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External Environmental Analysis

Purpose of environmental analysis

Environmental analysis is a tool of trategic plan that is used to identify all the internal and external factors that can affect the performance of a given organization. In this case, the purpose of environmental analysis is to identify the internal and external factors such as political factors, social factors, legal factors, technological factors, environmental factors, and economic factors that can affect the performance of Mayo Clinic. So, when an environmental analysis is done of Mayo clinic, then it is aimed at assessing the organizational opportunities or level of industry threats that these factors may bring to the clinic. These environmental evaluations would not only align decisions of the clinic but also the strategies with its environment.

Implications of environmental analysis in the creation of a strategic plan

The level of accuracy in evaluating environmental factors during the environmental analysis would determine whether or not the strategic plan will fail or succeed. So, an effective environmental analysis can enable management to identify organizational opportunities and industry threats, which in turn would aid in focusing the efforts to ensure success of a business. To explain the possible implications of environmental analysis on a strategic plan, we will have to revisit the factors in the environmental analysis

Political factors: The country’s prevailing political situation constitutes the political factors under analysis. Environmental analysis will not only read the prevailing political climate of a country but also the global political conditions as they affect the business and the country in which the business is operating. Some political factors such as government stability, tariffs and laws on taxation, regulations on entry into the industry, and policies of the government will affect the decisions of the clinic.

Social factors: You would want also to consider the mindset of the society in which the clinic is operating. Some social factors such as social lifestyles, levels of education, domestic structures, wealth distribution, cultural implications, demographics and gender can affect the demand of the clinic’s services and products.

Economic factors: Apparently, economic factors such as level or interest rates, rate of inflation, accessibility of credit to potential buyers, levels of unemployment, rate of foreign exchange policies that regards to the monetary and fiscal endowments of the country, and the level of disposable incomes of individuals, are those that state and size of the economy because they determine the direction. So, it is important to develop strategic plans that are in line with these economic factors.

Technological factors: Advancements in technology is influencing how businesses conduct their businesses. Because the level of technology changes on a daily basis, the clinic will have to keep updated because it is through technology that the management can know the reactions of consumers to various trends. In this regard, it is important to look at factors such as the rate at which technology is becoming obsolete, platforms for innovations, and the new discoveries when developing a strategic plan for Mayo clinic.

Environmental factors: factors such as geographical location of the business, weather and climatic changes, laws on disposal of waste products, and regulations on the consumption of energy, among many other factors can affect the operation of the business. In this regard, it is important to consider their impact on the development of strategic plan of Mayo clinic.

Legal factor: changes in laws occur from time to time, which in turn may affect the business environment. Apparently, when a regulatory body sets up a law, it will not only affect the industry but also the businesses operating in that industry. That is the same way Mayo clinic may be impacted by changes in regulation in the healthcare industry.

Evolving external issues that can have an impact on the strategic plan

Technological issues: Advancements in technology is influencing how businesses conduct their businesses. Because the level of technology changes on a daily basis, the clinic will have to keep updated because it is through technology that the management can know the reactions of consumers to various trends. In this regard, it is important to look at factors such as the rate at which technology is becoming obsolete, platforms for innovations, and the new discoveries when developing a strategic plan for Mayo clinic.

Economic issues: Economic factors such as level or interest rates, rate of inflation, accessibility of credit to potential buyers, levels of unemployment, rate of foreign exchange policies that regards to the monetary and fiscal endowments of the country, and the level of disposable incomes of individuals, are those that state and size of the economy because they determine the direction. So, it is important to develop strategic plans that are in line with these economic factors.

Political issues: the country’s prevailing political situation constitutes the political factors under analysis. Environmental analysis will not only read the prevailing political climate of a country but also the global political conditions as they affect the business and the country in which the business is operating. Some political factors such as government stability, tariffs and laws on taxation, regulations on entry into the industry, and policies of the government will affect the decisions of the clinic.

Benefits of competitive analysis as part of the strategic planning process

Identifies market gaps: it is during competitive analysis that the strategic management is able to identify market gaps, that presents opportunities where markets are either underserved or unserved. Then the clinic can take advantage of such opportunities.

Enables development of products: Through competitive analysis that the strategic planers can identify demand for new products. This is an opportunity for the clinic to develop those products to serve trhe needs of customers.

Captures market trends: Through competitive analysis that strategic managers can spot new opportunities brought about existing or upcoming trends in the healthcare industry. When the clinic identifies these opportunities, it can then take advantage of them accordingly.

Helps in marketing: After identifying new market demand that has been revealed through competitive analysis, then the markting managment can develop marketing strategies to fully take advantage of these open opportunities.

Mayo’s ability to accomplish its mission, goals, and objectives

As part of it strengths, Mayo acknowledges and has prioritized CAUTI as its main initiative, Apparently, CAUTI is tied directly with the vision, mission and objectives of Mayo clinic. Besides, Mayo has a competent team led by a physician champion that is tasked with the responsibility of clinic’s CAUTI.

Mayo's ability to respond to internal and external changes and challenges

To be able to respond to internal and external changes and challenges, Mayo clinic has multidisciplinary team that has unit based champions. Equally, the clinic has the capacity to continually work with the changes in EMR screens. To respond to challenges, Mayo clinic has the capacity to effect timely reporting because the clinic has the capacity to review every staff’s challenges.

Goals and objectives of Mayo clinic for a 3- to 5-year period

Under this section, i will incorporate the findings from the SWOT analysis to state clearly the goals for a 3 to 5 year period and then define those goals to reveal the objectives to be achieved when the goals have been implemented.

Goals

i. Caring with compassion

ii. Pursuing equality in healthcare

Objectives

i. To be able to provide healthcare with compassion, Mayo clinic will endeavor to offer high quality care to all patients irrespective of their cultural backgrounds.

ii. To be able to achieve pursuit of equality in healthcare delivery, Mayo clinic will endeavor to identify and eliminate any disparities that might hinder the achievement of this goal. As a result, Mayo clinic will become the industry leader not only in equality but also in science and scientific research.

References

Baum, N., & Henkel, G. (2010). Marketing your clinical practice: Ethically, effectively, economically. Sudbury, MA: Jones and Bartlett.

McCarthy, D., Mueller, K., & Wrenn, J. (2009). Mayo Clinic: Multidisciplinary Teamwork, Physician-Led Governance, and Patient-Centered Culture Drive World-Class Health Care. The commonwealth fund. Vol 27.

Sharma, S. (2000). Managerial Interpretations and Organizational Context as Predictors of Corporate Choice of Environmental Strategy. Academy of managment. Vol 43 (4): 681 – 697.

Grading Criteria

Strategic Plan Part II- Environmental Analysis and Setting Strategic Goals

This assignment is due in Week Three.