Importance of Strategic Management in Managing Small NGO's

Strategic management
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Table of Contents
INTRODUCTION...........................................................................................................................3
Aims and objectives.....................................................................................................................4
Research questions.......................................................................................................................4
Statement of problem...................................................................................................................5
Purpose of study..........................................................................................................................5
Significance of study...................................................................................................................6
Theoretical perspective................................................................................................................7
Research methods........................................................................................................................7
Delimitations................................................................................................................................8
Limitations of study.....................................................................................................................8
CHAPTER 2 LITERATURE REVIEW..........................................................................................9
CHAPTER 3 RESEARCH METHODOLGY...............................................................................14
CHAPTER 4- DISCUSSION, ANALYSIS AND INTERPRETATION OF DATA....................19
CHAPTER 5: CONCLUSION AND RECOMMENDATION.....................................................30
REFERENCES..............................................................................................................................34
APPENDIX....................................................................................................................................36
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Title- Importance of strategic management, its levels and tasks in managing small NGO’s
INTRODUCTION
Every organisation required a specific strategy management to develop and implement
strategies. this is because it allows them to sustain for long term in the market and compete with
rivals. Also, in order to achieve mission and vision strategy is required that consists of short and
long term goals (Ansoff, Kipley and Ansoff, 2018). A strategy is an overall plan that contain
one or more than one goal to be achieved. It specifies that how business operations are to be
performed so that goals are attained successfully. generally, there are some core components of
strategy that are area, staging, economic logic, etc. It can vary as per business needs and market
situation. also, it differs from business to business and within industry as well. there are different
types of strategies that are developed and executed. it is applied at various levels within
organisation. However, there are three types of strategies which is corporate, business and
functional level. with help of this, it allows in managing employees and attaining goals and
objectives. basically, strategic management is process or framework that is followed by business
to formulate strategies and execute it. Also, it includes several steps and stages which provide a
direction on how to form strategy. Moreover, goals and objective are set in accordance with
organisational overall mission and vision. Besides that, it is necessary for business to monitor,
analyse and evaluate strategies so that it can be identified whether goals and objectives are
attained or not. This is because any change in strategy results in impacting on entire organisation
success. In order to effectively implement strategic plan, it is necessary to communicate with
goals to staff. this gives them insight on what task and activities they have to perform and in
what time (Ginter, Duncan, and Swayne, 2018). Alongside, plans are developed by gathering
data from various sources such as market, suppliers, industry, etc. It provides in depth
information about current market condition and customers needs, trends, etc. tactics are included
within strategy as it enables in achieving one objective. These tactics differ as per goals
mentioned. Organisational culture plays vital role in strategic management process. The culture
consists of structure, roles of department, etc. so, as these strategies are to be executed within
culture it is necessary to create a positive culture.
however, strategies have to be aligned with culture so that employees highly contribute in
performing their roles and attaining goals. other than this, it requires discipline and policies on
how to work in systematic way. However, in developing of goals, stakeholders play significant
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role. They provide crucial info and data and also support in implementing those plans. Apart
from it, certain tactics are also applied in such a way that goals are achieved.
Strategic management is a concept that is followed by businesses from earlier times. this
involve setting of goals and accomplishing it (Lasserre, 2017). Moreover, strategic management
is sub set of business management in which both short and long term goals are specified along
with effective decisions to be taken. Besides that, there are five stages of management process
which is followed. first is analysing organisation current strategic direction, second is identifying
strength and weakness, third is forming action plan and fourth is executing those action plans.
The last stage is assessing whether strategic plans are achieved or not. If not, then the entire plan
is investigated to identify where variation has occurred and reasons behind it. Furthermore,
proper measures and action is developed which is considered in developing strategies in future.
A business follows some models as well which in framing strategies. These models are SWOT,
balance score card, pestle, etc. that provide crucial info and data about business environment.
through that, current strategic analysis is done which makes is easy to set goals. Apart from it,
internal and external factors are determined that can impact on strategy. thus, accordingly action
plan is developed.
Aims and objectives
Aim- to analyse the importance of strategic management, its levels and task in managing small
NGO’s.
Objectives
 To analyse importance of strategic management in different types of organisation
 To investigate role of strategic management in developing NGO’s
 To determine relationship between levels and stages of strategy
 To evaluate stages and activities of strategic management process
 To find out general model that governs strategic process
Research questions
 What is the importance of strategic management in different types of organisation?
 what is the role of strategic management in developing NGO’s?
 What is the relationship between levels and stages of strategy?
 Which are different stages and activities of strategic management process?
 How general model of strategic process is governed?
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Statement of problem
It has been identified that there are many problems and issues which is being faced by
small NGO’s in strategic management. they are not able to develop proper and effective
strategies and execute it. However, there are some form of strategic management followed but
many NGO’s are finding it difficult to achieve goals and objectives. so, it is highly impacting on
their performance and growth and development (Rothaermel, 2016). In addition, the procedure
or framework formed by management is not efficient enough due to lack of communication,
ineffective policies, external factors, etc. which influence on decision that are taken. moreover,
the NGO’s require proper support from stakeholders as well in SM process. But with change in
business environment and trends strategies are not followed in systematic way. Another problem
that is faced by NGO’s is lack of resources and capability to organise their planning. Apart from
it, specific policies and procedure are not properly adhered and imposed. also, local authority is
not supporting in finance terms and social work. However, there are some internal problems as
well such as organisation structure, culture, etc, which is an issue for NGO’s to do strategic
planning.
Purpose of study
It has been identified that many NGO’s are facing issues related to strategy and plans. Due to
this, they are not able to achieve long term goals and objectives. Thus, it is highly impacting on
their performance (Shujahat, Hussain and Ali, 2017). Moreover, it is stated that there is no
specific framework or procedure which is followed or applied by management of NGO in
developing strategies. Apart from it, if effective strategies are developed, they are not executed
properly. It may be because of certain issues or problems related to communication, decision
making, stakeholder interest, etc. however, the model applied by NGO does not possess specific
steps or stages. Therefore, it becomes difficult to monitor and evaluate those with set goals and
objectives. Likewise, there are certain stages which may not be set accordingly to NGO neds.
hence, there are various purpose of doing this study. The main purpose of study is to find out role
of strategic management in developing NGOs. As it is discussed that strategies play significant
role of growth and development of business. So, it will be identified about to what extent
strategies are useful in improving the performance of NGO’s. Besides that, it will be easy to
identify what type of strategies are formed and executed in it. However, study will provide in
depth details about how well strategic planning is done and what activities are followed by
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NGO’s in forming and implementing those at various levels. Alongside, it will enable in
analysing the relationship between levels or stages of strategy and how it is applied in NGO’s.
Furthermore, the entire strategic process will be evaluated in study that will allow in getting
entire description about each stage and what sub activities are followed in it. So, it will be easy to
differentiate stages and analyse their importance (O’Neill, 2016). In addition to it, purpose is to
find out generic model of strategic management process which governs as w whole. However,
importance of strategic management in different types of organisation is studied. Through all
these, scholar will be able to understand that what is the role of strategic management in NGO’s
and how it can be used to enhance its performance.
Significance of study
Strategic management is highly used by organisations in formulating strategies on basis of
goals and objectives. It consists of a framework through which is strategic planning is done.
However, this research will be useful in finding out role of strategic management in various
companies (Lasserre, 2017). Moreover, it will give insight about different stages of process.
hence, by following those stages NGO’s can also do strategic planning and improve their
performance. In addition, similar strategic model can also be used or implemented by other
organisations. It will be easy for them to enhance their performance and gain competitive
advantage by achieving goals and objectives. Alongside, scholar can also conduct study on
various elements related to strategic management process and how it impacts on their growth and
development. Similarly, study can be done on different types of strategic process and its use on
organisations. In that each process can be examined and its effectiveness is measured. thus, it
will enable in reflecting on things related to strategic management and NGO’s. (Bonsu, 2019)
However, in future by analysing the outcomes of study scholar organisation can do
research on their strategic process and finding out areas where improvement is required. thus. on
basis of quantitative data those changes can be made. similarly, small businesses can also use
results of this study and analyse their performance. They can apply strategic management
process in improving productivity. furthermore, scholar can conduct research in future about how
interest of stakeholder affect on goals and objectives of strategy. besides that, impact of change
in external and internal factors on strategic management process will be evaluated as well. Also,
it will include several steps and stages which provide a direction on how to form strategy.
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Moreover, goals and objective are set in accordance with organisational overall mission and
vision.
Theoretical perspective
There are certain assumptions which will enable scholar to inform about strategic
management process in NGO’s. Here, different perspective will be used in it. The research
question will help in providing answers about NGO’ s performance in regard with strategies
(Karlik, Kukor and Yakovleva, 2017). Furthermore, activities and tasks related of strategic
process is mentioned in it. Besides that, scholar will use research design to obtain results and
evaluate it. however, qualitative method is used so some assumptions related to concept is
considered.
Research methods
Research philosophy –It contains a framework on which overall research is based. It describes
the way in about overall purpose of research. There are many philosophies available like realism,
pragmatism, interpretivism, etc. In pragmatism study is based on relevant concepts. Realism is
based on scientific approach through which knowledge is developed. Whereas interpretivism is
applied to analyses quantitative data to access reality about topic. In context to present study,
scholar will use positivism philosophy (Bonsu, 2019).
Research approach – It refers to plan or procedure which states how data will be collected and
analyzed. This is useful in conducting study in systematic manner and interpreting data as well.
Generally, deductive, inductive and abductive are common approaches used. In deductive
hypothesis is developed on basis of research questions. In inductive theories are concluded which
is based on observations. Abductive is not used commonly in study as it is based on empirical
phenomena. In present study, inductive approach will be used.
Research type- It is the base of study which is related to collection of data. The information
gathered by scholar is useful in producing relevant results. Research type gives description about
which type of data will be collected. Basically, qualitative and quantitative are two research
types (Baumgartner and Rauter, 2017). Qualitative is entirely based on theoretical concept as no
numerical. Whereas in quantitative statistical data is produced. Here, qualitative research type
will be used by researcher.
Data collection- It is a way or process of collecting data. It is most important element in
methodology because overall results are based on this. The data needs to be gathered from
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authentic and reliable sources and then analyzed. Primary and secondary are two data collection
techniques. In primary new data is gathered from survey, interview, etc. while in secondary
information is gathered from previous study, articles, etc. Here, researcher will collect data
through both primary and secondary methods.
Delimitations
Here, the researcher has set certain boundaries in which study will be conducted. the first is
NGO’s and non profit organisations will be considered in it. also, previous data gathered from
journals, articles, etc. will be included in it so that it gives insight about role of strategic process
in NGO’s performance and define relationship between them. On basis of theory it is easy to find
out how each stage of process led to effective accomplishing of goal. Moreover, how failure of
strategy affect on overall performance of NGO’s. Hence, it aids in comparing outcomes with
actual goal and finding the difference. The NGO’s are chosen for this study because they do not
follow specific strategic management process. So, it directly impacts on their performance
(O’Neill, 2016). Apart from it, with help of effective strategy the NGO’s can survive for long
term and achieve goals. In similar way, if other organisations are able to attain goals then NGO’s
can accomplish as well. thus, the difference will be determined so that’s why small NGO’s are
taken as target population in it.
Limitations of study
In current study there are several limitations which may impact on its overall results. Here,
only strategic management process is evaluated so the organisation performance is not only
impacted due to strategy but also culture, external and internal factors, stakeholder, etc. thus, it is
difficult to find out of impact of strategies. Moreover, another limitation is small NGO’s are
taken in it where limited strategies are developed. so, results obtained reflect on basic terms. In
addition to it, there is nothing mentioned about type of strategy and whether short or long term
are goals are mentioned in it (Bonsu, 2019). Another limitation is no role of manager and leader
is included in study that can impact on strategic management process. However, the data
gathered is qualitative and theoretical so it provides info about concepts and theories. In this
there are no facts and figures will be generated so on basis of it impact of performance of NGOs
is analysed. Therefore, it is difficult to find out impact on NGO’s performance.
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