Meaning and Process of Environmental Analysis

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Table of Contents

External Analysis
The Process of an Environmental Analysis
Reference List

External Analysis

Analysis of the External Environment

Every healthcare organization should conduct a regular analysis of its external environment. Such analyses identify the targeted clients or stakeholders. The analysis “identifies the socioeconomic and demographic issues associated with the targeted community” (Hsu, 2012, p. 5). This practice has the potential to improve the level of service delivery. The second reason why such analyses are necessary is that they analyze the nature of every competitor. This “practice will make it easier for the targeted facility to improve its healthcare practices based on the strengths and weaknesses of the competitors” (Ginter, Duncan, & Swayne, 2013, p. 48). The analysis will also identify the best suppliers and healthcare, partners. The targeted hospital can form new partnerships with established pharmaceutical companies.

Barriers to an Effective Environmental Analysis

Strategic planning (SP) is a useful process that makes it easier for healthcare facilities to deliver appropriate services. SP “promotes the level of participation, decision-making, preparedness, and performance” (Ginter et al., 2013, p. 76). Some barriers can affect the success of every Environmental Analysis Process (EAP). The first barrier is the lack of competent individuals and resources. The second one is the use of ineffective Environmental Analysis Tools (EATs).

Ineffective EATs might not produce positive results. Ineffective communication and cultural differences can also affect the effectiveness of every EAP. These barriers have the potential to delay the SP process. Healthcare organizations can use SP to combine their goals and strengths. SP focuses “on appropriate practices, ideas, and services to address the changing needs of different patients” (Timmerman, 2007, p. 35). Such barriers will also “delay the organization’s strategic planning process” (Hsu, 2012, p. 6).

The Process of an Environmental Analysis

Adding a New Cardiac Care Wing

Physicians and caregivers must use the best steps whenever conducting their EAPs. The proposed Cardiac Care Wing will support the mission of the hospital. A proper EAP will ensure the hospital makes appropriate decisions. The first step is analyzing the number of healthcare organizations offering similar services. This practice will ensure the hospital understands every existing gap. The next step is examining the number of targeted clients. This step will identify the demographic and socioeconomic issues associated with the targeted clients. The third step is “examining the operations and activities embraced by every leading competitor” (Perera & Peiro, 2012, p. 752).

This approach will ensure every manager identifies the most appropriate strategy. The fourth step is identifying the right partners to support the Cardiac Care Wing. The last step is focusing on the right individuals to support the proposed Cardiac Care Wing.

Deciding Whether (Or Not) to Add the New Wing to the Hospital

The gathered data from the above exercise will ensure the managers make the best decision. Managers can use several strategies to evaluate the data gathered during the EAP. The first strategy is SWOT Analysis. This framework will highlight the strengths and weaknesses of the proposed Cardiac Care Wing. The framework will also identify the threats and opportunities associated with the new wing. Managers can use Porter’s Five Forces to make positive decisions.

This model identifies the issues associated with the targeted external environment. The tool will make it easier for the managers to make the right choices (Timmerman, 2007). The other strategy entails the use of PEST. This tool analyzes the political, economic, social, and technological factors associated with the targeted external environment. The tool will identify the best ideas to consider before opening the new Cardiac Care Wing.

Reference List

Ginter, P., Duncan, W., & Swayne, L. (2013). Strategic Management of Healthcare Organizations. San Francisco, CA: Jossey-Bass.

Hsu, J. (2012). The Relative Efficiency of Public and Private Service Delivery. Background Paper, 39(1), 1-8.

Perera, F., & Peiro, M. (2012). Strategic Planning in Healthcare Organizations. Revista Espanola de Cardiologia, 65(8), 749-754.

Timmerman, G. (2007). Addressing Barriers to Health Promotion in Underserved Women. Family and Community Health, 30(1), 34-42.

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