Business Environment Analysis: Use of Tracking Device in UK Care Home

This report provides a comprehensive business environment analysis focusing on the use of tracking devices in residential care homes in the United Kingdom. It begins by identifying the role of tracking devices in monitoring patients with conditions like dementia and Alzheimer's, highlighting various wearable devices currently in use. The analysis then delves into the external macro environment using the PESTLE framework, examining political factors such as the impact of Brexit, economic factors including the UK's economic status and inflation rates, and social factors like population growth and changing consumer demands. Furthermore, the report analyzes the external micro environment through Porter's Five Forces, assessing the competitive rivalry, the threat of new entrants, the bargaining power of suppliers and buyers, and the threat of substitute products. The report concludes by summarizing the key findings and their implications for Convert Technologies and the broader healthcare technology sector in the UK.

Running head: BUSINESS ENVIRONMENT ANALYSIS
BUSINESS ENVIRONMENT ANALYSIS
Name of the Student
Name of the University
Author Note

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BUSINESS ENVIRONMENT ANALYSIS
Table of Contents
1. Identification of the use of a tracking device in residential care home......................2
2. External macro environment based analysis of the business.....................................3
PESTLE analysis........................................................................................................4
3. External micro environment based analysis of the business....................................15
Porter’s five forces analysis.....................................................................................15
4. Conclusion................................................................................................................21
References....................................................................................................................23
Appendices...................................................................................................................26
Appendix 1...............................................................................................................26
Appendix 2...............................................................................................................27

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1. Identification of the use of a tracking device in residential care home
As discussed by Amft (2018), tracking and monitoring devices are able to play an
important role in the operations of the residential care homes. The devices can be used for the
purpose of monitoring different activities of patients who suffer from various types of
diseases. Different types of diseases that are able to affect the patients in a negative manner
include, dementia, Alzheimer’s disease. The tracking devices will be able to provide effective
levels of support based on the ways by which the management of residential care homes can
manage the patients. According to Baron et al. (2018), the organizations in the residential
care based industry have started implementing the tracking devices in order to maintain the
patients in an effective manner. The tracking devices can be used in the form of wearable
devices that are helpful in the proper management of patients. The organizations operating in
this industry have started using different types of wearable tracking devices that include,
Project Lifesaver’s Protect and Locate (PAL) wristwatch, Mindme Locate, PocketFinder,
GPS Smart Sole, iTraq, SafeLink, Revolutionary Tracker. The devices have been designed
based on the demands and needs of the patients.
The devices are designed by the organizations with the help of effective partnerships.
The activities of elderly people need to be tracked by the organizations so that they are able
to take care of their needs in an effective way. The development of tracking devices for
elderly people who stay in the residential homes has become a major practice that has been
helpful for operations of the organizations. The business environment that has been
developed based on the residential care homes for elderly people have been affected by the
implementation of new technologies (Bolton et al. 2019). As discussed by Cardinale and
Varley (2017), the residential care based homes have started implementing different
monitoring based technologies in order to improve the operations. GPS based tracking

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systems have been able to provide major levels of support to the organizations in order to
maintain the safety levels of patients. The organizations that are a part of the residential care
homes based industry of the United Kingdom have provided huge levels of importance to the
proper implementation of modern technologies in order to make the work easier.
Tracking based systems have a major impact on the healthcare based sector of the
United Kingdom. Different researches have been able to depict that the tracking based
devices have played a major role in the proper improvement of the operations of different
organizations. GPS or global positioning systems are able to track the patients or elderly
people who are a part of the organizations. The use of modern technologies can thereby be
considered to be important for the ways by which the residential care homes are able to
provide the best levels of services to the patients (Erdmier, Hatcher and Lee 2016).
Use of the tracking device – The tracking device will prove to be useful for the ways
by which a healthcare based organization will be able to keep a track of the customers. The
patients can be monitored in an effective manner with the help of the tracking software that
will be related to the device. The wearable technology based industry of UK will be able to
provide major opportunities to Convert Technologies in order to operate in a profitable
manner.
2. External macro environment based analysis of the business
Use of PESTLE framework – The external macro environment of Convert
Technologies can be analysed with the help of proper implementation of the PESTLE
framework. This framework is based on the different factors that can have an impact on the
profitability levels of Convert Technologies in the industry. The political, economic, social
and technological factors are considered to be the most important in this case.

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According to Hall, Boulton and Stanmore (2018), the market of wearable
technologies is predicted to reach 25.19 Billion Dollars by the year 2020. The industry has
shown immense levels of growth in the last few years due to the increase in usage of
technological products for the purpose of enhancing the day to day based activities. The
wearable technologies market was mainly dominated by European Union, Asia Pacific and
North America. The users in different markets are able to avail benefits that are provided by
effective usage of the wearable technologies. As discussed by Kalinauckas (2015), the users
are able to avail technologically advanced products with the help of different wearable
electronics that are offered by various organizations. The aged care and health based industry
has been considered for analysis in the report. The use of wearable technologies in health care
based industry is quite high and this is able to affect the ways by which the patients and aged
people can be managed.
The analysis that will be made in the report is related to the technological market of
the United Kingdom. The use of wearable technologies in different health care and aged care
based facilities is the most important part of the discussion that will be made in the report.
The different external factors in the United Kingdom that can affect the use of wearable
technologies in various areas of operations (Refer to Appendix 2).
PESTLE analysis
Political factors – According to Kim and Shin (2015), major factors that dominate the
wearable technology based industry include, fitness and health based products or the digital
twin based applications as well. The business organizations in UK are facing major risks
from the political unrest that has taken place in the country. Brexit also has a major impact on
the ways by which organizations in the United Kingdom have been able to maintain their
operations. Different organizations which belong to the industries operating in the UK have
been highly dependent on the political condition of the country. Brexit can be considered to

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be the most important political factor in case of organizations that are already operating or
plan to enter the United Kingdom in the future as well. The trade based deals that are made
by the United Kingdom are affected in a huge manner by the Brexit related factors. The
fitness based activities in the United Kingdom have increased and consumers have started
spending much more on gym memberships. The amounts of gym membership based
spending have increased in the last few years. The growth in fitness sector is based on the
popularity of new gyms (Kim, Nussbaum and Gabbard 2016). According to McCrea and
Farrell (2018), the health and aged care based activities in the country have also started
increasing by 20%. Brexit however has an impact on the prices of different products and raw
materials that are required for the development of different products. Foreign Direct
Investment has been attracted by the United Kingdom and many new organizations have
started entering the country. The fitness industry has been able to show effect growth in the
last few years and wearable technologies are also being used by companies in the health
based sector. Figure 1 depicts the future forecast for the development of wearable technology
industry based on external changes.
Figure 1 – Forecast of wearable industry

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Source - (Kim, Nussbaum and Gabbard 2016)
Economic factors – According to Moon et al. (2017), UK has developed its position
as the fifth biggest economy in the world. The recession that had taken place in the year 2008
had been able to affect economy in an adverse manner. However, necessary steps have been
taken by the government of UK in order to improve the operations of different companies in
the country. Other major challenges have been faced by the organizations in the United
Kingdom after implementation of Brexit. The organizations that are operating in the country
have been affected by the economic downturn that has taken place after the implementation
of Brexit. The various British households have started facing major levels of challenges in the
year 2017 based on implementation of Brexit based regulations and laws. The economic
conditions and operations of healthcare based organizations have been able to the increase the
levels of usage of new wearable technologies. The revolution in usage of various wearable
technologies have increased the speed of operations of the companies that operate in the
healthcare based sector of the United Kingdom. Increase in speed of operations has played a
major role in the ways by which levels of revenues and profitability has increased (Kim,
Nussbaum and Gabbard 2016).
According to Page (2015), the time that is spent by the patients in the hospital has
changed and the organizations have been able to gain a lot from the proper use of
technological products. The market based on wearables has a reached a new height in the
year 2017. The economy of the United Kingdom has a major impact on the ways by which an
organization in the healthcare based industry can use wearable technologies. The use of
different wearable technologies has affected the healthcare industry in a huge manner. The
advancements that have taken place in the healthcare based sector of the UK have a major
impact on the ways by which organizations have used different wearable technologies. The
rate of inflation in the country have grown at a rate of 3.1% in the year 2017. The prices of

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different products and raw materials in the country have started increasing due to the
weakness of pound. The wages in the country have however not increased with respect to the
increase in prices of products. This has an impact on the ways by which the employees in
healthcare based sector have provided their services to the patients or the consumers (Raj and
Ha-Brookshire 2016).
According to Schüll (2016), the use of different wearable technologies by
organizations in healthcare sector of the UK is in the initial stages and economic factors in
the country have an impact on their wide usage. The economic condition of the United
Kingdom has been influenced by the exit from European Union. The wearable technology
industry and their usage in the healthcare and aged care based activities have been influenced
in a huge manner by the economic condition of the UK. Figure 2 depicts the different
organizations that are operating in the industry of wearable technology and their growth
levels.
Figure 2 – Top five vendors

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Source - (Raj and Ha-Brookshire 2016)
Social factors – According to Strain, Wijndaele and Brage (2019), the consumer
market in the United Kingdom is quite huge that has been affected by the increase in
population in the country. The growth in population has an impact on the health care and
labour based market of the country. Opportunities that are provided to the organizations in
aged care and health care industry have also increased in the last few years. Social class has
an impact on the services that are offered to the consumers in the aged care facilities. The
organizations have started developing different services and products in order to attract the
consumers. Demands of the consumers in health care and aged care based organizations have
started changing in the last few years. The purchase of fitness based wearables are mainly
related to the individuals who are concerned about their health. The social influence and
persuasive techniques can be used by the organizations in health care industry in order to
increase the usage of these products. The population of wearable health based products in the
United Kingdom gave started increasing in the last few years. The physical activities of older
people have increased and aged care facilities have started working faster than before
(Tehrani and Jin 2018).
According to Wild et al. (2017), the use of wearable products can support the
management of different aged care organizations to take care of the activities that are being
performed by the consumers or people who are a part of the organization. The increase in
demands for health care facilities have been able to enhance the usage of wearable
technologies and products. Aged care facilities are supported in a huge manner by the usage
of effective technologies. The social condition in the United Kingdom is based on the
increase in levels of aged population in the country. This has been able to further increase the
demands for effective aged care based facilities in the country. Usage of wearable technology
products will be able to improve the levels of services that are thereby offered to the

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consumers (Wissinger 2018). Figure 3 depicts that demands and choice of the customers
related to products in the industry.
Figure 3 – Demands of consumers
Source - (Wissinger 2018)
Technological factors – UK has developed a position of the most technologically
advanced country in the world. London has become a hub for different technological and
financial institutions that are able to help in the development of proper and usable
technologies. The business organizations are continuously developing new technologies that
can help in providing better services to the consumers. The usage of new technologies for
improving the service levels have also started increasing in the last few years (Tehrani and
Jin 2018). Figure 4 represents the technological factors that are able to affect the industry of
wearable technologies.

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Figure 4 – Technological conditions
Source - (Tehrani and Jin 2018)
As argued by Raj and Ha-Brookshire (2016), the technology based sector has been
able to contribute in a huge manner in the economy of UK. The levels of talent and
investments in the industry are important factors that have an impact on the organization. The
aged care based facilities of the country have been affected in a huge manner by the
enhancement of technologies. The health sector has started making major use of the wearable
products in order to keep a track of different activities that are performed by the patients. The
levels of usage of different wearable technologies have increased in the last few years due to
the requirement of proper analysis and keeping record of the health of people. Figure 5
depicts the condition that is prevailing in wearable technology industry from the year 2015.

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BUSINESS ENVIRONMENT ANALYSIS
Figure 5 – Technology market condition
Source – (Raj and Ha-Brookshire 2016)
Legal factors – According to Moon et al. (2017), technology has now become an
important part of different products that are offered by various organizations that belong to
different industries. The digitization of health based products has been able to affect the ways
by which different organizations in the industry are able to operate. The aged care based
facilities have been affected in a positive manner by the implementation of wearable
technologies. The wearable technologies are however able to raise some major legal issues
that are related to the protection of intellectual property, privacy and protection of data as
well. According to Kim and Shin (2015), the issues based on intellectual property are quite
self-evident in nature and can be managed both on a legal and commercial basis. The data
that can be held by the wearable technology based devices are of huge amounts and this may
lead to major levels of concerns based on privacy and theft of identity as well. However, the