Impact of Economic Factors on Charitable Organizations: A Case Study of NCLF

ANY CHARITY
ECONOMIC AND
FINANCIAL
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Impact of economy on business organisation (NCLF) and application of economic theory.....................3
Micro and macro environmental factors affecting charitable organisation (NCLF).................................4
CONCLUSION...............................................................................................................................................6
REFERENCES................................................................................................................................................8

INTRODUCTION
It is very necessary for managers and leaders of the business to understand how certain economic
factors have both positive and negative impact over business performance and its operations.
Smart decision can only be made if such economic factors are properly and reasonably taken into
account which guides management in taking their business to a greater heights. Certain common
economic factors that can have an impact over business activities are taxation system in an
economy, prevailing and future rates of interests and exchange rates, recessionary and
inflationary status of the economy in the past, present and future and the last but not the least is
operation of demand and supply forces in an economy (Neumayr and Handy, 2019). In this
report, by choosing a public sector charity organisation based in UK, that is National Lottery
Community Fund (NLCF), the impact of various micro and macro-economic factors will be
discussed. Along with these economic factors, an environmental analysis will be performed with
the help of SWOT analysis tools meant for studying the internal environmental factors and
PESTLE analysis will be done to explain how both internal and external environmental factors
has affected the chosen organisation that is NCLF which leads to its failure (Li and et.al., 2018).
Also, various economic theories and concept will be simultaneously explained in the report to
highlight the impact of economic forces on the business organisation.
MAIN BODY
Impact of economy on business organisation (NCLF) and application of economic theory
Environmental analysis is generally undertaken to perform the effect of various external factors
on the business organisation. It is considered to be useful for business executives and analyst for
making time decisions in order to beat competitors, enhance business revenue and accordingly
ensure growth and development of the business concern (Cordery and Deguchi, 2018). Economic
factors forms a major part of every business environment affecting the operations of the business
like NCLF here, thus causing their performance either to be improved or worsened off than
before due to the changes occur in the economic forces. Such forces of economy are connected
somehow with money, goods and services and these factors may not sometimes directly affect
businesses but there impact can be judged from the financial state of the business (Hyndman and
McKillop, 2018). Certain factors that are identified which can affect business operations and its
financial performance are interest and exchange rates prevailing in the economy, recessionary or