Health Care Strategy Capstone Project

Length: 5 pages Sources: 3 Subject: Healthcare Type: Capstone Project Paper: #88346597 Related Topics: Ethics In Healthcare, Environmental Scan, Nursing Malpractice, Health Care Organization

Excerpt from Capstone Project :

strategic plan II Environmental Analysis

An environmental analysis is an important component, and indeed a prerequisite, to the strategic plan. It stands to reason that you cannot set a course for the future without knowing the route you will take, and you cannot know the route until you have the lay of the land. The environmental analysis is "a process in which you look at the outside factors that can have an impact on your business" (Arthur, 2014). The strategic plan depends on the information you gather about the trends in and nature of the external environment, so it is incredibly important that the environmental analysis is taken seriously. There are a number of different tools that have been developed in the management literature that can assist with creating an effective environmental analysis, including the SWOT Analysis, the PESTLE analysis, the Five Forces analysis and the value chain analysis (Downey, 2007).


There are many implications for the environmental analysis in the strategic plan. To understand these perhaps we should look at the two types of environments -- internal and external. The external environment reflects all of the conditions in which your company operations. The organization has limited control at best over these variables, so must understand quite acutely how these external variables affect the organization. The internal analysis highlights internal capabilities, strengths, and weaknesses. The organization has control over these. Strategy, therefore beings with setting objectives, but then the implementation must take into account the internal and external environments that govern an organization. The business should use the environmental analysis in order to formulate better strategy, to get competitive advantage and to understand how best to implement the strategy (WiseGeek, 2014).

Competitive Analysis

Ultimately, every organization needs to be competitive. Even in health care, an industry where many providers are not-for-profit entities, it is important that the company is competitive in terms of attracting good staff an in terms of bringing in enough revenue that the organization at least breaks even. At a for-profit institution, the need to be competitive is self-evident. What a


A competitive analysis helps managers understand the internal strengths and weaknesses of a company. Too often managers assume that they have genuine competitive strength when the reality is that they are merely competent at doing the same things as every other organization. A competitive analysis should provide management with the opportunity to make an honest assessment of the firm's capabilities, before the market does. Competitive analysis is a critical component of strategic planning. One of the outcomes of strategic planning is that the organization needs to be more competitive. Thus, it is essential to understand how competitive the organization is today, why it is competitive, and what things it can improve upon in order to become more competitive. Many such things might come up in a SWOT analysis, but ultimately the competitive framing of the firm's attributes helps the managers think about the market better. This in turn allows for greater focus on what tactics will genuinely increase competitiveness, rather than improving the firm in things that do not have an impact on competition.

Other Issues

The environmental analysis will typically take a look at economic, legal and political issues, for example in a PESTLE analysis. These are critical frameworks over which the firm has little control, but that can have a tremendous effect on the company. In healthcare, the economic environment is not always that important, because demand for health care is more related to demographic factors than economic ones -- healthcare is not considered to be discretionary demand. The political and legal environments, being related, are very influential on healthcare organizations in the United States, as healthcare is a highly-regulated industry, and government has a keen interest in both the public health aspects and the economic aspects.

There are many examples of political and legal issues affecting health care. The Affordable Care Act is one, having dramatically changed the payer landscape, and that in turn should spur strategic changes at some facilities. FDA regulations affect the industry, and the legal system does as well. Changes in the legal environment, for example, dramatically increased the liability risk to healthcare provider…

Sources Used in Documents:


Arthur, L. (2014). The implications of environmental analysis on strategic plan. Houston Chronicle. Retrieved November 10, 2014 from

Downey, J. (2007). Strategic analysis tools. CIMA. Retrieved November 10, 2014 from

WiseGeek. (2014). What is the role of environmental analysis in strategic management? WiseGeek. Retrieved November 10, 2014 from

Cite this Document:

"Health Care Strategy" (2014, November 10) Retrieved June 7, 2023, from

"Health Care Strategy" 10 November 2014. Web.7 June. 2023. <>

"Health Care Strategy", 10 November 2014, Accessed.7 June. 2023,

Related Documents
Healthcare Strategy
Words: 1289 Length: 4 Pages Topic: Healthcare Paper #: 72015703

Health Care A target market is defined as recognizable segments that make up the market, and the target market consists of the groups the organization wants to focus on (Swayne, Duncan & Ginter, 2008). There are a number of ways that a target market can be understood. The main breakdowns in health care are geography, demographics, payer and specialty (Gandolf, 2010). Geography is perhaps the simplest one. It reflects the service radius

Healthcare Strategy
Words: 689 Length: 2 Pages Topic: Healthcare Paper #: 66353711

Healthcare Challenges Technology is one of the main drivers of change in healthcare, and it is up to healthcare organizations to join the rest of the world in adopting new technologies to run their industry better. In most industries, something like electronic record keeping has been done for decades and nobody was wringing their hands about it. It is absurd that this is even an issue for healthcare companies. The best

Healthcare Strategy
Words: 1258 Length: 4 Pages Topic: Business - Management Paper #: 4493091

Strategy Health Care First student: There are many barriers to the implementation of strategy in health care organizations. One barrier is that the organizational structure, including chains of command and communication, may pose barriers. This barrier reflects that strategy needs to be communicated effectively, in order to the implemented effectively (Heide, Gronhaug and Johannessen, 2002). Managers must be aware of this, and ensure that there are channels for communication that will

Health Care Strategy
Words: 922 Length: 3 Pages Topic: Business - Management Paper #: 55454010

components of strategic management. They include internal and external analysis, strategy formulation and strategy implementation (Clayton, 2014). The external analysis allows the company to understand what opportunities and threats exist in the market. The internal analysis allows the company to understand its own capabilities and weaknesses, the latter of which might constrain what options it will be able to pursue. Once these are known the company can then formulate

Healthcare in the 21st Century:
Words: 757 Length: 2 Pages Topic: Healthcare Paper #: 83679936

One such barrier is the pattern of supply-driven care that has proven extremely costly on the average consumer and patient. Essentially, this method of healthcare has created a multi-billion dollar industry, where patients' needs are put to the side in order for healthcare organizations to make the largest profit margin possible through a system that resembles a production line more so than a hospital facility. Unfortunately, "producers control demand"

Health Care Options for Pregnant Women
Words: 1588 Length: 4 Pages Topic: Healthcare Paper #: 16562288

Healthcare for Pregnant Women Comparison: U.S., Switzerland and Canada A Comparison of Healthcare Options Pregnant Women in United States, Canada and Switzerland The healthcare systems in Western societies do not assume that a woman requires health information; however, collectively, it has become well recognized that good information is necessary to a pregnant woman, and that understanding the stages of pregnancy, labor, and delivery is important to good perinatal care (Crook, 1995). This