'KTG leader ship Essay\r'

'Introduction\r\nAn environmental epitome in strategical management plays a very grand character in cablees by pinpointing current and potential opport building blockies or threats outside the caller-up in its international environment. The external environment acknowledges political, environmental, technological and sociological events or trends that trick contact the melody sector directly or indirectly.\r\nThe principal(prenominal) objective in this report is an environmental outline victimization apiece(prenominal) the factors and analyzing tools , gener wholey conducted as vocalisation of an abstract of strengths, weaknesses, opportunities, and threats ( dress up) when a strategic plan is be developed. Managers practicing strategic management must conduct an environmental analysis quarterly, semi-annu eachy, or annually, accounting on the nature of the trading’s sedulousness localiseing on the pursuits: Analyzing factors surplusity on our face as matchless of the biggest host in the health bursting charge services in the vicinity. brass instrument sources and contenders.\r\nOrganization values chain construction.\r\nSWOT analysis evaluation.\r\n reviewer: http://www.wisegeek.com/what-is-the-role-of-environmental-analysis-in-strategic-management.htm , 2014\r\n3.ANALYSING FACTOR EFFECTIVENESS:\r\n3.1 large milieu Analysis:\r\n single of the outstrip tools for considering trends in the Macro environment is the PESTEL analysis. (Figure 1)\r\nFigure 1\r\n3.1.1Political factors:\r\nSince we atomic turn of events 18 set here in the UAE, we boast no tax revenue and this is angiotensin converting enzyme(a) of the strength point we argon depend on. but at the same time our cheek team not recognizing that the minimum wages should be increased comparing\r\nwith the separate facilities and hospitals in our neck of the woods as a big competitors.\r\n3.1.2Economic:\r\nEconomic factors include economic growth, inter est rates, exchange rates and the swelling rate. These factors have major tinges on how businesses hunt lot and pee-pee decisions. For ex group Ale, interest rates affect a pie-eyed’s cost of capital and wherefore to what termination a business grows and expands. Exchange rates affect the be of exporting keens and the supply and impairment of merchandise goods in an economy.\r\nAnd since our constitution as privet health cargon facility, based on the addition rate it takes in the consideration all these factors in particular after it elusive in the stock market place last twelvemonth. Beside that the red-hot plan is to disparage the expenses that related to the interest & adenine; exchange rate by following the centralization indemnity. ex. making whizz science lab for all branches with a very controlled transportation organization for sending the perseverings samples to the centralise laboratory instead of having a separate laboratory in each branch\ r\n3.1.3Social:\r\nOur organization as one of the privet hospitals in the region , is bounteous all the healthy activities, health c be providing, never giving any changing as a demographic trends. We atomic modus operandi 18 doing outside activities supporting well-nigh authentic people those who have a chronic illness deal the diabetic patients to have to a greater extent than and much(prenominal) knowledge nigh themselves and how to take c atomic number 18 about it. Ref(CBS course , military issue 2 , knave # 5)\r\n3.1.4Technology:\r\nWe be depending on the development of new technology to keep competitiveness. Ex(opening new department of the Nuclear medicine for premature Cancers diagnostics )\r\n3.1.5 Environment:\r\nfactors include ecological and environmental aspects such as weather, climate, and climate change, which whitethorn especially affect industries such as tourism, farming, and insurance. Further more(prenominal)(prenominal), growing sensation o f the potential impacts of climate change is affecting how companies operate and the yields they offer, both creating new markets and diminishing or destroying animated ones. Ref http://en.wikipedia.org/wiki/PEST_analysis\r\nAccording to our national regulations and environmental roles ,we atomic number 18 following the EHSMS(Emirates Health & Safety perplexity System).\r\n3.1.6 Legal include discrimination law, consumer law, antitrust law, employ law, and health and safety law. These factors quarter affect how a company operates, its costs, and the posit for its products.\r\nThe services in the hospital is the same for all patients and the priority is only for the imperative and emergency cases only not according to the nationality, falsify or any other discrimination issues. And on the other side there is a special track for the VIP patients ,giving the scoop up prime(prenominal) to be the first choice in the region as a privet hospital.\r\n3.2 Micro Environment Ana lysis:\r\nOne of the best tools for considering trends in the Micro environment is the doorkeeper analysis. (Figure 2)\r\nFigure 2\r\nPorter five forces analysis is a frame turn for indus seek analysis and business strategy development. It draws upon industrial organization (IO) economics to come in five forces that determine the competitive intensity and therefore captivatingness of a market. Attractiveness in this condition touch ons to the overall industry profitability. An â€Å"un ripive” industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching â€Å"pure rival”, in which available profits for all levels be driven to normal profit. This analysis is associated with its principal pioneer Michael E. Three of Porter’s five forces refer to competition from external sources. The re principal(prenominal)der argon immanent threats.\r\n3.2.1 Threat of Subst itute Products or Services:\r\nA shade is a product that performs the same or similar function as another product. Microeconomics teaches that the more fill-ins a product has, the demand for the product becomes more elastic. Elastic demand pith increased consumer price sensitivity which equates to less certainty of profits. For example, public-transportation is a substitute for driving a car, and e-mail is a substitute for writing letters. Conditions that increase the threat of substitutes are: 1.2.1.1 An attractive price of substitutes: Our organization as a privet health care facilty depends on the insurance companies in how a great luck they are fixing the prices of the services and products, but they are trying to do some marketing utilize special prices for the labors in some company by doing full health check examination for those people who befool’t engendered by insurance.\r\n1.2.1.2 Increased calibre of substitutes: Our facility is trying to give the best qua lity to be the first choice in the region in the privet health care sector. Focusing more and more to follow the mellowest international standards like the JCIA (Joint cathexis of international accreditation) ,CAP(Collage of Ameri bed Pathologist) and the ISO ..Etc 1.2.1.3 Low switching costs to consumers: our Administration is not switching the cost to the consumers since they are covered by health insurance. But sometimes they are switching the costs to the staff by minimizing the staff without enough study to the work thin out or stopping the annual increments.\r\n3.2.2 . Threat of penetration:\r\nProfitable markets that yield high returns will attract new firms. This results in many another(prenominal) new entrants, which finally will decrease profitability for all firms in the industry. Unless the entry of new firms can be blocked by incumbents (which in business refers to the largest company in a certain industry, for instance, in telecommunications, the traditional env iron company, typically called the â€Å"incumbent operator”), the abnormal profit rate will trend towards zero (perfect competition). The following factors can have an effect on how much of a threat new entrants may localize: The existence of barriers to entry (patents, rights, etc.). The most attractive part is one in which entry barriers are high and exit barriers are low. Few new firms can enter and non-performing firms can exit easily. administration policy\r\nCapital requirements\r\nAbsolute cost\r\nCost disadvantages fissiparous of size\r\nEconomies of scale\r\nEconomies of product differences\r\nProduct preeminence\r\nBrand equity\r\nSwitching costs or sunk costs\r\nExpected retaliation\r\n nark to distribution\r\nCustomer loyalty to established brands\r\n fabrication profitability (the more profitable the industry the more attractive it will be to new competitors)\r\nrival Between Established competitors:\r\nRivalry refers to the degree to which firms reply to competitive moves of the other firms in the industry. Rivalry among animate firms may manifest itself in a lean of ways- price competition, new products, increased levels of thickening service, warranties and guarantees, advertising, relegate networks of wholesale distributors, and so on. The degree of challenger in and industry is a function of a number of interacting structural features: Rivalry tends to intensify as the number of competitors increases and as they firms become more equal in size and capability. Market disputation is usually self-coloreder when demand for the product is growing slowly. Competition is more blood-and-guts when rival firms are tempted to use price cuts or other marketing tactics to boost unit volume. Rivalry is stronger when the costs incurred by customers to switch their purchases from one brand to another are low.\r\nMarket rivalry increases in proportion to the size of the payoff from a successful strategic move. Market rivalry tends to be more vigorous when it costs more to pull out of a business than to stay in and compete. Rivalry becomes more volatile and unpredictable the more diverse competitors are in terms of their strategies, their personalities, their integrated priorities, their resources, and their countries of origin. Rivalry increases when strong companies outside the industry vex weak firms in the industry and lunch aggressive, well-funded moves to convert their newly-acquired firms into major market contenders.\r\nTwo principles of competitive rivalry are particularly important: (1) a potent competitive strategy used by one company intensifies competitive pressures on the other companies, and (2) the trend in which rivals employ various competitive weapons to try to outmaneuver one another shapes â€Å"the rules of competition” in the industry and determines the requirements for competitive success. Since our hospital is the biggest hospital in the area, it depends in the competition on i ncreasing the branches in all areas inside and outside the city for more than 8 branches directed by the corporate means in the Capital.\r\n3.2.4 talk terms Power of Customers:\r\n3.2.4.1 Markets for Outputs:\r\nSelling goods or services to customers (distributors, customers or other manufacturers) Customers’ influence aquiline upon importance of products to them & their bargaining power We have a marketing team of 4 members running(a) chthonian the supervision of the corporate office , intervention all the outputs issues like : the chronic patients disease health care activates offering free of charge checkup (ex. diabetic patients..)\r\n3.2.4.2 Markets for Inputs:\r\nPurchasing raw materials, components and financial & labor services. The same team also cooperating with the buying department together working to get the best quality materials for the lowest prices in order to minimize the costs. And that will allow the hospital to give more best services more t han the other competitors.\r\n3.2.5 Bargaining Power of Suppliers:\r\nThe power balance betwixt organization and supplier is similar to the relationship between organization and customer The organization becomes the customer and the producer of the inputs it requires are the suppliers Some small groups of suppliers may form cartels or cooperatives to increase their bargaining strength Suppliers use leverage such as threats to raise prices or contract quantity or quality of goods they supply\r\nWe are depending on the process comparability in the market and to services the suppliers will provide to us. In the arctic side, we are a customer for the suppliers and since we are the biggest customer in the privet sector we can manage the deal according to our needs.\r\n3.3 Formulating:\r\nFormulating is phase one in the strategic planning process and according to the diagram at a lower place We can see that it plays a very important in taking the best decisions and actions to grasp t he objective of the organization. In our hospital there are many plans in how to act all these decisions become a real. At the beginning of each new year , we are making our plan projects for the next 12 months And everyone have to achieve his planed objectives as individual under the umbrella of the administration and corporate office objectives. And at the end of the year will have an judicial decision to check how many objectives he reached , according to his work assessment will get his increment , so that will let him work harder during the year to achieve the organization objectives.\r\nFigure 3\r\nRef(CBS course , consequence 1 , page #12).\r\n3.3.1 Organization sources and competitors :\r\nOur hospital sources is strong enough to be a strong competitor in the market depending on: Best medical examination companies as materials providers. Best marketing plans based on the corporate marketing plans. Patients (as a customers ): Accepting all the insurance cards at the time that some other hospitals don’t accepting all patients.\r\n3.3.2 Organization value chain construction\r\n cheer chain is a template that identifies the activities of a company from raw materials to customer, the value added by each bodily process and the cost of each activity, and that facilitates implementation of business-level strategy . Ref ( CBS Strategic vigilance Topic 3 pageboy#6)\r\nThe axiom is true that you never get a second chance to make a good first impression, and hospitals have many opportunities to do so. Or not. At several junctures along the trek of accessing services, the patient confronts a series of opportunities to continue in the system or not, based on the success of the interaction. These touchpoints are not created equal, and it is important to know which has the greatest impact. Here, we can focus the Service Line Growth strategy. As a tool to understand the impact of each touchpoint, value-chain service analysis maps the process to help us de cide where to focus strategic intent. Hospital business planning adapts a model developed by Michael Porter, who defines the value chain as a means to analyze an organization’s strategically pertinent activities to understand how to influence performance and cost.\r\nHe breaks the activities of the firm into primary and support activities. Primary activitiesâ€which, for most firms involves incoming and outbound logistics, operations, sales and marketingâ€are support by an infrastructure of underlying support activities, including HR, IT, and purchasing. How the product or service is ultimately developed and delivered to the customer depends on the effective interaction of these variable activities. The hospital value chain is diverse and complex. Our service offerings are far from clear cut, varying sharply between service lines. Each specialty and disease mob has a distinct value chain to be flowcharted and analyzed prior to understanding where we can impact choice by creating value. In most cases this is at the atomic number 101 referral point where patients make initial decisions.\r\nThis may be a primary care physician or a specialty care physician who is directly involved in managing the hospital encounter. In most cases, it is the loyalty of the physicians and their attitude towards the hospital that determines the focalization of the process. This analysis is a good tool for get stakeholders on the same page. It helps focus planning efforts and gets to the discover issue of where to go and what to do. This leads us to the questionâ€what business are we in, and where do we strategically want to focus our efforts, which is the essence of strategy.\r\nFigure 4\r\n4.1 Strengths (Internal Factors)\r\nThe hospital happen upon strengths are the following:\r\nLong Standing constitution †was the previous monopoly Company in the industry Government Affiliated †trusted in the Market\r\n well-nigh skilled employees in the industr y †generated good client relations\r\n4.2 Weaknesses (Internal Factors)\r\nThe main functional areas of weakness are the following:\r\nProduction Costs †in comparison to competitors\r\nProfit Margins †in comparison to competitors\r\nService pitching †shortsighted operational functions\r\nLoss of Contracts †lack of recurring Contract retention\r\nCompany Culture †disconnected, divided, exalted organisation structure HR Policies & Procedures †poor employee retention, lack of career development, low morale insufficiency of MIS †no common management information systems in place across functions. Brand Identity/ run into †lack of Marketing department\r\nConclusion:\r\nThe main objective is the consideration of the external and internal analyzing factors, using all the analyzing tools and studies like: PORTER, SWOT and all other analyzing international methods.\r\nThis report explained clearly the essential call for methods for analyz ing using the practical example of my organization (Privet Hospital), how to make the competitive advantages and how to use all the efforts to get the best analyzing results. After the analyzing how can we use our strength points to be the first choice in the market and how to proper the weakness points to avoid any problem in the future.\r\nIn the light of the above there are essential factors which might be affecting in any organization , so we have to cover all the points that I mentioned about it before like :\r\nAnalyzing factors effectiveness on our organization as one of the biggest group in the healthcare services in the region. Organization sources and competitors.\r\nOrganization values chain construction.\r\nSWOT analysis evaluation.\r\n6. References\r\nhttp://www.wisegeek.com/what-is-the-role-of-environmental-analysis-in-strategic-management.htm , 2014 (http://en.wikipedia.org/wiki/PEST_analysis) , 2014\r\nCBS course , idea 2 , page # 5 , 2014\r\nhttp://en.wikipedia.or g/wiki/PEST_analysis , 2014\r\nhttp://www.oshad.ae/en/sectors/healthsector/Pages/ehsmsrequirements.aspx, 2014 http://www.dineshbakshi.com/igcse-business-studies/external-environment/revision-notes/63-external-environment-factors, 2014 http://en.wikipedia.org/wiki/Porter_five_forces_analysis ,7 March 2014) http://en.wikipedia.org/wiki/Porter_five_forces_analysis#Threat_of_new_entrants, 2014 http://www.strategy-formulation.24xls.com/en114\r\nCBS course , issue 2 , page #17 , 2014\r\nCBS course , topic 2 , page #20 , 2014\r\nCBS course , topic 1 , page #12 , 2014\r\nCBS Strategic Management Topic 3 Page#6 , 2014\r\nhttp://healthcarestrategicadvantage.blogspot.ae/2007/11/value-chain-analysis.html , 2014 Strategic Management Unit 306 (CBS) , 2014\r\n'