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The establishment of King Abdullah foundation for Developmental Housing in Saudi Arabia was taken place in 2002, with the objective of developing houses of most needed people in different parts of the country, providing them with self sufficiency and making an eventual contribution to the society over a period of time.
The main critical success factors for the successful utilization of the IS modules are discussed with the perceived benefits from these modules. The limited budgets and the resources from the NGOs made them rely on the volunteer work for most of their Promotion on the Products. With limited resources and less budgets the information technology plays an important role in the charitable organizations, just like their profit making counterparts. In spite of the pressure to perform and value based results faced by the organizations the wide spread acceptance of the IT for the charity organizations towards the change is seen in the internal and external structures and reconfiguring non profit based organizational learning and managements systems.
Analysis of the critical success factors of an SME within an industry where it is operating
The critical success factors of SMEs differ a lot form the large enterprises especially when it comes to the NGO or a charity operating in a third sector, the Technological and substantial organizational factors are a lot different from large organizations.
The literature analysis of the CSFs for the organizations operating in third sector has lead to a list of over 40 CSFs which have been grouped into 4 categories and explained them below:
vision, scope, and goals;
culture, communication, and support;
Vision, scope and goals:
Most of the CSFs were observed for the NGO which promote the importance of Vision, strategic goals and business plans which are defined under the scope of explicit limitation for the SME when operating in a fund raising climate which are far less when compared to an large organization limiting the scope to minimal in the charitable third sector.
Culture, communication and support:
The senior management support on the schemes of fundraising are very important for the management of the charity activities, which needs to be coupled with business process re-engineering for embracing the corporate change in the organizational context. The adoption of the standardized IT with the suitable openness to the change concludes with change communication across the NGO which operate on point of contact for the investment by social donors whose donations are based on voluntary participation by the people working in the third sector.
The emphasis on the user requirements on the functional and technical training issues with good business alignment on the existing charitable programs are very important for the process management in these NGOs which operate on risk averse scenarios. The member donor marketing software's with database on the customers, their interests and their details with greater focus on the voluntary sector developments are in place for delivering promotions, products and prices for the services offered.
Project management and Team leader:
Voluntary organizations with catering needs for donations have to critically analyze the project planning even thought they operate in less funding environment, they need to sum up all the benefits for the expected outcomes from the charitable activities. And define a good project leader and staffing programs to instill confidence and motivate the volunteers working the NGOs, the NGO project champion should bridge the gap between the technical analysts, external consultants, internal business modules and voluntary programs for the optimum utilization of available human resources to build a rapport for the project planning, phasing and following up of the activities by the third sectors organizations.
Critically evaluate the entrepreneurial approach to the marketing operations in SMEs
The pursuit of the organizational leadership for the entrepreneurial approach in the NGO organization is the key to the marketing strategy where the investments are based on the social donations which require a lot of lobbying from the local councils and participation by the members on voluntary basis, requiring quality leadership and product specialization strategy for the services provided. The acquisition of technology of the technology demands on the pursuit of the marketing leadership strategy with the focus on the NGO participation to respond to the globalization as donations need to advertise across the world for social benefits and prepare themselves into the foreign markets for operational advantage. Globalization and acquisition of technology coupled with marketing leadership strategy leads to more product specialization on the services offered by the third sector NGO organizations. The marketing of the NGO charity for the potential donors advocates the on the appropriate capacity on the grounds of educative and implemented awareness which is justified by the organizational image. Thus the marketing strategy for the charitable organizations depends on the advertisements for the potential donors based on the image generated by the NGO, where a volunteer should more likely to reflect on the brand image of the organization consciously attracting the potential donors. The organizations should generate public sympathy to the maximum reinforcing the negative stereotypes, without aggressive positions on the sentiments of the people in need. The marketing strategies employed by the charities should not aggressively advertise on the money imagery and demeaning the much needed people in the society, the objective of the charity should on the good cause rather than glossy promotions which could force the donors to think that the money donated for the good cause is spent for lobbying more revenue rather than investing in good cause for the benefit of the people in the society. A study found by O'Sullivan propounded that the money donated on the charity purpose 40 percent believed that it was not spent on the tight cause and 11 percent believed that it went to the philanthropic goals set out by the NGOs.
Key challenges faced by organizations in third sector.
The developmental growth for the third sector depends on the availability of the service delivery and funding for the growth of the organization. Traditional grants and returnable funding proposal offered by the social investment banking aims for independent investment and repayable grants offering loans and equity to make most if the charity money on the offered proposals.
The doubling of the income to £40bn for charity organizations over the last eight years indicates the third sectors strength which has led to the organizational internal growth for reaching the new realms of expanded power spectrum. The rise in donations from the unrestricted public has increased by 75 percent over a period of time from a slow phase to a fast income with government contracts increasing steadily for the large charitable organizations which are not investment ready due to highly uneven growth in some sectors due to lack of manageable sectors lenders in these non-profit organizations.
To respond to new social investment opportunities, the sector needs to address four key challenges. The first is developing financial expertise: the majority of the sector is inexperienced in returnable types of funding or investment and related business planning. This could be addressed through skill-sharing or greater access to intermediary financial advice and management resources.
The social investing opportunities in the third sector need to address four key challenges for the sound functioning of the charitable organizations. The first challenge is the developmental expertise on the financial activities on the operational management in the NGOs: most of the funding in this sector is returnable or the investing is based on the planning of the related business with majority of the sector is inexperienced in terms of financial management, thus a greater access to the skill sharing and intermediary management resources with financial advice can be adopted to address this challenge through valuable skill sharing on financial and managerial skill sets across the organizations in the third sector.
Secondly, the investment in the developmental research and training the third sector is very crucial as the changing business environment calls for more money in terms of financial inputs in research and development for the purpose of gaining market share in the organizational fund raising. The charitable third sector invests less than 1.5 percent on the training and developmental issues relating to the marketing approaches, compared to the 2 percent on the whole operating economy. The research spending should be more compared to 0.5 percent at the moment in the voluntary sector of the business development.
Thirdly, the value propositions on the social returns should be better measured in terms of operating economics, the less feasible, low standards and inadequate accessibility on the social value is demoralizing the social investors in investing on the soft terms which may not be quantifiable in terms of financial returns of the NGOs.
And finally, the audits on the capital expenditure on the charitable business operations are the need of the hour. Periodical audits on the investments in the fund raising sector needs to be better equipped because of lack of adequate data on the operations means that the sector could not begin a benchmark on the investment on the capital funding to come which is hard to come from the potential donors for the fundraising. The traditional undervaluation of the fundraising sector on investing on itself and focusing on catering for the social needs has lead to the downtrend for the NGO organization's which need to rapidly reengineer the business process for the survival in this competitive environment for attracting investments from the donors, as the saying goes "wearing a hair shirt is not an option for a sector that wants to attract the investment to help it transform approaches to social change".
Critically assess the use of traditional marketing models in the context of third sector operations.
The 4 Ps - Price, Place, Promotion, Product.
The 4 Ps marketing model deals with the marketing mix of Price, Place, Promotion, Product and their importance on the activity applications in third sector marketing operations, their importance is equally translated in business objectives of voluntary world, defining them as Promotion of the available service provided from the available Products for initial lobbying for funds from the local council. Which leads us to the Place for these Product Promotions taking place like a high street location which will make it easy than a shed in remote part of the town, leading us to the Price of the offered voluntary organization that includes all the non-money transactions like volunteer time in the selling the products from the founder to the people in need.
"For Services, there are 3 more Ps: People (attitude and behaviour of staff or volunteers), Process (how the service is delivered), Physical evidence (of quality). 2 more have been suggested: Philosophy (particularly for charities) and Perception."
The marketing model of ansoff matrix deals with the awareness on the options and their relative risks involved against the four ideal developmental ventures spread across the matrix. Most of the charities fall back on if there is a high risk involved and double if there is low risk involved. Many of the charities avoid the high risk ventures as they don't want to jeopardize the core operations, by law they advocate risk averse with out endangering their business on the other hand the option of low risk in business practice may not exist in this competitive world as few challenges or low aspirations would stagnate the business processes and demotivate the staff morale. Thus for the protection of the changing business environment risk has to be manifested to some extent and managed to the core for the protection of the NGOs marketing.
This is just like the Ansoff matrix where Boston consulting devised a insight into business division of activities into Cash cows, Dogs, Rising stars and Problem children. Cash cows- these services or the products make money, Rising stars- these consume a lot of money for the development and bring in the matching money, Dogs- low cost products and the services, Problem children- the low income high expenditure ventures which drain the resources.
Most of the NGOs operate in the combinations and more likely to have mixture of these models identifying what is required and how to turn them into more positive business outcomes, or negating the under performing activities which is though in the case of an voluntary organization, coming up with services which are value in proposition and can be turned into pure financial assessing profit making entities.
The King Abdullah Foundation for Developmental Housing implementing the new information system, with anticipated benefits to the users and based on the efforts by the potential stakeholders and developmental requirements which stabilized the operational activities and possessed the requirement definitions and proactive roles in the NGO charitable organization. From the literature review and conclusions drawn from the case study the charitable third sectors market orientation defines the proposition that the SME marketing strategy for the Third sector organizations possess a fair degree of marketing acumen, the designation of the performance data by the marketing manager in the charities to look after the marketing function was expected to raise to 2 or 3 persons for the adaptations. The considerable market orientation was notices in the highly influential decision making paradigms of the charities which resulted in the fund raising programs with regular evaluation of the projects. The SME managers in the charity organizations kept a keen eye on the activities on the donor orientation which the respondents are reflected on the adventurous approaches adopted by the non profit making organizations and promoting the replication of the available fund raising activities in the third sector organizations.