Business Environment: Stakeholder Analysis of Auburn Hospital

This report provides an executive summary and in-depth analysis of the business environment, using the healthcare sector in Australia, specifically Auburn Hospital, as a case study. It identifies functional areas such as Human Resource Management, Production Management, Office Management, Operations, Marketing, Accounting, and Finance. The report classifies stakeholders into internal, interface, and external categories, detailing their roles and influence. It examines the nature and degree of stakeholder interests, including potential conflicts, and presents a stakeholder matrix to illustrate their impact and significance. The analysis considers the influence of main stakeholders and their impact on the hospital's operations. The report also analyzes how stakeholders, including insurance agents, pharmaceutical companies, physicians, and the government, interact and influence the healthcare sector. This analysis is crucial for understanding the complexities of business operations and stakeholder relationships within a dynamic environment. The report concludes with a discussion of the key findings and implications for the business environment.

Business Environment
1

Executive Summary
The report has shed light on the emergence of business environment, which can be analysed
with the help of healthcare sector, situated in Australia. Auburn Hospital, located in New
South Wales in Australia offers 24 hours emergency service. Due to the advanced features
offered in medical care, the number of stakeholders and shareholders in this organization are
increasing day by day. The stakeholder framework combines the various influential parts
along with the stakeholder matrix to present the integrity and authenticity of the compiled
report. The report has come up with the projection that is based on the nature and degree of
main stakeholder’s interest and implication of conflicting interests, which highlights the
importance of the business environment.
2

Index
Introduction................................................................................................................................4
Main Body..................................................................................................................................4
Identification of functional areas...........................................................................................4
Identification of internal and external stakeholders and their roles.......................................6
Nature and degree of main stakeholder’s interest and implication of conflicting interests...7
Influence of main stakeholder’s level....................................................................................8
Stakeholder matrix.................................................................................................................9
Discussion based on main points.........................................................................................11
Conclusion................................................................................................................................12
References................................................................................................................................13
3

Introduction
Stakeholders are important for any industry as the success of the organization depends on the
performance of the stakeholders. The study draw attention towards the importance of
stakeholders in the Auburn Hospital of Australia and the various functions of the stakeholders
are explained thereafter (Robinson et al., 2015). Mostly, internal and external stakeholders
influence the organizational performance and they hold many interests within the particular
organization. Additionally, many conflicts arise among the stakeholders due to alliances of
several healthcare units. Moreover, stakeholder’s level and its influence on the organization
are also discussed in this study. Finally, with the help of stakeholder matrix, the significances
and impact intensity is outlined in the later part of the study.
4

Main Body
Identification of functional areas
The core functional areas of Auburn Hospital in Australia can be analysis with the help of
following criteria such as;
Human Resource Management: the interpretation of human resource management or
personal management or manpower management refers to the connection of maintaining the
decorum of a healthcare sector in order to gain customer’s satisfaction (Cleven et al., 2016).
It helps to co-operate the proper management that takes place between the workers and the
managers. The advertisement of this management can be done with the help of recruitment,
placements, induction, training and welfare schemes of the employees.
Production management: this part of management belongs to the part of planning,
organization, looks forward to directions and coordination and enables to mitigate the
production function that takes place in the Auburn Hospital in Australia (Ginter et al., 2018).
Production management comprises of the functions that can be channelized with the help of
planning and enhancement of the product based on the product’s location and the structure of
maintenance. This management can be generated with the help of systems and machines,
purchasing power of the management and storage for minerals and its beneficial use (Ginter
et al., 2018).
Office management: This type of management enables to portray the significance, which is
defines the core functions of a healthcare organizations in order to maintain the decorum of
the organization (Groves et al., 2016). The maintenance of the office management in Auburn
Hospital can be taken with the help of feasible methods and equipment to create a sustainable
nature in the global market. This can be generated with the accumulation of housing, layout
and interpretation of effective communication. All these factors help to main the office
reporting with an analysis of office administration (Groves et al., 2016).
Operations: This relates to the factor of input that is obtained from the production of the
healthcare organization and they transform the inputs to output that refers to the production of
goods and services (Cervai & Polo, 2015). Operation plays a vital role behind the
establishment of any business such as healthcare sector. Henceforth, healthcare sector makes
5

operations manager, who plays the duty to check the day-to-day operational records that takes
place in the healthcare sector.
Marketing: Marketing seeks for active participation and concentration in order to observe the
customer’s basic requirements. Marketing helps to operate the products and services that are
in demand in Auburn Hospital (Banwo et al., 2015). Marketing of a healthcare sector is
interlinked with pricing strategy that helps to expand the market share of the organization
with the help of implemented advanced technologies. Marketing can be advertised via social
media, which help the organization to obtain rapid success in the global market.
Accounting: This part of the functional area is very significant, which helps to contribute a
beneficial part in the establishing Auburn Hospital in Australia. Accounting can be composed
and divided into two sub functional areas such as; financial accountants and Managerial
accountants (Oyewunmi et al., 2015). Financial accountants are given the duty that forms the
financial statements and enhances the organization’s strength. Another managerial
accountant, they help the healthcare sector to obtain the better quality of decision making
during the crucial time.
Finance: This part belongs to the functional area that comes up with the projection of
planning that involves the Auburn Hospital’s budget. Through the involvement of the
finance, it is performed with the help of finance manger that wisely know to use the long term
cost that belongs to the borrowing of the funds (Reypens et al., 2016).
Identification of internal and external stakeholders and their roles
Stakeholders of Auburn Hospital can be classified broadly into three categories. They are-
Internal Stakeholders, Interface Stakeholders and External Stakeholders. Although, in this
section, the focus is mainly on Internal and External Stakeholders, a glimpse of Interface
Stakeholders is also provided. Internal stakeholders include management and non-
management professionals of Auburn Hospital who usually operate from within the periphery
of the healthcare organization. Adequate inducements are provided by the managements of
internal stakeholders in order to gain their continued support (Jackson et al., 2016). Interface
stakeholders consist of medical staffs, board of trustees, taxpayers, stockholders, etc. of
Auburn Hospital who are mainly responsible to carry out their responsibilities both internally
and externally. Therefore, internal stakeholders need the help of interface stakeholders to
carry out their assigned responsibilities in an efficient manner. External stakeholders in case
of Auburn Hospital can be grouped into three categories. These include providing specific
6

inputs to the institute; some are the competitors of the organization and some are of special
interest in the functioning of the organization (Robinson et al., 2015).
Patients, suppliers, additional payers and financial investors fall under this category of
providing specific inputs. This relationship between the external stakeholders and institute is
a symbiotic one as for the survival of the company both are mutually depended on each other.
In other words, Auburn Hospital depends on the inputs of these stakeholders, whereas, the
stakeholders depends on the company’s outputs. Therefore, mutual interdependence is highly
present in this group. The second category includes the competitors who may compete to
snatch important patients or skilled workers (Robinson et al., 2015). It is estimated that the
competition among healthcare centres in Australia has increased over the past few years. This
is to attract competency into their individual organization. The final group consists of specific
interest stakeholders who are concerned with the influence of operational strategies of
hospitals to their field of interests. These include governments, private regulatory agencies,
labour unions, media, professional associations, other political communities and many others.
They are solely depended about their values and the impact of healthcare performance on
their highly valued interests. Therefore, collaborations are less and conflicts occur more in
this group of stakeholders (Robinson et al., 2015).
Stakeholders have played important parts throughout the evolution and advancements in
Auburn Hospital in Australia. Due to numerous competitions both in providing high-tech
medical treatments as well as availability of sophisticated medical drugs at an affordable
price, the significance of stakeholders’ involvement have grown over the years. Additionally,
in order to deal with competitors, stakeholders are given utmost important by the healthcare
organizations (Lopes et al., 2016).
Nature and degree of main stakeholder’s interest and implication of conflicting interests
Stakeholders of the Auburn Hospital have different interests but are related to all services
provided by the institution. Insurance agents sell health coverage schemes either to the
patients directly or via healthcare employees or ministry intermediates. Pharmaceutical forms
are especially interested in invention of new drugs and therefore try every possible way to
attract doctors towards their brand so that they can maximize their profit (Tooheret al., 2017).
They get remuneration through governmental drug-benefit plans or insurance. Moreover, all
stakeholders have specific duties and interests. Physicians are competent to provide
appropriate drugs to the patients while the patients are capable to discuss their sufferings with
7

the doctor. In this it is seen they are mutually dependent to each other. Additionally,
government generates different schemes and plans to provide medical aid to the elderly
people free of cost, mostly in rural and peri-urban areas where they cannot afford costly
medication.
There exists a complex relationship among the stakeholders of Auburn Hospital in Australia.
Insurance companies and pharmaceutical organizations are leading stakeholders in the
healthcare sector and are listed at the top position in the stock exchange (Windsor et al.,
2017). The fundamental and most important responsibility of these stakeholders is to
maximize the revenue stream of the healthcare organization. The chief role of the employers
of the organization is to generate huge profits with respect to money making, however, their
relationship with insurance officers to provide them health benefit scheme is a source of
benefit for the organization and not profit. Moreover, physicians have direct responsibilities
like that of a legal guardian towards their patients. The doctors are being paid heavily but the
doctor-patient relationship defines a bond of sacred trust that is above any monetary appraisal
(Rogers et al., 2016). Government plays a significant role in the healthcare system as they
monitor the sector by analysing several factors like the market acceptance of the company,
the services provided by them, the qualifications of doctors and many others.
Conflicts mainly arise among stakeholders or between a stakeholder and the healthcare
institution, when the company signs a profitable alliance with other companies. The
stakeholders fear that their share in the company may decrease as the new company will also
bring their shareholders and stakeholders (Garrety et al., 2016). Patients are mainly excited
about this collaboration as they feel that advanced medication will be provided by the joint
venture. Additionally, insurance companies also observe an increased share price due to the
partnership. The stakeholders who are mostly affected by this alliance are the healthcare
staffs as they face job insecurities due to alliance with a leading healthcare organization.
Furthermore, there are chances of losing jobs due to the acquisitions as the new HRM
practices want to retain skilled and talented professionals and terminate the inefficient ones.
Influence of main stakeholder’s level
The interpretation of stakeholders put an adverse impact on the Auburn Hospital, which is
situated in Australia. The formation of healthcare sector is a business framework, which is
composed with the help of four major stakeholders as for example, regulations from
8

government and legislations, the role of suppliers and competitors (Lopes et al., 2016). The
collaboration of all these stakeholders helps Auburn Hospital to invite the scope of
enhancement in the health servicing strategies. The implementation of stakeholders of
Auburn Hospital helps to improve the certainty with a transformation of high level
performances. The impact of stakeholders helps to improve the healthcare sectors in order to
gain profitable results that can be obtained from the loyal customer’s satisfaction (Lopes et
al., 2016).
Through the help of collaboration of stakeholders, Auburn Hospital has been able to
incorporate high quality of goods and services that helps the sector to invite more number of
loyal customers and this factor helps the healthcare sector to throw a tough competition to
other healthcare sectors present in the global market. Since there is an ascending order of
mixture that occurs between the stakeholders, helps the healthcare sector to generate the
further competition and move with ahead with an ease (Lopes et al., 2016). The increasing
level of the healthcare sector has come up with an introduction of new strategies that creates a
different arena for Auburn Hospital in Australia. Involvement of the group of stakeholders
has put emphasis on the core elements of the healthcare sector that keeps up the expectations
higher than usual on the part of the major operations (Hytti et al., 2015).
Every healthcare sector has the collaboration of stakeholders that can be differentiated into
the category of primary and secondary. The implementation of the primary stakeholders
refers to the area that counts for the employees, suppliers, customers and agencies that
belongs to the public sector in the form of formal relationships (Alameddine et al., 2016). The
accumulation of secondary stakeholders helps the healthcare sector to put an impact through
the help of artist’s performances. Through the interpretation by stakeholders has helped the
healthcare sector to improve its service hat can be reflected by processes based on the
strategic advancement. The impact of the stakeholders helps the healthcare sector to
incorporate the feasibility of actual relationship that can be demonstrated with the help of
primary and secondary stakeholders (Hytti et al., 2015).
9

Stakeholder matrix
The stakeholder matrix analysis is done based on Auburn Hospital in Australia. The internal
and external stakeholders are analyzed here and the impact and intensity they have on the
organization.
Stakeholders Responsibilitie
s
Impact on project
work
Project
strategy
that
respond to
negative
impact
Interes
t
Powe
r
Investors Investing huge
capital
 Positive
image
 Socio-
culturally
responsible
 Invest
enormous
money
without
thinking about
success or
failures
Want this to
make
successful
project by
promoting
and
sponsoring
M H
Patients Access to
quality medical
treatment
(Krassnitze&
Willis, 2016).
 Receives high
quality
medical aid
 Immediate
response to
patients in
rural localities
 Easy
availability of
doctors
- H H
10

Physicians Providing
efficient
treatments to
patients and
happy to work
in a positive
cultural
environment
(Collyer, Willis
& Lewis, 2017)
 Work in cities
and not in
rural areas
 They are
busier in
terms of
attending
critical
patients due to
their complex
timings
Governmen
t must
appoint
doctors who
will serve
rural areas
only
M H
Nurses Assist the
doctors and
receive advice
from them to
enhance the
medical support
to the patient
 Attend all
patients with
utmost care
 Effectively
delivers
medicines to
individual
critical
patients
 Reduced
mistakes
They must
inform
other
employees
about the
project
work
H H
Clerical
employees
Improved living
standards
(Cooke &
Bartram, 2015).
 Receives good
remuneration
 Receives free
healthcare
treatment
They must
inform
other
residents
about the
importance
of efficient
medical
care and
treatment
H H
Government Assist the  Without high Governmen H H
11

organization to
provide
effective
medical
treatment to
rural areas
government
expenditures,
they are
providing
valuable
treatments to
rural residents
t must be
involved in
several
medical
projects so
as to
provide
quality
medication
to poor
people
Transportatio
n department
of the
organization
Efficient
transport system
operated by the
organization
between rural
and urban areas
 The number
of vehicles are
decreasing
- L L
Table 1: Stakeholder matrix of healthcare centre in Australia
(Source- created by the learner)
Discussion based on main points
The above stated discussion has presented the significance from which it can be analysed that
the dissimilarities in stakeholders, differences in their interest and influences in Auburn
Hospital of Australia. The above mention lines have illustrated the concept of dissimilarities
that takes place in the groups of stakeholders (Ginter et al., 2018). It has a combination of
internal stakeholders, interface stakeholders and external stakeholders. Internal stakeholders
belong to the part of management and non- management professionals, whereas interface
stakeholders comprises of the medical staffs, board of trustees, tax payers and many more.
On the contrary, external stakeholders hold the efficacy on three different categories. The
discussion has been demonstrated on the stakeholder’s interest that accumulates with the
various influences. Primary stakeholders pay attention to employees, suppliers, customers
12

and agencies and secondary stakeholders contribute to the enhancement of the healthcare
sector (Cleven et al., 2016).
In comparison to this, the stakeholders of food industry plays significant role in upgrading the
business performance of a food organization. The shareholders and investors are the chief
stakeholders and it is witnessed that the organizations maintain a regular touch with them.
This can be annual meetings, social transmission of information via financial departments or
sustainability policy discussions. Most of the food organizations have set a target to secure
the funding done by shareholders. The companies are committed to create value for
shareholders. Another important stakeholder of the food industry is customers and
consumers. The food firms try to maintain a satisfactory relationship with their customers by
advertising, generating sustainable products as demanded by customers and paying attention
to their complaints about the company or the services. The companies align customers’ trust
with their innovative products. This can be observed through their strategic management to
invest more in understanding customers’ needs. Moreover, employees also play a significant
role among stakeholders as good remuneration; proper training and suitable working
environment can help the food organization to retain their valuable staffs. These companies
provide job opportunities to candidates who have proper knowledge of agriculture, food
quality management, agro-chemical proficiency and many others related to food industry.
Suppliers such as providers of raw materials, packaging materials, etc. play significant role in
developing a quality product. Many non-governmental organizations invest in food industry
to serve poor people of the locality. Therefore, commenting in a justified style it can be
visualized that stakeholders are important for any industry and mostly, they perform the same
function in every business to enhance the company’s profit.
Conclusion
From the above stated discussion, it can be concluded that the report has developed the
business environment based on the scenario of Auburn Hospital, which is situated in
Australia. The report has dealt with the significance of the functional areas that are present in
the healthcare sector or any other business. The above stated lines have demonstrated the
internal and external stakeholders, their nature and degree that combine the main
stakeholder’s interest in Auburn Hospital. It is an interpretation of influences that can be
obtained with the help of main stakeholder’s level in the healthcare sector.
13

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