Prepared for:

Mrs. Cherrie Prelle D. Pascual

Prepared by:
Compay, Ceasar june V.
Ambatali, Jhun Albert B.
Masinna, Jonabelle B.
Corpuz, Joelyn A.
Gapuz, Rose Ann S.
Maddela, Jhane Crisel A.
 Strategic Audit of a Corporation
For the World Wildlife Fund for Nature (WWF) Case

I. Current Situation
A. Current Situation
As the world’s leading conservation organization, World
Wildlife Fund works in 100 countries and is supported by more than
one million members in the United States and close to five million
globally WWF's unique way of working combines global reach with
a foundation in science, involves action at every level from local to
global, and ensures the delivery of innovative solutions that meet
the needs of both people and nature. World Wildlife Fund was
founded in April 29, 1961, and its current headquarters situated in
Gland, Switzerland. WWF employs about 6,200 full-time staff
members who manage about 1,300 projects on the average. World
Wildlife Fund by some measures is the world’s largest independent,
nonprofit conservation organization working in 100 countries,
supported by over 1 million members within the United States and 5
million members globally. The organization has about 6,200 full-
time staff members that manage an average of 1,300 projects at
any one time. Since being founded in 1961, it has invested close to
$10 billion in more than 13,000 conservation projects in over 150
countries. Within the United States, the WWF operates as a
nonprofit organization and is headquartered in Washington, DC.
WWF opened a new office in Myanmar in late 2014 after partnering
with the national government to achieve shared goals. Myanmar,
located in southeast Asia, has a very rich natural cap-ital., including
three of the world’s most pristine rivers, over 250 mammal species,
and more than 1,000 bird species.

B. Strategic Posture
 Mission:
 To conserve nature and reduce the most pressing threats to the
diversity of life on Earth.

Vision:

 To build a future in which people live in harmony with nature.

1. Objectives: What are the corporate, business, and functional
objectives? Are they consistent with each other, with the mission and
objectives, and with the internal and external environments?
2. Code of Ethics:
 Remain global, multicultural, and non-party political
 Objective examination of available information and a strong
focus on concrete conservation solutions
 Highlights the strategy of partnership and collaboration to
accomplish the mission as well as a focus on cost-effective
operations
3. Strategies:
 Protect and restore species and their habitats
 Strengthen local communities’ ability to conserve the natural
resources
 Transform markets and policies to reduce the impact of the
production and consumption of commodities
 Ensure that the value of nature is reflected in decisions made
 Mobilize hundreds of millions of people to support conservation
 To partner with organizations to positively impact seven areas
4. Policies: What are the corporation’s policies? Are they consistent with
each other, objectives, and strategies, and with the internal and
external environments?
 Actively seeks to influence governments in the US
  Globally pursue conservation actions as well as actively
supporting government initiatives that align with organizational
goals
 Apply new penalties to organized crime and illegal wildlife trade
5. Do the current mission, objectives, strategies, and policies reflect the
corporation’s international operations, whether global or
multidomestic?
 Yes

II. STRATEGIC MANAGERS

A. Board of Directors
 Composed of leaders from the scientific.
 Composed of 15 board of directors from the scientific
conservation ad business communities.
 Exercises overall responsibility for the policies.
 Provides advice and counsel on a policy and operational
matters.
 The composition of the board is elected for three years’ terms.
 Board members observe and annually sign WWF’s conflict of
interest policy

B. Top Management
 World Wildlife Fund(WWF’s) have 15 leaders.
 Most of them are Senior Vice President.
 Responsible in determining, managing and implementing the
WWF’s high-impact strategies.
 Oversee and in control of the WWF’s management to transform
their overall performance.
 Their age range is 30 above.
  Leaders of the WWF are mostly from US an American.
 They are all professionals, well-experienced and works with
expert.
 Most of them are doctorate and having their own profession.

III. External Environment (EFAS Table; see Exhibit 1)

A. Natural Environment
1.
a. Efforts to improve and sustain fresh water supplies globally.
b. Global condition of wildlife and wild areas has steadily declined.
2. Do these forces have different effects in other regions of the world?
 Yes, the global condition of wildlife and their areas depends on their
effort to be able to manage and improve these forces.

B. Societal Environment
A. Economic
a. Global awareness of wildlife welfare. O
b. Developing a green economy that can serve as a global model of how
to improve life. O
c. World’s population expected to grow to 9 billion by 2050. T
d. Wildlife populations of animals (mammals, birds, reptiles, amphibians,
and fish) have declined by 52% over the last 40 years. T
B. Technological
a. WWF website places the rate loss of forests globally at a staggering 48
football fields per minute. T
C. Political-Legal
a. Partnering with the national government to achieve shared goals. O
b. WWF actively influence the governments in the US to pursue
conservations actions as well as actively supporting initiatives to align
with the organizational goal. O
 D. Sociocultural
a. Establishing the Bioplastic Feedstock Alliance where the leading global
companies have committed to the development of plastic made from
plant-based material. O
b. 1 billion people rely on fish as an important part of their diet and that
more than 520 million livelihoods are supported by fishing and its
related activities. T

1. Are these forces different in other regions of the world?

Yes, economic, technological, political-legal, sociocultural may differ
in other region of the world since they geographically separated besides,
they also differ in terms of culture and law.

C. Task Environment
1. What forces drive industry competition? Are those forces the same
globally or do they vary from country to country? Rate each force as high,
medium, or low.
a. Threat of new entrants
Threat of new entrants high:
 Existing regulations support the entry of new players T
 Retaliation from the existing market players T

Threat of new entrant’s low:

 Product differentiation is high and customers place high

importance to the unique experience O
 Consumers’ psychological switching cost is high and existing
brands have established a loyal customer base O
b. Bargaining power of buyers
Buyers’ power high:
  More concentrated customer base increases their bargaining
power against WWF T
 If there are few in number of buyers whereas a number of
sellers (business organizations) are too many T
 Buyer’s ability to do backward integration (shows the buyer’s
ability to produce the products themselves instead of purchasing
them from WWF) T

Buyers’ power low:

 Lower customer concentration (customer base is geographically

dispersed) O
 Customers’ inability to integrate backwards O
c. Threat of substitute products or services
Threat of substitutes high:
 Psychological switching cost of moving from industry to
substitute products T
 Substitute product offers the same or even superior quality and
performance as offered by WWF’S product T

Threat of substitutes low:

 Customers cannot derive the same utility (in terms of quality and
performance) O
d. Bargaining power of suppliers
Supplier’s power high:
 Suppliers have concentrated into a specific region, and their
concentration is higher than their buyers T
 Force is strong when the cost to switch from one supplier to
other is high for buyers (ex. contractual relationships) T
 Suppliers’ forward integration weakens the WWF’S position as
they also become the competitors in that area T
 High product differentiation offered by suppliers T
 Suppliers’ power low:

 Suppliers are not concentrated O

 Switching costs are low O
 Substitute products are available O
 WWF is highly price sensitive and has adequate market
knowledge O
e. Rivalry among competing firms
Rivalry high:
 Market players are strategically diverse and target the same
market T
 Customers are not loyal with existing brands; easier to attract
others’ customers due to low switching costs T
 Competitors with equal size and offering undifferentiated
products tend to adopt aggressive strategies against each other
T

Rivalry low:

 Industry is growing at a fast rate O

 There is a clear market leader O
 Exit barriers are low; products are highly differentiated (firms
can easily leave the industry without incurring huge losses O

2. What key factors in the immediate environment (that is, customers,

competitors, suppliers, creditors, labor unions, governments, trade
associations, interest groups, local communities, and shareholders) are
currently affecting the corporation? Which are current or future threats?
Opportunities?
- In the key factors is work globally, with every sector at every
level. We work to influence people to a sustainable choices and
decisions, including those work in a government and set policy
 that impacts nature. In overall 1.1 million supporters, WWF’s
partners, projects and experts are making a difference in
creating a healthy future for our planet. Partnership role in
WWF’s is to influence the course of conservation though
collaboration with a range of extra ordinary partners. For the
world’s leading conservation organization WWF’s works 100
countries around the globe. The unique way of working is
combines global reach with a foundation. No strategy will
succeed without the relentless commitment of extra ordinary
people.

D. Summary of External Factors

Which of these forces and factors are the most important to the corporation
and to the industries in which it competes at the present time? Which will be
important in the future?

Global awareness of wildlife welfare is one of the main opportunities

presented in WWF with a weight of 0.05 and a weighted score of 0.25.
Collaboration with the national government and other several organizations
that has the same goals related in conserving nature, will guide the
organizations in allocating funds in supporting green economy development.

Some threats and its negative impacts cannot be undone by the

organizations, what they can do is to provide support in dealing with their
future developments and implementations in conserving nature and
sustainable development. The main threat which is “deterioration of wildlife
population” shown in the WWF website and EFAS table with a weight of 0.07
and a weighted score of 0.88 are economic environment. Considering that
this threat is very challenging to deal with since it involves a lot of factors such
as human behavior and their lifestyle, which may be difficult to deal with,
WWF can still establish solutions such as partnering with other companies for
Bioplastic Feedstock Alliance and replacing other thing such plastics that
 contains hazardous materials for the environment with papers and non-toxic
materials and implement them to lessen the deterioration of wildlife
population.

IV. Internal Environment (IFAS Table; see Exhibit 2)

A. Corporate Structure
1. divisional structure: WWF were a tea based structure and works toward the same
goal sustainability
2. process-based structure: employees are in department that are managed by
executives
B. Corporate Culture
1. Partnered with big organization which seemed to adapt and accept the dominance
of WWf’s culture.
2. Quality key ingredients- commitment to quality by a group of passionate and
committed individuals who sought to secure the protection of places and species
that were threatened by human development.
C. Corporate Resources
1. Marketing
 World’s largest independent, nonprofit conservation organization with a
strong brand name & a long respected history or successful track records.
S
 WWF partnership which includes Avon, Care and Coca Cola. Avon with
$11 billion in annual revenue is a large producer of brochures and
consumer paper products with distribution in over 120 countries. S
 Brand name is well known to a lot of people especially environmentalist. S
  Strong impact on marketing advertisements. S

2. Finance
 Had an expense of only 0.0985 for each $1 raised making it one of the top
non-profit organizations. ($291.49M operating revenue were generated in
2014 from $28.7M fundraising expenses). S
 77% of revenues were spent in direct support of conservation programs. S
 Administrative expense and fundraising expenses represent only 4.8%
and 10.8% of total expenses respectively. S
 According to Charity Navigator, WFF’s financial performance which were
measured by financial metrics once proved again that it is an effective and
efficient organization in the area of fundraising and allocation to program
expense while minimizing external expenses. S
 Monetary assistance provided by the government and other private
sectors. S
 In-kind contribution decreased by 27% from $64.3M in 2013 to $46.96M in
2014 which is not good since funding relies heavily in contribution. W
 Individuals contributed 32% while corporations contributed only 4% of total
revenue. W
 Operating expense on Public Education Program decreased by 20.83%
from $81.74M in 2013 to $64.71M in 2014. W

3. Research & Development

 Human needs initiative on the co-existence of both rural people and wild
animals without having negative impact on the natural habitats. S
 WWF’s stand in Cecil the Lion’s killing issue when they tolerated hunting
for sports. W
 Even with WWF’s efforts to save Rhino poaching has increased by
9.346% from 2007 to 2014. W
 Has a broad range of objectives, which may lead to employee exploitation
or nonfulfillment of the goal W
  Company culture differs from one division to another due to geographical
separation. W

4. Operations
 Recognizing its impact on the environment. S
 In support of global conservation, Bank of America has offered a WWF
visa card since 2009. S
 WWF forms partnerships as a key element of its strategy. S
 Through its partnership with Coca Cola, both companies focus on efforts
to improve and sustain fresh water supplies globally and specifically
address Coca Cola’s value chain. S
 Have a broad focus, mission, and vision which may be difficult to attend
to. W
 Willingness to make compromise (allows hunting as a sport which many
sees a betrayal). W
 The business model can be easily imitated by the competitors. W

5. Human Resources
 Strong organizational code of ethics to remain global, independent,
multicultural, and nonparty political. S
 Has a great global presence (operates in 100 countries, 1M members in
the US, SM members globally, 6,200 fulltime staff) S
 Low pay to employees which is a factor of high employee turnover. W
 Inability to attract the best hand in the industry to manage the organization
due to factors such as low pay and lack of employee support. W
 Limited human resources especially experts who can research actions for
environmental care. W

6. Information Systems
  The current ratio increased from 2.28 in 2013 to 2.35 in 2014 while the
working capital has a ratio of 1.59:1. S
 WWF’s successful past projects including Wildlands and Human Needs
initiative on the co-existence of both rural people and wild animals without
having negative impact on the natural habitat. S
 No distinguishing characteristics from competitors. W
 Subject to different laws and regulations based on the countries they are
involved in. W

V. Analysis of Strategic Factors

A. Situational Analysis (SWOT) (SFAS Matrix; see Exhibit 3)
1. Strengths
 Quality WWF’s nurtured culture
 Financial position
2. Weaknesses
 Company culture differentiation
 Global positioning
3. Opportunities
 Global awareness of wildlife welfare
 Green economy development
4. Threats
 Deterioration of wildlife population
 Contributors concentrated into a specific region

VI. Strategic Alternatives & Recommended Strategy

A. Strategic Alternatives
1. Growth through Concentric Diversification: Strengthening protected
area management to protect the global and regional priority species.
a. Pros
 Combating wildlife crime, including illegal poaching and illegal wildlife
trade, protection and restoration of natural habitats of wider scope.
b. Cons
WWF have limited human resources especially experts who can
research actions for environmental care.

a. Pause Strategy: Provide productively incentive schemes to

employees with innovative ideas in creating new programs and
services
b. Pros
WWF need to have financial stability and organize administrative
control with its recent plans and employees.
c. Cons
Having a broad range of objectives, which may lead the employee
exploitation or nonfulfillment of the goal.
a. Retrenchment: Global market by working and partnering with
governments, organizations, and other private entities from various
countries.
Pros
Boost donations through IKEA, Avon, Coca cola by creating
fundraising programs to donate a part of the selling price to WWF.
b. Cons
WWF have more than a hundred countries supporting and protecting.
Economic downturns which can lead to limited grant from the
government.
B. Recommended Strategy
1. The group believes that strengthening public and private collaborations
focusing on the Corporate Social Responsibility (CSR) initiatives of those
institution need to be emphasize and have further improvement.
Therefore, enhancing the partnership between government, organizations
and other private entities can be the best strategy of the company. This
recommendation has the ability to resolve and will help completely
 banning illegal fishing. The short term goal of this strategy is to convince
governments to approve the Port States Measure Act (PSMA). However,
it’s long term goal is the approval of PSMA to eliminate illegal fishing
through increased legislation and regulations for ensuring trace ability
within the global. The impact of the recommended strategy is to address
illegal fishing will positively contribute to equitable growth and
empowerment of the people who rely on the oceans for food and
income.ss
2. Protecting biodiversity
 Protecting ecologically sensitive species and areas and to improve
the management of the natural environment.
3. Reducing human footprint
 Promoting sustainable solutions to reduce humanity’s ecological
footprint, with an emphasis on climate change and lifestyle, aiming
at a balanced relationship between humanity and nature.
VII. Implementation


VIII. Evaluation and Control



EXHIBIT 1 EFAS Table for World Wildlife Fund for Nature, 2015
Weighted
External Factors Weight Rating Score Comments

Opportunities
 Global awareness of
wildlife welfare 0.05 5.0 0.25 Will take time
 Green economy 0.04 4.3 0.17 May take lot of time and
 development effort
 Collaboration or
partnership with
national government 0.01 3.0 0.03 Beneficial for both
 Influencing
government in
pursuing
conservation actions 0.02 4.0 0.08 Will take time
 Establishing
Bioplastic Feedstock
Alliance 0.03 4.0 0.12 Good for their goals
Geographically
 Lower customer dispersed customer
concentration 0.03 1.5 0.05 base
 Customers cannot
derive the same
utility (in terms of
quality and Create customer loyalty/
performance) 0.01 2.6 0.03 attract new investors
 Industry is growing at
a fast rate 0.03 2.6 0.09 Good, but risky
Threats
 Expected population A threat to natural
growth by 2050 0.02 2.8 0.06 habitat
 Huge percentage of
people rely on fish as
an important part of
their diet and
livelihoods 0.07 4.4 0.88 Well positioned
 Loss of forests 0.06 4.3 0.26 May not be accurate
globally at a
 staggering 48 football
fields per minute
 Retaliation from the
existing market Investors/ Contributors
players 0.08 1.8 0.15 decrease
 Substitute product
offers the same or
even superior quality
and performance as Product lacks
offered by WWF’S
0.09 1.3 0.12 uniqueness
product
 Contributors have
concentrated into a
specific region, and
their concentration is
higher than their WWF weak in other
buyers 0.11 2.4 0.30 regions
 High product
differentiation offered
by suppliers 0.15 2.8 0.42 WWF limited services
 Market players are
strategically diverse
and target the same WWF low quality
market 0.20 3.0 0.21 distinctiveness
TOTAL 1.00 2.34

EXHIBIT 2 IFAS Table for World Wildlife Fund for Nature, 2015
Weighted
Internal Factors Weight Rating Score Comments

Strengths
 Quality WWF’S 0.15 5.0 0.75
 nurtured culture
 Global Partnership 0.20 4.0 0.8
 Financial Position 0.10 4.5 0.45
 Advertisements 0.05 3.0 0.15
 Global Goal on
Adaptation 0.10 3.6 0.36
Weaknesses
 Process-oriented
R&D 0.02 3.0 0.06
 Global positioning 0.08 3.5 0.24
 Manufacturing
facilities 0.10 2.0 0.2
 Company culture
differentiation 0.15 5.0 0.75
 Limited human
resources 0.05 4.0 0.2
1.00 3.96

EXHIBIT 3 SFAS Table for World Wildlife Fund for Nature, 2015
 I
N
T
E
R
M
E
S D
H I L
O A O
Weigh Weighted R T N
Strategic Factors t Rating Score T E G Comments
 Quality WWF’s
nurtured Quality key to
culture (S) 0.16 3.3 x success
0.53
 Financial Average to high
position (S) 0.04 4.5 x x debt
0.18
 Company
culture
differentiation
(W) 0.14 3.1 x x WWF quality
0.43
 Global
positioning (W) 0.23 4.6 x x Over 100 countries
1.06
 Global
awareness of
wildlife welfare
(O) 0.11 5.0 x Will take time
0.55
 Green
economy
development May take lot of time
(O) 0.18 3.5 x x and effort
0.63
 Deterioration of
wildlife Possibility of specie
population (T) 0.09 4.3 x extiction
0.39
 Contributors
concentrated
into a specific WWF weak in other
region (T) 0.05 3.0 x x regions
0.15
1.00 3.92