MIND Charity Analysis - Expansion Plan

Evaluation of MIND’s Internal and External Environment in Light of Its Expansion Plans

The aim of this report was to analyze the internal and external environments of MIND in relationship to its expansion plan. MIND is one of the leading mental health care providers around the UK and wanted to provide special services to domestic violence victims from the London Borough of Camden. There are various internal factors that determine the success of the organization. These factors include the management, the employees and the investors while the external factors include the government regulations and natural causes. Others include political, economic, ecological, socio-cultural and technological issues. MIND could proceed with its expansion plan but it needed to establish networks on the ground beforehand, carry out more extensive research and legally prepare itself for the launch in the area.

Introduction

In this report, the first part present the internal environment of the MIND containing the corporate governance, mission and vision statement , stakeholders and analysis organizational structure of MIND .

The second part describe evaluation and analyses of the external environment of MIND followed by conclusion and recommendations on how the MIND should manage its enlargement to succeed a professional service in the London borough of Camden .

MIND is a mental health charity in the United Kingdom that provides counsel and support to empower mental health patients by carrying out campaigns on service improvement, creation of awareness and promotion of understanding of the mental health issues in the UK.    

An organization’s corporate governance, mission, stakeholders and vision are the most important aspects of the organization. They are the ones that provide the management with the direction and guidance with respect to what to do when, where and how in order to maintain the public image and performance of the organization (Bartkus & Glassman, 2008, p.207). MIND is alive to this facts and that is why it has these important organizational fabrics in place. These form the internal environment of the organization.

Stakeholders of MIND

Stakeholder refers to an individual or a group of individuals that have justifiable interest in an organization and can either be affected or affect the organization. Stakeholders can be classified as either primary or secondary (Menassa & Baer, 2014, p.207). Primary stakeholders refer to individuals or groups that are directly affected by the decisions of the organization and they include investors, strategic customers and employees. Secondary stakeholders on the other hand are those with indirect interests in the organization and they include associations, the media, competition, government and customers (Menassa & Baer, 2014, p.208). Stakeholders can also be classified as either internal or external. Internal stakeholders are those within the organization including managers, board of trustees, employees and investors while external stakeholders include individuals or groups that are not within the organization itself but affect or are affected by the operations and performance of the organization and they include suppliers, regulators, consumers and investors (Menassa & Baer, 2014, p.210).

The internal stakeholders of MIND include the donors, the Council of Management, Trustees, employees and other investors. On the other hand, the external stakeholders include the suppliers, people with mental health problems and their close families for instance their spouses, government regulators like the Charity Commission, competitors such as SANE and donors.

Corporate Governance of the MIND

Youssef (2010, p.1) defines corporate governance as “a system of practises, processes and rules” on which a company’s management bases their management functions of planning, controlling, directing and coordinating. It encompasses the process of striking a balance between the interests of the various stakeholders which include the management, the shareholders, the suppliers, the customers, the government, financiers as well as the community. It addresses the issues that emanate from the separation of ownership and control while establishing a distinct relationship between the managers and shareholders of any organisation. Harford, et al., (2012, p.108) state that corporate governance provides a scaffold for achieving the objectives of the company thus comprising every sphere of management including action plans, internal controls, corporate disclosure and measures of performance.

The corporate governance framework for MIND is founded on the Board of Trustees which is referred to as the Council of Management and aims at ethical management and transparent use of donations as the MIND is a charity organization that relies on donations for its activities. The MIND President is in charge of the day-to-day running of the organisation and reports to the Council of Management (MIND, 2017b). The president is regarded as the organisation’s figurehead and primary emissary in charge of promoting the organisation’s courses. The MIND’s president is the embodiment of the organisation’s credibility, values, authority and trustworthiness (MIND, 2017b).

Mission Statement of MIND

A Mission Statement is a written statement of declaration that describes an organization’s central function, markets and competitive advantage with an unchanging focus over time (Cady, et al., 2011, p.63). Mission statements serve to sieve what is important to the organization and what is not while clearly stating the organization’s target markets and how they will be served while communicating a clear sense of direction to the organization (Cady, et al., 2011, p.63).

MIND’s mission is providing advice and support while empowering individuals with mental health problems (MIND, 2017). Additionally, the organization pushes for service improvement, creation of awareness and promotion of understanding.

Vision Statement of the MIND

According to Cady, Wheeler, DeWolf and Brodke (2011, p.63), a vision statement refers to a description of what a firm yearns to achieve in its mid- and long-term future in the form of mid-term and long-term goals. Vision statements act as comprehensible guide to selecting current and prospective courses of action. The vision statement of MIND is that the organization won’t give up until everyone with mental health problems is accorded support and respect (MIND, 2017).

Organizational Structure of MIND

The system with which an organization uses to establish a form of structure and hierarchy within its management is referred to as an organizational structure (Dees, 2012, p.232). An organizational structure has clear-cut and definite job descriptions within the company and where each of the job levels are supposed to report. This structure is created to determine the way in which the firm operates and helps in the attainment of the organizational goals for purposes of future growth. The structure is often exemplified by an organizational chart. There are different classifications of organizational structures with each classification depending on the classifier’s school of thought (Dees, 2012, p.233). The most common organizational structures include the functional, divisional, traditional hierarchy and matrix organizational structure.

The organizational structure at MIND is divisional. In a divisional organizational structure, the leadership of the organization is structured according to the various projects, geographical territories, products, or a combination of several of these. This structure is synonymous with large organizations that either operates in a large geographic area or has several separate smaller firms operating semi-autonomously under the umbrella group to cover different market segments, product ranges or service types (MIND, (2017c). At the peak of MIND’s management structure is the Council of Management whose functions include acting as trustees to the charity and directors of the company. However, the organization also has a subsidiary called the MINDs Matter Limited which deals in the organization’s trading activities. Additionally, the charity has other connected trustees including the Elliott Charity and the Mary Hemingway Rees Memorial Fund (MIND, 2016, p.23). At the very bottom level of the management structure is the MIND Network which is made up of local MIND Associations operating as separate entities complete with individual financial activities and related estimates.

Advantages of Divisional Organizational Structure

There are a number of advantages associated with the divisional organizational structure. First, due to its foundation on a massive delegation of power and authority, the performance of individual sections and divisions within the organization can directly be measured (Bao & Wang, 2011, p.81). This is because each of the divisions executes their activities independently. Consequently, unprofitable divisions can be done away with while measures can be taken to provide the necessary support for the profitable divisions. Secondly, the development of division heads ensures that each of the managers takes care of all the functions that are related to the products under their division. Consequently, there is increased accountability for sales and profits for each division. This helps in the skills development among the division heads while enhancing their performance and employee morale for each of the divisions (Bao & Wang, 2011, p.81). With autonomous local MIND Associations and the various charities within the MIND Management structure, the charity is able to meet its performance goals and objectives as employees are motivated and there is increased accountability among the autonomous structures (MIND, 2017c).

Thirdly, a divisional structure shortens the decision-making process as every division within the organization is independent ((Bao & Wang, 2011, p.82). Consequently, it is easy to change the size of the business by simply adding or removing divisions as the division heads can execute any decision that affects their division without necessarily consulting with other heads of other divisions. Furthermore, there is more efficient and effective ability with respect to the various coordinating activities between and among the various divisions within the organization as there is role distinction between them. There is equally enhanced flexibility when it comes to responding to alterations and modifications in the local market. Lastly, divisional organizational structure leads to more specialization of divisional expertise among employees. With specific skills being brought on board within the management structure of the MIND, the organization ensures that there is specialization of expertise which enhances the performance of the MIND.

Disadvantages of Divisional Organizational Structure

In spite of its numerous advantages that the divisional organizational structure presents to MIND, there a several disadvantages that the structure has that may be detrimental to the organization. First, there is a likelihood of experiencing conflicts between divisional heads as everyone would want to establish their supremacy within the organization by demanding maximum resources for their divisions to gratify their own ego (Bao & Wang, 2011, p.84). Secondly, there is a high likelihood of duplication of functions among the various divisions within the organization. For instance, some of the roles undertaken by the MINDs Matter subsidiary could be done by Local MIND Associations. This role duplication leads to misuse of resources within the organization and the cost of operation eventually increases gratuitously.

There is equally a reasonable likelihood of the various divisional heads having a selfish attitude as they try to exhibit their better performance even at the expense of other divisions within the organization (Bao & Wang, 2011, p.83). When this selfish interest spreads across the organization, it becomes a concern for the various stakeholders within the organization. Office politics are a common phenomenon in firms that practice divisional organizational structure (Bao & Wang, 2011, p.86). This may lead to wastage of important time and other resources that would have been used in the strategic thinking that is beneficial to the organization. Additionally, divisions within the organization lead to compartmentalization which in the end results in incompatibilities among company products and services (Bao & Wang, 2011, p.87). Since when it was founded in 1946, MIND’s organizational structure has proved to be beneficial to the organization. Therefore, it is an effective structure owing to the numerous advantages that it presents to the organization.

An organization’s external environment comprises of all the outside that elements and factors that impact the organization’s operations (Al-Debei & Avison, 2010, p.359). In order for the organization to survive, it must act or react upon these factors. The external environment is subdivided into micro and macro environment with the micro environment being made up of all the elements that directly affect the operations of the firm and the macro environment being made up of all the factors that the firm typically has no control over (Al-Debei & Avison, 2010, p.359). The triumph of the firm depends on how quickly it adapts to these factors within the external environment. MIND is set to undertake an expansion exercise aimed at providing specialized services in the area of London borough of Lewisham.

The London borough of Camden is one of the 32 local authority districts found within the Greater London administrative area. This London borough is found towards the north-west of London with its principal settlement being Camden. The borough is administered by the Camden London Borough Council. Geographically, the London Borough of Camden is located to the northern of London city stretching from Bloomsbury and Holborn towards the south to Hampstead Heath towards the north. The borough borders the City of Westminster and the City of London on its southern side, Barnet and Haringey towards its north and Brent and Islington to the west and east respectively.

External Environmental Analysis using PEST

According to Blery, Katseli and Tsara (2010, p.58), PEST analysis refers to one of the concepts in marketing principles that is used as a tool by organizations to keep an eye on the environment in which they are transacting their day to day operations or in which they are planning to launch a new product, service or project. PEST is in fact an acronym standing for political, economic, social and technological. These are the external factors that often influence the various activities the organization undertakes. The tool was created in 1967 by a Francis Aguilar and can work alone or be used in combination with other tools to help organizations and companies to enhance their decision making process and timing (Blery, et al., 2010, p.59).

Political Environment for Camden

The political environment for Camden refers to factors such as the trends in government policies and the various relationships between government agencies and the business community. These factors affect the legal framework that MIND will adopt when launching its operations in Camden. Additionally, these factors affect the specific market conditions that affect the behavior of the consumers of the services offered by MIND and the amount of assistance the charity stands to obtain from the area government. With the Labour party having the most representation in the local council followed by the Conservatives and the Liberal Democrats respectively, there is optimism for favorable political environment for the operations of the Charity in Camden. The security status in the area is guaranteed and therefore, the organization can feel safe while undertaking its operations in the region. Additionally, there have been a number of legislations that are aimed at providing the best environment for the charity (Blery, et al., 2010, p.59).

Economic Factors

The two year business survival rate in Camden is rated at over 70% but the economic growth rate in the area is very low. The population is highly educated with a sizeable number of people having attained higher education with degrees. The number of jobs available for each resident of the borough of working age is very low leading to high unemployment rates in the area. The London Community foundation has a number of funding opportunities for the Camden region that are aimed at transforming the living conditions of the region. In 2016, the borough received $13.2 from the United States Department of Housing and Urban Development. The grant was meant for the replacement of the substandard housing that was widespread in the region with mixed-income housing.

Apart from these grants, there are several other grants that have given out in Camden to support victims of domestic violence. For instance the Camden/Wollondilly Domestic Violence Committee received a $1,000 grant from the NSW government to support the committee’s projects that aim at creating awareness on domestic violence as well as family violence (Patterson, 2016). Before this, there was the Verizon Foundation grant of $7,500 that was awarded to the Centre for Family Services that is based in Camden and provides human services (Rutolo, 2011). This grant was directed to the establishment’s domestic violence solution that involved the creation of a teen dating violence awareness video. These therefore provide precedence for what MIND expects to get when it launches its operations in the region with regards to the economic factors of the region.

Socio-cultural Environment

Aspects of the socio-cultural environment include the lifestyles of the population, the sex distribution, social classes, minorities, emphasis on safety, population growth rate, age distribution and life expectancy. Others include the size and structure of the families, their attitude towards career, work, leisure and retirement among others. The London borough of Camden has high life expectancy for both men and female at 80 years but the children conception rate of 17% – 22% is very high for such a region with most of this happening in the rural. More adults feel worthless as attributed to the high rates of unemployment which leads to high dependency ratios. According to Hopscotch Asian Women’s Centre, 80% of Asian women in Camden experience sexual abuse, over 60% undergo financial abuse while 50% experienced physical and emotional abuse from their family members (Hotscotch, 2012, p.5). This information presents a dire need for domestic abuse services for people in this area. This therefore presents an opportunity for MIND to launch their product in the area.

Technological Environment

There has been a lot of technological developments that have happened and these affects the way in which businesses carry out their operations. These technological influences include product and process innovations that affect the way in which businesses transact their businesses. They present opportunities and threats to organizational operations that are important for gaining competitive advantage and are important drivers of organizational expansion. The London borough of Camden has witnessed the double edge of technology. Technology has played an important role in the reporting of domestic violence cases as well as collection of evidence from scenes such as screenshots, recordings and printing abusive emails. However, abusers have equally exploited technology to cover their tracks and commit criminal acts. According to Cogno (2016), there has been a rise in the number of domestic violence crimes in Camden prompting the establishment of a victims’ centre that is technologically enhanced to help victims recover as well as address other domestic violence related cases. This centre is enhanced by technology.

Recommendations for Managing Expansion

MIND can expand its operations to cover Camden because the area is in need of domestic violence counseling and assistance from a charity organization of MIND’s magnitude. However, there are several recommendations that I believe if the organization needs to succeed in the provision of services in the area, it must consider them. First, there is need for the organization to carry out an extensive background research of the area from time to time to ensure that it sets achievable goals in its operations in the area. Secondly, there is need to align the charity with the regulations and registration requirement for the London borough of Camden in order to avoid litigations that could drain its resources or even stop its provision of services in the area.

Thirdly, there is need for the organization to find ways of providing funding for their operations. Charity organizations rely on donor funding and volunteerism to carry out their operations in regions they operate. Additionally, there will be need for the charity to capitalize on the available resources and build networks around the Camden area in order for the organization to establish itself around the borough. Since there are organizations that are already working to address the problem in the area, MIND will be better placed if it sought for partnership opportunities with these organizations.

MIND’s response toward the internal and external environments is responsible for its success over the years. With its planned expansion to the London Borough of Camden, it is noteworthy that the area really needs the special services that MIND plans to offer to the populations. However, before venturing out, it is important for the organization to ready itself as this expansion will take a toll on its resources. The recommendations outlined in this report will keep MIND on a success path even as it launches operations to support victims of domestic violence in Camden.

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