Economic and Financial Management Report: The Amber Foundation in UK

This report examines the economic and financial management of The Amber Foundation, a UK-based charity organization. It begins with an introduction to the impact of micro and macro economic factors on both profit and non-profit organizations, setting the stage for an analysis of The Amber Foundation. The main body of the report provides an overview of the charity's mission, current status, and the economic factors affecting its performance. The report delves into the micro and macro economic factors, including market share, government grants, GDP, and the impact of Brexit and the COVID-19 pandemic. Relevant economic theories, such as life cycle theory and dependency theory, are discussed in relation to the charity's operations. Furthermore, an internal and external environmental analysis is presented, examining the bargaining power of buyers and suppliers, threats of substitutes and new entrants, and competitive rivalry, along with political, economic, social, technological, legal, and environmental factors influencing the organization. The conclusion summarizes the findings, emphasizing the impact of internal and external environments on the charity's performance. References to books, journals, and online resources are included to support the analysis.

ANY CHARITY ECONOMIC
AND FINANCIAL
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
The Amber Foundation................................................................................................................1
Current status of the charity organization....................................................................................2
Micro and macro economic factors affecting the performance...................................................2
Relevant economic theories.........................................................................................................2
Micro and macro environmental factors......................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
The profit and the non-profit organizations are impacted by the micro and macro
economic factors that are existing in the business environment in which the organization
operates. The micro factors involve the specific market segment, customers, suppliers, labour
market and the individual price and demand of the commodities that directly affects an
individual organization. The macro factors are the ones that shall be impacting the economy as a
whole. The current project is undertaken on The Amber Foundation, which is the charity
organization in UK. The research shall be involving the study on the micro and macro economic
factors that are affecting the performance of the organization in the recent years. It shall be
highlighting the various economic theories in the light of which the reasons behind the failure of
the charity organization will be evaluated. The report shall also be presenting the micro and
macro environmental factors that are impacting the organization.
MAIN BODY
The Amber Foundation
The Amber Foundation is the charity organization in UK that has been working for the
welfare of the society in various ways and uplifting the standards of the people who are poor,
jobless and homeless. The organization serves all the young people falling between the age
group of 16 years to 30 years who are unemployed as well as suffering the homelessness. The
accommodation and the support services that are provided by the charity organizations are easily
accessible and available for 24/7 hours of the day (Sant’Ana, Pache, Borges, 2021). The
maximum period of the service is 1 year wherein the complete residential employability is
provided to those are homeless also with that they get the opportunity to build their independent
lifestyles. Apart from that the young people are also given the opportunity related to the
education, trainings and other employment services so that they can be capable enough to earn
their livelihood and manage their lifestyles so that the dependents in the family can be survived.
The Amber Foundation has significantly contributed in the transforming lives of the
young people who are facing vulnerability due to the financial crisis. This charity is usually
concentrating on upgrading the current status of the unprivileged sections of the society. Within
the span of 1 year they offer the customers with all the basic amenities of life in a manner that
their future gets secured for life. These organizations make their expenditures in the charitable
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activities and for that the income and funds are arranged from the government grants, donations
and the funds raised from the public.
Current status of the charity organization
The current status and position of the organization is under the financial crisis wherein
the company is facing the tough liquidity spot. Over the years the growing trend of the company
has taken a downward turn in the market (Fernández-Huerga and Garcia-Arias, 2019). It can be
assessed that the net of balance is negative as the expenditures are greater than the incomes for
the organization in a particular year. One of the most significant reasons for this might be that the
income generated from the government grants and the government contracts are sweeping over
the recent years, whereas on the contrary it can be noticed that the company's expenditures in the
charitable activities has been constantly increasing at the significant pace.
Micro and macro economic factors affecting the performance
The micro factors are related o the individual environment of the business like the market
share which is currently lower for the organization due to the lesser receipts of governmental
grants and donations (Fisher, 2021). Apart from that the market segment of the non-profit
organization is quite common due to the higher alternatives available in the form of housing and
employment schemes. The micro environment also includes suppliers, customers, and other
regulatory organizations.
The macro economic factors involve the gross domestic product, national income,
employment levels, infrastructure availability, rates of inflation etc. These factors have also
highly contributed to the dimming down of profits if the organization in the past three years. It
can be assessed that the recent outbreak of corona pandemic has further lower down the
profitability of the business which is due to the reduced GDP and employment levels in the
country. Another major reason is the implementation of the Brexit policy which has separated
the UK from European Union lowering down the scope of its business.
Relevant economic theories
The relevant business theories that are applied for the growth of organization are life
cycle theory and the linear growth theory that specifies that a business passes though various
stages from declining to boom to falling stage. At all stages different strategies have to be
applied so that the business can be revived. Apart from that the dependency theory also plays the
major role in determining the factors upon which the business of The Amber Foundation depends
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Micro and macro environmental factors
Internal environmental analysis:-
Bargaining power of buyers:- the bargaining power of buyers is low as they are poor and
unprivileged sections of the society who are in vulnerable conditions and in dire need for help.
And due to this the company has higher negotiation power with their potential buyers.
Bargaining power of suppliers:- The bargaining power of the suppliers is high as there are
huge receivers of such loan and grants in the form of various non profit organizations and the
welfare committees who are working for the betterment of the society.
Threat of substitutes:- The threat of substitutes is also very high because of the fact that there
are various deals for the housing products and the employment deals that can be offered to the
customers.
Threat of new entrants:- the threat of new entrants is also high in the industry because of the fat
that the capital investments are very low and it only requires a good established network through
which the company is able to capitalize the huge sources of income for the company and search
for prospective clients who requires charity and are in need of such help (Navickė and Lazutka,
2018).
Competitive rivalry:- The competitive rivalry is n the industry is high as many non-profit
organisations has been developed in accordance with that. Because of this the sources of income
that are available for the company also gets distributed like the government grants and the
donations that are received. This is the reason that the expenditure is higher than the incomes
received by the company (Difference between microeconomics and macroeconomics, 2021).
External environmental analysis:-
Political:- The company is affected by the political uncertainties that are there as the different
government promotes the different long term objectives and are ready to provide the grants only
in respect of those motives and the associated developmental activities. Apart from that the
Brexit policy in UK also has lead to various trade barriers and accordingly has affected the
income for the business.
Economic:- The economic status of the economy in respect of inflation rate, interest rate, foreign
exchange rate, employment rate etc. are also largely impacting the income and expenditures of
the charitable trusts. It can be assessed that if the interest rates are high in that arrangement of
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finances becomes a tough job for the company which leads to the negative balances where the
expenditure exceeds the incomes and donations received by the company.
Social:- The social factors like the tastes and preferences, trends and the lifestyle of the various
clients have certainly given rise to the industry as now in order to survive and enjoy the
minimum standards of life the clients has o have a decent job and for the same the charitable
activities are promoted.
Technological:- The technological environment possesses of the technical capacity of the
organization. The modernization of the various processes and the up-gradation of the existing
techniques also helps the company to improve and boost up their performance (Rjoub, Civcir and
Resatoglu, 2017).
Legal:- The legal environment of the company comprises of the lawful rules and regulations that
shall be adopted by the company in order to ensure the compliance. The legislations specify the
protocols that are to be followed by these charitable organization like some of the government
grants are in the form of unrestricted funds which are to be applied to specific business activities.
Environmental:- The non-profit organizations are already performing for the betterment of the
society nut apart from that also they are to contribute in the environmental protection, human
rights activation, corporate social responsibilities and corporate governance.
CONCLUSION
It can be summarized from the above project that the performance of the company gets
affected by the internal and external environment and the various factors that are existing in it.
This can contribute in both ways one is the development and the other is the destruction. Also the
charity organizations has various theories that are applicable on it according to which its future
fate can be decided in accordance with it. The growth trend and efficiency of the business shall
be determined in accordance with the internal and external economic factors.
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REFERENCES
Books and Journals
Fernández-Huerga, E. and Garcia-Arias, J., 2019. The Post-Keynesian view on labour demand in
micro-and macroeconomic fields. Economics & Sociology. 12(2). pp.109-128.
Fisher, O., 2021. The Impact of Micro and Macro Level Factors on the Working and Living
Conditions of Migrant Care Workers in Italy and Israel—A Scoping Review. International
Journal of Environmental Research and Public Health. 18(2). p.420.
Navickė, J. and Lazutka, R., 2018. Distributional implications of the economic development in
the Baltics: Reconciling micro and macro perspectives. Social Indicators
Research. 138(1). pp.187-206.
Rjoub, H., Civcir, I. and Resatoglu, N. G., 2017. Micro and macroeconomic determinants of
stock prices: the case of Turkish banking sector. Romanian Journal of Economic
Forecasting. 20(1). pp.150-166.
Sant’Ana, D. A., Pache, M. C. B., Borges, 2021. Accessibility and digital inclusion in Brazil and
South Korea: A comparison between micro and macro territorial approach. Sustainable
Cities and Society. 64. p.102524.
Online
Difference between microeconomics and macroeconomics. 2021. [Online] Available through:
<https://www.economicshelp.org/blog/6796/economics/difference-
between-microeconomics-and-macroeconomics/>
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