Factors Affecting Demand and Supply in the Diagnostic Services Industry

Economics

Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................2
Introduction to the company........................................................................................................2
Industry Background...................................................................................................................3
Market structure of the industry..................................................................................................3
Factors that have impact over demand of an organisational service...........................................5
Factors that have impact over supply of an organisational service.............................................6
Demand elasticity of the organisational service..........................................................................7
Impact of the event on industry...................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

EXECUTIVE SUMMARY
Economics is the important aspect regarding the determination of the factors that have
impact over business. In health and social care, must for the management to use this concept
towards determination of the factors that have influence over demand and supply along with
ascertaining the demand elasticity associated with products and services. In the current report,
Sonic healthcare is diagnostic organisation that provides the services related to laboratory,
pathology and radiology. Though the use of economics concept determined that numerous
factors are support of creating demand of their services such as high use of technology and
timely service. Still, some factors are present that have negative over demand and supply such as
competition and behaviour of staff. The current issue of Covid-19 brings the boom in diagnostic
service when opportunity is provided to them regarding locals testing.
INTRODUCTION
Healthcare organisations has the special role towards the nation and society. They always
under the obligation to provide best products/services according to the market needs. It is the
duty upon management to analyse the demand and supply aspects so properly able to meet out
the societal requirements. This has huge importance towards the improvement in production
activities along with bringing change in technologies for improving existing services. This also
provides the opportunity regarding introduction of new and advanced medical equipment’s that
are more competent in nature of providing better care services. In overall performance of such
activities, best for the management to apply the concepts of economics (Bartenev, 2019). The
main aim of this report is also about ascertaining the demand and supply of organisational
service along with the factors that have influence over same. The organisation considered to
analyse the concept is Sonic Healthcare. It is an Australian organisation that provides the
diversified services like laboratory, pathology and radiology services. The operations of an
organisation prevail under the health-medical diagnostic industry.
The aspects cover in report includes introduction of an organisation, industry/sector
background, market structure of the industry/sector, factors that influence demand for the
company’s product, factors that influence supply of the company’s product, demand elasticity of
the organisational product and impacts of an event on the industry.
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