Effectiveness of Micro and Macro Environmental Analysis in British Red Cross Charity

This study examines the effectiveness of micro and macro environmental analysis in British Red Cross charity, highlighting factors that can positively or negatively affect its performance. It discusses the use of PESTLE and SWOT analysis tools, and identifies areas for improvement in order to achieve the organization's goals. The study also addresses the impact of factors such as political, economic, social, technological, legal, and environmental on the charity's performance.

Economic and
Financial
Management

Executive Summary
This present study shows effectiveness of micro and macro environmental analysis as it
helps organizations in identifying factors which can affect its performance in both positive and in
a negative manner. PESTLE analysis tool is one of the effective tools which help companies in
identifying all external or micro environmental factors including: Political, social, economic,
environmental and other. Some factors affect its performance in a positive manner and some
affect in a negative manner and by analysing all factors it can make changes in its internal
strategies for improving performance and having all positive impact. Further, it also shows
reasons of using SWOT analysis tool as it helps companies in identifying own strengths and
weaknesses. By identifying own weaknesses, companies improve their strategies and focus on
improving all those areas for accomplishing goals by making use of strengths. Lastly, it shows
some areas which non profit organization requires to improve more for accomplishing its goals
like working with other institutions and helping people out in handling their loneliness and also
make them able to face this current Covid-19 situation in an effective manner.

Table of Contents
Executive Summary................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Micro environmental analysis................................................................................................1
Macro environmental analysis................................................................................................3
Conclusion.......................................................................................................................................4
Recommendations..................................................................................................................4
REFERENCES................................................................................................................................7

INTRODUCTION
Economic and financial management refers a method of influencing a process of social
labour in according to the objective laws of social development (Burkaltseva, Dudin and Reutov,
2018). This preset study is based on British Red Cross charity which is an impartial humanitarian
network formed in 1870. The main responsibility of this non profit organization is to help people
in crisis in the UK and overseas. This study is going to show effectiveness of analysing micro
and macro environmental factors. Analysis of all these factors like social, political, economic,
strengths, weaknesses help company in identifying factors which can have negative impacts on
its performance. After identifying all factors, company makes changes in its internal strategies
for improving image and performance as well. Some factors which have negative effects on
British Red cross include: economic, environment, social and legal. As company has to follow
all laws, handle ageing population which increase burden on it.
MAIN BODY
Micro environmental analysis
British Red Cross charity is one of the neutral and impartial humanitarian whose main aim is to
help vulnerable people without discrimination and improve their overall health. This non profit
organization is working for improving health and helping people but there are several business
environmental factors which can affect its performance in a critical manner. canal these factors
can create several barriers in the path of its success (Perera, 2017). So by analysing micro factors
it can make changes in its strategies and can improve its performance. Some micro
environmental factors include:
Political: In this context, it is found that British Red Cross get governmental support because
they work for vulnerable people and by tax and grants relief; government is helping such non
profit organization. For carrying out all main operations it also receives financial help from
government and it is one of the main financial sources which make it able to perform all
function, accomplish goals and improving better community.
Economic: Economic crisis affected British Red Cross in a negative manner. Due to some
changes like increasing rate of ageing population, higher demand of health care services it has to
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face some problems, which also affect health and performance of people. Increasing rate of
health care demand and economic crisis affecting its performance in supporting people. There is
a lack of resources, lack of availability of volunteers and all these affecting overall performance.
Social: Demographic issues is one of the main factor which affect this company the most in a
negative manner and increase burden on it because of rising in ageing population. There are
several people are available who can work for people but ageing population requires more
assistance which can increase pressure on all staff (Gheibi and et.al., 2018). It requires more
volunteers for helping older people and British Red cross is focusing on making people aware
about it and getting more volunteers.
Technological: It is found that initially it did not have online presence but in the year of 2017
British Red Cross improved its image as its all skilled staff and volunteers supported those who
got affected by the terror attacks in London. They also launched a new form of support in
response to emerging needs of UK. It is making use of technology and making people aware
about it and attracting volunteers for supporting people around them and improving community.
Legal: It is found that there is some legislation such as contract law which affects this charity the
most. It is the main law which applies to them and according to this law they have to make sure
that it provides safety to all its volunteers. They have to submit all detailed information for the
contract. It is beneficial for volunteers because they can file a lawsuit and seek for help if any
accident and problem occur to them (Political and Legal Factors of British Red Cross, 2020). It is
increasing responsibility of this non profit organization as they need to spare out time to fill all
forms which is time consuming and can affect its performance. It is also found that there are
some paid employees so, for protecting against lawsuit it also has to implement and follow all
rules of employment law.
Environmental: It is one of the main factors which is affecting performance of British Red
Cross and increasing pressure, Current changes in environment like Covid-19 is affecting this as
there is a lack of access to water, hygiene, sanitation etc. There are some factors which are
creating barriers in providing effective services and handling environmental changes situation
such as: eligibility restriction, legal restrictions, high service cost, language barriers, and lack of
communication or coordination between care providers (The Primary Humanitarian Impacts of
Covid-19 on British Red Cross, 2020). All these factors have affected performance and image of
this company to the great extent.
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So, from the above discussed all factors it can be said that there are several factors which are
affecting its performance in a negative manner and it requires focusing on all these areas and
making situations in its favour.
Macro environmental analysis
There are some internal or macro environmental factors such as its own strengths which
can help it out in accomplishing goals and taking advantages of opportunities. Whereas, some
weakness can affect its performance and create some threats so, it is important to identify all
these factors for reducing negative impacts.
Strengths
Strong brand equity: One of the main strength of this charity is it has strong brand equity as it
was founded in 1870 and since then it is working for vulnerable people. It has won trust and
awareness response as British’s emergency response. It has also accomplished its mission which
is to mobilise the power of humanity so that communities can prepare for and can recover from
crisis.
Long history: British Red Cross charity has a long history as since 1870 it is helping people in
times of natural disaster and war. So, it can be said that it is one of the longest non profit service
provider in this modern history (Gürel and Tat, 2017).
Loyal volunteer database: This charity has around 32,500 volunteers and 3,500 staff who are
loyal and have willingness of working for vulnerable people. It is one of the main strength of this
charity which makes it able to accomplish its goals and improving image.
Weaknesses
Lack of online presence: British Red Cross does not have an active online presence and it
restricts some people from joining courses and donating to their causes.
Lack of innovation: British Red Cross does not have an office tasked with any service
innovation.
Limited budget: British Red Cross has limited funds and it has faced some serous budgetary
problems which create several problems in its performance and completing functions.
Opportunities
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Strategic alliance: It is stated that this non profit organization has a long history and brand
equity which can make it able to have strategic alliance and work with other institutions for
expanding services to people of America and beyond.
Expansion of services: It is well known non profit organization and with the help of skilled staff
it can expand its services like prediction of drugs, food supplies to people and protecting people
against unfair treatment (Engelbrecht, Lindeman and Hoermann, 2019).
Threats
Government policies: Some policies and laws like taxation, employment and contract laws are
increasing pressure on it and affecting its performance.
Competition: There are several other non profit organizations and increased competition in this
time of economic crisis is one of the main threats for this company.
Conclusion
From above discussion, it has been summarized that macro and micro environmental factors
have several critical impacts on overall performance of non profit organization whose main aim
is to protect vulnerable people against unfair treatment, wars and improving their health.
Analysis of macro environmental factors or internal business environmental factors also play an
important role as it allows companies in reducing factors which can have negative impacts by
making changes in internal strategies and focusing on areas which needs to be improved. Further,
it has discussed effectiveness of PESTLE analysis model which also allow companies in
identifying all micro environmental factors which can help company in accomplishing goals and
also those factors which can create barriers in accomplishing goals. By analysing all factors,
company can develop some strategies which can help them out in taking advantages of external
opportunities and reducing threats and improving image in the eyes of people.
Recommendations
On the basis of above discussion it is found that there are some areas on which British Red Cross
require to focus the most. So, in this context, it can be recommended that it should secure
sustained funding for tackling loneliness after this Covid-19. They should need to include
ensuring that voluntary sector organizations are committed in tackling loneliness by making sure
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that local authorities and NHS bodies are well equipped to reach those people who left behind
because loneliness can create several problems for people. In addition, it can also be suggested
that British Red Cross should focus on working or collaborating with other specialism and
voluntary organizations for reaching out to global people who are in need. For that they require
to share their learning, knowledge (Makori, 2019). It can help them out in developing effective
solution, improving coordination among staff and drive forward a more holistic approach to
handle changing situations and improving overall health of people.
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REFERENCES
Books & Journals
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Gheibi, M. and et.al., 2018. Controlling air pollution in a city: A perspective from SOAR‐
PESTLE analysis. Integrated environmental assessment and management, 14(4),
pp.480-488.
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International Social
Research, 10(51).
Engelbrecht, H., Lindeman, R. and Hoermann, S., 2019. A SWOT analysis of the field of virtual
reality for firefighter training. Frontiers in Robotics and AI, 6, p.101.
Makori, E.M., 2019. Response Strategies And Sustainability Of Hebrew Immigrant Aid Society
In Kenya To Changes Of The Macro-Environmental Factors (Doctoral dissertation,
UoN).
Burkaltseva, D., Dudin, M. and Reutov, V., 2018. Ensuring economic security at different levels
of economic management. Монографии сотрудников ИПР РАН.
ONLINE
Political and Legal Factors of British Red Cross. 2020. Online Available through: <
https://www.slideshare.net/LewisAppleton/political-legal-and-social-factors-further>
The Primary Humanitarian Impacts of Covid-19 on British Red Cross. 2020. Online Available
through: <file:///C:/Users/Administrator/Downloads/Rapid-response-primary-impacts-
covid-19.pdf>
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