Introduction
The American Red Cross is a nonprofit making organization that helps vulnerable people around the world to prepare for, prevent and respond to disasters. The American Red Cross also teaches people how to respond to complex humanitarian emergencies and life threatening health conditions ( Suen, 2002). The American Red Cross has also embarked on global initiatives and community based programs that will help to implement such initiatives. The organization also provides rapid, effective and large-scale humanitarian assistance to all the people perceived to be in great need through their continued focus on disaster preparedness and response, global health, restoring family links, and the dissemination of international humanitarian law.
In order to achieve the above goals, the American Red Cross works in close partnership with its partners in the International Red Cross and the Red Crescent Movement. The American Red Cross also works in partnership with other international relief and development agencies in order to aid humanitarian hardships whenever disasters strike. The American Red Cross is known to receive most of its support from volunteers, whose main purpose is to offer humanity with the necessary aid in times of urgent need.
The American Red Cross was founded in 1881 by a Civil War Nurse known as Clara Barton (Francis, 2002). In 1905, the American Red Cross (ARC) was chartered by the United States Congress to implement a system of national and international relief during times of peace. The ARC also applies that system inorder to mitigate the negative effect of the suffering caused by natural calamities such as famine, fire, floods and any other great natural calamities of such great magnitude (Hamen, 2010). It was also required to devise ways and means through which such natural calamities could be prevented. This organization has since established itself as one of the largest and most efficient organization in regards to offering humanitarian aid around the world.
External and Internal Analysis of the American Red Cross
In a bid to obtain a perfect understanding of both the internal and external environment of the American Red Cross to be achieved, a SWOT analysis must be carried out. SWOT analysis refers to the Strengths, Weaknesses, Threats and Opportunities that face the organization. When focusing on the strengths that are enjoyed by the American Red Cross, it is important to note that it is one of the most trusted human aid organizations around the world. It has a very strong reputation that dates back to as far as the 19th century (Gracey, 2005). The Red Cross also enjoys superb recognition from around the world.
However, when it comes to the weaknesses that are faced by the American Red Cross, its reputation could be at stake. Several scandals have rocked the organization since its inception in America. These scandals range from the financial front to the management front and also extend to the recruitment of staff in the organization’s major ranks and positions. This would mean that the volunteers who are the main stakeholders in such an organization, could threaten to pull out once such scandals get exposed to the public domain. Another weakness that faces this organization arises from the revenue front.
It is widely known and expected that most of the activities that are undertaken by the American Red Cross, are mostly capital intensive. However, since the organization is purely non profit making, the means through which these funds can be raised, are very minimal. This reduces the revenue inflow into an organization that greatly requires it to carry out its activities around the world. One of the largest weaknesses that face the American Red Cross is that the organization is not profitable. This translates to very low cash flow within the organization. The question of adequate resources thus comes up if the cash available to offer the required hectic humanitarian aid remains to be inadequate.
On the other hand, there are opportunities that have been presented to the American Red Cross, through the successful partnerships that it has been able to acquire. It is known that the American Red Cross works hand in hand with the International Red Cross to carry out its activities. Other organizations that work closely with the American Red Cross include the World Food Program, and the World Health Organization. Another opportunity presented to the American Red Cross arises from the economic indicators which have been projected for a particular period of time. In recent times, these economic indicators show that the organization is expected to show an economic recovery within the next five years or so.
According to a SWOT analysis conducted on the American Red Cross, some of the threats that are expected to face this organization are mostly connected to its stakeholders. As earlier noted, most of the support accorded to the American Red Cross is normally voluntary. Since it is human nature to get tired of doing the same thing over and over again without pay, these volunteers may soon tire as a result of providing such generosity. As a result of this, most of them generally opt to stop offering their services to the organization after some time. Such loss of support and services may have a great negative bearing on the direction the organization takes in future. Another threat that faces the working of the American Red Cross comes from the technological advancements that have become so rampant. In the light of such technology, the world has greatly been reduced to a small global village through the internet and its associated services. As such the American Red Cross is poised to face bad press in addition to the negative blogs that are continuously developed to attack its prosperity.
Furthermore, the current digital world has very many humanitarian aid causes that compete for funds from the same support systems and sources. Such stiff competition offers a large stumbling block for such organizations that are trying to survive the recent global instability. This competition can further decrease the overall interest directed by important stakeholders to Red Cross’ needs. This has been made worse by the fact that most Americans are now online, and their email inboxes are growing with such humanitarian requests. Another group of organizations that pose such direct risk of competition include but not limited to; Doctors without Borders, UNICEF, Feed the Children and Habitat for Humanity.
The factors that are discussed above play very significant roles in the operational environments within which the American Red Cross operates. The internal environment directly affects the working of the organization and can be controlled by proper management and corrective oversight of the organization’s plans and objectives. On the other hand, the external environment is comprised of all the factors that affect the operation of the organization which cannot be controlled by the organization (Jain, Trehan, & Trehan, 2009). The organization learn to live with factors such as the competition aspect which has been critically discussed above.
An internal analysis in such an organization would dwell on the financial, marketing, technology, facilities, resource development practices and a review of human resources within the organization (Shaikh, 2010). The smooth running of these sectors could be one of the ways through which the American Red Cross could achieve great and undoubted success.
The Strategic Plan
Strategy formulation and selection
A strategic plan is a dynamic guide for the American Red Cross which is set to oversee the organization’s sustainable growth for the next period of about five years. Normally, this strategic plan should be updated when a significant change within the organization occurs. The plan is designed to improve the organization’s services to the communities which it deals with around the world. It outlines the need to lead in mobilizing required resources in terms of financial, facilities and any other resources deemed necessary (Tschirhart & Bielefeld, 2012). The most complex issues in the American Red Cross can be solved through building partnerships and promoting volunteering in business, government, agencies, health, cultural groups, and community organizations around the world.
The strategies of the Red Cross have been formulated and selected from a set of comprehensive SWOT analysis procedure. The elements that comprise the organization’s strategic plan focus on the needs and meeting the expectations of the clients, volunteers, employees, partners and donors.
VISION AND MISSION STATEMENTS
One of the most successful vision and mission statements has to be that of the American Red Cross. More specifically the statements of the New Hampshire are the most outstanding. One of the main aims of the organization’s strategic plan is to outline the actions that will be undertaken to contribute towards its mission and vision. Such contributions have to be time sensitive and must be achieved within a set pre-defined time period. ARC’s vision states that the organization strives to be reliable, respected and Relevant. Reliability means that the organization has to be consistent in meeting pre-defined goals and objectives and that all the stakeholders must work hard in order to meet these achievements.
When it comes to the Respect part of their mission, the organization ought to be esteemed and honored for the great humanitarian work that it carrys out. On the Relevant front, the organization ought to be updated on current issues that present around the world. In this case, it ought to be pertinent to its mission in order to alleviate the human suffering that is caused by factors such as natural calamities. The organization should be at the forefront of mobilizing volunteers and the generosity of the willing donors to be directed to the affected victims of such emergencies around the world. The organization’s mission is to alleviate human suffering in the face of emergencies. Such alleviation should be achieved by mobilizing the power of volunteers and through the generosity of donors.
Strategic Objectives
The organization has embarked on the following strategic objectives.
1. Development
One of the strategies that falls under development is to strengthen fundraising. Since the organization is nonprofit making, the funds required will mostly be obtained from fundraisings. That is why all the fundraising fronts should be well planned so as to receive attract large amounts of funds from such raisings. This includes leveraging activities to coordinate fundraising across all categories of donors who are known to help the organization as far as funding is concerned.
2. Operations
The organization is faced with multiple operations since it deals with many humanitarian activities all around the world. As such, it is expected that changes must occur in the organization’s operations from time to time. Since change is at times inevitable, the stakeholders must learn to manage such changes. The first step would be to accept that the change has already taken place and finally they should be able to adapt effectively to such changes whenever they take place.
3. Volunteerism
As earlier mentioned, most of the stakeholders in the Red Cross are volunteers. Such volunteers are at times easier to manage since it is through their own will that they present themselves to work for the organization. With such an advantage of easy management in these volunteers, it becomes necessary to improve the teamwork where they engage in different activities around the world. These volunteers can even be trained further on the specific course that they will be expected to tackle. Such training is perceived to increase their knowledge, capabilities and efficiency in their line of duty.
4. Communications
It should be understood that the Red Cross in itself, is a very strong brand. However, means and ways should be identified to revitalize the Red Cross Brand. This can be done through improved communication with all the stakeholders. These stakeholders should take it upon themselves to maintain the relevance of the Red Cross as outlined in its mission and vision statements throughout the world.
VALUES
The values of an organization should act as the guiding fundamental principles and philosophy pillars that support the organization. These values should always be reflected in an organization's action and pledges because they form the basis of its culture. In addition, such values are important when it comes to making an informed decision by all the stakeholders of the company including but not limited to the board members, staff and volunteers of the organization. The American Red Cross is known to uphold and abide by the following fundamental principles.
1. Humanity
The purpose of the Red Cross is to protect life and health and to ensure respect for human beings by alleviating and preventing human suffering wherever it may occur. Such humanitarian effort should be achieved without discriminating the affected victims whether in the battlefields or in natural calamities and disasters
2. Impartiality
The organization is focused on relieving the suffering of human beings being guided solely by their level of need. The urgent cases should also be given faster priorities than the less urgent cases. As such, the organization should not carry out any of its mandates based on nationality, race, religious beliefs, class or the political opinions that particular group of people holds.
3. Neutrality
The organization should not take sides in hostilities or appear to engage in any controversies whatsoever. These controversies should not be of any nature i.e. be it racial, political, religious or ideological. This is the only way that the organization would ensure that it earns and continues to enjoy the confidence of all the stakeholders and the public.
4. Independence
One of the values that this organization is respected for in the world is its independence. However, the auxiliaries which are situated in different countries around the world are expected to maintain the laws of those respective countries so as to operate in accordance with the principles of the organization.
5. Voluntary service
As noted earlier, this organization is prompted by individuals desire to offer help to the victims of humanitarian crises. As such, these volunteers are not driven in any way by self-gain since this organization is solely non profit making.
6. Unity
It should be made clear that there can only be one Red Cross in any one country. Such an organization is expected to be open to all interested parties, and it should conduct its humanitarian work throughout its marked territory without discrimination.
7. Universality
The Red Cross is a worldwide nonprofit making organization. It extends its humanitarian works to every corner of the world where such needs arise.
Strategic goals
The strategic goals define clearly what the organization intends to achieve over the course of the strategic plan. After a while, performance merits will be established for each goal after which metrics will be closely monitored. Such goals provide additional clarity to the organization’s strategic plan and to offer more focus for activities which have been set to be accomplished. The organization plans to increase its response to emergencies as one of the goals that they wish to accomplish. The Red Cross is also set to improve its operational and business capabilities. The organization also wants to establish more partnerships so as to increase its funds base.
Strategy Implementation and Evaluation
The performance of the strategic plan will be put under scrutiny on a regular basis. This performance will also incorporate the progress that has been achieved by the organization at the end of the period of the strategic plan. In addition, the plan will be reviewed after some time. Such reviews serve to ensure that the plan remains relevant to the course while at the same time addressing the emerging issues and opportunities. Such update also offers a focus on the new challenges that present themselves to organizations working environment and operations.
The organization has set to execute a plan of action to improve its operational and business capabilities. This plan of action will see the financial management and the control systems of the organization standardized into a single unit. Another plan of action will oversee the creation of a renewed and refreshed focus on serving communities and engaging in building and enhancing partnerships. Such partnerships that the Red Cross are looking up to include but not limited to faith-based groups, civic organizations and other special-interest groups. Another plan of action will oversee the enactment of more vigorous internal controls to protect against fraud, waste and any abuse that might be set to occur within the organization.
Conclusions and Recommendations.
It is recommended that proactive efforts should be taken by the organization in order to reach all geographic areas. Such efforts would also ensure that the organization engages multi-ethnic communities all over the world fully. Further, the organization should strive to strike more partnership deals and alliances that will effectively meet the preparedness and the responses required when the hour of need beckons.
However, the Red Cross has strived to articulate its actions to its mission and vision. For such efforts, the organization has emerged victorious over other humanitarian works organizations, and rightfully so. State agencies, community organizations, academic institutions, faith-based organizations, and businesses from all over the world have been known to rely heavily on the Red Cross to provide their services and resources when disasters strike.
REFERENCES
Suen, A. (2002). The Red Cross. New York: The Rosen Publishing Group.
Francis, D. B. (2002). Clara Barton: Founder of the American Red Cross. Connecticut: Lerner Publications.
Gracey, O. F. (2005). Orey and the Red Cross. Bloomington: Trafford Publishing.
Hamen, S. E. (2010). Clara Barton: Civil War Hero & American Red Cross Founder. Minneapolis: ABDO.
Jain, T., Trehan, M., & Trehan, R. (2009). Business Environment. New Delhi: FK Publications.
Shaikh, S. (2010). Business Environment. New Delhi: Pearson Education India.
Tschirhart, M., & Bielefeld, W. (2012). Managing Nonprofit Organizations. New Jersey: Wiley.
