SWOT: Habitat for Humanity

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Executive Summary

The objective of the paper is to analyze the company Habitat for Humanity International for its strengths, weaknesses, and the threats and the opportunities that are faced by the company through the identification of strategies that can enable the company to overcome its threats through strengths and opportunities while developing on its weaknesses.

The habitat for Humanity was initiated by Millard Fuller in 1976 to combat homelessness by providing the homeless and the needy with shelter. The company now operates in almost all continents in the world. The operations for the company are present in North America, South America, Africa, Europe, Asia, and the Asia Pacific. The main mission of the company is to reduce homelessness, provide support to those who need it, spread the message of love, develop partners and alliances through initiatives as well as develop communities that can co-inhabit to provide sustainable development for the homeless.

The SWOT analysis reveals that strengths of the company pertain to its reputation in the industry of building homes and providing support to the homeless, the international reach of the company across borders, the strategic partners/ alliances of the company through which it can grow, and the management of the company. The weaknesses of the company, however, pertain to the constant need for donations and funds for operation, its inability to cope with the greater demand for homes by the homeless, and the lack of operations by the company in the region of Australia.

The opportunities that are available to the company pertain to development in construction and design technology, availability of advanced communication technology for communication with partners and donors, and increased awareness in people for the needs of the homeless. The threats that are still faced by the company pertain to increasing unemployment from recession, increasing rates of homelessness, climate conditions being adverse for sustainable construction, and decreasing donors due to the global financial recession.

Background

The Habitat for Humanity International is a nonprofit organization founded by Millard Fuller in 1976 (Giri, 2002, p41) that works towards the funding of habitat homes, providing the necessary resources for the tasks, designing and constructing homes, providing disaster recovery initiatives for reconstruction and forming alliances with partners to work extensively for rehabilitation of the poor around the world. The company has a worldwide presence with operations in North Am3rica, South America, Europe, Asia, Africa, and the South Pacific. The international scope of the company provides it with a global target market. The company, therefore, makes use of volunteers as well as hired professionals to provide homes to the needy at no profit.

The mission of Habitat for Humanity International [pertains to spreading love across to everyone, advocate for those who need shelter, construct and design shelters for the needy, develop a supportive community and make strategic alli9ances that can contribute towards the mission of the company. The mission statement for the company states that Habitat for Humanity works in partnership with God and people everywhere, from all walks of life, to develop communities with people in need by building and renovating houses so that there are decent houses in decent communities in which every person can experience Gods love and can live and grow into all that God intends (FY2004 Report: Mission Statement, 2004)

The primary stakeholders of the company include its employees, the staff and volunteers, the management, the strategic partners/ alliances, the donors and investors as well as the customers that avail the services of the company. The organization is well known in the market for providing affordable houses to the poor at low installment-based prices with no additional profit. Despite the excellent reputation of the company, Habitat for Humanity International has to face issues about new donors and required funds for operation in a not-for-profit business.

SWOT Analysis

Steps in Analysis

  1. Conduct research:

    1. Primary for internal dimension (S, W)
    2. Secondary for external (O, T)
  2. Populate S, W, O, and T fields using lists of questions provided.
  3. Identify relationships: Match internal measures (e.g., S1) with external factors (e.g. O3) = Strategy or question S1O3
External

Opportunities

O1: Developments in construction and design technology have been made for providing homes and structures for families to live in as little as $1,000

O2: The advanced communication technology based on the internet allows the company to better manage its network.

O3: The increased net presence of the company allows donors to provide funds and donations for the operations of the business through online, internet-based transactions.

O4: There is an increased awareness by celebrities as well as the general public on the needs of the homeless especially those in the third world countries.

Threats

T1: The ongoing recession in the US has impacted the global economy as well as the unemployment rate in many countries giving way to an increase in the level of homelessness.

T2: The donors and partners of the company are finding it hard to gather funds due to the ongoing global recession.

T3: The environmental and climate conditions brought on by pollution make it difficult to build sustainable and long-lasting habitats for the homeless in a constrained budget.

T4: The prominent officials at the regions of operations have individual agendas of personal interest that need to be overcome by the company for the establishment of houses for the homeless and the needy.

Internal

Strengths

S1: The company has a well-established reputation from its body of work across its regions of operation, in the industry, and the international markets.

S2: The company has an international reach specifically in South Asia, Europe and Eurasia, North America, South America, and the regions of Africa.

S3: The companys strategic partners work with the company to fulfill its mission through participation, contribution volunteer hours, and providing donations, funds, and investment into the developmental projects.

S4: The management of the company has provided a strategic SBU to the company through alliances and the franchise model of the business. Therefore localized versions of the Habitat for Humanity are present in its regions of operations.

S-O Strategies
(Invest, Capitalize)

S#O#: The company can invest in the developmental technology for construction and design using its reputation and its position in the industry of operation to operate at minimal possible costs for its projects.

S#O#:

S#O#:

S#O#:

S-T Strategies
(Repel, Counter)

S#T#:

S#T#:

S#T#:

S#T#:

Weaknesses

W1: Due to nonprofit nature of its work, the company is pressed for funds for operations on its projects

W2: The company is unable to cope with the greater demand for housing for the homeless alone, therefore it needs partners and more alliances.

W3: The company does not have operations in Australia which limits its services in the region.

W4: The presence of the global recession has greatly impacted the cost of operations and the need for funds for the establishment of homes for the increasing number of homeless people.

W-O Strategies
(Develop or Outsource)

W#O#: The company can make use of an inline transaction processing system with EDI capability to make it easier for its donors to donate for its operations and for its strategic alliance partners to invest in the various projects.

W#O#: The company can make use of the present internet-based technology for socializing and community building like Facebook, Twitter, and my space to communicate with possible strategic alliance partners and build a virtual management and coordination team for its operations worldwide.

W#O#: The company can use the above-mentioned technologies to access strategic partners and alliances in the region of Australia to commence operations on developmental housing for the homeless in the region.

W#O#: celebrity endorsement and public awareness programs using celebrity spokespersons can help generate funds for the operations of the company for the nonprofit provider of housing to the homeless even in the constrained and troubled times of the recession.

W-T Strategies:
(Defend, Withdraw)

W#T#: The company should withdraw from the conflicted regions in Africa and Asia where its operating to avoid a bad reputation. Instead, the company can take a different stance and increase general public awareness of the homeless to support its operations at a later stage.

References

(2002), Giri, A.K., Building in the margins of shacks: the vision and projects of Habitat for Humanity, Orient Blackswan.

(2008), Project Profile: Government Street Build Habitat for Humanity Vancouver, Canada Mortgage And Housing Corporation. Web.

(2004), FY2004 Report: Mission Statement, Habitat for Humanity International Website. Web.

(2009), Habitat at Work, Habitat for Humanity International Website. Web.

(2009), Where Habitat for Humanity Builds  World Wide, Habitat for Humanity International Website. Web.

About Habitat for Humanity, Habitat for Humanity of Greater Jonesboro. Web.

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