Foreign Aid Canada
To: Executive Management Team
From: Pat Innes, Controller
Date: 10 January 2013
Executive Summary:
Operating in an industry where intense competition exists, Foreign Aid Canada (FAC) has encountered some challenges and strategic choices that will be discussed and analyzed in this report. FAC is considering two strategic alternatives in order to introduce testing, treatment, and education of AIDS in Africa and Asia:
1. AIDS Clinics
2. Mobile AIDS Units
This report will also assess another major alternative to outsource its HR function, travel, facilities, donation processing, CIDA billing and payroll to OS Canada Inc. (OS). There are two minor alternatives that are also discussed in this report:
1. TV Advertising
2. Eliminating Newsletters
It is recommended that FAC establish three mobile AIDS units in Africa/Asia and outsource the support services function of the business. Implementing the mobile AIDS units aligns closely to the new mandate at FAC and will certainly improve the lives of many in foreign countries. Deciding to outsource support services will reduce costs over five years. It is also recommended that FAC invest in television advertising and continue to send out quarterly newsletters. Each of these strategies will have a large contribution to donation revenue for FAC.
Introduction
FAC is an established not-for-profit organization that aims to improve the lives of people in need. Although it is a not-for-profit organization, FAC faces an increasing level of competition with other assistance organization because there is a limited amount of donations. It also faces a high degree of uncertainty in a recessionary economy.
The purpose of this report is to evaluate the major and minor alternatives that FAC is facing, as well as some operational issues. This report will include an analysis of the current situation, the major and minor alternatives, an action plan and implementation strategy, as well as recommendations.
Situational
From: Pat Innes, Controller
Date: 10 January 2013
Executive Summary:
Operating in an industry where intense competition exists, Foreign Aid Canada (FAC) has encountered some challenges and strategic choices that will be discussed and analyzed in this report. FAC is considering two strategic alternatives in order to introduce testing, treatment, and education of AIDS in Africa and Asia:
1. AIDS Clinics
2. Mobile AIDS Units
This report will also assess another major alternative to outsource its HR function, travel, facilities, donation processing, CIDA billing and payroll to OS Canada Inc. (OS). There are two minor alternatives that are also discussed in this report:
1. TV Advertising
2. Eliminating Newsletters
It is recommended that FAC establish three mobile AIDS units in Africa/Asia and outsource the support services function of the business. Implementing the mobile AIDS units aligns closely to the new mandate at FAC and will certainly improve the lives of many in foreign countries. Deciding to outsource support services will reduce costs over five years. It is also recommended that FAC invest in television advertising and continue to send out quarterly newsletters. Each of these strategies will have a large contribution to donation revenue for FAC.
Introduction
FAC is an established not-for-profit organization that aims to improve the lives of people in need. Although it is a not-for-profit organization, FAC faces an increasing level of competition with other assistance organization because there is a limited amount of donations. It also faces a high degree of uncertainty in a recessionary economy.
The purpose of this report is to evaluate the major and minor alternatives that FAC is facing, as well as some operational issues. This report will include an analysis of the current situation, the major and minor alternatives, an action plan and implementation strategy, as well as recommendations.
Situational