The paper 'Strategic Management of StratSynth" is a good example of a management case study. East African countries such as Kenya, Uganda, Somalia, Ethiopia, as well as Djibouti have most recently experienced a drought that created an urgent need for humanitarian aid. As mentioned by Wainaina (2017) many areas across East Africa were in early 2017 affected by the worst drought in over 60 years. Besides that, drought has led to a food crisis in East Africa and over 11.5 million people are presently in urgent need of relief food in Ethiopia, Kenya, Djibouti, and Somalia.
If action is not taken, the number is projected to rise. The food crisis is exacerbated by the fact that food production in East Africa has diminished for three consecutive years; thus, exhausting the capacity of the people to handle another shock. The drought has also been driven by conflict, especially in Somalia and South Sudan where millions of people have been displaced as a result of the conflict; thus, making cultivation harder and also hampers humanitarian access. 1.0 A Five Forces analysis of the likely competitors to StratSynth According to Schwenger et al.
(2014), the not-for-profit organisations’ nature of competition can be understood effectively through the five competitive forces, which jointly demonstrate the competition intensity in the sector and create an initial point for formulating a strategy. The Power of Large Suppliers In the not-for-profit sector, the activities are primarily service-based rather than product-based. In addition, these services are characteristically social and rooted in particular skills instead of material resources. Therefore, this reduces the impact of supplier power. As mentioned by Cafferky (2005), the corporate funders and donor community in the NGO model are both customers and suppliers.
They offer resources (funds) for the not-for-profit organisations to perform their mission but in return, they take credit of the positive social impact realised through the not-for-profit organisation’ s activity. The power of large funders could influence the not-for-profit organisation by drawing it away from its core mission and vision into activities that bring forth scope-creep in all operation levels. Cafferky (2005) emphasises that the power of large funders demonstrates the unequal power balance that is tacitly accepted between not-for-profit organisations as well as donors; considering that this is a social development rather than a charity.
Therefore, donors have high bargaining power in terms of their funding decisions. When purchasing products or services on behalf of the not-for-profit organisation they could demand service improvements or lower prices (Schwenger et al. , 2014). Rivalry among Competitors As mentioned by Schwenger et al. (2014), rivalry amongst not-for-profit organisations normally happens when competitors try to improve their current position. Since not-for-profit organisations are primarily service providers, they normally face few exit barriers. The majority of not-for-profit organisations, according to Cafferky (2005, are normally reluctant to work with international not-for-profit organisations because they believe they are encroaching their area of operation.
The not-for-profit sector’ s competitive environment is steered by both the external forces existing in the environment and its own internal characteristics. The forces in the not-for-profit sector’ s competitive environment have been divided by Ritchie and Weinberg (2000 as audience-based, social-based, product-based, and internal-based forces. StratSynth will experience strong competition from other not-for-profit sectors offering similar services such as the UN’ s Food and Agriculture Organisation (FAO), which normally offers assesses problems associated with global food supply.
Other international competitors include Oxfam, ActionAid, the International Federation of Red Cross and Red Crescent Societies (IFRC), and World Food Programme (WFP), is the principal supplier of relief food aid. At the local level, StratSynth will face high competition from Catholic international development charity (CAFOD) which has for many years worked together with local partners in areas affected by drought, famine, floods and other disasters in countries like Kenya, Somalia, South Sudan, and Ethiopia (CAFOD, 2017). As mentioned by Arasa and Kioko (2014), rivalry amongst the existing competitors in the non-profit sector is attributed to the growing resources scarcity as well as the changing environment.
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