Cancer Research operates in a market where many aspects can affect the progress and the sustainability of the organisation. External forces and internal forces can affect the organisation and into which market it is in. The external forces are the macroenvironmental issues that affect the organisation, and the microenvironmental issues are the internal forces that affect the organisation. The macroenvironmental issues are the socio-cultural issues, technological, Economical, political and legal. Cancer Research UK are in a non-profit charitable market.
They face many problems, one problem is that social participation is declining. A clear way to see how social participation has declined is by the trend that has occurred (or not should be said) in voting. The majority of voters being 70% are 65 and over. And only 39% of the voters were 18-24. Only 59% of the British public voted in 2004. To 65 year olds it is a privilege to be able to vote. 18-24 year olds were never deprived the right to vote, and they take it for granted. It is trends like this that show depreciation in social participation. Many 18-24 voted for liberal democrats in 2004 rather than Labour.
This proves that if this generation don't like what they see or don't get involved in what is happening in the world they clearly ignore it, and let people who do care about it sort it out. The same goes for charities. People are more interested where there money is being spent. People have a lack of trust for other people these days, and they question how money is spent. A law that may be passed soon in parliament may remove this problem. A charities act may be passed, this act will reduce regulatory burden. The government will reduce tax relief on donations. The government will be modernising the tax system for charities.
The government has to adhere to the change in socio culture, and put a lot of effort into getting the public giving. Politics is a huge issue in terms of charities. Charities need the help from the government. The government has to encourage more people to donate to charity, and modernize the tax system for charities. This task has been called 'GETTING BRITAIN GIVING IN THE 21 ST CENTURY'3 Tax relief will be given to donations, a modernization of the gift aid scheme for example donors will be able to join by phone etc, and a general tax relief will have to be allowed for all charitable funds.
At this day and age the younger generation don't have as much disposable income, as already they are in debt as soon as they have completed there higher education. In 2003 333,942 students went to university and the average student comes in i?? 10,966 worth of debt. Wages are slowly on the increase but the 18-24 generation also have to pay steeper house prices, seen as the average property has increased by 18%. It is extremely high for first time buyers; as mortgages are being increased due to the percentage of the property first time buyers have to pay for.
Wages are slowly rising and jobs are getting better. If you look at plumbers for example, they were classed in a socio-economic group as skilled workers, but now they are upper middle class because they earn so much money, but if they earn the extra money on top of all these are extra expenditures. It is stated that the younger generation are better savers than there parents, but 12 million people are not saving enough or not at all for old age, and they all have these increased costs to deal with.
And to top it, by the time the 18-24 year old generation of 2004 reach there pensioner age there will be no pensioner schemes, so this generation are already having to save for there own pensions as soon as they finish there degree's in university. State pensions are decreasing, with the improvement of social and medical conditions pensioners are now living longer, and the percentage of pensioners are increasing. With the increasing numbers of pensioners, (1949 4 million pensioners now there are 10. 5 million and by 2025 12.
5 million pensioners) there are fewer younger people entering the job market and fewer taxes are being raised, and less money is being put into pensions. Further to this company's are now withdrawing from pension provision. A law should becoming in, in April. This law ensures that pensioners get 100% of their promised rights. Cancer Research Uk have to take all this into account to remember, one people are not as charitable as past generations, and two will people have the money in years to come if Tony Blair abolishes the pension scheme, or minimises it as much as he already has?
And if the company pension scheme law does not pass will people of this generation now have money to spare for charity, and if they do will it be enough? It is the norm for people to think of number one, we have become a less considerate society, it seems unless we are selfishly affected in some way by a travesty we feel no need to donate. The trend in donating is in a slump. To persuade the new generations seems the challenge, which is being looked at by the government. On the contrary though sometimes people are expected to donate, as we see in Tsunami disaster of December 2004.
So many people in Britain have clubbed together and raised funds to help victims of the Tsunami. Or even if a member of your family dies of cancer, your family would expect you to donate money to a cancer related cause. It is hard to discard the fact that maybe people nowadays think what if it happens to me, we no longer live in an altruistic society. Cancer Research UK has to acknowledge all this. Cancer Research Uk's market can be affected by tradition. In terms of religion they may not donate to a charity of health because there belief is that it is an act of God, as Muslims do and they do make a big percentage of the British population.
. Demographics can have an effect the market in which Cancer Research Uk operates. It has been forecasted that in the years to come the older generations will grow considerably. Older generations of 60+ will try and give as much as they can but what if they cant due to lack of pension money, this can affect the market in which the charity aims at. Technology is a huge issue in the charity market at the present time. The statistic stands that's 11. 9 million households have the Internet. Access has been increased by 450% in five years.
It has now also been stated that 47% of adults use the internet to shop online. This is an area of the market that has to be conquered by the non-profit charitable organisations. There is so much money to be made here. All these external factors can affect the market in which Cancer Research operates, but the internal factors can also make a difference. In terms of market attractiveness Cancer Research Uk is a oligopoly organisation. A oligopoly organisation is an organisation that has many similar organisations in its markets segment. There are many charities that help Cancer Research UK.
They are all serving the same market segment. Cancer Research gain and improve information or research within cancer. Many organisations that coincide within this organisation are : I village, Virgin Mobile ltd, Addidas, Asda, Mamas and Papas Ltd and even Reebok Uk help fund Cancer Research UK. Many small organisations clubbing together to fund research for cancer. Cancer Research is continuing to grow due to expertise in research. They are improving drugs continuously and improving the percentage of cure rates with there new procedures.
Cancer is fatal and due to the amount of people that are affected by cancer they are growing, people want to help (60. 7 million pounds worth of income were donations in the year 2004). Cancer Research UK have put a lot of money into there brand. The cost of serving the Cancer Research Market is timely. It takes a lot of research to progress with cancer, but slowly it is being achieved, for example the gene found that triggers breast cancer in women. Cancer Research Uk's market is easy to access seen as they have established a great reputation over the years.
Cancer Research UK's skills in research and resources are incredible. They are the leaders in the UK. Last year alone the organisation believes they found a gene that linked to cancer, and research improved in protein research and cancer. These are just a few of brilliant findings that have come from funded research . Cancer Research are saving lives. Through the BJC donators can see the great work Cancer Research UK funds and that it is a worthy cause. The competition in the cancer sector of charities is immense there are about 800 in the uk alone.
Cancer research UK competes with charities such as the prostate cancer charity to Planet cancer. At the end of the day all of these 800 odd charities are doing the same thing they are helping people who have cancer, and trying to remove it totally. These days non-profit organisations such as Cancer Research UK are selling there produce and services the same way a profit company would. All cancer organisations have the same common goal, hence the swapping of client data, to try and attract custom. The goal is to keep the organisation afloat to carry on helping those in need.
In the year 2004 the total income of Cancer Research Uk was 338. 9 million. 213 million of that was spent on research and science. Decision-making is not made by just one person but by a board of trustees who all have a charitable background, they allocate resources appropriately. There shops are run by a manager and volunteers work for free in them saving money. Cancer Research Uk will work on Cancer until it is under control and non-existent, then there job is complete. This is the market in which they operate.