Free Essay

Foreign Aid Canada

In:

Submitted By Redwing3139
Words 1368
Pages 6
Future Strategic Direction for Foreign Aid Canada

TO: Foreign Aid Canada's Executive Management Team

From: Pat Innes

Subject: Review of the future direction of Foreign Aid Canada

Executive Summary:

Introduction:

The purpose of this report is to provide a strategic analysis of the alternatives available. The report will also provide a recommendations that will:

• That Foreign Aid Canada (FAC) will able to meet its new mandate of joining the fight against AIDS. • Meet the criteria set out by the CIDA officials • Ensure that Foreign Aid Canada (FAC)

This report will also provide analysis of the company's current situation and present all strategic and operational issues. The report also includes instructions on how to implement the recommendation should the owners adopt the alternative suggested by this report.

Situational Analysis:

Mission Statement:

Foreign Aid Canada provides humanitarian, emergency relief, development assistance through agricultural, water and irrigation projects, and HIV/AIDS prevention and treatment to African and Asian countries in need.

Vision Statement:

Foreign Aid Canada vision is for a world with out unnecessary suffering.

Strategic Goals/Targets:

• Foreign Aid Canada (FAC) wants to ensure that their decision to join the fight against AIDS is done in the most efficient and cost effective way possible while also meeting the requirements set-out by CIDA.

Stakeholder Preferences:

Dr. Barry Green (Executive Director) - Prefers to cut back on some emergency relief and developments projects or cutting back on internet expenses

Wayne Rice (Director AIDS Projects) - Prefers to outsource the administrative functions as he feels the current set-up does not provide adequate tracking for operating efficiencies.

Florence Taylor (Director Government Relations and Fundraising) - Prefers to increase funding through television advertisements.

Peter Lewis (Director) - Cut back on administrative costs instead of projects.

Linda Roberts (Director Finance & Technology) - Prefer to outsource administrative functions

Constraints:

• Project Activities Expenses must be less than 20% • Financial resources are limited • Must treat 3000 to 6000 AIDS patients per year • Projects Activity expenses for treatment must not exceed $700/per patients/per year • Disagreement among Executives on how to fund this new endeavour

KSF:

• Have a solid financial backing from the CIDA who has agreed to fund 75%-90% of the projects expenses • Have recently hired Wayne Rice who has extensive experience in fighting AIDS in South Africa. • Donations from outside sources (Corporations, Individuals) is expected to increase with the new mandate now including the battle against AIDS • Foreign Aid Canada (FAC) has a solid reputation as an effective NPO • The Foreign Aid Canada (FAC) Board of Directors is also backing this new initiative • Loyal employees

Current Financial Analysis

Please refer to Tab# 1 for detailed calculations

• When comparing the current ratio of 2012 (3.5) to 2011(3.64) we see a decreasing amount which indicates a decrease in the ability to pay current debt obligations. • The analysis of the quick rating shows that the while they are able to more then cover their current liabilities we do see a decrease when comparing 2012 (3.5) to 2011 (3.64) • Revenues did decrease from 2011 to 2011 by 6% but expenses also decreased by 6% which shows that FAC is able to adjust its operations based on the amount of donations they receive. • For the years 2011 and 2012 FAC is already below the expenses must be less 20% of total project activities as 2011 was at 16% and 2012 was at 17%. • When comparing FAC with its competitors it has lower admin costs as Canada Helps Inc (CHI) was between 19% and 21% and Catastrophe Aid Canada was at 20% • When reviewing FAC current solvency situation we see a decrease in the amount of revenue vs. total liabilities. For 2011 the ratio was 3.15 and then in 2012 the ratio was 2.9. FAC needs to ensure it will be able to meet its long term debt requirements.

Environmental Scan Analysis

Please see below for SWOT analysis:

Strengths • Backing of Board of Directors • Staff has experience with fighting AIDS in third world countries • Solid Financial backing from CIDA • Low admin costs

Weaknesses • Executives cant agree on what steps should be taken to ensure smooth transition to this new mandate. • Limited Financial Resources • Have constraints imposed on them by CIDA

Opportunities • CIDA has approached them directly about increasing their effort in the fight against AIDS • Other NGO's have discontinued their operations • Donations have increased since FAC announced the will join the fight against AIDS

Threats • The possibility of having to terminate staff members must reduce moral in with remaining work force • Have recently received negative press regarding a project they did in Africa

Identification of the Issues and Alternatives

Major Issues

• Limited financial resources • FAC executives don't agree on what is needed to implement the Board of Directors decision to join the fight against AIDS

Minor Issues

• FAC executives don't agree on where financial cutbacks need to be made. • Need to implement a more efficient and more reliable way to handle financial transactions that occur at the various projects FAC undertakes. •
Possible Alternatives

1. Locally Staffed AIDS Clinic
2. Mobile AIDS Treatment Units
3. Out Sourcing Admin or Support Services
4. Increased Communication Devices while on site at projects

Analysis of Alternatives:

Alternative 1

Locally Staffed AIDS Clinic - Please see tab#2

Pro • Meets Strategic goal of being able to join the battle of the fight against AIDS in a cost effective manner as the cost per patient is well below the CIDA requirement. • Meets the constraint of treating 3000 to 6000 patients a year • Mitigates weakness as donations have increased due to the decision to fight against AIDS • Aligns with the mission statement as it provides humanitarian relief while fighting AIDS

Cons • Is a the more expensive method of treatment • Initial investment is substantial • Requires more time for local governments to take over the responsibilities

Alternative 2

Mobile Units - Please see tab#2

• Was a cheaper option then Alternative 1 • Takes advantage of the less time required to train local workers • Was able to treat the required number of patients (3000-6000) • Meets Strategic goal of being able to join the battle of the fight against AIDS in a cost effective manner as the cost per patient is well below the CIDA requirement.

Cons • doesn't treat as many patients as Alternative 1 • has greater risk for workers as the mobile units will be traveling to more remote regions • Because political agendas are always changing it would be easier for a government to remove the mobile units then it would to remove a brick and mortar clinic.

Alternative 3

Pros • Aligns with the Strategic Goal of being efficient and cost effective • Meets the desire to join the fight against AIDS • The company has promised to meet or exceed service levels • The company has promised to hire back a large percentage of the staff

Cons • Has a high initial investment • Could reduce moral in the office • FAC will lose some control over this area of their company

Recommendation:

Based on the analysis provided above it is recommended that FAC should implement the mobile clinics as it is the cheapest alternative which also allow FAC to maintain its other commitments to other projects it has. Also the ability to transfer it over to the local government sooner then the other alternative means that FAC can look to other areas to continue the fight against AIDS.

Also FAC should consider outsourcing its alimentative tasks as this is in align with the mandate to join the battle against AIDS in a cost effective manner. The outsourcing does have the high initial investment but over the longer term it does provide financial relief for FAC. The company also promises to increase or maintain the current level of service that FAC provides

Implementation Plan

Wayne Rice • Responsible for working with the local government to set-up the mobile units

Florence Taylor • Will work with CIDA to secure funding

Conclusion

Going forward with the recommended alternatives will ensure that FAC will be able to adhere to its mission statement by joining the fight against AIDS in a cost effective manner. FAC has the ability to be a major player in this battle but it must adhere to what has made it a successful company.

Similar Documents

Free Essay

Foreign Aid Canada

...Strategic option for HIV/AIDS operation in Asia and Africa EXECUTIVE SUMMARY: Foreign Aid Canada (FAC) is a charitable organization whose mandate is to provide humanitarian aid in Asian and African Regions through Relief and Development projects. FAC's new mandate includes providing treatments for HIV/AIDS in these regions as of 2013. FAC's Strategic goal is to provide help to 3000-6000 patients in these HIV/AIDS stricken regions, while maintaining a cost of less than $700/patient /year and keeping its Support to Activity Service cost ratio less than 20%. Two alternatives are evaluated. The First alternative is to build 2 AIDS clinics and the second alternative is to operate 4 mobile clinics. It is recommended that FAC accept alternative 2 and operate 4 Mobile clinics. INTRODUCTION The purpose of this report is to analyze FAC's current business situation, evaluate business opportunities and provide recommended course of action. To achieve this, the report will provide a situational analysis, an analysis of alternatives, recommendations on strategic and operational issues and an implementation plan. SITUATIONAL ANALYSIS Mission: FAC's revised mandate is to provide humanitarian emergency relief, development assistance, through agricultural, water, and irrigation projects, and HIV/AIDS prevention and treatment programs in African and Asian countries in need. Strategic Goals: 1. Undertake AIDS project that will treat between 3000-6000 AIDS patients per year...

Words: 888 - Pages: 4

Free Essay

Strategic

...(Alon & Herbert, 2009, p. 127). Alternatively, we can employ a less succinct definition, but one that more or less encompasses a similar wide range of events, as others do (for example, Jakobsen, 2010) – and as this paper does: here, political risk is conceived as those events, actions, processes, or characteristics of a socio-political nature that have the potential to – directly or indirectly – significantly and negatively affect the goals of foreign direct investors. Applying such a broad definition ensures that the concept of political risk embraces a multitude of incidents. Thus, cases of political risk will differ markedly with respect to the actors involved, the particularities of each harmful event, the root sources of investor trouble, and the firms or industries affected. Take, for example, the notorious case of Bolivia. On May 1st 2006, Bolivia‟s left-wing president, Evo Morales, kick-started a process of nationalization of foreign-owned petroleum firms that has continued to this day. 1 This came about after the country, three years earlier, had been rocked by a series of violent riots and demonstrations by ordinary, poor citizens and radical leftist groups alike. The unrest forced the resignation of the nation‟s pro-American president, Gonzalo Sánchez de Lozada. The purported bone of contention was a planned project under which the landlocked country‟s abundant natural-gas reserves were ...

Words: 645 - Pages: 3

Premium Essay

Canadian Involvement in Vietnam War

...Canadian Involvement in the Vietnam War; Playing Both Sides. Although Canada “officially non-belligerent” in the war against Vietnam they were active and played a huge role for and against the war. It is a common belief that Canada’s position during the Vietnam War was strictly neutral but the government was more involved than many Canadians realize. The Canadian government aided the U.S by sending Medical equipment, providing technical assistance as well as diplomatic aid. In 1981, it was discovered that Canada had been secretly involved in testing U.S chemical warfare agents for Vietnam. The Canadian government also welcomed about 30,000 American war resisters and draft-dodgers who did not support the war across the Canadian borders; at the same time about 30,000 Canadians crossed the border to volunteer to help the U.S soldiers fight in Vietnam. Scholars like Jessica Squires spoke on The Canadian Anti-Draft Movement, which “was a network of groups in Canadian cities that actively supported the immigration of War resisters”. This Network was active from 1966-1973 and its activities were seen as a sort of resistance to the American War on Vietnam. At this time in the early 1970s there had been protests and demonstrations in Canada and various parts of the world, which denounced the war on Vietnam and the actions if the U.S Government and this Anti-Draft Movement was one of the ways Canadians were able to influence or oppose the Vietnam War. In 1966, Hans...

Words: 1733 - Pages: 7

Premium Essay

Summary: Why Did The US Oppose Allende's Democraticly Elected Government

...because it left the Nixon administration with two options to maintain bilateral relations with Latin America. He could either give more economic aid or assist the authoritarian governments. 2. Why did the US oppose Allende's democratically elected government? How responsible was the US for its overthrow? Allende sought to improve the living standards of his nation by decreasing the influence of large land owners and US multinational corporations. As a result, the US copper mining companies and the International Telephone and Telegraph feared that they would lose more under his power. Also, Nixon feared that if Chile...

Words: 903 - Pages: 4

Free Essay

Equal Economic Opportunity of Canadian Immigrants

...Introduction Canada boasts about being a multi-cultural mosaic, a land of opportunity, with a vision to build “a stronger Canada – a safe and secure country with a shared bond of citizenship and values; a country that continues to support our humanitarian tradition and draws the best from the world to help build a nation that is economically, socially and culturally prosperous” (Government of Canada, 2011). Yet a look at the income statistics for Canadian immigrants makes one wonder whom is prospering economically. Are Canadian immigrants given equal economic opportunity when they arrive here, or are they subject to economic inequality? To answer this question, one can first look at earnings statistics and reports from Statistics Canada. This information can provide basic earnings information on immigrants, which will show how much Canadian immigrants earn in comparison to their native Canadian counterparts. A few drawbacks of using this information are that the statistics haven’t been updated since 2006, so the numbers may not be completely accurate, and numbers alone do not tell the whole story. As such, peer reviewed research articles and papers on the subject of economic inequality in Canadian immigrants can be used. These articles and papers provide both qualitative and quantitative information that paints a clearer picture of the situation. However, many of these papers are usually biased towards writer’s point-of-view, so there may be a lack of complete information...

Words: 2641 - Pages: 11

Premium Essay

Canadian Mining Companies

...However, African nations have not met the potential economy growth that they could. Canadian companies need to help African companies benefit from their resources by generating equal profits between Canada and the nations they companies are being based in. As stated above many Canadian companies are violating environmental laws and producing unhealthy environments for the citizens of the African nations. That is way I suggested that the Canadian government should make sure environmental rights are met here and overseas, and that there are consequences for companies that are violating these policies. The aids coming from Canada need to be regulated and in order for that to happen Bill-300 needs to be passed. Bill C-300 will be used to guarantee companies are not violating the laws and that if they are they will be criminalized to the fullest extent of the law. By publishing the violations, it will help make sure violations are not happening as they will negatively affect the company’s profits. Additionally, the government must send out human and environmental rights activists to help regulate the Canadian mining companies in Africa. Justin Trudeau has...

Words: 2092 - Pages: 9

Premium Essay

Finance

...THE BALANCE OF PAYMENTS ALWAYS BALANCES Economic Concepts Balance of payments Capital account Current account Financial assets Trade deficit Trade surplus Content Standards Standard 5: Students will understand that: Voluntary exchange occurs only when all participating parties expect to gain. This is true for trade among individuals or organizations within a nation, and among individuals or organizations in different nations. • Students will be able to use this knowledge to: Negotiate exchanges and identify the gains to themselves and others. Compare the benefits and costs of policies that alter trade barriers between nations, such as tariffs and quotas. Benchmarks, Grade 12: At the completion of grade 12, students will know • A nation pays for its imports with its exports. Lesson Overview Balance of payments accounting is an often misused and misunderstood tool for keeping track of our economy’s flow of imports and exports. While the data, itself, is neutral, it is sometimes reported in ominous tones, especially when the numbers total up to a deficit in the merchandise account. As students learn more about trade, they appreciate that a trade deficit is not necessarily bad any more than a trade surplus is necessarily good. This lesson reinforces their appreciation of that reality by identifying the components of the balance of trade. Learning about the flow of financial assets captured in the...

Words: 2272 - Pages: 10

Premium Essay

Canada Climate Negotiation

...Canada Climate Treaty Negotiation Kamilah, Gage, & Angelina Some Information about Canada How would certain climate change measures (limiting emissions, reducing or eliminating fossil fuel use, etc…) affect Canada? Large portions of forest are destroyed by wildfires that are caused by droughts. Limiting the emissions and trying to reduce fossil fuels will help stop the droughts. Regarding energy, Canada has huge coal deposits throughout which would probably have to be limited. However, they have a backup that they already have in play. Most of Canada’s energy comes from the renewable resource hydro-electricity. Hydro plants can be found in every province but one. Canada also has the third largest oil patch in the world and much of the country’s...

Words: 1473 - Pages: 6

Premium Essay

How Does Economic Influence Canadian Media

...concept where the cost and production of a product decreases in a larger market, such as the United States – Canadian media purchases and airs more foreign (often American) programming than Canadian programming (Gasher, Skinner & Lorimer 34). Also, the cheaper American programming is preferred by Canadians and it attracts more audiences for advertisement revenue. In Canada, the media is heavily dependant on advertising. Advertising connects consumers to products and, primarily, is the chief source of income for the production and distribution...

Words: 838 - Pages: 4

Premium Essay

Multiculturalism

...multiculturalism. What are the advantages and disadvantages of officially promoting multiculturalism? 4. Outline the arguments for and against the policy of multiculturalism. What are the advantages and disadvantages of officially promoting multiculturalism? Background Multiculturalism in Canada is the ideology that all people have equal opportunities and rights regardless of their races, religions and, cultural backgrounds. The Canadian government during the 1970s and 1980s adopted the official policy of multiculturalism in Canada. It originated from the 1960s Royal Commission on Bilingualism and Biculturalism. In 1971, Prime Minister Pierre Elliott Trudeau declared that the country would adopt multicultural policy. In 1982, multiculturalism was recognized by section 27 of the Canadian Charter of Rights and Freedoms. Canadian Multiculturalism Act was then passed by Prime Minister Brain Mulroney in 1988. The Act has two fundamental principles: all citizens have equal rights and it promotes all communities of different origins. (Kobayashi, 1983) Benefits of Multiculturalism policy in Canada Economic Benefits Multiculturalism helps integrate visible minorities into the labour market. Canada has experienced more participation of members of minority groups in different business sectors, such as transportation, communications, and banking. The increased participation is the result of the government's effort of providing a number of programs to ensure equality in the workplace...

Words: 1045 - Pages: 5

Premium Essay

Foreign Aid In Ethiopia

...Now a day’s most of foreign aid to Ethiopia comes from the western countries and other multilateral organizations. Comparatively the total flow of foreign aid has increased under the current regime due to changes in policies which meet the interests of donors, and adoption of a market-oriented economic system. Since the policy change by the present regime the magnitude of aid has increased continuously. Following the change of government in 1991 and the adoption of the structural adjustment program in 1992 in particular, the country has received a significant amount of aid. A large inflow of concessionary loans and grants has occurred since 2001, following the issuance of the first poverty reduction strategy paper (known as the Sustainable...

Words: 1518 - Pages: 7

Premium Essay

Foreign Currency & the Economy

...Foreign Currency & The Economy Author: Ashish Ghangrekar Abstract: This paper attempts to discuss about the relation between Foreign Currency & the Economy. The paper develops the correlation between foreign currency & the economy. It further goes on to discuss the various parameters that affect this correlation. Finally, a few hypotheses drawn from the discussion are presented at the end of the paper. Introduction: Foreign Exchange & foreign currency is the elastic link between various independent political states. The Central Bank of a country frames the monetary policy to maintain a desirable Foreign exchange rate & regulate the flow of foreign currency in an economy. Now let us understand the correlation & interplay between foreign currency & the various economic parameters. In a floating regime of exchange rates, the interest rates in the country are adjusted so as to vary its real exchange rates & also as a measure to control inflation. Therefore a developing capitalist country will have its Central Bank adopt the policy of keeping its interest rate as low as possible. This will enable the entrepreneurs & the various economic actors to obtain capital at a cheaper rate. It will also help to maintain a low real exchange rate & hence boost domestic exports. Growing exports will see a positive trade balance or a Current Account Surplus. With a current account surplus the country can make strategic investments in the foreign markets or acquire factories. This will result...

Words: 2281 - Pages: 10

Premium Essay

Financial Analysis Costco Wholesale Corporation

...warehouses that provide an assortment of exclusive and secluded label products in a variety of stock categories in no-frills, self-service warehouse facilities. The organizations product categories include candy, snack foods, tobacco, alcoholic and non-alcoholic beverages, and cleaning and institutional supplies; appliances, electronics, health and beauty aids, hardware, office supplies, garden and patio, sporting goods, furniture, and automotive supplies; dry and institutionally packaged foods; apparel, domestics, jewelry, housewares, media, home furnishings, cameras, and small appliances; meat, bakery, deli, and produce; and gas stations, pharmacy, food court, optical, one-hour photo, hearing aid, and travel. It offers Business and Gold Star (individual) memberships. As of October 8, 2009, the corporation operated a chain of 560 warehouses encompassing 407 in 40 states and Puerto Rico, 77 in Canada, 21 in the United Kingdom, 7 in Korea, 6 in Taiwan, and 9 in Japan, as well as 32 warehouses in Mexico and 1 in Australia. Costco Wholesale Corporation also propositions its products through costco.com in the U.S. and through costco.ca in Canada. It has a strategic alliance with Valdez Heli-Camps. The company, formerly known as Costco Companies, Inc., was founded in 1976 and is based in Issaquah, Washington. The company’s premier membership is the executive membership which allows its members the opportunity to purchase a selection of reduced consumer services such as identity protection...

Words: 1836 - Pages: 8

Premium Essay

Mini Case 12.1q2: International Business

...success in Latin America and Canada was due to the fact that they could respond quickly to cultural errors such as creating a large parking lot in Mexico’s Wal-Mart when many customers used the bus. This was solved by creating bus shuttles to make customers’ travels across the parking lot easier. They were “easy to address” mistakes. It also changed its competitive emphasis to customer service and providing more variety in its stores than the competitors. They also bought other local stores for pursuit of internal growth. Wal-Mart also quickly learned that when expanding internationally sometimes it does not work in your favor to “stick so closely to the domestic Wal-Mart blueprint…”Latin American Wal-Marts also had large success because they were large developing nations where market entry was easier. Although Canada was a more matured nation than those of Latin America, Wal-Mart still thrived there and bought 122 Woolco stores and transition teams were also brought in from the U.S. to aid the transformation. Entry was the hardest in Europe. Although Wal-Mart took a similar approach as they had in Canada ( by acquiring 95 chain stores in Germany and 229 stores in the United Kingdom), but the market was very advanced and competitive. This was true especially in Germany. Wal-Mart had a limited European infrastructure with too many U.S. employees who didn’t speak German. Wal-Mart’s well-known inventory and systematic specialties were also foreign to suppliers. Also, German customers...

Words: 496 - Pages: 2

Premium Essay

Business

...Export Development Canada (EDC) Photo: EDC, About Exporting Export Development Canada (EDC) is a Canadian agency that provide export credit and export trade to Canadian entrepreneur for international business. It is a crown corporation that gets collaboration from the Government of Canada. EDC provides insurance and financial services, bond products and small business solutions to Canadian exporters including their international buyers. EDC also supports abroad and investors into Canada. EDC provide financing solutions, with a wide range of government programs that aim to help Canadian entrepreneurs. These government programs provide grants, loans or other financial assistance and information are available to Canadian region and industry. 1. The Canadian government does a lot to facilitate international trade. EDC and DFAIT encourage Canadian companies to get involved in trade. They fill a number of different roles in this effort. Describe what EDC and DFAIT do (provide 2 examples for each of them) to promote and encourage international trade. EDC supporting Canadian in the World. Photo: EDC, Support Business Worldwide EDC Contribution to Encourage Trade: * Export Development Canada (EDC) has facilitated over $20 billion to Canadian exports in Brazil for more than one decade. In 2000 EDC serve 169 companies, and increase the number of companies to 338. The business volume is $2.1 billion. Also, EDC insured 861 international buyers. The Canadian Trade Commissioner...

Words: 1150 - Pages: 5