To slow the extinction of species, non-profit organizations create nature parks and nature reserves, which employ specialists who monitor animals and plants and create favorable conditions for the life and reproduction of the species. It was to address the problem of declining biodiversity that Dave Nixon created the Orchid Species Preservation Foundation. Its mission is to preserve rare and endangered orchid species: “Because orchids are sensitive to changes in the environment, they have been considered a particularly important indicator of the health of a particular ecosystem” (Arnison, 2017, p.3). As the organization moves into the future, Nixon plans to open a new botanical education center to help make money for further growth and attract more people. The organization’s mission is stated succinctly and clearly, but a more immediate explanation of what services the organization provides could have been used. The organization’s activities are clear and traceable to the core mission statement.
The organization’s vision is relevant as society becomes more interested in nature daily, children are taught to care for it, and botanical education centers are popular today. For this vision to gain universal acceptance, Dave Nixon needs to expand the collection, launch an advertising campaign, and invite schools and colleges to give tours of the center.
Porter’s Five Forces Analysis
Industry being analyzed: Environmental protection
- A number of competitors – medium. The main competitor is organizations in the city of Edmonton. This city runs many programs and organizations that can be competitive.
- Growth rate – medium. Such organizations are gaining popularity in the 21st century as environmental issues become more popular.
- Fixed costs – medium. Opening a botanical education center requires a certain amount, but the fixed costs will decrease.
- Differentiation among existing competitors – high. Nixon offered ideas to help the organization become as competitive as possible, some of them unique.
- Exit barriers – medium. If the market turns out to be unprofitable, it will be difficult for an organization in such an area to get out of it.
- Perishable – low. Orchids are not perishable products and can be considered for the long term.
Overall, the rivalry among competitors is medium.
- Economies of scale – medium. This industry is large-scale; Nixon plans to introduce many innovations into the organization and expand production, increasing its competitiveness.
- Capital requirements – high. The initial level of investment is high, and it is not easy to enter this industry.
- Access to distribution channels – high. This industry is attractive because different groups can be interested in it.
- Switching costs – high. The Orchid Species Preservation Foundation would need much capital to open a botanical education center.
Overall the threat of new entrants is medium:
- Number of suppliers – not specified
- Uniqueness of good/service – high. The Orchid Species Preservation Foundation grows many species of orchids unavailable in regular stores and other similar foundations.
- Importance of good/service to the industry – high. The industry’s importance is growing with the products and services this organization provides.
- Relatively few buyers – medium. The problem’s relevance is growing, and people are interested in the industry.
- Overall – consumers have the overall power threat medium.
Potential substitute products and services have not been identified; an organization has a unique product and idea.
PESTEL Analysis
Political/Legal
- Because many orchid species are rare or even endangered, their sale must be controlled by certain authorities.
- The proliferation of industrial areas, military activities, and other human influences on nature is bad for flora and fauna.
Economical
- Orchid Species Preservation Foundation had budgeted to receive $75,000 in grants and $75,000 in corporate sponsorships in 2018, as well as $25,000 in grants and $25,000 in corporate sponsorships in 2020, 2022, and 2024 as the foundation began expanding its facilities and operations (Arnison, 2017).
- Orchid Species Preservation Foundation had budgeted revenue from membership fees of $20 per member for 25 members per year from 2014 onward (Arnison, 2017).
Social
- People worry about the environment and try to help save it
- In the 21st century, environmental issues are topical, affecting people with tremendous force
Technological
- Creating sites and pages on social networks will help attract as many people as possible.
- Technological advances are helping to create more plant species, accelerate their growth, and create better plant growth equipment.
Environmental
- The industry helps solve environmental problems such as reducing biodiversity.
David Nixon’s goal should be clearly defined to narrow down the options for developing an organization. Criteria for evaluating the development of an organization could be as follows:
- The popularity of the organization
- Introduction of new technology to create a unique product or service
- Attracting investors
- Partnerships with like-minded people
- Addressing the problem of endangered orchid species.
Nixon gave a list of ideas that he was going to implement. Many of them are appropriate for the further development of the organization. For example, ideas for selling mature orchid plants, creating a seed bank, growing plants for use in land reclamation projects, and developing a green fundraising initiative could help the organization reach the next level. The first idea is that selling mature orchid plants can be profitable because the organization grows rare species of plants that are very scarce in the marketplace and, therefore, few competitors. The second idea, which involves creating a seed bank, may be appropriate because there are very few competitors in this area. This approach will help make new plant species that the organization can exploit and increase the uniqueness of its products. The third idea, which has in mind the use of plants for land reclamation, can be attractive since the land damaged by industrial enterprises is now becoming increasingly urgent. This idea will help the organization to earn a positive reputation and can help in solving the global problems of humanity. The fourth idea Nixon provided was to develop a green fundraising initiative. This idea involves the sale of a product, after the purchase of which the buyer is given a promise to plant one orchid. This approach will attract many people, as such ideas are at their peak now. On the one hand, the organization will be able to make money, and on the other hand, it will be able to expand its assortment.
Ideas that seemed unpromising might include:
- Propagating and selling seedlings.
- Advertising the new center for special events and other purposes.
- Creating an orchid DNA bank.
- Offering flower photography courses.
- Becoming a research site.
These approaches have both pros and cons. For example, breeding and selling seedlings may seem like an original idea. Still, this process takes a very long time, and the main target audience is only true orchid lovers willing to take on the responsibility of growing them. The second idea is to offer events in the organization. This idea may not pay off because so many similar businesses are offering the same services, so entering this market will not be easy. The third idea, creating an orchid DNA bank, is also very interesting but difficult to implement. The target audience, as well as the idea of selling seedlings, is true orchid lovers or various scientific centers. Such institutions already have regular suppliers, so this market is very competitive. Offering flower photography courses is a low-cost idea but very trivial. Most organizations have been offering this service for a long time, so customers will be reluctant to use it. The last idea – to become a research site can be very costly, as an organization needs to buy equipment that will allow high-quality research.
Reference
Arnison, M. (2017). Orchid Species Preservation Foundation: Choosing a Direction. Richard Ivey School of Business Foundation.