The limited budget affects all processes at KIPP. It is nearly impossible to meet the needs of the student and staffing financially. The quality of education is indispensable as with the expansion of schools; the students are multiplying, thus generating the requirement to concentrate on the accessibility of financial possibilities. A couple of steps they have taken to help with the budget is fundraising, debt bonds, and frugality.
External Factors
The examination of the external environment is essential
, as it directly has an impact on the growth of the company. As in any school, the political and the legal conditions influence the processes. “No state revenue is provided for operational expenses” is the negative affecteffect the political and the legal structure has on KIPP.
The economic environment affects the budget thus, reducing spending causing challenges to meet the needs of various programs. Without financial resources
, different programs will have to be cancelled.
The local demographic is a key factor in assisting
, the community and is impacted by single working parentparents who are unable to focus on their child’s education. So, there is often no encouragement or support from family. The sociocultural is affected by the increase of gangs and violence. Children who do not have support at home often look to gangs for this sense of family.
The competitive environment
affectseffects KIPP,; new competitor Harmony and public schools stepping up could make KIPP obsolete. KIPP survival is dependent on developing a greater competitive edge than the other schools. Success of the students must be the top objective. The expansion goals have been revised, from 42 to 29 schools, which allows for flexibility in ever-changing external environmental factorfactors. Furthermore, the expansion purpose is to equip the community with education that can lead to improvement of the economic and demographic communities. Education is one of the key factors in fighting poverty.

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