Using appropriate model, discuss how conducting a frequent and thorough external

environment analysis would help the Board of Trustees of CWA.

The appropriate model here that can be used to conduct external environment analysis is the

PEST analysis. The board of CWA can use this analysis to ascertain strategies for the future

and get an overall picture of the charity industry it is in. PEST is an acronym in which each

letter denotes certain factors for the study. P stands for political factors, while E stands for

economic ones. S has to do with social factors in a country whereas T sums up all the

technological aspects of the market.

To start the analysis, the board should look at the political aspect of the charity industry. With

no funding from the government, CWA is certainly at a disadvantage here. The board should

consider applying for government funding as competition is increasing while overall giving

has been flat. Furthermore, CWA should take in account taxation policies which may attract

more donors looking for tax deductions and doing charity work at the same time.

Secondly, the board can focus on the economic aspect of the industry. With a turbulent

economic environment, economic recession and depression may happen at any time, as

shown in the recent 2008 global recession. Hence, the public may be more hesitant to donate

some of their disposable income but rather save it for themselves. Besides, interest rates,

unemployment trends and inflation also play major roles in affecting CWA’s capability to

attract donors.

The third consideration is the socio-cultural aspect of the charity sector. New generation of

donors may have a different attitude and mindset when picking which charity or cause to

contribute for. For example, younger generation may be focused on charities which aim to

improve women’s education to close the gender gap rather than focusing on charities which

sought to conserve wildlife and biodiversity. Furthermore, CWA is not communicating well

with its volunteers on its goals and mission statement, leaving them in disarray.

Lastly, the board of CWA seems to be neglecting the technological factors which are

important in today’s society. It is imperative that CWA utilise the social media such as

Facebook, Twitter and BlogSpot to promote its charitable cause and reach out to young

potential donors. Charity events and challenges that are held by CWA can be publicised

through the social network and if successful, they can go viral, take the “ALS Ice Bucket

Challenge” for example. Through social media, CWA will be able raise awareness for its

charitable cause while at the same time, attract donations at a much larger scale than through

newspaper appeals.