PESTEL analysis of NHS Assignment
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Added on 2021-04-05
PESTEL analysis of NHS Assignment
Added on 2021-04-05
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Report brief You are required to prepare a strategic analysis related to the development of a new business opportunity in your area of expertise/field. You are required to use theories and frameworks presented during the module to inform your ideas and structure your thinking. This will form the basis for your individual written assignment. Please note: markers will be focusing on how you have applied models, frameworks and theory from the module rather than judging the quality of the final business opportunity. Each student will submit a 3,500-word report in which they will: describe the business opportunity and how it is consistent with their organisation’s vision and values describe and justify, using relevant models, frameworks and theories, the process used to reach your conclusion reflect on the process that you went through in completing the assignment and the learning achieved Executive summary (10 marks) (200 words) You should provide a concise executive summary at the front of your assignment report presenting a high-level summary of your findings. Increasing demand for pre-labelled medicinal products has opened up business opportunity for supplying such products to wards and clinics. Additional labels on medicine packages give specific instructions for use and warning statements in accordance with local clinical prescriptions. Prescribing commonly used medicines to individual patients deemed to be repetitive, laborious, costly, and time-consuming. There is a need for a steady and continuous supply of readily labelled medicines both in and out of pharmacy opening hours.This study examined the macro-environment analysis and the strategic position on this new business opportunity on labelling medicines in bulk at Imperial NHS Trust. PESTEL analysis suggested that there are political, social, and economic needs for this business opportunity. Business forecasting recognised demographic factors such as the aging population and obesity are likely to increase medical demands for at least 20 years.Business competitiveness was evaluated by Porter’s five forces principle. The threat of rivals and the rest of threats, i.e. new entrants, substitutes, suppliers, and customers, are low to medium suggesting sustainable profits can be generated with this business plan.Resources and capabilities analysis identified that low cost and swift product despatch are the sustainable strategic advantages of this business proposal.To conclude, the external and internal factors support this business opportunity.
Part 1 (15 marks) Opportunity description (600 words) You should summarise your new business opportunity. This should identify the linkages between your idea and your organisation’s vision and values as well their existing strategy. National Healthcare Service’s (NHS) core value is providing quality care for patients (The NHS Constitution, 2021). Lord Carter (2016) published a report on hospital efficiency leading to Hospital Pharmacy Transformation Plan (HPTP). “HPTP plans include a review of these services and have a plan in place for improving productivity and efficiency, including consideration of alternative supply routes, such as homecare providers or community pharmacies.”. This business plan aims to supply medicines to patients safely, effectively and economically by dispensing commonly used medicines in bulk. The commitment on the quality of care and patients’ hospital experience is the drive of this project and is in-line with NHS’s visions.Pre-labelled medicines, that manufactured under a good quality management system, play a critical role in quality patient care. Imperial NHS Trust dispensed nearly 170,000 medicines in 2019. The annual financial turnover on dispensed medicines was about £424,000 at this Trust. There is a business and clinical need for the pre-labelled medicines both in and outside of pharmacy opening hours. Front-line clinical staff benefits from the ready supply of pre-approved medicines, and therefore able to divert their focus on other important tasks for better patient care. A study conducted by Gross (2001) advocated that patients’ waiting time could be reduced from six to seven hours to the same morning at 10 am for 90% of dispensed items. Because of the efficient discharge ofpatients, bed spaces were saved, and this result in extra capacity on patient admission. Abderrahmane M. (2019) also concluded such an approach led to better drug availability and patient satisfaction.Apart from the HPTP recommendation, patient safety also plays a crucial role. All medical errors, including prescribing errors that pharmacy can clinically screened, cost the NHS £98.5m per year, which consumed 181,626 bed-days, caused 712 deaths, and contributed to 1,708 deaths. (Cousins, 2019). Whittlesea (2011) suggested labelling errors contributed 27%, with another 16% combined drug and labelling errors in 1005 dispensing incidents. A similar finding in a US journal (Berman, 2004)showed 33% of medication error was contributed by packaging and labelling confusion. Most dispensing errors result in no harm or low to moderate harm, but some could cause severe harm or death to patients.As labelling error is one of the most common dispensing errors, Medicines and Healthcare Products Regulatory Agency (MHRA) established the maximum limit on overlabelling medicine of 100 packs per month in an unlicensed pharmacy unit. An MHRA license is required for over-labelling activity exceeding that volume. The license, that ensures consistent product quality is met with a high volume of repackaging/ over-labelling activity, safeguards public health with controlled processes. The adequate facility, equipment, quality management and training, etc are essential to grant a
license for the labelling of medicinal products. Not all hospitals have the capability and resources to support such an over-labelling activity. Imperial Trust has a license for compounding aseptic products that helps approval of the MHRA labelling license. The last reason to support this business opportunity is the potential for income generation. Some hospitals rely on their local clinical staff to dispense medicines or buy-in the pre-labelled drugs from commercial units. Imperial NHS can be one of the suppliers of the labelled products to other hospitals.To summarise, developing an over-labelling unit in Imperial Pharmacy Department can improve patient services, safeguard public health, increase staff capacity and potentially improve financial performance in the pharmacy department at Imperial NHS Trust.Part 2 (60 marks) Critical evaluation (2,200 words) Describe and justify, using relevant models, frameworks and theories, the process used to generate your business opportunity. Critically analyse the frameworks and theories used. Propose further research/work you would want to do to improve your proposal. External and internal factors were categorically assessed on this business proposal. Not one single strategic management tool could offer a full picture of a particular business. A range of strategic toolswith suitable modifications were used to examine these factors in this strategic analysis report in a more integrated manner. Another limitation of some strategic tools was the robustness to future changes. Therefore, forecasting and scenario analysis were conducted for recent and foreseeable events such as pandemic, demographic factors, and Brexit, as part of the external factor analysis.Opportunities and threats of the external macro-environment were evaluated more comprehensivelyin conjunction with PESTEL analysis. Porter’s five forces analysis was conducted to examine the level of rivalry. Similarly, the internal strength and weakness of this business opportunity and VRIO analysisare assessed alongside the resources and capabilities.The above findings were summarised in SWOT analysis to provide a strategic position of this business opportunity.
External factorsThe following key factors: political, economic, social, technological, ecological and legal, are assessed in the PESTEL analysis.OpportunityThreatsNHS provides essential medicinal instructions on the medicine packages that comply with the regulation.Lord Carter’s report (2016) recommends a review on medicine supply in a cost-effective way.PBrexit may affect the medicine supply chain resulting in longer delivery times and higher costs. Studies had shown supply of pre-labelled products saves patients’ waiting time, bed space and reduces the workload of clinical staff.The cost of batch production of labelled medicines is lower. The salary of pharmacists who responsible for dispensing individually is significantly higher than pharmacy operators who pack medicinal products in bulk. The productivity packing in bulk is also higher.The supply of medicines is more agile because the usage of medicines can be forecasted.At least 170,000 packs of pre-labelled medicines were needed in 2019 at Imperial NHS Trust. The annual estimation of outsourcing this activity is in a region of £200K which is too costly.Services can be extended to other trusts as an income generation.EInvestment is required for additional staff, equipment, software, and facility for the over-labelling process. Competition may be raised against other NHS over-labelling suppliers.Better and quicker discharge in hospitals and clinics leading to a positive reputation for NHS. Aging population and obesity drives the demand of labelled medicines.SUndesired public relationship if major errors are made. New labelling technology that complies with regulatory expectations is already available for the over-labelling process.TEAn insignificant increase in energy consumptionfor additional over-labelling facility. LOver-labelling is a regulated activity that governed by MHRA.The PESTEL analysis on this business plan indicates more opportunities than threats. The key strategic drivers are political, economic, and social factors. Preparing medicines used in advance can deliver improved patient care experience with lower cost.
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