1. Introduction
1.1 Concept overview
Business organisations usually develop global policy to expand their business in the global market that can help in increasing their revenue generation and contribute to their success.. In the viewpoints of Edokpolor and Egbri (2017) the strategies can be developed for increasing betterment in the business of the various organizations and industries. The report emphasizes on the development of global policy of the voluntourism industry which can help in the enhancement of the industry.
1.2 Objectives of the report
- To identify industry’s current forces and external environment
- To analyse the key trends of the voluntourism industry
- To suggest two scenarios for the future of industry within the upcoming years
- To develop and evaluate suitable strategy for the company and provide recommendations
1.3 Justification of the chosen topic
The topic chosen for the report is the voluntourism industry that emphasises on helping others by doing charity. The company that is chosen as the part of the voluntourism industry for the report is the Global volunteers company that emphasizes on sending the volunteer to other countries to provide food, health and education to the deserving ones. The topic of voluntourism is chosen to enhance the volunteering in the Global volunteers company to expand the charity work done by the company all over the world.
1.4 Organisational overview
The Global Volunteer Company is NPO (non profit organization) which was established by Bud Philbrook and Michele Gran in the year 1984. The headquarters of the company are situated in St. Paul, Minnesota in the United States. The Global volunteers company is holding distinctive consultative status with the United Nations. The annual revenue of the company is $5 Million and total funding amount is about $150K. The number of employees in the company is 84 who help in volunteering in other countries, localities and also manages the financial accounts of the company (Globalvolunteers.org 2020). Global Volunteers Company provides the services of food, health and education to the underprivileged section of the society and community. The company does the charity with the help of the volunteers who are sent to other countries for helping the strangers for a good cause.
2. Industry analysis
2.1 Industry overview
The voluntourism industry is the fastest growing industry in the world as the industry works for the social cause. The industry includes many companies all over the world that send their volunteers to different countries or in their locality to help the strangers and deserved ones. The annual expenditure of the industry is about 2.6 Billion Australian dollars and 1.6 million volunteers from countries all over the world do charity. The voluntourism industry offers volunteers to travel around the world for improving the lives of people. The volunteering in the voluntourism industry emphasizes on developing skills and utilizing the energy of the volunteers of the organization to provide proficient welfare services to the deserving communities. The volunteers who serve for the social work are given the provision of various rights which includes the Right to safety, information, supervise the volunteer project,negotiate the volunteer role and right to leave the industry any time.
2.2 Industry’s state of development
The voluntourism industry’s state of development is enhancing at a steady rate. The evolution of voluntourism started from the VSO (Voluntary Service Overseas) that was formed in the United Kingdom in the year 1958 for the volunteers to teach English in Borneo and in the US-based “Peace Corps” which was followed in 1961. “Earthwatch” was one of the first organizations offering a salary for the volunteer placements in 1971. The disaster of the Boxing Day tsunami in 2004 (Bbc.com 2020) and Hurricane Katrina in 2005 (Nytimes.com 2020) encouraged millions of people to help the victims who suffered from the vast destruction caused due to disaster. People from different countries came to help the victims of the destructive event by proving them food and health services. This led to the development of community based project programs which are made by the voluntourism industry to do the welfare of the people. As influenced by the ideas of Rosario and René (2017), the industry is emphasizing on the social, environmental, cultural factors of the world. The volunteers of the industry focus on providing charity to the needy people bring sustainability in the environment and maintain the culture of the community. The Voluntourism industry can reach up to the peak of development in upcoming years if the number of volunteers gets increased and the industry gets spread worldwide.
2.3 Industry’s current forces and its external environment
2.3.1 Porter’s five force analysis
Threat of new entrants
The threat of new entrants in the Voluntourism industry becomes limited because the industry is having perfect donor loyalty and high fixed funds for the social services which are to be provided to the weaker section of the society. The new entrants can enter the market only if there is an increased craze of doing social services among the new companies, industries and volunteers. Based on the ideas of Stork et al (2017) the industry can reduce the threat of new entrants by enhancing the quality of social services provided to needy people and keeping in mind the sustainability of the environment also. This can be done by increasing the funds of the industry which are to be used for the welfare of people as well as for the environment.
Threat of substitutes
The threat of substitutes for the voluntourism industry are not very high but if the industries providing same services like the voluntourism industry then the industries can create substitutes of the services. This can be only done if the switching costs of the industry are low and market value is reduced. As per the viewpoints of Njambi (2016), the voluntourism industry can overcome the threat of substitutes by improving the social services and by increasing the number of volunteers so as to send them all over the world for providing welfare services. The industry can also reduce the threat of substitutes by emphasizing on the factors which can help in bringing sustainability in the environment
Bargaining power of suppliers
The suppliers in the voluntourism industries are the service providers which include the investors, shareholders and co partners of the industry who provide funds to the company for doing social services (Kumar 2019). The service providers or the suppliers are the major part of the industry and their bargaining power increases as they succeed in the service provision to the people.
Bargaining power of customers
The customers in the voluntourism industry are the investors and shareholders who supply funds to the industry for doing social work and in return expect moral satisfaction. There are some buyers who do social work only to get a reputation in the market.
Competitive rivalry
There are a huge number of the non profit organizations in the world who are providing social services to the needy people of the various selections of the society as well as of the countries. As per the statements of Nair (2018) the increase in competition of the voluntourism industry with the other non profit organizations and industries can lead to the decline of the voluntourism industry. The competition can be reduced if the industry provides better quality services to the people globally without the intention of greed for name and fame.
2.3.2 PESTLE analysis
| Political | ● Government in U.S is Federal, democratic and republic
● Stable government ● United states trade policy |
Positive |
| Economical | ● GDP of United states is $22.32 trillion (Census.gov 2020)
● GDP per capita: 62,794.59 USD (Census.gov 2020) ● GDP growth rate: 2.9% annual change (Census.gov 2020)
|
Positive |
| Social | ● Population of U.S. is 32.82 crores (Census.gov 2020)
|
Negative
|
| Technological | ● Well developed IT department
● Reduced poverty rate |
Negative |
| Legal | ● Tax-exempt under section 501(c)(3) of the IRS code (Usa.gov)
|
Positive |
| Environmental | ● Air pollution in the country
● Water pollution ● Initiatives taken by the non profit organisations to overcome the environmental issues |
Positive |
Table1: PESTLE Analysis
(Source: Based on Nair, 2018)
Political analysis
The government of the US is a federal democratic and republic type which is a stable type of government. The country provides trade policy which allows that whether the trader is eligible for trade in the United States or not. The country offers the non profit and charity organizations to do social welfare work in the country. The government in the US is beneficial for the non profitable organizations who just work for the humanity purpose. There are about 1.5 million non profit organisations within the US so the competition is more for the organizations of the country coming to the US for social trade.
Economical analysis
The GDP of the United states is $22.32 trillion and GDP per capita is 62,794.59 USD in the country and GDP growth rate is 2.9% annually (Census.gov 2020) . The United States provides jobs to over 12 million people in non profit organizations with a higher pay scale than the other industries. This depicts the economic condition of the country’s good. The High scale economy of the country is beneficial for the traders and organizations to trade in the country. This can enhance the GDP of the United States and more non profitable organizations can be established in the country for the welfare of the low scale communities and countries.
Social analysis
The United States has a population of 32.82 crores which is limited and this is a boon for the other countries to establish the industries and organizations in America for expanding the business. The non profit organisations established in the United States appoints many unemployed people to provide them proficient jobs. The NPOs appoint the volunteers to provide goods and resources to the needy people. The Country’s social impact on other non profitable organisations is negative as there are no weaker sections in the country.
Technology analysis
The country is having good IT infrastructure which is helpful for the country in maintaining the economic level of the country and removing poverty from the country. The CCTV camera on roads helps to detect the needy people which are then helped by the non profitable organisations of the country. Based on the ideas of Lindstrom and MacKinnon (2017) the online system of tracking and getting access to the low scale community people is also beneficial for the country. The technology of the United States is beneficial for the country but has a negative impact on the other organizations coming for trade in the country as they compete with high technology of America.
Legal analysis
The non profit organisations consist of the sectors that work for social welfare of poor people, animals, and plants, providing education to poor children and saving plant life. “The act of tax-exempt under section 501(c)(3)” of the IRS code of the United States allows the exemption of tax for the non profit organizations. The law can help the non profit organizations to provide social services to the needy ones without paying any tax to the United States government. This can save the funds of the non profit organizations which they have to use for the social services in the country.
Environmental issues
The main environmental issue in the country is air and water pollution which is the main concern of the US government. The non profit organizations of the country can emphasize on the issue and take various measures to control it. The maintenance of sustainability of the environment is also the social service which can be provided by the non profit organizations. The non profit organizations emphasizing on the environmental issues can get moral satisfaction as well as provide welfare to the country’s population by reducing the air pollution and water pollution.
2.4 Analysis of Key Trends
Continued development
Volunteering plays a key part in tracking major worldwide challenges, such as urbanization, natural corruption, enhanced migration, and statistical changes in the population. The support provided to maximize the future of volunteering is not being given much attention by the people.The most worldwide key trends recognized in the voluntourism industry are the continued development and solidification of the volunteering framework.
Innovation in technology
The developments in innovation in technology, modalities and partnerships are considered through volunteering. The innovation in technology can help in bringing the voluntourism industry to the next level. This can be done by using social media and other online platforms to make people aware about the mission of the voluntourism industry. Based on the statements of Mostaghel (2016), the teens can be engaged in social work through social networking sites. The innovation in technology can be made proficient for detecting the social issues in the country whether they are related to humans, plants, animals or environment.
Support for inclusion
Volunteering in the voluntourism industry is supported by social inclusion and integration. The voluntourism industry includes the people of all races, community and religions. According to Sanahuja‐Gavaldà et al. (2016), the industry can emphasize on motivating the unemployed people of each age group and disabled persons to act as volunteers and engage them in social services. This can help in providing employment to the unemployed people. The industry offers disabled and backward race people to serve for the social welfare cause.
Dedication of people in volunteering
The people can be made more dedicated towards volunteering by making them realize the value of moral satisfaction which one gets after helping others without any greed. The volunteering framework can be developed and solidified by framing non profit organizations which work for the people, animals, and plants and for the environment (Shagurova et al. 2016). The voluntourism can be made more trending by awaring people about the social services and enhancing the humanity in the people of the country as well as of the world.
2.5 Two Scenarios for the Future of Industry Till 2025
Establishment of voluntourism offices in local areas
The voluntourism industry emphasizes on helping the ones who are in need. In the upcoming 5 years the industry can take innovative steps to help those in need. This can be done by establishing the offices in the local areas where pandemic situations are more likely to occur. For instance, countries like Sierra Leone, Niger, and Mozambique suffer from poverty and war like situations (Un.org 2020). The industry can establish offices in the local areas of these countries so that immediate help can be provided. High tech machines with good access to the internet can be introduced to keep the record and provide immediate help. Digital marketing can also be used for raising funds for the supplies and making people aware of the voluntourism. This innovation can also help the industry to grow and expand globally. In place of humans, robots can be used to volunteer to deliver supplies with zero risk.
Usage of AI
In the upcoming 5 years the voluntourism industry can emphasize on the use of artificial intelligence for volunteering in pandemic situations. This can be done by introducing robots to the industry. Robots work faster and can learn more easily and quickly than humans thus making the work easier and smarter. According to Zakharova (2018), robots are a good mimicry of human intelligence and can be used efficiently under any circumstance. Robots are risk free of virus transmissions unlike humans, humans can easily transmit the infection or the bacterias, thus the use of robots is safer in the difficult times. For instance, under covid-19 pandemic situation, there were not enough robots to volunteer but in future if the same condition ensues robots can be used for voluntouring and for no contact deliveries to reduce the risk of virus transmission amongst people. Robots can store an incredible amount of information, making the recording of data easier. The technology is becoming advanced day by day. New technologies are being introduced everyday in the world. The industry can introduce smart assistants and can also use digital marketing for creating awareness among youth which will help the industry to enhance and expand globally (Maedche et al. 2019). High tech machines with high quality internet speed can also be introduced in the voluntourism industry. This will keep the records and provide quick information about the need of the volunteers to provide food, and other things people need in the specific areas under the war like situation.
3. Critical evaluation of chosen strategy
3.1 Company’s business model
The business model of the Global volunteer company includes value proposition, value chain and revenue of the company.
Value proposition
Offering
The Global volunteer company emphasizes on offering humanity services including food, health and education to the needy people. The company sends the volunteers to different parts of the world to help poor people and the victims of disasters. The company offers social services to the scaly people only for moral satisfaction without any cost or profit. In the viewpoints of Baldassarre et al. (2017), the company also offers employment to the unemployed and encourages them to work as volunteers of the company. These volunteers are the main aspects of the company who serve the needy people. Refer to appendix 1
Client segments
The client’s segment is done on a demographic and geographic basis by the company. The company chooses the clients on demographic basis that is on basis of age, caste, occupation and education. The people who are behind the race having low occupation, lack education and health facilities are helped by the company through volunteering. The company also segments the clients on basis of the geographic factors that are the places where destruction has occurred due to war or any disaster. The victims suffering from the disaster are also helped by the company by provision of food and shelter.
Fundraising model
The company emphasizes on developing fundraising models for increasing the funds which are to be used for the social services. The company has developed good relations with the investors and donors (Carroll and Kachersky, 2019). The company raises funds by organising various events whose purpose is to engage and offer the people of the world to serve for humanity services by donating money. `
Value chain
Inbound logistics
The inbound logistics in the Global volunteer company includes the receiving of the funds from the investors and donors. The received funds are managed by the company and then the countries are examined where the funds can be beneficial. As stated by Knoll (2016), the company utilizes the funds in a proficient manner to enhance voluntourism worldwide.
Outbound logistics
The outbound logistics includes the transportation of funds and other necessary materials which are to be sent to people in need.. The volunteers are sent to the places where there is poverty, lack of education and health facilities. The company also sent the volunteers to places where terror wars take place.
Operations
The volunteers are sent to the different localities and countries to help people. The volunteers go there and provide food and health facilities to the victims. The volunteers visiting for education provide education to poor and orphan children free of cost. The company operates voluntourism by identifying the places of needs.
Marketing
The company does not manufacture any product. The only purpose of the company is to provide humanity services to the needy people and frame the vast empire of voluntourism in the world. The company does this through digital marketing by awaring people about the moral satisfaction which a person can get after doing good deeds (Reel, 2016). The company organizes events in which the donors can donate according to their wish for humanity services.
Services
The services provided by the Global volunteer company are the food, education and health facilities. These are the basic needs of every person in the world but some people can’t afford these needs so they are helped by the services of the non profit organization.
Revenue model of company
Investors and shareholders
The investors and the shareholders are the main aspects who make the revenue model of the company. As per the statements of Wang, (2017) the investors and shareholders invest their money for the humanity services for getting moral satisfaction or reputation in the market. The funds of the company are dependent on the investors because they are the ones who invest their money for the establishment of a non profit organization.
Charity events
The company organises various charity events online as well as offline for attracting and making the people aware towards voluntourism. The charity events raise the feeling of humanity in people and they donate for the betterment of the lives of the poor people and victims of destruction (Bone and Bone, 2018). The charity events are also organised to enhance people in volunteering for humanity purposes.
3.2 Relevance with the industry analysis
The Global volunteering company is the company of the voluntourism industry that sends the volunteers to other countries for providing social services. According to Banki and Schonell (2018), the voluntourism industry emphasizes on increasing the feeling of humanity in the world. The analysis of the voluntourism industry is done through Porter’s five forces and PESTLE analysis. Through these analyses the market value and expansion of the industry can be known. The analysis of the Global volunteering company can also be done by the porter’s five forces by which the company can know about the threats of substitution, new entries, competitive rivalries and the bargaining power of buyers and suppliers. After the analysis it can be seen that the competition level for the company is very high throughout the world as there is an increase of non profit organizations and volunteering acts in various countries. The company can cope with the increasing competition by increasing the number of volunteers and funds of the company which are the main resources for providing the humanity services. The PESTLE analysis of the company depicts that the organization won’t have to pay the tax while providing social services to the people and victims of the other countries. The company mainly emphasizes on providing food and health facilities to the weaker sections of the world and providing free education to the orphans and poor children. The main aim of the company is to enhance voluntourism all over the world.
3.3 Relevance with business theories
Human Relations Theory
The theory which is relevant for the Global volunteer company is the “Human Relations theory” which was written by Elton Mayo in which he wrote about the company’s relations with the employees (Solomon and Steele, 2017). The theory is applicable in the voluntourism company as the main aim of the theory is to help people to relate themselves with other people and understand their emotions as well as the condition in which they are suffering. The volunteers of the company are treated without any discrimination as stated in the theory of human relations. The volunteers that go abroad for helping people have self confidence, ability to understand the viewpoint of others and have friendly nature so that they can help others wholeheartedly. The company has to give respect and courtesy to their volunteers. The volunteers are having the ability to look at the issues of the world, listen to the cries of people and learn to fulfil the needs of the needy ones. The company emphasizes on maintaining good relations with the employees by avoiding arguments and giving them respect. The company and the volunteers are sociable and easy to approach anywhere which means that they have the tendency to recognize the poverty, health and study issues faced by people all over the world and approach them easily for giving helping hand. The main postulate of the theory is to insist on the selfless services which are being provided to the needy people. The voluntourism industry too follows this postulate of providing selfless humanity services. The main objective of the theory as well as of the company is to put “others first, self last” and never criticise anyone in public. The company emphasizes on providing education to the orphan and poor kids. As per the ideas of Anderson et al. (2017), the volunteers are sent to other countries to help the strangers. The volunteers aid the poor people without any greed of name and fame and this is the quality that makes the Global volunteer company one of the world’s largest non profit organizations.
4. Strategic Recommendations for upcoming 5 years
4.1 Rationale for any recommendation
Recommendation 1: The Company can be recommended to establish local offices in areas of destruction.
The local offices can be established in rainforests and in volcanic eruptions areas to emphasize on the forest fires and other disasters which take place and cause huge damage to natural vegetation and wildlife. The local offices can also be established in the locations in need and in locations where any natural calamity has occurred. The local offices can be also established in areas where war has occurred, the volunteers can help the people to cope with the damage by providing them food, shelter and health facilities. The volunteers from the local offices can get easily accessed to the people and provide them proficient services of food and health along with affection and care. The company can increase the funds to help the victims of disaster prone areas.
Recommendation 2: The Company can be recommended to launch artificial intelligence in future.
In the Potential time the company can emphasize on launching artificial intelligence that includes robots which can help in volunteering in pandemic situations and in areas where humans can’t get access easily. Robots can be designed in such a way that they can be beneficial for humans as well as for the environment. As stated by Johnson et al. (2018), artificial intelligence is basically the mimicry of human intelligence which can be profitable for the company as the number of volunteering can be improved with the help of artificial intelligence. Besides this, company can also enhance the technology in digital marketing to make people more aware about volunteering. The enhanced technology can help the company to expand globally and improve the needy sectors of the world.
Recommendation 3: The Company can be recommended to conserve plants and wildlife to bring sustainability in the world and environment.
The strategy that can be adopted by the company for enhancement of the voluntourism industry will be depending on the two scenarios that have been mentioned before. The company can establish local offices in forest areas or at the sites of natural vegetation and wildlife which has to be conserved. The company can emphasize on the increasing deforestation in the world. This can be done by identifying the main cause of deforestation and conservation of plants. This can be done by making people aware about the damaging effects which can be caused to the environment, human and wildlife due to the depletion of trees from the environment. Besides providing food, health facilities and education to the needy people the non profit organization can also emphasize on conserving the plant life by planting the trees in the country and sending volunteers to various countries for planting trees and conserving the environment. According to Roslan et al. (2017), conserving wildlife is another factor on which non profit organizations can put focus on which can be adopted along with humanity services by the Global volunteer company for increasing volunteerism worldwide. This can be done by taking strict actions by the non profit organisations against the increasing cruelty of humans for animals. The company can do this with the help of the internet. People can be made more aware about the increasing cruelty against animals and tell them to come in front for volunteering to save the animals from these harsh cruelties.
4.2 Real world complexities faced by company
Lack of experts
The company can implement the above recommendations but the complexities which can be faced during implementation include the lack of experts who are required for conservation of plants and wildlife. The company can appoint botanical and zoological experts for the forest areas and other areas where plants and wildlife are being exploited by humans (Lindstädt, 2020). To safeguard them the people having the knowledge of plants and animals along with love and affection towards the natural flora and fauna can be appointed as the volunteers.
Less number of volunteers
The second challenge which can be faced by the company is the reduced number of volunteers. Based on the ideas of Peters et al. (2017), the people want to get engaged in volunteering but due to lack of time they do not get engaged in social work. The company focuses on the natural wildlife and vegetation along with humans then the company will require more number of volunteers which might be quite difficult.
Lack of funds
The main challenge which companies can face during the implementation of strategy can be lack of funds. The reduced funds are the main reason due to which the company can’t help more number of people and with the implementation of the recommendation of conserving wildlife and plant life the funds has to be increased. For increasing the funds more investors will be required and most of the investors are not interested to invest in conservation of wildlife and plant life.
5. Conclusion
At last it can be concluded that companies like Global volunteer company can create awareness amongst people about voluntourism. It can be done by making different strategies and by raising funds for the supplies. More people can be introduced to voluntourism to expand the industry. Use of robots, artificial intelligence, digital marketing and other technical aspects can be helpful for the advancement of the industry. Awareness programmes can be organised in different countries by the company so as to create awareness. All volunteering frameworks are not positive; some can have negative results of voluntourism by being prohibitive, oppressive, and elite.
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Appendices
Appendix 1
Appendix 2
