01fm18mba016 PDF
01fm18mba016 PDF
01fm18mba016 PDF
Report submitted to
School of Management Studies and Research,
KLE Technological University, Hubballi
Submitted By
Jyoti Naik
(01fm18mba016)
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DECLARATION
I hereby declare that this research work embodied in this project work entitled “A study on
strategic management tool for NGO sector” carried by me under the guidance of Prof.
Sagar Patil, School of management studies and research, KLE Technological University,
Hubballi.
I also declare that this report has not been submitted to any university or institution for the
award of any degree or diploma.
A project is never an individual effort. It is a contributory effort of many hearts, hands and
brains. Any endeavor and satisfaction that accompany the successful completion of my
project will be incomplete without contemplating the people who made it possible.
I stop for a moment in the tracks to acknowledge my sincere gratitude for assistance, efforts
and patronage I have received in completion of the project from our internal guide Mr. Sagar
Patil, Assistant Professor, SMSR, KLE Technological University Hubballi, who has spared
their valuable time to give his expert guidance and valuable suggestions throughout my
project work.
I would like to express my sincere thanks to our SMSR faculties for assistance and
cooperation during my project.
I would like to express our profound sense of gratitude to Dr. S. V. Patil, Head of
Department, Dr. Prakash Tewari, Principal and Dr. Ashok Shettar, Vice Chancellor, KLE
Technological University Hubballi for giving me an opportunity to take up this project.
Lastly, I would thank almighty god, our parents and friends for their infinite love, direction,
support and help during my project. This project wouldn’t have been completed without the
cooperation of all these people.
EXECUTIVE SUMMARY
In this fast changing era of all the organization, it is very important to understand the
present conditions and situation of the organization. Not only to the manufacturing industry
but also to the service industry is also important to sustain in the market. So to, sustain in the
market the company are taking various steps to expand its markets and to satisfy the
customers. So the company is looking for various tools and techniques in order to assess the
internal and external issues and activities of the company.
The most commonly used strategic management tools and techniques are SWOT
analysis, Porter’s five forces, PESTEL analysis & value chain analysis through which we can
identify the factors affecting the company and the strengths, weakness, opportunities and
threats of the company. The SWOT analysis gives the possibility to develop a strategy which
can help to tackle the weaknesses and threats. It can help to match resources and capabilities
to threats and opportunities in the competitive environment.
The managers and executives of the organizations are looking for a suitable tools and
techniques in order to study the internal and external cost of the products/service. All these
tools focused on analyzing internal and external factors that can affect the performance of the
companies. We also used Value Chain as tool for our study to understand where the cost are
been added and value is been add to the services provided to the customer. Porter’s value
chain approach is primarily used to analyze the core competences of the firm to achieve cost
reduction and differentiation also study camp up new value chain analysis model refers to
NGOs working towards skill development of person with disability in India; this model may
help organizations to be more effective & efficient.
TABLE OF CONTENTS
SL. TOPIC PAGE
NO NO
CHAPTER 1:INTRODUCTION
1.1 INDUSTRY OVERVIEW 1-2
1.2 INTRODUCTION TO DISABILITY IN INDIA 2
1.3 INTRODUCTION OF SAMARTHANAM TRUST FOR DISABLED 3
1.4 OBJECTIVES 3
1.5 METHODOLOGY 3
CHAPTER 2: LITERUTURE REVIEW 4-7
CHAPTER 3: SECTOR STUDY 7
CHAPTER 4: PROJECT TASK
PART-A
4.1 SWOT ANALYSIS OF NGO 8
4.2 SWOT ANALYSIS OF SAMARTHANAM TRUST 8-12
4.3 TANGIBLE AND INTANGIBLE RESOURCES 12-13
4.4 VRIN ANALYSIS 13-16
4.5 VALUE CHAIN ANALYSIS 17
4.6 VALUE CHAIN ANALYSIS OF SAMARTHANAM TRUST 17-19
4.7 COST DRIVERS 19
PART-B
4.8 INDUSTRY VALUE CHAIN 20-28
4.9 PESTEL ANALYSIS OF NGO 28-32
4.10 COMPETITIVE ANALYSIS (MICHAEL PORTER FIVE FORCE 32-34
MODEL) TOWARDS NGO
4.11 COMPARE AND CONTRAST COMPANY VALUE CHAIN WITH 35
INDUSTRY VALUE CHAIN
4.12 INDUSTRY TREND 35-38
4.13 FUTURISTIC OUTLOOK 38-39
1.4 OBJECTIVES
1. To identify the factors influencing the performance of the company.
2. To analyse and compare the company and industry value chain.
3. To identify the trends and futuristic outlook of the NGO sector.
1.5 METHODOLOGY
Data type: Qualitative technique
Type of research: Descriptive research
Data collection tool: Secondary data
Websites
Research papers
Online source
This paper states that institutional donors are discrimination standards when
distributing funds to Non-profit organizations. It decides that the donors who are more
concerned about the effectiveness will evaluate NGOs and concentrate the funding on those
who work accordingly, while donors who are less concerned about efficiency and more about
local ties do not evaluate NGOs and allocate their funds independently of these parameters.
The results show that donors do not adapt any discrimination criteria when allocating funds.
That matters to them are how the manager is concerned locally, the NGOs' geographical
location and whether the NGO is local. This behavior fits better with the clarification that
Non-profit organizations are more interested in their ability to access the beneficiaries.
This paper states the competition model by fundraising among discriminated Non-
profit organizations. Non- profit organizations divide their time between project work and
fundraising which creates interests in individual donations. If the market size is set, the level
of fundraising rises with the number of Non-governmental organizations. If the size of the
market is endogenous and NGOs cooperate with inviting new donors, the level of fundraising
declines with the number of NGOs and the amount of NGOs in the free entry equilibrium is
lower than that which enhances the well-being of donors. If Non-profit organizations can
distract funds for private use, then the multiple-equilibrium will appear.
Partnership with local nonprofit organizations has become a key characteristic in the
growth sector. Therefore the human resources management in local Non-profit organizations
is important as it contributes to the performance and sustainability of the organizations. Local
The study was born out of the NGO Enterprises for the Environment Program, which
helps NGOs to overcome the barriers to the successful growth of the organization. TNC
predicted that foreign-based NGO members had problems covering key costs. Many donors
would not pay for indirect prices of the program, while others put arbitrary limits on those
costs. The NGOs themselves lacked a clear empathetic of the nature of indirect costs and
were therefore incapable of coherent the value of supporting these real costs to donors.
The study says that there should be a clear understanding of the nature of PM
resources in NGOs and their relations with project performance using a Resource-Based
View theoretical perspective. The result of this study identified three levels of PM capital:
team, organizational, and collaborative social resources, the latter being a resource not yet
established in the literature as important for the implementation of successful projects and
facilitating adaptation to the diverse, unpredictable environment in which some NGOs work.
6. “Investigating Impacts of Globalization on Performance of NGOs” by Miss
Robina in 2014.
This paper says that in the modern world of Global-Village communities have
become International-Citizenship because of developing innovations that have made it
feasible to create Global-Connections much more well-organized than ever in human history.
Weakness (Internal):
1. Lack of brand recognition
The weakness of this organization is there is lack of awareness about the trust in the public.
The weak brand name can result in losses. In the organization, losses mean in the form of
students and donors. Many of the public don’t have any knowledge about this trust which
reduces the participation of specially-abled students.
Opportunity (External):
1. Develop the skills of differently-abled children
The condition of people with different abilities in India does not seem to change as
approached World Disability Day on 3 December. Of the 12 million children with different
faculties, only 1% of the students attend school, while about 63, 66% of people with different
faculties are unemployed compared to 60, 21% of the employment rate in the rural and city
areas of India.
By looking at the present scenario the trust should utilize this opportunity to develop the
various skills among the differently-abled children in this society.
2. Create the link between society and differently-abled candidates
The trust can use the opportunity of improvement in disability education and they start
creating the link between society and differently-abled students. So that it will help the
children to sustain in the market.
3. Government policies
As in the present, the government is giving importance to the differently-abled children so
the trust should use this opportunity to help the children to get these government facilities
like Education allowance, traveling allowances.
Intangible Resources:
Intangible assets are an entity's longterm capital, which lacks physical existence. We gain
interest from mental or legal rights, and the importance of the other properties we create.
8. Donor retention
1. Firm Infrastructure
Infrastructure is the thing that creates the value of any firm. So even in our trust the firm’s
infrastructure like the building, water facility, power supply facility creating more value to
the trust which is more advantageous to the trust.
2. Human resource
The accessibility of human resources in Non-governmental organizations is vital as it
contributes to the performance and sustainability of the organizations. Samarthanam trust has
an effective human resource as they support the development of the organization's objectives
and achievements for which trust is organized.
3. Computer
As basically the NGO’s don’t provide computers. But in our trust, they are providing
education facilities with the help of a computer which helps to increase the value of the trust.
4. Funds
Samarthanam is getting both monetary and non-monetary funds from different sources i.e.
individual donors, telecaller, donation boxes, the Parisara program, and a donation from
college students, etc.
5. Equipment
The equipment in the organization includes benches, desks, and tables.
6. Study material
Providing different kinds of study materials to the students of specially-abled helps the
students to concentrate on their education. They provide various resources in the form of
study materials that are books, iPods, Brielle books, etc. by providing these they increase the
value of the trust.
2. Government concern
(DDU-GKY Government Yes Yes
program)
3. Procurement
(Mobilization) Yes Yes
Output: - After undergoing the rigorous training, trained & skilled students will be output as
per the program and also will get the skilled teachers. Here as per the annual report of skill
council for persons with disability India, can see the output of 11,433 students trained,
10,333 students assessed & 8660 students certified by programs in this financial year 2017-
18.
Marketing: - It is part of an activity which helps to communicate with society and build the
society and organizations internally and externally stronger and makes the society to retain
and attract towards organizations, this helps an organization to reach its objectives very
effectively.
2. Capacity utilization:
It means trying to operate facilities at full capacity. Whether a company functions at or near
full size has a big impact on unit cost when its value chain comprises activities linked with
considerable fixed costs. The trust should utilize all the available resources at the right time
and right place.
Porter's Value Chain integrates a variability of supply chain activities throughout the
product or services life cycle of such as defining the wants of customers for marketing and
production distribution and after-sales services.
Porters defined a chain of activities common to all companies and divided them into
two main activities: inbound logistics, operations, and outbound logistics, marketing and
sales and service, and support activities consisting of infrastructure, human resource
management, technology creation, and procurement.
Change management
Control Manage modifications procedure; Acceptances;
between the program Issue acceleration
Governance Closure,
End of program Define and accomplish Comprehensive
transition transition strategy (redesign, Programme Learning,
ENABLING ACTIVITIES
Talent and Talent and skills record with employee performance and
performance growth history.
management
Learning and Share and increase the skills and capabilities of the
development workforce. Evaluate development needs and manage
their implementation.
Barging power of
supplier
(High)
Threat of
new
Threat of
substituent
new
Rivalry between industries s
entrants
(Moderate)
(High)
Barging power of
customer
(Moderate)
Table 6: Compare and contrast company value chain with industry value chain
Particulars Industry Company
Providing facilities to the
Strength The moralization of students.
rural background citizen.
Brand image, increased
Lack of funding towards
Weakness dropout rates, lack of donor
NGO.
retention.
Government policies, new
technology, developing links Create a link between society
Opportunities
with the business and differentiable candidates.
community.
Other more established
Threats Economic crisis. NGOs complete similar
works.
Economic environment
Pastel Political factor.
analysis
Value chain Marketing and sales. Fund management.
Rise in virtual campaigns: Most of the NGOs are using social networking as
communication tools. In the future days, the company is expecting to go see NGO moving
Donors are more likely to give money to the NGOs rather than the government, but
the government needs donors to support them directly to implement health projects.
Therefore, the state authorities see that the NGOs take over their area of influence in the
health sector. NGOs have succeeded in health projects.
Factors:
1. Department of higher education: The Department of Higher-Education is
answerable for the overall development of the infrastructure of the Higher-Education
sector. Under planned progress, the Department looks after extension of access and
qualitative development in the Higher-Education, through world class Universities,
Colleges, and other Institutions.
2. Policies and Schemes
DISHA: This is an early learning and school training program for children in the 0-10
age group with the 4 handicaps protected by the National Trust Act. The goal of this
scheme is to provide training and therapy for both children and parents (especially
school readiness).