dc.description.abstract | This study sought to investigate the strategic responses to changes in donor funding
patterns by Non-Governmental Organisations (NGOs) dealing with children issues.
NGOs play a crucial role in a country's development. One of the main purposes of
strategic management is to assist organisations gain a competitive edge. Strategic
management is therefore essential for the survival of any organisation. The study
was based on NGOs, which have their offices within Nairobi - operating within
Kenya. The study reported here was conducted in 14 NGOs during the months of
September and October 2003. The objective of this study was to establish strategic
responses to changes in donor funding patterns by NGOs operating in Nairobi that
deal with children issues. The study was based on primary data collected via a
questionnaire using drop-and-pick and email. The data collected from the 14 NGOs
was then analyzed and interpreted using descriptive statistics primarily, frequencies
and percentages. The findings of this study reveal that, a number of strategic
responses have been applied by NGOs as a response to changing donor-funding
patterns. Though heavily reliant on foreign donors for continued sustainability, NGOs
have used differentiation of product, segmentation and a market focus strategies, as
well as proactive planning procedures and methods of linking funds to performance.
The NGOs have also shown interest in long-term sustainability, but owing to the
nature of activity (Children issues), this has not been embraced much.
In view of the findings, a number of observations have been made. Firstly, NGOs in
an industry where there is overwhelming supplier power need to proactively
anticipate and strategically respond to the changing environment. Secondly, there
are a number of strategic options available to NGOs intending to counteract the
power of suppliers in the face of dwindling donor funding. These options include
engaging in self-sustaining projects, partnerships with profit making companies and
having several donors as opposed to one main donor. There is also a need for
NGOs to develop long-term self-sustainability plans to ensure their continuity of
operations. It is recommended that further research to be carried out on NGOs
responses to donor funding patterns and policies to shed more light in this issue. | en |