Management Report: Strategic Analysis of Child Maintenance Service

This report provides a strategic audit and analysis of the Child Maintenance Service (CMS), established in 2012 as part of the UK government's child maintenance reforms. It examines the challenges faced by the CMS, including funding crises exacerbated by the COVID-19 pandemic, which led to reduced income and operational disruptions. The analysis employs frameworks such as SWOT, VRIO, and the Ansoff Matrix to evaluate the CMS's strengths, weaknesses, opportunities, and threats, as well as to suggest strategic actions for improvement. The report highlights positive aspects such as the direct pay service, which facilitates donations and maintenance payments, particularly beneficial for parents with strained relationships. Recommendations focus on enhancing market penetration, leveraging sustainable resources, and improving technical support to generate more income and support child development effectively. Ultimately, the report aims to provide insights into strategic planning and resource allocation to ensure the CMS's long-term sustainability and success in supporting children's welfare.

Individual Management Report

Table of Contents
TASK...............................................................................................................................................3
Executive summary .....................................................................................................................3
Strategic audit..............................................................................................................................3
Analysis........................................................................................................................................4
Critical reflection.........................................................................................................................8
REFERENCES................................................................................................................................1

TASK
Executive summary
Present report was based on Child maintenance service that is introduced in December
2012 as the part of Government's child maintenance reforms. Company replaced with Child
support agency (CSA) that is separated from the parent company. The non-resident parents
annual gross income can be classified on the basis of number of children who live in non-
resident parent. According to last three of data it has been analysed that company faced different
types of problem which are related to pandemic as well as there were low income gain by
organization which impacted by provided less facility for children development. One of the
major challenge faced by Child maintenance group is funding crises from 3 years as well as at
that time government imposed the lock-down and social distancing rules in order to mitigate the
risk of covid-19 that lead closure of schools, business and workplace.
It has been analysed that there are some positive factors which can be seen for child
maintenance services such as direct pay service by which public can easy to pay donation for
children and this is suitable for those who have strained relationship with other parent. This is
also helpful for organization in order to collect and enforce the right level of maintenance to
pay. For the present report strategic action are completed by using different types of framework
such as VRIO and Ansoff Matrix which help to suggest different type of strategy to company
are necessary to follow for the growth. Then with the help of strategic analysis it has been
analysed by using SWOT analysis in which threat are identified and provides recommendation
for improving the strategy as well as it help to provided approached for child development and
able to generates more incomes which help to grow the company effectively.
Strategic audit
This is the important part of the business in order to focus on strategy that help to grow
by ensuring about all the resources and competencies which are necessary to evaluate. Also,
external environment is related to the business that is operating for creating opportunities by
identifying threat of organization (Hakovirta, Skinner and Jokela, 2020). There were various risk
faced by company from last three year such as related to covid 19 it reduces the incomes of
organization which impact the planning process of organization. By 2020, the financial
performance are impacted by pandemic which was unpredictable for industry. There were
restriction by government during pandemic also that it impacted by not getting enough money

from private sector for development of children. Then challenges faced by company related to
funding crises in order to pay more then 25% of dividend to other shareholder by earning after
some taxes which made loss.
Swot analysis
Strength- Child maintenance group perform well in regard to survive and grows
effectively for long term as well as also there are large number of volunteer support get by
organization that supplies substantial amount of free labour which are related to huge saving on
staff cost. Also, chosen company are eligible for tax discounts that are help company for
becoming another strength (Jokela, 2019).
Weakness- Company is depend on external environment that become weakness for
organization also there is lack of financial stability in terms of expenditure, income and reserve
levels. Then weakness focuses on internal issues which can be work for resolving issues beyond
control such as lack of institutional funders.
Opportunities- There are large opportunities available in order to work with local people
so that they can contribute for raise the fund as well as this is opportunities for learning new
things in orders to improve the trustees member. So that this is helpful for looking forward by
emerging development in order to provide many options which is help for getting the
opportunities of takings immediate action. Then Child maintenance group help company to focus
for lifelong learning, behaviour and health also this is related to child's capacity in order to focus
on work on stress and challenges (de Araujo,2020).
Threats- Company faced vulnerable threats and shocks by less secure income streams
combined fort few months of financials reserves results organization. There were less backup
plans as well as due to pandemic child maintenance group affected badly in order to not generate
income.
Analysis
Company has faced different types of issues which is related to business strategies in
order to makes sudden changes in industry for increasing theirs efficiency. There are several
growth models of strategic action can be applied in order to focus on getting positive results as
well as it help to get positive results or suggest other strategies which can be followed by
company for generating more profit. By using Ansoff matrix it cans be said that this is two-way
frameworks for managing team as well as this is help for community in order to makes more

profit by support plan and then executes accordingly. Then VRIO framework will be used for
company strategies which is used for making different types of action.
ANSOFF MATRIX
Market penetration:
The strategy suggest improving the existing market share with existing resources to use
them efficiently through introduction of new policies, schemes and offers to gain the interest of
loyal customers and also suggest what improvement required to perform effectively and what
measures taken for the growth of the current market share (Le, Nguyen and Ngo, 2022).
For Child maintenance group it can be said that increment in market share also done by
reaching out directly to the customers, improving sales point, and the more benefit of customer
basket to maintain the interest of loyal customers.
The improvement in current policies which is help company to use effectively as well as
in order to get more funding not only improves the growth of the organization which is help for
identifying the loopholes in order to focus on working the policies which is help for suggesting
better ideas for existing services (Pratt, 2020).
Market development:
The market development not only focuses on current market but also focus on the global
market which help company to generate more income and the reach towards the international
market. The aim of the market development is related to the study the market trends and
following the strategies to improve the market share.
The growth of business inclined due to pandemic and exploring the options to improve
the performance in current market to introducing better policies and measures to cover the all
the necessary and explore the performance in alternative market and expanding its growth in the
international market too.
The market development helps to improve the profit of the company and also push
towards the growth and increase the potential of the company.
Product development
To improve the existing schemes find out the requirement of the child to be satisfied with
the product and what up gradation and changes are required to meet the standard of the current
market (Odhiambo and Njuguna, 2021). The product development is addition of new feature to
up gradation to improvement in the performance of existing product to maintain and attract the

new customers. The product development is the best strategy followed to increase the share of
profit as well as growth of the business.
Diversification
Diversification mainly followed when the product and organization is new in the
industry. The strategies followed to explore the opportunities in the adjacent industry or in the
completely different industry for the growth of the business.
Horizontal diversification followed when the new product introduced in the existing
market and Conglomerate Diversification followed when business decides to move into the
completely different industry in which services or product are new (Obati, Awino and Ogutu,
2018).
On the basis of Ansoff matrix suggest the strategies and methodologies to be followed to
make and improve the growth of the business and develop its market share and expand it's
business and profit share and also explore the market trends and opportunities for better
performance and to develop strategies to fight against competitors.
In context to chosen company it has been analyzed that child maintenance group should
focus on market penetration for improving the strategies as well as it is related to introducing
new policies which help to generate more fund in order to improve the challenge of funding
crises as well as it is help for contribution for the incomes which is improved the other activities
while faced by company during pandemic. Also, other strategies are related to planning for
resources in order to focus on capacities and problems by understanding and analysis the strength
in order to build upon opportunities. Further, this is necessary for the company to use the
sustainability plans in order to focus on mores technical support as well as this is related to
communicate with more donors that help for generating income effectively.
VRIO ANALYSIS
This framework is related to internal analysis which help business for identifying the
advantages and resources in order to analyse the competitive resources in order to given
competitive edge. Also, this is help for identifying the measurements of success in orders
focusing on organization (Ogutu, 2018). There are four elements such as rarity, value, imitability
and organisation. Also, this framework will be used for strategic analysis of company as well as
this is the part of strategic scheme for the strategic process s where firms begin with vision and

objective in order to focus on internals and external analysis, strategic choices and strategic
implementation.
Valuable- According to statistics it has been analysed that there are 12% of gross weekly
income, for 16% of gross weekly income. Then by analysing the value of organisation it can be
said that there are external opportunities which is valuables or it is helpful for investing in better
community in order to work on external threat. There is a need of child maintenance in order to
work on valuable resources which is perceived value for high demand and improving
competition dues to high quality services provided to children (Miethlich and Oldenburg, 2019).
In context to company it can be said that there are needs of child development which improve the
relation of getting valuable resources. All the employees working in child maintenance group are
trained and highly educated in order to provide best services to children. This is also helped to
influence by promoting familiar services to improve the unpaid services.
Rarity- This is uncommon resources which is related to developing the need of
competitive advantages as well as it is help to achieve the short-lived value. There are some
major resources which are related to everyday care such as s clothes, food and housing. This is
the basic need of children that help to maintain expense. Also, parents are supposed to get best
services to their child as well as it is help for that kind of company which is necessary to works
according to better development process. Due to pandemic there are many problems faced by
company because at that time organization not able to generate more income or resources. Then
financial services are help company to focus on difficulties which is necessary to work on
available resources by the target market (Ngo, 2021).
Then it is necessary to use sustainable resources which is important to work by having
exceptional capability that lead to competitive advantages. This is valuable resources or
capabilities which is unique. This is also important to work on distribution network which is
related to rare resources as well it provides the opportunities of developing the infrastructure that
come up on the basis of distribution network in order to improve the community which is require
lots of requirements.
Imitable- This is related to section in which resources are difficult to imitate or create
when substitute is ready also including non substitutable or difficult for another firm in which it
is necessary for require something. There are competitive parity in this section by certain
valuables resources in orders to exploit the resources at same way. Also, this is important for

gaining competitive advantages in order focusing on equality. Volunteer who are work under
child maintenance group are help for collecting resources from external department which is
necessary for getting better key stakeholder in order to identify the find key tangible or mixed
resources in organization. From different sources that are help for collecting the resources for
developing the child maintenance group also there are age-wise development needed and
necessity of all the person are different (Lalzai and Rana, 2020).
Organization- In this department there are very all the department are including in this
section such as financial, human resource, material resources and non-material resources. Also,
in the finance all the resources are included such as money, bonds, shares etc. Humans resources
are including people skills and knowledge then in the material resources it is including with
facilities or equipment.
Critical reflection
It has been critically analysed that I have learn a lot from significant lesson on the basis
of enhance my knowledge as well as it is help for collecting information which is related to
student achievement and progress and help to indicate for development in further areas. I have
learned how to use the adequate information in order to improve communication by getting help
by improving the process of decision-making by which information is necessary to collect as
well as it is necessary to consider the efficiency. On the other hand, most of the time I have used
my time by searching the relevant information for report. Also, I was confused to how to use the
academic information in report (Sakinah and Wibowo, 2021). Then, it can be said that it is
necessary to work by engaging with information in order to define the comparison of all the
information.
Also, in this report I have used swot analysis by focusing on strength, weakness,
opportunities and threats in order to build the address which can minimize the risk or challenges
faced by organization. This is also helped to analysing the new strategy which can be used by
company during tough time. Then I have applied Ansoff matrix in which all the situation are
discussed for the chosen report I have suggested market penetration for introducing new strategy
which help to improve the policies or action taken by child maintenance group. It has been
recommended that there are collaboration or efficiency which help to improving challenges for
encouraging different type of strategies.

Then lastly I have analysed through VRIO framework that help to improve the necessary
work by using other strategies which help to collecting resources in order to focus on developing
knowledge as well as identifying the advantages and disadvantages of resources which are
necessary to work on competitive advantages in order to measurement of success of company by
focusing on all four element. Then with the help of reflection I had got the experience of how to
write reflection for academic report as well as it enhance my writing skill. This is necessary for
student to enhance their knowledge in order to focus on improving the writing habit. Then this is
important to get better outcome by learning experience which affect future action as well as it is
considered on the basis of practice with subsequent practice by deliberating thinking.

REFERENCES
Books and journals
1

de Araujo, N., 2020, December. The HCCH and maintenance obligations. In The Elgar
Companion to the Hague Conference on Private International Law. Edward Elgar
Publishing.
Hakovirta, M., Skinner, C. and Jokela, M., 2020. Child poverty, child maintenance and
interactions with social assistance benefits among lone parent families: A comparative
analysis. Journal of Social Policy, 49(1), pp.19-39.
Jokela, M., 2019. Contribution of child maintenance to lone mothers’ income in five
countries. Journal of European Social Policy, 29(2), pp.257-272.
Lalzai, K. and Rana, M.B., 2020. Understanding MNCNGO collaboration in emerging markets:
investigating how MNC-NGO collaboration evolves, creates and co.
Le, T.T., Nguyen, T.M.A. and Ngo, T.H.C., 2022. Risk-based approach and quality of
independent audit using structure equation modeling–Evidence from Vietnam. European
Research on Management and Business Economics, 28(3), p.100196.
Miethlich, B. and Oldenburg, A.G., 2019. The Employment of Persons with Disabilities as a
Strategic Asset: A Resource-Based-View using the Value-Rarity-Imitability-Organization
(VRIO) Framework. Journal of Eastern Europe Research in Business and Economics, 1,
pp.1-13.
Ngo, Q., 2021. Does strategic alignment matter when SMEs adopt entrepreneurial orientation?
An empirical examination in Vietnam. Uncertain Supply Chain Management, 9(3), pp.577-
584.
Obati, D., Awino, Z.B. and Ogutu, M., 2018. STRATEGIC PLANNING, MACRO-
ENVIRONMENTAL FORCES AND PERFORMANCE OF NON-GOVERNMENTAL
ORGANIZATIONS IN NIGERIA. DBA Africa Management Review, 8(2).
Odhiambo, E. and Njuguna, R., 2021. STRATEGIC MANAGEMENT PRACTICES AND
PERFORMANCE OF HEALTH NON-GOVERNMENTAL ORGANIZATIONS IN
NAIROBI CITY COUNTY, KENYA. Journal of Strategic Management, 6(1), pp.1-16.
Ogutu, M., 2018. Strategic planning, organizational structure and performance of non-
governmental organizations in Nigeria; a mediating perspective. DBA Africa Management
Review, 8(2).
Pratt, B., 2020. Strategic issues facing NGOs into the foreseeable future. In NGO
Management (pp. 165-174). Routledge.
Sakinah, M.U. and Wibowo, S.A., 2021, November. Internal and External Environment
Analysis on The Performance of Provincial Office of Indonesian Food and Drug Authority
in Manado. In Journal of International Conference Proceedings (JICP) (Vol. 4, No. 2, pp.
181-189).