Economic and Financial Management: Analysis of British Red Cross Charity

Economic and Financial
Management

Executive Summary
This project report is about an organization that has failed. The chosen organization is British
Red Cross charity which is not for profit organization or non government organization (NGO).
This report contains analysis of micro and macro economic factors that makes chosen
organization face failure. To support given analysis; the impact of economy on business
organizations has been evaluated.
The generally accepted goal of for-profit financial management is to increase investor wealth by
increasing the cost of the organization's supply. Typically, this involves maximizing the benefits
of fair risk through revenue expansion or cost reduction, or both. As for the non-investor
foundation of the British Red Cross Charity has aims to provide services to incapable person
rather than benefit from it, it is clear that the usual budget management model is not appropriate.
The goal of money management for the British Red Cross is to ensure that revenues can be
sustained by advancing the underlying causes. The British Red Cross, which is donor-funded
(reflecting most of the NPOs examined in this study) has a key purpose of 'expanding grant
capacity', in particular to ensure that donor-donated funds will be used in the way most efficient
imaginable.
Financial management is usually broken down into three general classifications, namely specific
capital structure, capital planning, and non-fixed budget management (also known as working
capital management). However, this grassroots association does not usually create its own salary
and relies on outside sources to fund it, perform a duty, with its promise of an interesting month-
to-month return, incredibly dangerous and from now on unwanted.

Table of Contents
1. Introduction..................................................................................................................................3
2. Environmental analysis................................................................................................................4
2.1 PESTLE analysis...................................................................................................................4
2.2 SWOT Analysis.....................................................................................................................5
3. Recommendations and conclusion..............................................................................................7
References........................................................................................................................................8