Strategic Management Report: External Analysis of King Faisal Hospital

This report provides an external analysis of King Faisal Hospital and Research Centre, focusing on the strategic management of the healthcare organization. It examines the influence of various external factors, including political, technological, economic, and socio-cultural aspects. The analysis highlights the need for the hospital to adhere to data protection standards, manage service demands effectively, and adapt to technological advancements like robotic surgery. The economic factors, especially fluctuations in the market, and socio-cultural considerations are also addressed. The report identifies the strengths and weaknesses of the external analysis, emphasizing its ability to highlight crucial business factors while also pointing out its limitations, such as the exclusion of the competitive scenario. To improve future external analyses, the report recommends the use of Porter's Five Forces to gain a deeper understanding of the industry structure and gain a competitive edge. The student's assignment offers a practical application of strategic management principles within the healthcare sector.

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student:
Name of the University:
Author note:

1STRATEGIC MANAGEMENT
I. The external issues
Political
The political environment of the country requires King Faisal Hospital and Research
Centre to meet the data protection and privacy standards and at the same time, manage the
demands, needs for the service to avoid the excessive use and improper restrictions and
rationing through referral guidelines or waiting lists (Hasanain and Cooper 2014). Also, the
hospital is restricted from refusing access to special groups.
Technological
The latest technological breakthroughs in the surgery techniques like the robotic
surgery have made it possible for many illness to be treated but have increased the required
costs of such services.
Economic
King Faisal Hospital and Research Centre marketers pay high attention to the high
income people. The economic fluctuations in the market both positively and negatively
impact the demand for services and goods like the health services. However, presently, the
KSA rate of interest is stable and this affect the private hospitals like King Faisal Hospital
and Research Centre of Saudi Arabia in terms of their development of health service and
volumes.
Socio-cultural
The hospital is required to promote their products in a way that they could appeal to
diverse social backgrounds and maximize the sales of the hospital (Rawas et al. 2012).
2. Strengths and Weaknesses of the external analysis

2STRATEGIC MANAGEMENT
Strengths
It has highlighted the important factors that affect the business of the hospital in Saudi
Arabian region. With the same, it has offered a viable technique to carry out environmental
scan for a project, although the effectiveness of it relies on the accuracy of the collected data.
Weaknesses
It has not explained the environmental factors that also play a vital role in the overall
business success. Also, it is insufficient for strategic planning for the hospital as it has
scanned only the external environment and completely ignored the competitive scenario.
3. Recommended tools and techniques
a) In order to improve their external analysis in the future, needs to make use of Porter
Five forces developed by Michael Porter. It is a very easy tool for understanding the
industry structure that is very important for effective planning of strategies in order to
gain competitive edge over the competitors.

3STRATEGIC MANAGEMENT
References:
HASANAIN, R.A. and COOPER, H., 2014. Solutions to overcome technical and social
barriers to electronic health records implementation in Saudi public and private
hospitals. Journal of Health Informatics in Developing Countries, 8(1).
Rawas, H.O., Yates, P., Windsor, C. and Clark, R.A., 2012. Cultural challenges to secondary
prevention: Implications for Saudi women. Collegian, 19(1), pp.51-57.