Essay on ACF international

An important step in the strategic management process is the analysis of external environment, including the consideration of economical, technologic, social, cultural, demographic, environmental, political, legal/governmental and other factors. External audit also includes competitor analysis and the creation of a competitive profile matrix. The organization I have chosen for analysis is ACF International; this is a nonprofit humanitarian organization the purpose of which is to end world hunger and help the people in need all over the world.

ACF international is considered a world leader in the fight against malnutrition. The company pursues many international initiatives, establishes contacts with governmental organizations and addresses emergency situations as well as the causes of malnutrition in many countries.

ACF International has implemented a number of steps against hunger and malnutrition in such countries as Angola, Azerbaijan, Armenia, Bolivia, Colombia, Philippines, Georgia, Guatemala, Guinea, Lebanon, Malawi, Niger, Peru, etc. Evidently, in each of these countries the factors affecting the organization are different and have to be considered independently. In this paper, external environment for ACF International in 7 countries will be analyzed, namely in Armenia, Philippines, Bolivia, Colombia, Guatemala, Lebanon and Niger. The specifics of nonprofit and humanitarian organizations is that they do not have to face competition; instead of this, they commonly unite their efforts in order to address major problems. Thus, the paper will consist of five parts: socio-cultural, environmental and demographic factors, technological factors, economic performance, political, legal and governmental factors, and other external factors (including the humanitarian infrastructure in the selected countries). For each group of factors, the opportunities and threats (external issues) for ACF International will be considered.

A. Socio-cultural, environmental and demographic trends

Overall, among environmental, socio-cultural and demographic factors the most important trends related to the activities of ACF International depend on the level of poverty and education in the country, and on the water resources, sanitation situation and agricultural opportunities available. Demography and the impact of the environment are also important, as well as the probability of natural disasters and other emergency situations. Let us analyze the above-mentioned factors in the chosen countries.

The population of Armenia is approximately 3 million people, the global hunger index for the country is “moderate”, and the rate of malnutrition in children under 5 y.o. was measured as 4.2%. The situation with sanitation and drinking water in Armenia is satisfactory: 96% of population have access to improved water, and 90% have access to sanitation. Literacy is close to 100%, but education expenditures are quite low (3% of GDP). The number of people below poverty line in Armenia exceeds 26%, and the country is dependent on exports, since agriculture is often ineffective. Environmental problems include the draining of Lake Sevan used for hydroelectric power stations and possible lack of water supplies in future, deforestation and soil pollution. In Armenia, ACF International has provided support for income generating activities, provides tools and seeds for agriculture; the organization has also initiated support for gain, honey and berry businesses.

The opportunities for ACF International in Armenia are centered around agriculture and income generation opportunities for the population. There is a demographic threat: infertility problem has become common among Armenian families. One more opportunity aimed for addressing possible increase of poverty and hunger is the use of alternative sources of energy.

The next country is Philippines, where the hunger is rated as “serious” by global hunger index, and malnutrition in children below 5 y.o. is 20.7%. Although 91% of people have access to good drinking water, only 76% have access to sanitation facilities. In Philippines, there is high possibility of natural disasters: typhoons, earthquakes, tsunamis, volcanoes, etc. The rate of poverty is high (32.9% of people below poverty line), despite the recent economic recovery, since the income is inequitable distributed. Among major environmental problems there are deforestation, pollution of water and air and erosion of soil.