American red cross swot analysis

SWOT Analysis and PEST Analysis

Ashley Cook

HMSV8304

May 12, 2019

Roger Morton

Introduction

The American Red Cross is also known as the American National Red Cross which is a charitable firm which is purposely offering the emergency helps, the catastrophe assistance, and the disaster vigilance education within the United States. This agency was established in May 1881 by the person knows as Clara Barton. The main reasons for the formation of the American Red Cross were to assists the Americans who were in distress. The founder who is Clara allowed for the volunteerism to occur thus ensuring that the suffering within the American society is significantly reduced. This organization is under the management of the volunteers of the public for the sake of offering the services to the members of the public. This organization is of great importance because it helps people especially during the occurrences of the natural or the man dame calamities which are likely to prevent people from living their normal way of lives (Cross, 2011). The American Red Cross is known as a non-profit organization which is mostly known for the emergencies occurrence on the basis of controlling, planning and the management process. Since the organization does not usually sell any services or products for profit, then it always has to manage the budgeting process very economically so as to ensure that all the crisis and the emergencies are handled well. The American Red Cross is able to do this by planning effectively using both a SWOT and PEST Analysis.

SWOT Analysis

The SWOT analysis was invented in order to help organizations in defining their strategies in the backdrop of the dynamic and increasingly competitive business environment. The name was derived from the fact that it is used to examine the strengths as well as weaknesses of a given organization. The matrix below provides a clear overview over the organization. The matrix identifies that the American Red Cross has a strong brand equity, long history and the organization is thoroughly fulfilling their mission by serving those in great disasters. The organization can also be developed in areas that relate to labor relations, as the organization is known for poor and unfair treatment to employees. The organization also has a limited amount of funds which prevent them from being able to support all of their employees the way they should. The SWOT identifies several strengths and weakness of the organization but the matrix also highlights many growth opportunities and areas that can or may be threats. It has been projected that the American Red Cross organization can join forces and collaborate with other elite organization to gain even more exposure, but to consider the logical threats that include growing competition.

PEST Analysis

The PEST analysis is a strategic management tool used to analyze internal and external factors that impact the situations in the American Red Cross blood services for the Northeast Region. PEST is short for PESTEL, which stands for: Political, Social, Economic, Technological, Environmental and Legal Factors. Each category allows the organization to see identified macro environment of the organization that it operates in. The Matrix below identifies how the present governed system is keeping a close eye on the American Red Cross. The matrix also highlights on certain economic factors affect the organization. One major aspect as it relates to economics for the American Red Cross is the fact that if the government intervenes in the finance and accounting sector for this organization and similar competitors it could impact their organization in a major way. Each of the categories identify major elements that could have a major impact on the organization.

Conclusion

Both SWOT and PEST analysis are conducted to help organizations in planning their business strategy as well as execute them. The SWOT helps to plan the strengths, weakness, opportunities, threats for a business and the PEST helps to come up with the political economic, social and technological factors that should be looked at in a business. Both of these analysis have added benefits for any organizations using them. They both help implement programs effectively, adopt internal and external factors, helps simplify strategic planning and most of all help guarantee the overall success of an organization.

SWOT

PEST

Strengths

Political Factors

· American Red Cross is very famous brand and it’s well known in whole world. It has very strong brand value in the market and whenever there is any situation the first name in mind come up is Red Cross. Red Cross’s famous line ‘Together, we can save a life’ represent the trust amongst people and its popularity amongst them.

· Government resource allocation and time scale – Based on the data in the American Red Cross Blood Services: Northeast Region it is difficult to infer that there will be change in resource allocations.

· Red Cross have long standing history to serve the people in many great disasters and established the name in NGO industries as one of the finest service providers. They have better serve the people and won millions hearts.

· Changing policies with new government – We can make an inference after reading the American Red Cross Blood Services: Northeast Region that there can be a transition of government in near future in most prominent market. Blood Ner has to prepare for this eventuality as it can lead to change of priorities for the sector.

· Red Cross is also famous for its volunteer support and number of support base they have created which no one can achieve that much easily.

· Other stakeholders such as non-government organizations, protest & pressure groups, activist movements play critical role in policy making in Finance & Accounting. Blood Ner should closely collaborate with these organizations so that it can contribute better to the community goals as well as with corporate goals.

Weakness

· Taxation policies – Over the last two decades Blood Ner has benefitted from lower taxation policies throughout the western hemisphere. It has resulted in high profits and increasing spending in the research and development. In the second half Robert L. Simons, Hilary A. Weston believe that it can change

· Red Cross has been in limelight for the same last year that they have handled their workers very poorly and been criticized for that reason. They have laid off staff member because of budget deficit.

Economic Factors

· They were also in news because they have allegation of misusing the fund so much poorly. Mismanagement of fund issues has spoiled their reputation amongst public.

· Increasing liberalization of trade policy can help Blood Ner to invest further into the regions which are so far off-limits to the firm.

· American Red Cross does not have online existence and no one cannot enroll for their course and it does not have any kind of innovation in their service or program.

· Economic Cycles – The performance of Blood Ner in Finance & Accounting is closely correlated to the economic performance of the country it is present in.

Opportunities

· Downward pressure on consumer spending – Even though the consumer disposable income has remain stable, the growing inequality in the society will negatively impact consumer sentiment and thus impact consumer spending behavior.

· Red Cross can have exposure by joining any elite organization which is not involved in politics and can expand its operation to serve the American and other continents effectively.

· As like The American Red Cross no organization provide the blood donation so that they can enjoy this fact and can have advantages in this program and reach to millions through this campaigns.

· Economic Performance of Blood Ner – I believe the economic performance of the markets that the firm is present in - grow above 9-10% because of increasing government expenditure, increasing disposable income, and increasing investment into the sector.

· They can innovate their organization and make sure to enjoy their competitive advantages in NGO industry.

· Availability of core infrastructure – Based on data provided in American Red Cross Blood Services: Northeast Region case study, the government has increased the investment in developing core infrastructure to facilitate and improve business environment. Blood Ner can use it to penetrate tier 2 and tier 3 markets.

Threats

Social Factors

· The American Red Cross is facing stiff competition from different NGO organization which have better facilities and vast reach, they also have ultra-modern facilities.

· Education level – The education level is high in the Blood Ner existing markets. Based on evidences in American Red Cross Blood Services: Northeast Region case study, you can suggest building a R&D center in the local market

· The American Red cross have been affected by the government policies and tax policies and as they have to manage their fund.

· Leisure interests – the customers that Blood Ner targets give a very high preference to experiential products and services. The firm needs to spend more energy to meet the preferences and expectations.

· Societal norms and hierarchy – the society as portrayed in the American Red Cross Blood Services: Northeast Region case study is different from the home market of Blood Ner. It should strive to build a local team that understands the societal norms and attitudes better to serve the customers

· Media outlets play a critical role in influencing the public opinion. Both traditional media and social media are rapidly growing, Blood Ner can leverage this trend to build efficient marketing network.

· Attitude towards health and safety – With increasing liberalization the attitude towards health and safety are getting lax. Blood Ner needs to stay away from these attitudes as the cost of failure is too high.

· Access to essential services – According to American Red Cross Blood Services: Northeast Region case study - In the last decade and half the wider population in getting access to essential services. This has been a result of increasing investment in public services.

Technological Factors

· Research and development investment at both macro level and micro level in Finance & Accounting is increasing. It can lead to industrywide disruption through innovation of new products & services.

· Intellectual property rights and patents protection – If Blood Ner and the sector as whole will have higher safeguards for IPR and other intellectual property rights then more players are likely to invest into research and development.

· Lowering cost of production – The latest technology is fast lowering production and servicing cost in the Finance & Accounting sector. Blood Ner has to restructure its supply chain to bring in more flexibility to meet both customer needs and cost structures.

· Empowerment of supply chain partners – Technology has shortened the product life cycle and it has enabled suppliers to quickly develop new products. This has put pressure on Blood Ner marketing department to keep the suppliers happy by promoting diverse range of products. It has added to the cost of operations of the Blood Ner

· 5G and its potential – Blood Ner has to keep a close eye on the development and enhancement of user experience with increasing speed and access. This can completely transform the customer user experience in the Finance & Accounting industry.

· Technological innovation is fast disrupting the supply chain model of Blood Ner as it is providing greater access to information to channel partners, leading to higher profit sharing.

Environmental Factors

· Waste management especially for units close to the urban cities has taken increasing importance for players such as Blood Ner. Government are fast coming up with strict norms for waste management in the urban areas.

· Paris Climate Agreement has put real targets for the national governments. This can result in greater scrutiny of environmental standards for Blood Ner in both developed and emerging markets.

· Renewable technology is also another interesting area for Blood Ner. It can leverage the trends in this sector. Many governments are providing subsidies to invest in the renewable sector.

· Regular scrutiny by environmental agencies is also adding to the cost of operations of the Blood Ner.

· Customer activism – Greater awareness among customers have also put environmental factors at the center of Blood Ner strategy. Customers expects Blood Ner to adhere to not only legal standards but also to exceed them to become responsible stakeholder in the community.

· Extreme weather is also adding to the cost of operations of the Blood Ner as it has to invest in making its supply chain more flexible.

Legal Factors

· Business Laws – The business laws procedure that government follows. Are these norms consistent with international institutions such as World Trading Organization, European Union etc.

· Environment Laws and guides – The level of environmental laws in the country and what Blood Ner needs to do to meet those laws and regulations.

· Health and safety norms in the country and what Blood Ner needs to do to meet those norms and what will be the cost of meeting those norms

· Employment law in the country and how they are impacting the business model of the Finance & Accounting sector. Can these conditions be replicated or bettered in international market?

· Legal protection of intellectual property, patents, copyrights, and other IPR rights in various countries. How Blood Ner will be impacted if there is not enough protection.

References

Schindler, C. E. (2018). Early Public-Private Partnerships for Public Diplomacy. In The Origins of Public Diplomacy in US Statecraft (pp. 111-144). Palgrave Macmillan, Cham.

Cross, R. (2011). American Red Cross. Washington, DC 50.

Bryson, J.M. (2018). Strategic Planning for Public and Nonprofit Organizations: A guide to strengthening and sustaining organizational achievement (5th ed.). Hoboken, NJ: Wiley.