Amesbury Hospital is a health care facility located in Massachusetts offering specialized medical services. The Hospital has different departments ranging from inpatient to emergency departments. Some of the hospitals located in the same locality as Amesbury Hospital are Athol Memorial Hospital, Nashoba Valley Clinic, McLean Hospital, and Boston Medical Center.
Environmental Factors Facing the Hospital
Technological changes, demographic changes, policies implemented by the government, competition and socio-cultural forces are some of the environmental factors that the hospital encounters. Competition arises due to the presence of other hospitals in the same geographical area offering competitive and better services than Amesbury Hospital. There are renowned hospitals such as St. Elizabeth Medical Center which is known for the best doctors and facilities in all medical areas. From the basis of prejudice, most patients are likely to visit hospitals that have been referred by individuals such as friends and relatives because of the feeling that they would get better services (Campbell & Craig, 2016). Governmental policies implemented in the state may not favor Amesbury hospital. For instance, the government has standardized costs for cancer treatment, yet the hospital incurs exorbitant costs in purchasing the equipment and machinery to use when administering medication. Given that the hospital has little say on governmental policies, they are likely to suffer losses and bear the consequences of any laws passed by the government. The changes in demographics involve population, gender or even the age. The hospital may be forced to restructure its operation because of the effects of change on gender, age, and population. For instance, the population has been gradually increasing over the past decade, and the hospital may be forced to make changes to cater to the rising population. There has also been an outstanding balance between both genders over the past decade as opposed to dominant female admissions that had been common in the past. The hospital may be forced to redesign its structures to carter for the change. The age bracket is also a factor to be considered by the hospital since there are more old people being admitted as opposed to the young people that the hospital had been admitting. The technological changes will lead the hospital to incur costs in acquiring modern equipment and machinery to use during treatment (Worthington, Britton & Thompson, 2018). Technological changes will also lead to the hiring of experts to make smooth transitions, and this has a financial implication. Socio-cultural factors pertain lifestyle, customs, and values that people uphold. The diverse population would require that the hospital incorporates all kind of patients to encourage a second visit.
Threats that the Organization faces
- Increased hiring costs: The hospital is likely to incur high costs in recruiting professional to improve service delivery. The costs may be salaries, wages, and allowances. The hospital may lose its employees because of the attractive salaries offered by competitors.
- Poor leadership and communication: Effective leadership is essential especially in the healthcare setting because it strengthens quality and integration of care. The hospital faces a challenge in leadership style as there is poor channeling of information from various departments. Poor communication leads to poor service delivery and eventual loss of revenue as patients will opt to look for other facilities.
- Inability to innovate: In the current economy, the workforce is essential in productivity and fostering innovation. The organization faces the challenge of retaining the top talents, and thus there are low chances of embracing innovation. Given by the fact that almost 80 percent of employees are actively seeking for new opportunities, the hospital is likely to lose the required skills to encourage an innovative environment.
- Lose of competitive advantage: The hospital faces a threat because of changes in customer preference, challenges from competitors and internal changes. Patients are likely to switch to a competitor regardless of whether circumstances are favorable or not. Competitors are also embracing new strategies, and thus the hospital is expected to lose the competitive advantage (Cherunilam, 2010).
- Inaccessibly: The organization is inaccessible to most patients because of its location. There is no any major highway passing near the hospital, and most patients are likely to choose a hospital that can be easily accessed.
Available Opportunities to the Hospital
- Ability to expand: The hospital has an added advantage because there is more space within its location that could cater for expansion. The organization can use the space to set up more facilities to attend to more patients in the given locality.
- Legibility to acquire more funds: The hospital has funding opportunities both from the government and donors. The hospital can maximize on such opportunities to improve service delivery and win more patients.
- Changing demographics: The changes in demographics offers an opportunity to upgrade on service delivery to carter for the arising needs. The hospital can gain a competitive advantage over other hospitals.
- Physical environment: There is an ongoing road expansion which will see the hospital being connected to a wider area of the state which makes it convenient for patients to easily access medical treatment.
- Legislative policies: There are policies that are still under amendment and if they are implemented, the operation of the hospital shall not be interfered. Therefore there are opportunities to increase revenue.
The business external environment is essential because it helps organizations in identifying opportunities and gaining the first mover advantage. In addition, the business environment helps in improving performance of organizations as they continuously monitor their environment and suitable practices are adopted for the success of the business.
Campbell, D., & Craig, T. (2016). Organisations and the Business Environment. New York: Routledge.
Cherunilam, F. (2010). Elements of Business Environment. New Delhi: Himalaya Pub. House.
Worthington, I., Britton, C., & Thompson, E. (2018). The Business Environment. Harlow, United Kingdom: Pearson Education Limited