Strategic Analysis of an Organization

8/3/2019 Strategic Analysis of an Organization

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Baluchistan University of

Information Technology Engineering &Management Sciences.

SEHER OrganizationNGO

STRATEGIC MANAGEMENT

PREPAREDBY

Ateeq Ur rehman

Hidayat khan

Sardar Husain

Sanaullah tareen

Arsalan Aziz khan


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Imran khan

Table of Contents

PageTopics

3Introduction

3Vision, Mission

4The Five Forces Framework

5External Audit

6CPM-Competitive Profile Matrix

7External Factor Evaluation (EFE) Matrix

8Internal Audit

9Internal Factor Evaluation (IFE) Matrix

10SWOT Matrix

11SPACE Matrix12The Boston Consulting Group (BCG) Matrix

13The Internal-External (IE) Matrix

14The Quantitative Strategic Planning Matrix

(QSPM)

16Recommendations

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Introduction:

Society for Empowering Human Resource (SEHER) established on May, 28th

1998 and registered 1under Society Act 1860, by a group of youth sharing a

common aim and commitment to address human misery with a special focus on

vulnerable segment of society i.e. women, children, minorities, refugees,disable/abused and the poorest of the poor. SEHER, being a right based social

reformatory organization, adopts a holistic approach towards right based

development initiatives upholding the human rights.

SEHER uses rigorous approach by analyzing the various aspects that contribute

to oppression, injustice, violence, vulnerability, discrimination, abuse and

poverty in the society while treating the survivor (s) as subjects of the change

process.

SEHER is guided by a vision of a society where poorest of the poor,

marginalized, socially excluded and never reachable are empowered toovercome their miseries/poverty, social, political and economic burdens and

enjoy equal human rights and opportunities to lead a life of dignity and self-

fulfillment. To achieve such a gigantic task and multi-dimensional vision

SEHER as an NGO may not be the sole remedial force, it would need to pursue

the strengthening of intra-organizational capacities through partnerships,

alliances building, advocacy efforts, campaigns and program cooperation at

operational as well as policy levels.

SEHER believes in right based culture where norms and values of social justice,

guarantee of self-respect, availability of equal rights with equal opportunitiesand uniform road to the destination of development process for all segments of

society prevails. SEHER consistently adhere to make its contribution in

development of such culture.

Vision

A Prosperous and Violence Free Society

Mission

To empower the marginalized segment of the society to assert for their social,

economic and political rights

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The Five Forces Framework

The Threat of Entrants

Large established NGOs with strong Services identities such as United Nations,

MSF, ICRC, and some others do make it more difficult to enter and succeed

within the marketplace; new entrants find that they are faced with Service

competition from existing chain NGOs.

Utilizing Power of users

Low utilizing power of buyers due to cultural deference and law & order.

4

Suppliers

Substitutes

Buyers

Potential

entrants

Competitive

rivalry


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Bargaining power of suppliers

Bargaining power of suppliers within the Services industry would be relatively

small, unless the main things are easily available.

Threat of Substitutes

This could range from competitive rural areas to urban areas to door to door

services.

Competitive RivalryThe strength of competition in this industry is very high; the main rivals are

United Nations, MSF, and ICRC. They compete with international, national,regional, local.

External Audit:

Opportunities Threats

1. Growing health trends among

consumers

2. Globalization, expansion

in other countries (especially in

Afghanistan & India).

3. Diversification and

acquisition of other quick-service

NGOs.

4. Growth of the Services

industry.

5. Worldwide deregulation.

6. Free of cost Services that

will attract the customers (people).

1. There is big cultural

deference.

2. Peoples have

misperception about NGOs.

3. SEHER competitors

threatened market share of the

company both internationally and

domestically.

4. Anti-American sentiments.

5. Global recession and

fluctuating foreign currencies.

6. Low knowledge and lack

of awareness among the masses

about there economic and socialrights.

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CPM-Competitive Profile Matrix

SEHER ICRC MSF UN

Critical Success

Factors

Weight Rating Weighted

Score

Rating Weighted

Score

Rating Weighted

Score

Rating Weighted

Score

Charges 0.15 4 0.45 3 0.45 3 0.45 3 0.60

FinancialPosition

0.08 4 0.16 3 0.32 3 0.24 2 0.32

Consumer

Loyalty

0.10 4 0.20 3 0.40 3 0.30 2 0.40

Advertising 0.10 3 0.25 3 0.30 4 0.40 2 0.30

Service Quality 0.10 4 0.35 3 0.40 4 0.40 2 0.40

Innovation 0.15 3 0.30 3 0.45 3 0.45 2 0.45

Market Share 0.10 4 0.20 2 0.20 3 0.30 2 0.40

Management 0.07 4 0.26 3 0.21 3 0.21 3 0.28

Global

Expansion

0.15 4 0.15 2 0.30 3 0.45 1 0.60

Total 1 2.32 3.03 3.20 3.75

External Factor Evaluation (EFE) Matrix

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Key External Factors Weight Rating Weighted Score

Opportunities

Growing health trends among consumers 0.08 3 0.24

Globalization, expansion in other countries

(especially in Afghanistan & India).

0.12 4 0.48

Diversification and acquisition of other quick-

service NGOs.

.04 3 0.12

Growth of the services industry. .10 3 0.30

Worldwide deregulation .04 2 0.08

Low cost services even free services to attract

the customers (people).

.08 2 0.16

Workshops and seminars. .08 1 0.08

Threats

Cultural deference. 0.10 3 0.30

SEHER competitors threatened market share of

the company both internationally and

domestically

0.09 3 0.27

Peoples have misperception about NGOs. 0.12 4 0.48

Anti-American sentiments. .07 2 .14

Global recession and fluctuating foreign

currencies.

.04 3 .12

Low knowledge and lack of awareness among

the masses about there economic and social

rights.

.04 2 .08

Total 1.00 2.85

Internal Audit

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Strength Weakness

1. Provide best services, for good

cause and best reputation.

2. Have market share.

3. Strong global presence.

4. Specialized training formanagers and employees.

5. SEHER Plan to win focuses on

people, products, place, price and

promotion.

6. Strong financial performance

and position.

7. Creating of new branches.

8. Customer focus (centric).

9. Strong SEHER performance inthe global marketplace.

1. Some government restrictions.

2. High Staff Turnover including

Top management

3. Location is in unsafe area.

4. Legal actions related to health issues,

violence issues and Inco-operations from

police.

5. Lack of infra structure In Baluchistan.

6. Lower level employees are totally un

skilled.

Internal Factor Evaluation (IFE) Matrix

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Key Internal Factors Weight Rating Weighted Score

Strengths

Provide best services, for good cause

and best reputation.

0.12 4 0.48

Have market share. 0.10 4 0.40Strong global presence. 0.04 3 0.12

Specialized training for managers

and employees.

0.04 3 0.12

SEHER Plan to Win focuses on

people, products, place, price and

promotion

0.12 4 0.48

Strong financial performance and

position.

0.08 4 0.32

Creating of new branches. 0.06 4 0.24

Customer focus (centric). 0.06 4 0.24

Strong performance in the global

marketplace.

0.08 4 0.32

Weaknesses

Some government restrictions. 0.08 1 0.08

High Staff Turnover including Top

management

0.04 1 0.10

Location is in unsafe area. 0.04 1 0.04

Legal actions related to

health issues, violence

issues and Inco-operations

from police.

0.04 2 0.08

Lack of infra structure In

Baluchistan.

0.04 2 0.08

Lower level employees are

totally un skilled.

0.06 1 0.06

Total 1.00 3.16

SWOT Matrix

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10

Strengths Weaknesses

Provide best services, for

good cause and best

reputation.

Have market share.

Strong global presence.

Specialized training formanagers and employees.

SEHER Plan to win

focuses on people, products,

place, price and promotion.

Strong financial

performance and position.

Creating of new branches.

Customer focus (centric).

Strong SEHER performance in

the global marketplace.

Some government

restrictions.

High Staff Turnover

including Top

management

Location is in unsafe

area.

Legal actions related to

health issues, violence

issues and Inco-operations

from police.

Lack of infra structure In

Baluchistan.

Lower level employees

are totally unskilled.

Opportunities S-O Strategies W-O Strategies

Growing health trends

among consumers

Globalization,

expansion in other countries

(especially in Afghanistan& India).

Diversification and

acquisition of other quick-

service NGOs.

Growth of the

Services industry.

Worldwide

deregulation.

Free of cost

Services that will attract the

customers (people).

1. Focus on Plan to win to attract customers

and expansion in other countries.

2. Expansion in market share by more

investments in Asia especially Pakistan and

Afghanistan.

1. Minimize customerslosses by provide high value

of services on door step.

Threats S-T Strategies W-T Strategies

There is big

cultural deference.

Peoples have

misperception about

NGOs.

SEHER

competitors threatened

market share of the

company both

internationally and

domestically.

Anti-American

1. More control on branchesto maintain SEHER's reputation

and quality.

2. Make new projects andkeep innovation.

1. Serving the humanity

but with the help of

government to obey rules and

regulations.

2. hand shake with thetribal leaders to serve more

easily in tribal areas.


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SPACE Matrix

Financial Strength Rating Environmental Stability Rating

Return on investment 4 Rate of inflation -3

Leverage 4 Demand Changes -3

Net funding 6 Price Elasticity of demand -1

Investments 5 Competitive pressure -3

ROE 5 Barriers to entry new markets -3

Cash Flow 4 Risk involved in business -2

Average 4.67 Average -2.5

Y-axis 2.17

Competitive Advantage Rating Industry Strength Rating

Market share -1.00 Growth potential 5

Service Quality -1.00 Financial stability 5

Customer Loyalty -1.00 Ease of entry new markets 4

Control over other parties -2.00 Resources utilization 4

funds potential 5

Demand variability 3

Average -1.25 Average 4.33

X-axis 3.08

Directional vector point is :( 3.08, 2.17)

11

Conservative Aggressive

CompetitiveDefensive

FS

IS

C

A

ES


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The Boston Consulting Group (BCG) Matrix

The Internal-External (IE) Matrix

Strong Average Weak

3.0 to 4.0 2.0 to 2.99 1.0 to 1.99

High

3.0 to 3.99

Medium

2.0 to

2.99

12

Question Marks

Cash Cows Dogs

Relative Market Share Position

Industry

Sales

Growth

Rate

Stars

SEHER

I IIIII

IV V VI

VII VIII IX

SEHER

The IFE Total Weighted Score

e EFE Total

ighted Score


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Low

1.0 to 1.99

The Quantitative Strategic Planning Matrix(QSPM)

Strategy 1

Expand further in

Asia by adding 100branches

Strategy 2

Serving peoples

especially children,old and poor at there

door steps.

Key Internal Factors Weight AS TAS AS TAS

Strengths

Provide best services, for good cause and best

reputation.

0.12 4 0.48 4 0.48

Have market share. 0.10 4 0.40 2 0.20

Strong global presence. 0.04 4 0.12 2 0.08

Specialized training for managers and

employees.

0.04 - - - -

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SEHER Plan to Win focuses on people,

products, place, price and promotion

0.12 4 0.48 4 0.48

Strong financial performance and position. 0.08 4 0.32 4 0.32

Creating of new branches. 0.06 - - - -

Customer focus (centric). 0.06 1 0.06 4 0.24

Strong performance in the global marketplace. 0.08 3 0.24 1 0.08

Weaknesses

Some government restrictions. 0.08 1 0.08 4 0.32

High Staff Turnover including Top

management

0.10 - - - -

Location is in unsafe area. 0.04 3 0.12 1 0.04

Legal actions related to health issues,

violence issues and Inco-operations

from police.

0.04 1 0.04 4 0.16

Lack of infra structure In Baluchistan. 0.04 - - - -

SUBTOTAL 1.00 2.34 2.40

Strategy 1

Expand further in

Asia by adding100 branches.

Strategy 2

Serving peoples

especially children,old and poor at theredoor steps.

Key External Factors Weight AS TAS AS TAS

Opportunities

Growing health trends among consumers 0.08 1 0.08 4 0.32

Globalization, expansion in other countries

(especially in Afghanistan & India).0.12 4 0.48 1 0.12

Diversification and acquisition of other quick-

service NGOs.

0.04 - - - -

Growth of the services industry. 0.10 4 0.40 4 0.40

Worldwide deregulation 0.04 4 0.16 1 0.04

Low cost services even free services to attract the

customers (people).

0.08 - - - -

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Workshops and seminars. 0.08 - - - -

Threats

Cultural deference. 0.10 1 0.10 4 0.40

SEHER competitors threatened market share of the

company both internationally and domestically

0.09 4 0.36 1 0.09

Peoples have misperception about NGOs. 0.12 4 0.48 4 0.48

Anti-American sentiments. 0.07 - - - -

Global recession and fluctuating foreign currencies. 0.04 - - - -

Low knowledge and lack of awareness among the

masses about there economic and social rights.

0.04 1 0.04 4 0.16

SUBTOTAL 1.00 2.10 2.01

SUM TOTAL ATTRACTIVENESS SCORE 4.44 4.41

Recommendations

Expand further into Asia over a 2-year period by adding 50 branches peryear at a cost of $40 million annually, and serving children, old and poorpeople at their door step.

References1. www.seher.com.pk

2. Data provide by SEHER ngo.

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http://opt/scribd/conversion/tmp/scratch6265/www.seher.com.pkhttp://opt/scribd/conversion/tmp/scratch6265/www.seher.com.pk


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Strategic Analysis of an Organization