Components Constituting A SMALL BUSINESS Environment Commerce Essay

The fast changes in the healthcare environment have exerted significant pressures on the clinics to pay attention to marketing strategies generally speaking and health service strategy specifically. Therefore this research investigates the effect macro environment factors have on medical service strategy created by the hospital professionals. This analysis proposes and checks a four factor macro environment model that explains the considerable variance in health service strategy in the nursing homes. These factors include politics, Economic, Social, and Technology, namely the PEST Evaluation. The study continues on to carry out a SWOT Research of the company and critically examine how the company can attain to meet the stakeholders' anticipations, and the effect that specific stakeholders have on the health and public care company. We will critically assess the role of information management systems for enhancing the performance of the health and cultural care company, and your choice making techniques that the management uses to create the business strategies of an organisation.

Components constituting a business environment

The two extensive categories that any business environment can be classified into are external and internal conditions. A macro environment is thus a part of the external environment.






Figure 1: Business environment and its own components


The new environment truth affecting the procedure and performance of organizations is being characterized by ongoing and often unstable change. Because of this, many phone calls have been voiced for organizations to make the capability to respond and adapt to changing and uncertain environmental conditions, to be able to maintain their competitive situation (Cardwell & Bolon, 1996; Godiwalla et al. , 1997; Chung, 2008; Aapo & Tomas, 2008).

Macro environment has been the main topic of sizeable research in both business and marketing literature just lately. Furthermore, it became a location of primary concern to all organizations, depending critically on a refined understanding and examination of both industry within which the hospital will remain competitive, and the competitors employed in same arena. Studying macro environment factors can be an important issue in conditions of the increased pressure positioned upon clinics and the competition that is available between private hospitals. Any try out at conceptualizing the term "macro environment" should, at some stage, involve an effort to answer certain questions, such as:

1. What's the meaning of macro environment in clinic industry?

2. What are the primary factors of macro environment? And just how do they effect health organizations?


Macro environment is basically external to the business organization. Macro environment factors are uncontrollable factors and beyond the direct impact and control of the company. Its factors are powerfully affect to its functions. Exterior environment involves individuals, groups, organizations, organisations, occurrences, conditions and pushes. They are frequently contacted by the organisation for its functions. It establishes good relationship and interdependent relations in form of conducts business transitions. Proper building and supervision of macro environment permit appropriate strategies and procedures to cope with and make changes.

The major pushes represent uncontrollable parameters that hospitals must monitor and that they must be respond. Marketers must pay attention to interactions among forces to identify and take good thing about new opportunities and dangers. For example of the offerings are affordable (monetary), they could actually change behaviour and behaviour (communal cultural) (Kotler et al. , 2008). Macro-environment contains broader forces that have an impact on the actors in the micro environment (Armstrong & Kotler, 2011). There are several elements for a macro environment, an in depth picture of which is given below.

Figure 2: Macro Environment Elements

The need for inspecting the macro environment arises from the critical role it takes on in the development and success of organizations. This reality has been evidently outlined by Kotha and Nair (1995), and later by Wagner and Gooding (1997). Thus, by understanding an organization's external environment, Fombrun and Shanley (1992), Gimeno and Woo (1996) point out that strategic decision-makers will not only assist in improving its competitive position but also increase its functional efficiency, and gain battles in neuro-scientific global economy. Predicated on this bottom line, Hill and Jones (1998) have further argued that to achieve success, a business must either fit its technique to the industry/sector environment in which it manages, or be able to reshape the industry/ sector's environment to its benefit through its choice of strategy. Thus, "companies typically are unsuccessful when their strategy no more fits the environment in which they operate" (Hill and Jones, 1998).

Crucially, any review of the external environment will include the id of four major factors, specifically Political, Economic, Public and Technological.


Political Factor:

A Political environment involves laws, government firms, and pressure teams that affect or limit various organizations and individuals in confirmed contemporary society (Armstrong & Kotler, 2011). The politics factors that could influence the health service strategy in health care scenario in particular are government goals, plans, decisions, legal restrictions, various governmental units sharing legislative expert, laws related to taxation, and privatization decisions. The medical governance framework has, at its fundamentals, the foundation viewpoint of constant quality improvement (CQI) and total quality management (TQM). Both of these philosophies were developed first in processing and industry, and then adopted by health services companies in the first 1990s (Berwick, 1989; Kitson, 1994). The entire philosophy is to create a culture of continuous quality predicated on effective co-operation between staff, systems limelight, investment in people and staff, and self-monitoring (McLaughlin and Kaluzny, 1999; Ovretveit, 2000).

The political environment is dependant on the uncertainty. In some countries with multiple amounts of political gatherings, a political party will not get clear bulk to form a authorities. In this example, business activities collapse credited to minority backed government. The politics parties cannot formulate stable administration; it affects and fluctuate the federal government policies. Therefore, business company and public desire a stable government to function smoothly.

Economic Factor:

The monetary environment includes factors that have an effect on consumer purchasing electricity and spending patterns (Kotler et al. , 2011). It includes the economical conditions, economic procedures, and the monetary system that is important to exterior factors of business. Financial fluctuations in the home market and inflationary factors are also effects that contain an influence, because they can produce both positive and negative results on the demand for goods and services. For instance, they could have an effect on the features of certain goods or may require workers to receive specific types of training or preparation (George, 2009; Girijasankar & Bhar, 2011).

The monetary conditions of the country include dynamics of the market of the united states, the general financial situation in the region, conditions in source market segments like money, material, market raw material components, services, source markets and so forth which effect the supply of inputs to the organisation, their costs, quality, availableness and stability of way to obtain products and services. The application of economic examination in medical decision making, however, particularly in regards to to medical need, has shown to be highly controversial. Information varies about the extent to which decision manufacturers actually use financial analysis.

Socio-cultural Factor:

Social and ethnic environment comprises of institutions and other makes that have an effect on a society's basic beliefs, perceptions, tastes, and behaviours (Kotler et al. , 2011; Armstrong & Kotler, 2011). Socio-cultural fads can present both dangers and opportunities for many hospitals. They are simply reflected in customer wants and needs in conditions of an 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 needs to be analyzed while formulating company business strategies. In case a company ignores the customs, traditions, tastes and preferences and education, it can affect the business enterprise. It consists of factors which are related to human being connections and the impact of sociable attitudes and ethnical values. They are bearing on the business enterprise of the organisation.

Technological factors:

The technology is perhaps the most remarkable power now shaping, our future (Kotler et al. , 2011). Scientific factors include impact of rising solutions, Impact of Internet, decrease in marketing communications costs, increased remote control working, research and development activity, and impact of technology transfer. Technological factors sometimes pose serious problems. A firm that unable to cope with scientific changes may not be survived. Further, the differing scientific environment of different markets may be called for service improvements.

Technology in health services organizations has released such good stuff antibiotics, robotic surgery, MRI. The solutions environment change quickly. Before most of professional medical managers didn't find out about the ever-updating technologies that they become familiar with of nowadays. New technology create new markets and opportunities. Therefore, the professional medical managers should research these updating technology across the world to look at them in their healthcare business or nursing homes. Dramatic improvements in updating technology affect not only the products and services provided by organizations to customers but also the work processes needed. They can offer opportunities to those who may take advantage of such advancements. In any other case, expecting and giving an answer to technological trends can prove to be costly (Kotler et al. , 2008).


In order to determine factors both within the exterior environment and within the company, a SWOT (Strengths, Weaknesses, Opportunities, and Dangers) evaluation have been carried out, the findings of which are enumerated as follows.


Healthcare brand in the united kingdom is a universally known and well-respected brand.

An important sector in every local economies that is a major way to obtain skilled job.

National authorities prioritisation of the sector for assistance and skills development.

Future employment progress on an upward trend.

There is scope for increased integration and higher account of social care

There are strong links between Division of Health insurance and the other health care establishments like NHS

There are several dedicated communications resources working on social care

There are healthcare companies with working groups with key stakeholders already place up


Every healthcare company has strong links to the Office of Health, therefore cannot establish as an independent organisation.

The complexness of the sector and its institutions.

A negative open public conception of the sector as being characterised by low pay, anti-social hours and working conditions.

Substantial recruitment difficulties and skills gaps.

The healthcare staff come from different and numerous ethnicities and countries and need to create a common personality of working. Intensive training has to be provided yet to all or any the personnel, in addition to communication training; everybody's still learning the work.

Information gathered has essentially remained the same for quite a while. Decreased relevance and usefulness.

Perceived burden of collection among stakeholders.

Healthcare branding, including the NHS, is a hurdle for social good care stakeholders.


To be observed as a way to obtain information indie from government and Section of Health.

Large-scale recruitment of new and skilled personnel.

Engage new stakeholders.

Improved levels of service associated with a much better trained and encouraged workforce.

Potential for much better IT systems and skills to increase patient target of good care and early confirming of medical successes and shortcomings.

Radical pay reform agenda in the NHS which for the very first time aligns pay and compensation with knowledge and skills development.

Improve the online presentation of information.

Move from measuring activities to calculating outputs and effects will make information of more functional use in implementation and monitoring of services.

Chance to be seen to streamline collection operations.


Loss of proper skills and knowledge.

Vast diversity in the cultural and communicational backgrounds of the staff and not having the ability to follow a single agenda.

The highly politicised mother nature of the NHS undermining medium and long-term planning.

An older years profile than the average for all market sectors with proportionately low numbers of young employees stepping into the workforce.

A relatively high turnover of personnel in some sub-sectors and occupations.

Lack of management skills.

Slippage to delivery of the common initiative, and its own influence on the reliability of the programme.

Failure to sufficiently consult with and indulge all stakeholders.

Wider local government plan may be obstructive.


The term Stakeholders identifies everybody who comes with an interest in the health and wellness of the neighborhood human population and the delivery and development of health and social good care services. They can range from individual service users and carers to providers such as main care pros, other statutory organisations and local Councils as well as the voluntary and community industries and the wider open public.




Figure 3: Stakeholders that constitutes core components of health

Stakeholders can be categorized into four teams:

Key Players

Keep satisfied

Keep informed

Minimal effort

Key Players:

These are the main Stakeholders - they have high ability and high fascination with healthcare sector and its own activities. Such stakeholders need to be involved with all relevant innovations and may have a considerable influence over the continuing future of medical care sector. They include health commissioners, Practice Based Commissioning (PBC) Communities, the NHS, specialist commissioners (For instance, Neuro), medical care providers, local full time officers of accepted unions, patient representative groups, healthcare sector employees, public health, GP's, panel people, and local trusts.

Keep Satisfied:

This is an especially difficult group to deal with. In this particular group, we often find local representative or legislative systems. They act passively most of the time, but that can exert a massive impact on the organisation. It is therefore necessary to evaluate potential motives and reactions of these groups in every major developments, and to involve them corresponding to their pursuits. This group includes MPs, Interest Teams, Health Scrutiny Committee, CFT members, local multimedia, Local Strategic Partnerships, Health and Well Being Board, Good care Quality Payment, and other professional bodies

Keep Informed:

Stakeholders in this group have a higher interest in the organisation and its actions. However, they may have limited means to affect. Despite their lower affect, such stakeholders could be valuable allies in important decisions. Therefore, it is a good idea to keep them educated about the problems they want in. This group of stakeholders may include voluntary organisations, local neighborhoods, areas that are hard to reach, Mental Health Trust, Attention givers and users, and other unbiased sector organisations and challengers.

Minimal Effort:

Stakeholders in this group have little curiosity about healthcare corporate ideas. They also has little capacity to exert much impact. Hence, it is appropriate to keep these groupings informed, but not commit too much effort into them. They include housing, police and national media.

Focused on users, carers and neighborhoods, stakeholder involvement must give attention to directly accessing the views of service users and carers who are employing health and communal care and attention services as well as those surviving 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 key points that will underpin all stakeholder participation:

Stakeholders must observe that their input has a real impact on the decisions made and that they are making a genuine difference to how local services are being organized and supplied.

It is vital that opinions from involvement functions is communicated to individuals and that the reason why for why particular decisions were taken are clearly defined.

The degree of participation should be proportionate to the range of the problem being considered.

The approach to involvement should be tailored to ensure that appropriate stakeholders are reached.

It is important that stakeholders are provided with an chance to take part and are actively supported to become involved either at a area level or on a particular concern basis.

It is preferred that, as far as possible, across Health and Social Good care organisations, involvement with stakeholders on needs analysis and strategy development be studied ahead jointly by the Regional Panel, the Organization and Trusts. Personnel working in each one of the organisations should seek to form close working human relationships to ensure that there is minimal duplication in relating local stakeholders and agree with the fact joint processes when planning on taking forward this work. By adopting a far more collective treat it will maximise the utilization of available resources both in terms of staff and information, minimise the time required from stakeholders to contribute to participation exercises and ensure that sections within the health and care and attention sector listen to the same text messages and can plan services consequently.


Information management systems have much to offer in managing health care costs and in increasing the quality of care (Kolodner et al. 2008). As well as the embedded role of information technology in medical and diagnostics equipment, Information systems are distinctively positioned to capture, store, process, and converse timely information to decision makers for better coordination of professional medical at both the individual and populace levels. For example, data mining and decision support functions can identify potential negative events for a person patient while also adding to the population's health by giving insights into the causes of disease problems.

All types of business need powerful and comprehensive quality and business management systems however this takes on added importance when lives are in the hands of the business enterprise involved. Healthcare is certainly in that category. Another hallmark of healthcare information is that it is highly personal. As a result, any copy of information between gatherings via technology consists of risks that the info could fall in to the wrong hands. Although electric information can be made as secure as newspaper records, electronic storage may be perceived as having an increased probability of leakage, and such worries get further compounded by press attention. Thus, patients' identified probability of compromised level of privacy is often higher than the actual likelihood.

An ideal Information management system should help the customers:

Provides complete data protection and privacy

Meet the business improvement objectives.

Provide interfaces to other existing data source repositories.

Strategically unite and align quality and business process information that produces consistency improvement and fits standards

Enable business governance and organizational communication.

Streamline access and utilization of data repositories and analytical systems needed for long-term business improvement.

Provide analytics and strong search features for healthcare process performance, evaluation, management review, and planning.

Healthcare costs have been increasing and the demand for affordable high quality services is also increasing. Effectiveness of a hospital or nursing home is determined by the efficiency of its operations and management systems. Some of the major factors identifying the efficacy of your health establishment include patient treatment management and patient satisfaction. In order to meet these requirements there has been the growing need to use medical center information systems. The medical care industry has observed an increased spending on IT with almost all of the private hospitals and professional medical organizations shifting to electronically-based information systems.

Healthcare Information management system should provide similar usage of medical details throughout the country by causing the examination online through different digital tools. This may make sharing information among medical professionals for treatment and consultation much easier. It will ensure increased quality and confidence, archiving capabilities. That is is a significant tool to evaluate clinical benefits and control budget. It needs strong infrastructure to broadly utilize the data available online to provide continuity on data source and information integration.

When you have a healthcare organisation, for example a clinic, the info management system should provide decision making functions based on qualitative information and knowledge. There must be a continuity of medical data and care information. This may aid in increasing and increasing the efficiency of medical processes. It will also help in increasing clinical safe practices and the quality of the results. It is with no question that it could be said that better Information management system can offer better documents and better customer services. The following diagram depicts a good example of what an Information Management System in a hospital should include.










Figure 4: Patient Information Management System


Most decision-making techniques use an activity used by market leaders and professionals to make decisions. This consists of the following steps:

Identifying and determining the issue.

Gathering information, facts and assumptions.

Analyzing the problem.

Developing options and solutions.

Comparing and evaluating these options and solutions.

Select the perfect solution is that best addresses the trouble, or a best different decision.

Acting on your choice.

The way in which decision making is approached is recognized as an important function of leadership and management in healthcare. This increasing interest along the way of decision making as a function of management is evidence of a much larger shift in general management thinking among the list of educational community. Although we customarily associate leadership and management in health care with individuals, the complexity of change required in the health attention system means a new paradigm of management is required. Relational methods to healthcare management offer an alternative view. Rather than being the function of an individual, leadership is known as to be an end result of the operations that emerge when several individuals interact. Relational techniques are being recognised as as influential in changing individuals' attitudes, behaviours and activities as the immediate influence of an formal director.


In finish, this study mainly focuses on the medical sector and the external factors that have an impact on 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 own impacts on the health service strategy by using analytical tool like Infestation evaluation. The empirical conclusions attracted from this analysis are multi-faceted and as a consequence it is important that healthcare managers focus on the influences of PEST environment elements on health service strategy. The analysis concludes that medical care situation requires new health services, for permitting the hospital to meet the needs and needs of the most significant possible market. Also if medical technology worldwide is up to date it helps nursing homes to gain opportunities that lead to increased market talk about and new market penetration.

This study has layed out the stakeholder management technique for healthcare sector to support the delivery of its organisational aims and its development. It has generated the current condition of knowledge of stakeholder power and impact, recognizes key stakeholder categories and the affect of each group on the medical organisation. In addition, it identifies the the way the key proper priorities and action arrange for improving stakeholder romantic relationships will be developed. Your choice making process has been shifted from the key management and doctors to a wider selection of management.

Some recommendations for even more research in this area:

The study could be replicated with other services to help expand examine the transferability of the macro environment in the healthcare industry.

Study the proposed model in other European countries in order to gain more validation for the model and more generalised findings.

Study other service sectors, like general population sector, to be able to develop a model that presents the service sector more generally, somewhat than representing the medical care sector by itself.

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