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 CWAs 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 womens 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 todays 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.