The American Red Cross is a nongovernmental, nonprofit organization that is led by volunteers, whose purpose is to prevent and relieve human suffering. The American Red Cross is part of the International Red Cross organization and is the largest supplier of blood in the United States. Its assistance in providing relief to victims of natural and man-made disasters and helping people prevent, prepare for and respond to emergencies has helped the American Red Cross create a brand name that has led to many successes, but has led to some difficulties as well. In order to achieve a better understanding of the organization, its environment, and its future plan of action we first examine the organization by using SWOT analysis. Then we look at a financial aspect of the American Red Cross. Next, we will look at some symptoms of the organization to determine a core problem and after the main problem is identified, we will list several recommendations for the organization. We then will conclude with the best alternative for the organization’s situation.
The American Red Cross’s primary focus is to help those in need during a time of crises. The organization adds value because it has a great influence and provides services that many people depend on in times of hardship due to disasters. It has a reputation of having helped victims in over 63,000 natural and man-made disasters. The American Red Cross has a competitive advantage because it is a trusted organization and it has loyal supporters, but in 2000 the American Red Cross received a lot of criticism for decisions it made and for how it handled its money, which led the public to question the motives of the American Red Cross. In this section we will examine the American Red Cross using SWOT analysis. SWOT analysis is a tool used to evaluate an organization’s internal and external environment to determine whether certain factors are helping or hindering the company from reaching its goals. We will look at the strengths, weaknesses, opportunities, and threats of the American Red Cross and use this analysis to better understand the organization’s core competencies and develop ways to mitigate its weaknesses and threats.
Diversified services. The American Red Cross helps victims through 6 services in all. They range from providing assistance to military families in emergency to offering health and safety classes. So it helps people to be prepared to deal with the unexpected accidents and also give people immediate relief, which means getting people what they need most without waiting a day or more -- food, lodging, clothing, medication replacement, and mental health counseling.
Strong brand name and loyal supporters. The American Red Cross has a 130-year history of providing the most extensive relief efforts for American people and it supports victims of thousands of disasters across the country each year. Since it has been around for so long and provided a lot of services to the public it has gained many loyal supporters who look up to them and support their efforts and are willing to donate time and money. This is a great strength because American Red Cross gets most of its funds from the public donations of blood and from the donations. Because they have developed a strong brand name and have had much success many people trust them. The red crescent symbol and the red cross emblem is a recognized symbol. Strong Alliances. The American Red Cross has established a number of relationships with other organizations. Teaming up with different organizations provides a competitive advantage because these alliances have helped the American Red Cross expand its services and increase its donations. For example, the American Red Cross joined forces with Masterfoods USA, in which they created a special pack of M&Ms and advertised via television, radio, and newspapers and all of the donations went to American Red Cross, which was $3.5...