Organizational Strategy and Leadership in Healthcare Industry

Running head: Organizational strategy and leadership
Organizational strategy and leadership

Organizational strategy and leadership
Table of Contents
Introduction.................................................................................................................................................3
External environment..................................................................................................................................3
Pestle analysis..........................................................................................................................................4
Porter five forces analysis............................................................................................................................5
Organizational culture.................................................................................................................................7
Business strategies in healthcare industry....................................................................................................8
Formal organizational structure and its impact on the communication and decision making......................9
Appropriate theories of healthcare industry...............................................................................................10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12
Appendices................................................................................................................................................15
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Organizational strategy and leadership
Introduction
The main aim of this task is to evaluate and analyze the external environment of the
health care industry which plays an empirical role in the modern society. Health care industry is
an important part of the people life. The main aim of this industry is to provide good quality care
to the patients across the world. The vision of the industry is to be one of the leading primary
healthcare providers in the world. In this way, the industry wants to maximize its profitability
and outcomes in the international market. On the other hand, the report explains that how the
industry faces various challenges and issues which are existed in the macro environment. Pestle
analysis and porter five forces analysis are done by the industry to avert these issues and
challenges. It explains that how the firms uses leadership and motivation theories to promote and
encourage the workers for attaining the better results and outcomes. Along with this, formal
organizational structure of the healthcare industry has been explained in the paper. More detail of
the task has been discussed below.
The health care industry is an aggregation of sectors within the economic system which
provides goods and services to treat the patients with preventive, curative, palliative and
rehabilitation care. The healthcare industry is one of the biggest and fast growing industries in
the world. The industry is divided into many parts and it depends on the interdisciplinary teams
and professional persons (Langabeer and Helton, 2015). It is an industry that holds a wide range
of professionals from dentists, social worker, nurses, surgeons, physicians and therapists.
Generally, there are many players in the healthcare industry which play a significant role in the
marketplace (Ginter, 2018).
External environment
Macro environment influence the success and growth of the healthcare industry adversely
as well as positively. The healthcare is an industry that comes in three categories such as
medical, human and dental practice activities and some other health activities. The healthcare
sector cannot control on the external factors (Ginter, 2018). The external environment is also
known as macro environment which could affect the profitability of the industry. The external
environment includes various factors such as political, social, economic, technology and
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Organizational strategy and leadership
environmental factors (Alkhafaji and Nelson, 2013). All these factors influence the planning of
health care industry. Pestle analysis is done to evaluate and identify the threats and opportunities
of the market and competitors as well. Along with this, SWOT analysis and pestle analysis are
also done by the firm to evaluate and measure the strengths and weaknesses of the market and
rivalries. Further, these models provide competitive benefits in a large extent.
Pestle analysis
Pestle analysis for healthcare industry has been detailed below.
Political: It is one of significant factors existed in the environment which may influence the
growth and progress of the industry. The policies governing the medical industry are being
changes on regular basis. Along with this, some other factors such as insurance, mandates,
consumer protection and tax legislation changes can also influence the sustainability of
healthcare industry. Changes in drugs importing policies and strategies also influence the
medical industry. In addition, strikes done by the health experts due to salary irregularities are
primary political issues influencing the medical industry. The industry needs to indentify
political factors to make a good image in the minds of the patients. Before initiating the business
activities, the industry needs look after the political condition of the country (Boris, 2010).
Economic: These factors play a significant role in medical industry. It shall be noted that every
business contribute in the healthcare industry. Rising in interest rate and inflation have direct
impacted on the healthcare industry as also many investment fail to live to their expectations.
The loss of jobs and absenteeism are also increasing in the healthcare industry due to salary and
wages inconsistencies have directly affected the economic growth of the country (Hans, Van
Houdenhoven and Hulshof, 2012). It is noted that the industry needs to improve and enhance the
medical services to maximize revenue and returns. The industry needs to focus and identify the
economic factors to gain competitive advantages in the market. No company can survive its
business activities without analyzing and measuring the economic system of the country
(Folland, Goodman, and Stano, 2016).
Social: Socio-cultural factors are important to study and analyze the healthcare external
environment. A well researched analysis monitors on the various barriers and issues such as
gender, preferences, aging population, and reduction in fertility. Some other issues such as public
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