Evaluating Healthcare Environment for Business Expansion

The assignment evaluates the current state of the healthcare environment in the UK, focusing on the significant role it plays in the country's economic growth and development. It assesses the challenges posed by teenagers and young adults' addiction to drugs and substance misuse, which affects the economy. The analysis suggests expanding business in London as a great opportunity for Frank, taking into account various macro environmental factors.

Health Care Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
HEALTHCARE ENVIRONMENT.................................................................................................1
PEST ANALYSIS...........................................................................................................................3
RECOMMENDATIONS.................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The term health care be defined as a procedure to maintain health issues by taking help of
preventions, diagnosis, treatment and some other physical or mental impairments. Only health
care professionals can provide services related to health problems. They provide primary,
secondary and tertiary care to general public. In the present scenario, United Kingdom is
suffering from various problems due to its drugs addicted teenagers and young adults. To stop
the drugs addiction, Department of Healthy and Home offices has established an advisory agency
namely FRANK which offers appropriate information and advice to people about drugs and
substance misuse. This firm wants to open its new centre in London so that it can provide better
health care services to more people. In this report, it has determined that what kind of services
and solutions would be provided by this enterprise in London to remove the misuse of drugs.
HEALTHCARE ENVIRONMENT
In the present time, healthcare in one of the leading industries which help in providing
healthcare services and products to general public. Teenagers of current era is highly addicted to
drugs and other substances which affects their health. It have become major responsibility of
very country to maintain a safe and healthy environment so that their people will live a happy
and long life. Increment in health issues directly impact on national condition. For example if
population of one country is suffering from health related problems then it cannot be a developed
country because national development if totally dependent upon its population (What is
healthcare environment, and how does it matter?, 2017). So, it have become major responsibility
of all nations to develop a safe and healthy environment within their country. Countries use
health care services on the basis of their own social and economic conditions. In simple words,
all nations have their different policies regarding health care. Many organisations establish
healthcare systems to fulfil health related needs of general public (Baum, 2016). It is considered
as the most essential part of country's economy. Healthcare industry can exist only if it has group
of highly skilled professionals. United Kingdom is one of the developed nation which have
effective heath care system. But in now days, this country is facing various problems because its
current healthcare environment is in poor conditions (Chartier, 2014). Healthcare is one of the
fast developing sectors which help in creating various employment opportunities for nurses and
doctors.
1

Teenagers and young adults of UK is highly addicted to drugs and other intoxicated
things. According to official data, more than 15 million people are taking illegal drugs in UK and
this counting is continuously increasing over time, which is influencing negative impact on this
country and its growth. As per conducted market research 27% of population is suffering from
health issues because of high dose of drugs. Between 2008 and 2002 Teenagers and young adults
have taken drugs in high quantity. Drug addiction is considered as most dangerous and harmful
disease which affects functions and structure of individual's mind. It affects that body area which
helps in communicating brain. High addiction of drugs can result in death (Cimiotti and et. al.,
2012). Person who takes drugs on daily basis, reduce his learning power, lose control on learning
ability, decision making and also cannot make proper judgements. It can also affect mental and
physical health of people.
Figure 1: British drugs survey 2014: drug use is rising in the UK – but we're not addicted
(Source: British drugs survey 2014: drug use is rising in the UK – but we're not addicted, 2017)
Frank is an advisory service offering firm which is established by Department of health
and home. The main objective of this company is to give information and advice people about
drugs and substance use. This enterprise was launched in 2003 with the aim of removing drug
usage within country. This firm have a future plan to open a drop in centre where it can provide
face to face guidance and advice to drugs addicted people. It wants to launch a new branch in
London which is a most popular city of United Kingdom. This place have big population of
2

teenagers and young adults which are drugs addicted. Frank provides important information and
advice through Email, text, telephone helpline and a live chat service. The main objective of this
company is to help and make them mentally/physically fit.
Figure 2: British drugs survey 2014: drug use is rising in the UK – but we're not addicted
(Source: British drugs survey 2014: drug use is rising in the UK – but we're not addicted, 2017)
Moreover, Frank wants to provide health care services in London which is new market
for it. But before starting new branch it should evaluate all environment factors which can affect
its business activities and practices. If it will provide information and advice regarding drugs to
people then it will considered as its social steps towards society which will help it in enhancing
its market position. It is highly important for all organisations to do environmental audit
otherwise they cannot survive in market place for long time period. As, it helps company in
identifying different elements of outside environment and also helps organization in
implementing effective strategies. By analysing environmental factors firm can determine that
which kind of actions should it takes in future (Duckett and Willcox, 2015).
By following this procedure, they can exist in worst to worst market situations and also
can resolve any type of business problem. Basically, it helps organization in determining that its
organizational operations are working according to compliance or not. Also, it gives deep
knowledge about federal regulations, state regulations, permits and local codes. Mainly there are
four factors which should be considered by every business enterprise which are political,
3

economic, social and technological components. All these elements comes under macro
environmental forces which cannot be controlled by any enterprise. They totally different from
micro environmental forces because internal factors can be controlled by company but they
cannot. External factors can affect FRANK from outside. So, it is highly important for this firm
to evaluate all the macro environmental forces before staring opening a new centre in London.
PEST ANALYSIS
While conducting environmental audit enterprise can identify all those factors which can
affects its business activities and practices. Different factors of outside environment can be
determine by PEST analysis. It consists of fur elements which are political, economic, social and
technological. Basically, it is a framework which helps different organization in environmental
scanning. PEST analysis a strategic management concept, which helps in analysing external
forces. In simple words, it is sort of market research which gives detailed information about
market conditions, policies, rules and regulations. Also, it work as strategic tool which helps in
identifying market growth/decline, current position of company and also it provides direction in
which organizational operations should be operated (Kuo, 2011). For better growth and
development in London, FRANK needs to evaluate macro environmental factors which are
follows as under:
Political: It involves those forces which are controlled by government. In simple words,
it totally depends upon legal authorities and their actions. It includes tax policy, labour law,
environmental legislations, legal stability, trade restrictions and tariffs. It makes various
restrictions for business firms so that they will produce quality products and services. Different
countries have different political rules and regulations. Also, it guides firms that which kind of
product/service they should produce. In modern world, UK government is also influencing
impacts on health care and educations industry. Legal authorities are more worried about health
care sector because now day’s population of UK is highly damaged by health related issues. As
Frank wants to open a new centre in London in which it can provide proper guidance to drugs
addicted people. It is highly important for it to evaluate political factors before establishing any
new branch. There is no stability in Political factors of UK, which can influence negative impact
on Frank (Luxford, Safran and Delbanco, 2011). In simple words, there is no political stability in
London which creates problem for this agency because without legal stability even it cannot
make any strategies and policies. The main function of this agency is to tell disadvantages of
4

drugs to its addicted people. But without legal support it cannot deliver its services in the most
effective manner.
Economic: This macro environmental factor involves interest rates, economic growth,
exchange rates and inflation rate of country. Every business enterprise should produce their
products and services to consider all these elements, because they influence huge impact on
business activities, practices and global expansion. Also, it affects decision making power of
mangers. If there is high interest rate in country then it will definitely affect organisation's
operational cost, on which business growth and expansion depends. For establishing new branch
in London, Frank needs to consider economic factors. It have evaluated that London have good
economic condition. So, Frank should establish a new branch in this city because it have many
drugs addicts and also have population with good purchasing behaviour. By expanding in this
city, it can provide its advisory services to many people which can help it in enhancing high
financial profit.
Social: It is those factors which gives core attention to cultural aspects, health issues, and
growth rate of population, age distribution, career attitudes and safety of general public. It focus
on demands of an organization's product/service and also determines that how enterprise runs its
different operations. For example, if a country have ageing population then its organizations
cannot have willing staff members because old people do not operate business activities with
high enthusiasm. AS, Frank wants to establish a new branch in London where it can cover big
population which is addicted to drugs. This agency operates social activities, which helps it in
building its positive corporate image (McHugh and et. al., 2011). By providing face to face
advices and information it can help various people in dealing with their health related issues. So,
social groups of London will definitely support Frank in its business expansion.
Technological: In modern world, all organisation are using technical factors to increase
efficiency and effectiveness of their business. Basically, this environmental factor includes
research and development activities, technology incentives, automation and rate of technology
modification. All these elements influence a huge impact on production level and outsourcing
decisions of company. Moreover, changes in technology can affect innovation and its cost. As,
Frank provides information and advice via Email, text, telephone helpline and live chat room
which all are dependent upon technical forces. Without technology it cannot operate its business
activities and practices. But Frank wants to start a new branch in London in which it can provide
5

face to face information to drugs addicts. For providing such services does not need to take help
of technical forces. But for better growth and development it should provide offline as well as
online services because with the help of technical forces it can make better connection with
drugs addicted people. So, it can be said that technology factors will influence positive impact on
Frank if it will establish new branch in London (Mitchell and et. al., 2012).
Henceforth, these were the main factors of macro environmental factors which can
influence impact on Frank while establishing its new branch in London. After conducting
environmental audit it can make clear strategies, plans and procedures which can help it in
dealing with macro factors. This enterprise cannot survive in London for long time period if it
does not come up with all above mentioned forces.
RECOMMENDATIONS
After determining PEST analysis it has been evaluated that Frank should expand its
business in London because there it can achieve various future growth opportunities. As, that city
is highly developed and also it have that population which have good purchasing behaviour. For
having better growth and development in London, this agency can take help of market
development strategy in which it can increase its financial profit by delivering its existing
products and services but in new market. By entering into new marketplace it can attract a huge
number of drugs addicts and also can satisfy their different needs. With the help of this market
expansion strategy Frank can help drugs addicted people in effective manner and also can
enhance its profitability. This enterprise can get various advantages by implementing such
expansion strategy, biggest advantage is that it can access to new customers.
By providing information and advice about drugs and substance misuse it can provide
lifeline to many drugs addicted. By cooperating in healthcare sector it can build strong image
within London even in whole United Kingdom. UK government will also support this enterprise
by providing it financial assistance because it will help in enhancing social welfare. Economic
condition of London is very strong so by establishing new branch in that city it will lead to high
growth and development. This company wants to provide face to face information and advice
which could be a time consuming process (Shortliffe and Cimino, 2013). So, for better
development it should provide offline as well as online services because in now a days, market
competition has reached to peak point.
6

Moreover, this step of Frank will provide it high social support because it will work for
social welfare and for the development of society. By providing solutions to drugs addicts it can
improve the way of their life. As, most of the population of London is drugs addicted so it
would be great opportunity for it to expand its business in that city. By establishing drugs
rehabilitation place it can help people in dealing with drugs addiction also it will provide UK
healthy and fit citizens which are the main source of national growth and development. Frank
should discuss about disadvantages of cannabis, cocaine, ecstasy, LSD and heroin on the
human's mind.
Hence, it has recommended that Frank should definitely open a new centre in London
because it will help drugs addicts in removing their drugs addiction and also it will help this
centre in increasing its market share and financial profit (Swayne, Duncan and Ginter, 2012). As,
young adults and teenagers of London are high drugs addicted so it should provide information
and advice in that manner in which it can effectively guide people so that they will not misuse
drugs and live a happy and healthy life. It will also help Frank in performing social corporate
responsibilities. By providing face to face information and advice it can build strong relationship
with drugs addicts and then easily can solve their problems. But there is one main
recommendation that it should operate its business activities and practices according to the as per
the healthcare environmental changes.
CONCLUSION
By evaluating this project report, it has been concluded that health care environment
plays a significant role in the economic growth and development of country. In the modern
world, health care industry is growing very well, but current health-care environment of United
Kingdom is not in good condition because of its teenagers and young adults. They are highly
addicted to drugs and substance misuse. Due to this, UK economy is facing various problems
and difficulties. However, after evaluating all macro environmental factors, it has been assessed
that expanding business in London will be a great opportunity for Frank.
7

REFERENCES
Books and Journals
Baum, F., 2016. The new public health (No. Ed. 4). Oxford University Press.
Chartier, Y. ed., 2014. Safe management of wastes from health-care activities. World Health
Organization.
Cimiotti, J.P. and et. al., 2012. Nurse staffing, burnout, and health care–associated infection.
American journal of infection control. 40(6). pp.486-490.
Duckett, S. and Willcox, S., 2015. The Australian health care system (No. Ed. 5). Oxford
University Press.
Kuo, A.M.H., 2011. Opportunities and challenges of cloud computing to improve health care
services. Journal of medical Internet research. 13(3).
Luxford, K., Safran, D.G. and Delbanco, T., 2011. Promoting patient-centered care: a qualitative
study of facilitators and barriers in healthcare organizations with a reputation for
improving the patient experience. International Journal for Quality in Health Care.
23(5). pp.510-515.
McHugh, M.D. and et. al., 2011. Nurses’ widespread job dissatisfaction, burnout, and frustration
with health benefits signal problems for patient care. Health Affairs. 30(2). pp.202-210.
Mitchell, P. and et. al., 2012. Core principles & values of effective team-based health care.
Washington, DC: Institute of Medicine.
Shortliffe, E.H. and Cimino, J.J. Eds., 2013. Biomedical informatics: computer applications in
health care and biomedicine. Springer Science & Business Media.
Swayne, L.E., Duncan, W.J. and Ginter, P.M., 2012. Strategic management of health care
organizations. John Wiley & Sons.
Online
What is healthcare environment, and how does it matter?. 2017. [Online]. Available through:
<http://www.mentorhealth.com/control/health-care-environment>. [Accessed on 13th
October 2017].
British drugs survey 2014: drug use is rising in the UK – but we're not addicted. 2017. [Online].
Available through: <https://www.theguardian.com/society/2014/oct/05/-sp-drug-use-is-
rising-in-the-uk-but-were-not-addicted>. [Accessed on 13th October 2017].
8

9