Good Example Of Essay On Strategic Formulation

Type of paper: Essay

Topic: Banking, Organization, Government, Politics, Loan, People, Business, Community

Pages: 2

Words: 550

Published: 2020/12/09

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Aregak is a micro credit institution based in Armenia. It has worked with the people in providing small loans to majority of the poor citizens in the country. The organization provides loans without asking for any collateral to secure payment, as is the case with other financial institutions. The main reason Miriam chose to offer loans with no collateral was that she was serving a minority group. Most of the loan beneficiaries were women who owned little property. They would thus not afford to provide any security for acquiring a loan. The poor people could only collateralize assets that were precious to them such as houses. This would create a probability of them losing the property and thus getting frustrated. Miriam did not have a profit motive in her undertaking to loan provisions and thus did not necessitate provision of collateral. She provided that the only collateral required was good character and a well-based reputation. Loan repayment depended on the goodwill of credit beneficiary and their feel o responsibility. (Simerson 2011)
Miriam is a social entrepreneur as shown by her innovative approach towards the social problems facing the people of Armenia. She was ambitious to create wealth amongst the poor persons living in the villages, by empowering the marginalized and the women. Her devoted spirit showed in her early age when she started working with Save the Children organization. They created employment for families and facilitated community involvement.(Simerson 2011) Yesayan founded the Aregak Micro-Finance Organization whose primary objective was providing loans to the struggling communities. Bank loans were inaccessible after the earthquake disaster and based on her knowledge after working with the United Nations, she rolled projects that would fund the people.
Argek provided guidance in planning business ventures and credit consulting. She helped create many service centers and institutions that served a very broad community in Armenia. She had an interest in educating the youth as a means of empowering them to significant leadership roles. She offered a scholarship program to the talented children who could then help their communities (Iacopetta 2005). By creating Argek, she provided job opportunities to the vastly unemployed community. They now had a source of livelihood and could support their families. Unlike the communist system that made people dependent, she worked to empower them to earning their livelihoods.
Miriam should register with the government to obtain a license as a non-profit organization. When Aregak registers, it can seek government assistance in cases where it faces a crisis, financial or otherwise. (Boulding 2014) The registered organization can then tap resources from the formal capital markets and can receive bank loans. Government does not offer most of the services to unregistered entities, which work as NGOs.(Iacopetta 2005) Aregak would become a government regulated micro-credit institution that can collect savings that will boost its future operations. The government agencies track the loan beneficiaries who default loan payments. Working with the government will prevent the occurrence of financial frauds and the government will oversee major projects of the organization. There is also a disadvantage of licensing the organization to a non-profit institution. (Boulding 2014) Government officials who oversee operations of the system may deter the organization`s primary objective. The procedure followed in approving projects that are undertaken by Aregak after registration are demanding.The decision to change status of the organization or remain as an NGO would implicate future operations. The advantages of licensing outweigh the few disadvantages and thus registration is a step forward. The institution will thus work towards its goal of service provision.

References

Boulding,C. (2014). NGOs. New York: Cambridge University Press.
David,K. E., Foster,A. D., & State Bar of Texas. (2014). 12th annual governance of nonprofit organizations course.
Iacopetta,M. (2005). Open Source Production and Economic Growth.
Pearce,J. A., &Robinson,R. B. (1988). Strategic Management: Strategy formulation and implementation. Homewood, IL: Irwin.
Simerson,B. K. (2011). Strategic planning: A practical guide to strategy formulation and execution. Santa Barbara, CA: Praeger.

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WePapers. (2020, December, 09) Good Example Of Essay On Strategic Formulation. Retrieved August 04, 2021, from https://www.wepapers.com/samples/good-example-of-essay-on-strategic-formulation/
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Good Example Of Essay On Strategic Formulation. Free Essay Examples - WePapers.com. https://www.wepapers.com/samples/good-example-of-essay-on-strategic-formulation/. Published Dec 09, 2020. Accessed August 04, 2021.
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