StratSynth - PESTEL Analysis - Case Study Example

Running Header: Research portfolio Research Portfolio Course Name Professor’s Name Institutional Affiliation City and State Where Institution is Located Date Table of Contents Running Header: Research portfolio 1 Background 3 PESTEL ANALYSIS 3 Political Factors 4 Economic factors 4 Social-Cultural factors 5 Technological factors 5 Legal Factors 6 Environmental factors 6 StratSynth Five Forces Analysis 6 The Business Level Resources and Capabilities Required for the StratSynth Mission 7 The five organizations with the resources and capabilities with which StratSynth may engage using Corporate Level Strategies 8 UNICEF 8 Project Hope 8 Africare 8 Doctors without borders 9 Opusa 9 Establishing an Alliance 9 Interest in producing the facilities 9 Organization Structure 9 Mission 11 Vision 11 Position statement 11 References 12 Introduction Establishing an operation in a foreign country requires a lot of research as to the marketing environment the organization will be operating in in order to guarantee its success. Failure to properly understand where an international operation will be established is likely to lead to conflicts that would lender such an operation fruitless. Thus, this report is aimed at analyzing the East African region in terms of PESTEL analysis for the Bill and Melinda Gates and Chan and Zuckerberg initiative in order to gauge whether the proposed establishment of StratSynth mission that is aimed at offering a solution that will ensure rapid delivery of aid in emergency situations will succeed. Background StratSynth has its origin in the biennial World Advancement conference that Melinda Gates and Priscilla Chan attend. In the conference, a number of aid delivery, engineering, information technology and education firms showcase their products for use in the development of infrastructure in developing countries. Gates and Chan gain a lot of interest in stabilizing developing regions and enabling Project Loon as a method of distributing knowledge and advancing these countries. Of particular interest to them are the Pouncer Drone, the Spider Light Strike Vehicle and the Rokon two wheel drive motorcycle, specifically for rapid aid delivery. It is as a result of this that Bill and Melinda Gates Foundation and the Chan Zuckerberg Initiative sought for strategic advice for the creation of a permanent and delivery cooperation named StratSynth Group. Their initiative named StratSynth Group is first to be established in the East African region that is considered regularly prone to emergency aid needs owing to frequent droughts, floods and insecurity situations particular those caused by terror groups such as Al-Shabaab and hence it is felt that the region would greatly benefit from the initiative (Andrevski,, et al, 2016). Thus, this report serves to provide the strategic advice in a bid to ensure that the two organizations have enough background information concerning the region. PESTEL ANALYSIS The external environmental factors that will have an impact on StratSynth’s operations include; Political Factors Countries in East African region are all characterized by a presidential system of government with the president being the head of state and the commander in chief although variations may occur from one country to the other. Though bedeviled by a lot of challenges, the countries can be described as constitutional democracies with elections being held regularly although their credibility is questioned in some countries such as Kenya, Uganda and Burundi. The countries can be described as relatively politically unstable. For instance, elections in Kenya were disputed in 2007 where about 1,300 people lost lives (Baumgartner, 2014). The Rwandan and Burundian genocides were also associated with political instability. Countries such as Somalia do not have functional governments while South Sudan is currently experiencing civil strife which has seen such countries as Kenya host thousands of refugees in its refugee camps. The East African region could also be described as relatively insecure with political wars happening in such countries as South Sudan and Burundi. On the other hand, terrorist groups such as Al-Shabaab have made countries such as Somalia ungovernable while neighboring countries such as Uganda, Kenya and Tanzania have lost many people to the group with its activities having a great negative impact on tourism activities in the region though great strides have been made in countering terror threats(Boateng, et al, 2016). Economic factors The East African region has of late been experiencing rapid economic growth with rates being above the global average. The most notable countries in this respect include Tanzania with over 7% growth rate, Uganda, Kenya and Rwanda. However, the effects of the growth are rarely felt by the normal citizens with citizens in arid regions always being hunger stricken. The economies are agricultural based and hence natural calamities such as drought or floods greatly affect production and hence the region frequently needs food aid (Buckley and Casson, 2016). The situation is worsened by high interest and inflation rates which make basic commodities expensive hence making the drought situation more severe while making finance expensive. Social-Cultural factors The region has a high population of over 150 million people from more than 100 ethnic groupings with differing cultural beliefs which need to be put into consideration by organizations like StratSynth need to consider if their mission is to succeed. Although most of the people have adopted western living styles, some communities like the Maasais of Kenya and Tanzania and other pastoralist communities still cling to their nomadic lifestyles (Crawford, 2016). It is also worth noting that the traditional beliefs, health awareness and some hostile beliefs may hinder operations of organizations like StratSynth and hence there is need to adopt a proper policy to neutralize this. Technological factors Though the region cannot be described as technologically advanced, great strides have been made of late. Most of the countries have 4G network connections with great strides being made in IT departments. With exception of countries such as Somalia, South Sudan and Burundi, the other countries have adopted e-learning and e-government services with countries such as Kenya and Rwanda equipping their schools with the latest computer labs and instruments. Rwanda for instance has a functioning Laptop production factory and has a sound IT policy (Ferreira, et al, 2014). On the other hand, major inventions such as M-Pesa which is a mobile money transfer service have taken place in the region. Legal Factors There are no major legal handles for operation of non-governmental organizations such as StratSynth which are seen as an important partner in government’s development agenda. However, it is worth noting that corruption levels which are relatively high in most countries in the region at times hinder the application of justice as well as enforcement of contracts. Environmental factors The countries are also characterized with weak or no enforcement of environmental laws and hence they have been plagued with environmental pollution. However, it is worth noting that countries such as Rwanda are an exception where enforcement of environmental laws has been seen to work (Mwangi, et al, 2014). However, organizations such as StratSynth have to comply with various laws and regulations put in place by various environmental regulatory authorities in the region. StratSynth Five Forces Analysis They include; The power of large customers- Relatively low The NGO will provide services and products that are of a social character and which will be based on specific skills. This will have the effect of diminishing the impact of the consumers of the services since they do not have a say as to how the service is provided. The power of large suppliers- High The technology used in producing the Pouncer Drone and other facilities for rapid aid delivery belongs to developers who are presenting the innovations to the conference and hence have great say as to whether StratSynth’s mission by providing the technology to StratSynth. On the other hand, the donor who will fund the StratSynth initiative can also be seen as its suppliers since they supply finance and heave high power as they are likely to set certain levels of criteria that StratSynth must meet for instance in order to access funds. The level of rivalry among the organizations in the industry- Low StratSynth’s initiative is likely to be the first of its kind in the East African region and is in fact aimed at facilitating the activities of other NGOs who may be involved in providing food and other form of aid in conditions of emergencies hence complementing their efforts as opposed to being threat to them (Nicholson, 2014). The barriers to entry in the industry-Low Since StratSynth is involved in a legal initiative, I do not foresee any barrier to its entry in the East African region. The threat of substitute products- Low StratSynth specifically focuses on rapid aid delivery through such initiatives as the Pouncer Drone among others and thus complements emergency aid efforts. Currently, no other organizations offering the same services in the East African region. The Business Level Resources and Capabilities Required for the StratSynth Mission They include; i) Tangible assets –This will include the physical location of the mission’s offices including regional offices from where its services will be offered. In addition, the mission will need financial resources and human assets with which it will be run. ii) These are the non-physical and non-financial assets such as the copyrights and the relationships StratSynth needs to establish with other organizations deemed key to the success of StratSynth. iii) Capacity and capabilities to turn StratSynth resources into customer value. The five organizations with the resources and capabilities with which StratSynth may engage using Corporate Level Strategies StratSynth will need to work with organizations that will facilitate its mission if it is to be successful since its mission cannot succeed unless the facilities are utilized. Consequently, the following organizations are considered important to the achievement of StratSynth mission which would be achieved through the organizations having access to StratSynth facilities and hence delivering aid more rapidly; UNICEF This is an organization that works in cooperation with governments and non-governmental organizations in saving and protecting the world’s most vulnerable children and works to ensure that children rights, healthcare, immunizations, nutrition, access to safe water and sanitation, basic education, protection and emergency relief are provided to such children (Perez, et al, 2016). Project Hope Project hope delivers essential medicines and supplies, volunteers and medical training to prevent disease, promote wellness, respond to disaster and save lives around the globe. Africare The organization also delivers emergency assistance to those in need especially the hunger stricken and in flood and drought situations. Doctors without borders The organization is mainly involved in delivering medical aid to people worldwide where the need is greatest, delivering emergency medical aid to people affected by conflict, epidemics, disasters, or exclusion to healthcare. Opusa Operation USA is also involved in delivering aid to emergency situations. Establishing an Alliance It is recommended that a non-equity alliance be established between StratSynth and each of the above organizations whereby they would be allowed use of StratSynth’s facilities described above at a fee to necessary to ensure StratSynth’s mission is sustainable and successful. Interest in producing the facilities There is need to include these firms in the corporate strategic relationships since StratSynth does not have its own technology to provide the facilities to ensure that the facilities are readily available to StratSynth at all times hence ensuring the success of the initiative. Organization Structure The above individuals will play the following roles; Executive director – The executive director will be responsible for the overall responsibility for managing the day to day activities of StratSynth and for the overall direction in which StratSynth moves. Administrative manager- He will oversee the support operations of the organization while ensuring efficient application of resources throughout StratSynth. Finance Manager –He/she will be responsible for the financial health of StratSynth while developing strategies and plans for StratSynth long-term financial health (Shabanova et al, 2016). Programme manager- he/she will be responsible for managing the various projects StratSynth will be involved in to ensure their success. Communications and dissemination manager- He/she will be responsible for conveying StratSynth’s internal and external messages. Human Resources Manager-He will be responsible for planning, directing and coordinating the human resources functions of StratSynth. Mission StratSynth’s mission is to ensure no one dies in emergency situations because aid failed to reach them on time. Vision To harness technology in facilitating rapid delivery of aid to those in need of emergency aid within the East African region. Position statement StratSynth will collaborate with organizations with similar mission to facilitate quick delivery of aid wherever it is needed within the East African region. StratSynth aims to complement the activities of organizations delivering aid in emergency situation by providing means of rapid aid delivery and as such sees them as partners and not competitors in the achievement of its mission (Vismara, 2016). 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. The Evolution of Charity Care Programs to Support Enrollment in Health Coverage. Center for Health Care Strategies. July. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), pp.32-45 Ferreira, M.P., Storopoli, J.E. and Serra, F.R., 2014. Two decades of research on strategic alliances: analysis of citations, co-citations and themes researched. Revisit the Administration Contemporaneous, 18(SPE), pp.109-133 Mwangi, E., Wetterhall, F., Dutra, E., Di Giuseppe, F. and Pappenberger, F., 2014 Forecasting droughts in East Africa. Hydrology and Earth System Sciences, 18(2), p.611 Nicholson, S.E., 2014. A detailed look at the recent drought situation in the Greater Horn of Africa. Journal of Arid Environments, 103, pp.71-79 Perez, M., von Schnurbein, G. and Gehringer, T., 2016. Comparative research of Non-Profit Organisations: a preliminary assessment (No. 9). CEPS Working Paper Series. 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