Strategies of Change Management for American Red Cross

This study advises American Red Cross on effective strategies of change management to accomplish goals and provide support to vulnerable people. It discusses the importance of using PESTLE and SWOT analysis models to identify internal and external factors and develop strategies. The main problem identified is the need for training a large number of volunteers. Other challenges include climate change, economic loss, and increased demand for healthcare.

American Red Cross

Abstract
This study advices or supports American Red cross company to identify some effective
strategies of change management. It has made it able to make effective changes and accomplish
all pre-determined goals with the main aim of providing support to vulnerable people. It also
shows importance of using PESTLE and SWOT analysis model for identifying both internal and
external business environmental factors and developing strategies on the basis of analysis.

Table of Contents
Abstract............................................................................................................................................2
INTRODUCTION...........................................................................................................................1
Aim of this report...................................................................................................................1
Rationale.................................................................................................................................1
MAIN BODY...................................................................................................................................2
Problem identification............................................................................................................2
Situational analysis.................................................................................................................3
Situation of change.................................................................................................................7
Drivers and resistors to change...............................................................................................7
Strategy of implementation....................................................................................................8
Theory of change..................................................................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Strategic change refers a movement of a company away from its present state towards
effective state of the future in order to improve services and accomplishing goals (Ocasio,
Laamanen and Vaara, 2018). This present study is based on American Red Cross. In the context
of American Red Cross it can be said that it is a humanitarian organization which provides
several emergency services to people. Some services include: Disaster relief, emergency
assistance, support families of militaries, health and safety services etc. It also makes people
aware and teaches them about saving their lives. This will show importance of PESTLE and
SWOT analysis models as how it helps this company in analysing all factors which can affect its
performance and revenue as well. In the context of success of America Red Cross it is stated that
strategies is one of the main key as it makes them able to accomplish their goals and identifying
both internal and external environmental factors. There are several problems which this company
face but change management and strategies adaption make it able to accomplish its goals. This
present study is going to show the main problem and some problems which American Red cross
is facing or has faced and with the help of strategies or strategic transformation they analyse the
main problem and solve them. There are some drivers of change which put pressure on the
company to make changes as well as some resistors or factors which create barriers in successful
implementation of strategy and change.
Aim of this report
One of the main aims of this study is to make people and organizations able and aware
about importance of strategies as hoe strategies can help companies in solving problems and
reducing current negative situations. Change management plays an important role as it allows
companies to implement their strategies and adapting changes.
Rationale
The main reason of conducting this report on this topic is to make organizations aware
and making them know the importance of services changes and which elements are required to
implement a strategy in a successful manner. It is important for all organizations specially to non
for profit to identify situation of change in order to improve services and improving image as
well.
1

MAIN BODY
Situational analysis
In the context of American Red cross which is a humanitarian organization and provides
emergency assistance, disaster relief it can be said that it face several problems while dealing
with patients. There are several internal and external environmental factors like lack of
availability of finance, skilled workforces, changes in living styles, economic conditions and
others have critical impacts on its performance. So, by making use of appropriate tools for both
internal and external environmental factors it can analyse situations.
SWOT analysis
There are several internal environmental factors which can affect performance of this company.
Some factor may in the favour of the company and some may be in against of this company. So,
it is important to analyse both types of factors in order to make appropriate and the best decision
about strategy selection. With the help of SWOT analysis model, American Red cross can
identify all factors and can take advantages of external opportunities. All factors are being
discussed below in a detailed manner:
Strengths
 One of the main strength which has made it able to become well-known and become
successful is it is the largest steward of blood products suppliers in the country.
 People have good image for this company in their eyes as they respect and trust in its all
services and products which it offers to them.
 It does not only provide services but also it provides value to them by respecting them.
 It has an effective partnership with federal emergency management agency which allows
it to increase skills and providing effective or qualitative services along with solving
problems of people.
 Due to its image and valuable brand, it has support from the government.
Weaknesses
 It has some weaknesses which can affect its performance to the great extent and one of
the main weaknesses is it had to pay fine for misconduct influence of the management of
finance.
2

 It has several members in its board of director team for which it faces difficulties to
manage all them in an efficient manner. Because managing all of them is quite difficult as
different members have different perceptions and when manager do not consider views of
any member then it makes them feel ignored and create situations of conflicts.
 It continuous faces problems in managing the firm and board of directors.
 One of the other main weakness is it was filed some lawsuits because of mismanagement
of funds and it also becomes fail in meeting needs of victim which somehow affected its
image.
 There is a lack of flexibility skills which is creating several problems as it becomes fail to
adapt situations and responding them in a timely manner. For example: it becomes fail
and it delays in responding 9/11 attack or disaster (SWOT Analysis of the American Red
Cross, 2020).
Opportunities
 With the help of its strengths it can take advantages of several opportunities and one of
the main opportunities which it has is finding partner organizations who can help it out in
providing better services to people.
 One of the main targets of this company is young people and by focusing on them the
most it can make its brand more appealing to its target market or younger generation.
 For accomplishing it’s all goals and the main mission it is important for this organization
to have skilled volunteers. With the help of its strengths and good image it can attract
ethnic minorities to volunteer base.
 Its internal management has transparency and transparency is one of the main key of the
success which is supporting it to increase trust among customers.
 It has other opportunity of increasing or improving relation with donors.
Threats
 It is stated that there is a high intensity of competition and competition with non-profit
organizations is one of the main threat which can create problems.
 Lawsuits and errors in fund management created several problems as it affected its
image.
So, from the above discussed all internal factors it can be said that it needs to focus on removing
all weaknesses. Development as well as implementation of strategies is also depend upon all
3

these factors as which strategy can help it out in accomplishing goals and eliminating all
weaknesses and threats (Thomas, 2017).
PESTLE analysis
PESTEL factors are also known as the external or macro environmental factors that can
affect the performance of the business organization in market place. This is highly important for
the business organization in order to evaluate the impact or influence of these factors on the
organization and perform various actions that are associated with their goals in global platform.
PESTEL is acronym of Political factor, Economic factor, Social factor, Technological Factor,
Environmental Factor and Legal Factors. These is how various considerations are nee to b
considered by the organization in order to make some improvement in their operations and
operations policies to get better result with their operations in market place.
Political Factor
This factors are mainly related to the political stability in the country and various
decisions and policies that are changes by the government in the operations of the non profitable
organization in market place. These are major factors that can affect the operations of the
American Red Cross Organization. The American Red Cross can face various challenges in
operation while working in various part of the globe. In different countries laws and government
policies are different that can affect the working standard of the American Red Cross
Organization. There are different efforts are made by the government which are designed to
enable the operations of organization in various part of the world. The policies that are prepared
by the organization and need to the according to the policies that are designed by the government
(American National Red Cross: Pestle Analysis. 2017). This is highly important for the
organization to implement various processes that can help the organization to get better response
from their operations in target or functional areas.
Economic Factor
The challenges that are faced by the organization are related to the finance related
concerns. Economic situations are not only the concern of the organization there are some other
factors are there that are need to be considered by the organization in order to make proper
improvement in order to reduce the economic factors that can affect the operations of the
organization in target areas (Rodríguez, 2017). There are a lot challenges are faced by the Red
Cross organization which are related to the funding issues. This can affect their operations in
4

target areas. This is major challenge for the organization to maintain their operation effective in
target area with high effectiveness along with global economic fall. This major factor that is need
to be considered by the organization to get better operation in target areas.
Social Factor
Social factors are more related to the personal and social values of the people who are
connected to them in different manner. These people are known as the stakeholders of the
organization and these people can affect the operation of the organization in both positive and
negative manner. There are different factors are considered by the organization in market place.
Organization needs to considered all the human values in order to provide support to the people
who need heal the American Red Cross Organization. There are various changes organization
can made in order to train the volunteer from various part of the countries in order to get better
result in the operational area (Rosenberg, 2019). To meet these goals organization have to
develop effective knowledge in order to provide effective training to the people who are willing
to serve Red Cross Society. Organization can use training to increase the knowledge of resource.
Company can focus on human capital to get better result with in market palce.
Technological Factor
There are various consideration related to the technology can affect the business
operations of the organization in market place. There are still some challenges are faced by the
red cross organization current situation that are need to be targeted by the organization to
generate better operation standard in operational area (Colussi, Isphording and Pestel, 2016).
Organization is still depended on the allies’ organization for technological support. Organization
need to the put more focus on technological development in organization. Organization also need
to considered the transfer of technology to get better response from market place.
Environmental Factor
Organization need to consider various factor that can help them to keep their operation
environmental friendly. American Red Cross also need to focus more on the sustainable
operation in order to gain higher response from market place. They need to focus on
manufacturing units to be based on the sustainability and environmental considerations in order
to generate better response from target area (Hsu and Schuller, 2019). Organization need to
improve the capacity to improve their expansion in international level.
Legal Factors
5

There are different legal factor are need to be considered by the organization to keep their
operations as per the legal considerations in order to get better result from market place.
organization need to focus on IP rights to protect information that can help the organization to
operate in legal way. This is how organization can full fill legal requirement.
So, from the above factors it can be said that anti trust law, problems with donated blood
and changes in political factors or stability is the main strategic related problem associated with
American Red Cross.
Problem identification
It is one of the main stages of making this study of change management and
implementation of strategies for change situations successful. For selecting the best strategy
depends upon the nature of the problem as what is the main problem and according to the
problem, strategies are being developed accordingly. Some problems and areas of concern for
American Red cross include:
Training to number of volunteers: Providing training to number of volunteers worldwide is
other main difficulty task. Employers and HR find difficulties in providing training to large
number of staff members and making them aware about ways of dealing wit different nature,
behaviours and disease of people and how to make them feel comfortable. Providing training to
all volunteers worldwide requires investment in training and development programmes and time
as well.
Climate change: It is considered one of the most persistent challenges for especially those
organizations who provide services to vulnerable people such as Red Cross. Due to climate
changes, disasters are creating several problems for families and vulnerable people and giving
quick response become sometimes difficult. Lack of flexibility can increase consequences and
problems of climate change. Some examples of climate changes are: heavy rainfall, storms,
higher temperature, hurricanes etc. The main aim of American Red Cross was and is to prepare
people for fighting against all these situations and recover them from disasters (Red Cross
Statement on Climate Change, 2019).
Economic loss: Economic loss is other main problem which happens due to these disasters.
Government cannot support to these companies to the extent to which it needed to be and should
be. Lack of fund and ineffective financial management can create several other problems. It
6

affects the poor the most as they find difficulties in getting job and even fostering their families
in providing them food for 2 times. It cuts to government funding by which this company face
problems in implementing its strategies and providing effective services to people.
Increased demand: Population is increasing at a rapid manner and this increment is increasing
demand of healthcare by vulnerable people the most. Increasing population is increasing
competition and in this era, the poor people find difficulties in getting education and other basic
needs. These competition and population and poverty is putting pressure of American Red cross
to increase fund. Each year 500 children are increasing and which is increasing overall demand
of healthcare and others.
Increasing health inequality and poverty: One of the main problems which occur due to
disaster is increasing poverty and health inequalities. It creates several problems because fund is
not increasing and poverty is increasing. Due to this Red Cross faces problems in providing basic
needs to all these people in an efficient manner. Selecting out the best strategy and finding
people who have willingness to provide services to vulnerable people voluntary are the main task
which it has to play.
Situation of change
This is other main step of making strategies implementation of change management
successful after identifying all problems which are discussed above. It shows strategic
transformation of services which allows company to address all issues and solve them in an
efficient manner. Some areas of concerns and situations of change which required effective
strategies implementation include:
Partnership with other companies: One of the main key of American Red Cross is its effective
partnership with others because it believes in working with others and in a group rather working
individually. It also believes that by working in a team and with others can make it able to
provide effective services to people and improve knowledge of them as well. It is stated that
Walmart, its all customers as well as employees are partners of this company. They have become
partner of this company with the main aim of providing and helping people which are affected by
hurricanes, Maria and earthquakes. In this context, it is stated that with the help of Walmart, its
7

employees and customers, American Red cross has raised around $ 5 million with a corporate
match of $10 million in just 32 hours (Corporate Partnership of Red Cross, 2017).
Annual disaster giving program: It is stated that one of the main aims of American Red Cross
is to prevent people against disaster and provide them all basic needs. There are some situations
of changes like decreasing poverty and others. In this context it is analysed that hurricane impact
million of people so it is important for this company to provide immediate care comfort to all
who are in need. In this context, it is also stated that this company has responded to over 60,000
disasters in which they have provided and still providing safe shelter, 2 times of meal, emotional
support as well as required resources. Members of this programme are trained and have skilled
volunteers, effective infrastructure and all resources which are required to provide services.
Drivers and resistors to change
There are several factors or forces which are putting pressure on this company to make changes
and one of the main forces is changing external business environmental factors and their negative
impacts.
 In this context it can be said that by providing training to all workers, this company can
make changes by making them understood referral pathways and how to work
accordingly.
 Other main changes and areas on which it can make changes and improve its
performance is adapting new technology like use of social media, website and others to
engage people to the great extents., It can also allow it to facilitate new approaches.
Some forces of changes and requirement of making changes include: decreasing inequality and
the poverty, providing effective healthcare services to improve health of especially vulnerable
people etc. Decreasing waiting list providing quick services to people is other main forces of
changes.
For all these it can provide a single point access as via developed website and others to
vulnerable peoples and children in this company and improving their health.
8

Strategy of implementation
Before implementing strategies and identifying needs of changes it is important for this
company to communicate need of changes to employees and seek for skills or power to initiate
the process. One of the reasons of communicating is it is stated that getting support of leadership
because it is one of the main key factors of success of any change. There are several models and
strategies as well which can allow this company to strategic change process in order to make the
vision reality. Kottler’s models, Lewin’s model and Mckinsey’s models are some effective
change models. There are some principles of strategy 2020 of American red Cross which
include: humanity, independence, unity and others. All these principles help it out in
accomplishing its all values which are: innovation, integrity, leadership, diversity, partnership,
people etc. International federation of the Red cross and red crescent societies is the main
components of this strategy.
Strategy 2020: This strategy 2020 is being developed on the progress which is achieved under
strategy 2010. It provides the basis for strategic plans of national societies. It is one of the best
strategies till date because it has ability to provide quick response to changing situations and
differing contexts. One of the main features of this strategy which makes it successful is it allows
all members like volunteers, staff, supporters, members and others at one place and engage them
with innovation. Their effective and active engagement in creativity gives practical effects to
strategy 2020. This strategy has all informations as how this company works as per this strategy
and what it will do in the future. It can help it out in changing management and solving problems
which it is suffering from (Strategy 2020 of American Red Cross, 2020).
Maintaining financial stability: It is other main strategy and step of this company which has
made it able to give quick response to disasters and protecting people who got affected from
climate changes. It is stated that climate changes and disasters is one of the main problem and it
is also the reason of fall of economy which affected many of people. But with the help of
stability strategy, capitalization of social media, redesigning of public website made it able to
solve all problems. The fact which is stated that in the 3 months period of spring, this company
launched over 46 relief operations in 31 states with deploying around 13,300 employees or
workers. At the same time, American Red cross opened around 285 shelters, served more than
3.2 millions snacks and meals and around 75,000 mental health consultants to vulnerable people.
9

So, from this it can be said that this company is on the right track and making effective change
management with effective strategies.
Rather, these strategies, it is also stated that with the help of Kurt Lewin’s change
management model, it can manage changes in an efficient manner. It has 3 stages as it describes
changes in a detailed manner with drivers and resisters. For example:
Unfreezing: It is the first and critical stage of this change management model. In this stage,
company has to face several problems because they need to make all people or members aware
about the importance of changes as well as influence them to adapt changes in an efficient
manner. They also need to make all people aware that they will have to move from their comfort
zone to other and giving efforts to the company in order to make changes and giving quick
response to changes. It is stated that it has lack of flexibility and one of the main skills should be
flexibility or adapting disasters types of situations. In this stage, leaders play an important role as
they tell new ways to all members of working and supporting them for being motivated them at
work (Hussain and et.al., 2018). Communication is other main key of the success of this stage as
well as change management because company needs to communicate with all stakeholders as
what is it doing, for what it is doing and what effects will it have.
Change: This next stage of change management is considered the stage of actual implementation
of change like changes of ways of performing and others. It is the stage in which people agrees
on adapting changes, and they adapt new ways of performing and the actual change is being
implemented by the company. There are 3 main factors or keys of success of this stage which is:
careful planning, effective communication to all stakeholders and encouraging involvement or
motivation to workers. This stage is also considered a critical and the tough stage because several
factors occur and become barriers in the path of the success. Workers also have fear of facing
consequences of uncertainties and adopting change process. But by providing them training of
about ways of working they are being made able to adapt change.
Freeze: It is called the last but not the least stage in which all workers move from the stage of
transition or change to a much stable state in which people can regard as the state of equilibrium.
It is the final stage called because all nature and behaviours of workers accept changes and adapt
them in an effective manner. They accept it as the important part of their life which they need to
accept otherwise they can face difficulties in surviving in this changing environment. This stage
does not only allow them to adapt change and using new ways but also improve their relation
10

with each others. For motivating employees and making sure that they will not change their
opinion and perception, employers require providing rewards to them on the basis of their
performance in order to keep them engaged and motivated (Tang, 2019).
So, from the above discussed strategies and the model of change management it can be
said that all problems can be solved out and American Red cross can adapt changes which occur
often in external business environment like climate change and others.
Theory of change
It is the theory which can allow American Red Cross Company to link their strategies
with implementation as well as evaluation process. It helps company in monitoring process and
making sure that if the company is on the right track or can accomplish goals by change
management and implementation of theories. There are some examples of theory of changes of
American Red Cross which has link with outputs and impacts such as:
Theory of change Activities Outcome Impact
Redesigning public website in
order to make easier to make a
donation and helping people to
find informations.
Heavy investment
to put into much
needed technology
or advanced
technology.
It is helping this
company in
serving millions
of people more
effectively.
To become a
financial donor or
a student in a
CPR as well as
first aid class.
To allow people to
provide any type of
informations and
make the best
decision as from
where they can take
help from donors.
Social care is
financial
sustainable as well
as becoming more
able to meet the
most serious needs.
Capitalizing on social media for
maintaining trust as well as
confidence of the public
Vaccination to
children and
providing training
Supporting this
company to
employ more
Attracting hundred
of participants
include experts and
11

(American Red Cross: on the
Path to Stability and growth,
2018). it believes that social
media plays an important roles
as it allows this company to
provide effective services to
people of all ages and to even
all over the world.
to all members in
order to make them
know that how to
make an effective
use of social
media.
volunteers and
talk to more
people as well as
blood donors.
To prepare people
and make them
aware about how
to protect
themselves
against disaster.
Save lives by
teaching skills,
providing
international
humanitarian aid
as well as
supporting
military families.
leaders in providing
them emergency
services and
responses.
Rather, this American Red Cross has made the best use of donor dollars. For making it
successful and influencing people it is working too hard which is making it financial strong,
fiscally responsible as well as creating in making changes accordingly.
Cost continuous culture is other main activity of this company which is making it able to
become financial stable. Making financial stability is important for this company because it is
stated that demand of healthcare and other basic needs is increasing due to increasing population,
competition, advantages technology and poverty. Fall of economy is also affecting this company
in providing effective services to Millions of people. So, in this regards to this organization
started some drastic measures which includes consolidating back office operations of all
12

departments like information technology, marketing, HR, payroll etc. By focusing on all these
areas it has made itself able to cut cost and it eliminated around $209 million annual since 2008
(Embracing Change, 2018).
In addition, one of the other main strategies which allowed this company to engage many
people and making innovation is blue sky fundraising. It also allows all those people who have
willingness to serve people and support this company by providing fund voluntarily. By
bolstering this strategy and making efforts in it, it has improved transparency in its internal
activities. This strategy has also made it able to increase donation from people, corporations and
foundations who want to contribute and by doing this, it gets approximate foundation and
outsiders’ donors to around 22%. By getting support on annual basis it solved problems related
to financial crisis and demand of basis needs or healthcare by vulnerable people. It pioneered a
mobile giving tool in order to make donating of fund quick, easier and more accessible as well.
CONCLUSION
This report is concluding the information about the American Red Cross organization.
various movement of the organization has been presented in the report in order to provide better
over view of organization in local and international market. both internal and external analysis of
organization has been made in report to get biter evaluation about the business environment for
organization and future possibilities of the organization in market place. SWOT analysis has
been performed in the report to get knowledge about the internal capabilities of the organization
in market place. All Strengths, weaknesses, opportunities and threats of the organization has
been studies in the report. For the external factor analysis PESTEL analysis of Red Cross
organization has been performed in report to know the impact of various external factor on the
operations and performance of organization in market place. Various drivers of the changes has
been evaluated in the report. These drivers of change management for the organization to
implement changes in the organization to get better developments in the business organization.
The impact of various factor also has been analysed to successfully implement change
management in the organization.
13

REFERENCES
Books & Journal
Colussi, T., Isphording, I.E. and Pestel, N., 2016. Minority salience and political extremism.
Hsu, K.J. and Schuller, M., 2019. Humanitarian Aid and Local Power Structures: Lessons From
Haiti's “Shadow Disaster”. Disasters.
Hussain, S.T. and et.al., 2018. Kurt Lewin's change model: A critical review of the role of
leadership and employee involvement in organizational change. Journal of Innovation &
Knowledge. 3(3). pp.123-127.
Ocasio, W., Laamanen, T. and Vaara, E., 2018. Communication and attention dynamics: An
attention‐based view of strategic change. Strategic Management Journal. 39(1). pp.155-
167.
Rodríguez, G., 2017. Haitian Drug Lord Who Turned Politician Lands Before a US Judge.
Rosenberg, N.J. ed., 2019. North American Droughts. Routledge.
Tang, K.N., 2019. Change management. In Leadership and Change Management (pp. 47-55).
Springer, Singapore.
Thomas, C., 2017. Evaluating information communication technology (ICT) usage in
humanitarian response: a SWOT analysis and proposal (Doctoral dissertation).
Online
American Red Cross: on the Path to Stability and growth. 2018. Available through: <
https://www.redcross.org/content/dam/redcross/atg/PDF_s/Publications/
Financial_Statements/PresidentialThree-YearReport.pdf>
Corporate Partnership of Red Cross. 2017. Available through: <https://www.redcross.org/about-
us/news-and-events/news/Red-Cross-Thanks-Corporate-Partners.html>
Embracing Change. 2018. Available through: <
https://www.redcross.org/content/dam/redcross/enterprise-assets/pdfs/Gail
%2010YearReport_Final-Pages.pdf>
Red Cross Statement on Climate Change. 2019. Available through:
<https://www.redcross.org/about-us/news-and-events/press-release/2019/red-cross-
statement-on-climate-change.html>
Strategy 2020 of American Red Cross. 2020. Available through: <
https://www.ifrc.org/Global/Publications/general/strategy-2020.pdf>
14

American National Red Cross: Pestle Analysis. 2017. Available through:
<https://casesteam.com/kelloggs/american-national-red-cross-a/pestel-analysis.php>
SWOT Analysis of the American Red Cross. 2020. Available through:
<https://www.coursehero.com/file/p6hk4leu/SWOT-Analysis-of-the-American-Red-
Cross-The-analysis-provides-an-internal/>
15