Conducting an Environmental Analysis

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Determine two (2) specific forces in the external environment that will have the most impact on your organization. Provide a rationale for your decision. The external environment is the actions or performance of others that exist outside of the health care organization, Mercy Medical. The external environment consists of such issues as the legislative/political system, economic system, social /demographic structure, technological system and competitors which can influence the direction of the organization (Ginter, Duncan, Swayne, 2013). Meanwhile, the two (2) specific forces in the external environmental that will have the most impact on my organization are competitive and technological changes. Competition motivates an individual to operate a business efficiently. Competition occurs when two or more businesses vie for the same resources or consumers. Competitive activities influence the ability of the business to earn reasonable profits, because competitors will continuously look for opportunities to gain an advantage over their rivals by convincing their customers that their goods, products or services is either better or less expensive than those of competitors. Competition benefits the entire nation because it forces all competitive businesses to make their products better or reasonably priced. Obviously, a company that produces poor quality, expensive products is bound to be forced out of business (Griffin & Ebert, 1999). Organizations should research their competition within the framework of strategic planning (Berkowitz, 2011). Firms must assess not only the existing competition but also potential competition. New entrants into a market are usually a risk to existing organizations because they increase the pot... ... middle of paper ... ...formation, inspire professionals, and hold people accountable in an unbiased manner. On the other hand, as a perception, leadership is inadequately characterized. In particular, there is the risk that respondents use leadership as a quick fix when they cannot specify more accurate issues. Therefore, better implementation through better leadership is not a very actionable suggestion. The issue of leadership certainly raises a host of secondary questions: Who should the leader be? What traits are important for performance leadership? Where does leadership in performance come from, and how can it be sustained? What should leaders do in which circumstances? It is not adequate to state that better performance management relies on better leadership. It is also very important to make it obvious what leadership is and what leaders are required to do (Dooren, 2011).
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