Strategic Management Report: NHS Development and Strategies

This report provides a comprehensive analysis of the strategic management of the National Health Service (NHS). It begins with an introduction to strategic management and its application within the healthcare industry, specifically focusing on the NHS. The report delves into the strategic direction of the NHS over the past five years, highlighting key developments and strategic plans. A PESTLE analysis is conducted to examine the external factors influencing the NHS's operations, followed by an assessment of its competitive position within the healthcare market. Further analysis explores the NHS's mission, vision, and strategic capabilities, including core competencies and resource implications. The report also examines strategies the NHS can employ to defend its core businesses and concludes with a summary of the findings and implications for the future of the NHS. The report is a detailed overview of the NHS's strategic evolution, challenges, and opportunities.

Strategic management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 – Strategic direction of NHS and the development within the past 5 years......................3
TASK 2 – PESTLE analysis and impact of competitive position. .................................................4
TASK 3 – Further Analysis on NHS...............................................................................................6
TASK 4 – Strategies that NHS can follow in order to defend its core businesses........................10
TASK 5 - Resource implication ....................................................................................................12
CONCLUSION .............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
Strategic management is defined as identification and execution of various business
strategies which can be effective for business and assist it to achieve its objectives and goals.
Strategic management is the concept that helps in supporting the organizations in developing
business strategies, managing the human resources and performing the business operations
smoothly or easily. This report is in context to NHS(National Health Service), organisation
operating in the Health and social care industry. The report will identify overall strategic plan of
NHS in the past, present and future which help it to sustain in the market as well as ensure the
achievement of the organizational goals and objectives.
TASK 1 – Strategic direction of NHS and the development within the past 5
years.
National health services(NHS) is an organization which provides effective health and
social care services to the people. The organization focus on fulfilling needs of their customers
and satisfy them with their services. The NHS was established in the year 1948 and the main
objectives or goal of their organization is to deliver high quality services with respect to health
and social care of the people The organisation focus on implementing innovative techniques and
methods in their business operations to achieve high success and gain competitive advantages in
the market. In the past 5 years NHS has developed its strategic thinking at a great extent, the
company has formulated various strategies and modified them according to the changing needs
and trends of the market. The strategic plans of NHS in the past 5 years are as described below-
 NHS commissioning board organizational plan 2012 – This strategic business plan of
NHS was to establish a commissioning board along with an innovative clinically-led
commissioning system with respect to the patients need and wants. This strategy marks
the critical part in the development of the commissioning system in NHS.
 NHS business plan 2013 – Putting Patients first was the part of this plan's title, NHS
developed this strategy with an aim of supporting the commission system in order to
utilize their important public resources for improving quality and achieve the best results
for customers. At this stage the company started focusing on patients needs rather than
earning profit or benefits.
 NHS business strategy 2015 – During this stage NHS observe that putting people first is
an effective plan but with the aim of providing high quality services to the people it is

very important to know how to achieve this aim. Therefor, the company started focusing
on the development of the employees or staff working in the organization. The company
made effective strategy to develop an effective team or staff which can perform the
business activities smoothly and efficiently leading to success.
 NHS funding and resources – The NHS also developed effective strategy to support
transformation aim of the local health and care systems with the help of distribution of
funding and its people. This strategy focused on the development of the overall heath
care system for the people which help NHS in building a positive brand image in the
market(Theriou, 2015)
 National health services focused on attracting people with implementing various other
strategies such as heath campaigns, development of the clinics or infrastructure,
improvement in the technology which was due to then changing business environment,
changing needs of the patients and the changing trends in the market.
Hence, According to the above discussion it is very clear that NHS is continuously developing its
strategic management and business plans in order to achieve the organizational goals more
effectively and efficiently. The NHS earlier developed its infrastructure and profit by providing
health and social care services to then people, later on due to changing needs and satisfaction
level of the people, NHS develops another improvement in their strategy. The organization
started focusing on improving the quality of the services provided to patients. This Strategic
development helps the organization in gaining high advantage within health care industry,
National Health services adopted innovative strategies according to the changing environment
and competition in the market.
TASK 2 – PESTLE analysis and impact of competitive position.
National health services is a health care service provider which operates in a highly
competitive market. The health and social care industry consist intense competition due to the
increasing demand of the hath services. The business environment includes many factors or
elements that affects the working of the health care organizations. These factors are the external
factors that influence the overall performance of NHS, in order to identify the various external
factors affecting the business activities of the organisation PESTLE model can be used which is
as implemented below -

 Political factor- The Political factor is a highly uncontrollable factor that affect the
business operations of each and every type of business in the market. NHS task can vastly
influence by the political condition in the nation. Administrative standards, direction and
set of accepted rules can impact the working activity of NHS. Supervisor of NHS can not
ready to center around the long haul system in light of the fluctuating political condition.
Because of changing control and implicit rules, trough of NHS need to roll out important
improvements in the task and exercises at normal premise and this thing may make worry
about director.
 Economical factor- Economical factor refers to the financial element affecting the
organizational operations or activities. This is another of the significant factor that can
influence the NHS working task in vast way. This factor comprises with loan fee, retreat,
swelling and so on through which costs of treatment and prescription may impact.
Monetary condition can improve the benefit and loss of the NHS so that there is necessity
to be broke down and required changes ought to be executed.
 Social factor-Social natural factor can increment and reduction the quantities of patients
and staff related with NHS. It is critical for NHS to examine the nation's kin age,
quantities of populace, their medical problem etc through which it can make successful
working practices for their treatment.(Morden,2016).
 Technological factor-This is another of the central point that can influence the NHS
working in the nation. Innovation is constantly changing in the present time because of
which NHS need to change its surgical gear, instruments, courses of action of treatment
and so on due to general evolving innovation. NHS director need to contribute capital for
buy innovative foundation. Innovation additionally serves to NHS in putting away the
patient data and convey them high caliber and quick treatment.
 Legal factor-Government have built up a few sorts of laws and enactments for
employees, clients, group, condition, patients and so forth. What's more, with a specific
end goal to convey treatment to persistent, NHS have completed quality enactment which
it can ready to convey viable treatment to patients.
 Environmental factor - NHS have incredible duty to contribute inside the earth. NHS
contributes inside condition by plants trees in their grounds and area so it can give a solid
domain to patients who are conceded inside the healing facility. Likewise, another

ecological commitment of NHS is that it utilizes dispensable surgical types of gear and
instrument of treatment through which condition don't impact in negative
way(Baumgartner and Rauter,2017).
The NHS is among the largest public sector organization in UK, and is facing a huge competition
in the health-care industry. The National Health services has huge number of hospitals that
provide effective health-care services to public and sustain its competitive position in the market.
There various private health-care organizations providing the same service as NHS are the main
competitors of National Health services organization in UK. In order to sustain its position the
organisation ensures that it develops certain competitive advantages in the market. The various
competitive advantages NHS holds are as mentioned below -
 Wide geographical reach – The National Health services organization has a huge number
of hospitals operated in many countries which provides easy access to its services for the
public. This is a major advantage for the organisation in the competitive market as the
private health-care organizations does not have that much presence geographically.
 Funding – The NHS is a public sector organization which means it is owned and
operated by the government. The funding for NHS comes straight off from taxation, and
its budget is around £117 billion in the year 2015-2016. These huge funding helps NHS
to grow and develop effectively in order to provide more satisfying services to the
patients(McKiernan,2017).
TASK 3 – Further Analysis on NHS
NHS organization is facing a drastic change in its strategic management, due to the
changing environment and trends in the market it is essential for every organisation to modify or
develop new strategies in order to compete in the market or industry with the competitors. The
strategies developed by NHS needs to be molded according to the various factors influencing its
business operations such as change in political environment, economic environment,
technological changes in the market etc. all these elements within the market have a great impact
on the strategic management or planning of the organisation.
Mission and Vision of NHS
The National health services organisation established with a major aim or vision of
providing effective health-care services to the people and society. This mission clearly states that
the focus of the organisation is to deliver health-care services to the people in the most effective

way and to fulfill the needs of the patients. This mission of the organisation is based on
organization's nature and structure (Frynas and Mellahi,2015). The aim of NHS was to be a
leading organization ton provide best health-care services in many areas of UK. Mission is not
only a goal for the company, the entire organisation, its policies, structure, functions and
strategies are based on achievement of the mission. In order to accomplish this mission NHS
established its hospitals and care center in England, UK as well as many other regions for easily
provide services to the people. NHS successfully developed a huge chain of health-care centers
to meet the demand of health-care services in the market. In addition to this National health
services organisation also have a vision to be a most trusted health-care service provider all
around the world which is not a far goal for them. It has already achieved the largest public
sector organisation in UK. Vision can be refereed as the future goal of an organisation, these
goals are the key elements or objectives which can be achieved from the continuous development
and growth of the business or organisation with respect to its size, scale and quality of services.
The current marketplace condition represents a high demand of the health-care services due to
increase in population and disease. The people are more exposed to the health-care services,
NHS target the areas which are in need of the care services. The high demand influenced NHS to
establish a huge number of hospitals and care center in order to meet the growing demand of the
care services and also protect people form harmful diseases.
Strategic capabilities
Core competency display depicts principle skills of the firm.: Assets, Competitive
advantages and abilities. Assets assume part of building hinders in the working environment, on
the bases of accessible asset key pioneers figure procedures and execute it at the work
environment. Esteem including methodology can be created just when organizations have
satisfactory measure of assets. These backings in increasing exceptional yield over its ventures
and increasing upper hand(Morschett, Schramm-Klein and Zentes,2015). Assets of NHS are
money related, innovative, physical, HR. Commitment and combination of every one of these
assets can bolster element in picking up progress. For executing procedures in human services
area NHS is required to have talented staff individuals the individuals who have incredible
information about economic situation. Aside from this substance needs enough finances with the
goal that progressions can be made adequately. These assets can improve capacities of NHS and
limiting shortcoming too. Capacities of the organization can be characterized as potential

outcomes of the firm to constructed and upgrade its center capabilities. Capacities are elusive in
nature and is the important assets of the firm. It the association does not have capacities to use its
assets well then it might get neglected to make center capabilities. Center competency model of
key administration underpins NHS in raising guidelines and limiting issues of the social
insurance association.
 Core competencies are the inside capacities of the refereed to firm and helps the element
in meeting with its target by make viable systems and actualizing it into the working
environment.
 Advancement of strategic abilities are fundamental for the development of specialty unit.
NHS is persistently attempting to upgrade abilities and learning of its staff individuals.
For that it is leading instructional meetings for them with the goal that they can become
more acquainted with about new advancements, issues in medicinal services segment.
These backings them in building up their insight and abilities and giving quality care
administrations to patients. Improvement of core competency is conceivable by aggregate
learning in the working environment(Gamble and Thompson,2014). For that key pioneers
recognize set of issues and in like manner they make systems with the goal that issues can
be settled. Center abilities of the business are aptitudes, exercises and disposition of
individuals towards work. Keeping in mind the end goal to raise learning abilities of the
specialists organizations continual attempt to influence them so that they appreciate their
employments and perform it well. Keeping in mind the end goal to propel them vital
pioneers of the firm gives them prizes and acknowledgment. That empower them and
they put their earnest attempts to meet with the authoritative objective. Mechanical
competency is critical in the social insurance part In the current time numerous propel
innovations are being utilized as a part of healing facilities. Utilization of these propelled
specialized types of gear bolster the social insurance associations to give quality care
administrations to patients and enhancing their well-being conditions. Prior numerous
organizations were not utilizing these machines on account of absence of budgetary
assets. Keeping in mind the end goal to determine this issue NHS has begun giving assets
to healing facilities sop that they can utilize such machines while treating patients. This
has upheld patients also in increasing exact treatment at ideal time. By along these lines
medicinal expert end up ready to look at the individual well and giving them treatment

according to their restorative necessities. Keeping in mind the end goal to execute center
competency display at the work environment it is fundamental to have commitment of
employees and satisfactory measure of money related assets(Lasserre,2017).
Business Canvas model - NHS
Key partners Care Quality Commission and The Department
of Health
Development of society and country
Key activities Providing health-care and treatment services to
the people
Value proposition Health-care and good treatment
Customer relationship Trust-able and Healthy relationship
Customer segment Patients suffering form disease and customer
from every class
Key resources Human resources, Financial resources and
technological resources. The most important
resources are the employees of the NHS.
Distribution channel Hospitals and Care- centers
Cost structure Infrastructure cost and technological cost are
the highest expenses of NHS
Revenue Stream The customers in health-care pays according to
the quality of services, NHS provides high
quality services to the patients but the cost is
not too much. The local patients and old age
people are the maximum revenue generator for
NHS and pay according to the quality and type
of services they need.

TASK 4 – Strategies that NHS can follow in order to defend its core
businesses
NHS can implement the concept of core competency in order to compete in the market with
other health-care organizations. According to the instance of NHS its significant goal is to
enhance the nature of administrations and give powerful fulfillment to them. Fundamentally it is
an association inside the English NHS by and large serving either a geographical area or a
predefined work(Goetsch and Davis,2014). By embrace the center competency idea of the vital
administration, NHS can ready to enhance its performance by implementing the following
strategies -
1. According to the idea of NHS its significant three components that is capabilities,
competitive advantage and assets. Accordingly, keeping in mind the end goal to enhance
these all perspective, organization enhance its inward quality and abilities by acquiring
new asset, preparing and advancement, innovative change and so on. NHS is constantly
attempting to upgrade aptitudes and learning of its staff individuals. For that it is
directing instructional courses for them with the goal that they can become more
acquainted with about new innovations, issues in medicinal services area. These backings
them in building up their insight and aptitudes and giving quality care administrations to
patients.
2. Advancement of center competency is conceivable by aggregate learning in the working
environment. In this manner keeping in mind the end goal to enhance the learning inside
the association, administration sort out the preparation and improvement session for its
workforce. By sorting out preparing and improvement session for the workers,
association can successfully upgrade the quality, information, aptitude, capacity and
ability of employees through which they can perform in better ways(Rothaermel,2015).
3. According to the idea of center competency, NHS need to enhance its assets, for
example, monetary, human asset, innovative asset and so on. Keeping in mind the end
goal to enhance this asset organization need to contribute some measure of capital. For
example, by enhance mechanical asset, NHS can ready to improve the quality and speed
of work at the work environment. By change in the mechanical framework, firm can
without much of a stretch improve the administrations and activity of business. By
enhancing nature of administrations, consumer loyalty and administrations can likewise

improve at the working environment. Subsequently, one might say that by execute
mechanical asset, firm can improve client administrations, speed of the business activity
and so forth. Innovative competency is essential in the human services part. In the current
time numerous propel innovations are being utilized as a part of doctor's
facilities(Bryce,2017). Utilization of these propelled specialized types of gear bolster the
medicinal services associations to give quality care administrations to patients and
enhancing their well-being conditions. Another assets under the center competency is HR
which serves to the organization in do all business task in a compelling way through
which association can accomplish its target inside decided day and age. It is extraordinary
obligation of the association to oversee and keep up human resources in such way
through which they can achieve its objective inside time and perform in most fantastic
way. Keeping in mind the end goal to enhance center fitness inside the NHS
administration successfully select the new employees and secure the high gifted workers.
By selecting high talented employees in the firm can adequately improve the center
competency and upper hand. While organization enlist the new gifted employees then it
might ready to enhance its current working capacity and capacity. With help of high
gifted representative's organization can achieve its objective inside s particular time-
frame. Core competencies of the business are abilities, exercises and state of mind of
individuals towards work. With a specific end goal to raise information abilities of the
laborers organizations consistently attempt to persuade them so that they appreciate their
occupations and perform it well(Ginter, Duncan and Swayne,2018).
4. Keeping in mind the end goal to inspire them key employees of the firm gives them
prizes and acknowledgment. That energize them and they put their earnest attempts to
meet with the authoritative objective. By give abnormal state of prizes and mindful
administration of NHS can ready to hold its workers in the organization for long time.
With help of motivation system, workers can hold inside business endeavor for long time
and also perform in better way. Accordingly, one might say that by give compelling
inspiration promotion consolation, organization can without much of a stretch deal with
its HR and create center competency inside the organization. Preparing and advancement
is another of the significant strategy to deal with the HR inside the organization in a
successful and astounding way. By sorting out preparing and advancement session for the

workers, association can successfully upgrade the quality, learning, aptitude, capacity and
ability of employees through which they can perform in better ways. In spite of the fact
that, with a persistent taking a shot at the center abilities understanding the issues has
been settled in basic way which enables business to have better improvement in the
market(Fynn and et,al,2016).
5. NHS can enhance its present execution and conquer the issue with regard to poor client
administrations and intense rivalry. While NHS manages three components that is
abilities, asset and upper hand then it gets ready to perform in great way. These three
component serves to the NHS in beat the shortcoming and enhance the quality. It helps
with improving the proficiency level of the association and give viable consumer loyalty
through which they can adequately meet its objective of business. It is an idea which
permits to have better utilization of administration hypothesis so key esteems inside
association can be very much kept up to have feasible advancement. Hence, from this
whole discourse it has been broke down that by execute the idea of center competency
inside the NHS administration of the NHS can viably enhance the current execution of
business and defeat the few issues with respect to poor administrations and working. It
helps to the association in creating business technique and strategies that organizations in
contending with rivals and create noteworthy upper hand.
TASK 5 - Resource implication
In order to achieve high performance and development in the organization NHS needs to focus
on effective allocation of its resources. The resources are components which helps an
organization to perform various business functions or activities. NHS has many important
resources which are responsible for accomplishment of its organizational activities. These
resources and their use for effective strategic management can be described as below -
 Financial resources – As discussed earlier in this report for achievement of competitive
advantages in the market it is very important to use financial resources properly. The
NHS needs to focus on utilizing its resources in development of technology and
infrastructure(Hill, Jones and Schilling,2014).
 Human resources – The Human resourceful needs to provided effective training in order
to provide better services to the people in various areas or hospitals.