Impact of Economic and Financial Management on NSPCC

This assignment discusses the impact of economic and financial management on NSPCC, a charity organization in the UK. It analyzes the macro and micro environmental factors affecting the organization and provides recommendations for effective growth and success.

ECONOMIC AND
FINANCIAL
MANAGEMENT

EXECUTIVE SUMMARY
Finance and economics are two similar terms, that have different meaning such as
economic refers to study of scarcity and optimum utilization of resources so that they can be
available for each individual that are living in society. On the other hand, finance management
includes several processes or activities such as planning, controlling and monitoring financial
resources of firm so that company can achieve its goals. Therefore, this model and assignment
has contented information about economic and financial management such as impact of macro
and micro environmental factors on one of the charity organization that is NSPCC. It has also
included economic theory or factors that have positively and negatively impact on growth and
success of firm. Both the term financial management and economic is important for NSPCC as
charity by understanding impact or influence of external factors or economy can take accurate
decision the way it can deliver best services to customer’s within limited time frame and cost.
Financial management helps manager to find the best alternative sources that it can use to
arrange fund that it required in order to meet several expenses or for effectively operations of
business and achievement of goals. Company need finance for various purpose so effective
management of fund or optimum utilization of financial resources will contribute in delivering
best services to customers. Therefore, manager of NSPCC by considering both economics and
financial management can contribute in effective growth and success of enterprise in competitive
market.

Table of Contents
INTRODUCTION...........................................................................................................................4
ENVIRONMENT ANALYSIS.......................................................................................................4
RECOMMENDATION...................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
National society for prevention of cruelty to children (NSPCC) is one of the charity
organisation in United Kingdom that undertaken crucial steps to protect child. It was initially
established in 1884 with an fundamental objective to reduce cruelty faced by children in different
form so that they can have better lifestyles. NSPCC has approximately 2500 employees and
revenue around £157.5 million that is continuous growing its operations in order to provide best
services to children. There are several micro and macro environmental factors that are affecting
NSPCC while operating its business as charity in United kingdom. Some of them are changes in
government policies, innovation in technologies, changes in taste and preference of people and
economic slowdown. Such as favourable political policies that is federal funding have provide
easy access to to fund to charity at the same time innovative technologies have increased expense
of firm. Thus, this report have explained key factors that have impact on firm operations and
strategy so that manager can take accurate action for benefit of organization.
ENVIRONMENT ANALYSIS
PESTLE ANALYSIS
Political Factor
Political Landscape: Political Factor is very much favourable for NSPCC, as it has been
identified that there is good political stability in the UK (Perera, 2017). This has helped NSPCC
in sticking with the same rules and regulation. As any change in the political party will definitely
bring change in the policy as well. Not only that it has been identified that NSPCC used to get
federal funding which help charity in carry out different activity smoothly.
Economical Factor
Recession period: Due to current pandemic, UK is going through a lean patch or can be
said recession period. Amount of Unemployment has risen in the recent time and remaining one
are worried about the job security. This has created the situation where people are less likely to
donate to the Charity (Gheibi and et.al., 2018). This will eventually create a good sort of
financial liability for the NSPCC in the long run. As it will get difficult for charity to have an
adequate finance to carry out different operation of charity.
Social Factor
Helping community to grow: Despite charities are the organizations who used to work on
non-profit motive, charities are still a business. As NSPCC used to provide job to a hundred of

the individual, which help them in running themselves and their family. Also, NSPCC used to
help the different children in ending the cruelty. This ultimately help the society to grow. Hence,
on the basis of the same it can be said that Social factor is very much favourable for charity.
Technological Factor
Outdated technology: Analysing the technology presence in NSPCC it can be said that
technology possessed by charity is very much outdated in nature. This used to impact the
operation of the charity in negative way, as charity is not able to reach more number of
individual with the help of the same. Another reason behind not updating the technology of the
charity is that it will increase the financial liability of the charity (Rastogi and Trivedi, 2016). As
adopting technology will demand good sort of finance for charity.
Legal Factor
Varieties of Blockage: NSPCC are susceptible to many types of legal risks, as any
marketing material shared without compiling the same with law and regulation used to create
variety of different consequences for the organization. Also, there are variety of workplace
regulation which are also needed to be considered by the charity. Hence, compiling all the
activity sometime used to impact the efficiency of the business in the long run.
Environmental Factor
Helping Environment to grow: Just as Social factor, this factor is very much favourable
for the charity. As NSPCC used to contribute very positively toward development of
environment of the nation. As NSPCC looks at improving the condition of planet for people or
specifically can be said for the children.
SWOT ANALYSIS
Strength
Size: One of the biggest Strength of NSPCC charity is that they are very big and market
area coverage of Charity is very widen up, this eventually help them in reaching the better
number of children and help them in achieving their objective very efficiently and effectively.
There are 2500 paid employees and 1700 Volunteers who used to work for NSPCC. Annual
report of charity shows that in the year 2019-20 they have spent £86.8 million in their operation.
Weakness

Outdated Technology: It is one of the biggest weakness of NSPCC charity, as it has been
identified that presence of technology in the organization is not that updated, these used to sump
the scope of the company in the long run. As Charity is not able to reach the all the children who
are generally need of the assistance of the charity in general (Phadermrod, Crowder and Wills,
2019). Hence, it can be said that using outdated technique used to restrict the charity in achieving
the objective in the effective and efficient manner.
Opportunity
Resource Development: As mention in above that there are 2500 employees who are
employed by Charity in the current scenario and only 1700 individual used to work as a
volunteer. These number are very small when looking at the size of the charity. So there is good
responsibility in front of organization to develop more human resource so that it can help the
charity in achieving the objective of the charity in the better and efficient way.
Threat
Legal Law and Regulation: It is one of the biggest threat in front of NSPCC, as it has
been identified that there are variety of the different laws and regulation through which charity
has to compile their different activity (Sarsby, 2016). This used to consume good amount of time
for NSPCC to carry out different activity, hence it can create variety of the issue for the company
in the long run.
RECOMMENDATION
After understanding the Macro and Micro factor affecting the charity it has been
recommended to the charity that they have to take some decision in regard to reducing amount of
the expenses of the organization. Reason behind the same is that economic factor is not that
favourable in the nation, as there is good sort of recession in the market. It will get difficult for
the company in recruiting the desire amount of finance in that situation. So reducing the cost in
the current scenario will eventually help the charity in saving money for the future usage
(Penner, 2016). This will also help the charity in overcoming the variety of the different type of
the uncertainty which can be seen by them due to current pandemic situation all across the globe.
From the above discussion and analysis of impact of micro and macro factors on
business, It have been found keys areas that have negatively impacted on growth and success of
firm. So, on the basis of these factors there are some recommendation which could be used by

NSPCC organization to sustain its business operations. Such as: Company needs to innovate its
technologies in order to maintained record related to the data about number of services provided
by company to children (Setyawati and Suroso, 2017). Use of digital media will also help in
generating awareness among people about charity organizations thus it would able to delivered
best services to large number of individuals.

REFERENCES
Book and 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.
Rastogi, N. I. T. A. N. K. and Trivedi, M. K., 2016. PESTLE technique–a tool to identify
external risks in construction projects. International Research Journal of Engineering
and Technology (IRJET), 3(1), pp.384-388.
Gürel, E. and Tat, M., 2017. SWOT analysis: a theoretical review. Journal of International
Social Research, 10(51).
Phadermrod, B., Crowder, R. M. and Wills, G .B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management. 44. pp.194-203.
Sarsby, A., 2016. SWOT analysis. Lulu. Com.
Penner, S. J., 2016. Economics and financial management for nurses and nurse leaders. Springer
Publishing Company.
Setyawati, I. and Suroso, S., 2017. Does the Sharia Personal Financial Management Require?
Study of Sharia Financial Literacy Among Lecturers. International Journal of
Economics and Financial Issues, 7(4).
Khominich, I. P and et.al., 2016. Financial Management as a System of Relations of the
Enterprise for Highly Efficient Management of its Finances. International Journal of
Economics and Financial Issues. 6(8S).