Pestle Analysis Of The Healthcare Industry

The assignment is about conducting a pestle analysis of the healthcare industry, which involves examining the political, economic, social, technological, legal, and environmental factors that affect it. The document discusses how organizations in this field have limitations and evolve in a dynamic environment. It also touches on the importance of saving paper by using electronic bills to reduce environmental impact.

Business And The Business
Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Provide information into the background of organisation and describe the purpose of each
of chosen organisations...............................................................................................................3
P2. Discuss about the size and the scope of operations of organisations....................................4
P3. Explain relationship between organisational functions such as HR, Finance,.....................6
Marketing, Production linked to................................................................................................6
objectives....................................................................................................................................6
and structure of organisation for effective working...................................................................6
P4. Identify the positive and negative impacts the macro environment has on organisation.....8
P5.Discuss internal and external analysis of organisation to identify its strengths and
weaknesses................................................................................................................................10
P6 Discuss how strengths and weaknesses interrelate with external macro factors in
organisation...............................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................13
Books & Journals......................................................................................................................13

INTRODUCTION
The organisation success depends on its size and background. It will flourish when all
the desired objectives are carefully analysed and effectively met with organisation goals. This
report deals with two companies one is NHS which is public healthcare institution and other is
Tasco which is private firm dealing in telescopic goods to consumers. Organisations should
carefully analyse its marketing function so that it will be able to accomplish set targets in
timely manner (Aterido, Hallward-Driemeier and Pagés, 2011). This will enhance consumer
satisfaction in effective way so that it can conquer its consumer base and it will help to
enhance its reputation and dignity.
TASK 1
P1 Provide information into the background of organisation and describe the purpose of each
of chosen organisations
The business environment has its own importance in the business world. The public as
well as private organisation follows the business conduct. NHS(National Health Service) is
one of the public organisation which delivers the medical services to patients in the hospital.
NHS was founded in England in 1948. The objectives of forming an organisation was to
deliver quality services to people who come for their treatment (Aula, 2010). The organisation
was legally established as newly independent institution to provide services to their patients in
standard quality.
NHS was formed to offer free services at times and not for making profit for the
organisation. This had offered great services to patients for their treatment at low prices but
with high standards. The services offered by NHS are dental services which called for dental
problems in the patients. Another services are sexual health services regarding HIV(Human
Immunodeficiency Virus) and sexually transmitted virus and diseases and its infections were
treated by the trust. Pathology services is also provided regarding diagnosis of blood test for
diabetic patients, for different diseases like for pus infection and may more pathology
services.
Eye care services is also provided for low eyesight of children and adults. Cataract
operations are also treated in the institution. The purpose of all these services by NHS is just
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to provide quality treatment to those who cannot treat themselves as they do not have high
incomes. It also provides services at low prices. Govt. also provide tax free incentive and also
provide finance for their effective running for treating patients in effectual manner so that
they may live a healthy life with their families.
Tasco company is private firm which offers telescopic product to consumers. Tasco
company was established in the year 1954 to provide quality products to consumers regarding
telescopic products at competitive prices. It was legally established to provide telescope to
amateur astronomers but has expanded its functionality to further distribute other optical
products. Tasco company operates in United States and was founded by George Rosen field to
offer goods to consumers at initial prices.
Tasco firm provides goods of optical products and is major distributor of consumer
telescopes in the market. The services offered by this company are high vision binoculars in
varied ranges and functionality to consumers. Binoculars are available from seven to ten
power (Belás and et.al , 2015). It also has functions related to snapshot which includes ability
to record videos and pictures with still functionality. It also provides software for printing. It
also provides telescopes which are available in various ranges. It also has function of "Go to"
technology are the most economical in this ranger and has sky mapping function also enabled
in it. It has refracting and reflecting telescopes in each category available in various prices
ranges. Also, telescopes can be magnified from 25 to 675 power which is a good quality of
products in effective prices to consumers.
It offers services like gun rifles which ranges from magnification from 1 to 40 power.
It has various products in that such as centre fire rifles, handguns etc. to consumers. It also
product like spotting scopes, they are helpful for hunters, birders to get a spot eye lens on the
animals. It comes in tripod stand for steadiness (Blanchard, Tolbert and Mencken, 2011). The
purpose of this firm is to provide that goods which are helpful to both astronomers and
consumers who need different telescopes for their vision which enhances their satisfaction.
P2. Discuss about the size and the scope of operations of organisations
The size of the company differs from one from another. It is because some firms
established on small scale while other function at large scale depending on their sizes and
national or international reach in the market. NHS company operates on large scale and it has
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an efficient team of staff in the recent analysis. It has employed more 150,000 doctors, more
than 4,00,000 nursing staff, 160,000 scientific and technical staff and 40,000 managers which
shows that it is large scale institution growing fast in its operations and functions. This
clarifies that it is highly effective in its functionality.
The annual turnover is also amazing. In the year 2015-16 it had earned revenue more
than 99,000 pounds. This shows that institution has immense dignity and trust in the patients
as they get high quality medical services from it. the organisation is committed for using
money and funds wisely and fairly to secure best possible outcomes for both taxpayers and
patients (Chavis, Klapper and Love, 2011.). It has increased revenue to almost 0.4 % which is
much higher from 2014-15 year. It has expanded its operations in effective way by concerning
main on quality treatment to patients. It has covered its administrative expenses, capital
expenditure from the revenue generated which shows it fairly committed services to patients
and effective use of money for health of people.
Market share of NHS also shows its efficiency in providing medical services to
patients. Market share of the institution is maximised because of its quality services to
people. Service prioritisation is observed in the institution. This shows that people have trust
and faith on institution as it provides services to help people to live a healthy life. It has
expanded its reach to international level which is commendable.
Tasco company which is major distributor of telescopes also has effective employees
who work for the betterment of the organisation. It has efficient workforce which strive for
achieving business goals and objectives. It has started with just 160 employees and now has
more than 2000 employees working in it. It aims to deliver quality consumers goods at
competitive prices and it deals in various ranges. It has grown effectively in its operations and
functions (Commander and Svejnar, 2011). This shies that consumers are highly satisfied by
the products of this company. It enhances firm's reputation and dignity in positive manner
which multiplies its revenue from the operations.
Annual turnover rate is very impressive as it tends to deliver telescopes with varied
range and with quality in it and at lower prices from its competitors. This makes good
turnover in the market by maximising the customers base. It has earned good revenue as its
financial performance is quite remarkable in this aspect. It has earned millions of revenue and
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has attained 0.3% growth from past performances. This shows it effective functionality with
reference to annual turnover which is done by satisfying customers in the market by providing
high quality goods at competitive prices. As such, it makes it effectual in its operations.
Market share of Tasco company is also increasing day by day in its functioning. These
have increase in past few years. It also shows its better customer prospectus in the market.
Market share means that amount of sakes which company has earned in its financial period. It
shows about company that how its effective in market operations and also shows that about
the earning it had produced in the period in its operations (Fernando , 2011). It has observed
an increase rate in its market share which shows it efficiency in carrying out its working. This
highlights it success in effectual manner.
P3. Explain relationship between organisational functions such as HR, Finance,
Marketing, Production linked to
objectives
and structure of organisation for effective working
Organisation stands strong due to harmonious relationship between each of the
department. Departments consists of HR (Human Resource), finance, marketing, production.
For effective working of organisation by meeting needs and demands of consumers, it is
essential that the coordination between these departments are met in time. This shows that
organisation is flourishing in its functions and operations. NHS institution deals with medical
services and help patient to live healthy life. It provides high quality of services to them. This
is possible;e because of effective coordination between departments.
HR department deals with hiring of efficient staff that can provide patients the
required help. This department correlates with the finance department which issues its budget
with reference to hired staff foe their salaries. This will be informed to production department
so that they can plan their production like medical equipments regards to operation team and
all related equipments which are needed to doctor. This will help organisation to have
synchronisation between them. Marketing team will also do their work by promoting the
hospital services ion front of millions of people (Gecevska and et.al , 2010). So they get
unformed about the type of services the institution is offering to people for their betterment
and to live healthy life.
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Organisation structure will be formed according to the operations, it takes in
consideration of its services. Organisation will follow required correction in formal structure
if it finds that information is lacking in its function. Communication will be unified in unity of
command. This will help institution to accomplish its set targets. This will enhance
organisation's productivity by maximising consumer base and it will lead to attain maximum
customer satisfaction which is the basis for institution.
Tasco company will also follow its coordination among departments so that it can
achieve desired results in timely manner. The coordination between HR, finance, production,
marketing is essential to the firm so that no wastage of resources is observed in the manner
which deteriorates its effectiveness. Organisation is required to maintain high quality of
standards in its products so that it can stand strong in the market by maximising customers.
This will be required so that it can multiply its revenue which will enhance its productivity.
This will provide immense respect, reputation and appreciation from the customers. As such,
it will provide great satisfaction to company so that it will produce more effective results and
will improve more to provide great customer satisfaction.
The financial function will be keeping its manual record of money received or paid out
by organisation. This information will be required to form financial statements for tax
purposes and to comply with the legal requirements. It will also keep track of salaries and
expenses for the company. HR function will recruit efficient employees which are required to
do work for organisation. As such, this department will select those productive employees.
Production department will coordinate with other departments to plan out required production
of telescopes and related products. Marketing department will promote the products to
customers so that speedy sales can be maintained.
Organisation will be structured along with factors of production and human resources.
It will follow the strategy required to accomplish the tasks. The objectives of organisation will
be achieved in that manner which will provides speedy sales and in turn good quantum of
revenue. This will help organisation to flourish in its operations and functions. Customers will
purchase more and their satisfaction will also be achieved in effectual manner which will help
organisation to grow and achieve its goals.
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P4. Identify the positive and negative impacts the macro environment has on organisation
Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.
The external factors is positive as it guides organisation to strengthen its position and
apply range of strategies to achieve goals. Negative impact is that it has to follow
different types of laws which are implemented by government.
What is a PESTLE analysis?
PESTLE Analysis is carefully analsing macro factors such as political, economical,
social, technological, legal and environmental factors which impacts organisation
functioning.
Why do businesses carry out a PESTLE analysis? How organisations can monitor and
forecast external influences
It is carried so that certain strategies must be implemented so that company may be
profitable in the country and is helpful in forecasting requirement and needs of
customers in totality.
What are the advantages and disadvantages of a PESTLE analysis?
Advantages
It helps company to analyse its limitations and as such strategies are formed.
Disadvantages
It does not provide concrete results as business functions in dynamic environment and
changes occur regularly.
Go through the PESTLE(Tesco as well)
POLITICAL(P)- Tesco is impacted by political factors as government regulates
industry.
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ECONOMICAL(E)- It faces economic slow down also which is prevailing in the
country and profits gets reduced
SOCIAL(S)- Moreover, social factors must also be kept in mind.
TECHNOLOGICAL(T)- Modern equipments should used by it.
LEGAL(L)- It has to follow legal rules implemented by government.
ENVIRONMENT(E)- It has to follow environmental laws implemented by government.
This can be understood by PESTLE analysis:
 POLITICAL(P)-
Political impact on NHS will be positive impact on healthcare institution. This will
bring new hopes to institution as it help in financing and funding will be provided in that
manner which will bring growth in the healthcare institution. However, it will give negative
impact on healthcare because of the corrupted officials which are in the power in the central
government (Laumer, Eckhardt and Weitzel, 2010). Therefore, political conditions will not be
favourable as these corrupted ministers will not provide adequate funds to institution so that
they can expand its reach and get the required treatment in lower prices at standard quality
level.
 ECONOMICAL(E)-
Economic conditions in the market will also have impact on environment. If there is a
boom in the economy, organisation will have adequate funds for its functioning. As a result,
no shortages will occur in the process. If there is recession and inflation in the economy, then
people will not have enough money to spend on their health. It will have negative impact
because they will not have income because of inflation.
 SOCIAL(S)-
Social impact will be positive when healthcare institution are providing effective
services to customers. It will have positive impact on society as people will build trust and
loyalty to the organisation. People will have long termed impact on their health. This will
have them to live healthy life. However, if negative impact on society is there, this will give
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not desired results. It can be possible because healthcare is charging high rates from
customers or services are not up to mark.
 TECHNOLOGICAL(T)-
Technology will have positive impact on life of people. Healthcare will be equipped
with modern equipments which will provide ease to patients. This will gain easier way to
diagnose and treat those patients. It will also have clinical portals where patients can book an
appointment with the doctor that will have enhanced patient satisfaction. Else, if proper use of
technology is not availed, patients will not be satisfied.
 LEGAL(L)-
Legal aspect will have positivity if clinical safety directives and medical device
legislations are effectively and legally imbibed in the NHS institution. This will provide
opportunity to sell out the services legally and efficiently. The care commission are requiring
more of the information to license issuers (Shigang, 2010). However, if the legal aspect is not
followed properly, healthcare can lend itself to difficulty as the government will cancel its
functioning in the healthcare sector.
 ENVIRONMENT(E)-
The environment perspective is positive from the point of view that healthcare will use
technological driven tools i.e. it will issue electronic bills to patients. This will help from
environment view, as paper bills will be reduced which will not lead to cutting of trees.
However, if environment is not taken in aspect by healthcare institution then green revolution
will not be entertained. This will destroy the valuable environment.
P5.Discuss internal and external analysis of organisation to identify its strengths and
weaknesses.
Introduce SWOT analysis. Explain each of the elements of the acronym.
IT is the strengths, weaknesses, opportunities and threats of organisation which is important to
analyse so that it may implement strategies to conquer objectives.
Advantages/Disadvantages
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It is helpful to remove weaknesses by re evaluating strategies. However, it consumes lot of
time and also concrete results are not provided by it.
Why do businesses conduct a SWOT analysis and how it can assist in the decision making
process within organisations? How is weakness convert to stretch
It is carried out by company so that it may implement strategies in the manner so that rivals
may be outreached in effectual manner. Hence, company uses SWOT analysis for effective
functioning in the market.
Carry out a SWOT analysis on an organisation
SWOT analysis on NHS below
It can be explained with SWOT analysis:
 STRENGTHS (S)-
Strengths of an organisation can be location, modern equipments, quality assurance
team, effective marketing team. Location can be strength of the healthcare institution.
Customers will walk on easily to get treatment. Modern equipments is also required so that
patients can be treated fast and in timely manner which save the time for healthcare. It will
also be helpful in having fast recovery of patients. Marketing is essential for healthcare as
promoting the institution is important for gaining people acceptance to institution. Quality
assurance team is strength to a healthcare like NHS as it provides services within quality
standards to patients.
 WEAKNESSES (W)-
Weaknesses can be lack of effectiveness of research department, less finance for launching
project, obsolete equipments. Research department is required to be effective because it needs
to be evaluated new medicines for fast recovery of admitted patients. Finance inadequacy is
another shortcoming because to start new branches of healthcare, funds are required.
Equipments should met with modern tools otherwise, it will not produce good results and will
lead to wastage of precious resources.
 OPPORTUNITIES (O)-
Opportunities can be more range of marketing agents, reduction on import taxes.
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More marketing agent present in many numbers is an opportunity for healthcare as it can
reach out to more people. It will help it to pull down more customers through effective mix of
marketing functions in effectual manner. When taxes are reduced, then firm can buy required
raw materials from other countries. As a result, it may have more factors of production of
medical equipment which is required for effective working to transfer quality services to
patients.
 THREATS (T)-
Threats can be several to healthcare. For example, competitors, recession, security problems.
Competitors are available in every sector. It is also available in healthcare to NHS.
Competitors may ruin entire revenues. As a result, their should be strategies to overcome
them. Otherwise, they will lead us and it can be dangerous to institution for its reputation and
no revenues to it (Welford , 2013). Recession is another threat to it. In this period, revenues
are difficult to generate because people have no extra income with them. As a result, they will
not spend on health related and in medical services. This will cut down healthcare revenue too
much extent.
P6 Discuss how strengths and weaknesses interrelate with external macro factors in
organisation
The following external macro factors affect strengths and weaknesses in organisation.
They are as follows:
1. Customer analysis-
Customer needs should be positively analysed. In order to achieve this, customers
should be segmented homogeneously possessing same characteristics. This will help
organisation like NHS to be effective in its work. They will be enhanced in a better way so
that customers needs, requirements, demands can be effectively met by the healthcare. This
will be strength to healthcare organisation. They will effectively accomplish their set targets.
However, if people are not segmented in similar characteristics then, organisation will waste it
valuable resources which cannot do to reduce its effectiveness. It should met consumer needs,
otherwise, they will not be satisfied in totality. Hence, consumers will not give appreciation to
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the healthcare. This will make organisation weaker in its operations. This will reduce
organisation effectiveness and its reputation will be finished or it will get diminished. The
needs of customers must be analysed so that organisation may satisfy them
2. Competitive analysis-
Competitive analysis emphasizes on macro factor which is of utmost important to
firm. Healthcare organisation should be effectively figure out their competitors. By doing this,
it can achieve desired goals without the hindrance of its competitors. Competitors should be
identify completely else organisation will not work according to the desired set targets.
Organisation needs to put strategies that will work in accordance with the objectives of a firm.
By implementing structured strategies, institution can deteriorate its competitors too much
extent that will provide effective results in long run. Consumer satisfaction can be effectively
achieved so that it helps in maximising its revenue to full extent. Healthcare institution like
NHS will flourish in its functioning and operations. In absence of identification of
competitors, organisation will lend itself to low revenue and can also diminish its reputation
in front of the consumers which is a serious problem or weakness.
3. Market analysis-
Market should be analysed completely as it will take into what are the barriers to it in
the market. It will help organisation to have a commendable position in the market. As after
having clear understanding of the market barriers, organisation will be able to have enough
market capitalisation in form of more of customer base and enhanced customer satisfaction.
While failing to identify the market barriers, organisation will not able to produce efficient
results which will become hurdle in its functioning. The competitors must be analysed as they
ruin market share and as such they are the biggest external factors which needs to be analysed
by organisation to outreach them.
4. Environmental analysis-
Environmental factors influences healthcare in its functions. Organisation should
understand the value of ecosystem so that they may effectively attain their work in relation to
the environment factors which are utmost important in healthcare field. Organisation should
be able to carry out its functions in relation to value the importance of environment. In issuing
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bills to patients, electronic bills should be issued to save paper (Pestle Analysis Of The
Healthcare Industry, 2013). This will lead to reduction in cutting of trees in the forest. By
using this technology, paper can be saved and trees can also be saved. Otherwise, in absence
of this, environment and ecosystem will b extinguished too much extent which is serious
threat to environment.
CONCLUSION
Hereby, it can be concluded that organisation has limitations and organisation evolves
and work in dynamic environment. Strengths and weaknesses should be carefully analysed so
that it can strive in the competitive environment. Organisation coordinates with the
relationship between HR, finance, production and marketing team to accomplish set targets.
REFERENCES
Books & Journals
Aterido, R., Hallward-Driemeier, M. and Pagés, C., 2011. Big constraints to small firms’
growth? Business environment and employment growth across firms. Economic Development
and Cultural Change. 59(3). pp .609-647.
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Aula, P., 2010. Social media, reputation risk and ambient publicity management. Strategy &
Leadership. 38(6). pp .43-49.
Belás and et.al , 2015. The business environment of small and medium-sized enterprises in
selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management. (1).
p .95.
Blanchard, T. C., Tolbert, C. and Mencken, C., 2011. The health and wealth of US counties:
how the small business environment impacts alternative measures of development.Cambridge
Journal of Regions, Economy and Society. 5(1). pp .149-162.
Chavis, L. W., Klapper, L. F. and Love, I., 2011. The impact of the business environment on
young firm financing. The world bank economic review. 25(3). pp. 486-507.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics. 93(1). pp .309-337.
Fernando, A. C., 2011. Business environment. Pearson Education India.
Gecevska and et.al , 2010. Product lifecycle management through innovative and competitive
business environment. Journal of Industrial Engineering and Management. 3(2). pp .323-336.
Laumer, S., Eckhardt, A. and Weitzel, T., 2010. Electronic human resources management in
an e-business environment.Journal of Electronic Commerce Research. 11(4). p.240.
Shigang, Y., 2010. Competitive strategy and business environment: The case of small
enterprises in China. Asian Social Science. 6(11). p .64.
Welford, R., 2013. Hijacking environmentalism: Corporate responses to sustainable
development. Routledge.
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