Impact of Micro and Macro Environment Factors on Macmillan Charity

The report covers the micro and macro environment factors having influence and impact over the organisation. An organisation has to manage all the factors to run the operations effectively. The report provides about the micro and macro environment factors affecting the Macmillan Cancer Support charity. It is among the largest charities of UK working for cancer patients. The charity is entrusted with number of organisation and donors for the social welfare of people suffering from the cancer. Financial and economic management is very essential for the charity for running the operations as it receives funds from different sources. There are high areas of misappropriation of funds that could affect the charity significantly. Effective analysis of the organisation and environment is to be performed to manage the activities of charity and framing strategies that will help it to have sustainable growth.

ECONOMIC & FINANCIAL
MANAGEMENT

EXECUTIVE SUMMARY
The report covers the micro and macro environment factors having influence and impact
over the organisation. An organisation has to manage all the factors to run the operations
effectively. The report provides about the micro and macro environment factors affecting the
Macmillan Cancer Support charity. It is among the largest charities of UK working for cancer
patients. The charity is entrusted with number of organisation and donors for the social welfare
of people suffering from the cancer. Financial and economic management is very essential for
the charity for running the operations as it receives funds from different sources. There are high
areas of misappropriation of funds that could affect the charity significantly. Effective analysis of
the organisation and environment is to be performed to manage the activities of charity and
framing strategies that will help it to have sustainable growth.

TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................................................2
MACMILLAN CHARITY..............................................................................................................1
INTRODUCTION ..........................................................................................................................1
ENVIRONMENT ANALYSIS ......................................................................................................1
Factors impacting the Charity .....................................................................................................1
Analysis of the Micro and Macro Environment factors and their impacts over the Charity.......3
RECOMMENDATIONS AND CONCLUSIONS .........................................................................4
REFERENCES................................................................................................................................6

MACMILLAN CHARITY
INTRODUCTION
Macmillan Cancer Support is amongst the largest charities of UK and it provides special
health care information and the financial support to the people who are affected by the cancer. It
looks at emotional, social and the practical impacts cancer could have and the campaigns for
cancer care. The aim and goals is of reaching and improving lives of the people having cancer in
UK. The charity is based in the London and work in the partnership with cancer research
organisations and partner of National Cancer Research Institute. It hosts several fund raising
events that includes golf, running and the cycling events. It has also faced criticism on adverts on
Google and Facebook. The charity is facing issues due to the pandemic that is affecting the
revenues. Key micro factors affecting the charity is internal staff and management as several job
cuts are made. At macro level economic and political factors are mainly impacting the
Macmillan.
ENVIRONMENT ANALYSIS
Factors impacting the Charity
To analyse the impact of different macro and micro environmental factors PESTLE
analysis has been conducted. Microeconomic factors are those that impact the organisation at
individual level where the macro factors are those that impact the whole business environment
like rules and regulations made government and countries. There are several micro and macro
factors affecting the Macmillan and which could lead to its failure if not responded adequately.
PESTLE analysis of MACMILLAN
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Figure 1 Macro factors affecting business
(Source: Pestle analysis, 2020)
Political factors
The charities are affected by the political change. Volatile political environment often is
detrimental to well-functioning of the businesses. Charities receives considerable part of their
incomes through political routes. Due to pandemic of Covid-19 charities are also facing issues.
The compliance requirements and high restrictions are impacting operations of business.
Charities are not given tax reliefs in current scenario. There are strict impositions of laws and
have to comply set structured routes for accepting deposits that many times affect the operations
of charity. At micro level the Macmillan has to comply with all the legal requirements as this
could lead to failure of charity. The strict lock downs and regulations of the government have
brought the revenues to very low level.
Economic Factors
Economy also impacts the charities at large like other business. Like in the event where
thriving economic conditions are beneficial for the organisations the lower growth affects the
organisations negatively (Khomyshyn, 2017). The economy is being affected at macro level and
its impact are significant on the different businesses. Economy is very low and this has decreased
the per capita income of the individual. People and organisations are facing survival issues which
makes it very hard for them to make charity. Due to this charity is not receiving adequate
donations and contributions for running the charity which is affecting the Macmillan at micro
level.
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Social Factors
Charities are mainly associated with the social welfare for uplifting vulnerable sections of
the society. The charity of Macmillan is concerned towards providing cancer patients a chance to
live by giving treatment and adequate care. It has faced criticism previously for the adverts on
social media sites (Siminica, Motoi and Dumitru, 2017). Due to the current financial crisis it is
making job cuts of around 300 people. This may become issue as charitable trust is removing
employees. There is significant social impact over charity as funds are raised from public and
loss of public faith will lead to decrease in revenues. It is essential for the charity to gain social
support and help people to the extent possible.
Technology Factors
This factor is potential vehicle of the success for charity. Technology helps organisations
to improve the productivity and efficiency of the charity. As Macmillan is a large charitable
organisation technology plays great role in managing the internal and external affairs of
company. Technology has to be used adequately as it could have adverse effects like the
criticism faced on advert on Facebook. However advanced software is required for meeting the
reporting requirements. At micro level maintenance of technology is very expensive for the
charity as it contains large information of donors and funds.
Legal Factors
The charitable organisation is susceptible to several legal risks and introduction of the
technology is party to be blamed. The charity is privy to numerous sensitive information.
Mishandling of the critical information and records could lead to several legal implications. As
per the current scenario Macmillan has to comply with all the legal rules and regulations
imposed by the government and statutory authorities amid Covid-19. There will be increased
circumstance of money laundering and other misappropriation of funds that could lead to failure
of charity. Therefore, strong monitoring and controls will be required that it complies all the
legalities associated with the trust.
Environmental Factors
It is main focus of many of the charities. Environment requires the organisation to
conduct their operations in the manner that do not affect the environment (Perera, 2017).
Charities also have to comply with the environment rules and regulations. Macmillan is not
allowed to conduct events for charity due to the Covid-19 as environment is affected and people
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at large are suffering from the virus. It has to undertake increased hygiene conditions for the
charity offices and cancer hospitals to stop spread of the infection. It is the responsibilities of
every organisation operating in the society to ensure that environment is protected from
exploitation.
Analysis of the Micro and Macro Environment factors and their impacts over the Charity.
The Charities who are able to perform well will be growing and surviving in this current
situation. The micro and macro environment factors impacting the charity could be analysed
using SWOT analysis. It is an effective tool for having better understanding as well as decision-
making for the organisations. It enables charity to analyse its internal strengths and weaknesses
and external opportunities and threats. Tool is also used planning, making strategies, marketing
and product development. Using this organisation could frame the strategies that will be help in
managing the drawbacks that could be faced by it (Lin and et.al., 2020).
SWOT Analysis of Macmillan Charity
Strengths
 It is the biggest charitable organisation of UK for cancer support that enables trust among
various people.
 Charity provides specialised services for cancer patients to enable them to recover fast at
very low prices.
 As it has been more than 100 years of establishment it had developed trust of people that
provides it significant contributions from organisations and wealthy individuals.
 It provides advanced services and proper care to the patients and has significant number
of patients that have been recovered. It conducts several charity events in which people participate for generating revenues for
charity.
Weaknesses
 Charity is not able to comply with all the legal requirements of the statute which can
cause to suffer losses.
 The management of funds is inefficient.
 The organisation is required to have effective workforce that is able to provide
information to others. Ineffective promotion of the charitable events (Priporas and et.al., 2019).
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Opportunities
 It can attract new donors after the break down of COVID-19
 There will be greater help from the government for coping with the situation It could get tax reliefs and benefits.
Threats
 Revenues fall will cause loss of jobs.
 Due to decrease in the revenues charges may be raised by Charity.
 People and organisations may not donate for considerable time for reviving back their
situation.
RECOMMENDATIONS AND CONCLUSIONS
Organisations that are failing to manage appropriately in the current situation will be
struggling to achieve the mission and will find it difficult to create change and development for
survival. Ability of being able to evaluate strategically the performance of organisation is crucial
for the long term sustainability. Macmillan is big charitable organisation operating since several
years. People have built strong confidence in the charity and therefore it is required to manage
the operations effectively by planning and applying strategic tools for the charity. Pandemic has
affected the charities at large as their operations and activities are run by the donations and
contributions (Spear, 2017). The economy of the country is highly hit the COVID-19 and
organisations are facing negative profits. This will make hard for the charity to receive
contributions and donations for running the operations of business. Macmillan for avoiding the
failure has to manage the operations effectively and keeping cost that are high necessary and
cutting down all the other costs. Cultural events will not be held due to the pandemic which will
make it hard to generate revenues.
It could be concluded from the above report and findings that the charity is facing
difficulty in meeting the costs and expenses from the existing funds and resources. The micro
and macro environment factors are impacting the charity at large. It has to establish effective
strategies that will enable it to survive in the market. It should seek government help and use
other modes through which revenues could be generated for charity.
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REFERENCES
Books and Journals
Khomyshyn, K., CHARITABLE ORGANIZATIONS. Knowledge Transfer in the Global
Academic Environment: Publication in 3 volumes., p.120
Lin, M.S. and et.al., 2020. Formal and informal SME financing in the restaurant industry: The
impact of macroenvironment. Journal of Hospitality and Tourism Management. 45.
pp.276-284.
Perera, R., 2017. The PESTLE analysis. Nerdynaut.
Priporas, C.V. and et.al., 2019. The impact of the macro-environment on consumer scepticism
towards cause-related marketing. International Marketing Review.
Siminica, M., Motoi, A.G. and Dumitru, A., 2017. Financial management as component of
tactical management. Polish Journal of Management Studies, 15.
Spear, S., 2017. Impression management activity in vision, mission, and values statements: A
comparison of commercial and charitable organizations. International Studies of
Management & Organization.47(2).pp.159-175.
Online
PESTLE Analysis. 2020. [Online]. Available through: <
https://www.business-to-you.com/scanning-the-environment-pestel-analysis/#:~:text=A
%20PESTEL%20analysis%20or%20PESTLE,or%20entering%20a%20foreign
%20market.>.
[Online]. Available through : <>.
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