Business Organisation and Environment: MEDICLINIC INTERNATIONAL PLC

This report provides a detailed analysis of MEDICLINIC International PLC, examining its business organization, environment, and financial performance. The report begins with an introduction to business organizations and MEDICLINIC's background, including its founding, key personnel, revenue, and market listing. It delves into the business environment, focusing on market share in Switzerland, Southern Africa, and the United Arab Emirates, and addresses risk management. The report then explores the business environment in Mexico, discussing investment laws, the labor market, and the healthcare system, and identifying opportunities and challenges for MEDICLINIC. An analytical approach, including a PESTLE analysis of Mexico's political, economic, and social environments, is presented. The report concludes with a summary of findings and references.

BUSINESS
ORGANISATION

Table of Contents
INTRODUCTION...........................................................................................................................1
Background of Business Organisation.............................................................................................1
Background to Business Environment.............................................................................................3
Analytical approach....................................................................................................................5
Graphs of financial growth..........................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
It is an individual or group of people who come together to form an organisation and
having some objectives and goals are known as business organisation. There are four types of
organisation like (sole proprietorship, partnership, limited liability company and corporation).
Somehow, it is a process of bringing effective co operation between factors of production for
producing products and services to earn profit (Bridge and O'Neill, 2012). Their whole and sole
purpose is to serve the society with their products and to earn profits. There are some non profit
organisation as well who's sole motto is to serve the public not to earn profit. The report is based
on MEDICLINIC INTERNATIOANL PLC. Its headquarters is in Stellenbosch, South Africa.
CEO of this PLC is DANIE P. MEINTJES. The report will discuss about background of
business, its environment and analytical approach and collection of data/ graphs/ tables.
Background of Business Organisation
MEDICLINIC INTERNATIONAL plc is a private hospital in South Africa. The hospital
was founded in the year around 1983. The key people of this management are (EDWIN
HERTZOG and DANIE MEINTJES ). Hospital has a great revenue which is approximately to
2, 749 million, Organisation is being listed in London Stock Exchange and constituent of FTSE
100 Index. The MEDICLINIC has around 75 hospitals and 30 clinics. The organisation has three
hospitals in Namibia which is having more than 8000 impatient bed in total. Hospital is having a
main focus on providing acute care, specialist-orientated, multi-disciplinary healthcare services.
Their core purpose is to provide a best quality of life to patients by comprehensive and high
quality health care services, so that they can become a best group of doctors and trusted provider
of health care services to patients (Neubauer and Lank, 2016). The hospital holds around 30%
interest in spine healthcare group of plc. Number of employees are working with hospital that is
approximately 30,000,. the financial information about the company is that:
 +30% revenue (£2,749 m) is there compared to proforma including Al NOOR
(around £2,391 m).
 +26% operating profit £362M
 +15% is there in constant currency, revenue (increased by 15%)
 101% is a cash flow of company, its a conversation at 101% of underlying
EBITDAS
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 7.90 PENCE(total dividend of 7.90 pence per share)
The group is having a income statement which is reporting as non- IFRS measures in evaluating
the performance and providing shareholders with clear reporting. The group is having a policy to
adjust the types of income and charges to present some underlying results those are as follows:
 To have significant insurance needs.
 Accelerated amortisation charges.
 Had profit or sale on selling of significant assets.
 Restructuring costs.
 Tax and deferred tax adjustments.
 Significant transaction costs incurred during acquisitions of work.
It is required by every company to have a financial statement to attract many as
shareholders a firm can. Financial or annual report shows that whether the company is in profit
position or in loss way (Parvin and Kabir, 2011). This can help organisation to adjust some of the
strategies which is affecting a company in a bad manner and can make a successful strategy for
the firm. MEDICLINIC believes that constantly they will show the financial statement to
shareholders so that they can understand trading performance for the reporting period in a better
way, and hospital apply this constantly in near future as well. The firm found that in the previous
three years their clinical performance was satisfactory. The approximate of 85% patients were
satisfied with the services of the hospital. Market share according to the divisional review are as
follows:
Switzerland
The SWISS healthcare in one of the best funded in developed world and it is
continuously growing in higher rates. A survey was conducted in SWITZERLAND and found
that around 60% of respondents rated the health service with “good” or “very good”. 66%
considered that healthcare service is either “excellent” or “very good”. Survey was done in 11
countries and found that SWITZERLAND had the best response.
Southern Africa
Health care services in southern Africa has fall just because of elevated political changes.
Although the market is giving opportunity to grow or to expand existing hospitals or to build
new hospitals or clinics. The South Africa government is seeking to address shortcomings
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system through introduction phase of a national health insurance system for over the 14 years
period.
United Arab Emirates
The increased involvement of government authorities in the private sector, continuously
affecting the growth of the hospital industry. Increment in costs and having a great competition
scenario. Various opportunities lies in MEDICLINIC middle east like bringing newly opened
facilities and timely completion of projects which adds in the value satisfaction with the patient
and their stakeholders.
Market share is one thing which states that how the people of that country in satisfied
with the service of hospital. Market share should be higher to attract the more stakeholders and
the value to its patients in right way.
All the analysis is an important aspect for risk management analysis:
Risk is always a threat for any company. It is that which cannot be eliminated to have the
function to work smoother, this is something which can be overcome but can't be eliminated. The
objective of the group is to establish an effective framework for the risk (Beynon-Davies, 2013).
A risk management helps the company to identify and quantified and manage the risk in a
efficient manner. An ERM software which stands for(Enterprise-wide risk management)
application is that who supports the group of hospitals by risk management process in all the
three operating platforms.
Background to Business Environment
MEXICO is a country where the business can be done easily in Latin America, and it is
according to World Bank's ease of doing business. Somehow the crime rate of Mexico is high.
The government of the country is making effective decision related to the investment in main
industries and tax environment is not so business friendly and the labour markets are rigid in
nature (Wong, Tseng and Tan, 2014). Somewhere the Mexico ranks in around 53 out of the 180
countries. Generally, investment laws has come up by encouraging the foreign investment. The
Mexico had number of 78th out of 138 countries in network readiness index. The index measures
opportunity offered as information and communications technology.
Somewhere it is also there that the labour market is inflexible and having skill shortage
which remain in areas of finance, engineering and skilled operation. The ranking of country has
improved just because of the construction permits, getting credits and having trading across the
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borders of countries. Mexico is the eleventh popular country in the world and the country has a
population of around 111 million people. The political effectiveness and economic stability of
the country attracts the businessman to do the business than other developing countries. It has the
dynamic market and analysis says that this country will be having a higher economy in
comparison with UK by 2040.
The MEDICLINIC has a great opportunity in this country to build up their business,
because of less competition would be there and availability of hospitals with great facilities will
allow the patient to be a part of this hospitality (Baden-Fuller and Morgan, 2010). The challenges
a hospital will face for having their business in such country is the difference in culture and
language and money too. Labour market of such country is not so proper and the Mexican
bureaucracy has a complicated tax policies. It is also there that the people of Mexico does not
respond through impersonal means and communication or of selling.
The banking system of Mexico is as modernisation in process of Mexican financial
system, the commercial banks has turn out into privatised. Mexican banks plays an effective role
in globalisation of Mexico's economy just because they provide a financing for different
productive activities. The new commercial banking system provides investment programs and
banking services and it makes the venture capital investment with banks participating as
temporary minority shareholder. It allows the investment programs across the boundaries as well
which allows the transaction of currency of different country.
The businessman has a great opportunity to do the business in Mexico, just because the
environment is satisfying the requirement of business out there. The health care system in
Mexico is very poor the private hospitals are charging higher fees from the patients, and with this
MEDICLINICAL has a chance of fulfil this opportunity in aright manner, the hospital can give
the best facilities to the patients in reasonable rates and satisfying the patients with the services
offered by them, this will help in economic condition of Mexico too (Grigoroudis, Orfanoudaki
and Zopounidis, 2012). And it will create many more opportunities for other hospitals to work
harder and provide better facilities to them.
The law legal framework and political issues creates a lot problems for a businessman to
expand there business in Mexico. Issues faced by hospitals in expanding are as follows:
 The legal structure is not so proper.
 The tax structure is high.
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 Not availability of skilled labour.
 Communication barrier.
These are the most important issues faced by businessman in expanding their business to
such place. The inflation rate is also a issue for the hospitals, rate was like as it is based on the
Mexican consumer price index, the inflation was around 6.35%. interest is also there which is
also considered while getting there business in the boundaries of Mexico, the interest rate is
approximately 7%. the GDP of Mexico is also high like wise it is 8,201.31 USD. Which is high
in terms of business values.
All such things are there with the background of Mexico, a businessman can expand his
business in this country because many opportunities are there, and hospitals has a great
mannerism of getting use the opportunity in perfect manner.
Analytical approach
Analytical approach is always required by any company to do their business in other
country just because it gives a views of making effective decisions for making there business
stable in market.
The pestle environment of Mexico is are as follows:
Political Environment: The political environment of Mexico is that it is a Federal
Republic. Tax rates are wide, there are laws is also there for unionisation and somewhere of
homosexual workers. Local governments affect the business significantly, as few local
governments provide small incentive in terms of attracting them to have their business in their
area (Srivastava and Thakur, 2013). The government sets rules and regulations and freedom for
the company. Every company needs to follow obligations of the same. Poverty in Mexico is
there just because of geographic and political factors. According to the world bank and
international monetary fund policies have been applied because government does not make any
policies to attract and encourage the successful development. Thus, MEDICLINIC should give
emphasise on the same and consider all aspects related to political factors.
Economic Environment: Economic sector is the factor which is being seen by the large
businessman to expand there business there. This deals with the story of a country which
provides a balanced assessment. This refers to the economic system in which the firm operates. It
includes the balance of payment, the business cycle, distribution of income within the people of
country and governmental monetary and fiscal policies (Saunders, 2011). Mexico is a upper
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middle income country. Poverty of this country is around 44% which is under the poverty line
and it is need to increase the economic growth with economic opportunities for new entrants to
work place. MEDICLINIC is an organisation should look for inflation, interest rates and
employment level in country to seek possible opportunities available and try to grab them. The
inputs purchased by company have adverse effect on pricing of services. Inflation affect
organisation in severe manner.
Social Environment: Social section of customer demographics through income
distribution, rural-urban segmentation and centre's of affluence, healthcare and educational
scenario. Such as like these underdeveloped southern states to the industrialized urban centres
and with the developing area of Mexico. Somewhere the socio cultural component of
environment is having a influence on the effectiveness of firm for utilising the resources
available make there goods and services, and function within the society range. A company
always work to serve people. An organisation have to seek which culture they are working in and
try to provide better services to citizen of the country. Usually Mexico has some different culture
followed by people. Every company working should look for cultural environment and handle
society with care.
Technology Environment: Technology is the thing which changes the buying behaviour
and lifestyles of the consumers. This section provides a information on technology and telecom,
technological laws and the policies, technological gaps, and somewhere the opportunity sectors
in the country (Birchall, 2011). Although the technology is something who brings opportunities
and threats with him. This thing is required to transfer the products to one place to another in a
very effective way. New technology used in one company will affect the other companies to use
such technology in perfect manner to compete with them. Technological up gradation is difficult
to manage. Any organisation in order to be competitive, work towards innovation. They should
plan strategies to tackle with the situation of technological innovation. Creativity should be foster
among employees. Thus, it is necessary for dealing in dynamic environment.
Legal Environment: legislation is always vital. The philosophy of political parties
affects the power of influencing business strategies. Legal environment facing organisation is
becoming more complex and directly affecting businessman. Somewhere it has become so
difficult for business to have action in encountering law, regulation, or legal problems (Parvin
and Kabir, 2011). Significant laws include legislation in consumerism, employee, and
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competitive practises. Thus, any company working in a dynamic environment should obey all
laws governed by legislation. Disobeying the same will lead business towards failure.
Environmental Factor: This provides information on country's performance on
environmental indicators and policies. This country has a history of cooperation on
environmental and natural resource issues, there are some serious environmental problems cause
of population growth and industrialization. Now-a-days every government seek towards
protection of environment. They also made certain rules related to environment protection.
Breach of any rule will put company in danger.
Porter's five forces of model are as follows:
Industry rivalry: In hospitals the rivalry is maximum. Rivalry creates a chance of major
competition in market effectively. The hospitals can compete by providing the best services in
reasonable rates.
Bargaining power of buyers: The consumers are having a great power of bargaining,
but in hospital industry a consumers are less who bargains with anything, just because its about
the life of patients.
Threat of substitutes: The hospitals are having threat of its substitutes like many other
businessman can open many small clinics who provide services at lower rates the hospitals, this
creates a threat for them.
Bargaining power of suppliers: The suppliers of different products of hospitals like
medicines and injection etc. its hard for hospitals to have a bargaining from the suppliers of
product.
Threat of new entrants: The company has a threat of new entrants, not for those
companies who are having a great reviews about their service quality and nobody can affect the
values of the company.
Graphs of financial growth
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The image shows about the financial stock of the MEDICLINICAL international plc.
CONCLUSION
The above report states that expanding business across the boundaries, what could be
factors going to affect if expanding a business outside the country of their native place.
MEDICLINIC hospital has a great service quality according to the people. The financial status of
the company is finest as well. It is something knowing a particular country to expand the
business in that place. The background of the company and the background of the country as
well. The porters five forces and the pestle and swot analysis help the company to make a
strategies according to the requirement for such place. The outcome of the report is like that a
hospital is having a great opportunity to expand the business in Mexico country just because the
competition is low and unemployment is higher, so by this a company can make stable to
themselves in that country in easily manner.
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source 1: Finance and stock overview. 2017 [Available
through]<https://www.reuters.com/finance/stocks/overview/MEP.NM
>[Accessed on 15th November 2017].

REFERENCES
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business. Palgrave Macmillan.
Saunders, M.N., 2011. Research methods for business students, 5/e. Pearson Education India.
Beynon-Davies, P., 2013. Business information systems. Palgrave Macmillan.
Srivastava, S. and Thakur, M.K., 2013. Mentoring and Performance: Testing a Mediated Model
in Supervisory and Formal Mentoring in Business Organisation. International Journal
of Business Insights & Transformation. 6(2).
Grigoroudis, E., Orfanoudaki, E. and Zopounidis, C., 2012. Strategic performance measurement
in a healthcare organisation: A multiple criteria approach based on balanced scorecard.
Omega. 40(1). pp.104-119.
Baden-Fuller, C. and Morgan, M.S., 2010. Business models as models. Long range planning.
43(2). pp.156-171.
Wong, W.P., Tseng, M.L. and Tan, K.H., 2014. A business process management capabilities
perspective on organisation performance. Total Quality Management & Business
Excellence. 25(5-6). pp.602-617.
Parvin, M.M. and Kabir, M.N., 2011. Factors affecting employee job satisfaction of
pharmaceutical sector. Australian journal of business and management research. 1(9).
p.113.
Birchall, J., 2011. People-centred businesses. In People-Centred Businesses (pp. 1-19). Palgrave
Macmillan UK.
Online
Business Organisation. 2017. [Online].Available through:
<https://www.britannica.com/topic/business-organization>[Accessed on 15th
November 2017.].
Porters five forces model. 2017. [Online]. Available through:
<https://www.strategicmanagementinsight.com/tools/porters-five-forces.html>
[Accessed on 15th November 2017].
Finance and stock overview. 2017. [Online] Available
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