| An analysis of the major internal and external influences that affect the SACCO was conducted. Members identified the following opportunities:
1. Increased number of products from the current loan’s profile.
2. Introduction of Income Generating Activities
3. Diversification in our investment
4. Growth room
5. Diversity of skills within member units
6. Training opportunities
On the other hand, several challenges were identified:
- Biblia SACCO has limited resources
- Time constrain especially by management and staff to think strategically.
- Communication structure to members deemed expensive and unproductive.
- Lack of long term development plan
- Lack of motivation to members that would encourage them market the SACCO.
Areas of strength can be summarized as follows:
- Biblia has a strong and willing team in both management and staff.
- The large membership ensures a moderate cash flow cycle
- Biblia has a good common Christian bond since all units are Christian oriented.
- There is good administrative and monitoring structure leading to sound leadership
- Multi disciplinary team within supervisory, management and staff
The SACCO’s main threats were as outlined below:
- The limited resources can lead members to seek alternatives that eventually strain bonding with Biblia.
- Competition from other institutions (Sacco related) can easily make our SACCO irrelevant.
- Corruption in Government can lead to inflation that eventually affects members economically.
- Retrenchment programs can affect the SACCO’s cash flow as members withdraw their shares in large numbers.
- HIV/AIDS epidemic continues to pose a threat as members share their resources with those infected and affected. Little is therefore left for investing.
The table below gives an overview of the most important factors having an actual or potential impact on the SACCO and the possible responses to these factors. The table also outlines the strengths and opportunities that are evident and weaknesses or threats to overcome.
| Area |
Responses |
|
Strengths
- Strong and willing team
- The large membership
- Good common Christian
- Good administrative and monitoring structure
- Multi disciplinary team
|
- Develop a strategy that will ensure hiring of quality staff
- Develop a strategy that will ensure a smooth transition in management.
- Tighten our unit selection criteria to ensure that Christian standards are maintained in admitting new member units.
- Develop a training strategy to ensure good management practices and quality monitoring.
- Develop a strategy of tapping the diverse member skills.
|
|
Weaknesses
- Limited resources
- Time constrain
- Communication structure.
- Lack of long term development plan
- Lack of motivation to members.
|
- Know the needs and goals of members clearly identifying the loaning pattern.
- Source for funding from private sector to sustain our loaning demand.
- Develop e-mail Database and implement weekly/monthly electronic mail to inform and educate members.
- Develop motivational programs to encourage members market the Biblia
|
|
Opportunities
- Increased number of products from the current loan’s profile.
- Introduction of Income Generating Activities
- Diversification in our investment
Growth room
- Diversity of skills within member units
- Training opportunities
- Well trained staff.
|
- Revise the by-laws to include all inclusive scheme e.g. new products, IGA, investment etc.
- Increase loaning products such as home improvement loans, members
- investment needs, etc
- Devise ways of increasing the capital base.
- Devise a marketing strategy to reach out to all evangelical organizations and their senior executives.
- Net work with other institutions such as Micro-enterprise banking units
- Investment to be an agenda in all management meetings.
Make efforts to learn from successful SACCO’s
|
|
Threats
- Members seeking alternative source.
- Competition from other institutions.
- Corruption in Government
- Retrenchment programs
- HIV/AIDS epidemic.
- Low Interest rates on loans by other financial institutions.
|
- Increase Member units
- Increase members from the existing units.
- Increase minimum monthly contributions.
- Reduce loan processing and granting period
- Accept other collateral as opposed to share guarantors
- Introduce instant loaning products
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BIBLIA SACCO LIMITED