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PROJECT REPsORT ON

A STUDY ON “STRATEGIC MANAGEMENT TOOL FOR NGO


SECTOR”

Report submitted to
School of Management Studies and Research,
KLE Technological University, Hubballi

Submitted By
Jyoti Naik
(01fm18mba016)

Under the guidance of


Sagar Patil
(Asst. Prof.)

School of Management Studies & Research,


KLE Technological University
HUBBALLI – 580031
CERTIFICATE
This is to certify that, the report entitled " A study on strategic management tool for NGO
sector” being submitted to School of Management Studies and Research, K.L.E
Technological University, Hubballi, by Miss. Jyoti Naik is a record of bonafide work carried
out under my guidance and successfully completed the projects requirements prescribed to
her in accordance with regulations of the institute. In my opinion, the report has reached the
standard of fulfilling the requirement. The results embodied in this project have not been
submitted elsewhere for the award of any degree or diploma.

Mr. Sagar Patil Dr. S. V. Patil


(Assistant Professor) (Head of the School)

External Viva Voce

Name of the examiners Signature with Date


1. ------------------------------------
-----------------------------------------

2. ------------------------------------
--------------------------------------
DECLARATION

I hereby declare that this research work embodied in this project work entitled “A study on
strategic management tool for NGO sector” carried by me under the guidance of Prof.
Sagar Patil, School of management studies and research, KLE Technological University,
Hubballi.

I also declare that this report has not been submitted to any university or institution for the
award of any degree or diploma.

Place: Hubballi Jyoti Naik


Date: (01FM18MBA016)

ACKNOWLEDGEMENT
A project is never an individual effort. It is a contributory effort of many hearts, hands and
brains. Any endeavor and satisfaction that accompany the successful completion of my
project will be incomplete without contemplating the people who made it possible.

I stop for a moment in the tracks to acknowledge my sincere gratitude for assistance, efforts
and patronage I have received in completion of the project from our internal guide Mr. Sagar
Patil, Assistant Professor, SMSR, KLE Technological University Hubballi, who has spared
their valuable time to give his expert guidance and valuable suggestions throughout my
project work.

I would like to express my sincere thanks to our SMSR faculties for assistance and
cooperation during my project.

I would like to express our profound sense of gratitude to Dr. S. V. Patil, Head of
Department, Dr. Prakash Tewari, Principal and Dr. Ashok Shettar, Vice Chancellor, KLE
Technological University Hubballi for giving me an opportunity to take up this project.

Lastly, I would thank almighty god, our parents and friends for their infinite love, direction,
support and help during my project. This project wouldn’t have been completed without the
cooperation of all these people.
EXECUTIVE SUMMARY
In this fast changing era of all the organization, it is very important to understand the
present conditions and situation of the organization. Not only to the manufacturing industry
but also to the service industry is also important to sustain in the market. So to, sustain in the
market the company are taking various steps to expand its markets and to satisfy the
customers. So the company is looking for various tools and techniques in order to assess the
internal and external issues and activities of the company.
The most commonly used strategic management tools and techniques are SWOT
analysis, Porter’s five forces, PESTEL analysis & value chain analysis through which we can
identify the factors affecting the company and the strengths, weakness, opportunities and
threats of the company. The SWOT analysis gives the possibility to develop a strategy which
can help to tackle the weaknesses and threats. It can help to match resources and capabilities
to threats and opportunities in the competitive environment.
The managers and executives of the organizations are looking for a suitable tools and
techniques in order to study the internal and external cost of the products/service. All these
tools focused on analyzing internal and external factors that can affect the performance of the
companies. We also used Value Chain as tool for our study to understand where the cost are
been added and value is been add to the services provided to the customer. Porter’s value
chain approach is primarily used to analyze the core competences of the firm to achieve cost
reduction and differentiation also study camp up new value chain analysis model refers to
NGOs working towards skill development of person with disability in India; this model may
help organizations to be more effective & efficient.
TABLE OF CONTENTS
SL. TOPIC PAGE
NO NO
CHAPTER 1:INTRODUCTION
1.1 INDUSTRY OVERVIEW 1-2
1.2 INTRODUCTION TO DISABILITY IN INDIA 2
1.3 INTRODUCTION OF SAMARTHANAM TRUST FOR DISABLED 3
1.4 OBJECTIVES 3
1.5 METHODOLOGY 3
CHAPTER 2: LITERUTURE REVIEW 4-7
CHAPTER 3: SECTOR STUDY 7
CHAPTER 4: PROJECT TASK
PART-A
4.1  SWOT ANALYSIS OF NGO 8
4.2  SWOT ANALYSIS OF SAMARTHANAM TRUST 8-12
4.3 TANGIBLE AND INTANGIBLE RESOURCES 12-13
4.4 VRIN ANALYSIS 13-16
4.5 VALUE CHAIN ANALYSIS 17
4.6 VALUE CHAIN ANALYSIS OF SAMARTHANAM TRUST 17-19
4.7 COST DRIVERS 19


PART-B
4.8  INDUSTRY VALUE CHAIN 20-28
4.9  PESTEL ANALYSIS OF NGO 28-32
4.10 COMPETITIVE ANALYSIS (MICHAEL PORTER FIVE FORCE 32-34
MODEL) TOWARDS NGO
4.11 COMPARE AND CONTRAST COMPANY VALUE CHAIN WITH 35
INDUSTRY VALUE CHAIN
4.12 INDUSTRY TREND 35-38
4.13 FUTURISTIC OUTLOOK 38-39
4.14 KEY SUCCESS FACTORS (KSFS) 39-42
4.15 MOST COMMON DRIVERS OF INDUSTRY CHANGE 42-44
4.16 INDUSTRY OUTLOOK IS CONDUCIVE TO GOOD 45-46

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PROFITABILITY
4.17 FINDINGS 47
CHAPTER 5: CONCLUSION
5.1 CONCLUSION 48
5.2 REFERENCE 49
5.3 BIBLIOGRAPHY 50

CHAPTER 6: PLAGIARISM REPORT 51-52

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CHAPTER 1: INTRODUCTION

1.1 INDUSTRY OVERVIEW


“NGO is a non-profit making organization that is constituted with a vision by a group
of compatible people, committed for the uplift of the poor, marginalized, unprivileged,
impoverished and downtrodden and the needy and they are closer and available to the target
groups & flexible in administration, quicker in decision making” (Kakumani et al., 2010).
NGO's in India have a very unique and wide history. People in India have seen others
in earlier times providing their help. They are believed to help everyone in need, and they are
willing to provide help. Given the Indian perspective, there are 4 types of NGOs i.e. local,
regional, national, and international which are operating to carry out several rural
development projects in the rural area. The smooth operations of Non-profit organizations
depend upon the accessibility of resources like funds, human resources, infrastructural
support, expertise in the area of rural development, leadership skills, etc. These resources
tremendously vary as per the strata-wise classification of NGOs.
The history of foreign non-governmental organizations has been around since 1839. It
was estimated that by 1914 there were 1,083 Non-governmental organizations. International
Non-profit organizations were significant to the anti-slavery movement and the women's
suffrage movement and touched the highest point at the time of the World Conference on
Disarmament. However, this Non-governmental Organization comes into popularity with the
formation of the United Nations Organization in 1945 with provisions in Article 71 of
Chapter 10 of the United Nations Charter.
“Non-Governmental Organization generally refers to organizations that are neither a
part of a government nor conventional for-profit businesses”- (Tanzania, 2015).
In this case, NGOs' Indian Central Investigation Bureau conservatively
approximating twenty lakh of them already functions in states and union territories. The
mind-boggling statistics are one NGO for every 600 people. Compare this with the current
police data from the Government; India has only one policeman for every 943 people
according to the latest statistics from the Union home ministry. Major states Andhra Pradesh,
Bihar, Tamil Nadu, Delhi, Karnataka, Haryana, West Bengal, Rajasthan, Odisha,
Chhattisgarh, and Himachal Pradesh have not provided data on the number of non-profit
organizations operating in their territory.

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There is an increasing need for more operative and successful charitable and non-
profit organizations around the world. One of the many methods they do so is by extending
and improving their Boards' constitution. Growth in the efficiency of the Non-profit
organization board itself has been accomplished by taking together organizations and leaders
with a shared interest in the work of boards, creating capacity by giving training, and
evolving management and governance tools (Ali Mostashari, 2005).

1.2 INTRODUCTION TO DISABILITY IN INDIA


As per the latest statistics 2.1% of the population in India is differently-abled. In
1995, India ratified the Persons with Disabilities Act (Equal Opportunity, Rights Protection,
and Full Participation) to recognize the rights and needs of differently-abled people in India.
In India, legislation concerning differently-abled people includes the Legislation on
the Rights of differently-abled people, 2016, the National Trust Act, 1999, and the India
Rehabilitation Council Act, 1992. In India, people with disabilities face derogatory social
perceptions within the general population.
In an era in which 'inclusive development' is stressed as the path to sustainable
development, focused creativities for the welfare of differently-abled people are essential.
This emphasized the need to improve the country’s disability statistics.
The National Policy for differently-abled people acknowledges that differently-abled
people are important human resources for the nation and aims to make an atmosphere that
offers equal opportunity, respects their rights, and full involvement in society.
Differently-abled people have the same health needs as people with no disabilities-
for immunization, screening for cancer, etc. They also experience a narrower health margin,
both from poverty and social exclusion. Hence, disability is not only a health-related
problem. It is a composite occurrence that reflects the collaboration between the
characteristics of a person's body and the characteristics of the society in which they live.
Measures to overcome ecological and social barriers include tackling the issues faced by
disabled people.

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1.3 INTRODUCTION OF SAMARTHANAM TRUST FOR THE DISABLED
Samarthanam Trust for the Disabled is a registered trust working for the
empowerment of differently-abled persons and underprivileged since 1997. The organization
is headed by Shri G. K.Mahantesh a visually impaired social entrepreneur goal at providing
chances for the target groups to keep bound with the rest of society by providing quality
education, training, and placement. Rehabilitation, sports, and culture by facilitating housing,
healthy food, and financial support whenever are required. The North-Karnataka region was
established in 2007 with the first center in Dharwad. This was followed by an established
center in Gadag, Belgaum, and Bellary in 2010, 2011, 2014 respectively. Accordingly today
North-Karnataka region has 4 centers and can train nearly 1000 persons with various
disabilities each year and ensure them lucrative employment opportunities. Samarthanam
trust’s goal is to touch at least 100,000 lives by 2020, facilitating broad clarifications to the
differently-abled and underserved people.

1.4 OBJECTIVES
1. To identify the factors influencing the performance of the company.
2. To analyse and compare the company and industry value chain.
3. To identify the trends and futuristic outlook of the NGO sector.
1.5 METHODOLOGY
 Data type: Qualitative technique
 Type of research: Descriptive research
 Data collection tool: Secondary data
 Websites
 Research papers
 Online source

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CHAPTER: 2 LITERATURE REVIEW

1. “How do Donors Allocate Funds to NGOs, Evidence from Uganda” by


SpirosBougheas, in 2012.

This paper states that institutional donors are discrimination standards when
distributing funds to Non-profit organizations. It decides that the donors who are more
concerned about the effectiveness will evaluate NGOs and concentrate the funding on those
who work accordingly, while donors who are less concerned about efficiency and more about
local ties do not evaluate NGOs and allocate their funds independently of these parameters.
The results show that donors do not adapt any discrimination criteria when allocating funds.
That matters to them are how the manager is concerned locally, the NGOs' geographical
location and whether the NGO is local. This behavior fits better with the clarification that
Non-profit organizations are more interested in their ability to access the beneficiaries.

2. “Goodwill bazaar: NGO competition and giving to development” by


GaniAldashev, by 2010

This paper states the competition model by fundraising among discriminated Non-
profit organizations. Non- profit organizations divide their time between project work and
fundraising which creates interests in individual donations. If the market size is set, the level
of fundraising rises with the number of Non-governmental organizations. If the size of the
market is endogenous and NGOs cooperate with inviting new donors, the level of fundraising
declines with the number of NGOs and the amount of NGOs in the free entry equilibrium is
lower than that which enhances the well-being of donors. If Non-profit organizations can
distract funds for private use, then the multiple-equilibrium will appear.

3. “Human resource management challenges facing local NGOs” by Rehema in


2014

Partnership with local nonprofit organizations has become a key characteristic in the
growth sector. Therefore the human resources management in local Non-profit organizations
is important as it contributes to the performance and sustainability of the organizations. Local

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NGOs have insufficient HR training processes within the organization and this distresses the
employee’s work experiences and overall act at the individual as well as organizational level.
Another area that concerns local Non-profit organizations is the fact that relay on donor’s
funds that are secured to short term funding process. This affects the human resource
capability of the NGOs in terms of the number and form of workers to be hired and the
period of the job.

4. “Core costs and NGO sustainability towards a Donor-NGO Consensus on the


Importance of Proper Measurement, Control & Recovery of Indirect Costs” by
Alfredo Ortiz in 2001

The study was born out of the NGO Enterprises for the Environment Program, which
helps NGOs to overcome the barriers to the successful growth of the organization. TNC
predicted that foreign-based NGO members had problems covering key costs. Many donors
would not pay for indirect prices of the program, while others put arbitrary limits on those
costs. The NGOs themselves lacked a clear empathetic of the nature of indirect costs and
were therefore incapable of coherent the value of supporting these real costs to donors.

5. “A Resource-Based Perspective on Project Management in Non-Governmental


Organizations” by NanthagopanYogarajah in 2017

The study says that there should be a clear understanding of the nature of PM
resources in NGOs and their relations with project performance using a Resource-Based
View theoretical perspective. The result of this study identified three levels of PM capital:
team, organizational, and collaborative social resources, the latter being a resource not yet
established in the literature as important for the implementation of successful projects and
facilitating adaptation to the diverse, unpredictable environment in which some NGOs work.
6. “Investigating Impacts of Globalization on Performance of NGOs” by Miss
Robina in 2014.
This paper says that in the modern world of Global-Village communities have
become International-Citizenship because of developing innovations that have made it
feasible to create Global-Connections much more well-organized than ever in human history.

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The global effect of digital technology has strengthened the idea of Globalization with far-
reaching consequences of 'Human, Cultural, Economic and Political' for the entire world
including the world's developed, developing, and poor nations. 'Nongovernmental-
Organizations' success is heavily affected by globalization factors.

7. “The Influence of Government Policy and NGOs on Capturing Private


Investment” by Gayle Allard in 2008.
This paper applies modern institutional economic theory to a broad dataset of low-
income economies around the world to analyze the connection between the social policies of
host governments and their capacity to attract FDI. To this, they add another new data set to
discover the direct and indirect role of non-governmental organizations in the interaction
between business-society and government. They consider that the social inclusion policies of
a host government are closely related to the inflows of FDI from a region. However, NGOs
do not achieve any statistically substantial indirect impact on this relationship, and only poor
statistical importance as a direct effect on foreign direct investment inflows.

8. “Organisational factors influencing the sustainability of local non-governmental


organizations” by Ernest L. in 2012.
This paper states that the role of NGOs as actors in growth remains the main concern
in most of the developing countries as esteems the issue of sustainability of local NGOs. This
study's goal is to recognize key factors that can affect local non-governmental organizations.
This study pursues to identify important factors that can affect local NGOs. The study
classifies that funding access, quality material services, supporting leadership, creation of
need-based and demand-driven initiatives, and effective management can have a major
impact on local NGOs' sustainability.

9. “A Work Project presented as part of the requirements for the award of a


Masters Degree in Finance from the NOVA - School of Business and Economics”
by Marek paczkowski in 2016.
This paper seeks to examine Acción Ciudadana's existing financing structure transparency
International's Guatemalan chapter and to suggest a new sustainable financing approach

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aimed at the NGO. The research is carried out to define different forms of financing for
NGOs and to evaluate each alternative based on sustainability criteria and unrestricted
feasibility criteria.
CHAPTER 3: SECTOR STUDY
If Non-profit organizations were a country they would have the world's 5th largest
economy. Since 1839, international NGOs have a history. It has been assessed that 1083
NGOs were in existence by 1914. NGO stands for a non-governmental organization, and its
purpose can differ widely from service organizations to advocacy and relief groups and
human rights. Defined by the United Nations as an international organization not founded by
an international treaty, NGOs work to help communities from the local to the international
level. NGOs not only act as balances and checks for policy and government watchdogs, but
they are also critical cogs in larger government programs such as a natural disaster relief
response. Without the long history of NGOs rallying communities and creating worldwide
initiatives, famine, poverty, and disease would be a much larger issue for the world than it
already is. National NGOs like the YMCA and NRA are focus on activism that helps people
around the country while international NGOs such as Save the Children and the Rockefeller
Foundation act on behalf of the nation. NGOs can tap alternative sources of funding.
Although governments as a whole can usually bring more resources to bear than NGOs can,
government resources are limited for a disaster and depend on citizens' tax contributions,
import duties, and other sources of funding that could be affected when a disaster occurs.
Given the Indian perspective, there are 4 types of NGOs, i.e. local, regional, national,
and international, that work in the villages to undertake different rural development projects.
The smooth functioning of NGOs depending on the resources available, i.e. human capital,
finances, infrastructural support, rural development expertise, leadership skills, etc.
There are around 10 million (non-governmental) NGOs worldwide. The number of
people donating monetary facilities to NGOs worldwide grew from 1.2 billion in 2011 to 1.4
billion in 2014. The number is predicted to rise to $2.5 billion by 2030. In 1945 Article 71 of
the Charter of the newly established United Nations created the word non-governmental
organization. An NGO can be any type of organization, provided it is independent of the
influence of the government and is not for profit. Eighty percent of global citizens agree that
it's easy for NGOs to get involved in positive social change.

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CHAPTER 4: PROJECT TASK

4.1 SWOT ANALYSIS OF NGO’s


SWOT analyzes are a way of determining the strengths, weaknesses, opportunities,
and threats of an organization. An analysis of SWOT assesses what an organization can or
cannot do in terms of both internal and external factors. This analysis uses environmental
data and forms an assessment of the situation of a company. Carrying out a SWOT analysis
identifies the factors that can help the organization accomplish its goals. SWOT also
identifies the factors that need minimizing or overcoming to accomplish the anticipated
outcome.
According to author Angela (2017), the goal of SWOT analysis is to help nonprofit
organizations to produce an action plan to support what works, change what doesn't, seize on
opportunities, and minimize the threats to its operations. It will be impossible to have the
power to stay in today's competitive funding environment without conducting this type of
valuation at regular intervals, usually about five years.
A perpetual tug-of-war between its mission and what it can do based on its resources
and atmosphere is essential in nonprofit operations. SWOT analyzes simplify strategic plans
and offer future directions.
Still, there are critical concerns that control non-profits that need to be discussed in
SWOTs, including how strategies match with budget, mission, limitations, competitive
position, staffing, and communications efficiency, and financing and optimizing resources.

4.2 SWOT ANALYSIS OF SAMARTHANAM TRUST FOR DISABLED


Strengths (Internal):
1. Mobilization
In this process first, they collect the information of disabilities in the district with the support
of VRW and MRW, and they conduct a meeting in the rural areas and they follow up the
students who are interested in this DDU-GKY training program. The main resources to run
the trust are the students, so the mobilization process is the strength of the trust as it is a very
effective aspect to gather the unprivileged students from rural areas as well as to build
awareness about the trust.

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2. Implementation of government Program
The main strength and uniqueness of the trust are to the implementation of the central
government program DDU-GKY. This program helps to achieve the goals of the trust. The
goal of the trust is as follows to raise self-awareness, self-development, and self-realization
among the unprivileged students.
3. Fundraising
Ngo should never really on only one source of fundraising. So to run any of the organization
funds are the most important part, so the firm has the major ability raise the funds from
various sources i.e. from the call center, Individual donation boxes, Individual donors,
Parisara program, and the donation from college students.
4. Human resource management
Human resource management is vital for any workplace setting and is considered most
effective when a strategic focus is in place to ensure that people can facilitate that
accomplishment of organizational goals. The trust has an effective and skilled human
resource to train the students.
5. Parisara program
Parisara is a dry waste management program in which it helps to collect waste such as
newspapers, plastics, scrap, etc. from various corporate, households, and schools. Segregate
and recycle waste scientifically and contribute to the environment. This initiative helps in
generating income for the trust and it is utilized for education programs run by the trust.
6. A good relationship with government agencies
The main strength of the Ngo is to maintain a good relationship with the government
agencies which in turn helps to increase the services which are been provided by the trust.

Weakness (Internal):
1. Lack of brand recognition
The weakness of this organization is there is lack of awareness about the trust in the public.
The weak brand name can result in losses. In the organization, losses mean in the form of
students and donors. Many of the public don’t have any knowledge about this trust which
reduces the participation of specially-abled students.

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2. Dropout rates of students
The main weakness of Samarthanam Trust is the increasing dropout rates which lead to a
decrease in the performance of the company, the dropout rates should be controlled by using
various strategies. The main reasons for an increase in the dropout lack of interest, lack of
course, etc.
3. Availability of scribe’s
The trust is also providing higher education facilities to specially-abled children. Like the
children with visually impaired are also part of these trust so availability of scribes is the
most important part to these children, but the NGO is not able to gather the scribe for these
children due to lack of brand and to retain the same scribers for the long term these leads to
the lack of productivity of the children as well as trust.

Opportunity (External):
1. Develop the skills of differently-abled children
The condition of people with different abilities in India does not seem to change as
approached World Disability Day on 3 December. Of the 12 million children with different
faculties, only 1% of the students attend school, while about 63, 66% of people with different
faculties are unemployed compared to 60, 21% of the employment rate in the rural and city
areas of India.
By looking at the present scenario the trust should utilize this opportunity to develop the
various skills among the differently-abled children in this society.
2. Create the link between society and differently-abled candidates
The trust can use the opportunity of improvement in disability education and they start
creating the link between society and differently-abled students. So that it will help the
children to sustain in the market.
3. Government policies
As in the present, the government is giving importance to the differently-abled children so
the trust should use this opportunity to help the children to get these government facilities
like Education allowance, traveling allowances.

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Threats (External):
1. Economic Crisis
A circumstance in which the economy of a nation is suffering a severe slowdown triggered
by a financial crisis these also lead to unemployment which often decreases the level of
individual income for consumers. Lesser individual income levels usually reduce the amount
of money that individuals are willing to spend on a donation to the various trusts.
As a result of the economic crisis, the donor's interest will be reduced to one of the threats to
the trust.
2. Changing the behavior of donors
Due to the effect of the economic crisis, it will lead to the change in the behavioral aspects of
the donor which leads to the discontinuation of the donors for the trust.
3. Retention of donor
One of the most common mistakes that nonprofits make when it comes to donor partnerships
is not to do enough to maintain strong links. To increase the number of returning donors, we
are going to need to position our organization as a fixture in their lives. The main threat of
the company is the lack of retention of the donor. Due to the change in the behavior of the
donor, it will lead to a lack of retention of the donor. The trust does not concentrate on the
aspect of the retention donor. There are various steps: Publish a nonprofit newsletter, Send
regular acknowledgments and Keep up a social media presence.
4. Changes in government policies
Government policy will affect interest rates, a rise in borrowing costs in the business
community. Higher rates also lead to a decrease in the spending of the donors. The increased
regulations for the NGOs like proper maintenance and getting an audit of their balance sheet
is one of a threat to the trust.
5. Providing job opportunities
As trust is implementing the DDU-GKY program as there are many rules to be followed by
the trust. So providing the best job opportunities is one of the major threats to the company.
As the students will not be ready to get placed in different places and the students have to be
treated as the employees and they should be paid, more than Rs. 6000/- per month.

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6. The negative perception of society towards differently-abled candidates
The trust is mainly working towards the disability children of the rural background so the
citizen of the rural background has a negative perception towards the disabled students and
they don’t motivate the children to get an education.

4.3 TANGIBLE AND INTANGIBLE RESOURCES


Tangible Resources:
Tangible resources are tangible objects like currency, inventory, equipment, land, or
buildings. Such products can be quickly liquidated and have a fixed value. These are
important to accounting, as these allow a corporation to grasp its financial position when
entered on balance sheets and financial statements.

Intangible Resources:
Intangible assets are an entity's longterm capital, which lacks physical existence. We gain
interest from mental or legal rights, and the importance of the other properties we create.

Table 1: Tangible and intangible resources of the organization


Tangible Resources Intangible Resources

1. Firm Infrastructure 1. Knowledge and experience of


employees

2. Human resource (Teachers, students,) 2. Government concern (DDU-GKY


Government program)

3. Computer 3. Procurement (Mobilization)

4. Funds (Monitory/non-monetary) 4. Administration

5. Equipment(Furniture) 5. Student satisfaction

6. Study material (Books, IPod, Brielle 6. Goodwill(Brand name)


books)

7. Fundraising

8. Donor retention

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4.4 VRIN ANALYSIS
VRIN stands for Valuable, Rareness, Inimitable, and Non-Substitutable, which includes the
recognition of all possible key resources. Identifying all possible key resources is valuable,
rareness, imperfectly imitated, and non-substitutive. This helps analyze whether VRIN
standards are met. This helps to determine whether these tools will meet the VRIN
requirements.
 Value: Development of value strategies that can help one outperform its rivals or
reduce its weakness by improving efficiency and performance.
 Rare: All rare resources which the competitor does not have.
 Inimitable: Only one business can manage the value of that particular resource, and
other companies cannot duplicate it.
 Non-substitute: No other available resources are available to replace the resources.

VRIN OF TANGIBLE RESOURCES


Table 2: VRIN analysis of tangible resources of the organization
Resources Value Rareness Inimitability Non-substitutable
1. Firm Infrastructure Yes
2. Human resource
Yes
(Teachers, students,)
3. Computer Yes Yes
4.Funds
(Monitory/non- Yes Yes Yes
monetary)
5.Equipment(Furniture
Yes
)
6. Study material
(Books, IPod, Brielle Yes
books)
1. Firm Infrastructure

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Infrastructure is the thing that creates the value of any firm. So even in our trust the firm’s
infrastructure like the building, water facility, power supply facility creating more value to
the trust which is more advantageous to the trust.
2. Human resource
The accessibility of human resources in Non-governmental organizations is vital as it
contributes to the performance and sustainability of the organizations. Samarthanam trust has
an effective human resource as they support the development of the organization's objectives
and achievements for which trust is organized.
3. Computer
As basically the NGO’s don’t provide computers. But in our trust, they are providing
education facilities with the help of a computer which helps to increase the value of the trust.
4. Funds
Samarthanam is getting both monetary and non-monetary funds from different sources i.e.
individual donors, telecaller, donation boxes, the Parisara program, and a donation from
college students, etc.
5. Equipment
The equipment in the organization includes benches, desks, and tables.
6. Study material
Providing different kinds of study materials to the students of specially-abled helps the
students to concentrate on their education. They provide various resources in the form of
study materials that are books, iPods, Brielle books, etc. by providing these they increase the
value of the trust.

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VRIN OF INTANGIBLE RESOURCES

Table 3: VRIN analysis of intangible resources of the organization


Non-
Resources Value Rareness Inimitability
substitutable
1. Knowledge and
experience of employees Yes Yes

2. Government concern
(DDU-GKY Government Yes Yes
program)

3. Procurement
(Mobilization) Yes Yes

4. Administration Yes Yes


5. Student satisfaction Yes Yes
6. Goodwill(Brand name) Yes Yes
7. Fundraising Yes Yes
8. Donor retention Yes

1. Knowledge and experience of employees


The employees and trainers are experienced in the teaching filed; these resources help the
trust to increase the knowledge of the children.
2. Government concern
DDU- GKY is a central government program that includes BPO, English classes, and basic
computer as compulsory courses.
3. Procurement
Mobilization means to reach students with projects for education and mobilize them to
contribute in it. Mobilization involves students by facilitating them information about the
project, benefits of the projects which results in registration in education course. The
mobilizing department is dependent on the fundraising department because students are
needed to raise the funds. This department is dependent on the training and placement

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department because based on the capacity of training and requirement of the company;
students are mobilized in a batch for a particular time.
4. Administration
The administration of the trust is more valuable. The administration process followed by
these trust is not -substitutable by other organizations.
5. Student satisfaction
The satisfaction of the students cannot be visible but it can be understood by the increased
knowledge of the students. So the students are been satisfied with the available course in the
trust. So these create more value to the trust.
6. Goodwill
Brand image is formed in the minds of consumers, based on their experience and the
customer’s proper sense of contact with the brand. Companies have to cultivate a positive
brand image to acquire the benefits. The brand name of Samarthanam Trust for Disabled is
difficult to imitate or acquire by the competitors. A positive brand image associated with the
trust will need to be perfectly fit.
7. Fundraising
The fund is raised on account to provide education and placement. Every department in the
organization like mobilization, training, placement, and maintenance of hostel is dependent
on the fundraising department. And every department is interconnected with each other.
Training cost and placement expenses funds are raised based on the number of students
mobilized.
8. Donor retention
The donor organizations or commercial funders become a force in the NGO. To
increase the number of returning donors, you're going to need to position your organization a
s a fixture in their lives. There are various steps: Publish a nonprofit newsletter, Send regular
acknowledgments and Keep up a social media presence.

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4.5 VALUE CHAIN ANALYSIS

Meaning of value chain:


According to Michael Port's study in 1985, the idea of a value chain is
constructed on the process approach for organizations' studies. The idea of seeing a
manufacturing organization as a system made up of subsystems each with inputs,
transformation processes, and outputs. Those involve the procurement and usage of resources
- money, labor, materials, equipment, buildings, land, administration, and management.
These activities classified as either primary or support activities. A string of cooperating
players working together to fulfill market demands for some products or services is called
value Chain. A value chain intends to raise the value of products or services.

4.6 VALUE CHAIN ANALYSIS OF SAMARTHANAM TRUST


The value chain here as an NGO Company is slightly changed by holding input, process,
output, marketing and service in primary sector activities, and supporting business activities
such as governance, human resources, company infrastructure, research training &
development, procurement, and administration.

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Model No 1: value chain analysis model for Samarthanam Trust
Primary activities
Input: The input will be the students with disability and they need to have teachers/ trainers
to train the students and for every organization financial support will most essential and
primary need to run any process it may be a form of monitory or non-monitory.
Hence in this respect as per the Ministry of home affairs & National skill development
corporation, the NGOs working towards skill development are 2944 & as per the skill
council for the person with disability India, NGOs working towards skill development for
disabled students are 51, Samarthanam Trust for disabled also one among them. If NGOs
registered under this government body then they need to run these below 4 programs
1. PMKVY
2. DDU-GKY
3. MSJE- SIPDA
4. State Missions

Process: - After having inputs of students, teachers & funds (monitory/non-monitory)


organizations need to work towards the program, by developing & teaching the skill to the
students as per guidelines.
And simultaneously smooth running & development of organization funding publication also
done by organization internal departments.

Output: - After undergoing the rigorous training, trained & skilled students will be output as
per the program and also will get the skilled teachers. Here as per the annual report of skill
council for persons with disability India, can see the output of 11,433 students trained,
10,333 students assessed & 8660 students certified by programs in this financial year 2017-
18.

Marketing: - It is part of an activity which helps to communicate with society and build the
society and organizations internally and externally stronger and makes the society to retain
and attract towards organizations, this helps an organization to reach its objectives very
effectively.

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Service: - This is the industry where service needs to be maintaining towards alumni,
corporate, recruiters because these all help to develop & retain the values.

Support service activities


While in supporting activities the human resource, firm infrastructure, research training
& development, procurement & administration will be mainly internal support which is
required to get value-added service, but here procurement will be mobilizing the students
from every reachable area by organization and government concern play a vital and
important role as the backbone towards NGOs, programs & society.

4.7 COST DRIVERS


1. Learning and experience:
The most significant element of the success of the leading non-profits is their human
resources – their volunteer leaders and professional staff. Their quality and commitment,
above all else, determines the organization’s strength and effectiveness. No non-profit can be
better than the people who comprise it and lead it. Their quality affects every element of the
non-profit organization. The learning capacity of the differently-abled students is to enhance
the productivity of the trust. The experience of the trainers will reduce time. The trust should
hire experienced, skilled trainers into the organization so that they can reduce the training
cost of employees.

2. Capacity utilization:
It means trying to operate facilities at full capacity. Whether a company functions at or near
full size has a big impact on unit cost when its value chain comprises activities linked with
considerable fixed costs. The trust should utilize all the available resources at the right time
and right place.

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4.8 INDUSTRY VALUE CHAIN

Meaning of value chain:


According to Michael Port's study in 1985, the idea of a value chain is based on the process
approach for the studies by organizations. It is the idea of sighted a manufacturing
organization as a device consisting of subsystems each with inputs processes of
transformation, and outputs. These comprise the attainment and consumption of resources-
money, labor, materials, equipment, buildings, property, management, and administration.
These actions can generally be classified as either primary or supportive. "Value Chain" is a
string of collaborative players working together to meet market demands for specific
products or services. A value chain aims to raise the value of the goods or services.

VALUE CHAIN FOR NGO SECTOR

Porter's Value Chain integrates a variability of supply chain activities throughout the
product or services life cycle of such as defining the wants of customers for marketing and
production distribution and after-sales services.
Porters defined a chain of activities common to all companies and divided them into
two main activities: inbound logistics, operations, and outbound logistics, marketing and
sales and service, and support activities consisting of infrastructure, human resource
management, technology creation, and procurement.

Model No 2: value chain analysis model for the NGO sector

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PRIMARY ACTIVITIES

Table 4: Primary activities of the NGO sector


Activity Function Description Level 3 - examples only
(Level 1) (Level 2)
Program Context Research and analyze the Collect Data; Analyze
design assessment environment surrounding the Data (Problem and
program, establish an Stakeholder Study,
organizational fit, and Organization Strategic Fit)
determine whether to
intervene or not.

Program Engage stakeholders to Partner Identification; Risk


planning explain how the program will And Assumption
be accomplished within a Assessment; Intervention
certain timeframe and with Options (Advocacy,
chosen resources. Education, Health,
Research, etc.); Ascertain
Intervention Logic (Log
frames, etc.); Budgeting;
Develop Implementation
Plan; Target group
Participation; Capacity.
Fundraising Fundraising Research and analyze donors External/ market study;
research and and markets. Ascertain Internal learning, Identify
Analysis funding opportunities, opportunities (prospects,
prospects, and potential. potential, tenders)
Identify grant givers.
Recognize tender
opportunities and new
Acquisition Estimate based on situations. Campaign organization;
and retention Define strategic objectives Donor-led program plan;

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and activities to meet these Proposal progress; Donor
objectives. Organization relationship management;
plan, including resources, customer services
systems, and ROI to support
the funding strategy.
Funding Portfolio Arbitrating restricted and Understand donor and
Managemen matching unrestricted funds with the funding necessities;
t program needs to achieve Understand programs
confirmed budgets per necessities; Pipeline study;
program. Match funds with program
needs

Compliance Monitor and report on Donor reporting; Monitor


management agreement of programs and agreement
partners to the agreement of
the organization and donor.
Setup Establish a governance Establish Governance
structure, authorize the start (Internal & External); Gain
of the program, communicate Official Authorization To
the launch, and mobilize Start (District Government
resources. etc.);

Program Resource Mobilization


delivery Implementatio Appliance the delivery plan Task Management;
n with the management of Logistics; Managing Risk;
issues and resources. Handling Issues

Change management
Manage modifications procedure; Acceptances;
Control between the program Issue acceleration
strategies and the realism of
program implementation.

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Define program
An ongoing valuation that indicators; Collect and
Monitoring uses orderly gathering of data review indicator data
on indicators to deliver
stakeholders signs of
progress against objectives
and recognizes essential
corrective action if suitable.
Define program
The systematic and objective indicators; Collect and
Evaluation valuation of continues or review indicator data
accomplished the program,
its design, application, and
results to regulate the impact
and sustainability.
Provide information,
Ensures responsibility of the communicate, and
Accountability program to all stakeholders contribute with
through contributing, stakeholder groups;
examining responses, and Collect, examine, and
providing feedback to respond to feedback from
stakeholder groups.  Includes stakeholder groups;
collective accountability Cooperative accountability
activities with other actions with other
stakeholders stakeholders

Governance Closure,
Define and accomplish Comprehensive
End of transition strategy (redesign, Programme Learning,
program extend, expand, terminate), Deliverables, Verify,
transition complete program learning, Acceptance, Define

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authenticate Transition Strategy.
scope/deliverable acceptance,
and complete governance
conclusion.

ENABLING ACTIVITIES

Table 5: Enabling activities of NGO sector


Activity Function (Level Description
(Level 1) 2)
Organizatio Develop vision, Establishes organizational path and vision. It comprises
n and mission, values, describing the vision and mission, as well as developing
governance and strategy the organization's policy values and ethical practices.

Governance Forming the system of policies, practices, and processes


through which the organization is focused and measured.

Portfolio and Identifying programs and initiatives; initiating,


program delivering, and closing programs; monitoring the overall
management program performance and status; establish a program
(non- overview, and provide a decision basis for programs.
programmatic)

Change Plan, progress, appliance, and monitor major changes


administration throughout the organization or in a designated unit,
section, division, etc.

Practice and Confirm that an organization’s product or service is


quality provided at the appropriate quality using appropriate
supervision procedures.  It has 4 key components: quality assurance,
quality planning, quality control, and quality
improvement.

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Risk managing Identify, assess, and prioritize risks.  Manage the
application of funds to reduce the possibility and effect of
unforeseen events and to enhance the recognition of
opportunities.

Communications Communication among stakeholders both within and


external organization, helping an organization achieve its
goals through building understanding and engagement
based on, for example, the organization's core values,
strategy, and advocacy targets.

Monitoring Implements and develops a charter that directs decision-


and controlling makers as they use funds in the detection of sustainable
effect. It makes sure that decisions are associated with
organization goals by planning targets, determining
performance against KPIs, and dealing with helpful
action procedures.

External relation External relationships mean the relationship with


management stakeholders of the organizations, which includes
partners, government, and industry (not donor or
beneficiaries), including actions like complaints
management, etc.

Compliance and Manage and audit compliance with external standards,


resiliency regulations, and legal responsibilities (such as sector
management standards, environmental, contextual, data, fraud
prevention, health, organizational reporting, safety, and
security) moral policy enforcement.

Brand Create a connection between the organization’s

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Management product/service and emotional observation of the
stakeholders to generate segregation and partnerships
among the competition and building loyalty among
donors and partners guided by our organizational values.

Portfolio Create new solutions, so that the revamped portfolio


management of identifies changes in programmatic context and/or the
Product and market potentials while aligning with the complete
service organizational approach.

Innovation Provide the organization to answer to external or internal


Management changes by using creativity to introduce new ideas,
policies, or products.
Supply Plan Balance the demand and supply to progress a course of
Chain action that best meets the requirements of, manufacture,
Managemen and delivery.
t
Deliver Deliver the products and services to achieve definite
demand, normally containing order management,
transport management, and delivery management.

Processes accompanying with getting returned products


Return for any cause and disposal of products.
Finance Budgeting Encompasses financial planning processes, including
preparing quarterly and annual projections of revenue,
expenses, operating liquidity, and capital investments.
Financial It comprises procedures related to dealing with an
accounting organization’s continuing monetary records, containing
management of plan of accounts, the process of journal
entries, and the modification of the organization’s ledger
accounts.

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Process payroll Managing salary to staff or servicers, regulating tax,
benefits, etc.

Manage internal It contains operating controls, checking to comply with


controls inside controls and procedures, and reporting on internal
controls compliance.
Human Compensation Process and decision-making framework for salary and
Resource and benefits benefits management
Managemen
t Time reporting Workforce time allocation recording and reporting (e.g.
pay, full economic costing of grants, program planning,
and absentee management)

Talent and Talent and skills record with employee performance and
performance growth history.
management

Learning and Share and increase the skills and capabilities of the
development workforce.  Evaluate development needs and manage
their implementation.

Employing an Staff planning and attracting, and inducting candidates


on/off boarding into the workforce, and off-boarding exiting staff.

Workforce Manage staff information and legal documents as


administration required by law. Ensures all the essential exchanges to
the legal authorities and institutions.
Information Service design Ascertain, fund, design, and adapt adequately to secure
Technology & transition innovative IT services to encounter currently agreed
future business requirements.

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Service Deliver IT services at approved levels and channel new or
operation changed commercial necessities to help as input for the
Service design & transition activity.

Enterprise Concerns the strategic alignment of IT services to best


architecture serve the business which includes defining, planning, and
handling the interface between business and IT across:
Business, Data, Application, and Technology domains.

4.9 PESTEL ANALYSIS OF NGO


A macro-environmental analysis methodology, PESTEL analyzes the influence of the
political, economic, socio-cultural, technological, environmental, and legal effects it can have
on an industry's productivity potential. Under each principal PESTEL heading, we have
many sub-factors to be discussed. The PESTEL is used as a part of the strategic planning for
non-profit organizations. It can also be accordingly used with some other management tools
like Porter's Five Forces Analysis, and market segmentation and marketing and management
capabilities analysis.
PESTEL was designed to compute and analyze the result on profitability, but it can
be used by NGOs to classify the places where funding or operations could be at risk.
Analyzing the macro-environment of the non-profit organization is essential to ensure that
the organization can meet future challenges.
1. Political factor:
Given the effect of political factors may have on the competitiveness of the industry, policy
stability, tax policies, foreign trade legislation, and social welfare policies can all contribute
to the probability of the profit of the industry.
Policy stability is a key issue in the continuing procurement of potential funding for
NGOs that give community development services in developing countries. Taxation policies
will have positive or negative feedback on the probability donors will continue to donate and
mobilize new donations from the organization. Transparency is very critical for gaining
political support from NGO's. The government's policy and agenda will affect the entry and

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exit of nongovernmental organizations. Political stability is an important factor in the
development of society by NGOs.
1. Government policy: - India has about 3.4 Million Non-Governmental Organizations,
working in different fields ranging from disaster relief to advocacy for
marginalization and educational institution. They are the main part of civil society
which brings huge change and civil transformation. These Non-Governmental
Organizations are measured as autonomous of the state and voluntary. They majorly
depend on individual donations and foreign funding, aid from different government
agencies, and private donors. In the year 2018 Indian government has cancelled the
licenses for 20,000 NGOs getting foreign funds under FCRS (Foreign Contribution
Regulation Act).
According to a report by Bain & Company on India's philanthropic
landscape, international funding declined by about 40% between 2015 and 2018
2. Political stability: - The government has made a strict policy on the NGO’s. It has
been cancelled 4470 NGO’s registration and 20,000 NGO”s which are getting the
foreign contribution. These kinds of decisions will be taken only when a stable
government is formed. Political stability will help to make any decisions without
considering the interest of the other political party.
3. Tax policy: - The taxation, exemption policies of government on the NGO’s. The
registered NGO’s have got some benefits from the government. The government
policies regarding tax exemption under 80G and 35 Ac also matters to the donors to
give donations.
2. Economic Environment Analysis:
These NGOs are reliant on donations for effective functions of the company. These
organizations are often affected by the economy. 20 years past when the great recession hits,
these NGOs, took a hit. Since people were trying to get a job every day, they were not likely
to donate. Most of the people had to focus on surviving before helping others. The economic
environment is the overall state of the country’s economy. It will affect the sustainability of
NGOs. The contribution of the foreign fund mainly relies on the economic environment of
the country. These economic issues are the determinants of the performance of a certain
economy. Factors involve global activity, currency rates, inflation levels, interest rates,

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household disposable income, and jobless rates. Such variables can have a direct or indirect
long-term effect on a company, as it impacts customers 'purchasing power and could
potentially change the economy's demand/supply models.
The fund plays an important role to get financial stability, sustainability, and making a good
economic environment. The survival of the NGOs is mainly dependent on the donations from
the donors which are dependent on the economic environment.
Economic influencing factors for NGOs are:
1. Economic growth: - When the economy is on the rise, non-profit firms get benefit
from it. They can increase their budgets thereby concentrate on more activities.
Similarly, if people feel economically more secure, they are more likely to donate to
the courses they believe in.
2. NGO’s work welfare of society: - People are interested to donate NGOs that are
working for the development of the society also lack accountability is a major
obstacle in giving donations towards NGOs. So NGO’s service towards society and
accountability also matters to give donations.
3. Government income tax policy: - Now a day’s people are interested to donate NGO’s
to avoid income tax. So the government income tax policy on NGOs also matters to
give donations.
3. Socio-cultural Environment Analysis:
This aspect of the general environment reflects the demographic characteristics, norms,
practices, and principles of the society within which the entity functions. That encompasses
population tendencies such as population rising rate, age spread, income distribution, job
attitudes, protection attention, health awareness, lifestyle attitudes, and cultural barricades.
The socio-economic environment influences the organization's ability to get donations and
effective use of the resources to make the programs are more effective. So this helps NGOs
to expand the operation.
Socio-economic factors for NGOs are:
1. The education level and literacy of the people: - Usually, parents are not interested to
send their differently-abled children to the institution like Samarthanam Trust for
Disabled, because of education and literacy level and extra care on the differently-

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abled children. That shows the significance of education level & literacy. So the
people's education level and literacy may affect the sustainability of the NGO’s.
2. The negative perception of the people: - Some people have a negative opinion of the
activities of NGOs. They think that NGO’s are working towards the fulfilment of
their own goal. This will impact the existence and sustainability of the Organization.
4. Technological Environment Analysis:
Technology is a potential tool for success for Non-Profit Organizations. It will have a greater
impact on the NGOs those who are working for the children's education and rural
development. The service can be made very easy and effective by using technology.
Technology helps the organization to manage the tasks, handle the documentation, and
improve communication with other branches. For the non-profit organizations, the change in
technology will lead to a rise in the brand image these will also lead to retention of donors
and to reach the maximum number of donors for the organization by using social media
platform advertisements. To use this updated technology the organization has to provide
training facilities to the staff of the organization.
Technological influencing factors for NGOs are:
1. The software’s like MIS helps to gain donor retention: Some software helps to get
donor information and data. It helps the organization to make the decision based on
the donor’s data and information.
2. Using the internet helps to expand the operations: - The usage of the internet in the
organization helps to bring opportunities for NGO’s. It will help to manage the tasks,
handle the documentation, and to enhance communication with other branches of the
organization.
5. Environmental Factors:
Environmental issues have just lately come to the forefront. They have become relevant due
to the growing lack of raw materials, the quotas for emissions, and the goals set by
governments for the carbon footprint. These considerations include economic and
environmental issues like geography, climate change, environmental changes, and climate
change, which can have a direct effect on sectors such as tourism, farming, agriculture, and
insurance.

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4.10 COMPETITIVE ANALYSIS (MICHAEL PORTER FIVE FORCE MODEL)
TOWARDS NGO
Porter’s model depends on microeconomic and has to date shaped strategic
management practice in the corporate world. It is established on the assumption that the
external environment is a significant influence on strategy development.
According to author Thorin’s (2011), Porter’s Five Forces are intended for traditional for-
profit business and industry settings. With minimal changes, they are equally related to the
non-profit sector. Where the Non-Profit Organization's application of the model is more
concerned with how the forces influence an organization’s capability to perform its mission
effectively and efficiently. Porter’s Five Forces are:
1. The Level of Rivalry among Organizations in an Industry
The rivalry among the competitors can be brought about by introducing a new product, price
discounting, advertising campaigns, and service improvements. In the Non-profit
organizations working towards the education & skill development industry, the power of
rivalry depends on the object of the competition: students, teaching staff (faculty), donors, or
government-based funding and research funds. It is influenced by two structural factors.
(a) The existing organization’s profile, this is defined by the number of organization in a
pool, which will determine the degree to which each organization must compete for students,
faculty, government-based funding and research money.
(b) NGOs working towards the education & skill development industry are strongly impacted
by economic, political, social, and technological variables. The political and economic factor
of the education & skill development industry is intricately connected, especially for other
public organizations. Due to an increased concentration of similar organizations and a
perceived incentive to compete on price, organization revenue will likely be reduced and this
is likely to build financial management challenges to the management of the organization,
now and in the future.

The level of revelry between the organizations in an industry, here important is that the
number and capability of the competitors, if NGOs have many competitors, and they offer
the same kind of services then it will be difficult for an organization to remain in the market.
So, the NGOs which are providing the same type of services need to adopt unique services.
2. The power of large customers

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For the Non-profit organization sector, the activities are service, not product-based. These
services are social character and based on specific skills rather than material resources.
However, people benefiting from various services of NGOs are to be customers. If NGO fails
to satisfy the customer then they will switch to other organizations.
3. The power of large suppliers
The donor’s community and commercial funders are the suppliers for NGOs and they deliver
the resources, that are in the form of funds (monetary/non-monetary), for the Non-
governmental organization to convey its mission and in return, they can share claim to the
positive social effect which is attained through the NGOs activity. Here the power of
suppliers is to stop the donations and funding if the Non-profit organization fails to fails to
maintain a good relationship with them hence the power of the supplier is high.
4. The potential for entry into the industry
The NGOs don’t need high investments to start an NGO as per the Central Bureau
Investigation 2015; there is 1 NGO for every 600 people so the potential for entry is high in
the non-profit organization sector.
5. The threat of substitute service,
The threat of substitutes to be observed to take the form of competing funding requirements
between different developmental focuses for example between ECD programs, nutrition
programs, psychosocial programs, etc. For the model adaption, this can be renamed as the
threat of competing needs. With a positive social effect being to the final goal of all
investments and activities there is strong debate around which are the areas to be key focus
areas.

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COMPETITIVE ANALYSIS (MICHEL PORTER FIVE FORCE MODEL) OF NGO

Barging power of
supplier
(High)

Threat of
new
Threat of
substituent
new
Rivalry between industries s
entrants
(Moderate)
(High)

Barging power of
customer
(Moderate)

Model 3: Michel Porter Five Force Model

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4.11 COMPARE AND CONTRAST COMPANY VALUE CHAIN WITH INDUSTRY
VALUE CHAIN

Table 6: Compare and contrast company value chain with industry value chain
Particulars Industry Company
Providing facilities to the
Strength The moralization of students.
rural background citizen.
Brand image, increased
Lack of funding towards
Weakness dropout rates, lack of donor
NGO.
retention.
Government policies, new
technology, developing links Create a link between society
Opportunities
with the business and differentiable candidates.
community.
Other more established
Threats Economic crisis. NGOs complete similar
works.
Economic environment
Pastel Political factor.
analysis
Value chain Marketing and sales. Fund management.

4.12 INDUSTRY TREND


Trends in branding and audience involvement are constantly fluctuating. If their brand is to
be applicable and memorable in a competitive environment, NGOs always should be
assessing and reconsidering how to involve their audiences.
Authenticity
When it reaches the marketing agenda of the Non-profit organizations they should be
determined the authentic, organic connections. It helps the organizations to enhance the
identity as it is important to sustain in today’s marketing to be related to humanize their
organization and to enhance the engagement with donors, public and potential investors in
both the digital and offline spheres. (Marketing Trends for NGOs December 24, 2017).
Social Media & Live streaming

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According to the Pew Research Centre, more than 50% of the adults with the internet are
using more than 1 of the 5 social media networks. If you are not aware of how important the
social networking environment is to society in general, let alone your organization, then you
have a lot of works to do.
This all goes back once again to authenticity and the need for transparency and unmodified
communication. Platforms like Facebook, Instagram, and YouTube, are essential to make the
influence on live streaming efforts.
Although snap chat is now most popular among teenagers and data displays that daily active
users are constantly increasing. There are 150 million active users in the Snap chat app and
86% of those users are between the ages of 13 and 34. The Iron Paper platform recommends
that repackaging the live stream content as an initial step for further use of, email, blogging,
and content on social media. Even the White House takes note of this and is constantly using
the platform for strategic communications.
Additionally, the return on investment of social network investment will be partially
transformed through digital payments making their mark on the social network. (Marketing
Trends for NGOs December 24, 2017).
Content Marketing
Content marketing must be a central aspect of every marketing plan for Non-Profit
Organizations. 92% of NFOs use these content marketing and find it an essential part of the
overall marketing strategy. As per the recent estimations, it can use as much strength as other
types of traditional marketing.
Content is important for the development of websites, blogging, social media
presence, email marketing, and just about every other form of digital strategic
communications. The development and proper execution of a strategy are observable when it
comes to content marketing, it can be measured for optimum utility is critical to success.
Platforms like LinkedIn, Medium, and Google, which are currently planning to launch, are a
great choice for organizations regardless of industry or scale. (Marketing Trends for NGOs
December 24, 2017)
Transparency
There is a most important movement around transparency about effects. Donors take care
more about where their money goes. In particular, donors want more personal involvement

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with the causes that they support. Nowadays, most donors have a range of expertise and tools
to investigate Ngo's policies and social impact. To be active on to this trend, create an impact
page on a website that shows the social impact. To do that, of course, first, we need to
quantify our effects. That will have to be our first move. There are also other innovative ways
to keep our donors and supporters open. (Marketing Trends for NGOs December 24, 2017)
 Inviting the donors to visit the program location let them witness first-hand how
their gifts change the lives of the recipients.
 Exploring live streaming: Live streaming is one of the most effective and genuine
strategies we can employ to enhance our organization's transparency. Raw footage is
the power to prepare the unanticipated by always having a mobile phone on hand.
 Using info graphics: Graphics info helps you talk to your audience about complex
ideas. They are an effective way of showing how the donations are being used by the
organization. Non-profits can better involve their audience over data visualization, by
shortening complicated information. Data graphics can also help draw a wider
audience, as the supporters can quickly love, share, and distribute them.
A move from confrontation to collaboration:
It is already understood by the most effective NGOs that real change needs campaigning
against and working with businesses, and this approach is likely to intensify. Companies
would expect social networks to promote more progressive groups in terms of conflict and
put more voices from the 'global south' into the mix and facilitate more cooperation among
campaigning organizations. Working together, business NGOs should be prepared to
demonstrate a tangible effect to shape their relationship to remain credible.
Social ventures
NGO’s are run with the only donation now they are becoming self-sufficient where they are
getting fund from the public as a social venture and using that fund for the welfare of the
society implementing such a program that program yields return to them that profit or return
is given to the social venture who are invested here NGO’s are working as a mediator where
we collect the fund and utilize for the social events, social welfare and again gaining the
profit from that it shows that they are slowly moving donation from to self-sustain. (Five
Trends Shaping the NGO Sector, Ayesha Barenblat, SEP 13, 2011)
Technology:

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The 2017 Global NGO Online Technology Report (tech report.ngo) in these report majorly
contains about the how web apps and email messaging, online and mobile fundraising tools,
these are used by NGOs all over the world.
According to the report, the worldwide improvement of Internet infrastructure will
continue, these means that the usage of Internet and builds social change by 2025. The report
shows that 71% of NGOs often send emails to supporters and donors while 92% of global
Nonprofit organizations have a Facebook page and 72% a Twitter handle.
According to the survey, 69% of NGOs said social media was very effective in creating
brand recognition online, while 40% said social media was very effective in creating social
change. (How technology helps NGOs increase reach and efficiency, Updated: 13 Oct 2017,
12:05 AM) Even the Ngo will be subjected to overall trends with their sector. The NGOs'
sectors are continuously changing.
1. Increased media awareness for development issues and solutions.
2. Increase in the demand for transparency and donor coordination.
3. Technological development, especially new communication technology.
4. Health, livelihoods, education, and others
5. Increase in larger gifts
6. Intermediary bodies to empower donors and support Non-profits
7. Strategic corporate giving
8. Non-profit Networking Platforms

4.13 FUTURISTIC OUTLOOK


More collaboration between NGOs: In the past years NGOs have been operated individuals
based on their priority issues areas. As there is a sustainability issue is complex, nowadays
NGO ate increasingly collaborating.

Rise in virtual campaigns: Most of the NGOs are using social networking as


communication tools. In the future days, the company is expecting to go see NGO moving
from communication to mobilizing the public by convincing campaigns and to get connected
manner.

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4.14 KEY SUCCESS FACTORS (KSFS)
1. Fundraising
A non-governmental organization is a citizen-based, non-profit entity that works
independently of government. Non-governmental organizations are structured to fulfil
particular social or political goals at the state, regional and international levels. NGOs
rely on a variety of funding sources for projects, operations, wages, and other
overheads.
Kinds of fundraising:
a) Funding agencies
The following is a list of funding agencies and organizations offering grants and
financial assistance to the Non-Governmental Organization in India. Abilis
Foundation
 Action aid India
 Aga Khan Foundation
 American India Foundation
 Association for India’s Development
b) Corporate under CSR activity:
CSR is the initiative of a corporation to evaluate and take responsibility for the
environmental and social well-being effects of the enterprise. CSR is the on-going
commitment of businesses to behave ethically and contribute to economic
development while improving the quality of life of the workforce and their families as
well as those of the local community and society at large.
Companies that use CSR activities:

 Reliance Foundation: “Reliance Foundation School” A school built by the


foundation to transform the young people in a way that would benefit the
country, to build a vision in the students ' minds that would inspire them to be
leaders and face the country 's challenges head-on.

 Tata Motors: Tata motors began at Jamshedpur in 1950 with rural


developmental initiatives. Based on community service provider/infrastructure

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growth approach. In 1966- An integrated program for rural development in
Pune. In Lucknow, a community development program began in 1994. And in
2009 the Corporate Social Responsibility Program began – Sananda, 2010-
Pantnagar, 2011- Mumbai and 2014- respectively Dharwad.
c) Donation through the website: A donation page is a one-page sales pitch that
contains all the details that someone has to agree to donate. This is the page for
donating to an organization that you direct someone to donate to an organization.
d) Awareness and social campaigns: Such programs generally seek to produce
positive, long-term behavioural improvements. Rising consciousness tackles the
intelligence of individuals and organizations. The goal is to ensure that all relevant
regional and sub-regional bodies understand the impacts of certain climate impacts
and take action to address them.
2. Government:

Donors are more likely to give money to the NGOs rather than the government, but
the government needs donors to support them directly to implement health projects.
Therefore, the state authorities see that the NGOs take over their area of influence in the
health sector. NGOs have succeeded in health projects.
Factors:
1. Department of higher education: The Department of Higher-Education is
answerable for the overall development of the infrastructure of the Higher-Education
sector. Under planned progress, the Department looks after extension of access and
qualitative development in the Higher-Education, through world class Universities,
Colleges, and other Institutions.
2. Policies and Schemes
 DISHA: This is an early learning and school training program for children in the 0-10
age group with the 4 handicaps protected by the National Trust Act. The goal of this
scheme is to provide training and therapy for both children and parents (especially
school readiness).
 The purpose of the DISHA scheme is to establish Disha Early Intervention Centers
for Persons with Disabilities (PwD) within 0-10 years of age covered by the National

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Trust Act, through therapies, training, and support to family members. Except for
Jammu and Kashmir, the Scheme is available throughout the country.
 BADHTE KADAM (Awareness and Community Interaction): which translates into
English as “Stepping Forward”, is a unique federation of Street and Working
Children we helped found in 2002. It was recognized to empower Street and Working
Children, joining them together to have a collective voice and fight for their rights.
Since then “Badhte Kadam” has gone from strength to strength spreading across 7
districts in North India and with over 10,000 members, achieving both national and
international recognition for its campaigns for child rights.
3. SAHYOGI (Caregiver training scheme this scheme aims to develop Caregiver Cells
(CGCs) to provide training and to build a professional caregiver workforce to provide
adequate care and support for people with disabilities (PwD) and their families who
need it. It also seeks to provide an opportunity for parents if they so desire to be
trained in care. This scheme would include a choice of training through two levels of
training to allow the development of caregivers suitable for working with families of
persons with disabilities ( PwDs) as well as other institutions that meet the needs of
PwDs (NGOs, work centres, etc.)
Donors:
Donors also play a vital role in helping Non-governmental organizations to improve their
financial stability, and the partnership between head office and branch office may be close to
the partnership between a donor and an NGO successfully utilizing funds. Ngo's have strong
incentives to tell their donors what they think and want to hear, to include priorities for
donors and what they do, Which puts donors in a strong position and generates value for
money.
Factors:
1. Power: Holding the money places a heavy influence on donors. They influence how
NGOs work, and that brings with it significant responsibilities. NGOs are often given
funding from several different donors. That can impose different conditions and
demands.
2. Bureaucracy: Donors and NGOs need to coordinate their work through bureaucratic
processes. Both NGOs struggle with the need for centralized power and decentralized

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decision-making. Many donors and NGOs rely on 'project-based' systems that are
based on the assumption that they can predict activities and results with certainty.
3. Media: Media may play a key role in promoting knowledge flow. Media can work
towards both building public awareness and promoting development issues. Media
visibility and publicity are an important resource not only for attracting volunteers
and donations for contemporary non-profit organizations but also in fostering
community participation, increasing public trust, and reaching out to potential
institutional partners.

4.15 MOST COMMON DRIVERS OF INDUSTRY CHANGE


Civil Society organizations often referred to Non-governmental organizations that
give importance to issues like poverty alleviation, environmental degradation, human rights,
and other issues of economic, social, and political development. These Non-Governmental
Organizations maintain activities, such as providing facilities to poor people, analysing the
policies that support underprivileged areas, building capability for self-help, or development
research and information sharing.
Adapting to changes is one of the main factors for organizations to survive. Surviving
in a dynamic atmosphere is a major priority that drives an organization to change.
There are few internal and external drivers which influence on Non-Governmental
Organization.
I. Internal drivers
1. The internal crisis within the organization:
An internal crisis within the organization is the major reason that forced to make changes.
There are some reasons which cause the internal crisis, such as financial, human, leadership,
control or clash of cultures, etc. The crisis is an integral portion of the evolution of
organizations and should be accepted and managed as such.
2. Scarce resources, the donation market, and financial dependence:
Most of the Non-profit Organisations are having very limited revenue despite the number of
actions conducted, which come from a very large variety of donors, and in most cases also do
not align with their beneficiaries. These NGOs find it difficult to gather sufficient and
continue to do so. Attaining access to appropriate donors is an important component of this

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challenge. They may have a partial capacity to mobilize resources locally, so instead, they
delay for international donors to approach them. The present donors may change their
priorities and remove their funding. The NGOs may suffer from an absence of project,
organizational, and financial stability.

II. External drivers


1. Government policy changes
In developing nations like India, the role of the government acts as a greater significance. In
India, the NGOs are funded totally or partially by the government. In this case, some
government policies influence the activities of the NGO.
Example: - On 1st February our finance minister Nirmala Sitharaman introduced the budget in
parliament; she presented many amendments under the Finance Bill 2020. Some of these
alter the validity of registrations granted to Indian non-governmental organizations. It says
that the Non-governmental organizations are valid only for five years. After this, they have to
apply for the same. Besides, the Bill states that all non-profit organizations in the country
will have to apply for fresh registrations under the Act by August 31. These kinds of
government policies could make it harder for NGOs to function and sustain.
2. Uncertainty and risk
More frequent drought and extreme weather events, such as droughts, floods, and cyclones,
natural disaster, earthquakes, these are the major global problems which are affecting poor
and vulnerable populations. Eleven of the twenty nations are most vulnerable to climate
change in each of the past seven years. This is most obvious in the economic pressures
forcing people to survive in dangerous locations. To mitigate these challenges, NGOs need to
do better to prioritize adaptation for climate change as part of the humanitarian response.
3. Globalisation Drivers
In recent years, the arena of the Non-Governmental Organizations act has extended rapidly
from local and national level to the international level. Non-profit organizations have
accessed noticeable positions in negotiations. They are also playing important roles in
providing humanitarian aid, disaster relief, and development assistance, etc. Global donors
and supporter’s organizations are becoming global customers or suppliers to establish world
brands, develop global advertising. Global donors and supporters, organizations that become

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global customers or suppliers, the establishment of global brands, the development of global
advertising, the impact of global media on other effects of globalization.
4. Technology driver
Nowadays technology is letting people conduct their work more efficient and easier. It
extends its benefits not only to its contribution to the industry, but also everyday life. It is
common for NGOs to have partners and collaborators who are not always local to where
NGO actions are carried out and/or coordinated. Such partners and collaborators are often
located around the world, which, in turn, needs efficient and timely communication and
technology for the best results. Intuitively, technology can improve communication
efficiency when long-distance collaboration is needed. These technologies can make it
possible for Non-governmental organizations to respond more rapidly.
5. Change in the needs or variation in demands of the target group
The change in the needs of the target group of NGOs or a variation in the demands of the
customers is the major external forces that can influence the organization. Affecting the
Ngo's target population, any change to the political, social, and economic circumstances may
represent a clear opportunity or threat to the organization and it cannot remain indifferent. If
there is a change in the needs, demands, tastes, and preferences of a target group then the
organization needs to set the programs according to their needs.
6. Competition Drivers
Given the rise in the number of NGOs and the intensified competition to get the funds, the
brand has become a key factor of difference, since the positive brand image is, a potential for
the enhance the donations. Competition is for the contributions of potential donors, in part
because the public sector does not have the necessary resources like human financial
resources to contribute in all circumstances of insufficiency and needs (Frumkin and Kim,
2001). This is will influence Non-governmental organizations to adopt more new strategies
and update new strategies to increase their brand image.

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4.16 INDUSTRY OUTLOOK IS CONDUCIVE TO GOOD PROFITABILITY
We know that this pandemic is unprecedented in scale and need. Every household,
company, industry, sector, and the nation effected from its health, culture, and societal
impacts.
1. NGO spreads awareness among domestic help
Despite the World Health Organization declaring coronavirus a pandemic,
underprivileged people in India are at higher risk due to a lack of knowledge or awareness
and limited access to health care. Keeping the challenge in mind, the 'Smile Foundation' has
developed visual aids to illustrate what the virus is, how it spreads, and preventative
measures. The organization has decided to share basic hygiene tips with people including
washing their v hands regularly, avoiding social events, and seeking early medical care if
they experience fever, cough, or difficulty in breathing. The organization has also created
Smile on Wheels healthcare vans that move through slum areas to increase awareness of
coronavirus spread.
2. Fight against Coronavirus
An NGO called Bal-Bharti Academy has been involved in socially significant
activities such as livelihood, health, women empowerment, skill enhancement, infrastructure
development for people of India. On March 11, 2020, WHO declared a novel outbreak of
Coronavirus Disease as a pandemic and extends the response to the notice, treat, and
minimize transmission to save people. Bal-Bharti Academy has promised to fight against
Coronavirus and to care for the government and citizens of India by providing the best
products and services that are 100percept made in India. The focus is not only on providing
the best rates but also on totally delivering Indian goods.
3. No one should have to sleep hungry
With the government order of lockdown and insufficient state facilities for food
supply, many families are sleeping hungry in their homes, standing at railway stations or
national borders. Keeping this in mind the NGO MCKS Food for the Hungry Foundation, a
non-profit organization based in New Delhi, has distributed more than 1,000,000 foods to
those in need. The team’s mission - no one should have to sleep hungry. They have expanded
their capacity at MCKS 'Kitchen by 6x and served 60,000 + healthy cooked meals to the
needy. Each nutritious meal of approximately 450 calories costs INR 15/-only. Similarly,

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several other NGOs are operating in the same line of activities as Zomato Feeding India,
Give India, etc.
4. Kashtakari Panchayat
Pune-based Kashtakari-Panchayat has organized a fundraiser to help nearly 7,000
employees in Pune and nearby Pimpri-Chinchwad. The funds will be used to deliver safety
kits which consist of masks, gloves, sanitizers, and soaps and supply of important products
such as rice, spices, oil, sugar, and tea. It is necessary because most employees earn their
revenue by selling scrap but in the continuous lockdown, these shops are being locked down.
The government's salary is also more likely to be overdue, making its revenue highly
uncertain. So far, the organization has raised INR 8.5 lakhs from a target of INR 2.5 cores.
5. The government allows NGOs to buy food grains directly from Food
Corporation India for relief operations
In New Delhi, the Government has authorized Non-Governmental Organizations to
withdraw rice and wheat directly from the Food Corporation India to feed the poor during a
nationwide lockdown. Food grains should be available at the price at which FCI sells to bulk
purchasers, state governments, and flour millers. Food Corporation India sells wheat at Rs
2,135 per quintal and rice at Rs 2,250 per quintal. These organizations may purchase one to
ten tons of food grains at a time from over 2000 FCI drops at market prices without
participating in any auction.
6. Deregistered foreign-funded NGOs
For five years, the government has deregistered more than 14,800 NGOs listed under
the FCRA and obtained funds from abroad; registrations have been revoked as the NGOs
have committed violations of the FCRA provisions. Besides large organizations are partly
receiving monetary and nonmonetary funds from the government to sustain as well as feed to
needy people. And some small organizations are suffering both financial and organizational
risks.

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4.17 FINDINGS
 Relationship management with the supplier and fund-raising activities in NGO acts a
significant role in the organization.
 It has been noticed that both political and legal factors have positive and negative
effects and the technological factor has a positive effect on NGOs.
 In the five force model, it is proved that the bargaining power of suppliers and buyers
is high and sustainability depends on these two only.
 Primary activities play a significant role in NGOs in the value chain as well as
supporting activities that have the greatest impact on the management of the
organization.
 It was observed that fundraising, government, and technology are the most key
success factors in the NGO sectors.

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CHAPTER 5: CONCLUSION
5.1 CONCLUSION
NGOs are playing an important role in rural development including various subjects
like farm development, an agricultural extension program, irrigation, socio-economic
empowerment of under-privileged, housing, education, health, etc.
The educational goal is to ensure that quality education is inclusive and reasonable
and to promote opportunities for lifelong learning for all.
In this present era education is one of the most vital aspects for each individual of the
society. Samarthanam Trust for the Disabled has started in the year 1997. So Samarthanam
Trust for the Disabled is providing these education facilities to the specially-abled students
through unique programs. It is also aimed at the empowerment of differently-abled persons in
Bengaluru.
The trust can also be more efficient and creative by extending its other initiatives that
are present in the branch-like cultural activities, sports, and dry waste management system in
Bengaluru; these will help the Trust achieve the organization's vision and purpose.
To conclude by this study we came up with building a new value chain analysis
model for the industry like Samarthanam Trust which will, in turn, help the organization in
the future to be more effective and efficient. Through these studies, we came to know the
external factors affecting the overall growth of the company factors like political, economic
environmental factors. The strengths of the industry and company are providing facilities and
mobilizing the students of rural background and special abled students. The opportunities are
to collaborate and to create a link between the business community and NGO. So if the
organization uses the opportunity and Value chain helps to increase the performance of the
company.

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5.2 REFERENCE
 How do Donors Allocate Funds to NGOs? Evidence from Uganda: Spiros P.
Bougheas, Alessia Isopi, Trudy Owens, 2012, Corpus ID: 167885422.
 Goodwill bazaar: NGO competition and giving to development: Journal of
Development Economics, Gani Aldasheva, ThierryVerdierb, Volume 91, Issue 1,
January 2010, Pages 48-63.
 Human resource management challenges facing local NGOs: Science publishing
group, Rehema C. Batti, June 2014, doi: 10.11648/j.hss.20140204.11.
 Core costs and NGO sustainability towards a Donor-NGO Consensus on the
Importance of Proper Measurement, Control & Recovery of Indirect Costs:
University of the Incarnate Word, Alfredo Ortiz, February 2001.
 Investigating Impacts of Globalization on Performance of NGOs: Global Journal of
human-social science, Miss Robina & Prof. Dr. Allah Nawaz, Year 2014, Volume 14
Issue 8.
 The Influence of Government Policy and NGOs on Capturing Private Investment:
Gayle Allard & Candace Agrella Martinez, March 2008, Global Forum on
International Investment.
 Organisational factors influencing sustainability of local non-governmental
organisations: International Journal of Social Economics, Ernest L. Okorley, Edmund
E. Nkrumah, April 2012, ISSN: 0306-8293.

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5.3 BIBLIOGRAPHY
 file:///C:/Users/win%2010/Desktop/6th%20sem/Project%20phase%20II/Project
%20literature/factors%20on%20effective%20mgt%20of%20ngo.pdf
 https://www.researchgate.net/publication/335867061_Importance_of_Key_Success_F
actors_for_Local_and_Inter national_NGOs_in_Humanitarian_Supply_Chain
 file:///C:/Users/win%2010/Desktop/6th%20sem/Project%20phase%20II/Project
%20literature/08_chapter_3.pdf
 https://www.researchgate.net/publication/273275801_Branding_in_NGOs_-
_its_Influence_on_the_Intention_to_Donate
 file:///C:/Users/win%2010/Desktop/6th%20sem/Project%20phase%20II/Project
%20literature/978-1-349-62818-6_8.pdf
 https://www.outlookindia.com/newsscroll/covid19-ngo-spreads-awareness-among-
domestic-helps/1760500
 file:///C:/Users/win%2010/Desktop/6th%20sem/Project%20phase%20II/Project
%20literature/52625_ch_9.pdf
 https://scroll.in/article/952149/ngos-fear-more-harassment-as-modi-government-
changes-rules-for-registrations
 file:///C:/Users/win%2010/Desktop/6th%20sem/Project%20phase%20II/Project
%20literature/GHO-2020_v9.1.pdf

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CHAPTER 6: PLAGIARISM REPORT

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