This is for Nancy Carol Only.

Enviornmental Scan

Ryann A. Schreck

University of Phoenix Online

Strategic Planning and Implementation

STR/581

Dr. Sidney Morse

February 2, 2015

South Central Mental Health Counseling Center Environmental Scan

External Environment Factors in the Remote Industry

SCMHCC external business environment has a direct impact on its operations of providing its target customers with the needed mental health services. A close look at the external environment within, which SCMHCC operates, indicates that there are a number of factors that usually affects its operations in one way or another.

SWOT Analysis

· Strengths

· Educated/Trained Staff

· Wide range of services to meet consumer need

· High consumer sasifaction

· HIgh consumer retention

· New EMR mangement software

· No consumer denies services due to inability to pay.

· Weaknesses

· High staff turn around in some departments

· Multiple locations create communication breakdown among management staff

· Depends highly on state funds for operation

· Changes in insurance with MCO's

· Threats

· Possible budget cuts

· Competitors offering similar services

· Polical issues surrounding the need for Community Mental Helath

· Opportunites

· Possible growth within the commuinity

· Community partners

· Opportunity for new programs

Technological factors: in the recent years there have been many advances in the area of technology forcing many organizations in all sectors of the economy to keep up with these changes as try to increase their efficiency and effectiveness in all their operations. As health care provider organization SCMHCC has not been left behind as it has to keep up with numerous changes in the field of technology so with an aim of increasing operational efficiency in all its departments //(Folland,Goodman &Stano, 2007). For instance, the organization has to computerize all its operations, by developing different health care information management systems to make it easier to keep the customer records at all time. Therefore, in order to keep with this technology the organization has to invest millions of dollars in this area so as to ensure its systems are always in good conditions to avoid a scenario where threats to information security framework attack its IT framework impacting negatively in its day to day operations. On the other hand, customers are nowadays using online as a means of payment and other forms of wireless payment transfers, thus, in order for SCMHCC to remain competitive and retain its customers it must adapt these new technologies to become part of its overall operations.

Legal factors: Given that the organization offers mental health services it has to comply with government regulations related to issues, such as the training of its employees, employing qualified health workers and meeting other standards that have been set by the government as it carry out its operations. On the other hand, SCMHCC has to comply with OSHA standards regarding safety as well as health standards in its operations. Failure to comply with these standards may result to the hospital being fined heavily. Another legal issue that has a direct impact on the operations of the mental health center is its legal status. It is a nonprofit organization; therefore it has to comply with all regulations that guide nonprofit organizations in its jurisdiction of operations, such as filing tax returns and other legal issues that it has to always take into consideration in all its activities.

Economic factors: it is impact to note that the prevailing economic conditions at any given time have a direct effect on the SCMHCC business activities. The purchasing power of the customers is determined by the prevailing conditions in the economy, such as inflation levels, taxes and other factors.The ability of the organization to generate revenues to finance its operations from donors, government and customers during bad economic times, such as when there is slow economic growth and high levels of inflation reduces, affecting negatively its ability to offer quality services to its customers.

Social factors: there are many changes in the society, which are affecting the way organizations conducts their operations. In the Butler County in the recent years, there have been many changes in the social system, leading to a high number of breaks up in families, stress issues. Therefore, the organization is always affected by the changes as it overwhelmed by the number of people seeking mental health services to overcome mental health challenges that are brought by changes in the County social system(Kennerley& Neely, 2003).

External Operating Environment

SCMHCC operations are in one way or another affected or likely to be affected a number of issues in its external operating environment. Firstly, changes in the legal framework guiding its operations, means that the organization has to comply with changes and in most cases the changes are always costly to implement. On the other hand, the organization has to invest heavily in the area of health information management systems, such as health record systems in order to ensure that it operates in a smooth manner. Lastly, reduction in the amount of revenue that SCMHCC is able to raise from it different sources of finance may have a negative impact on its ability to carry its operations in a smooth manner.

Internal Environment Analysis

Internal Strengths : There are a number of strengths that SCMHCC has that makes it easier for it to carry out its operations. To start with, its legal statues make it easier for it to generate revenues from government grants and contributions from well-wishers. Secondly, the organization has qualified team of professionals making it one of the best mental health centers in its target market. Thirdly, the ability of the organization to offer subsidized services to its customers increases the number of people who seeks for mental health services from it, thereby being able to increase its abilities to generate revenues. On the other hand, ability to computerize its services and records is another strength that the organizations has, as this increases its operational efficiency, which is critical when it comes to the reduction of the cost of operations. Additionally, diversification of services that the SCMHCC offers to its customers is also an important area of strength. This means that the organization has the ability to generate income from different services it offers to the client, making it easier to run its operations during hard economic times.

Furthermore, the organization has personalized the services that it offers to its clients, whereby customers are treated as individuals rather than groups. This a great internal strength that the organization has as it enables it to enhance the value of services that it offers to its customers; hence creating their loyalty towards the services it offers to them. Lastly, the organization has highly committed employees to its vision and mission statement. The commitment of the employees its vision and mission statement makes them provide high quality services to its customers throughout a financial year.

Internal weaknesses: after examining the internal environment in which SCMHCC operates in, it reveals a number of weaknesses that the organizations has. Firstly, the organization does not invest in the area of research. Research is a critical component when it comes to provision of health services to the general public. Failure of the organization to invest in research makes it difficult to keep with the changing pace of the mental health field. Secondly, the organization has not yet fully implemented the OSHA standards, putting its employees at risks of being attacked by mentally sick people. It also puts their health at risk due to poor disposal of waste materials. Lastly, relying mainly on donors fund is a weakness as during hard economic times the donations reduces, making the organization not been in a position to offer all its services in an effective manner(Baron, 2003).

Organizational Resources

SCMHCC has rich resources that make it easier to offer its services to the target customers. Firstly, the organization has human resource that is committed to its mission and vision statements. Secondly, SCMHCC has huge financial resources at its disposal. It is able to generate income to meet its operational costs from donors, government grants and the revenues that it generates from subsidized prices that it charge its customers. On the other hand, the organization hasa rich technical resources, such as good technology that enhances the efficiency of its business activities.

Competitive Position and Possibilities

Given that SCMHCC is a nonprofit organization, it is able to offer its mental health services at subsidized services, giving it’s a competitive advantage when compared to profit making organizations. This means that most of the customers prefer the organization services because they are cheaper compared to the ones that are offered by its main competitors in the market. On the other hand, due to the legal business status of the organization, it has the possibility of receiving massive support from the government and well-wishers boosting its financial resources in the future.

Organizational Structure

Every business organization has its own structure in place depending on its needs. In the case of SCMHCC it has a functional organizational structure. The structure is organized in a manner that departments and units are divided based on the functions that they play towards the attainment of the organization goals and objectives(McPhee & Poole, 2001). The department heads are supposed to report to the organization’s board of management, which is the central decision maker on the key issues affecting the organization. SCMHCC organizational structure enhances its performances as it allows for division of labor, thereby increasing the quality and standards of services offered by each division.

References

Baron, D. P. (2003).Business and its Environment (p. 2). Upper Saddle River, NJ: Prentice Hall.

Folland, S., Goodman, A. C., &Stano, M. (2007).The economics of health and health care (Vol. 6). New Jersey: Pearson Prentice Hall.

Kennerley, M., & Neely, A. (2003).Measuring performance in a changing business environment.International Journal of Operations & Production Management, 23(2), 213-229.

McPhee, R. D., & Poole, M. S. (2001). Organizational structures and configurations.The new handbook of organizational communication: Advances in theory, research and methods, 503-543.