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Brac Strategy Assignment 1

This document provides a strategic analysis of BRAC, a large non-profit organization, using various frameworks. It finds that BRAC has strengths like its extensive network and reputation, but also weaknesses such as overreliance on unpredictable donor funding. The analysis recommends that BRAC diversify revenue, leverage technology, streamline operations, invest in workforce development, and monitor trends to strengthen its strategy and sustainability.

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37 views4 pages

Brac Strategy Assignment 1

This document provides a strategic analysis of BRAC, a large non-profit organization, using various frameworks. It finds that BRAC has strengths like its extensive network and reputation, but also weaknesses such as overreliance on unpredictable donor funding. The analysis recommends that BRAC diversify revenue, leverage technology, streamline operations, invest in workforce development, and monitor trends to strengthen its strategy and sustainability.

Uploaded by

soomsoomislam
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Title: Critique of BRAC's Strategy: Applying Strategic Models and Frameworks

Abstract:

This report critically examines the strategy of BRAC (formerly known as Bangladesh Rural Advancement
Committee) by employing various strategic models and frameworks discussed in this module. BRAC, one
of the world's largest non-governmental organizations, has been a pivotal player in addressing poverty
and development challenges in Bangladesh and beyond. By utilizing models such as Porter's Five Forces,
SWOT analysis, and the Balanced Scorecard, this report assesses BRAC's strategic approach, identifies
strengths and weaknesses, and provides recommendations for enhancing its strategic effectiveness.

Introduction

BRAC, founded in 1972 in Bangladesh, is renowned for its impactful work in the fields of education,
healthcare, economic development, and social justice. Over the years, BRAC has expanded its reach to
numerous countries, making it one of the world's largest non-profit organizations. In this report, we will
critically evaluate BRAC's strategy by applying strategic models and frameworks commonly used in the
field of business and management. The objective is to assess how effectively BRAC has formulated and
executed its strategic plans.

Porter's Five Forces Analysis

2.1 Threat of New Entrants:

BRAC's extensive network and longstanding presence in the development sector create a significant
barrier to entry for new organizations. However, as the sector evolves, potential threats may arise from
innovative startups and other well-established NGOs. BRAC should continue to innovate and adapt to
maintain its competitive edge.

2.2 Bargaining Power of Suppliers:

BRAC's diverse programs and global reach give it significant bargaining power when collaborating with
governments, donors, and partners. This allows BRAC to negotiate favorable terms for funding and
resources, enhancing its sustainability.

2.3 Bargaining Power of Buyers:

BRAC's beneficiaries, primarily impoverished communities, have limited bargaining power. Nevertheless,
it is crucial for BRAC to ensure that its services are aligned with the needs and preferences of the
communities it serves to maintain their trust and support.
2.4 Threat of Substitutes:

In the nonprofit sector, the threat of substitutes is relatively low, as organizations like BRAC focus on
addressing unique social and development challenges. However, BRAC should continually monitor
emerging solutions and adapt its strategies accordingly to remain relevant.

2.5 Competitive Rivalry:

While BRAC faces competition from other NGOs and development organizations, its scale, diversified
portfolio, and reputation as a pioneer in social development give it a competitive advantage. To sustain
this advantage, BRAC should invest in continuous improvement and innovation.

SWOT Analysis

3.1 Strengths:

Extensive experience and global presence.

Diverse range of programs spanning education, healthcare, and livelihoods.

Strong partnerships with governments and donors.

A dedicated and skilled workforce.

A solid reputation for impact and transparency.

3.2 Weaknesses:

Overreliance on donor funding, which can be unpredictable.

Potential bureaucracy and inefficiency due to the organization's size.

Limited financial resources compared to the scale of the challenges it addresses.

Challenges in maintaining consistent quality across diverse programs.

3.3 Opportunities:

Expansion into new regions with unmet development needs.

Leveraging technology for more efficient service delivery.

Strengthening partnerships with local organizations.


Innovating in response to evolving social challenges.

3.4 Threats:

Economic downturns impacting donor funding.

Competition from other NGOs and development organizations.

Political instability in regions where BRAC operates.

Rapid technological advancements changing the landscape of development work.

Balanced Scorecard Analysis

The Balanced Scorecard (BSC) provides a holistic view of an organization's performance by considering
financial, customer, internal process, and learning and growth perspectives.

4.1 Financial Perspective:

BRAC's financial sustainability is heavily reliant on donor funding, making it vulnerable to shifts in
funding priorities or economic downturns. To mitigate this risk, BRAC should explore diversifying its
revenue streams through social enterprises or innovative funding mechanisms.

4.2 Customer Perspective:

BRAC's primary customers are the impoverished communities it serves. Ensuring that the organization
remains responsive to their needs and maintains their trust is crucial. Regular surveys and feedback
mechanisms can help BRAC stay connected with its beneficiaries.

4.3 Internal Process Perspective:

Streamlining internal processes and reducing bureaucracy will help BRAC improve operational efficiency.
Embracing digital technologies can enhance program monitoring, data collection, and reporting,
ultimately leading to more effective service delivery.

4.4 Learning and Growth Perspective:

Investing in the development and capacity-building of its workforce is vital for BRAC's long-term success.
Ensuring that employees have access to training and professional development opportunities will enable
them to adapt to changing circumstances and deliver high-quality services.

Recommendations
Based on the analysis conducted using Porter's Five Forces, SWOT analysis, and the Balanced Scorecard,
the following recommendations are proposed to enhance BRAC's strategic approach:

5.1 Diversify Revenue Streams:

BRAC should explore alternative funding sources, such as social enterprises, impact investments, and
partnerships with the private sector, to reduce its dependence on donor funding and ensure financial
sustainability.

5.2 Embrace Technology:

Leverage technology for data collection, program monitoring, and communication with beneficiaries.
This will improve efficiency, transparency, and impact assessment.

5.3 Streamline Operations:

Efforts should be made to reduce bureaucracy and streamline internal processes to improve operational
efficiency. This includes regular assessments of program delivery to ensure consistency and quality.

5.4 Invest in Workforce Development:

BRAC should prioritize the training and development of its staff to equip them with the skills needed to
adapt to changing circumstances and deliver high-quality services effectively.

5.5 Monitor Emerging Trends:

Continuously monitor emerging social and development trends to adapt strategies accordingly and
remain at the forefront of addressing evolving challenges.

Conclusion

BRAC's strategy has played a pivotal role in addressing poverty and development challenges in
Bangladesh and beyond. By applying strategic models and frameworks such as Porter's Five Forces,
SWOT analysis, and the Balanced Scorecard, this report has provided a comprehensive critique of BRAC's
approach to strategy. While BRAC has many strengths, it also faces challenges, particularly in terms of
financial sustainability and operational efficiency. Implementing the recommended strategies will help
BRAC navigate these challenges and continue its impactful work in the years to come.

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