International Business & Not for Profit Charity Sector

This document discusses the international business strategy of Oxfam, a leading not-for-profit charity organization. It explores the link between theoretical concepts and Oxfam's operations, their transnational solution theory, and their focus on local responsiveness and global integration. The document also examines the challenges Oxfam faces in pursuing their global strategic objectives and evaluates their success in overcoming these challenges.

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Running head: INTERNATIONAL BUSINESS & NOT FOR PROFIT CHARITY SECTOR
INTERNATIONAL BUSINESS & NOT FOR PROFIT CHARITY SECTOR
Name of the Student
Name of the University
Author’s Note

1INTERNATIONAL BUSINESS & NOT FOR PROFIT CHARITY SECTOR
Table of Contents
1. With reference to Oxfam and the Not for Profit Charity sector provide one example which
clearly illustrates ‘a link’ between two theoretical concepts drawn from two distinct pre-
requisites or previous modules that you have undertaken...............................................................2
2. What international strategy is Oxfam pursuing and what particular challenges have they faced
in addressing their global strategic objectives? How successful have they been in overcoming
these challenges?...........................................................................................................................12
3. With reference to Oxfam’s Business Model does this strategy make sense for Oxfam and is it
capable of being adopted by other players in the sector?..............................................................15
4. Through your research into Oxfam, identify appropriate performance indicators to illustrate
Oxfam’s financial and non-financial performance. Undertake a performance analysis of Oxfam
over the last four years. What does the analysis tell you about the success or otherwise of the
strategy adopted by Oxfam and how does it compare with sector benchmarks?..........................17
5. From a Human Resources Management perspective how would you characterize the strategy
pursued by Oxfam? To what extent does this appear to be driven by their business model and
how well does it fit and support their international strategy?........................................................19
References......................................................................................................................................21

2INTERNATIONAL BUSINESS & NOT FOR PROFIT CHARITY SECTOR
1. With reference to Oxfam and the Not for Profit Charity sector provide one example
which clearly illustrates ‘a link’ between two theoretical concepts drawn from two distinct
pre-requisites or previous modules that you have undertaken.
Oxfam is one of the leading not for profit charity organization that focuses in boosting
the social environment and ensuring development in the grassroots levels. It’s an independent
charitable organization that focuses upon emergency relief through empowering common people,
supporting people nations through facilitation of several initiatives post disaster as well as
renders importance on humanitarian development for alleviating poverty. Headquarter of Oxfam,
is located in Oxford where it was established by the year 1942 with the sole motive of social
welfare and currently has its multinational presence (Wilshaw et al. 2015). The international
operation of the company takes under consideration the theoretical consideration of social
exchange theory, transnational solution theory as put forth by Bartlett and Ghoshal along with
the transaction cost theory in order to minimize cost and maximize benefits. The linkage of the
theoretical plinth as discussed with that of the international business operation of Oxfam can be
incorporated as follows:
Transnational Solution Theory
In order to strategize business in the international sphere effectively, the transnational
solution theory delves into different alternative options. It reveals the fact that to expand the
business across the domestic boundaries, two major challenges are being confronted by
organizations and they are: local responsiveness and global integration (Price and van Veen.
2016). This is due to the fact that the organization that are trying to operate overseas have to face
constraints in terms of synchronizing their business operation to maintain the global standard that
is nothing but the way they use to operate in other places throughout the globe as well as the they

3INTERNATIONAL BUSINESS & NOT FOR PROFIT CHARITY SECTOR
have to come up with the local demand or enhance the existing demand for the quality goods and
services that they deploy into the target market abroad. In order to emphasize upon this issue the
Bartlett & Ghoshal matrix can be incorporated as follows:
Figure 1: Bartlett & Ghoshal Matrix
To understand the matrix appropriately it is important to understand the difference
between global, international as well as transnational organizations (Wilshaw et al. 2015). This is
being clarified below:

4INTERNATIONAL BUSINESS & NOT FOR PROFIT CHARITY SECTOR
Clearly from the tabular presentation it is been seen that all of these organizations have
multidimensional presence still there exists minute differences in them, in terms of operational
perspectives. Multi-domestic organizations have higher focus upon local responsiveness as they
prefer to empower common people and develop the locality upon which they possess domestic
presence. Thus these organizations have a tendency to adjust themselves in accordance with the
local culture of their host countries and have less tendency to focus upon global integration.
Organizations that possess lower local responsiveness as well as low pressure for global
integration are regarded as multinational organization. This is also due to the fact that these sort
of organizations focuses in maximization of their production but neither on deploying their
resources worldwide for integrating activities nor on ensuring that their strategic business
decisions are undertaken based upon giving priority to the local places where they execute their
business. The best example on this regard are organizations like ITT, Unilever, etc. (Price and
van Veen. 2016). Similarly, in simple terms firms that have low local responsiveness however,
high pressure for global integration is regarded as global organizations. Moreover, the companies

5INTERNATIONAL BUSINESS & NOT FOR PROFIT CHARITY SECTOR
that have higher pressure for both global integration as well as higher pressure for local
responsiveness is considered as transnational companies. As per the transnational solution
theory, Oxfam should be regarded as a transnational company since it renders higher focus upon
integrating the business operations in global platforms as well as sincerely handles
implementation of their objectives without lowering local responsiveness.
Particulars Multi-
domestic
Organization
Transnational
Organization
Multi-
National
Organization
International
Organization
Global
Organization
Operations
& Trading
These
organizations
have
establishment
s across
many
countries at
the same
point of time
Companies
that operates
taking under
consideration
of high local
responsiveness
as well as high
pressure for
global
integration
simultaneously
. Here transfer
of learning and
skills occurs in
place of
Companies
that have
their
operations in
more than
two of more
countries. In
general, the
number of
countries in
this case is of
medium
range i.e.
between two
to ten.
International
organizations
are different
from
transnational
organizations
where these
firms have
the major
objective to
export their
goods and
services in
those
countries as
The operations
of these
companies are
in nearby 15 to
20 countries.

6INTERNATIONAL BUSINESS & NOT FOR PROFIT CHARITY SECTOR
transfer of
labor, capital
or other
tangible
resources. The
ultimate
strategy is to
integrate the
global
operations
along with
giving
preference to
local cultures
and consumer
demands.
well as it is
necessary
they also gets
involved in
trade with
foreign
countries by
importing
raw
resources.
Investmen
t
In the
countries
where these
companies
operates are
mostly
supported by
In the
countries
where these
companies
operates are
mostly assisted
by FDIs
Foreign
countries are
the target
ones that
provides
foreign direct
investment
These
companies
prefers
foreign direct
investments
in those
countries
Utilizing
domestic
resources as
well as FDIs
are the key of
this
organization.

7INTERNATIONAL BUSINESS & NOT FOR PROFIT CHARITY SECTOR
foreign direct
investments
similar to that
of the multi-
domestic
companies
for business
expansion of
this firms.
where they
have
accomplished
their exports
and imports
activities.
Strategy Preference is
given
towards
making
decentralized
organizationa
l structure as
well as key
decision
making
functions
where the
multi-
domestic
branches are
responsible to
determine
Key focus is
given to the
local and
regional
benefits along
with ensuring
that their
decentralized
organizational
structure is
able to
maintain
uniformity
within its
products and
services by
integrating the
The key
strategies of
this firms are
key decision
making
structure and
centralized
organizationa
l structure.
The key
decisions of
these
countries are
undertaken in
the domestic
countries due
to the fact
that these
companies do
not have
branches in
the foreign
countries.
The key
decision
making are
being taken
from the
domestic
companies as
well as the
approach is
maintained in
an centralized
way by the
headquarter of
the company.
The decisions
may be related
to merger

8INTERNATIONAL BUSINESS & NOT FOR PROFIT CHARITY SECTOR
their business
decisions
taking under
consideration
the local
preferences
way of their
business at
global sphere.
formation or
acquisition as
well as
launching of
new products.
Products/
Services/
Research
&
Developm
ent
Focus is
given upon
developing
products and
services as
per local taste
and demands
At various
countries,
Subsidiary
companies
obtains the
rights to
develop
services with
the objective
that,
implementatio
n of those
services will
be able to
serve the local
market
demand better
In general for
the
multinational
companies
the products
and services
are produced
or
manufactured
by the parent
company and
the subsidiary
companies
distributes
them. In case
of NGOs like
Oxfam, the
The products
and services
that are
deployed into
the market
are
domestically
produced in
case of these
companies.
The
development
of the products
are
incorporated
by the parent
company while
the distribution
is executed by
the bottom line
subsidiaries.
But the
subsidiaries
have the right
to engage with
the parent
companies in

9INTERNATIONAL BUSINESS & NOT FOR PROFIT CHARITY SECTOR
followed by
raising the
local
responsiveness
under the
condition that
it will not
hinder then
global
integration
process.
Notably, the
final approval
comes from
the Parent
company’s
side. As for
example in
vase of Oxfam,
this process is
being done at
the grassroots
level by
services are
decided by
Oxfam but
the services
are
implemented
by different
subsidiary
companies or
implementing
agencies both
in domestic
and foreign
countries.
necessary
product
development
process or
service
evolvement
process based
on the need or
demand of the
target
consumer base.

10INTERNATIONAL BUSINESS & NOT FOR PROFIT CHARITY SECTOR
different
implementatio
n agencies.
The
implementatio
n agencies
launches their
services after
approval from
Oxfam.
Challenge
s
Varied
culture and
organizationa
l structure
leads towards
confrontation
with
problems of
manpower
issues
Due to
different
demographic
location and
varied cultural
framework in
different
countries it is
been observed
that the gap
between the
subsidiary
implementatio
The
important
challenge that
this
companies
face is related
to legal
issues that
are majorly
regarding
IPR
(Intellectual
Property
Regulatory
issues,
custom and
legal issues
are the major
bottlenecks
of these
companies
due to the
fact that in
case of some
of the
companies it
These
companies
misses the
local touch
sometimes for
which the
demand for
their
commodities
and services
gets lowered in
few of the
companies.

11INTERNATIONAL BUSINESS & NOT FOR PROFIT CHARITY SECTOR
n agencies and
the Parent
company
sometimes
leads to
unsuccessful
accomplishme
nt of the
organizational
objectives.
Rights) as
well as
copying of
product
ideas.
may happen
that their
products and
services do
not get
matched with
the consumer
preferences,
choice or
taste in some
of the
countries or
which some
of these
companies
may face the
risk of
failures.
Abbreviati
on
M.D.C, MDC T.N.C, TNC Multi-
national
company,
M.N.C.,
MNC
There is no
abbreviation
for these
companies.
There is no
abbreviation
for these
companies.

12INTERNATIONAL BUSINESS & NOT FOR PROFIT CHARITY SECTOR
Example KFC,
McDonald,
etc.
Action Aid,
Oxfam, World
Aid, Help Age,
CRY, ford
Motor, Nokia,
BMW, etc.
Intuit,
General
Motors, etc.
Spencer,
Wal-Mart,
etc.
Microsoft,
Kellogg,
Lenovo, Coca-
Cola, Shell,
etc.
From the discussion it is been clear that the segment in which Oxfam is, can be referred
as transnational company. Being a transnational company the objective of the organization as per
the transnational solution theory is to ensure that the business performance of the organization is
locally responsive as well as they are globally integrated.
2. What international strategy is Oxfam pursuing and what particular challenges have they
faced in addressing their global strategic objectives? How successful have they been in
overcoming these challenges?
It is been seen that the international strategy that is undertaken by Oxfam is transnational
strategy. The major advantage of this strategy is that is simultaneously focuses upon maximizing
local responsiveness as well as ensures global integration. The aspect of local responsiveness is
related to the fact that the targeted locality is getting empowered. Now, the empowerment of the
locality is dependent upon the factors that it constitute. These factors are the income level of the
individuals that resides in the locality, whether they are above the poverty line or not, whether
there is availability of proper educational opportunities for the children, etc. Oxfam works upon
the grassroots level of both the rural and urban sector. It engrosses in enhancing the quality of

13INTERNATIONAL BUSINESS & NOT FOR PROFIT CHARITY SECTOR
living of common people in foreign as well as domestic countries where they ensure the
involvement of the local agencies since they have greater knowledge about the locality.
Local Responsiveness
The motto remains the same and that is to ensure that the locality is coming out of their
hesitation and obtaining their fundamental rights of living in the society. Many societies in both
the developing and less developed countries are still facing the challenge to upgrade their living
standards both socially as well as individually. In many foreign countries Oxfam have found that
a segment of people are oppressed as well as victimized at the hand of the rich or at the hand of
the societal structure of those countries due to the traditional system that is prevailing over years
(Price and van Veen. 2016). The focus of Oxfam is not only to provide fund and ensure that
enough cash is available to the individuals but to ensure that the individuals are being trained
enough so that they can earn their own living significantly. Thus the objective of the company is
focused upon empowering individuals. It includes lowering of dropouts among children from
school, training parents to send their children for school and not allow them to work as child
labor, empowering women that are victimized or socially ostracized in the male dominated
societies, etc. In an overall sense to ensure local responsiveness, Oxfam strategizes their
approach in the places where the government of the country is not able to reach substantially and
boost the local people in an impactful way.
Global Integration
Apart from that the notion of global integration, is related to maintaining the uniformity
among the way of operations as well as the results that comes out after the operations. If it is
found that there is essentiality of creating non-formal education centers in the rural areas, to
support the Dalit children, then Oxfam will prefer to implement so with the help of the

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implementing local agencies or subsidiaries, not in a single foreign country but in multiple ones.
Through this procedure the company is able to maintain global integration. Oxfam thus focuses
upon creating influential network where they can raise the quality of programs that they facilitate
to handle to poor, help the needy as well as provide funds for the people who wants higher
education. The constraints to the process of global integration are nullified through sponsorship
activities undertaken by the company. In this procedure the company approaches people with
interest for helping the needy. The agreed people for example provides funds for the children
they wants to sponsor. The sponsorships reaches to the children through the implementing
agencies who executes betterment of the children. The sponsors are not able to maintain direct
interaction with the children they want to sponsor due to the reason that the children are not
always resides in a closer place. It may happen that they children are of foreign country and
speak foreign languages for which neither the sponsor not the sponsored children can understand
each other languages. To reduce the gap Oxfam allows the local implementation agencies to
coordinate appropriately between the sponsored children and their sponsor when the sponsors of
foreign nationals conveys their will to visits their children they are being sponsoring for years
(Jeans, Thomas. and Castillo. 2016). Thus a complex process of global integration is being
accomplished between people who resides too far yet are able to unite significantly.
Moreover, through the non-formal education centers Oxfam is able to empower the local
children where they recruits local teachers, train them effectively so that they can significantly
guide the children. Periodically they monitor activities that are being executed by the
implementing agencies or local subsidiaries, to check whether they are conducting monthly
meetings with the community organizers as well as parents of the sponsored children. Personnel
from Oxfam visits the target areas quarterly and directly interact with the sponsored children as

15INTERNATIONAL BUSINESS & NOT FOR PROFIT CHARITY SECTOR
well as their parents. Through the focus group discussions and one to one sessions, the Oxfam
understand the constraints that are being faced by the common people and understands the flaws
and fortes in their operations. Based on the midterm review as well as feedbacks from the
sponsors that visited their sponsored children, Oxfam renders greater efforts to minimize the
loopholes in their process of global integration and local responsiveness (Rowlands. 2016). The
impactful approach of the company also gets accomplished through the regular basis trainings
that they execute upon those people to empower them. They even encourages people in
campaigns to maintain a strong impact upon the people who are facing similar problems but are
not able to come out of their hesitation levels due to social or family problem. Proper advocacy
training and convincing people in a way so that they can realize their fundamental rights are one
of the essential goals that Oxfam executes through its enhancement of local responsiveness
(Price and van Veen. 2016).
Oxfam is successful in coping up with the challenges through implementation of various
projects in different areas of foreign and domestic counties. In areas where they detected that
there is labor force but they are not skilled and hence the locality have an average income level
lower than the expected level. In that case Oxfam surveys over the market structure, nature of
livelihood earning and provide solution through which the locality can raise its average level of
income as well as empower the state of living of common people.
3. With reference to Oxfam’s Business Model does this strategy make sense for Oxfam and
is it capable of being adopted by other players in the sector?
Oxfam is able to strategize their operation through the transnational strategy where their
business model works at the grassroots level. For example, it trains the male people in
agriculture intensive countries in a way through which they can execute Vermi (a worm that

16INTERNATIONAL BUSINESS & NOT FOR PROFIT CHARITY SECTOR
raises the fertility of the agricultural land) production (Larson and Foropon. 2018). Oxfam
provides initial funds for buying the saplings, the people are trained to make them learn the
process of cultivation in a scientific and technically efficient way. Proper experts monitors the
work of those people periodically and advises them if any changes or new initiatives are requires
even sometimes provides funds as well as other resources as required which is not affordable by
the common people. After that when the cultivation is complete the agricultural goods and being
marketed in the local market by the people and the revenue earned from them is partially given
to Oxfam as a token of appreciation and rest is kept with the common people. This complete
procedure raises the income level of the individuals as well as boost their skill level. A notion of
good cultural environment are also created through this process. Other example are the children
who are not able to go to school due to the reason that schools are far, or their parents sent them
for work because they have to earn their own living and family condition is not financially
stable. In such cases Oxfam, not only provides funds but also ensures that the mentality of the
common people gets changed (Crewe. 2018). Other competitors in this field is following the path
led by Oxfam for empowering common people and boosting the structural framework of the
localities along with breaking the tradition societal structure. The tradition societal structure
encourages oppression, discrimination among male and female, reduce education of children, do
not focuses on ways to improve the standard of living of common people as well as their level of
income. However the transnational strategy of Oxfam helps in boosting the quality of living of
people, give them voice to speak, allows them to demand for their fundamental rights, enhances
work engagement and ensures empowerment of people as well as social welfare at the grassroots
level where the government of the countries are not able to reach effectively (Baker. 2017).

17INTERNATIONAL BUSINESS & NOT FOR PROFIT CHARITY SECTOR
4. Through your research into Oxfam, identify appropriate performance indicators to
illustrate Oxfam’s financial and non-financial performance. Undertake a performance
analysis of Oxfam over the last four years. What does the analysis tell you about the success
or otherwise of the strategy adopted by Oxfam and how does it compare with sector
benchmarks?
The major performance indicators in Oxfam is its financial and non-financial strategies.
The company focuses on boosting the culture of the locality where the company work (Prasanna
and Haavisto. 2018). In order to execute so, it focuses in maintaining transparent financial
statements as well as accountability of financial and non-financial activities are kept. The
budgets are being prepared effectively as well as evaluation and monitoring activities are
periodically executed. The financial ratios can be incorporated as follows:

18INTERNATIONAL BUSINESS & NOT FOR PROFIT CHARITY SECTOR
Natural resources are fairly shared and the justice over gender is encouraged through
injecting the notion of eradicating discrimination in the minds of the common rural people. In
urban areas Oxfam focuses in raising the level of living of the people those who lives in slums
(Baarsch et al. 2015). The financial structure of the last four years reveals the fact that the
company strongly focuses upon its operational activities and ensures creation of assets for the
common people which the common people can encash in future for their own living. The
company do not focuses upon raising the income level of the people but also to empower them
so that the common people become assets to themselves due to their acquisition of new skills and
expertise in their chosen fields (Steele. 2018). It is also been seen that the company has focused

19INTERNATIONAL BUSINESS & NOT FOR PROFIT CHARITY SECTOR
upon boosting its research and development sectors along with the operational sectors through
which their services and key decisions are being effectively distributed.
5. From a Human Resources Management perspective how would you characterize the
strategy pursued by Oxfam? To what extent does this appear to be driven by their business
model and how well does it fit and support their international strategy?
From the perspective of human resource management, it can be incorporated that the
strategic endeavor undertaken by the Oxfam is multi-dimensional. There is hierarchical structure
in the management of the human resource within the organization, however, that employee
hierarchy or the management hierarchy is not allowed to compromise with the objective of the
organization rather the purpose is to boost the implementation of the objective of the
organization in a better way (Adams, Lloyd and Miller. 2015). Oxfam works in an impactful way
were they not only increase the ability of the common people to earn their income rather focuses
in creating capabilities within the common people so that they get empowered. The company
focuses in creating leaders and not only followers. They encourage the common people to come
out of their limitations as well as hesitations that restrict them to earn their fundamental rights of
living followed by grabbing the opportunities for themselves. The chain of procedure that Oxfam
implements both at the localized as well as global level is accompanied by the objective of
individual empowerment. When one gets empowered then that individual is able to empower
another one. The channelization of the procedure is being done through implementing local
agencies where hierarchy of work division is purely done for coordinating work, however, the
company is able to integrate the top management with the bottom line workers through
significant interactive communication periodically (Anderson. 2015). Moreover, the company is
also able to link between the sponsored children and their sponsors significantly where

20INTERNATIONAL BUSINESS & NOT FOR PROFIT CHARITY SECTOR
periodically they allows the visits of the sponsors to their sponsored children. This meeting is
made to maintain transparency and when the sponsors are not able to visit their children then
they periodically on a regular basis sends photos, information, school performance reports, etc.
to the sponsors through which the credibility within the sponsors gets increased. Sponsors gets
convinced with the fact that their children are improving in their life in a better way. Thus both
global integration takes place along with enhancement of local responsiveness. The transnational
strategy provides advantage to the global operation of Oxfam significantly.

21INTERNATIONAL BUSINESS & NOT FOR PROFIT CHARITY SECTOR
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