External Environment Analysis of Aetna's Strategic Management Goals

This essay provides an analysis of the external factors affecting Aetna, a leading American health insurance company, and their influence on its strategic management. It identifies key external factors, including political, legal, economic, demographics, social, competitive, international, and technological aspects, and employs PESTLE and SWOT analyses to evaluate their impact on Aetna's business operations and goals. The essay highlights Aetna's strengths, weaknesses, opportunities, and threats, concluding that understanding the external business environment is crucial for organizational success. It emphasizes the importance of adapting to changes in the environment to achieve business objectives effectively and efficiently. Desklib provides students access to a wide array of solved assignments and past papers.

External Business
Environments ESSAY

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
An understanding of how to analyse the external factors that affect a company’s goals and
influences its strategic management............................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
External business environment is undertaken as the factors which are outside the business
which may impacts their operations through influencing their practices as well as preferences &
ascertains its opportunities and risks. Additionally, it includes political, legal and economic,
demographics, social, competitive, international and technological industry (Ingold, 2021). This
is importance as it directly and indirectly impacts upon the personnel, incomes and operation.
The aim of this essay is to analyse the external factors that affect a company’s goals and
influences its strategic management. The chosen company for this report is Aetna which is a
leading American diversified health insurance company that facilitates a range of traditional and
consumer directed health care insurance items and associated services.
MAIN BODY
An understanding of how to analyse the external factors that affect a company’s goals and
influences its strategic management.
Aetna which is a leading American diversified health insurance company that facilitates a
range of traditional and consumer directed health care insurance items and associated services
that incorporates dental, pharmaceutical, group life, medical management capabilities medical
and other disability plans. It was founded in year 1853. There are various external factor which
impacts the organisational objectives and influences their strategic management. Some of those
factors are political, legal and economic, demographics, social, competitive, international and
technological. So, for instance PESTLE and SWOT analysis is performed below:
External factors in PESTLE Analysis
PESTLE analysis is much formed from of “PEST” Analysis which is known to be one of
the much vital tools within business analysis ass well ass is depends upon almost whole on
external factors. All these factors are discussed in respect of Aetna.
Political, these factors are those which are driven through government actions as well as
norms. In respect of Aetna, the growing public policy within respective countries may influences
into health care insurance. Economic, this related to the wider economy as well as that tends to
be expressly monetary into nature that involves employment rates, interest rates, inflations,
exchange rate and others. In respect of Aetna, the various aspects have impacts upon their
business operations such as the overhauling of H1B work visa session through their legal
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administrative having effects on their activities. Social, this tends towards much tough to
quantify in comparison to economic one. It consider to move into the way which stakeholders
approach leisure as well as life that in turn may effect business operations. This involves lifestyle
trends, customer beliefs and etc. In respect to Aetna, the various social factor have impacts on
their business goals for it the healthy person is less likely for opting for insurance into new
regulations.
Technological, within current business areas, technology is enhancing and this is
changing in rapid manner. This involves automation, R& D and so on (Oakley, 2019).
Additionally, the digital technologies for fostering innovations into health care insurance such as
Aetna as this enhance their business operations and helpful in attain the goals in effective and
efficient way. Legal, it is undertaken as those factor which emerge from modifications to
regulatory atmosphere, that can impacts the wider economy that certain industries or even person
business into healthcare insurance industry. Additionally, the regulations like affordable care act
and antitrust regulations bringing uncertainty for consolidate deal have impact upon Aetna
business goals efficiently. Environmental, this emerged as sensible along with original PEST
Model as community of business which initiates for recognising which modification to its
physical atmosphere may represent risks and opportunities for firms. It involves climate changes,
carbon footprints and many more. In addition to this, respective factor have direct impact on
business operations so they may concentrates upon environmental sustainability principles which
would helps them in attaining its goals effectively and efficiently.
External factors in SWOT Analysis
SWOT Analysis is also known to be the other popular techniques of business analysis.
Likewise with PESTLE not overall factors are consider into SWOT are external (Valdez, 2020).
Additionally, this focused on strengths, weaknesses, opportunities and threats as well as this have
directly upon Aetna business operations.
Strengths, Reputation & brand name, Aetna is the much well developed entity into their
sector. Moreover, this is the world’s huge insurance firm that serves above ten states along with
their key consumer base of more than 22 million into US and expatriates. Weakness, Workforce
diversity, the local staff contributes towards majority personnel at Aetna developing it tough for
outsiders for adjusting as well as hence outcome in talent loss. Opportunities, Social media,
over the year various active user upon social media channels have enhanced as well as with it
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Aetna may form of their social media handles for promoting their items, interacts with clients
and can also facilitates after sale facilities (Voutilainen, 2019). Threats, Competition, though
insurance was privatized, Aetna have lost their lustre as well as currently confronts passionate
competition from private insurance business which have provided the sector a new lease upon
life.
CONCLUSION
As per the above report, it has been concluded that this is essential for organisation of
known about their external business environment. As it includes political, legal and economic,
demographics, social, competitive, international and technological industry. Additionally, it
directly and indirectly impacts upon the personnel, incomes and operations. For this, PESTLE
ANALYSIS is performed. Apart from this, SWOT analysis is conducted as it is helpful in
understanding the strengths, weaknesses, opportunities and threats as well as this have directly
upon Aetna business operations.
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REFERENCES
Books and Journal
Ingold, T., 2021. The perception of the environment: essays on livelihood, dwelling and skill.
routledge.
Oakley, A., 2019. Essays on women, medicine & health. Edinburgh University Press.
Valdez, S.V., 2020. Essays on The Industrial Organization of Health Care. University of
California, Irvine.
Voutilainen, R., 2019. A bank and an insurance company–competitors or allies? Essay and
comments from bank and insurance executives.
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