Components Constituting A Business Environment Commerce Essay

Components Constituting A Business Environment Commerce EssayThe rapid changes in the health bang purlieu eat up exerted signifi sightt pressures on the hospitals to collapse precaution to marketing strategies in general and health answer outline in particular. Therefore this look investigates the lick large milieu factors imbibe on the health dish up strategy made by the hospital managers. This film pro dos and tests a four factor macro purlieu model that explains the bulky variation in health service strategy in the hospitals. These factors accommodate political, scotch, Social, and Technology, namely the infestation Analysis. The take in goes on to conduct a grind away Analysis of the cheek and critic solely(prenominal)y evaluate how the composition net accomplish to make for the stakeholders expectations, and the ferment that specific stakeholders have on a health and social c ar organisation. We will critic aloney assess the role of randomness trou ble systems for improving the performance of a health and social c be organisation, and the end do techniques that the wariness uses to come up with the subscriber line strategies of an organisation.Components constituting a melodic line surroundThe two broad categories that any business milieu can be classified into be external and internal environments. A macro environment is thus a part of the external environment. dividing line surroundingsINTERNAL ENVIRONMENTEXTERNAL ENVIRONMENT macro instruction ENVIRONMENTMICRO ENVIRONMENTFigure 1 Business environment and its componentsmacro ENVIRONMENTAL FACTORS OF AN ORGANISATIONThe freshly environment reality tincting the summons and performance of organizations is organism characterized by regular and a great deal unpredictable change. As a result, many calls have been voiced for organizations to build the ability to do and adapt to changing and uncertain environmental conditions, in order to bear out their competitive situ ation (Cardwell Bolon, 1996 Godiwalla et al., 1997 Chung, 2008 Aapo Tomas, 2008). big environment has been the subject of considerable research in both business and marketing literature recently. Furthermore, it became an ara of primeval concern to all organizations, depending critically on a subtle mind and analysis of both the industry within which the hospital will compete, and the competitors working in same atomic number 18na. accepting macro environment factors is an master(prenominal) cut in edges of the increased pressure placed upon hospitals and the competition that exists mingled with hospitals. Any attempt at conceptualizing the term macro environment should, at any(prenominal) stage, involve an attempt to answer certain questions, much(prenominal) as1. What is the meaning of macro environment in hospital industry?2. What are the main factors of macro environment? And how do they exercise health organizations?MACRO ENVIRONMENT large environment is largel y external to the business enterprise. big environment factors are un trip up windlable factors and beyond the direct influence and run across of the organisation. Its factors are powerfully influence to its functions. External environment consists of singulars, groups, agencies, organisations, events, conditions and forces. These are often contacted by the organisation for its functions. It establishes keen interaction and interdependent relations in form of conducts business transitions. Proper designing and administration of macro environment enable appropriate strategies and policies to cope with and light up changes.The major forces represent irrepressible variables that hospitals must monitor and to which they must be respond. Marketers must overly pay attention to interactions among forces to target and take vantage of clean opportunities and threats. For example of the offerings are affordable (economic), they may actually change attitudes and behaviour (social cultural) (Kotler et al., 2008). Macro-environment consists of broader forces that affect the actors in the micro environment (Arm steadfast Kotler, 2011). There are several elements for a macro environment, a detailed picture of which is given below.Figure 2 Macro Environment ElementsThe magnificence of analyzing the macro environment arises from the critical role it plays in the growth and profitability of organizations. This fact has been cl primordial highlighted by Kotha and Nair (1995), and later by Wagner and Gooding (1997). Thus, by understanding an organizations external environment, Fombrun and Shanley (1992), Gimeno and Woo (1996) indicate that strategical ending- constituters can not only attention improve its competitive position barely withal increase its operational efficiency, and win battles in the field of globular economy. found on this conclusion, Hill and Jones (1998) have farther argued that to succeed, an organization must either fit its strategy to the industry/ celestial sphere environment in which it operates, or be able to reshape the industry/ sectors environment to its advantage through its choice of strategy. Thus, companies typically fail when their strategy no continuing fits the environment in which they operate (Hill and Jones, 1998).Crucially, any study of the external environment should intromit the identification of four major factors, namely Political, stinting, Social and Technological.PEST analytic thinkingPolitical FactorA Political environment consists of laws, regime agencies, and pressure groups that influence or limit various organizations and individuals in a given society (Arm well Kotler, 2011). The political factors that may influence the health service strategy in health mission scenario in particular are government activity objectives, policies, decisions, legal restrictions, various governmental units sharing legislative authority, laws concerning taxation, and privatization decisions. The cli nical politics structure has, at its fundamentals, the foundation philosophy of continuous lumber benefit (CQI) and total quality guidance (TQM). These two philosophies were developed first in manufacturing and industry, and then adopted by health run institutions in the early 1990s (Berwick, 1989 Kitson, 1994). The overall philosophy is to generate a culture of continuous quality based on effective cooperation between staff, systems spotlight, investment in people and staff, and self- observe (McLaughlin and Kaluzny, 1999 Ovretveit, 2000).The political environment is based on the uncertainty. In some countries with multiple numbers of political parties, a political party does not get clear majority to form a government. In this situation, business activities collapse due to minority supported government. The political parties are uneffective to formulate stable government it affects and fluctuate the government policies. Therefore, business organisation and public need a stab le government to function smoothly.Economic FactorThe economic environment consists of factors that affect consumer purchasing power and spend patterns (Kotler et al., 2011). It includes the economic conditions, economic policies, and the economic system that is important to external factors of business. Economic fluctuations in the home market and inflationary factors are also disturbs that have an influence, because they can produce both positive and negative effects on the fill for goods and services. For example, they could affect the specifications of certain goods or may require workers to get together specific types of training or preparation (George, 2009 Girijasankar Bhar, 2011).The economic conditions of the outlandish include nature of the economy of the country, the general economic situation in the region, conditions in re semen markets equivalent money, material, market raw material components, services, supply markets and so on which influence the supply of inp uts to the organisation, their costs, quality, availability and reliability of supply of products and services. The industry of economic analysis in health perplexity decision making, however, particularly with forecast to medical necessity, has proven to be highly controversial. Evidence varies regarding the extent to which decision stagrs actually use economic analysis.Socio-cultural FactorSocial and cultural environment is made up of institutions and other(a)(a) forces that affect a societys basic values, intuitions, preferences, and behaviours (Kotler et al., 2011 Armstrong Kotler, 2011). Socio-cultural trends can present both threats and opportunities for many hospitals. They are reflected in node wants and needfully in terms of a health service. Some of the constituents of the Socio-cultural factor are population, health, education and social mobility, and attitudes to these.Socio-cultural environment is an important factor that should be canvas while formulating co mpany business strategies. If a company ignores the customs, traditions, tastes and preferences and education, it can affect the business. It consists of factors which are related to human relationships and the pretend of social attitudes and cultural values. These are bearing on the business of the organisation.Technological factorsThe engineering is perhaps the about dramatic force now shaping, our destiny (Kotler et al., 2011). Technological factors include impact of emerging technologies, Impact of Internet, reduction in communications costs, increased extraneous working, research and development activity, and impact of technology transfer. Technological factors sometimes pose serious problems. A firm that unable to cope with technological changes may not be survived. Further, the differing technological environment of different markets may be called for service modifications.Technology in health services organizations has released such good things antibiotics, robotic surger y, MRI. The technologies environment change rapidly. In the past most of health give care managers did not know about the ever-updating technologies that they get to know of nowadays. New technologies create in the raw markets and opportunities. Therefore, the health care managers should study these updating technologies around the world to adopt them in their health care business or hospitals. Dramatic advancements in updating technology affect not only the products and services offered by organizations to customers and also the work processes needed. They can offer opportunities to those who can take benefit of such advancements. Otherwise, expecting and responding to technological trends can prove to be costly (Kotler et al., 2008).SWOT ANALYSISIn order to determine factors both within the external environment and within the organisation, a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis have been carried out, the findings of which are enumerated as follows. Strengths healthcare brand in the UK is a universally known and well-respected brand.An important sector in all topical anaesthetic economies that is a major bug of skilled practice session.National government prioritisation of the sector for assistance and skills development.Future employment growth on an upward trend.There is scope for greater consolidation and higher profile of social careThere are strong links between Department of Health and the other healthcare institutions like NHSThere are several dedicated communications resources working on social careThere are healthcare companies with working groups with cardinal stakeholders already set upWeaknessesEvery healthcare organisation has strong links to the Department of Health, therefore are unable to establish as an independent organisation.The complexity of the sector and its institutions.A negative public perception of the sector as being characterised by low pay, anti-social hours and working conditions. hard recrui tment difficulties and skills gaps.The healthcare staff come from different and varied cultures and countries and need to create a common identity of working. Intensive training has to be provided yet to all the staff, in addition to communication training everybodys be quiet learning the job.Information collected has essentially remained the same for some time. clear relevance and usefulness.Perceived burden of collection among stakeholders.Healthcare branding, for example the NHS, is a barrier for social care stakeholders.OpportunitiesTo be seen as a source of information independent from government and Department of Health.Large-scale recruitment of new and skilled staff.Engage new stakeholders.Improved levels of service associated with a wear out trained and motivated workforce.Potential for ameliorate IT systems and skills to increase diligent steering of care and early reporting of medical successes and shortcomings.Radical pay reform agenda in the NHS which for the fi rst time aligns pay and reward with cognition and skills development.Improve the online presentation of statistics.Move from measuring activities to measuring outputs and outcomes will make information of more practical use in applyation and monitoring of services.Chance to be seen to streamline collection processes.ThreatsLoss of proper skills and knowledge. massive diversity in the cultural and communicational backgrounds of the staff and not being able to follow a single agenda.The highly politicised nature of the NHS undermining medium and long term political programning.An older age profile than the average for all industries with proportionately low numbers of young employees entering the workforce.A relatively high turnover of staff in some sub-sectors and occupations.Lack of management skills.Slippage to sales talk of a common initiative, and its effect on the credibility of the programme. hardship to adequately consult with and engage all stakeholders.Wider local gover nment agenda may be obstructive.STAKEHOLDERS AND THEIR INFLUENCE ON THE HEALTHCARE SECTORThe term Stakeholders refers to everybody who has an disport in the health and well being of the local population and the delivery and development of health and social care services. They can scat from individual service users and carers to service providers such as primary care professionals, other statutory organisations and local Councils as well as the volunteer and community sectors and the wider public.SERVICE PROVIDERSCARE COMMISSIONERSSERVICE USERSFigure 3 Stakeholders that constitutes nerve elements of healthStakeholders can be classified into four groupsKey Players grasp satisfiedKeep cognizantMinimal effortKey PlayersThese are the most important Stakeholders they have high power and high interest in healthcare sector and its activities. Such stakeholders need to be composite in all relevant developments and could have a considerable influence over the future of healthcare secto r. They include health commissioners, Practice Based Commissioning (PBC) Groups, the NHS, specialist commissioners (For example, Neuro), healthcare providers, local full time officers of value unions, patient representative groups, healthcare sector employees, public health, GPs, board members, and local trusts.Keep SatisfiedThis is a particularly difficult group to portion with. In this group, we often find regional representative or legislative bodies. They behave passively most of the time, but that can exert an colossal impact on the organisation. It is therefore necessary to analyze potential intentions and reactions of these groups in all major developments, and to involve them according to their interests. This group includes MPs, Interest Groups, Health Scrutiny Committee, CFT members, local media, Local Strategic Partnerships, Health and Well being Board, Care Quality Commission, and other professional bodiesKeep InformedStakeholders in this group have a high interest i n the organisation and its actions. However, they have limited means to influence. Despite their lower influence, such stakeholders could be valuable allies in important decisions. Therefore, it is advisable to keep them informed about the issues they are interested in. This group of stakeholders may include conscious organisations, local communities, communities that are hard to r all(prenominal), Mental Health Trust, Care givers and users, and other independent sector organisations and competitors.Minimal EffortStakeholders in this group have lowly interest in healthcare corporate plans. They also has little power to exert much impact. It is therefore appropriate to keep these groups informed, but not invest too much effort into them. They include housing, guard and national media.Focused on users, carers and communities, stakeholder amour must focus on directly accessing the views of service users and carers who are using health and social care services as well as those livin g in communities who are experiencing the greatest levels of health inequalities to ensure they are having appropriate influence in shaping future priorities. Following are the principles that will underpin all stakeholder battleStakeholders must see that their input has a real impact on the decisions made and that they are making a real discrimination to how local services are being planned and delivered.It is essential that feedback from engagement processes is communicated to participants and that the reasons for why particular decisions were taken are clearly outlined.The level of involvement should be proportionate to the scale of the issue being considered.The method of involvement should be tailored to ensure that appropriate stakeholders are accessed.It is important that all stakeholders are provided with an opportunity to participate and are actively supported to bring to pass involved either at a locality level or on a specific issue basis.It is recommended that, as fa r as possible, across Health and Social Care organisations, involvement with stakeholders on needs assessment and strategy development be taken before jointly by the Regional Board, the Agency and Trusts. Staff working in each of the organisations should seek to form close working relationships to ensure that there is negligible duplication in involving local stakeholders and agree joint processes for taking forward this work. By adopting a more collective approach it will maximize the use of procurable resources both in terms of staff and information, derogate the time call for from stakeholders to contribute to involvement exercises and ensure that all sections within the health and care sector hear the same messages and can plan services accordingly.ROLE OF instruction MANAGEMENT SYSTEMS IN HEALTH AND brotherly CARE SECTORInformation management systems have much to offer in managing healthcare costs and in improving the quality of care (Kolodner et al. 2008). In addition to the embedded role of information technology in clinical and diagnostics equipment, Information systems are uniquely positioned to capture, store, process, and communicate well-timed(a) information to decision makers for better coordination of healthcare at both the individual and population levels. For example, data mining and decision support capabilities can identify potential adverse events for an individual patient while also change to the populations health by providing insights into the causes of disease complications.All types of business need copious and comprehensive quality and business management systems however this takes on added importance when lives are in the hands of the business involved. Healthcare is certainly in that category. Another hallmark of healthcare information is that it is highly personal. As a result, any transfer of information between parties via technology involves risks that the information could fall into the wrong hands. Although electron ic information can be made as secure as paper records, electronic storage may be perceived as having a higher likelihood of leakage, and such fears get further compounded by media attention. Thus, patients perceived probability of compromised privacy is often higher than the actual probability.An ideal Information management system should help the clientsProvides complete data protection and privacyMeet the business return objectives.Provide interfaces to other existing database repositories.Strategically unite and align quality and business process information that produces reliability improvement and meets standardsEnable business governance and organizational communication.Streamline access and utilization of data repositories and analytical systems needed for long-term business improvement.Provide analytics and robust search features for healthcare process performance, analysis, management review, and planning.Healthcare costs have been increase and the demand for reasonably pr iced high quality services is also on the rise. strong point of a hospital or nursing home depends on the efficiency of its operations and management systems. Some of the major factors determining the efficacy of a health institution include patient care management and patient satisfaction. In order to meet these requirements there has been the growing need to implement hospital information systems. The healthcare industry has witnessed an increased spending on IT with most of the hospitals and healthcare organizations fliping to electronically-based information systems.Healthcare Information management system should provide equal access to medical records throughout the country by making the diagnosis online through different digital tools. This could make sharing information among physicians for treatment and consultation much easier. It should ensure improved quality and assurance, archiving capabilities. This is is a major tool to measure clinical outcomes and control budget. It needs strong infrastructure to broadly utilize the data available online to provide continuity on database and information integration.When you take a healthcare organisation, for example a hospital, the information management system should provide decision making processes based on qualitative information and knowledge. There should be a continuity of medical data and care information. This will precaution in improving and increasing the efficiency of healthcare processes. It will also help in increasing clinical safety and the quality of the results. It is with no doubt that it can be said that better Information management system can provide better documentation and better customer services. The following diagram depicts an example of what an Information Management System in a hospital should include.DEMOGRAPHIC PARAMETERSVISITS AND HOSPITALIZATIONIMAGINGTREATMENT INFORMATIONMEDICATION INFORMATIONLAB RESULTSFAMILY HISTORYMEDICAL HISTORY unhurriedFigure 4 Patient Information M anagement System purpose MAKING IN HEALTH AND SOCIAL CARE SECTOR most(prenominal) decision-making techniques use a process used by leaders and managers to make decisions. This includes the following stepsIdentifying and defining the problem.Gathering information, facts and assumptions.Analyzing the situation.Developing options and solutions.Comparing and evaluating these options and solutions. accept the solution that best addresses the problem, or a best election decision. playacting on the decision.The way in which decision making is approached is recognised as an important function of leadership and management in health care. This increasing interest in the process of decision making as a function of management is evidence of a much larger shift in management thinking among the academic community. Although we traditionally associate leadership and management in health care with individuals, the complexity of change required in the health care system means a new paradigm of mana gement is required. Relational approaches to healthcare management offer an alternative view. Rather than being the function of an individual, leadership is considered to be an outcome of the processes that step forward when several individuals interact. Relational processes are being recognised as estimable as influential in changing peoples attitudes, behaviours and actions as the direct influence of a formal manager.CONCLUSION AND RECOMMENDATIONSIn conclusion, this study mainly focuses on the healthcare sector and the external factors that affect the management of the healthcare issues. Macro environment is a very important aspect in the healthcare sector. The study assesses the macro environment and its impacts on the health service strategy with the help of analytical tool like PEST analysis. The empirical conclusions skeletal from this study are multi-faceted and as a consequence it is important that healthcare managers pay attention to the influences of PEST environment el ements on health service strategy. The study concludes that healthcare scenario requires new health services, for enabling the hospital to meet the needs and wants of the largest possible market. Also if medical technology worldwide is updated it helps hospitals to assume opportunities that lead to increased market share and new market penetration.This study has outlined the stakeholder management strategy for healthcare sector to support the delivery of its organisational objectives and its development. It has established the current state of understanding of stakeholder power and impact, identifies key stakeholder groups and the influence of each group on the healthcare organisation. It also identifies the how the key strategic priorities and action plan for improving stakeholder relationships will be developed. The decision making process has been shifted from the main management and doctors to a wider range of management.Some recommendations for further research in this areaThe study could be replicated with other services to further examine the transferability of the macro environment in the healthcare industry.Study the proposed model in other European countries in order to fetch more validation for the model and more generalised findings.Study other service sectors, like public sector, in order to develop a model that represents the service sector more generally, rather than representing the healthcare sector alone.