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Submitted by angel1vp on May 3, 2008
Category: Business
Words: 1122 | Pages: 5
Views: 257
Popularity Rank: 39,059
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Environmental Analysis
Introduction
This analysis will consist of the identification of the industry in which my organization operates. It is important to identify key macroeconomic variables and their direct effect on the industry. This analysis has two charts that identify the relationship between two main macroeconomic variables and the corresponding industry variables over the last five years. I will also identify operating challenges and opportunities for the industry my organization is involved in.
I work for an organization specializing in offering foster care, adoption, counseling and information workshops to individuals in the community. The organization focuses on finding a stable foster or prospective adoptive home for abused and neglected children and their siblings. Although the agency is part of a non-good producing market, it does have a few products available to the public; the concentration however, is on providing services for their families, placing them in the nonprofit social service industry.
Macroeconomics is defined by McConnell (2004) as the examination of the economy as a whole or its aggregates (collection of units). These units are also known as macroeconomic variables. There are several key macroeconomic variables that affect the industry in which I work; inflation, high interest rates, and unemployment. My organization is nonprofit and relies on funding from the government, in the form of grants as well as donations from the community and private individuals. When receiving funds in this manner, variables such as inflation and high interest rates will affect the social service industry. When inflation occurs government spending and budgets are cut. For the most part, the social service industry is one of the areas directly affected by these fluctuations. There is less money...
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