Title: A Critical Evaluation of BRAC's Strategic Approach

Introduction

BRAC, formerly known as Bangladesh Rural Advancement Committee, is one of the world's largest non-
governmental development organizations. Established in Bangladesh in 1972, BRAC has since expanded
its reach globally, providing essential services and promoting development across various sectors,
including education, healthcare, microfinance, and social development. This report aims to critically
evaluate BRAC's strategic approach using models and frameworks explored in the module, particularly
drawing from the works of Whittington, Angwin, Regner, Johnson, and Scholes in "Exploring Strategy"
(2022).

Overview of BRAC's Strategy

BRAC's strategy revolves around its mission to alleviate poverty, empower communities, and improve
the overall well-being of the disadvantaged. Its core principles include inclusivity, innovation, and
sustainability. BRAC has a diversified portfolio of programs and services, making it a complex
organization to assess strategically. To provide a comprehensive evaluation, we will use Whittington's
Classical, Evolutionary, and Processual approaches to strategy.

Classical Approach

The Classical approach emphasizes a rational and linear process of strategy formulation and
implementation. It assumes that objectives can be precisely defined, and strategies can be planned in
advance. However, BRAC's experience challenges this model. The organization's evolution from a small-
scale relief effort to a global development giant suggests that it has adapted and changed in response to
its environment.

BRAC's decentralized structure and grassroots presence in multiple countries may not align with the
Classical approach's top-down hierarchy. Instead, it embraces a more organic and context-specific
decision-making process, which is indicative of the Evolutionary approach.

Evolutionary Approach

The Evolutionary approach posits that strategy evolves incrementally through experimentation and
adaptation. BRAC's journey aligns well with this model. It began as a small-scale initiative and has
continually expanded and diversified its activities in response to the changing needs of the communities
it serves. Its ability to adapt its strategies to different cultural, social, and economic contexts is a
testament to its evolutionary approach.
However, the Evolutionary approach is not without its challenges. BRAC's rapid growth and
diversification could lead to inefficiencies and a lack of coherence in its overall strategy. Ensuring that all
programs align with its core mission and values while maintaining flexibility is a complex balancing act.

Processual Approach

The Processual approach recognizes that strategy emerges through a combination of intended and
emergent processes. BRAC's strategic decisions often involve a blend of planned initiatives and
responses to unexpected challenges. For instance, during the COVID-19 pandemic, BRAC swiftly adapted
its programs to address new and urgent needs, demonstrating its ability to embrace emergent
strategies.

However, the Processual approach also highlights the importance of organizational politics and power
dynamics in shaping strategy. While BRAC emphasizes a bottom-up approach and community
involvement, it is essential to scrutinize whether power imbalances exist within the organization and
how they might influence decision-making and resource allocation.

Competitive Advantage and Positioning

Using Johnson and Scholes' Strategic Position and Choices framework, BRAC's competitive advantage
and positioning can be evaluated. BRAC's competitive advantage primarily lies in its extensive grassroots
network, deep understanding of local contexts, and its ability to mobilize resources from a diverse range
of donors and partners. These strengths have enabled BRAC to maintain a strong presence in the
development sector.

However, BRAC faces challenges in positioning itself strategically. Its diverse portfolio of programs may
dilute its brand and make it challenging to communicate a clear identity to stakeholders. Additionally,
the organization must continually assess and adapt its positioning in a rapidly changing development
landscape to remain relevant and effective.

Stakeholder Analysis

Whittington's Stakeholder Power and Interest Matrix can be applied to evaluate BRAC's approach to
managing its stakeholders. BRAC engages with a wide range of stakeholders, including donors,
government agencies, local communities, and beneficiaries. Mapping these stakeholders according to
their power and interest allows for a more targeted and strategic approach to stakeholder management.
BRAC's ability to balance the interests of diverse stakeholders is crucial for its success. It must maintain
the trust and support of donors while remaining accountable to the communities it serves. Careful
stakeholder analysis and engagement are essential to navigating these complex relationships effectively.

Resource Allocation and Capability Analysis

To assess BRAC's resource allocation and capabilities, the Resource-Based View (RBV) framework can be
applied. BRAC has built a vast resource base, including financial resources, human capital, and an
extensive network of volunteers and staff. However, the RBV framework encourages us to examine
whether these resources are strategically allocated to achieve the organization's objectives.

A critical evaluation should explore whether BRAC optimizes its resource allocation across its various
programs and regions. It must ensure that resources are directed toward activities that generate the
most significant impact and align with its long-term strategic goals.

Critique of BRAC's Strategy

While BRAC has achieved remarkable success in its mission to alleviate poverty and empower
communities, several areas warrant critical examination:

a. Over-Diversification: BRAC's extensive portfolio of programs may lead to over-diversification,

potentially stretching its resources and focus thin. It must continuously assess the impact and relevance
of each program to avoid mission drift.

b. Risk Management: As a global organization, BRAC is exposed to various risks, including political,
economic, and health-related risks. It is vital for BRAC to have robust risk management strategies in
place to ensure the sustainability of its operations.

c. Monitoring and Evaluation: BRAC's commitment to impact measurement and transparency is

commendable. However, it must continually improve its monitoring and evaluation systems to provide
stakeholders with evidence of its effectiveness.

d. Innovation: While BRAC is known for its innovation, it must remain adaptable and open to disruptive
changes in the development sector, such as the rise of digital technology and new business models for
social impact.
e. Governance and Accountability: Ensuring transparency, accountability, and good governance within
the organization is essential to maintaining the trust of donors and beneficiaries.

Conclusion

BRAC's strategic approach, influenced by the Classical, Evolutionary, and Processual models of strategy,
has enabled it to become a global leader in development. Its strengths lie in its adaptability, extensive
grassroots network, and deep understanding of local contexts. However, challenges such as over-
diversification, risk management, and governance require ongoing attention.

To remain effective and relevant, BRAC should continue to leverage its evolutionary approach to adapt
to changing circumstances while maintaining a coherent strategic focus. Additionally, it must place
greater emphasis on strategic resource allocation and risk management to ensure the sustainability of
its mission to alleviate poverty and empower communities. As a model for non-governmental
organizations worldwide, BRAC's strategic journey provides valuable insights and lessons for the broader
development sector.