The Impact of External Environmental Factors on the Strategic Planning of an Organization
The focal point of most healthcare organizations if not all, is safeguarding and preservation of human health life. As a result, most healthcare institutions strive to achieve affordable and competent healthcare to all. However, the attainment of affordable and universal healthcare is not a walk through the park. Several barriers exist along the course of apt healthcare provision. Chief among the factors that influence quality healthcare provision are external factors. However, accountable healthcare leaders ought to respond to external factors in a manner that is beneficial to both an organization and the community at large 9Górecka & Szalucka, 2014). Therefore, apposite strategies need to be instituted to limit the negative impact of external factors and to improve organizational triumph.
The Impacts of External Environmental Factors
Within the scope of attainment of a Magnet Status, the small independent hospital in rural Georgia should be prepared to face the impacts of external environmental factors by the horn. Examples of external environmental factors faced by organizations according to Walston, (2014) include climate, technology, competition, political, media, economy, and fashion. In essence, external environmental factors are immune to control. The small independent hospital in rural Georgia, therefore, cannot control its competitors, the overall economic conditions, and any changes in the law. Conversely, there is still some room for the CEO of the hospital to impose some control measures in the manner in which the hospital will react to any aspects of external environmental changes (Metcalfe & Lapenta, 2014).
Economic External Environmental Factor
The prevailing economic conditions within a country have a direct effect on the spending capacity and patterns of people. Any element of increased unemployment and high rates of interests automatically results in limited access to proper healthcare.
Market Competition External Environmental Factor
The strength of healthcare competition is always in alteration due to external market competition. The small independent hospital should hence be prepared for entrance and exit of healthcare competitors. More so, the hospital should be prepared of healthcare competitors to interfere with the marketing strategies, especially in pricing and product lines.
Technological External Environment Factor
The pace of technological growth is indisputably immeasurable. As a result, a failure to embrace technological change is a catalyst for organizational failure. In essence, technology is a thorn within the flesh of healthcare provision. Technology subjects a healthcare organization under constant pressure. Therefore, the small independent rural hospital in Georgia has to aptly and adequately embrace technological change or be put in jeopardy as far as maintain market structure is concerned.
Recommended Strategies for Addressing External Factors
Besides, to limit the influence of economic conditions as an external factor on organizational operations, an appropriate strategy will involve limiting all factors causing financial hardship. Even though economic conditions at a global stage may be relatively hard to contain, both the government and the private sector within a country have the muscle ability to impact on the economic conditions. Betterment of economic conditions, for instance, will entail the lowering of interest rates and the creation of employment opportunities. Through such initiatives, financial hardships will be contained, thus increasing citizens’ access to healthcare.
Additionally, marketing healthcare competition can be contained by the hospital’s CEO staying current and alert its competitors. The hospital will, therefore, adopt better practices that will grant it a competitive advantage over the rest of its competitors. Also, there is no short cut for dealing with technology as an external environmental factor. The best recommendation strategy to deal with technology’s influence on organizational operations are adopting it. Technology changes the delivery of services within the healthcare sector. Therefore, the best remedy for the small independent hospital with technology as an external environment is embracing it to maintain its market share and be competitive.
References
Cheng, W.-H., Kadir, K. A., & Bohari, A. M. (2014). The strategic planning of SMEs in Malaysia: A view of external environmental scanning. International Journal of Business and Society, 15(3), 437–446.
Górecka, D., & Szalucka, M. (2014). Application of MCDA methods and stochastic dominance rules in the entry mode selection process in international expansion. Multiple Criteria Decision Making, 9, 5–31.
Metcalfe, L., & Lapenta, A. (2014). Partnerships as strategic choices in public management. Journal of Management & Governance, 18(1), 51–76.
Walston, S. L. (2014). Strategic healthcare management: Planning and execution. Chicago, IL: Health Administration Press.
Wayland, M. S., & McDonald, W. G. (2016). Strategic analysis for healthcare: Concepts and practical applications. Chicago, IL: Health Administration Press.