Question

Explain how external and internal environmental factors influence the strategic plan and the organizational culture of a health organization, what are the basic difference between vertical and horizontal external environments as compared to internal institutional resource-dependent, and contingent environments. Which strategies might a health leader operate in these environments be able to leverage to ensure success? How to write a strategic plan and develop a strategic plan for a health IT organization or unit?

Answer 1

External environment factors are:

1.political (degree of intervention)

2.economical (economic growth, interest rates, tax)

3.social (availability of products)

4.technological (impact of new processes on technology)

5.legal (legal regulations of your state or country)

6.environmental (temperature, weather,agriculture, tourism)

Internal environmental factors are:

1.administrators

2. borad of directors

3.employees

4. organizational efficiency

5.human resoures

7.capital resources

Vertical integration of environment:

The organization will produce less than half of its products. Outsourced contracts are utilised more in order to improve the cost effectiveness and budget. This applies both backward and forward integration.

Horizontal integration of the environment:

the organizes functions in multiple locations or has many outlets for increased productivity thereby increasing the number of products or varieties of products it produce.

Strategies for success:

in order to succed in a health care sector, an organization must understand or perform SWOT analysis

S-strength include positive factors present in the internal environment (attributes and assets of the firm)

W-weakness include negative factors present in the internal environment (limited resources, technologies, skills)

O-opportunity include positive factors present in the external environment(time to develp new plans, market growth, type of products to be utilised)

T-threats include negative factors present in the external environment (potential competitors in the industry)

Strategic plan:

1. have a vision statement

2. have a mission statement

3.assess internal environment

4.assess external environment

5. perform SWOT analysis

6.perform gap analysis

7. formulate SMART goals

8.perform assessment of  progress of the plans

9.develop alternative strategy

10. choose the best strategy

11.measure and control the results.