Strategic Analysis for StartSynth Samples for Students †MyAssignmenth

Question: Discuss about the Strategic Analysis for StartSynth. Answer: Introduction The paper discusses the strategic potential of a non-profit organization, StartSynth in providing essential aid in the worst affected areas around the world. The primary goal of the organization is to provide essential items such as food, water, medical supplies and many other basic products to people suffering in East Africa. Funded by Giving Pledge, the Australian company is aimed to address some of the grave and pressing problems around the world. As the United Nations has warned of extreme drought condition in East Africa, the company has decided to provide essential aid to the affected regions. However, the company would have to conduct in-depth research of the targeted region in order to formulate effective strategies to achieve the mission. The report divides the entire strategic plan into different sections involving PESTEL analysis, Porters five forces model, and value chain analysis. The vital information gathered helps in determining the ways and means to overcome the chal lenges in the targeted region to accomplish the mission. It is hoped that this report would shed light on some tangible problems aid organizations face on their humanitarian mission. Background Rapid aid delivery has been a constant concern for companies supporting underprivileged or poor parts of the world. There are many countries in the world struggling to sustain proper living conditions owing to weather calamities or long running warfare situations. Of all, East Africa has been battling with the worst famine condition in the last six decades. The back to back seasons of no rains combined with rising food prices, and limited humanitarian accessibility has exacerbated the situation resulting in extreme shortage of food and water, extreme cases of malnutrition and massive displacement across the region. As per UN estimates, there are over 20 million people suffering from extreme starvation and various other diseases (Karimi, 2017). In specific, the United Nations has expressed grave concerns over the rapidly worsening condition of some parts of southern Somalia, Somalia, Yemen and Northeast Nigeria. Many national and international aid organizations have come to the rescue of the people by supplying essential items including food, water, medical supplies, clothes, and more. StratSynth Group is one such corporation based in Australia which will work in the direction of proving rapid aid to the flood and disease stricken regions of the world due to war or economic crunch. Funded by Giving Pledge, the organization is currently aiming to meet the basic needs of people living in the drought hit regions of East Africa. Given the severity of the situation as alerted by the UN, the organization is looking forward to map the entire conflicted region and figure out a blueprint to achieve long term recovery and rehabilitation of the region. As accessibility has been a constant roadblock for aid organizations, people continued to suffer in despicable conditions. However, with the introduction of advanced technologies, aid organizations have been able to make a breakthrough to reach out to remote areas to provide the much desired assistance. PESTEL analysis Companies are influenced by a number of factors when they start operating in a market. Be it domestic or international, external factor impacts an organization both directly as well as indirectly. PESTEL analysis is used in order to figure out the impact of macro environment on an organization. The factors are namely political, economic, social, technological, environmental, and legal. The PESTEL framework is utilized to combine all the macro-environment factors to provide the much desired information to the market strategists to explore the options of growth and risks (Witcher and Chau, 2010). Lets delve into the impact these factors would have on the organization as it enters East Africa: Political Factors The political factors are linked with the operating government regulations and legal issues that are companies expect to adhere to in order to operate in the host nation. Given the political mayhem in most of the countries across East Africa, the company would have to remain cautious about its primary approach to provide the aid services. The gross failure of the existing political system to control the spiralling situations in East Africa has left with hardly any option for companies to operate comfortably. The long running conflicts have ruined the infrastructure of the region, thereby impacting the connectivity to the worst affected regions. The company must remain wary of the insurgents as they tend to hinder the progress of rehabilitation work in the region. Economic factors The economic factors are primarily linked with the matter concerned with the cost parameters of a firm (Witcher and Chau, 2010). The economy of the region is in shambles despite having rich source of resources. Though Kenya is leading the GDP growth in the region, other countries such as Tanzania, Rwanda, Uganda, South Sudan, Burundi and many others are struggling with numerous problems. The combined Gross Domestic Product of EAC stands at US$ 146 billion (as in 2016), thereby reinforcing its geopolitical significance (www.eac.int, n.d.). The economy is highly dependent on agriculture as industrial sector has hardly seen any development for years. However, it makes Kenya and other regions all the more vulnerable to global economic uncertainty. And with poor rainfall, the region has been badly affected with people living on the edges. There is massive shortage of food, water, medical supplies, jobs and much more. As the company is not looking for financial gains, the GDP factor does n ot hold much importance. But the company must be prepared to operate in a constrained economic environment where they are likely to face many challenges. Social factors The East African Community (EAC) has around 20 countries in total and they all share similar resources and trade profiles. The EAC homes around 150 million citizens including 22% of the urban population (www.eac.int, n.d.). If the IMF estimates are to be believed, then the total population of the EAC is around 130 million with a GDP of $80 billion (2012). All the countries share regional and trade commonalities which make them all susceptible to similar problems. For instance, the dependency on agriculture is widely spread in the region, making it all the more sensitive to fluctuations in the agriculture market. The region is plagued with all sorts of problems such as class difference, poverty, gender bias and much more. Though people speak in English language, there are many regions where local languages are more prevalent. The company would have to make suitable arrangements to adjust with the social and cultural set up of the place to avoid any sort of backlash. They may have to t ake the help of the local citizens to target the most affected regions. Technological factors Though technology has made huge leaps around the world, the EAC has been late to embrace it like other parts of the world. Of all the countries, Kenya has been in the front to acknowledge the importance of technology in improving the existing situation of the industry. However, the other countries are way behind in creating much scope for the IT industry to penetrate, let alone flourish. In fact, most of the companies are reluctant to enter the region given the overall landscape of the region. StratSynth would have to rely on its own IT tools and other devices to improve its services and provide better help to the affected regions. There are many digital tools which help in providing suitable medical care to the patients and it can facilitate education for the local citizens as well. There is huge opportunity for the company to introduce technological assistance to rehabilitate the people. However, lack of IT infrastructure in the region makes it all the more challenging for the comp any. Environmental factors It has become an important factor over the years as companies have realized the severity of global warming. However, they tend to figure out a balance between economic, environmental and social performance. Marketers would have to explore the connection between environmental factors and financial performance to integrate sustainability principles in its core fabric. Herein, the StratSynth would have to ensure that its aid services do not cause any environmental harm. Also, the company could make use of green technology to run its business operations in the region. However, to look on the brighter side, it can educate the citizens about cutting down pollution for better living conditions. Legal factors Legal factors are required to be studied to fall into the line of the existing norms under the law. The legal norms are very tedious in Kenya, thereby prohibiting companies to explore the potential in the region. Most of the official procedures are tedious and consumer lot of time. This is one of the primary reasons of small and medium enterprises (SMEs) badly affected by the poorly written legal regulations. Unfavourable legal environment discourages potential investors and badly impacts the existing ones (Wanjohi, 2009). Thus it becomes all the more essential that the government creates a conducive environment for companies to invest in the poor region. StratSynth has its main office based in Australia, so it need not register the office in the region. But it would certainly have to dig out more information about any permission from the local authorities to operate as aid provider in the region. Porters Five Forces analysis There are many aid providers working to provide the much desired help the war-stricken regions in East Africa. The providers include many renowned international organizations that are dedicated to provide sustainable solutions to stabilise the situation in and around the war-stricken region. StratSynth is a new organization and hence will have stiff competition from the already active organizations. Porters five forces model helps in determining the real nature of the market competition in East Africa. based on microeconomics, Porters (1985) five forces analysis is considered to be among the most sought after strategic frameworks applied for business enterprises today (Pringle and Huisman, 2011). Hua (2011) asserted that success of a firm depends on its strategic positioning under the impact of operating market forces in its industry and its inherent capacity to sustain against rising competition. The five forces are as follows: Threat of new entrants: East Africa region is gravely hit by drought and extreme situation of food and water shortage. There are many international organizations working to provide the essentials and medical aid to the affected regions. There is more help needed in the region and hence there is no direct threat from any other aid provider. In fact, it may actually provide assistance in giving direction to the mission. Bargaining power of suppliers: Suppliers can be defined as the source agencies providing essential raw material, information or knowledge to produce goods and services (Martinez and Wolverton, 2009). StratSynth would have to rely on the local suppliers to provide the essential items. The country is battling with severe poverty, and all the essentials are heavily priced. They are likely to charge more on the essential products and other support services. In this context, the company may have too little say in the price. Bargaining power of buyers: In any industry with multiple options, buyers or customers will have more choices and hence their buying power soars (Martinez and Wolverton, 2009). As the number of aid organizations increases in the region, the suppliers are foreseeing financial profit to run their business. As there are limited job opportunities, the local citizens provide paid assistance to fulfil their needs. It in fact encourages creation of new startups to provide paid assistance to the aid organizations in the foreign land. StartSynth though is a new set up in the region, it has got huge financial backing to accomplish the long term goals. As the local organizations need funds, non-profit organizations like StartSynth would hold an edge to propose the right price for products and suppliers. Threat of Substitutes: There is no real substitute to aid organizations at the moment. Though advanced technologies could improve the accessibility issues, it wouldnt eliminate the need of actual people working on the ground level. The war affected regions need a large number of volunteers to provide direct help to suffering people and help them in rehabilitation. So there is no major threat from advanced technology solutions as they provide assistance and does not erase the need of actual aid organizations. Rivalry: Rivalry among firms can be reflected in terms of price, new products, marketing campaigns and services (Porter, 2008). However, StartSynth is not competing on any of these grounds and in fact, is more dedicated to figure out ways and means to provide the necessary aid to the affected people. These market dynamics provide relevant information for StartSynth to formulate its strategies within the market dynamics. Value Chain Analysis for business level resources and capabilities StartSynths mission is to provide rapid aid of essential items to the war-stricken regions of East Africa. However for that, the company would have to strengthen itself on various grounds such as human resources, key resources etc and gain other capabilities to stand a chance in the competitive market. Value chain analysis is another strategic tool to formulate strategies based on the value added by various organizational activities. It provides the relevant information about activities adding to the competitive advantage for a firm. Human Resources: StratSynth would have to hire skilled and experienced people to manage the internal operations as well as for field work. Currently, the organization needs at least 50 people to initiate the planning, organizing, and effectively execute them on the ground level. Marketing activities: The Company needs to be cautious of the latest business practices to promote the business services. As its a non-profit organization, it requires promotion on a different level given its main agenda being rehabilitation of suffering people. Services: The Company will operate in impoverished regions in developing countries around the world. Thus it has to improve its services to connect with the suffering people, and reach out to them in the best possible way. The company would have to provide requisite training to its employees to help them work in the affected areas. Inbound logistics: There are massive logistics involved in acquiring, and distributing the aid from the source to the target location, i.e war-affected regions in East Africa. The company needs huge storage space to stock all the essential items and supplies in a safe and secured condition. They ought to have proper quality checks and tests to ensure safe supplies to the affected people. However, for that the company will need to sign up contracts for regular supply of all the essential products. Outbound logistics: This is possibly the most challenging part of the logistics to transport the essential items to the targeted location. It requires lot of information to find the best routes and modes of transport to ensure timely delivery of essential items. Given its a costly proposition and an operational challenge, the company needs to make a consolidated plan to effectively execute rapid transportation of essential items to far off areas around the world. Identification of 5 Organizations for Corporate Level Strategies The 5 organizations that have been identified with whom corporate level strategies can be applied and a partnership can be done to work towards the provision of extensive aid to countries are as follows: Care: the first organization in focus is Care. This not for profit organization has been focusing on the provision of aid to a number of countries in need for the same. The organization has been lending a hand to the Syrian and African countries to improve their living conditions, get access to education, providing aid in terms of food and sanitary napkins and offering medical aid to reduce the medical problems in these countries. The organization poses a strong opportunity for the StartSynth to work together and provide aid to countries in dire need of support and the basic necessities of life (Care Australia, 2017). Australian Red Cross: the second company of focus is Australian Red Cross that focuses on the provision of medical and food aid to countries that have been disturbed considerably after many wars in the past. It has been learnt that a number of companies are still suffering from problems of medical and food provisions after the series of wars that have been witnessed by the world in the past. This non profitable organization has been offering considerable amount of support to numerous countries and their people in the past. It invites volunteers and providers care to individuals across the globe. Red Cross has offered relief in times of varied crises and is among the top most NGOs in the country today (Australian Red Cross, 2017). APHEDA: this is the third company of focus that can be used for corporate level strategies and partnerships to accelerate the amount of opportunities in terms of medical and food aid that can be provided to countries and their people across the globe. This organization has been engaged in promoting the needs of the people and giving them the courage to stand up for their own rights. A number of success stories can be read and witnessed over the website of the organization. The contributions are never ending and they are known for consistently inviting new applicants for volunteering to make a change in Asia. It has also been offering employment opportunities and developing the skills of individuals to help them make a suitable living for themselves in their respective countries (APHEDA, 2017). Rotary International: this is another reliable NGO that can be approached for a strategic corporate partnership with StartSynth. The Organization primarily focuses on promoting the interests of South Pacific countries and Philippines. It has offices in these countries that tend to report the existing problems and the dire needs of the people that are later catered to after a strong contribution from the headquarters. It has been fighting terrorism and other health related issues in the under developed and developing countries. Africa has been a strong focus of the organization until now and it has worked on a number of programs to support the people largely (Rotary, 2017). iCare: this is the fifth and the last organization that has been identified to be ideal for a corporate level strategic partnership to improve the conditions of the citizens of developing nations. Like StartSynth, the focus of the organization is also on the provision of medical and food aid to African countries and those who are disturbed due to diverse problems that arise from time to time. The organization not just assists women and youth of these countries but also the governments to decrease poverty and improve the level of education in these countries. iCare has made considerable progress in countries like Uganda and their contributions have been deemed as exemplary (iCare, 2017). Organisational Structure at StartSynth Headquarters group Every successful business has a very strong organizational structure at its backdrop. Such an organizational structure is based on the company strategies. Following is the organizational structure of Syntrat Headquarters group comprising of 6 individuals. Command Chain- This is a chain which starts from top of the organization consisting of the company CEO and goes all the way to the very bottom of the organization. Under this structure it is clearly mentioned about who will be reporting to whom in the organization. In case of this company it is the Ceo, Vice President, Director and head managers of various departments which comprises this Chain of Command. Their mail job role is to take important administrative decisions. Control Span-These are the various subordinate members in the organisations who effectively manages the day to day operations of the firm. If in a company there are more subordinates than its supervisors it signifies that it has a wide control span. Centralization - This part of the entire organizational structure deals with the decision making in the firm. This is the centralised aspect with the CEO in the middle. Specialisation- In this structure employees are further categories as per their specialists. Based on their area of expertise they specialize in a particular area of work. This affects the productivity of the firm in a highly positive manner. Formalization- A formal structure is maintained in this company. It is the area which decides how each job area will be structured in the firm (Devaney, 2014).Such a formalised structure also covers employees tasks being governed by rules. mechanisms and governance. Departmentalisation- Jobs here are grouped together to form departments. Little or no interaction occurs in between different departments. Here job in each department is autonomous in nature. In this organisation, departmentalisation is based on rigid structures. Vision and mission statement for the StartSynth Group The vision and mission statement for the company have been carved out in the following few paragraphs: Vision Statement: The vision of the company is to offer aid of all types and nature to countries that need it the most. The organization strives to become the largest supporter of under developed and developing countries in times of distress and natural calamities especially. Mission Statement: the mission statement of the company is to join hands with some of the leading organizations in the same industry and offer reliable solutions in terms of aid to countries like East Africa that are the most affected by Famine since the past few decades. We thrive to bring about revolution in terms of extending a helping hand towards people in need irrespective of the caste, skin color, religion, gender or any other disparity. References APHEDA. (2017). About Us. Union Aid Abroad APHEDA Official Website. Available at: https://apheda.org.au/about-us/. Last Accessed: 26th May 2017 Australian Red Cross. (2017). About Us. Australian Red Cross official Website. Available at: https://www.redcross.org.au/about-us.aspx. Last Accessed: 26th May 2017 Care. (2017). About Us. Care Official Website. Available at: https://www.care.org.au/ .Last Accessed: 26th May 2017 Eac.int. (n.d.).Overview of EAC | East African Community. [online] Available at: https://www.eac.int/about/overview Devaney, E. (2014). The 6 Building Blocks of Organizational Structure. Available: https://blog.hubspot.com/marketing/organizational-structure-building-blocks#sm.00013wzwww19bxensr86saina3k0j. Last accessed 26th May 2017. Hua, L.T. (2011). Sustainable competitive advantage for market leadership amongst the private higher education institutes in Malaysia, Journal of Global Management, 2(1), pp. 227- 251. iCare. (2017). About us. iCare official Website. Available at: https://www.icare.org.au/. Last Accessed: 26th May 2017. Karimi, F. 2017.UN: World facing largest humanitarian crisis since 1945. [online] CNN. Available at: https://edition.cnn.com/2017/03/11/africa/un-famine-starvation-aid/ Martinez, M. and Wolverton, M. 2009. Enriching planning through industry analysis. Planning for Higher Education, 38(1), pp. 23-30 Porter, M.E. 1985, Competitive advantage: creating and sustaining superior performance, The Free Press, New York, NY Porter, M.E. 2008, The five competitive forces that shape strategy, Harvard Business Review, 86( 1), pp. 79-93. Pringle, J. and Huisman, J. 2011, Understanding universities in Ontario, Canada: an industry analysis using Porters Five Forces Framework, Canadian Journal of Higher Education, 41(3), pp. 34-47. Rotary International. (2017). Home. Rotary International Official Website. Available at: https://www.rotary.org.au/en/Pages/ridefault.html. Last Accessed: 26th May 2017. Wanjohi, A. 2009.Challenges Facing SMEs inKenya.Available online at https://www.kenpro.org/challenges-facing-smes-in-kenya-and-the-efforts-in-progress/ Witcher, B.J. and Chau, V.S. 2010, Strategic Management Principles and Practice, Cengage Learning EMEA, United Kingdom