Environmental Analysis for a Daycare Facility Research Proposal

Environmental Analysis for a Daycare Facility - Research Proposal Example These too should be accurately defined in order to acknowledge the organization’s strengths and weaknesses, as well as potentials. In analyzing the external environmental analysis the PESTEL method will be applied. This means that political, economic, social, technological, and legal factors will be pointed out. The internal environmental factors will be studied through SWOTT, a method in which the strengths, weaknesses, opportunities, threats and trends are identified. External Environmental Analysis With all levels of government facing the need to introduce cuts in the budget, allocations for welfare and other services are in the process of being reduced. It must be noted though that this also happens to be shaped by contending perspectives on government spending from opposing political blocs. One of those that are badly affected by the political squabbles is the reduced budget meant for daycare facilities. The impending cost reduction measure is expected to result in the cl osure of several publicly run daycare facilities. If not, this would prompt stricter regulations for admittance. New York City provides one clear example of the said effect. According to a news report, â€Å"Mayor Bloomberg plans to eliminate 5,000 spots for after-schools programs and move an additional 10,500 similar slots for low-income children from local community programs to the Department of Youth and Community Development’s cheaper Out-of-School Time program† (Katz 2011). This is scenario that is basically taking place in many other cities in the country. Apparently, more children will be displaced, a situation that can be promptly addressed by the establishment of daycare facilities that are privately run and therefore, free from the current underlying politics of government fiscal policies. The current economic conditions have made it even more difficult even for middle-class families to allocate a particular amount of their monthly budget for child care. With incomes shrinking due to inflation, a growing number of parents have seen the need to both have a job. This naturally results in the necessity for child daycare facilities. However, the cost for sending a child to daycare has also increased significantly through the years, taking a big chunk of a family’s monthly budget. Five years ago, the National Association of Child Care Resource and Referral Agencies reported that the average annual fee for one infant ranges from $3,803 to $13,480 (Armour 2006). With recession occurring in 2008 and with the effects still felt even today, it is clear that the said range has increased several times. This only gives the idea that for a daycare facility business to work, it should present itself as a cheaper alternative to other similar private enterprise. As pointed out above, the weakened economy has prompted both parents to seek stable employment. As a consequence, children are left without parental care throughout the day while parents are out working. There is always the option of hiring babysitters but then, in most cases, the children are never given the necessary basic education by such individuals. Babysitter’s primary function is just watching over the children and preventing them from getting into accidents.