One Of The Greatest Challenges Finance Essay - Free Essay Example

Sample details Pages: 6 Words: 1908 Downloads: 1 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? One of the greatest challenges in this study was the availability of data for the SADC member countries. To efficiently model the effect that the stock market has on a countrys growth one would ideally need to have both a long time-series as well as sufficient cross- sections of data. However, the SADC region presents difficulties in that many of the regions exchanges were only recently established, and offer very little time-series data (Allen and Ndikumana, 2000:140). Don’t waste time! Our writers will create an original "One Of The Greatest Challenges Finance Essay" essay for you Create order In what follows, section 4.1 presents the data used for the stock market development and economic growth nexus. Section 4.2 discusses the empirical method, that is, the econometric methodology, while section 4.3 presents concluding remarks. The primary data source for this study is the World Banks World Development Indicators. By being able to draw data from a single source we overcome the consistency and measurement problems associated with Levine and Zervoss (1998) use of two different data source. Also, we include several measures of stock market development (as opposed to a single composite measure used by Levine and Zervos). This more disaggregated approach is also recommended by Demirguc-Kunt and Levine (1996). Nine out of the ten SADC countries with stock exchanges have the relevant data. As such, data was obtained for the following countries: Botswana, Mauritius, Malawi, Namibia, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe. Mozambique was excluded from the regression sample due to a lack of data. The analysis covers the period from 1980 to 2011. This was grouped into eight data points based on averages of the following sub periods: 1980-1983, 1984-1987, 1988-1991, 1992-1995, 1996-1999, 2000-2003, 2004 -2007 and 2008-2011. All the sub period have four observations, which were in turn averaged to obtain the data for each sub period. However, because many of these exchanges were only recently established, many gaps were found within the data. Where less than four observations exist for a period, the available observations were averaged to obtain the data for the period. For instance, in a country if two observations were found for a sub period say 1992-1995, the average of the two is used for that period. But if only one observation is available, the only observation is used for the period. Thus, following this process we obtained a panel data of four data points for each country. This study will focus on the stock market development and growth nexus, using the real GDP growth rate as a proxy for economic growth and stock market capitalization as a percentage of GDP as a proxy for stock market development. The other variables used in the model are described as follows: GDP Growth Rate (GDP) GDP growth rate is the annual percentage growth rate of GDP at market prices based on constant local currency. It is used as the dependent variable as a proxy for economic growth. It is expected that as the stock market develops it will have a positive effect on economic growth (Mohtadi and Agarwal, 2000:9). It is expected that as the economy grows, it will produce a positive effect on the size of the stock market and as such it is also expected that the stock market will also grow (Naceur et al., 2007:482). In addition, the growth of an economy should create new demand for financial services while also offering a better business environment, thus prompting the growth of the stock market and hence a positive effect on stock market development is expected (Yartey, 2008:15). Market Capitalization Ratio (MCR) This is calculated by summing the value of all listed shares and dividing by GDP. It is assumed that the overall market size is positively correlated with the ability to mobilize capital and diversify risk on an economy-wide basis (Agarwal, 2000:50). The MCR is used as an explanatory variable. Here it is expected to have a positive effect on economic growth. Liquidity When analyzing stock market liquidity, two different indicators were used. These are: Total Value of Shares Traded Ratio (VTR): This variable equals the value of shares traded on the exchange divided by GDP (Mohtadi and Agarwal, 2000:6). This ratio is used to measure the value of equity transactions relative to the size of an economy, and as such should positively reflect liquidity on an economy-wide basis. The total value traded ratio complements the market capitalization ratio: although a market may be large, there may be little trading. We expect a positive relationship between the values of shares traded ratio and economic growth. Turnover Ratio (TR): This variable equals the value of total shares traded divided by market capitalization. That is to say it measures the value of equity transactions relative to the size of the stock market (Mohtadi and Agarwal, 2000:7). Although the turnover ratio is a measure of liquidity, high turnover may also indicate the presence of low transaction costs. The turnover ratio complements the market capitalization ratio. A large but inactive market will have a large market capitalization ratio but a small turnover ratio. Turnover also complements the total value traded ratio. While the total value traded ratio captures trading relative to the size of the economy, turnover measures trading relative to the size of the stock market. A small liquid market will have a high turnover ratio but a small total value traded ratio. As such liquid stock markets allow investors to change their financial positions relatively quickly and cheaply, while also facilitating investment projects and making them less risky (Levine, 1991:1447). Hence we expect the turnover ratio to have a positive influence in the model. Macroeconomic Instability Inflation refers to the persistent rise in the general price level of goods and services in an economy over a certain period of time. In an effort to take into account any macroeconomic instability and its effects on both economic growth and stock market development, the change in price level is used as an explanatory variable. It is expected that the higher the inflation variable, the less incentive investors or companies would have in investing in the stock market, and thus negatively affecting economic growth (Garcia and Liu, 1999:43). However, it has been noted that stock markets also provide some form of a hedge against inflation and hence one may expect a positive relationship between stock market development and inflation (Yartey, 2008:16). Therefore, it is not impossible to expect stock markets in countries with volatile macroeconomic conditions to also have volatile equity indexes and hence market capitalization (Garcia and Liu, 1999:43). Investment Gross capital formation (formerly gross domestic investment) consists of outlays on additions to the fixed assets of the economy plus net changes in the level of inventories. Gross capital formation as a percentage of GDP is used in this study as a proxy for the investment rate, and it is used as an explanatory variable because it is believed that the investment rate plays an important role in economic growth (Agarwal, 2000:51). Furthermore, since stock markets are in retrospect financial intermediaries that intermediate savings to investment projects, it is logical to expect that the investment rate will be an important determinant of stock market development. As such, we expect the investment rate to have a positive impact in the model (Yartey, 2008:16). Financial Intermediary Development As both banks and stock markets intermediate savings towards investment, they can either be seen as substitutes or complements. Numerous authors including that of Boyd and Smith (1996) and Demirguc-Kunt and Levine (1996) have addressed this issue, with the vast majority concluding that they are generally seen as complements rather than substitutes and grow simultaneously (Garcia and Liu, 1999:40). In this study we use two indicators of financial intermediary development. The first one is the private credit by deposit money banks to GDP, or simply the credit to the private sector. It refers to financial resources provided to the private sector, such as through loans, purchases of nonequity securities, and trade credits and other accounts receivable that establish a claim for repayment. It has been empirically shown by Demirguc-Kunt and Levine (1996) that stock market development and bank development are positively correlated. Secondly, liquid liabilities to GDP are used to show the ef fect the financial sector has on both growth and stock market development. Liquid liabilities are also known as M3. Liquid liabilities consist of demand deposits and interest bearing liabilities and non-bank financial intermediaries, and have been shown to have a positive impact on both economic growth and stock market development, thus we expect the same relationship to prevail (Garcia and Liu, 1999:41). 4.2 EMPIRICAL METHOD A panel data approach is employed in this study that covers nine countries within the SADC region. Specifically, the study uses a fixed effects panel data model. The fixed effects approach is relatively simple and is defined according to the following regression: Yit = i + Xit + it, i = 1, ,N; t = 1, ,Ti .. (4.1) Where Yit is the dependent variable, Xit is the vector of k explanatory variables, and i, i =1 N, are the constant coefficients that are specific to individual countries. Therefore, it is assumed that their presence allows for differences across the countries under study via any variations in these constant terms. These individual country coefficients are estimated together with the vector of slope coefficients (Naceur et al., 2007:483). Hsiao (1986) also suggested that in the scenario whereby there are some individual attributes which have been omitted and which are correlated with the other variables in the model, the fixed effects model produced unbiased estimates. As such, a panel data approach generally offers greater flexibility in the specification of the model rather than other single cross- country regressions, and hence will reduce misspecification of the model. Next we look at the model separately. 4.2.1 Model This model examines the stock market development and economic growth nexus directly. In this analysis, three regressions were estimated under different specifications in terms of their weightings. These are as follows: Yit = i + 1LMCRit+ 2INFit + 3LGCFit + 4LPCit + 5LLLit + 6GDPit-1 + it .. (4.2) Yit = i + 1LVTRit+ 2INFit + 3LGCFit + 4LPCit + 5LLLit + 6GDPit-1 + it .. (4.3) Yit = i + 1LTRit+ 2INFit + 3LGCFit + 4LPCit + 5LLLit + 6GDPit-1 + it .. (4.4) Where Y is the real per capita GDP growth rate set as a proxy for economic growth, LMCR is the market capitalization ratio, LVTR is the total value of shares traded ratio, and LTR is the turnover ratio. These ratios were run individually in the regressions, while also including other control variables that may have an impact on economic growth. Specifically, the control variables included are: the rate of inflation change (INF), the log of gross capital formation (LGCF) which was used as a proxy for the investment rate, two indicators of financial intermediary development (LPC and LLL), and while also including the lag of GDP. Furthermore, these regressions were estimated under both cross-section weights and period weights to allow for country specific heteroskedasticity and period heteroskedasticity (Eviews manual, 2008:543). 4.3 CONCLUSION This chapter discusses the data and the empirical model used for the analysis. The analysis cover the period 1980-2011 which was further divided into eight sub periods: 1980-1983,1984-1987, 1988-1991,1992-1995,1996-1999, 2000-2003, 2004-2007,2008-2011. The average of each sub periods was then obtained in order to obtain the data point for each period. The chapter further specifies the model and describes the econometric techniques used for the estimation, namely a fixed effects panel data approach. The model focuses on the relationship between stock market development and growth.

The Invention Of The Camera - 1278 Words

Photography has changed a lot since the invention of the camera. New techniques are developed as technology advances. There is also trends and styles that influence photography and its different aspects. Portraiture is perhaps one of the most seen types of photography that has been there since the beginning of the camera. Of course, portraits were first oil paintings that were used to portray a person, but photography has taken over and improved, in a way, these representations. Portraits tell us a lot about the subject in the picture and photography has made this easier and clearer with time. At first glance a portrait can be seen as just a picture of a person, but when taking the time to analyze the image we can discover many clues of the person’s identity. Portraits in history have been mainly used to represent people of power or those who had the money to have themselves painted by an artist. But we can now see this has changed. 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TerraCog Free Essays

Terracotta management failed to respond to competition in its market. Although competitor introduced a new GAPS with satellite imagery to the market, Terracotta team dismissed the threat and decided not to take a responsive action. However, quickly the new GAPS succeed and gained a significant market share. We will write a custom essay sample on TerraCog or any similar topic only for you Order Now Eventually, Terracotta president decided to pursue a development of a directly competing product, and named the project Aerial. Unfortunately, the projected high costs of this project questioned its profitability and doubt its wisdom. The key managers of the company were not able to decide whether to execute the project or not, and Emma Richardson, the new executive vice-president, needed to push the group toward a decision. The analysis we have done indicates that Terracotta case is an outcome of two major problems. The first problem is the existence of a poor decision making process, and the second is the lack of departmental cooperation and harmony. Alternative Courses of Action: We believe that Richardson should postpone the launch of Aerial, and focus on creating a more efficient decision making process and increasing departmental cooperation. Since time is crucial in this case, we see a need to decrease the time of decision making process and re-defining communication channels between the departments. We also argue that the size of this team as well as the fact that the teammates came from four different departments created complex communication channels that slowed down decision making. In this case, small groups can undertake better the urgent tasks. Hence, we think that Richardson should break the complex process of launching a new product into micro-processes. We believe that by brainstorming with the heads of every department separately, defining criteria and performance tankards, and listening to each team’s requirements and reservations, Richardson will be able to clarify for the teams their importance to the company and motivate them to act toward the company’s goal. Commitment to a common goal is more easily achieved if the number of team members is small (Essentials for an Effective Team, To keep the work on track and to increase departmental cooperation, 2006). Richardson should conduct update meetings every other week with all the departments’ heads. The agenda of these wide department meetings should be clear and exclude decisions making. The different decisions should be made within smaller groups that include only the relevant teams. To increase harmony among the departments, Richardson can open department wide meetings with a short speech about similar past experiences of the company to remind the teams how they worked well together and performed successfully when they cooperated. Recalling past experiences may increase sense of belonging and help to put the big picture in mind before discussing current issues. Moreover, Richardson can invite the teams’ mangers to have lunch together before department wide meetings. Socializing with each other right before getting to business can cool things down, ease the tension, and increase departmental cooperation. We believe that if the heads of the different departments will understand the importance and the needs of other departments, working together will become easier and more efficient. Another way to increase departmental cooperation is by sharing information on the processes each department went through. For example, while discussing the price of a new product, Tony could provide specific details regarding production’s costs to explain why further lowering of costs is impossible. While this alternative might be time consuming, sharing information can help the teams to understand better the different points of view of the different departments. Recommended Course of Action: We believe that a combination of the alternatives above would be the best way to address the situation in this case. First, we recommend postponing the launch of the current prototype. Launching Aerial on its current form will damage the company’s reputation and can lead the company to a big loss. We assume that if Aerial wont provide its users a significant advantage, customers wouldn’t pay more than the Bird’s price to buy it. Second, in order to accelerate the decision making process, Richardson should redesign the current communication channels in the company. Decisions need to be made in smaller teams, and wide department meetings need to be designated for updates only. Third, to increase departmental cooperation and harmony, Richardson should establish a process of sharing information between the departments. Furthermore, structuring time for socializing can ease the stress and increase harmony among the departments. We believe that this alternative course of action will lead to minimum damage in Terracotta position, ND allow the company to improve its productivity and ability to respond faster to competition in the future. Implementation: First, Richardson should invite all the people who were present in the last two meetings to announce her decision. This meeting should be friendly and short, and most important, clear and motivating. Richardson should open the meeting with demonstrating an appreciation for the hard work done by all the departments. Then, the announcement of her decision to postpone the launch of Aerial should be followed by a short explanation about the upcoming changes: From now on, once a week, every department should email a rife description of the progress they made at the past week to the entire company. This weekly update emails will enable an efficient way to share information between the departments. In addition, wide department meetings will take place every other week, and once a month these meetings will include a friendly lunch prior to the meeting. After the meeting, Richardson should meet with the heads of design and development department. In this meeting, they need to agree and define the requirements to develop a product that is superior to the Birds, on minimum costs and time, and draw a realistic schedule to move forward. Now, when the new product is in its first stages of creation, and there is a general idea of what specifications and characteristics it will have, as well as an expected time for launching, Richardson should meet with the UP of Sales, to create marketing plan for the new product. The production team will work alone on costs estimating for the new product, and the sales team in consultation with finance department will determine a pricing and develop a â€Å"go- to market† plan. Moreover, Richardson should set clear limits to the continuance of commitment to the project for every department. Determining what criteria and performance standards Justify continued investment in the project can help the team avoid escalation of commitment (Team Decision Making Pitfalls and Solutions, n. D). Whenever disagreements on to what level the teams should commit to a specific task will arose, they could refer to the performance’s standards and make a decision accordingly. The process will be managed by Richardson from the top, and the heads of every department will make decisions that are relevant to their departments’ areas of knowledge and responsibility, and report to Richardson, who ill manage the whole process. How to cite TerraCog, Papers

Strategic Management and Planning Nonprofit Organization †Free Sampl

Question: Disuss about the Strategic Management Nonprofit Organization. Answer: Introduction A not-for-profit or nonprofit organization refers to one which does not earn profits for its owners (Bahnson, McAllister Miller, 2008). This is to say that all the money earned by or donated to the organization is utilized in pursuance of the organizations goals and keeping it functional. Not-for-profit organizations are generally charities or other forms of public service organizations. Notably, for an organization to be considered as a not-for-profit, it must further scientific, charitable, educational, public safety, cruelty prevention, literary, or religious purposes or causes (Amit Zott, 2012). It is quite unfortunate to learn that many individuals who are not involved with nonprofit organizations do not acknowledge the significance of such organizations to the total operation of a countrys economy. To many, these organizations are simply little entities that exist in their own separated corner of the economy. Not-for-profits tend to serve one major purpose which is to better the world while zeroing out their books (Bahnson, McAllister Miller, 2008). They are considered a reliable source of employment despite what some people might believe. Recent statistics indicated that an estimated 10 million individuals were employed in the nonprofit industry in 2010, this being about 10% of the overall employment in America. By providing workers with a stable source of income, nonprofit organizations, similar to for-profit ones, indirectly motivate continuous other facets of a nations economy (Wing, 2010). Brief economic impact research shows the vital value of not-for-profits in any given economy. The employment offered helps in sustaining the economy in a similar manner as for-profit organizations would. Even though nonprofits tend to have distinct missions, they all share similar overall purpose. Notably, they allow individuals to collaborate and join resources so as to attain common objectives and goals. One of the main reasons why people start not-for-profits is to work on social issues or react to the various needs in their communities (Fleishman, 2009). Background to the Situation Recently, the wife of Bill Gates, Microsoft founder attended a Conference where various aid delivery, information technology, education and engineering companies presented their products which would be utilized in the growth of infrastructure in developing nations. Melissa Gates and Pricilla Chan, wife of Chan Zuckerberg, were particularly interested in the stabilization of developing areas and enablement of Project Loon as a technique of advancing these nations and spreading knowledge (Cordes Steuerle, 2009). Following this Conference, Bill and Melinda Gates Foundation, and the Chan Zuckerberg Initiative are in need of strategic advice for the establishment of a permanent aid delivery corporation. Before venturing on this particular business, a number of considerations need to be looked at, and create an organization that is able to meet the current Chan directive and any future requirements in illness and flood stricken regions, or areas that are disadvantaged by years of economic denial or warfare. Some of these considerations include having a mission statement, what type of corporation it will be, the fiscal sponsorship that will jump start the corporation, the name, and who will do the work in terms of autonomous contractors, volunteers, and employees. The corporation that has been proposed will be named the StratSynth Group and will be funded by the Giving Pledge. Its main mission will be to enable the acquisition, delivery and operation of essential life support items (Acton, Fagan Mamano, 2012). Additionally, its initial goal will be to address the East African Drought Crisis, publicly. As indicated, the main concentration of the corporation will be toward the establis hment of long term recovery and rehabilitation for stricken countries. To determine the success of this newly established corporation, it is important to look at the various internal and external factors that are bound to influence or affect the organizations performance. These factors include political, environmental, technological, and legal factors. Porters five forces analysis will also be looked at in relation to this particular venture. PESTEL Analysis describing the business landscape upon which StratSynth will operate Political factors It is important to consider the impact that political factors may have on future corporations profitability as social welfare policies, government stability, international trade regulations, and taxation policies may contribute greatly to the organizations profits (Baligh, 2011). For nonprofit organizations such as StratSynth that will provide community growth services in developing nations, government stability is a main issue to consider in the continuous provision of future services. Taxation policies, on the other hand, may have a positive or negative impact on the possibility of donors regularly donating and on the corporation gaining new donors. Economic factors These factors can have a huge impact on the need for services or donations business cycles. Moreover, money supply, inflation and cost of living, GNP trends, disposable income levels, and unemployment trends are quite relevant in assessing economic factors likely to impact a not-for-profit organization (Bahnson, McAllister Miller, 2008). For instance, a reduction in disposable income would mean a reduction in memberships and donations. With regards to StratSynth, increased unemployment rates may result in increased need for aid. The organization may also need to research increased funding which may be rather hard to obtain. Socioeconomic factors Keeping in mind StratSynth is a corporation that will be based in East Africa, social mobility, population demographics, consumerism, levels of education, lifestyle transformations, and attitudes towards leisure and work are some of the socioeconomic factors that may influence the macro-environment that StratSynth will operate (Amit Zott, 2012). It should be noted that such impact tends to differ in each nonprofit organization. Technological factors Government spending on study, novel discoveries, the focus on technological effort, rates of obsolescence, and speed of transfer are some of the technological factors that may affect StratSynth (Wing, 2010). For this particular organization, it may mean that new techniques of attracting donors, advocators, and volunteers need to be found via the use of social media such as Facebook and Twitter. It will also mean providing adequate training to its staff to ensure competence in handling technology. StratSynth needs to investigate the impact that technology will have on its operations, and conduct an assessment of the current technology items owned by the corporation. Environmental factors Developing nations tend to experience various hardships in terms of the environment, for instance pollution and wastemanagement issues. StratSynth needs to be aware of the fact that environmental protection laws, energy consumption and waste disposal are at the core of the factors to be considered when evaluating the business environment (Fleishman, 2009). Legal factors It is quite possible for one or two individuals to sue the organization. Therefore, StratSynth should consider possible court cases that may impact it, tax laws, and proposed laws (Cordes Steuerle, 2009). The corporation should also note that laws in the developing nations might be slightly different from those of the developed world. Five Forces Analysis of the likely competitors to StratSynth In his Five Forces model, Michael Porter cites that competition is not about which organization is the biggest, but rather, who is the most profitable. This model has been quite relevant for profitable organizations and that is why most people do not see its relevance in nonprofits. With regards to the bargaining power of service providers, they tend to gain more authority as their services become core to the organizations vision and mission (Acton, Fagan Mamano, 2012). The buyers or grantmakers in this case, are considered to be the social impact provided by StratSynth. If they are able to get a superior product from a competing corporation, they will eventually purchase their vision or mission instead. Referring to the competitive rivalry, it is interesting to note that there are about 1.5 million nonprofits in America today (Baligh, 2011). There are also various organizations in East Africa providing similar service to the needy population. That is why StratSynth must establish an effective leadership that understands the competition or gap in this particular market. Threat of substitution refers to how likely a grantmaker or community member will shift to StratSynths competitor. If shifting costs are lower and similar corporations exist in East Africa, then StratSynth may be facing a grim threat of substitution. Given the presence of donor loyalty or high fixed costs, the threat of novel entrants can be restricted (Bahnson, McAllister Miller, 2008). However, if the demand for StratSynths service is high and fixed costs are low, it may be successful in entering the East African market. The business level resources and capabilities required for the StratSynth mission Gates and Chan need to note that a not-for-profit organization tends to lack the fiscal flexibility of a commercial organization given that it relies on resource providers that are not participating in an exchange transaction (Amit Zott, 2012). These providers are oriented towards provision of services or goods to a client other than the real resource provider. Cashmanagement and budgeting will be the two main areas of fiscalmanagement that will be significant to this particular organization. Gates and Chan need to note that it is often quite hard to remain focused on the organizations mission to assist in solving social ills, as short term fiscal considerations of budget balancing and fundraising might take focus away from attaining the corporations mission. Five organizations with the resources and capabilities with which StratSynth may engage using Corporate Level Strategies Corporate level strategies are all about the choosing andmanagement of a combination of businesses which are competing in various product markets or industries (Wing, 2010). A corporate level strategy is significant in that without it, it is impossible for any given organization to have long term plan or technique to attain goals or objectives. Having a corporate level strategy would mean StratSynth concentrating multiple resources on a specific goal. Additionally, for the organization to succeed in its endeavors, it needs to consider the inclusion of other organizations with similar goals and which have also successfully implemented their strategies. Five organizations with capabilities and resources with which StratSynth may engage are Africare, The Carter Center, Oxfam International, The Rockefeller Foundation, and the Catholic Medical Mission Board. Africare is concerned with helping Africans in areas such as environmental health, water, private sector development, emergency humanitarian assistance, and food (Fleishman, 2009). The Carter Center is committed to human rights and the mitigation of peoples suffering. This organization aims at preventing and resolving disagreements, improving health, and encouraging liberty and democracy. Oxfam International is committed to establishing long term solutions to poverty, hunger, and social injustice through lasting partnerships with poverty stricken communities across the globe (Cordes Steuerle, 2009). On the other hand, the Rockefeller Foundation is a worldwide organization focused on enriching and sustaining the livelihoods and lives of the poor and neglected individuals across the globe. Catholic Medical Mission Board would be quite handy for StratSynth in that it is an organization providing medical supplies and medicines free of charge to partner organizations internationally (Act on, Fagan Mamano, 2012). It also delivers medical supplies to individuals residing in poverty stricken conditions and those who do not have any hope of receiving even the basic medical care. All these organizations would be very helpful to the proposed nonprofit given their missions and objectives. For Africare and The Carter Center, a joint venture would be the most appropriate strategy for StratSynth. Implementation of equity alliance would be suitable for the Rockefeller Foundation, and Oxfam International, where the nonprofit will enjoy equal benefits and services provided. On the other hand, the recommended implementation strategy for the Catholic Medical Mission Board would be the nonequity alliance (Baligh, 2011). Melinda Gates interests in the firms producing the Pouncer Drone, the Spider Light Strike Vehicle and the Rokon two wheel drive motorcycle, and advice on whether these firms should be included in the cooperative strategic relationships The firms that Melinda Gates is interested in should be incorporated in the cooperative strategic relationships as they will guarantee speedy delivery of the services the organization is offering. Furthermore, the drought affected regions in East Africa do not have sufficient or effective means of transportation. This means that relief food rarely reaches this needy population. However, by adapting the firms manufacturing the Spider Light Strike Vehicle, the Rokon two wheel drive motocycle, and Pouncer Drone, the nonprofit will succeed in delivering its services to these remote regions, thus saving lives (Bahnson, McAllister Miller, 2008). Organizational structure for a six (6) person Synstrat Headquarters group, including a brief role statement and rationale for each individual employed A six person organizational structure that would be applicable to the Synstrat Headquarters group would be the Board of Directors, the Managing Director, the financial manager, a supervisor, human resource, and volunteers or employees. The Board is responsible for making planning and guidance decisions while the manager maintains relations with the organizations stakeholders and other contributors/fundraisers. S/he will also control the resources. The financial manager will be in charge of budgeting and controlling of funds for the organization. The supervisor will not only serve as the backbone of the organization, but will collaborate with the manager in putting plans into action (Amit Zott, 2012). The Human Resource will be in charge of recruiting staff while the volunteers or employees will be individuals working to fulfill the organizations goals and objectives. Volunteers or Employees A vision and mission statement for the Synstrat Group, including a positioning statement defining the cooperative stance of Synstrat with other similarly aligned organizations As already indicated, the main vision and mission statement for the Synstrat Group is to be able to acquire, deliver, and operate essential life support items. This means that it will provide the necessary equipment and items needed by the ravaged community in East Africa. On the other hand, the Groups positioning statement will be to create awareness of what is taking place with the East African Drought Crisis. Positioning statements are significant in determining how a given product and/or service will be positioned in a given market. References Acton, D.D., Fagan, C., Mamano, K. (2012). Planning for a not-for-profit combination: Insight into federal, state, and funding considerations. The CPA Journal. Pp. 64 67. Ambos, B., Shclegelmilch, B. (2007). Innovation and control in the multinational firm: A comparison of political and contingency approaches. Strategic Management Journal, 28(5). Pp. 473 486. Amit, R., Zott, C. (2012). Creating value through business model innovation. MIT Sloan Management Review. Pp. 41 49. Bahnson, P.R., McAllister, B.P., Miller, P.B.W. (2008). Noncontrolling interest: Much more than a name change. Journal of Accountancy. Pp. 46 53. Bahnson, P.R., McAllister, B.P., Miller, P.B.W. (2008). 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