Business Analysis of UK Healthcare

This assignment explores the business strategies and operational environment of health services in the United Kingdom. It delves into the impact of internal and external factors, including competition, economic conditions, social trends, political regulations, and legal frameworks. The analysis utilizes SWOT and PESTLE models to identify strengths, weaknesses, opportunities, threats, political, economic, social, technological, legal, and environmental factors influencing the UK healthcare sector.

Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
P1. Different types of organization and its Purpose ..............................................................1
...............................................................................................................................................4
P2 Scope and Size of organization.........................................................................................5
LO2..................................................................................................................................................7
P3 Relationship between different organization structure and their functions.......................7
LO3................................................................................................................................................10
P4 positive and negative impact on micro environment in UK market and using pestle
analysis-................................................................................................................................10
LO4................................................................................................................................................11
P5 internal and external factor that specific organisations in order to identify strengths and
weaknesses...........................................................................................................................11
P6 Weakness or strength of external macro factors.............................................................12
CONCLUSION..............................................................................................................................13

INTRODUCTION
Business environment is very essential part of an organization to impact on internal and
external factors. These factors are key elements to affect their business functions such as
management process, employee, operations, customer etc. There are various natural resources
that would be helpful for business growth and development such as raw material and legal. These
factors are very important for any business environment.
Internal factor is very important for organization that would be controlled by company to
manage the whole business process and activities in effectively and efficientl. External factor are
those factors which cannot be controlled by company. This report will determine the scope and
size of firm. This report will identify the business requirements and understanding the
functionalities of business in UK. SWOT and Pestle analysis is important role to identify their
negative and positive impact on small business.
LO1
P1. Different types of organization and its Purpose
There are many types of organization such as private, Non-governmental and public
sectors and these are as follows:
Public organization- Public organizations are those firm that would be helpful for people to
provide an effective services and facilities. This organization is basically to promoting their
services in global marketplace. For example – national health care is public sector that would be
very helpful for giving many options and services. They are giving and free of cost medical
services. NHS is public organization in which the main purpose of organization to improve the
productivity and quality of services. The first priority of National Health care service should
maintain the clinical discipline in the business environment. They provide the health care
services to people in very reasonable rate. In this way, it can be identify that public sector is
100% owned by citizen.
Private organization- private organization are those firm that would be establishing their
business process in United kingdom and other countries like House of Fraser is a leading brand
in UK and they are expanding their business as well as other countries. They provide many
services to customer. They are mainly focused to increase their productivity and profitability in
marketplace.
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Non-governmental organization- NGO is that organization when it provides the services to
people. They focused on people welfare to increasing their business for development of human
being. Like- EURAD is important organization they provide the services people for drug
addicted person. They give free medicine, therapy for people. It is the best charity for human
welfare.
Differences Non-Governmental
Sector
Public Private
Basic Aim The main objective of
this organization is to
provide effective
services for human
welfare and society.
They are mainly
focused on public
benefits and have
many facilities for
development and
growth.
The aim is to increase
their business in all
over the world.
They are mainly
focused on to establish
their business in
United Kingdom.
There are various
types of public sector
situated in UK. For
example- NHS is the
organization that has
improved the services
and facilities towards
the human being and
health care services.
The main objective of
private sector to
increase their
profitability and
productivity in market.
They are mainly
focused on profit
because they have to
establish their business
and earn a lot of
money.
This sector will
distribute their profit
to shareholders and
reserve some portion
of profit.
Owner This sector is basically
running by people and
local authority to
increase their business
for purpose of people
This sector is
established their
business in all over the
world. This sector will
increase their brand
This sector will
enhance their business
for growth and
development.
They are mainly
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welfare and society.
They provide various
operations for
development and it
will earn a profit that
would be contributed
to social community.
They are use different
platforms to increases
their profitability for
the growth of human
being.
There are various type
of organization such as
EURAD and DCA that
would be established
in UK.
value in market. It has
been funded by the
government of United
Kingdom (Kew and
Stredwick, 2017).
There are many
organizations in UK to
establish their business
and increase
probability. NHS is
public organization
that can handle all the
issues and problem is
handle by government.
focused on to increase
their brand value and
productivity in
marketplace.
This sector is
developed by group of
partner, joint venture
to maximize their
profitability in market.
For example-
Sainsburry is a leading
company to increase
their profitability in
market. The objective
of firm to enhance
their business in UK
and earning a lot of
money.
Meaning This sector is not
registered by the
government. They are
not investing a large
amount. This sector
will establish a fund
and charity. The funds
are used for the
purpose of proving
various services within
the society such as
health care, social care
etc.
This sector will share
their profit in market.
It will exchange their
stock in market place
for development.
The sector will
distribute their share in
market for shareholder
to enhancing their
productivity in market
for growth and
development. National
health care services is
This sector is not
suitable for public
because they are
listing a share in
market. They will
increase their selling
price in market for
business.
The private sector is
develops their business
operations for growth
in which they increase
their shares value in
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important part of
organization to
provides the better
facilities and services
to their people. They
charge very less.
market. This sector is
increasing their
productivity and
profitability in market
place.
Vision DCA and EURAD is a
non-governmental
organization to
provide the best
services to human
being and society.
They are earning a lot
of profit for human,
society, social
community welfare. It
would provide the
facilities to enjoy their
life in efficiently.
The public sector will
provide the services
regarding their health
of person in United
Kingdom. The main
vision of this firm to
providing the safety
for human being. The
main objective of
national health care
services to provide the
better quality of
services to their
patients.
This sector will
increase their profit
rate in market. The
main goal of this firm
to achieving their
targets and objectives.
This organization is
only focus on
profitability and
productivity. It will
enhance their business
in United Kingdom.
This sector will earn a
lot of money but it
cannot be useful for
social community and
society.
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P2 Scope and Size of organization
Size and scope-
NHS is a leading organization UK and they have expanding their business in all over the world.
This organization is launch in 1948, it is based on the health care that should provide the
services for people. They provide the services in UK is free of cost and most of the people are
taking services this organization, there are 64.6 million people in UK to take services by this
organization. There are various services included such as routine check up, emergency treatment
etc. the main responsibilities of this health care to provide the services in proper manner.
There are 1.5 million people doing work while it is the biggest organization in UK to hire
an efficient people that has capabilities to manage the operations in effectively.
Vision and mission-
The main objective of this organization to provide an effective health services to their patient and
it is very helpful for peoples. They are mainly focused to increasing their business for
development. They are provides the best services such medicine, treatment of diseases.
Legal structure: The legal structure of organization to operates are large amount worker that
would be protest against the privatisation. It always delivered many parts of services through the
best doctor. They are taking a legal decision on important purpose like health care services so on.
There are various type of organization and that has difference between Micro, small, medium
and large organization as given below:
Basis Micro small Medium Large
Basis of
workforce
The micro
business is
operated by one
person that would
be control the
whole
management
system. In this
form has only one
or two employees
are working.
The small firm
should be handle
their business
operation and
functionality
through
employee. They
have only 20-60
employee
working together.
They are main
This company is
establish business
in united kingdom
and many
organizations are
participated a
main role for
increasing the
country economy.
This organization
has only 100-130
This organization
is already
established their
branches in other
countries. It is a
multi national
firm that has more
than 300
employees have
working.
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Only one person
should be handle
the business
operation and
their
functionality.
part of
organization to
increasing their
business for
growth and
development in
United kingdom.
employee is
working at
particular place.
They have
specific working
hour to completed
their task.
They have a
common goal to
achieve their
objective and
targets.
Basis of Turnover This organization
has small
turnover and it
would be
investing a less
amount of money.
The turnover is
$1 million in
every year.
The small scale
company creates
$2 million to $25
million turn over
in every year.
The medium scale
firm is created
$25 million to
$250 million in
every year.
The large
organization is
established their
business in
around all over
the world. Th
turns over is $350
million in every
year.
Basis of
operations
This organization
has small
business. It will
generate a less
revenue and the
capital, platform
and their business
operation is also
very small.
This firm will
generate a small
revenue. This
company will be
control by the
owned people or
corporation
(Luthans and
Doh, 2018). This
organization has
established a
small business in
all overt the
world.
This organization
has moderated
business
operation is
creating. There
are very less
employee
working. They
are investing a
more fund for
growth and
development.
It will create a
higher revenue
Large
organization has
established
business in
different country
as well as united
kingdom. They
have investing a
large amount of
money for
business. This is
very large
company in
which that has
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generated in
every year.
many projects. It
will increase the
cost and revenue
in year.
Basis of
Sustainability and
growth
The micro firm
has very low
development and
growth. The
sustainability is
not also for long
term.
The small firm
has very small
business in which
it has increasing
their level and
some times, it has
high level.
The sustainability
of firm is
depended upon
their profit and
that would be
helpful by
government.
The medium
organization has
average growth
level but as
compare to small
firms. It will
increase their
profit level on the
basis of
productivity.
The sustainability
of medium firm
has depended
upon the level of
profitability.
The growth rate is
very large of big
organization.
They have high
profit and
increasing their
growth rate in
business process.
The sustainability
is long term and
lifetime.
LO2
P3 Relationship between different organization structure and their functions
The scope and size on the basis of organization structure and functions: There are various
type of organization is differentiated on basis of its structure and function is described in given
below:
Functional Structure- Function structure are those set up that has to be collection of
group on the basis of particular purpose (Caiazza, Shimizuand Yoshikawa, 2017). This
functional structure is work in proper manner to increasing their business activity through those
people who has capabilities to increase business for growth and development. The main
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drawback of functional structure to poor coordination and communication between departments.
All the departments should have work in separately.
Divisional Structure- this structure is spreading in all over the world to widely used in
geographical. They have separate small firm to covered different type of market areas and
product (Hillary, 2017). The most important benefits of divisional structure to more specifically
and more rapidly (Goleman, 2017). Some times, it is very costly due to its scope and size of
organization. Most of the people can be use divisional structural on small organization and
having a different offices in other city. The sales team is control the business operation and it
will identify the requirement of customer.
Matrix structure- this structure is hybrid of divisional and functional because it is
applicable for the multinational companies (Moutinho and Vargas-Sanchez, 2018). They have
created a power of struggle because in most of the places they use dual management system in
which the divisional manager and functional manager are working at same level and it will cover
the same social control territory.
NHS is a type of matrix structure that has many functionalities in global market. They
offering various services to customer while the manager providing wide scope of services that
are helpful through matrix structure. They are performing various activities in this structure.
Different organization has own unique structure that would be classified on the basis of the level
and business operations.
Interrelation between goals and targets and functions and mission of organization-
NHS is a fast growing organization that has some specific goals and targets that would be
achieve to performing specific function are given below:
Marketing – Marketing is very important part of organization to promoting their product
in market. (Cascio, 2018). They are promoting their health care services through online
marketing because this is very easy method to Advertising the health care services in market.
NHS is also use for marketing and provide the best services related their health. Most of the
organizations are used these techniques to established their business in around all over the world.
They use new techniques to provide the best services for their patient. It easily identifies the
health issues for particular problem through technology.
Human resource management- HRM is very essential part of organization to managing
quality of business operation in effectively and efficiently. This is performing various function
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such as recruitment of people, providing training and development. Provide security. Secure the
employee information etc (Pearson, 2017). this is the main part of company to handle the human
diseases. Time to time, they are conducting a new training program for employee's growth and
development.
Finance- Every organization is needed a fund such as large, micro, small, medium
organization. Funding is very essential part for organization to investing of some money for
business process (Cong and Zheng, 2017). They are not taking so much money for customer
because they provide services and facilities in free of cost.
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Illustration 1: function of organization
(Source:function of organization, 2017)

LO3
P4 positive and negative impact on micro environment in UK market and using pestle analysis-
The health care services is enhanced the business activity in UK and it is very helpful for
people to provide an effective health care services. It is important part to generating a more
revenue in marketplace. There are important factors affecting the business in UK. The Pestle
analysis is basically used for business purpose that has some negative and positive impact on
NHS as described given below:
Political factor- Political factor are those factor which follows some rules and
regulations, government policies in the health industry. This would be impact to health care
services business operations in UK. They also effect the revenue in the market. NHS is leading
company to expand their business in all over the world. NHS is a leading company to handle its
operations and functionality related health and diseases.
Economical factor- this factor is affecting the business operations to reducing the
functionality to control the time and cost of the company. Unsuitability is a part of economic
factor to effect the firm such as NHS that would impacted to their revenue generation. Positive
economic conditions helps to provide the better health care services this organization whereas
low economic conditions have negative impact on the core competencies of the business.
Social factor- Social factor is affect the basic functionality of company and its important
operations. The management reshuffling and structural functioning that has great impact on their
functions and work. They have many risks for employee regarding their job and faces many
problems. This factor affects the overall business operations and activities.
Technical factor- the technology factor is affecting the business operations NHS is a
multi national company to implemented the new technology platform to identify the diseases and
problems related health. It will help measure the requirement of operational capabilities.
Legal factor- Most of the organization has use different laws and legal obligation in UK.
Through this law, it will create a specific legal rule to build an effective connection between
customer and stake holder. They will create an effective relationship so that the customer should
be trust on stake holder. This changes are required to creating an effective ideas and innovation.
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LO4
P5 internal and external factor that specific organisations in order to identify strengths and
weaknesses
Strength Weakness
For advancement of technology to improve
the economic conditions that would be
directly impact on the business operations.
The health care firm has been increasing
their business in all over the world. In past
five year, it will increase the revenue and
growth in market. NHS is a leading
company to improve the health care
services. (Spillan and King, 2017). This
will improve the performance of business
operations and activities. In United
kingdom, there are various organization to
enhance their business in all over the world
for people welfare. Time to time. It
provides an effective medicine, drugs etc.
The NHS has directly impact on economy of UK.
The price of NHS is higher than other competitor
because they would offer same drugs, medicine in
a reasonable rate.
In 2017, NHS has posted 8.2 percentage reduction
in yearly profit ratio. This due to various factors
such as increase competition, unavailability
resources, increased cost etc. on the other hand,
the company is expected more difficulties in
future due to uncertainty with the economy caused
by Brexit.
Opportunities Threats
The NHS is enhancing their market value
in globally. It is very good opportunities for
organization to improve their services in
market place. The organization should be
adopting a new idea for identifying the best
medicine for health and body.
This is advantages for health care business
to earning a lot of profit in market for
human welfare.
The NHS should not use a new techniques and
innovation for growth and development.
The competition level is very high in retail
business because other competitor company
should giving many option related new product
and time to time, Launch a new medicine in
market at same price.
In this way, the level is very high in marketplace
so that it is very tough competition and becoming
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a threat in business activities.
Porter's Five Forces Model-
Bargaining power of Buyer- this is very important model that cause behind generation of
revenue in the national health care service. The main objective of buyer to provide an affective
quality of product and services in very reasonable rate. The buyer should manager the power of
bargaining in very systematic manner.
Bargaining Power of Supplier- the n\health care business is totally depended on supplier
because they are giving an effective service (Saleem, 2017). This supplier will help to increasing
their productivity in market in which the supplier will help to provide the right direction to gain a
profitability.
Threats of new Entrants- the globalisation has increased and many sectors has been established
in market so that the competition level is increasing that has influences NHS.
Threats of substitution- this will affect the health care business structure that are not to be
identifying the deep knowledge. It is required to planning a new idea for growth and
development. This is the initial stage to impacted on innovation and services and commodity. it
provide the medical facilities through this organization. They are follows some rules and
regulations by government.
Competitive Rivalry- the competition level is very high in health sector because the rivalry is
increasing that would cause of price of services and product. It also affects the profitability and
revenue of the company.
On the basis of discussion, it concluded that the business operation is affect in UK for
growth and development in which the economic condition is major problem to reducing their
level in market.
P6 Weakness or strength of external macro factors
The external factor is very important to affecting the weakness and strength of National
health care services business in United Kingdom (Surin, Edward, Hussin and Wahab, 2017). The
development and growth is directly related to each other in which the social and political factor
is a major role to determine the actual weakness and strength of NHS.
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The NHS should be plan a new strategy for development while they will identify the
business process in different area. They can be handle the competition level in marketplace. They
are created an effective relationship between customer and supplier to maintain the level of
organization. Some times, the environmental facultative is main cause of firm to gaining a more
profit in market. It provides an effective planning to identifying the medicine and diseases by
technology.
Political factor- political factors are those factor which impact to corporate social responsibility
that would be affecting the business environment such as laws, labour and taxes etc. they change
is require because government passes many laws for people welfare.
Economical factor- this factor is affect the business activities such as inflation rate employment
scheme. In this way, it increases the growth and development that would be beneficial for
business environment.
Social factor- this factors affect the NHS, culture and market trends, domestic functions. This
will help to increase the market value and improve the product quality.
Legal factor- Legal factor are those factor that would be control their laws. This laws is
generated by government for human welfare and communities.
CONCLUSION
As per discussion, it concluded that the business strategy and planning is required for
every organization to impacted on its functional and operational environment. This report will
determine different organization structure and scope and size of business that would handle the
business activities and operations in proper manner. This report will identify the external and
internal factor are applicable for growth and development. It will analyse the weakness and
strength of retail business through the SWOT and Pestle analysis. This will analysis the impact
on macro environment in UK.
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Online:
Function of organization, 2017 [Online]. Available through:<http://ispatguru.com/organizing-a-
management-function/>
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