Value Chain Analysis of Christian Blind Mission †Free Samples

Question: Discuss about the Value Chain Analysis of CBM. Answer: Introduction of the organisation CBM, popularly known as Christian Blind Mission is devoted to the aid of children with disabilities. CBM is considered as Christian development organisation that is committed to improving the life of the people suffering from various types of disabilities all over the world. The organisation visits the poorest places across the world in order to provide a chance of living a proper life for the disabled children. The initial aim of the organisation was to prevent the occurrence of disability such as blindness among the children. However, with time the organisation has adapted itself to prevent as well as cure disabilities among the children. In recent years, the organisation has a total of 11 members associated in fulfilling the aim of child disability in the world. CBM supports over 650 projects spread across of 63 countries in collaboration with other organisations in the world (Cbm.org.au, 2017). The Government of Australia provides support for the development of the organisation in order to aid the poor countries around the world. However, support is needed from the Government of other countries in order to identify the causes of poverty as well as the disability that exist among the children. In order to do so, the organisation receives external support from partners that share the same view of protecting the disabled people. Some of the partners of the company include CBM Regional and Country Coordination Offices and Field Partners. These organisations are involved with regional offices of CBM working in the countries in Asia and Africa. The countries existing in this part of the world suffer from the disability complex more than any other parts. Apart from this the Field Partners local NGOs, churches, Government departments that implement certain projects undertaken by CBM. Thus, CBM receives considerable support from these partners in order to carry out the organisationa l objectives. Identifying sources of cost and differentiation advantage Banker, Mashruwala Tripathy (2014) stated that every organisation needs to analyse the sources that are involved in providing the competitive advantage for an organisation. In order to analyse the cost-effectiveness that may differentiate a business, it is necessary for managers to analyse the conditions using Porter's generic advantage. Porter's generic model is a way of providing a competitive advantage for firms that seek to make maximum profit from the sale of products. It reduces the costs of a product and provides uniqueness in the quality of the products that are manufactured by an organisation. However, Davoudi Cheraghi (2017) countered the fact that Porters generic model can only be used to determine the profitability of an organisation. The organisations indulged in profit-making activities do not always gain an advantage from the application of the model. Non-profit organisations can also use the model in order to create a competitive advantage and ensure that the social services performed by the company are the best in the regions. Gehani (2013) stated that organisations that have the urge to achieve sustainability and maintain a collaborative atmosphere can benefit from the application of cost and differentiation strategies. Some of the aspects that are involved in maintaining the competitive advantage are to identify the programs that fit in the environment. In the case of CBM, the organisation can use cost differentiation technique in order to identify the requirements of the poor people. The cost required for curing the disabilities including blindness need to be calculated by proper analysis of the environment in which it functions. According to Tanwar (2013), the focus of an organisation needs to be the satisfaction of the customers. The type of products and services that the customers choose depend upon the mentality of the customers. In the case of NGOs, the customers remain satisfied with the minimum requirements that are provided for the wellbeing. CBM ensues that the best treatment related to the cur e of the patients are provided. It is important to understand the gaps that exist in the relationships between the people and other NGOs. This can be useful for reputed organisations such as CBM to provide better assistance to the people. Wicker et al., (2015) stated that it is important to curve a statement for the organisation in order to be recognised by the people. The differentiation strategy and the cost-effective strategy can be implemented in CBM by proper analysis of the competitors. Raman, Damaraju Joshi (2014) stated that the competitors among the NGOs are high mainly because of the fact that the purpose and aim of the organisations are similar to one another. This makes it difficult to formulate a proper strategy for the managers of the NGOs do not aim to make profits from the services to the society. In the light of this statement, it can be said that the differentiation strategy applied by CBM can help the organisation to outwit its competitors. CBM not only provides cure to the disabled people but also donates finances to hospitals and other NGOs of different regions. This helps the organisation to increase the reputation in the industry with reasonable profit being stored for improvement of the organisation. In this regard, the competitors of CBM can be analysed. Some of the organisations that pose threat to CBM in terms of providing assistance to the disabled people include People with Disability Australia, CARE Australia, Action on Poverty, ChildFund Australia and so on. The aim of the companies is to safeguard the interests of the poor people and children that lack proper conditions for participating in health programmes. However, the advantage that CBM holds against these organisations is the fact that the organisation is backed up by 11 different nations that are equally concerned with the poverty of the world (De Vries Van der Poll, 2016). Hence, in order to display the organisation in terms by comparing its uniqueness and cost factors, CBM can be considered as the leading NGO in the country. The ability to provide proper unique services in collaboration with the partners and the maintaining the costs of the organisations provide it with a strategic advantage. Conducting a value chain analysis of the organisation: Value Chain Analysis of CBM Value Chain Analysis is a strategic tool used to analyze the internal activities of an organization. The main purpose of value chain is to recognize the activities which are the most valuable, which might be the source from where the cost is incurred or where the organization creates a differentiation advantage and the factors which could help in a giving a competitive edge to the organization (Fearne, Garcia Martinez Dent, 2012). The primary activities of Value Chain Analysis are as follows: Inbound Logistics Inbound Logistics refer to bringing of raw materials from the point of production to the company, which is the point of distribution. CBM enhances the value chain in this regard by ensuring quality raw materials for providing people having disabilities with the necessary items. Operations Operations include the process of converting raw materials into finished products. CBM would only be able to provide disabled people with necessary items by getting products and other utilities in the right manner by maintaining quality. Outbound Logistics Outbound Logistics refer to sending of finished products from manufacturing point to distributors and retails. The efficiency of CBM lies in this regard by boosting the value chain through providing poor people suffering from disabilities with quality products on time (Gereffi Fernandez-Stark, 2016). This helps to fulfill the needs of the poor people and also help in reducing costs. Marketing and Sales The push and pull strategies are put in place to take care of the marketing and sales of any organization. Generally organizations do carry out these strategies for making profits but in this CBM being an NGO, they also work in-tandem with local relief organizations to ensure that people suffering from any kind of disability are always included in the disaster response planning and future relief efforts, thereby help in marketing an organization and sell themselves through their services in an effective manner (Rohrbeck, Konnertz Knab, 2013). Proper marketing help build brand equity for CBM by adding value to their services. Service Service is the most essential aspect of a value chain system. Any organization is known for the services they provide and help in creating an image for themselves in front of the customers (Rothaermel, 2015). In a similar manner, CBM ensures proper service delivery through providing the poor and disabled people with essential items in terms of food, shelter, clothing, thereby helping them to rebuild from distress. This helps to analyze how CBM has created a place for themselves in delivering value by constant growth through providing services to poor people with disabilities all around the world. Conducting a VIRO analysis Having analysed the competition of the organisation it can be said that CBM needs to formulate strategies that can help in improving the reputation of the organisation. The strategic scheme that can be implemented by the organisation can help in gaining a competitive advantage by improving the vision statements and the objectives of an organisation (Knott, 2015). In this regard, the use of the VIRO model can be applied in order to understand the internal capabilities of an organisation. The VIRO analysis consists of the value, ability to be rare, ability to imitate and the organisation that applies the strategies. Value- The resources and capabilities that are possessed by an organisation needs to be valuable in order to strengthen the work done by the company. CBM possess the support from different organisations in order to add value to the work that is done by the company. Apart from this, the employees working in CBM are involved with various projects around the country that helps in the identifying and curing children that require help. The belief that working together can help a country consists of the capabilities of the organisation. The motivation provided to the employees is one of the most valuable assets for CBM. Rarity- Rarity refers to the ability of an organisation to provide services and products that are unique from one another. The uniqueness of an organisation defines the capability it possesses and the manner in which it can gain a competitive advantage in the industry (Albrecht et al., 2016). In the case of CBM, the rarity of service provided by the organisation provides it with an opportunity to remain ahead in the industry of NGOs. The services provided by the organisation include providing proper assistance to the disabled people by adopting innovative methods of treatment. These include using latest technologies in order to cure blindness among the people and ensuring that symptoms to eye diseases can be identified promptly. The fact that the organisation provides cure as well as support to the disable people make it popular among the customers. The value that CBM holds provides it with the ability to remain unique in the society. Imitation- The imitation of an organisation is the ability to replicate the strategies and products that are carried out in other organisations. However, Darmawan, Putra Wiguna (2014) observed that without proper capabilities in terms of physical resources as well as financial resources an organisation cannot imitate products from other companies. CBM does not have to imitate the services that are provided by other organisations because the company is well placed in terms of the services that are provided by them. Imitation of services such as donation of amounts to the churches and educational institutes for the blind is a unique service that is provided by CBM. The dual strategy of donation and helping people is unique and cannot be imitated by its competitors. Organisation- Mudambi Puck (2016) stated that it is the duty of an organisation to arrange the resources after analysing the value, rarity and ability to imitate. This organising of strategies needs to be done keeping in mind the components that are required for attaining competitive advantage. In the case of CBM, it is established that the company does not need to imitate other organisations in order to gain competitive advantage. Conclusion The discussion points out that Christian Blind Mission work towards betterment of poor people in Australia. The non-government organisation functions in a very competitive environment where it has to compete with several other business organisations in Australia. Christian Blind Mission seeks to ensure that it enjoys high market position using differentiation and creating more value for the people it serves. Recommendations: The discussion leads to the following recommendations for Christian Blind Mission pertaining to its market position and the ways it can strengthen its position among consumers: Chritsian Blind Mission should expand into new markets like; inaccessible regions to create competitive advantage. The new areas can be interior inaccessible parts of Australia where harsh weather and relief conditions like extreme heat impede development. The people living in these areas are usually poorer and lack even the necessities of life. Christian Blind Mission should enter these areas with no or few social organisations and reach out to these people. This deep penetration in even the far-flung areas will make Christian Blind Mission unique, rare and hard to imitate by other organisations of same category. This will give the organisation more opportunity to collect more funds from the government and corporate bodies owing to its deeper reach. Chritsian Blind Mission should strengthen its supply chain to obtain products like medicines and food from suppliers at cheaper rates. This will help the organisation to expense it incurs to procure its supply of raw materials. This will help it to reach out to more people at lower price and earn more profit. This would allow it to make its operations more sustainable and cost effective. Christian Blind Mission must obtain participation of more number of stakeholders like governments, corporate bodies and the common people in general to ensure high degree of corporate governance. The organisations must invite representatives from the government bodies, both local and international to attend its events. It can invite the corporate bodies who contribute towards its donations and the local people to support its events. It must take steps to involve suppliers and other such organisations as well in its functions to raise funds to help differently able children. This involvement of these stakeholders would enforce high degree of corporate governance and check corruption in the organisations, thus creating a clean social image of it. This will help the body to generate more funds for its projects like poverty lifting. This would enable the organisation a more socially responsible image that would attract more funds from the stakeholders. A second area where to non-government organisation, Christian Blind Mission can expand to gain sustainable competitive advantage is, calamity relief. 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