1.0 MANAGEMENT SUMMARY
The British Red
Cross runs on the donations of the market where donors give material gifts or
provide them with funds. The organisation also runs an extensive volunteer
program with volunteers forming the bulk of their work force.
British Red
Cross works under friendly conditions with the government appearing to support
their activities by providing funds and facilitating legislative policies that
make their operations easy. For instance, the British Red Cross is exempt from
the requirement that requires licenses when conducting door-to-door
collections.
This report
highlights the outcome of a primary research that was conducted through
interviews with members of the organisation with further information collected
from official and professional websites and other publications.
The research
revealed that the organisation has been facing depressed donations since the
onset of the global recession. Volunteer work force has also been on a steady
decline. The research also revealed that there is a change in lifestyles
especially where communication is concerned. The report therefore suggests the
following measures to counter the challenges identified:
·
Introduce avenues through which
volunteers can work online
·
Increase data security to minimise the
risk of cybercrime
·
Mount a campaign aimed at portraying
donation as an integral part of life and one that must be prioritised irrespective
of circumstances
·
Cooperate with colleges and universities
to attract more young volunteers and use peer pressure to encourage more young
people to work as volunteers
2.0 METHODOLOGY
In the preparation of this report, both
primary and secondary sources of information were used. Primary data was
collected through interviews which were administered on 4 members of the
British Red Cross. Sampling was done through a quarter sampling method in an
exercise that resulted in the selection of 1 senior managers and 3 low and
middle level employees of the organisation as interviewees. This choice of
interviewees was informed by the fact that they are the persons expected to
know much about the organisation and its internal and external environments. The
interview questionnaires were semi structured for ease of analysis and also to
allow for ventilation on issues that require greater levels of articulation.
The list of questions used for the interviews is as highlighted in Appendix 1. The
interviews were administered personally. Face to face communications tend to
encourage deeper levels of expression, the appreciation of non verbal signals
when communicating, and also provide an opportunity for prompt clarifications
(Saunders, Lewis and Thornhill, 2007). This approach to conducting interviews
is reputed as being highly effective as a source of primary data.
Secondary data is useful in providing
background information about the company and provides the information needed to
ensure that primary research is comprehensive. It also helps in bringing out
information that may not be well elaborated by interviewees who may fail to
articulate the issues in an objective manner. Official publications from the
organisation, government agencies dealing with disaster relief, and
professional websites from the British Red Cross and other NGOs were useful in
the research. Information from legal publications on relevant laws was also
assessed and factored in. Academic journals and texts were also used to provide
theoretical bases for analysis and reporting.
3.0 MARKET AUDIT
The macro
environment is best analysed using the PESTEL model which focuses on political,
legal, economic, environmental, social and technological factors (Kotler and
Andreasan, 1991). Knowledge of the external environment helps in understanding
the strategic positioning of the organisation and the options available to them
to achieve their organisational objectives (Kerin and O’Reagan, 2008).
3.1 PESTEL
Political
and Legal factors
Political and
legal factors are closely interlinked as they are inextricably linked to
governments and their commitment to ensuring that the operations of the British
Red Cross are supported and facilitated as appropriate.
·
The government continues to be among the
main donors of the organisation with provisions for a contribution of 25% on
top of any donation made by any UK tax payer. Direct donations are also made
using the government agencies dedicated to disaster relief.
·
There is a legal framework that requires
all Non Profit Organisations to acquire a license when conducting a house-house
collection (BIICL, 2010). Reputable organisations such as the British Red Cross
are exempt from the requirement to acquire such a license and this greatly
helps in the achievement of their goals.
·
The government provides support for the
British Red Cross by conducting comprehensive disaster preparedness reports
that highlights the likely disasters that could hit the country and their
probability of occurrence. This information helps with planning and
mobilisation of resources in a manner that ensures speed and effectiveness. A
probability index of listed disasters is as highlighted in Appendix III.
·
The British Red Cross is subject to a
myriad of laws that regulate their engagement of volunteers and employees.
Rules on donations that require disclosure and transparency are also in place
and inform the operational procedures of the company.
Economic
factors
Economic factors
refer to factors such as the economic growth rate, per capita incomes and other
relevant factors (Sargeant, 1999; Osborne, 2009).
·
The UK economy is barely recovering from
a crippling economic recession that had seen the average household disposable
incomes reduced significantly. This has led to a situation that potential
donors find it difficult to maintain their levels of donation. The number of
persons volunteering their time is also low with many forced to dedicate more
of their time to regular work (British Red Cross, 2012). Organisations that are
increasingly concerned about the impact of the recession on their bottom-line have
been cutting down their budgetary allocations to charity and this threatens the
earnings of the organisation.
·
Despite the suppressed donations, it is
expected that as the economy continues to recover, such donations will rise in
the medium and long term.
·
The recession has also seen a renewed
focus by the government to emphasise on the need to embrace austerity measures
and this implies the reduction of government expenditure on items that are not
seen as absolutely necessary. This means that donations made to the
organisation by the public sector could be reduced significantly.
Socio-cultural
factors
These are
factors that touch on general perceptions in the market and the general
lifestyles of the population (Kinnel and McDougall, 1997).
·
The growth of the internet has impacted
on the lifestyles of the British significantly. The internet is becoming the
primary source of information for most people and this makes it necessary for
organisations to avail their information online.
·
The internet has also generated a
certain trend where many people tend to prefer to shop and work online. This
shift has been seen many prospective volunteers of the organisation express
their willingness to work from the comfort of their homes and offices.
Technological
factors
Technological
advancements have revolutionised communication systems as well as the financial
systems available to the organisation.
·
The development of technological
infrastructure that facilitates online transactions makes it easy for donors to
make their contribution without strain. The websites provide for the options to
donate instantly and the cost of transaction has been reducing steadily in the
recent years. This encourages such transactions and raises chances of the
British Red Cross raising more funds.
·
Technological advancements can also be a
source of concern. As knowledge on how to develop systems to facilitate
transactions spreads, there are high chances that hackers could infiltrate
their systems and compromise the security of their donors.
Environmental
factors
·
Environmental concerns are at an all
time high as the effects of global warming become manifested through frequent
and severe floods (Cornforth, 2003; Sargeant, 2009). The changing climatic
conditions have also heightened the risk of epidemics breaking out together
with other calamities such as earthquakes. This impresses on the company to
focus on its operations to ensure minimal harm to the environment.
3.2 OVERVIEW OF COMPETITIVE ENVIRONMENT
There are
numerous non profit organisations that operate within the UK. These
organisations compete for volunteers and donations with the British Red Cross.
Whereas the focus of other organisations may not be identical to that of the
British Red Cross, they still pass for humanitarian aid providers and therefore
very good destinations for donor funds. The main sources of rivalry include
Care International, World Vision, Oxfam, Mercy Corps, International Rescue
Committee and Action Against Hunger among others (The Humanitarian Forum, 2012).
There are codes of conduct within the industry that ensures that the usual cut
throat competition experienced in business is not manifested in this field.
However, strategies to distinguish brands as trustworthy backed by evidence of
works executed are very useful in winning players the much needed support from
donors and volunteers.
3.3 SWOT
The elements of
the SWOT model that can be summarised from the external audit are opportunities
and threats.
Strengths
|
Weaknesses
|
Opportunities
|
Threats
|
Opportunities
·
Increasing popularity of the internet
creates the opportunity to cut down on the amounts spent on awareness programs
as the target audience can be reached through the less costly medium. This
medium also allows for the sharing of comprehensive information as opposed to
the summarised briefs that are common with traditional communication models.
·
The internet also provides for
opportunities where volunteers that prefer to work from home can make their
contribution.
·
The technological advancements continue
to create opportunities for donors within the UK and outside the country to
make their donations with ease. By following the simple procedures outlined on
the organisation’s website, donations can be made from wherever the donor is.
·
As the economy recovers from the
recession, disposable incomes for households are bound to increase and the
company could therefore raise more funds with relative ease.
Threats
·
The growth in the number of non profit
organisations dealing with disaster relief and other manner of charitable
endeavours puts a strain on the existing donor market. The entrants put
pressure on the available donors and this could potentially lead to diversion
of funds to such organisations.
·
Technological advancements and
subsequent spreading of knowledge creates an opportunity for cybercrime where
the organisation’s security system could be breached and expose donors. This
risk could in turn lead to loss of confidence and result in donors staying away
from the organisation.
4.0 INTERNAL AUDIT
4.1 MISSION AND OBJECTIVES
The mission of
the British Red Cross is to improve the lives of those in need. It also seeks
to improve relations between communities and this is done through trust
building and humanitarian action (British Red Cross, 2012). The organisation
also aims at promoting hope through the creation of safe and unbiased
environments. The company focuses on providing aid during disasters such as
floods and epidemics and also dedicates its attention to creating awareness on
how to make it through certain disasters.
4.2 RESOURCES
The British Red
Cross is a full fledged organisation comprising of experts that are well
experienced in disaster relief operations. The company also works with many
volunteers who can be mobilised with ease whenever need arises. The
organisation maintains a lean structure with only a handful of employees
(Roberts, 2005). The volunteers provide the bulk of the workforce. To ensure
the efficiency of its operations, the company maintains comprehensive databases
and systems that allow for ease of disaster response. The British Red Cross is
also well equipped with disaster preparedness equipment that helps in prompt
movement, evacuation and recue operations (Williamson, 2012). In terms of collection
of donations and communication with stakeholders, the organisation maintains a
highly efficient website that is fully enabled to facilitate transactions and
this makes it easy to collect donations. In addition, British Red Cross
maintains donor shops across UK where members of the public can drop their
material donations.
4.3 SWOT
Strengths
|
Weaknesses
|
Opportunities
|
Threats
|
Strengths
·
The organisation has a good brand. The
British Red Cross has over time distinguished itself as a genuine player in the
field and has always given their donors the confidence that the funds donated
will always be put into good use.
·
The organisation operates a lean
structure that keeps its costs low
·
The highly sophisticated systems allow
for effective engagement with donors and volunteers in different parts of the
country
Weaknesses
·
The heavy reliance on volunteers leaves
the organisation vulnerable as the commitment levels of such volunteers cannot
be assured. This could lead to a situation where the organisation is unable to
execute its mandate.
4.4 STRATEGIES
The strategies
embraced by British Red Cross focus on both the generation of funds from donors
and the acquisition of volunteers to help with the execution of the
organisational goals. Volunteers are targeted using messages that highlight the
need for them to participate in the worthy cause (British Red Cross, 2012). The
skills that can be gained through voluntary experience are also highlighted to
attract those keen to learn. In most cases, the organisation relies on word of
mouth with the current volunteers as the main sources of information.
The strategy for
attracting donor funds hinges on the maintenance of trust where donors can
remain confident that their hard-earned money will be well spent. Information on
projects undertaken and all other relevant information is made available for
scrutiny. The organisation also works towards making donation easy by
facilitating online transactions and making arrangements for collection with
leading financial institutions.
5.0 MARKETING SYSTEMS
5.1 MARKETING ORGANISATION
The marketing
department handles publicity and most communications from the organisation
(British Red Cross, 2012). This centralisation helps in ensuring the
consistency of the message and this in turn helps in building trust. The
department is also responsible for communication with donors and prospective
volunteer employees. They work hand in hand with other departments to ensure
that all information is availed to stakeholders at and when needed.
5.2 PLANNING AND CONTROL SYSTEMS
The organisation
uses modern technology to plan for disaster situations and monitor
implementation whenever they occur. The systems in place help in coordinating
specific roles and ensuring that performance is accounted for as appropriate. Information
on volunteers and donor commitments is also kept in a manner that facilitates
ease of retrieval for purposes of informing further strategies. The highly
advanced technologies are also crucial in coordinating disaster relief efforts
in conjunction with the Police and other government departments. Simulation of
disaster situations are often made to ensure that the staff are adequately
trained and prepared for such eventualities.
5.3 RESOURCE ALLOCATION
Resources have
been strategically allocated towards the enhancement of the communication and
financial transaction systems. Sufficient efforts have also been made to ensure
that plenty of information about the organisation is available online and in
many other publications. These systems provide the lifeline to the organisation
through funds and workforce and are therefore rightfully prioritised. The
organisation also invests heavily in disaster relief equipment and assets such
as vehicles, ambulances and even helicopters for easy access and effective
service delivery.
6.0 ACTIVITY ANALYSIS
6.1 PRODUCTS
The range of
services provided by the British Red Cross include Humanitarian education;
Health and social care; First aid and ambulance provision; First aid training;
fire and emergency support; refugee services; creation of safe unbiased
environments during war and internal conflicts and others.
6.2 PROCESS
The
communication on raising funds for the activities highlighted is an ongoing
process with messages over the mass media and the internet tailored to inspire
people to take action. During the actual disasters, the organisation often
launches an appeal to help in boosting the reserves it may have accumulated
over the period of tranquillity. Plenty of information on the status of the
missions and fund raising are released regularly to keep the market informed
and this helps in building trust.
6.3 PEOPLE
British Red
Cross operates with a very small number of employees. The UK agency employs
less than 100 employees with the rest being volunteers who dedicate their time
to the great cause. The ones that are employed are highly skilled and
experienced individuals that are capable of coordinating multiple programs at a
time. The volunteers are often very highly motivated people who would always go
out of their way to deliver to the goals set. Training is done regularly to
ensure that the organisation is prepared at all times.
6.4 FUND RAISING
The organisation
runs mainly on the donation of various stakeholders who donate funds, materials
and labour. Donations are often organised in packages allowing for donors to
give the given amounts of money. There are also provisions for becoming regular
donors where donors make a commitment to give a certain amount monthly or
annually. The organisation also provides commercial trainings for first aid and
disaster preparedness.
6.5 PROMOTION
British Red
Cross embraces a unique promotional mix that combines advertisements, personal
selling and publicity in a manner that brings out synergy. Advertisements are
mainly done via the mass media and the internet. Publicity is mainly done when
conducting public briefings on disaster preparedness or even during the
disasters themselves where the strong presence of the organisation at the
scenes sends a strong message to the market. Direct selling is done by
approaching corporations to donate funds or contribute in kind. This method is
also employed where volunteers are urged to reach out to people within their
spheres of influence.
6.6 PRICE
For ease of
donation, the organisation creates packages that donors can choose. Monthly and
annual donations are provided for. There are also provisions allowing donors to
donate to specific situations. The price is as flexible as it can be. The
organisation intends to encourage all donors to give and therefore attaches no
minimum amounts to their donation packages.
7.0 RECOMMENDATIONS
·
The British Red Cross can seek to secure
its donations by mounting a campaign that portrays ‘giving’ as a priority in
life. This would pre-empt the prospect of people cutting down on donations
whenever adverse economic conditions are experienced. There are plenty of other
expenses that could be cut off while maintaining the allocations for donation.
This would have to be a systematic and well calculated campaign which could be
conducted jointly with some of the leading players in the industry.
·
Work towards ensuring data security by
restricting access to the relevant information and cooperating with
intelligence systems in government to detect attempted cases of cybercrime
before any damage is done.
·
The dwindling of volunteer numbers can
easily be countered by establishing working partnerships with colleges and
universities. The institutions could be persuaded to contribute to the great
cause by providing some form of recognition for students who take part in the
programs. With rising peer pressure, it would become very attractive for more
young people to take part in the endeavours.
·
Given that the internet is increasingly
popular, British Red Cross should redefine some of their processes such as
those that have to do with training and have them done online. This would
create a good opportunity for individuals who would want to volunteer but work
from home.
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