Need for Corporative Strategic Relationship with Other Companies - Case Study Example

Individual Assessment: Report Name Institution Course Tutor Date Individual Assessment: Report Introduction Non-profit organisations are created amongst people who have common interests and goals of without the intentions of getting excess return on investment or revenue whilst undertaking their various intended activities. Therefore, a not-for-profit organisation is formed by a group of people having common interest to pursue common goals including offering and delivering their services without the intention of getting much revenue in the return. The organisation may be formed upon identifying a gap in the provision of intended goods and services to people that cannot afford the intended products. Therefore, this type of organisation aims at making services available to people that require them the most at considerably low or no profit. This article presents information towards starting and managing a non-profit organisation. Based on a case study, the paper intends to explore the many aspects involved including need for corporative strategic relationship with other companies with complimentary or supplementary goods and services that can enhance the establishment of the non-profit organisation as well as the achievement of its intents. Discussion Situation Background Upon attending a World Advancement Conference, where various firms showcased their products that can be used in developing infrastructure in developing countries, Melinda Gates and Priscilla Chan in the idea of aid delivery to the countries. Therefore, they opted for commencing and developing aid delivery organisation that aims at advancing the developing countries. For rapid aid delivery, they had interest in Pouncer Drone, Spider Light Strike Vehicle and Rokon two wheel drive motorcycle. With the ambition to support the ongoing attempts of addressing drought crisis in East Africa as one of their first objectives, Gates and Chan seek to start a non-profit organisation, referred to as StratSynth Group. This report provides the two partners with the required idea necessary for commencing and developing a non-profit firm within their interests and objectives. PESTEL Analysis of the Proposed Organisation Just as other type of companies, the profit-based organisations, not-for-profit firms are also impacted by various factors within and without their control. Slim (2013) and Scalberg et al. (2014) argue that even the non-profit are impacted by certain trending forces that should be considered for efficiency and effectiveness in developing and achieving the intended objectives. According to Scalberg and the colleagues, various political, economic, social, and environmental factors should be considered towards establishing and developing a non-profit organisation. Considering the objectives and interests of the StratSynth Group, the table below presents a PESTLE analysis that can provide advice to Gates and Chan. Factors Impacts and suggestions Political factors The organisation needs to consider the potential effects that political factors can impact on the industry. Since StratSynth is a non-profit organisation seeking to provide community developmental services in developing countries, political stability and taxation policies should be the key areas to observe, since the ability of the people providing the funds depend on them. Economic factors In this aspect, the group needs to consider various elements including the money supply, cost of living and inflation status, employment and disposal income, and the cost of providing the intended services (Johnson et al. 2005). Unfavourable economic conditions have the potential of hindering the intended activities. Socio-cultural factors Population demographics such as level of education is likely to affect the attitude of the targeted consumers towards the intended services. Therefore, depending on such factors, the intended activities may not be affective to address their situation. There socio-cultural-based research should be conducted before the start up. Technology factor Since most of the products on which the group is interested depend entirely on the availability of advanced technology to produce delivery facilitators such as two wheel drive motorcycle, the proposed organisation should consider expertise in such areas. Environmental factors Whilst undertaking the various activities to which the proposed project seeks, the company needs to consider their effects on the environment. Five Forces Analysis Forces Impacts Suppliers bargaining power The proposed non-profit organisation should consider that since their services require supplies from other profit-firms, they are likely to gain power over and impact the intended activities. Buyers bargaining power Various organisations that are providing similar services are most likely to utilise quality, amongst others, to affect the buying behaviour towards the proposed company. Competitive There are many non-profit organisations in the contemporary business world (Team FME 2013). Providing similar goods and services result in competition towards the target market. Threat of new entry With the increasing need to address the community development issue, many non-profit organisations are emerging (Arasa & Kioko 2012), hence are likely to impact competition to the proposed group. Threat of substitution The company should research on the likelihood levels that the target market would prefer the competitors. Business Level Resources and Capabilities Non-profit organisation with intention of obtaining supplies and offering and delivering finished products to target consumer is just a business set up. The firm would require certain business level resources and capabilities to ensure its efficient and effective operations and performance in the target market. A company based in value should be able to demonstrate that it is optimised in every activity to attract the targeted consumers of its services (Vita & Fleming 2001). One of the key resources and capabilities that the company needs to have is adequate finance and its management. Blackbaud (2011) advices that a non-profit company; just as any other types of firms; depends on financial factor and its effective management since it is what attracts donors and optimises performance. In this case, StratSynth Group is primarily based of funding by Giving Pledge. Therefore, the company needs competent financial capabilities to maximise quality utilisation of the funds. Additionally, the company needs human resources and its effective and competent management. With the aim of making facilitated deliveries during crises in flooded or drought affected areas, it is imperative that the company employ expertise and experience, alongside skills, that can undertake the involved tasks under the described situations and within the time limit required. Further, well-manged logistics and supply chain are other capabilities and resources at business level that the proposed company should consider employing during its mission activities. Alibegovic & Persson (2013) explain that well-defined sourcing strategies are some of the elements logistics and supply chain that a non-profit company would require for an optimum performance. Therefore, StratSynth Group needs to have logistics and supply chain and their management capabilities to achieve their mission intents. Organisations with which StratSynth Group can from relationship with for resources and capabilities Some of the companies with the resources and capabilities to positively impact the intentions and activities of the proposed group included: 1. Public relation companies: considering that the company is just commencing, it would be of significance to form a corporate relationship with a company that would facilitate recognition of its brand amongst the target market. 2. Insurance companies: the proposed group would be based on places under crisis and risks are high and contingencies are inevitable (Deacon 2009). In the occurrence of risky events, the company is most likely to incur losses and disabilities. Theretofore, insurance cover is essential. 3. Engineering or quality assurance experts companies: the company is interested on technology-based supplies to facilitate their faster aid delivery ambition. Technologies such as two wheel drive motorcycle and Pounce drone must be of deliver the intended level of services and reduce any associated risk. 4. Legal firms or advisers: any business activity requires recognising and acknowledging the definitions of various rules and laws. In Australia, there are legal considerations in employment and business activities, even in the non-profit industry (Picard et al. 2016). Therefore, it is imperative that the company consider forming a relationship with legal advisers. 5. Auditors: another type of companies that the proposed organisation should consider forming a corporate relationship with is auditing firms. Through the impacts of such firms, the company can understand how they utilise their financial resources against the achievement of intents, hence management strategies. Concerning the structure, considering only six persons, the company should consider forming a board of directors, which may comprise Gates and Chan and a representative from the funding company. The remaining four people should be managers in finance, sales, marketing, and human resources, who can also be present during board of director meetings. Considering the short and long-term objectives, mission statement can be: To be the leading efficient and effective aid delivering company in times of crises. Vision statement can be: To contribute to the realisation of a region that is well equipped with the necessary life support resources and knowledge to facilitate crisis management in areas prone to such. References Alibegovic, S & Persson, A 2013, ‘Logistics sourcing strategies in non-profit point-based organisation: a case study of the supply chain process at Miljonlotteriet’ (Master Thesis), University of Gothenburg. Arasa, R & kioko, M 2012, ‘An examination of the NGO sector competitive environment in Kenya, International Journal of Science and Research, Vol. 3, No. 6, pp. 219-224. Blackbaud 2011, ‘Financial management of not-for-profit organisations’, Blackbaud. Available from https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwib8Lr44oLUAhVrDcAKHWKFDGMQFggsMAA&url=https%3A%2F%2Fwww.blackbaud.com%2Ffiles%2Fresources%2Fdownloads%2FWhitePaper_FinancialManagementForNPO.pdf&usg=AFQjCNEWg7HyrHubv2lJPHN74t4e5StzFA&sig2=05xIpkbdHFsIG09UbuT9mw Deacon, M 2009, ‘Developing effective non-profit: corporate relationships’, APF. Available from https://www.afpnet.org/ResourceCenter/ArticleDetail.cfm?ItemNumber=13235 Johnson, G, Scholes, K & Whittington, R 2005, ‘Exploring corporate strategy (7th ed.)’, England: Pearson Education Limited. Picard, RG, Belair-Gagnon, V & Ranchordas, S 2016, ‘The impact of charity and tax law/regulation on not-for profit news organisations’, A joint project of the Reuters Institute for the Study of Journalism, University of Oxford Information Society Project, Yale Law School. Scalberg, EJ, Bertelson, L, Gabriel, A, & mavroleon, J 2014, ‘Trends impacting Monterey county non-profits: a PESTEL analysis. Slim, NR 2013, ‘Strategic analysis for a not-for-profit organisation specializing in development training fro girls’ (Master Thesis). Team FME 2013, ‘Porter’s five forces: strategy skills’. USA.gov 2017, ‘Starting a non-profit organisation’, USA.gov. Available from https://www.usa.gov/start-nonprofit Vita, C. & Fleming, C 2001, ‘Building capacity in non-profit organisations’ The Urban Institute. Read More