of wide range of developing countries. This firm has selected such an area where most NGO’s do not operate due to lack of operational facilities. The other strength of ROTA is its wide base of talented individuals who are working for the firm from past many years. Their expertise in this particular field enables the firm to expand on its operations and undertake various educational projects. ROTA has set its position which cannot be disrupted by any other non-profit firms. This forms a competitive advantage of the firm. It has been able to change life of many individuals who in turn join the organization to serve needy people. Other strength of the firm is its unique mission or goal. It works in those countries which have been affected by any form of natural disasters or war. Education is a medium through which individuals can build up their dignity and live a desirable life. ROTA’s strategic initiatives have been accepted by affected people and they possess a desire to develop their future. Support from volunteers and availability of resources facilitate ROTA to reach out to needy people across the globe. Weakness of non-governmental organizations mainly lies in handling external environmental conditions which are beyond control. ROTA’s main weakness is funds availability when they desire to implement a critical project. Qatar Foundation extends its monetary support in limited amount (Lasserre, 2012). This in turn restricts the firm to limited set of operations and they are often not able to change lives of many people. Funds can be stated as a major problem for non-profit firms. In order to sustain their global operations the firm often has to control their operational costs. This in turn results into cutting down payments of officers or volunteers. For long term perspective such an approach is not beneficial as it becomes difficult to retain volunteers without any payment. Organizational conflict has been observed in ROTA as it is challenging to communicate non-profit motive amongst all the team members. Recruiting volunteers for fulfilling strategic goals is another issue for this non-profit firm. To be more precise the firm is not being able to retain team members for long term due to lack of payment facilities. The other weakness is inefficiency in terms of implementing a standardized approach across all its operating areas. ROTA has its projects spread across many regions and due to lack of sufficient volunteers these projects are not being completed effectively. Hence in areas such as Bangladesh, Nepal and Yemen ROTA is not performing as per set industry standards. This in turn makes people perceive that this non-governmental organization is not serious about their strategic objectives. Other weakness can be lack of advanced technology within the system. In this aspect ROTA’s operations take place at a slower pace in relation to other NGO’s. Positioning for competitive business-level strategy Business level strategy can be defined as an action plan that is adopted by managers so as to utilize competencies and resources for gaining competitive advantage. These strategies comprise of two main components such as product differentiation and customer needs. Customer needs are their wants or demands which can be efficiently satisfied by characteristics of services or products. Product differentiation helps in creating competitive advantage by incorporating certain unique characteristics within a product or service. Competencies can be gained by a firm only when they aim towards creating value for their market segment. Non-profit firms possess competencies in the form offering value added services to backward community. On the other hand, competitive advantage can also be gained by utilizing minimum financial resources to deliver maximum output. In a particular region non-governmental organizations gain competitive advantage by building required trust level within the community. It is essential for management of non-governmental organizations to develop faith amongst people whom they are serving. These backward community people should have trust that the non-profit firm is working for the goodwill of the society as a whole. Business level strategy in general context encompasses three basic competitive approaches such as cost leadership, focus and differentiation. Cost leadership strategy is all about an organization adopting best practices so as to manufacture products or services at the least cost possible. Differentiation strategy indicates that a product or service is designed in such a manner that it outperforms in the industry in comparison to competitors. Focus strategy is another business strategy that is directed towards meeting customer needs of a limited market segment or customer group. Focused strategy can be categorized into two parts such as focused cost leadership strategy and focused differentiation strategy. Focused cost leadership strategy is when cost factor is taken into consideration of a particular market segment. On the other hand, focused differentiation strategy is implemented to differentiate certain goods or services for a distinct market segment. Non-governmental organizations comprise of different set of values and beliefs. These values are distinguishable because they serve a particular segment and try to resolve issues. Non-profit firms such as ROTA are only concerned about educational qualification of backward community. Its corporate business strategy is to serve those people living in developing countries who are not able to satisfy their basic needs. Focused strategy has been implemented by the firm in its system (Henry, 2011). Focused cost leadership strategy is the corporate business strategy of ROTA. This strategy has helped the firm to focus on a specific segment. Focused cost leadership strategy has enabled the firm to adopt cost control techniques and offer the best services to its target group. The major goal of focus strategy is to serve needs of certain segment of customer group. In broader context focus strategy is adopted by firms in order to serve a geographical area, customer type and product line segment. ROTA is mainly inclined towards backward community of Asian regions. It operates in Qatar and Asia in order to implement educational projects. There is no such product or service segment within ROTA’s operations but its main aim is to provide educational platform to all needy people across Asia and Qatar. Distinctive competency can be achieved by a firm through following a strategy which is well aligned with organizational goals and objectives. Advantages of focus strategy are it facilitates customer loyalty in relation to substitutes. Buyer power is also subsidized since they cannot obtain similar product from any other firm. However the major loophole of this form of strategy is its vulnerability. Supply chain partners have a greater control over business operations following this approach since they are prone towards becoming vulnerable. Change is a factor which should be maintained appropriately by focused firms because a constant niche formation gives it an added advantage (Porter, 2008). Major rivals for the firm are those NGO’s operating across the globe who takes proper care of basic needs of individuals. Education is often considered as a secondary element amongst backward community as food or clothing or shelter takes the first place. In midst of such competition ROTA’s focus strategy helps it to spread awareness about the importance of education so as to survive in the future years and develop a better life. Strategy implementation Strategic objectives of ROTA are inclined towards common goal of organization. The two major strategic objectives to be focused on are – promotional techniques and diversification into different fields. Promotional measures should be undertaken by every non-profit firm. This kind of technique serves two-fold purpose such as informing target group about the services being offered and gaining attention of members who can support the firm through their donations. The action plan for this objective shall encompass all possible media campaign that can transmit message of ROTA across the globe. This strategic plan needs to be implemented as fast as possible since it can help to address the major issue related to financial crisis. Other form of risks such as operational risks can also be mitigated to a great extent through this approach (Mcfarlin and Sweeney, 2008). The reason behind this is promotion helps to acquire large base of volunteers who are ready to work for ROTA. Retention of volunteers is a main issue that is witnessed in non-profit firms. Promotional campaign for the firm shall comprise of integrated marketing communications. The message to be conveyed is necessity of education for backward community. People belonging to lower income group are often deprived off from basic needs such as education. This medium shall portray the need for education amongst selected market segment. The action plan for this strategic objective has been elaborated below- Program Objective: To run a new promotional or media campaign for the educational projects to be launched by ROTA within a financial budget of XX QAR. Program Activities: Identification of two best advertisement agencies that can help to implement new media campaign. Approaching the advertisement agencies to submit a proposal for newly formed promotional campaign. Agencies shall submit their respective proposals to marketing head of the firm. Selection of the best proposal, followed by informing advertisement agencies about their respective decision. Agency on the other hand will present their winning proposal to the top authority. Promotion and advertisements are broadcasted on radio, television, newspapers, etc. Results of the campaign are measured in terms of increased rate of donation and enquiry calls regarding donations. Action Steps Responsibility Start-End 1. a) Analysis of previous programs b) Discussion with marketing head c) Final decision framed on two advertisement agencies John and Smith John John 1/5 – 2/2 2/2 – 2/5 2/6 2. a) Ad specifications are formulated b) Team member writes specific ad request c) Contact respective ad agencies d) Send desirable request to two advertisement agencies e) Meeting with accountant executives of ad agencies John Smith John Smith John and Smith 1/16 – 1/23 1/23 – 1/29 2/6 – 2/9 2/11 2/12 – 2/21 3. a) Ad agencies collaboratively work on proposals b) Agencies present their respective proposals Account executives Philip 2/22 – 5/2 5/2 – 5/13 4. a) Selection of best proposal b) Arranging a meeting with winning ad agency c) Inform those agencies who has failed to meet desirable standards Philip Philip Smith 5/16 – 5/21 5/25 – 5/29 6/2 5. a) Fine-tune advertisement proposal b) Presentation to top management Accountant executive Philip 6/1 – 7/2 7/2 – 7/6 6. a) Advertisements are broadcasted on TVs, radio, social media, etc. b) Leaflets are distributed across all operating regions John Smith 9/2 – 12/ 23 8/21 – 8/ 29 7. a) All measures are incorporated for advertisement campaigns b) Evaluation of acquired funds c) Formulation of campaign analysis Smith Smith Smith 9/2 – 12/23 1/5 – 1/11 1/11- 2/16 The other strategic objective of ROTA is to diversify into other areas apart from educational field. Donations gained through advertisement campaign will help the firm to support needy people in various possible ways. Action plan for fulfilling this strategic objective shall be inclined towards forming alliance with international non-governmental organizations. These firms will support ROTA to expand on its operations and deliver best possible results. Program Objective: To formulate a plan for entering into strategic alliance with international NGO’s so as to diversify into other fields. This plan shall be structured within a total budget of XX QAR. Program Activities: Identification of best international firms for expansion plan Formulation of a proposal that can be appealing to identified firms Submit the proposal to respective firms Arranging a meeting with those firms who are interested in strategic alliance Evaluation of outcome for the new campaign Action Steps Responsibility Start-End 1. a) Reviewing programs undertaken by international firms for backward community b) Open discussion with top management c) Narrowing down choices of international firms Smith and John John John 1/1 – 2/5 2/5 – 2/18 2/19 2. a) Deciding on parameters of the proposal b) Setting standards and criteria’s for operation Philip Philip and John 1/16 – 1/ 23 1/23 – 1/28 3. a) Final discussion with top management regarding the proposal b) Meeting with executives of selected firms c) Submission of final proposal John and Smith Smith Smith 2/4 – 2/11 2/ 12- 2/22 2/23 4. a) Contacting those firms who are interested in such alliance b) Arranging a meeting with selected international firm c) Deciding on areas of operations outside Asia and Qatar d) Selecting fields to enter apart from educational qualification John and Smith Smith John John 3/1 – 5/16 5/16 – 5/30 5/30 – 6/15 6/16 – 7/14 5. a) Recall evaluation measures for the plan b) Analyzing trend of the plan’s success or failure c) Conveying results to board members of both the firms Philip Accounting Executive Philip 9/2 – 12/23 12/23 – 1/15 1/16 – 1/20 Strategy evaluation and control Strategic implementation is followed by an essential step known as evaluation and control. These measures need to be undertaken by firms so as to analyze the success of a strategic plan. In general context, organizations after implementing a strategic plan always focus on its profitable outcomes. Evaluation is majorly inclined towards profit margins of a firm. It can be stated that strategic control is a must both for profit as well as non-profit firms. ROTA is majorly focusing on two main strategic objectives such as to incorporate promotional measures and diversify into other developing or underdeveloped regions. Apart from focusing on other basic needs or operation beyond Asian community, ROTA even aims to retain on its wide base of volunteers. All these strategic objectives can be evaluated on the basis of some measuring tools. Key performance indicators for these objectives will be aligned with the common goal of the firm that is to provide basic necessities to underdeveloped community people. First key performance indicator will be to determine the effectiveness of promotional campaign. This can be achieved by reviewing opinions of people regarding the strategic objectives undertaken by ROTA. If maximum people in its operating areas are aware about the educational projects of ROTA then it indicates that the firm has succeeded in spreading awareness. On the other hand, such reviews will even portray specific loopholes in media campaign which needs to be eliminated by the firm. Along with public target group of ROTA also needs to be aware about their action plan. This can be effectively measured by calculating the number of individuals who joined educational program after the campaign. On an overall basis this evaluation technique helps to analyze whether the campaign has been effective for long term or not. It is essential to create an impact on target audience so as to convey the required message regarding educational qualification (Ulwick, 2005). The other key performance indicator can be to determine the donation amount contributed by individuals. This shall help the firm to avoid any form of financial crisis which appears to be a major threat for the firm. On the other hand this indicator incorporated by ROTA will even help to analyze whether people are convinced with their strategic approach or not. This firm is dependent on Qatar Foundation for their wide array of operations. Hence it is an opportunity for the firm to acquire their own funds and design a strategy that can help it to sustain its operations for long term. Other performance indicator for strategic objective such as entering into new field of operations can be to measure their impact on target group in that specific region. This can be achieved by analyzing their opinions regarding the exceptional services provided by ROTA. On a broader context this shall help the firm to determine its position in relation to other activities such as food, clothing, shelter, etc. Formation of strategic alliance can even be measured efficiently through identifying resources being allocated and results being achieved. ROTA’s management can state them to be at a better position if they can manage funds efficiently and serve the backward community appropriately. Conclusion and lessons learned As per this study it is clearly evident that strategic management is essential component for any firm. There are different strategic approaches that are undertaken by a firm. These strategies basically depend on the current market position and competencies possessed by rival firms. However firms adopting strategic initiatives have a common interest that is long term survival. Non-profit firms encompasses wide set of responsibilities which they need to focus on so as to make the society a better place. In the present scenario there are different problems that are affecting people across the globe. Majorly it has been observed that underdeveloped community is mostly affected either through natural disasters or war. In such a scenario it becomes essential to support these people and enhance their living standards. ROTA or Reach Out To Asia has one such objective that is to help backward community people in education field. It frames different educational projects so as to serve selected community with best possible educational techniques. Top management of this non-profit organization is inclined towards serving Qatar and Asian community. ROTA has some specific areas of operations such as Bangladesh, Nepal, Pakistan, etc. They mainly focus on these regions and implement educational projects so as to ensure a better life for backward community people. The firm was founded in 2005 and since then it has been operating under Qatar Foundation. Funds and required resources are supplied by the parent organization. Strategic planning process is undertaken by the firm itself. In this study there are certain modifications done to mission and vision statement of the firm so as to create a long term impact. Value creation is the main focus of the firm. They create value either by efficiently utilizing donations given by well known people or through providing the best education to needy people. ROTA believes that focusing on a narrow market segment helps to eradicate maximum societal issues. However this analytical study encompasses certain strategic approaches which are based on its newly formulated strategic objectives. These strategies have been further elaborated in the form of an action plan. The action plan comprise of program objectives, initiatives, responsibility and time interval. There have been two strategies framed such as incorporating a promotional campaign within the system and diversifying into wider areas. Both these approaches will help the firm to solve wider scale of societal issues and even acquire required financial resources. Promotion can be defined as an essential tool which is required to spread awareness amongst public in terms of social measures been undertaken by a non-profit firm. Through this study an important lesson is outlined in context of working approach of a non-governmental approach and their possible strategic objectives. Strategies were initially thought of as an approach that is undertaken by firms to gain high revenue margins or sustain competitive position in the market place. Through this approach it is clearly evident that non-profit firms can also formulate strategies in order to serve backward community for long term. References Henry, A. (2011). Understanding Strategic Management. New York: Oxford University Press. Hoskisson, R., Hitt, M., Duane, R., and Harrison, J. (2007). Competing for Advantage. USA: Cengage Learning. Lasserre, P. (2012). 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