Environmental Analysis: Macroeconomic Variables that Affect Industry

Essay by gladyssneedUniversity, Master'sA+, December 2008

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IntroductionThe objective of this paper is to discuss an environmental analysis and also I will identify the industry in which my organization operates and show the key macroeconomic variables that affect the industry. I will chose two macroeconomic variables and create two charts that include the last five years and the corresponding industry variables. Finally, I will discuss operating challenges and opportunities for my industry.

Environmental AnalysisQuanada, the organization I work for Operates as a nonprofit human service delivery industry, through counseling, advocacy, shelter services, and prevention education for survivors of Domestic Violence and Sexual Abuse and the community in general. "Quanada provides emotional, physical, and crisis support for those who have been battered or abused. The people we help come from all social and economic backgrounds, from all races and religions, men and women. They are your friends, neighbors, and co-workers. There is no typical victim....only those caught in situations beyond their control."

(Quanada Web.)Key Macroeconomic Variables that affect the industry I work in are: inflation, unemployment. Since my industry is nonprofit the agency depends on funding from the government (both the federal and state), grants and private community donors. When inflation occurs government spending is cut and victim services are one of the first areas at risk of a decrease in funding.

Macroeconomic Variable ChartsInflation Rate20002001200220032004United Stated3.42.81.652.202.7Canada2. Rate20022003200420052006United States5. any given time the unemployment rates may differ greatly among nations. Two reasons for the difference are: 1.) Different natural rates of unemployment; and 2.) Nations may be in different phases of business cycle. McConnell C.R. and Brue S.L. (2004, p. 140).

Between 2001 and 2006 the United States unemployment rate was considerably lower than that of Canada. The inflation rate, between 2000 and 2004, shows that the United States was somewhat higher than Canada for the first two...