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Prepare a 5–7-page environmental analysis of a health care organization addressing both the external and internal environments.
Note: Each assessment in this course builds upon the work you have completed in previous assessments. Therefore, you must complete the assessments in the order in which they are presented.
Health care organizations have embraced strategic management and developed unique processes for their industry. Health care leaders have found that strategic thinking, planning, and managing strategic momentum are essential for coping with the health care industry’s dynamics. Strategic management has become the single clearest demonstration of effective leadership in health care organizations.
Health care organization leaders need to understand the external environment in which they operate and anticipate and respond to the significant shifts taking place within that environment. An organization engages in service area competitor analysis to:
- Determine the geographic service area.
- Analyze the competitors within that service area for strengths and vulnerabilities.
- Assess the impact of its strategic actions against specific competitors.
- Anticipate potential actions a competitor might take that would endanger the organization’s market position.
Analyzing competitors assists organizations in identifying their competitive advantage—the basis on which they are willing to compete. Evaluating the organization’s internal environment is also critical. This requires evaluating such functional areas as clinical operations, information systems, marketing, clinical support, human resources, financial administration, and so on. In an internal environmental analysis, leaders carefully examine each function or organizational subsystem and then develop and analyze a list of strengths and weaknesses for each. This approach has been successful in some cases; however, an internal environmental analysis alone does not adequately address strategic issues.
This assessment provides an opportunity for you to perform an environmental analysis of a health care organization. An environmental analysis enables the organization to identify current challenges and opportunities in preparation for future strategic planning and goal identification. Insightful diagnosis of a company’s external and internal environments is a prerequisite for managers to succeed in crafting a strategy that is an excellent fit within the company’s operations. These evaluations assist the organization in fostering alternative strategies and business models that culminate in leaders choosing a specific strategy.
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:
- Competency 1: Analyze organizational structure, design, culture, and climate in relation to environmental forces.
- Identify key industry structural features determining the forces governing competition.
- Competency 3: Recommend an organizational structure and design to optimize a strategic plan.
- Competency 4: Communicate in a manner that is scholarly, professional, and consistent with expectations for professionals in health care administration.
- Write a clear, concise, well-organized, professional, and generally error-free environmental analysis that supports conclusions with relevant evidence.
- Follow current APA formatting and style guidelines for citations and references.
- Evaluate a health care organization’s directional strategy, as reflected in its vision, mission, and values.
Expert Solution Preview
Performing an environmental analysis is important for a health care organization to prepare for future strategic planning and goal identification. In this assessment, a thorough examination of the external and internal environments of a health care organization is required to evaluate key industry structural features, identify the forces governing competition, and recommend an optimal organizational structure and design. This analysis will outline a clear, concise, and well-organized report that supports conclusions with relevant evidence, following current APA formatting and style guidelines for citations and references.
To conduct an effective environmental analysis of a health care organization, it is essential to evaluate both the external and internal environments. The external environment refers to factors outside of the organization that have the potential to affect it, such as economic, political, technological, and social factors. On the other hand, the internal environment is composed of an organization’s resources, culture, structure, staff, and other key components that can affect its operations.
In this environmental analysis, the health care organization’s directional strategy should be evaluated as reflected in its vision, mission, and values. This aspect is critical because it sets the tone and direction for the organization’s goals and objectives. The vision statement should express the organization’s aspirations, the mission statement should describe its purpose, and the values statement should provide a clear understanding of the organization’s beliefs and principles.
To effectively analyze the external environment, a service area competitor analysis should be conducted to determine the geographic service area, analyze competitors within the service area, assess the impact of strategic actions against specific competitors, and anticipate potential actions that competitors might take to endanger the organization’s market position. This analysis is crucial in identifying the organization’s competitive advantage based on which it is willing to compete.
Internal environmental analysis is also critical in evaluating the functional areas of the organization, including clinical operations, information systems, marketing, clinical support, human resources, financial administration, among others. Through careful examination of each function or organizational subsystem, a list of strengths and weaknesses can be developed, and analyzed for each area. This helps to identify potential opportunities for improvement within the organization to build on its strengths further.
In conclusion, a comprehensive environmental analysis of a health care organization that includes both external and internal evaluations is crucial in identifying current challenges and opportunities, preparing for future strategic planning and goal identification, and fostering alternative strategies and business models that culminate in leaders choosing a specific strategy.