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Red Cross: Effective Management of Non-profit To Maximize Stakeholder Value

American Red Cross and its Strategic partnerships.
Research Question: How does the effective management of a non-profit partnership maximize/increase stakeholder value?

Need background information on the following
Introduction
1. What is strategic Management?
2. Why is strategic management important to an organization?
3. Why is strategic Management important to non-profit organizations specifically?
4. What as some strategic management issues facing non-profits organization (brief list some of the major issues)
5. What are some strategic management issues that the American Red Cross is facing (list like 3-4, include the effective management of its partners as one of them)
6. Why is the effective management of non-profit partnerships so critical to non-profits, and specifically to the American Red Cross?

Analysis
7. Give examples of a 2-3 non-profits that effectively manage their partnerships?
8. Briefly explain how effective strategic management has added to the non-profit organizations you list in #7?
9. Give a brief overview of the American Red Cross's major partnerships and their purpose over the last 10 years. (Include at least 3 partners).
11. Evaluate the success of the American Red Cross's partnership( the ones you list in #9) in fulfilling the mission of the Red Cross (make sure that at least 2 of those partnerships are are unsuccessful partnerships) Explain why they were unsuccessful? (Point to the strategic management of them as the problem)
12. Explain how the ineffective strategic management of the American Red Cross's partnerships has led to problems for the organization
13. How has its stakeholders been affected?

Recommendation
14. What are your recommendations for improving the American Red Cross 'strategic management of its partnerships?
15. Explain how, what you recommend above could help improve the American Red Cross's current partnership? (Apply your recommendations)
16. Lastly, predict the successful outcomes that could result from your recommendations for stakeholder.

Conclusion
17. Write a brief summary that restates the research question, summarizes your analysis and recommendations.
18. Write a conclusion that provides an overall explanation of the benefits of the effective strategic management of Non-profit partnerships and then non-profits overall operations.

Solution Preview

1. What is strategic Management?
Strategic management is an approach to strategy that requires identifying major goals and objectives
and setting priorities to support the strategy. This requires prioritizing tasks and resources, as well as
identifying any new opportunities that can help the organization achieve its goals (Balanced Scorecard
Institute, 2014). Strategic management is an ongoing process, rather than a one time initiative. It will
require an analysis of the company's strengths and weaknesses, or SWOT analysis, to determine whether
improvements are necessary in some areas of performance, to achieve the objectives. The analysis helps
determine the focus of the strategy, in terms of prioritizing tasks and resources.

2. Why is strategic management important to an organization?
Strategic management is important to an organization, as it serves as a template for how the
organization intends to reach its goals and objectives. It outlines the resources needed, the skills and
abilities required of the work force, and any training or education required to help staff support the
organization's strategy. Human resource departments can be instrumental in aligning training and
recruiting initiatives, with the company's strategy and mission. The HR department can work with managers
of various functional units, to evaluate jobs and determine which tasks are most essential, in supporting the
organization's mission.

Strategic management also focuses on corporate governance, and the approach the organization will
take to become transparent and monitor finances (Applied Corporate Governance, 2014). In order for the
organization to achieve its objectives and mission, finances must support the tasks and efforts identified as
necessary, to support the mission. An organization needs adequate financial management and oversight of
finances, to ensure funds are allocated to the right processes, that support the mission. If funds are not
allocated to the right areas of the organization or are misused, the company may fall short of achieving its
mission.

3. Why is strategic Management important to non-profit organizations specifically?
Strategic Management is important t nonprofit organizations, as resources are often limited. Strategic
Management focuses on the direction of the organization. Knowing what objectives the organization aims to
achieve, helps determine how resources are utilized. In nonprofit organizations, resources such as funds,
supplies, and man power are often limited. Without direction, resources may be used for less important
activities, leading to the organization's inability to achieve its mission. The strategy helps provide direction
and activities to support the direction, by prioritizing resources and identifying where they are needed most.
Those who support a nonprofit organization, through volunteer work or donations, expect their contributions
to be used in the most efficient and effective manner possible. Strategic management serves as a form of
oversight, to ensure donations and contributions are allocated in the best way to support the mission.
Donors and contributors need to feel confident their contributions are able to help the organization achieve
its mission. Strategic management for nonprofit organizations focuses heavily on consensus and monitoring,
to maintain focus on the mission and core strengths to achieve the mission (Arenault, 2007).

4. What as some strategic management issues facing non-profits organization (brief list some of the major issues)
Some of the major strategic management issues facing nonprofits include:
Building capacity to serve more citizens
inability to respond to rapid change
inability to respond to increased demand for accountability
lacking clear vision
(Arsenault, 2007)

5. What are some strategic management issues that the American Red Cross is facing (list like 3-4, include the effective management of its partners as one of them)
Some apparent strategic management issues the American Red Cross is facing include:
Lack of strategic direction (to serve more and offer more aid in times of crisis)
Failure to establish standards of ethical behavior for leaders (Former IRS Commissioner Everson affair)
Poor accountability
inability to partner with local organizations and leaders

6. Why is the effective management of non-profit partnerships so critical to non-profits, and specifically to the American Red Cross?
The effective management of nonprofit partnerships is critical to the success of operations, for
several reasons. First, the organization cannot possibly serve those in a community effectively, without some
connection and knowledge of the cultures and lifestyles of individuals in the community. If workers are
unaware that people in a community may more anxious about missing loved ones than on temporary
housing, they will fail to meet basic needs for connectedness, particularly in an emergency situation.

The inability to form partnerships to effectively serve populations affects distribution of resources,
including human capital. It affects the organization's ability to meet pressing needs of those suffering from a
disaster. Communications challenges may slow the receiving of necessary services, such as helping locate
and provide aid to those missing in a disaster. The Red Cross must understand that effective
communications and relationship building with local authorities and government agencies is crucial to success
of services offered and in serving an entire population effectively (Epstein, 2007).
Analysis

7. Give examples of a 2-3 non-profits that effectively manage their partnerships?
Nonprofits that have effectively managed their partnerships include:
Special Olympics
Omaha Community Foundation
Save the Redwoods League

8. Briefly explain how effective strategic management has added to the non-profit organizations you list in #7?
Special Olympics faced a challenge of growth leading to confusion about what the brand represented,
to internal stakeholders. Partnership with ...

Solution Summary

The discussion focuses on the lack of direction or strategy for a well known global nonprofit organization. Recommendations for strategy development and direction of the organization are provided.

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