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Essay / Contemporary Developments in Business Management
Table of ContentsImpact of External Influences on OxfamPESTLE Analysis Oxfam KenyaPolitical and LegalEconomicSocialTechnologicalEnvironmentPorters Five Forces Model (Oxfam)ConclusionThis report will present in this task an organization of Section Q (Human Health and Business social work). It will present an Oxfam NGO and the impact of external factors of the business environment on the organization. “Whether it is an international bank, a university or a multinational automobile manufacturer, no organization exists in a vacuum, there will be competitors, it will be subject to international, national and government regulations. local authorities, pollution regulations, technological changes and the fortunes of the global economy. » (Brooks et al 2011).Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get the original essayOxfam Logo (Oxfam International, 2018) “The name Oxfam comes from the Oxford Committee for Famine Relief founded in Great -Brittany in 1942. » Oxfam International was founded in 1995 by a group of NGOs (non-governmental organizations) with the aim of reducing poverty and injustice on the international scene. The group campaigned for food supplies to be sent via an Allied naval blockade to starving women and children in enemy-occupied Greece during World War II. Oxfam has become the world's leading relief delivery institution and also helps vulnerable communities develop, end unfair trade rules, demand global health and education services for all, and fight against climate change. Oxfam is global, operating in Africa, North and South America, Australia, Asia and Europe (Oxfam International, 2018). Impact of external influences on Oxfam As a multinational corporation, Oxfam has been able to operate freely across many borders, enter into joint ventures with businesses and serve society. This is all due to improved transportation, connections and communications resulting from globalization (“the shrinking of international borders to allow businesses to operate under one roof as a global village”) (Guy, 2007) . Oxfam, however, still has to comply with the policies and economics of international trade. Oxfam operating in Kenya should comply with political and economic forces that may affect its operations. A Pestle analysis is a good tool to analyze the external environment of Oxfam and also analyze the strengths, weaknesses, opportunities and threats that may arise in the form of the overall environment of the NGO. PESTLE Analysis Oxfam KenyaIn a country like Kenya and the African continent in General poverty is endemic, thus increasing the need for social and international assistance. Oxfam should be aware of the external PESTLE (political, economic, social, technological, legal and environmental) forces that may affect its organization. Policy and Legal Oxfam should comply with government regulations such as regulations on environmental pollution, for example (plastic bags and bottles) and preservation of natural resources, for example (rivers and lakes). In order to provide humanitarian services to those in need, Oxfam should comply with Kenyan and East African trade regulations as well as tax laws, import and export laws, while dealing with sponsors and government intervention during natural disasters, for example earthquakes and floods.Oxfam should also comply with tax benefits required by the government as well as NGO annual reports on operations that must be submitted to the government (Oxfam International, 2018). Political and legal factors are likely to affect Oxfam in terms of weaknesses, strengths, opportunities as well as threats to the way Oxfam operates. EconomicKenya has the largest economy in East Africa and is experiencing rapid urbanization, but 17 million Kenyans suffer from poverty and live in non-urban areas. Oxfam is seeking to provide aid to these people, but some economic issues to consider would be: recession which is affecting NGOs more than for-profit businesses i.e. (fuel and food costs) which would slow down operations with sponsors to provide the necessary assistance to those who need it (Oxfam International, 2018). Economic factors can affect Oxfam in terms of strengths, opportunities and threats. SocialSocial factors would actually be contracts with sponsors, partners and donors, for example which individuals and organizations would be willing to join Oxfam's cause in a particular region and help them provide aid to Oxfam. the needy (Gromel, 2011). Social factors will likely play a role in Oxfam's strengths and present more opportunities. TechnologicalThe changing opportunities and urbanization and globalization mentioned earlier can only help increase Oxfam's reach in Kenya and Africa to being able to reach a wider audience so that they can help those in need, for example social media platforms used to raise awareness of issues that need to be addressed, namely hunger, starvation and gender equality (Gromel, 2011 ). Using tracking systems for supplies, food and vehicles to be able to deliver and help communities in need. Here are some of the ways technology can help Oxfam in its mission (Oxfam International, 2018). Technological factors are likely to benefit Oxfam in terms of strengths and also present more opportunities. and conservation of trees, forests and wildlife. As well as natural disasters which can generate an opportunity for aid while leaving many people suffering. Other environmental influences may be competitors competing for sponsors to launch initiatives beneficial to the ecosystem, for example the Red Cross and UNICEF (Oxfam International, 2018). Environmental factors are likely to generate opportunities as well as threats for Oxfam. Porters Five Forces Model (Oxfam) Five Forces Model (Soul High, 2012) Extending from the Pestle Framework, the Porters Framework above examines the five forces affecting NGOs and this can be applied to Oxfam in ways Power of suppliers - in the case of NGO suppliers who are donors and may also be customers, they have a significant impact in ensuring the delivery of Oxfam's mission and resources. Suppliers not only help in the delivery of goods but also in the necessary services required by professionals i.e. doctors, sponsors, volunteers, farmers and teachers. Power of Big Customers – The power of big customers, perhaps corporate funders and other donor organizations. They are very important because they influence the adaptation of a business model, for example running schools that may need student support and rely on Oxfam to do good work or a displaced community.