Baluchistan University of Information Technology Engineering & Management Sciences.

SEHER Organization NGO

STRATEGIC MANAGEMENT

PREPARED BY Ateeq Ur rehman Hidayat khan Sardar Husain Sanaullah tareen Arsalan Aziz khan

Imran khan

Table of Contents

Topics

Introduction Vision, Mission The Five Forces Framework External Audit CPM-Competitive Profile Matrix External Factor Evaluation (EFE) Matrix Internal Audit Internal Factor Evaluation (IFE) Matrix SWOT Matrix SPACE Matrix The Boston Consulting Group (BCG) Matrix The Internal-External (IE) Matrix The Quantitative Strategic Planning Matrix (QSPM) Recommendations

Page 3 3 4 5 6 7 8 9 10 11 12 13 14 16

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 to overcome their miseries/poverty, social, political and economic burdens and enjoy equal human rights and opportunities to lead a life of dignity and selffulfillment. 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 opportunities and 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

The Five Forces Framework

Potential entrants

Suppliers

Competitive rivalry

Buyers

Substitutes

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

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 Rivalry
The 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
1.

Threats 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 social rights.

Growing health trends among consumers 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).
2.

CPM-Competitive Profile Matrix

Critical Success Factors Charges Financial Position Consumer Loyalty Advertising Service Quality Innovation Market Share Management Global Expansion Total Weight 0.15 0.08 0.10 0.10 0.10 0.15 0.10 0.07 0.15 1 SEHER Rating 4 4 4 3 4 3 4 4 4 Weighted Score 0.45 0.16 0.20 0.25 0.35 0.30 0.20 0.26 0.15 2.32 ICRC Rating Weighted Score 3 0.45 3 0.32 3 3 3 3 2 3 2 0.40 0.30 0.40 0.45 0.20 0.21 0.30 3.03 MSF Rating Weighted Score 3 0.45 3 0.24 3 4 4 3 3 3 3 0.30 0.40 0.40 0.45 0.30 0.21 0.45 3.20 UN Rating Weighted Score 3 0.60 2 0.32 2 2 2 2 2 3 1 0.40 0.30 0.40 0.45 0.40 0.28 0.60 3.75

External Factor Evaluation (EFE) Matrix

6

Key External Factors Opportunities Growing health trends among consumers Globalization, expansion in other countries (especially in Afghanistan & India). Diversification and acquisition of other quickservice NGOs. Growth of the services industry. Worldwide deregulation Low cost services even free services to attract the customers (people). Workshops and seminars.

Weight 0.08 0.12 .04 .10 .04 .08 .08

Rating 3 4 3 3 2 2 1

Weighted Score 0.24 0.48 0.12 0.30 0.08 0.16 0.08

Threats Cultural deference. SEHER competitors threatened market share of the company both internationally and domestically Peoples have misperception about NGOs. Anti-American sentiments. Global recession and fluctuating foreign currencies. Low knowledge and lack of awareness among the masses about there economic and social rights. Total

0.10 0.09 0.12 .07 .04 .04 1.00

3 3 4 2 3 2

0.30 0.27 0.48 .14 .12 .08 2.85

Internal Audit
7

Strength

Weakness 1. 2. Some government restrictions. High Staff Turnover including

1.

Provide best services, for good

cause and best reputation.

2.
3.

Have market share. Strong global presence.

Top management

3.

Location is in unsafe area.

4.

Specialized training for managers and employees. 5. SEHER Plan to win focuses on people, products, place, price and promotion.

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.

6.

Strong financial performance

and position.

7. Creating of new branches.

8. Customer focus (centric).

9.

Strong SEHER performance in the global marketplace.

Internal Factor Evaluation (IFE) Matrix

8

Key Internal Factors Strengths Provide best services, for good cause and best reputation. Have market share. Strong global presence. Specialized training for managers 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 performance in the global marketplace. Weaknesses 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 un skilled. Total

Weight 0.12 0.10 0.04 0.04 0.12 0.08 0.06 0.06 0.08

Rating 4 4 3 3 4 4 4 4 4

Weighted Score 0.48 0.40 0.12 0.12 0.48 0.32 0.24 0.24 0.32

0.08 0.04 0.04 0.04

1 1 1 2

0.08 0.10 0.04 0.08

0.04 0.06 1.00

2 1

0.08 0.06 3.16

SWOT Matrix

Strengths Provide best services, for

Weaknesses Some government restrictions. High Staff Turnover

good cause and best reputation.

Have market share. Strong global presence.

including Top management

Specialized training for managers and employees. SEHER Plan to win focuses on people, products, place, price and promotion. Strong financial

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.

performance and position.

Creating of new branches. Customer focus (centric). Strong SEHER performance in the global marketplace.

Opportunities Growing health trends among consumers Globalization, expansion in other countries (especially in Afghanistan & India). Diversification and acquisition of other quickservice NGOs. Growth of the Services industry. Worldwide deregulation. Free of cost Services that will attract the customers (people).

S-O Strategies 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.

W-O Strategies 1. Minimize customers losses by provide high value of services on door step.

Threats There is big cultural deference. Peoples have misperception about NGOs. SEHER competitors threatened market share of the company both internationally and domestically. Anti-American

S-T Strategies More control on branches to maintain SEHER's reputation and quality. 2. Make new projects and keep innovation.

1.

10

W-T Strategies 1. Serving the humanity but with the help of government to obey rules and regulations. 2. hand shake with the tribal leaders to serve more easily in tribal areas.

SPACE Matrix
Financial Strength Return on investment Leverage Net funding Investments ROE Cash Flow Average Competitive Advantage Market share Service Quality Customer Loyalty Control over other parties Rating 4 4 6 5 5 4 4.67 Rating -1.00 -1.00 -1.00 -2.00 Environmental Stability Rate of inflation Demand Changes Price Elasticity of demand Competitive pressure Barriers to entry new markets Risk involved in business Average Y-axis Industry Strength Growth potential Financial stability Ease of entry new markets Resources utilization funds potential Demand variability Average X-axis Rating -3 -3 -1 -3 -3 -2 -2.5 2.17 Rating 5 5 4 4 5 3 4.33 3.08

Average

-1.25

Directional vector point is :( 3.08, 2.17)

FS Conservative Aggressive

C A

IS

Defensive ES

Competitive

11

The Boston Consulting Group (BCG) Matrix

Relative Market Share Position

SEHER Stars Industry Sales Growth Rate Cash Cows Dogs Question Marks

The Internal-External (IE) Matrix

The IFE Total Weighted Score

Strong 3.0 to 4.0 I

Average 2.0 to 2.99 II

Weak 1.0 to 1.99 III

High 3.0 to 3.99

IV

VI

The EFE Total Medium Weighted Score 2.0 to 2.99

SEHER

VII

VIII 12

IX

Low 1.0 to 1.99

The Quantitative Strategic Planning Matrix (QSPM)

Strategy 1 Expand further in Asia by adding 100 branches Strategy 2 Serving peoples especially children, old and poor at there door steps.

Key Internal Factors Strengths Provide best services, for good cause and best reputation. Have market share. Strong global presence. Specialized training for managers and employees.

Weight 0.12 0.10 0.04 0.04

AS 4 4 4 -

TAS 0.48 0.40 0.12 -

AS 4 2 2 -

TAS 0.48 0.20 0.08 -

13

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 performance in the global marketplace. Weaknesses 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. SUBTOTAL

0.12 0.08 0.06 0.06 0.08

4 4 1 3

0.48 0.32 0.06 0.24

4 4 4 1

0.48 0.32 0.24 0.08

0.08 0.10 0.04 0.04

1 3 1

0.08 0.12 0.04

4 1 4

0.32 0.04 0.16

0.04 1.00

2.34

2.40

Strategy 1 Expand further in Asia by adding 100 branches.

Strategy 2 Serving peoples especially children, old and poor at there door steps.

Key External Factors Opportunities Growing health trends among consumers Globalization, expansion in other countries (especially in Afghanistan & India). Diversification and acquisition of other quickservice NGOs. Growth of the services industry. Worldwide deregulation Low cost services even free services to attract the customers (people).

Weight 0.08 0.12 0.04 0.10 0.04 0.08

AS 1 4 4 4 -

TAS 0.08 0.48 0.40 0.16 -

AS 4 1 4 1 -

TAS 0.32 0.12 0.40 0.04 -

14

Workshops and seminars.

0.08

Threats Cultural deference. SEHER competitors threatened market share of the company both internationally and domestically Peoples have misperception about NGOs. Anti-American sentiments. Global recession and fluctuating foreign currencies. Low knowledge and lack of awareness among the masses about there economic and social rights. SUBTOTAL SUM TOTAL ATTRACTIVENESS SCORE 0.10 0.09 0.12 0.07 0.04 0.04 1.00 1 4 4 1 0.10 0.36 0.48 0.04 2.10 4.44 4 1 4 4 0.40 0.09 0.48 0.16 2.01 4.41

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

References
1.

2.

www.seher.com.pk Data provide by SEHER ngo.

15

3. Strategic Management concepts and cases by Fred David 12 edition 4. Exploring Corporate Strategy text & cases 8th edition. 5. Under guidance of Sir Zahid majeed.

16