StratSynth Group -Strategic Management Assignment Essay Example

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    Management
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StratSynth Group -Strategic Management Assignment

1Introduction

At the moment, the humanitarian community faces a lot of challenges in aid delivery (Whiting & Ayala-Öström, 2009). This is due to the rising number of disasters and the wider implications that they have. Through innovations, it is possible to address these issues and mitigate some of the problems faced in aid delivery. Drought and war in some countries in Eastern Africa is a common occurrence and delivery of aid to these areas should be a priority (Nicholson, 2014). Creation of StratSynth as a permanent aid delivery is a vital move in addressing the current challenges in aid provision and delivery. This is a corporation which is being formed at the time when there are several countries in need of aid. This is especially in the Eastern Africa region where several countries are facing war, drought and famine. This response is aimed at providing strategic advice for the creation of a permanent aid delivery organisation known as StratSynth.

2Background to the situation

When faced with crisis such as drought, famine or war among other calamities, the response is slow in most cases due to aid delivery challenges. For example, the drought crisis in East Africa has been met with a slow donor response (Ververs, 2012). Aid delivery is a major problem in the developing countries. This is especially due to poor infrastructure, war and logistic challenges. Disaster response in countries where there is war or poor infrastructure is always a major obstacle for the humanitarian organisation. Improving the humanitarian aid delivery helps a lot in long term outcomes and a sustainable aid delivery (Whiting & Ayala-Öström, 2009). Melinda Gates have come up with the idea for a permanent aid delivery organisation. This is a corporation which has a mission to acquire, deliver and operate essential life support items. StratSynth Group will be designed to meet this aim and also establish long term recovery and rehabilitation of the stricken nations.

3A PESTEL analysis

PESTEL analysis acts as an opportunity for the corporation to analyse its external business environment. It will give a bigger picture of understanding in the areas of operation (Gillespie, 2007).

3.1Political

The political factors which include the governments’ regulations, legal issues and rules will have an impact on StratSynth Group. Countries of operation such as Somalia and South Sudan have long been involved in civil wars which will have an impact on the corporation operations (Beamon & Kotleba, 2006). With the high risk of unstable governments, it is important for the organisation to have measures in place to work in the region (Gillespie, 2007).

3.2Economic

StratSynth Group will be working with the developing countries with poor economy. These countries have a low GDP and their economic growth in most cases is unstable. The economic conditions have an impact on the organisation capital (Gillespie, 2007). StratSynth Group will have to face high level of inflation as they set their operations in the unstable countries. Moreover, the selected countries of operations experiences high levels of corruption which will have an impact on the corporation operations in the region.

3.3Social

The countries selected by the corporations have diverse cultures and demographics. This will have an impact on the public level of awareness, health consciousness and needs (Gillespie, 2007). The region has high birth rates and high child mortality. With high levels of unemployment, it may become easy for the organisation to gain human resources. StratSynth Group will be expected to operate based on the cultural expectations and norms.

3.4Technological

The level of technology uptake in the low developing countries is still below the global average. In some areas of operations, StratSynth Group may have to face challenges in getting phone signals. There are also issues with low internet connectivity. Working together with project Loon can help StratSynth Group deliver services more effectively through access to internet.

3.5Environmental

With most of the countries of operation suffering from drought, the environment has been negatively affected. Some of the countries of operations such as Somalia and some parts of the East African region are semi-arid (Shortland, Christopoulou & Makatsoris, 2013). This is a region that has been highly affected by global warming. The community have to be engaged in environmental conservation (Gillespie, 2007).

3.6Legal

In some of the countries experiencing civil war, legal framework may be poor. Some areas of operations have been under civil war and regime change which makes it hard to have appropriate legal systems in place. StratSynth Group will have to ensure that theory follow the laid legal framework in their operations (Gillespie, 2007).

4A Five Forces analysis

Porter 5 forces are vital in determining the business competitive environment (Porter, 2008). This will help in determining the attractiveness of the corporation in its area of operation (Dobbs, 2014).

4.1Threat of substitutes

As an aid delivery organisation, threat to substitutes is not a major source of concern. This is due to fact that aid organisations works together for a common goal. The ability of the beneficiaries to switch from one aid organisation to another is minimal since aid is aimed at communities in need. Despite this, the corporation has to differentiate itself from other aid organisations through effective and efficient delivery.

4.2Threat of new entries

At the moment, there is shortage of aid in the regions affected such as East Africa. The entry of new aid organisations is highly encouraged to help the affected communities. The entry of new firms is not blocked by the existing aid organisations. Threat of new entrants is high though not a threat to StratSynth Group. The group depends on Giving Pledge for funding hence not competing for resources with most of aid corporations (Pledge, 2010).

4.3Bargaining powers of the customers

In a business environment, the bargaining powers of the customers determine the pricing. In the case of aid corporations, customers are the people who are in need. They do not charge prices on the goods and services since it is a charity. The bargaining power of the customers is low due to large population in need of aid.

4.4Bargaining powers of the suppliers

StratSynth Group depends on the Giving Pledge for donations to buy supplies. The corporation aims at doing the distribution and delivery of aid hence will reduce the number of suppliers for the services. Despite this, StratSynth Group will have to depend on suppliers for food stuffs and other necessities. The bargaining powers of the suppliers are medium.

4.5Competitive rivalry

Competitive rivalry is determined by the number of businesses in the market and their capabilities (Porter, 2008). StratSynth Group will be providing aid delivery alongside organisations such as UNICEF, Red Cross, WHO, Oxfam, Action Aid and CARE (UNODC, 2017). These organisations have been operating in the region for a long time and have already established their distribution network. Since the charity industry is not based on profits, there is low competitive rivalry.

5Recommended business level resources and capabilities for the StratSynth mission

Resources and capabilities are required for corporation success. This is for StratSynth Group to attain its objectives in delivery of aid in the hardship areas. First, the corporation is expected to have adequate funding to carry out their operations. Being funded by Giving Pledge, StratSynth Group has adequate access to financial resources (Pledge, 2010). The organisation must design its logistic network for the areas of operations. Some of these areas are remote and required enhanced means of transport. This may require adopting technology to aid in logistics. The corporation is expected to have adequate and experienced manpower to operate in the region. This will help in enhancing aid delivery and critical knowledge of the locations. The corporation is required to have adequate experts in procurement to ensure supplies are attained in time and cost effective manner. The management capabilities are critical to ensure optimum functionality.

6Five (5) organisations with the resources and capabilities with which StratSynth may engage using Corporate Level Strategies.

Using the corporate level strategies, StratSynth Group will have to form alliances and engage with organisations which have complementary capabilities. These organisations are: Red Cross, WHO, Oxfam, Action Aid and CARE (UNODC, 2017).

  • WHO-WHO is concerned with the public health internationally. It has been on the forefront in assisting combat health challenges globally (UNODC, 2017). Collaboration with WHO should be done through a non-equity alliance with a goal to address health challenges in developing countries while each partner remains independent (Waldman, 2001).

  • Red Cross- Red Cross has been operating globally and is well versed with the operations in the developing countries (UNODC, 2017). A close collaboration with the Red Cross will make it possible for StratSynth Group to deliver aid easily. The collaboration should be a strategic partnership based on logistics.

  • Oxfam-As a global humanitarian organisation, it would be important for StratSynth Group to engage Oxfam. A strategic alliance can help a lot through working together with a goal of eliminating poverty in the long term.

  • Action Aid- Action Aid has been working hard for poverty elimination globally. This is an ideal partner for Action Aid as they start operating in the East African region (UNODC, 2017). A strategic non-equity alliance will help both to retain their identities while working for a common goal.

  • CARE- Since StratSynth Group has been aiming at long term and sustainable development, it would be vital to work together with CARE. This is an impartial organisation that has been helping different countries affected by crisis globally (UNODC, 2017). The collaboration should be based on a non-equity alliance where each partner remains independent but works for a common agreed goal on sustainable development.

7Advice on Pouncer Drone, the Spider Light Strike Vehicle and the Rokon two wheel drive motorcycle

Technological innovations have the capability to enhance aid delivery by the humanitarian organisations. Melinda Gates interests are based on critical aid logistics in the remote and war torn areas. StratSynth Group should form strategic partnership with the firms owning these technologies. Pouncer Drone can help a lot in aid delivery to the remote areas especially where no road or rail infrastructure exists. Through a strategic non-equity alliance with Pouncer Drone, it would be possible to deliver air to remote communities and war torn countries. Rokon 2 wheel off-road motor cycle can help a lot in accessing remote regions with poor road infrastructure or areas where roads are nonexistence or damaged. The alliance should be non-equity where each organisation retains their identity. The Spider Light Strike Vehicle is also important in accessing remote regions. StratSynth Group should consider non-equity alliance with the firm to enhance aid delivery.

8Organisational structure at StratSynth Group headquarters

  • Founders- Melinda Gates and Priscilla Chan are the founders and Chief Executive officers overseeing the running of corporation.

  • Secretary general- Acts as the chief administrative officer. Secretary General will be expected to manage the databases and planning for the corporation.

  • Chief Finance Officer-Manage the corporation funds and also crowd fund for aid.

  • Chair of supervisory board- The main role of to supervise the operations of the corporation as the board chair.

  • Logistics manager- the main roles is to ensure that aid supplies arrives at the required destination in safe and efficient manner using technology and other means.

  • Field manager- To oversee the distribution of aid in the affected regions.

8.1Vision, Mission and Positioning statement

StratSynth Group mission is to enable acquisition, delivery and operation of essential life support items. The vision for the StratSynth Group is to become a permanent aid delivery corporation that is capable of stabilising developing regions. This is through provision of vital aid to the affecting and providing long term solutions. StratSynth Group is positioned as a non-profit aid corporation helping in long term recovery to the affected countries. The corporation establishes itself as a unique and innovative Humanitarian Corporation with a long term focus and innovation which sets it apart from other corporations. This is attained through use of available technology and collaborating with like-minded organisations.

9Conclusion

StratSynth Group is a noble cause which Melinda Gates and Priscilla Chan should start. This is a corporation that can assist in long term solutions to aid delivery, sustainable economic development in addition to helping the current East African Drought Crisis. The organisation has the capability to enable acquisition, delivery and operation of essential life support items to the affected areas. This should be done in close collaboration with innovative solutions such as: Pouncer Drone, the Spider Light Strike Vehicle and the Rokon two wheel drive motorcycle providers and related organisations.

References

Beamon, B. M., & Kotleba, S. A. 2006, ‘Inventory management support systems for emergency humanitarian relief operations in South Sudan’, The International Journal of Logistics Management, vol.17, no.2, pp.187-212.

Dobbs, E. M. 2014, ‘Guidelines for applying Porter’s five forces framework: a set of industry analysis templates’, Competitiveness Review, Vol.24, no.1, pp.32-45.

Gillespie, A. 2007, PESTEL analysis of the macro-environment, Foundations of Economics, Oxford: Oxford University Press, USA.

Nicholson, S. E. 2014, ‘A detailed look at the recent drought situation in the Greater Horn of Africa’, Journal of Arid Environments, vol. 103, pp.71-79.

Pledge, G., 2010, Forty US families take giving pledge: Billionaires pledge majority of wealth to philanthropy [press release]. Retrieved May 24th, 2017, https:// givingpledge. org/&ontent/media/PressRelease_8_4. pdf.

Porter, M. E. 2008, ‘The five competitive forces that shape strategy’, Harvard business review, Vol.86, no.1, pp.25-40.

Shortland, A., Christopoulou, K., & Makatsoris, C. 2013, ‘War and famine, peace and light? The economic dynamics of conflict in Somalia 1993–2009’, Journal of Peace Research, vol.50, no.5, pp.545-561.

UNODC. 2017, List of all available NGOs, Unodc.org, Retrieved May 24th, 2017 https://www.unodc.org/ngo/list.jsp

Ververs, M. T. 2012, ‘The East African food crisis: did regional early warning systems function?’, The Journal of nutrition, vol.142, no.1, pp.131-133.

Waldman, R. J. 2001, ‘Public health in times of war and famine: what can be done? What should be done?’, JAMA, vol.286, no.5, pp.588-590.

Whiting, M. C., & Ayala-Öström, B. E. 2009, ‘Advocacy to promote logistics in humanitarian aid’, Management Research News, vol.32, no.11, pp.1081-1089.