CHAPTER FIVE

SOWT AND PEST ANALYSIS OF AKRSP

5.0 In this chapter SWOT (strengths, weaknesses, opportunities and threats) and pest (political,
economic, social and technological) analysis of AKRSP will be made. The major strengths,
weaknesses of organization will be described and the opportunities and threats that could be
affecting the organizations that are operating in an area will also be identified. Moreover the
political, economical, socio-cultural and technological factor that affect upon the organization will
be described.

5.1 SWOT Analysis

SWOT stands for strengths, weaknesses, opportunities and threats. The strength and the
weaknesses are internal to the organization while the opportunities and threats are the external.
SWOT analysis of AKRSP is as follows:

5.1.1Strengths

As for as the strengths of AKRSP are concerned, although there are many in number, however
following are the major strengths:

• Management
The top management of AKRSP is highly trained, experienced and qualified. They know how
to acquired funds and how and where to utilized those funds efficiently and effectively. The
organization hiring policy is to recruit the best individuals in order to provide the service to
their clients efficiently. The minimum qualification of employees is graduation. The
achievements of the AKRSP are due to its skillful human capital.

• Effective Means of Communication

AKRSP is uses modern applications of technology for communication.. It the only
organization that uses the application of Web and the computers of the offices are
interconnected via networking having internet facility. Also each office is equipped with the
fax machines, intercoms and telephones. Employees communicate among each other via these
means. The staff are trained to uses these application of technologies.

• Credibility

Due to the achievements of the AKRSP by using its innovative methods in the field of
agriculture, live stock and enterprise development. The achievements are recognized
internationally, AKRSP has received a number of awards,
➢ The 2005 Global Development Awards for Most Innovative Development Project.
➢ And the Ashden Award for Sustainable Energy, or "Green Oscar.
• Concept
The concept of the AKRSP and the approach that it adopts to achieves its goals and
objective is unique. The community development and Institutional development approach
with special reference to grassroots was initiated in Pakistan first time by AKRSP . The
organization proved what it clamed, i, e, to reduce the poverty and increase the incomes of
the peoples of the north. Various LSOs and VOs are working independently with
communities under the umbrella of AKRSP for the development of communities.
• Funding

AKRSP has a Variety of donors that support the organization financially as well as technically
when required. Major Donors includes Aga Khan Foundation (AKF), United Kingdom,
Norway, Canadian International Development Agency (CIDA), government of Pakistan,
World Bank etc.

• Technical and financial innovations

From its very start of the infrastructure the AKRSP encouraged innovations in the financial
and technical matters. As a result new financial and technical arrangements evolved which
were different from the conventional arrangements made by government and other agencies.

• Flexible organization:

AKRSP is an independent NGO relatively free of fixed procedures, hierarchical clearance, or

internal constraints on action. This flexibility facilitates the working method of
experimentation, adaptation, and trial-and-error innovation that is the hallmark of the program.
AKRSP staff can spend more time in the field and less time in reporting upward.

• Achievements

The AKRSP successfully run its Agricultural production program, through this program it not
only provided improved variety of seeds, varieties of fruits and fertilizers but also teaches new
techniques of cultivation to the farmers in the region and is its services in the field of agro
business is noteworthy.

The services that are provided by the AKRSP in market development is also remarkable,
framers are trained how to preserve its production and what should he adopt the distribution
channel. Especially cherries and potatoes that are the main production of north, now they are
distributed down the country efficiently due to the efforts of AKRSP.

5.1.2 Weaknesses

Following weaknesses of AKRSP are analyzed:

• High Employee turnover rate

AKRSP fails to retain its skillful and experienced employs .there are many reasons of the high
employee turnover rate. There are many reasons of the high employee turnover rate. Primarily,
other organization offer high packages to skill full and experienced individuals. Secondarily,
AKRSP itself is shrinking; it has cutoff its human resource, etc.
• Lack of technology

Although AKRSP effective use of technology in communication. But it lacks those tools and
technology that are required to implement modern principles of agriculture sector and research
in the region.

• Human resource

Most of the employees are fired in late nineties, because of lack of funds and some other
reasons. Up till now the work load of each individual has been increased .means to say that
currently AKRSP has less no of employees than required.

• Absence of human resource development section

There was a separate section of human resource development (HRD), now it has been merged
with HR section, so the employee development is not given priority as it could be done as
required.

• In effective role of human resource department

The role of human resource section is not significant. The HR section contain only two
individuals, they are supposed to involve in recruiting and selection of employees. The rest of
HR functions like employee appraisal, extension of contract of employees, promotion is
performed by the section heads (of respective section) or RPM.

• The priorities of donors changes

AKRSP has now achieves its basic objectives that’s why the priorities of donors are now
shifted towards the Azad Jammu and Kashmir and Afghanistan

• Research and development

There no research center of for growing new verities of seeds, food processing, preserving
 the fruit and vegetables etc.

5.1.3 Opportunities

Following are the opportunities:

• New Enterprise Opportunities

New income, employment and enterprise opportunities from planned public sector investments
in several mega projects, because now the federal govt. take special interest in development of
the northern areas of Pakistan so the developmental budget is also increased besides creating
new employment opportunities that automatically provide opportunities to the NGO to extend
their operations.

• Poverty Reduction

The govt. in northern areas takes serious steps to reduce the poverty from the region. SEPW is
the also an effort of govt. in the poverty reduction from the region and give the women
awareness of self employment. For the implementation of such projects on community level
AKRSP is the most suitable organization and the govt. have awareness about it.

• Component of AKDN

AKF take special interest in the development of NAs and it establish a net work of developing
agencies that are working in different sectors like education, health culture, rural development
etc. So there is an opportunity for greater integration within AKDN agencies so that desired
results can be achieved.

• Credibility of AKRSP

Due to the achievements of the AKRSP by using its innovative methods in the field of
agriculture, live stock and enterprise development. The achievements are recognized
internationally, AKRSP has received a number of awards, including the 2005 Global
Development Awards for Most Innovative Development project and Ashden Award for
Sustainable Energy, or "Green.
• Good Relation With Local Government

AKRSP has good relation with govt. since its creation, the achievement of organization are
appreciated by the local govt. and is also aware about the creditability and a expertise of the
AKRSP. Therefore govt. consults the organization whenever to launch any new project in the
region.

• Economic Development In The Region

The northern areas of Pakistan are now getting developing rapidly in every field of life
especially there is rapid development in private sector. That creates opportunities to the
existing as organization especially for AKRSP that it can provide the consultancy services to
the newly established organization.

• Social Development
There are certain areas that require further attention to in context with the social development.
The efforts of AKRSP in social development appreciable and it is the only organization that
can further improve the life style of the peoples of north because it has links that are deep
rooted in remote areas in form of LSOs.

• More Strengthen Local Organization

The LSOs , WOs and VOs that are the community organizations requires to developed more
and by providing more technical and financial support to developed the communities . These
organizations provide access to the community level and are working under the umbrella of
AKRSP.

5.1.4 Threats
Threats are:
• Socio-cultural constraints
 Northern area is the only region in Pakistan where various each and everey area has a
different cultural and peoples have more association to their cultural values, moreover
diversity also exist in terms of the tribe that the individual belongs. I.e. Sheens has their
own culture, same is the case with the Kashmiris, Yashkuns etc that are inhibited in the
region. So in a such a sensitive region where the cultural constrains are so common ,it is
difficult to operate specially those organization that are working for the welfare of people.
It is because if one community is get benefited the other claims for it. As far as AKRSP is
concerned, it has to be sensitive to increasing religious polarization of northern society.
Especially in Gilgit and Baltistan region, AKRSP have to be careful in making sure that it
involves all communities.

• Government Policies

Every government has its own policies towards the NGOs, as NGO cannot show its
efficiency without the support the government. Moreover if government imposes tax or
duties upon the products and services of these NGO, will definitely affect the productivity
of these organizations.

• Social Conflicts
Northern areas have inhabitants of various races Like Kasmiries, Shine, Yaskun, Pashtoons
etc. Generally NGOs particularly AKRSP works with and for communities, if some
communities get benefited others claimed for getting such facilities also. Sometimes the
situation became out of the control and conflicts results among communities.

• Country’s Economy
The country’s economy is in recession and is a big threat to the NGOs, because govt. cut
down the financial support for NGOs, and also can tighten the rules and regulation regarded
to the NGO

• Disaster Prone Area

The northern area is disaster prone area, and is located in the earth quake zone,
infrastructure especially Karakuram high way (KKH) can be damaged if earth quake
occurred, which is the only link to connect the NAC to the rest of the country.
• Changing Priorities Of Donors

NGOs mostly dependent on the external financing to run their businesses, Earth quake in
Azad Jammu & Kashmir (AJK) and after math conditions of Afghanistan attracts the
sympathies of international donors. It is a big threat for those NGOs that are operating in
other areas of Pakistan except AJK.
• Private Sector Development

The private sector development in NAC as well as country also creates challenges for
organizations regarding to retention of the skillful human resource. As Pakistan lacks
experienced professionals, therefore organizations welcomes the talented and experienced
individuals with high packages. AKRSP also facing this challenge like many other
organization.

• Infrastructure Of Region

The region of NAC is considered in hard areas of Pakistan, because of geography of the
region, moreover the condition of infrastructure of the region is also critical because govt.
always ignores the region. During winter season the Chitral region as well as some areas
of Baltistan has no excess to the rest of the country.

• Lack of Updated Data Base

There is lack of sound, valid data about the population of the area, which is necessary for
operational purposes and policy making and setting of priorities for communities. There
are no periodic surveys of the region, the only source of information left behind is census
that’s result become outdated, therefore information of census cannot be generalized.

5.2 PEST analysis

PEST stands for "Political, Economic, Social, and Technological analysis" and describes a
framework of macro-environmental factors used in the environmental scanning component of
strategic management.It identifies key external factors that can have an impact on a company.
Depending on the market and the type of company, the various components of the PEST
analysis will give differing importance to the external factors. PEST analysis is one of the most
conclusive ways of identifying these gaps and opportunities, particularly when it comes to the
fast moving area of technology.

The Pest analysis of AKRSP is made in following lines:

• Political Factors

Govt. of Pakistan gives various facilitates to the NGO sector, because Pakistan being
developing country unable to work for the betterment of common people As developed
countries provide their peoples. NGOs fill this gap by providing services to the deprived
population of the country. In this regard, NGOs are exempted from taxes and excise duties,
also govt. appreciates their achievements and provide financial assistance to the credible
organizations (NGOs).
.
As far as AKRSP is concerned, it has good relations with the local as well as national govt.
because of its credibility and achievements. Govt. of Pakistan is among the major donor of
AKRSP, also govt., wishes to take advantage of AKRSP’s expertise and experiences of
working in the development of rural areas. In this connection various projects are handed over
to AKRSP by govt. for implementation.

The economy of world in general and that of Pakistan in particular is in recession due to
financial crises, so AKRSP faces lacking of funds , always there is threat to change the govt.
policies towards these organizations. Moreover, political instability in the country also affects
the performance of the organization.
• Economic Factors

It has been discussed that due to financial crises NGOs (AKRSP ) don’t receive the sufficient
amount of funds ,also inflation, unemployment and high interest rates are the by product of
economic crises. So AKRSP also faces shortage of funds, donors cut back the financial
assistance to the AKRSP. Therefore it has to limit its activities, which result in various
problems for organization, i.e. the downsizing of employees and cutting down the salaries of
 employees etc
Moreover inflation further exerts pressure upon the organizations (AKRSP ) budget, now
organization have to careful in setting priorities to launch certain projects.

• Socio Cultural Factors

NAC has a diverse culture and multi sect environment, where each and every area (district)
has a specific traditions life style i.e. in Gilgit region literacy rule is high peoples are sober and
more conscious about their education, safety, health and always tends to improve their life
style.

In Diamer (district), literacy rate is low and peoples are not conscious about their life style
Diamer is the area where AKRSP could not extend its services because people things that
AKRSP represents specific sect and the organization preaches its teachings. Same is the case
with the remote areas of Baltistan and Chitral region.

AKRSP faces difficulty in operating in such a diverse cultural and multi sect environment
where sectarian violation is the order of the day. Because the organization have to balance
every sect in employment and launching projects, which is the big challenge for the
organization.

AKRSP works in collaboration with communities for effective results the cooperation of
communities is necessary, most of the remote areas of NAC have low literacy rate and are not
conscious to improve their lives, so AKRSP has to face difficulty to convince people to
cooperate with the organization.

• Technological Factors

The use of modern technology like cellular phones, computer and internet is getting increase
in most of areas of NAC and rest will be covered in next two to three years. People response
towards this technological revolution is positive, so organizations operating in the region have to
adopt modern technologies in order to satisfy their customers.
AKRSP is the pioneer organization that uses the modern applications of information technology
in NAC. It develops awareness to use technologies in the field of agriculture, gems cutting and
food processing. However AKRSP lacks in field of research and development, update its
agricultural equipments and food processing units as that requires more funds and finance.