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Macroeconomic Analysis on a Non-Profit Organisation in the UK : A PESTLE Analysis and Strategies for Mitigating Operational and Financial Risks

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This comprehensive report offers a PESTLE analysis of the major aspects that impact Cycle of Good (COG), a non-profit organisation operating in the UK. The report focuses on the external market in which COG operates and examines the impact of political changes, economic trends, socio-cultural developments, technological advancements, and legal modifications on the non-profit sector. The report highlights the potential risks and opportunities for COG in light of the recent transfer of political power and the economic crisis in the UK. It examines the impact of declining household income, increasing CPI and CPIH, and changing consumer behaviour on COG's ability to recruit volunteers and raise funds. The report also discusses the emergence of the Ethical Consumption market and how COG can capitalise on the growing demand for eco-socially conscious products to expand its customer base while achieving its sustainability and social goals. Furthermore, the report analyses the role of social media platforms in spreading awareness and raising funds for charitable organisations, as well as the potential benefits of using Blockchain technology to increase transparency in the use of funds by allowing donors to track their donations. Lastly, the report examines the legal modifications that allow charities to pay trustees for providing goods and services to the charity, which may be of utmost importance to COG in attracting top talent and expanding their presence. This report offers valuable insights into the external market in which COG operates and provides strategic recommendations for the non-profit organisation to mitigate risks and capitalise on opportunities.

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Introduction

Cycle of Good is one of the many fundraising initiatives of Krizevac, a charity
specializing in creating Social Enterprises in some of the most disadvantaged
communities in the world. The parent company i.e., Krizevac Project is underpinned
by Catholic Social Teaching to achieve sustainable enterprising changes in the said
communities by providing high quality education, setting up enterprises through
Catholic Communities that benefit people of all faith and none (Cycle of Good, n.d.).

Located in Chilomoni Township, Malawi,currently employing 33 Malawian Tailors full
time, the organization collects waste inner tubes and other materials saved from the
landfill, ship them in their own containers with donated bicycles to Malawi where in-
house trained tailors from poorest communities, carefully craft waste into useful, vegan
and eco-friendly gift items (Cycle Of Good, n.d.).

Cycle of Good product portfolio includes Bags, Belts, Cards and Gift Bags, Cases
(Pencil, Glass), Decorations, Elephant Bike, Face Coverings, Key Rings, Purses,
Stationery and wallets all of which are recycled from Banana Pulp, Coffee Sacks,
Copper Wire, Drink Cans, Inner Tubes, Larry Curtains, Newsprint, Paper, Polyester
and Postal Bike (Cycle of Good, n.d.).




Vision

By 2033, the parent company of Cycle of Good intends to construct and install 15
Krizevac crosses, each on a mountain in a different African nation. The communities
surrounding these Krizevac crosses will become, like the village of Medjugorje, a
source of profound peace and inspiration for those who visit and live there (Krizevac
Project, n.d.).

The company is based on the following Ethos.

• Value people, including team members and their consumers, and treat them
fairly.
• Value resources by reducing waste, recycling and being eco-conscious
throughout their operations.

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March 14, 2023
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