KTG leader ship Essay Example for Free

KTG leader ship EssayIntroductionAn environmental analysis in st set outgic moldment plays a rattling importantrole in businesses by pinpointing current and potential opportunities or threats away the company in its external environment. The external environment includes political, environmental, proficient and sociological events or trends that discount affect the business directly or indirectly.The main objective in this report is an environmental analysis apply every last(predicate) the factors and analyzing tools , generally conducted as part of an analysis of strengths, weaknesses, opportunities, and threats ( machinate) when a strategic plan is being positive. Managers practicing strategic management must conduct an environmental analysis quarterly, semi-annually, or annually, depending on the nature of the businesss attention focusing on the followings Analyzing factors effectiveness on our organization as maven of the biggest group in the health c be functio n in the region. Organization sources and competitors.Organization values chain construction. dress up analysis evaluation.Ref http//www.wisegeek.com/what-is-the-role-of-environmental-analysis-in-strategic-management.htm , 20143.ANALYSING FACTOR EFFECTIVENESS3.1 Macro Environment AnalysisOne of the dress hat tools for considering trends in the Macro environment is the PESTEL analysis. (Figure 1)Figure 13.1.1Political factorsSince we argon located here in the UAE, we see no taxation and this is wholeness of the strength point we argon depend on. but at the same metre our administration squad non recognizing that the minimum wages should be increased comparingwith the early(a) facilities and infirmarys in our region as a big competitors.3.1.2EconomicEconomic factors include economic growth, interest grade, exchange rates and the inflation rate. These factors have major collisions on how businesses operate and make decisions. For example, interest rates affect a firms cost of capital and thitherfore to what extent a business grows and expands. Exchange rates affect the cost of exporting goods and the summate and price of imported goods in an economy.And since our organization as privet health tuition celerity, found on the profit rate it takes in the consideration all these factors especially after it involved in the stock market last grade. Beside that the cutting plan is to minimize the expenses that related to the interest exchange rate by following the centralization policy. ex. making unitary laboratory for all branches with a very controlled battery-acid system for sending the patients samples to the centralized laboratory instead of having a separate laboratory in apiece branch3.1.3SocialOur organization as one of the privet hospitals in the region , is giving all the healthy activities, health c are providing, never giving any changing as a demographic trends. We are doing outside activities supporting some certain people those who hav e a inveterate unsoundness like the diabetic patients to have more and more knowledge about themselves and how to take care about it. Ref(CBS course , issue 2 , page 5)3.1.4TechnologyWe are depending on the development of new technology to maintain rivalrousness. Ex(opening new plane section of the Nuclear medicine for early Cancers diagnostics )3.1.5 Environmentfactors include ecological and environmental aspects such as weather, modality, and climate change, which may especially affect industries such as tourism, farming, and insurance. Furthermore, ontogenesis awareness of the potential impacts of climate change is affecting how companies operate and the products they offer, both creating new markets and diminishing or destroying existing ones. Ref http//en.wikipedia.org/wiki/PEST_analysis fit to our national regulations and environmental roles ,we are following the EHSMS(Emirates Health Safety Management System).3.1.6 Legalinclude divergence law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products.The religious services in the hospital is the same for all patients and the priority is only for the urgent and emergency cases only not harmonise to the nationality, color or any other discrimination issues. And on the other side there is a special track for the VIP patients ,giving the best quality to be the first choice in the region as a privet hospital.3.2 micro Environment AnalysisOne of the best tools for considering trends in the Micro environment is the porter analysis. (Figure 2)Figure 2Porter five forces analysis is a framework for industry analysis and business dodge development. It d edgeds upon industrial organization (IO) economicsto derive five forces that determine the agonistical intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An unpresentable industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching pure tilt, in which available profits for all firms are driven to normal profit. This analysis is associated with its principal innovator Michael E. Three of Porters five forces refer to contest from external sources. The remainder are internal threats.3.2.1 Threat of Substitute Products or advantagesA backing is a product that performs the same or similar function as some other product. Microeconomics teaches that the more substitutes a product has, the demand for the product catchs more elastic. Elastic demand means increased consumer price esthesia which equates to less certainty of profits. For example, public-transportation is a substitute for driving a car, and e-mail is a substitute for authorship letters. Conditions that increase the threat of substitutes are 1.2.1.1 An attractive price of substitutes Our organ ization as a privet health care facilty depends on the insurance companies in how much they are fixing the prices of the services and products, but they are move to do some trade using special prices for the labors in some company by doing all-inclusive checkup examination for those people who dont broaden by insurance.1.2.1.2 Increased quality of substitutes Our facility is trying to bring forth the best quality to be the first choice in the region in the privet health care sector. Focusing more and more to follow the highest external standards like the JCIA (Joint Commission of international accreditation) ,CAP(Collage of American Pathologist) and the ISO ..Etc 1.2.1.3 Low switching costs to consumers our Administration is not switching the cost to the consumers since they are covered by health insurance. But sometimes they are switching the costs to the supply by minimizing the staff without enough study to the work load or stopping the annual increments.3.2.2 . Threat of E ntry economic markets that yield high returns allow attract new firms. This results in many new entrants, which eventually will decrease profitability for all firms in the industry. Unless the compliance of new firms can be blocked by incumbents (which in business refers to the largest company in a certain industry, for instance, in telecommunications, the traditional phone company, typically called the incumbent operator), the abnormal profit rate will trend towards zero (perfect competition). The following factors can have an effect on how much of a threat new entrants may pose The existence of barriers to entry (patents, rights, etc.). The most attractive segment is one in which entry barriers are high and exit barriers are low. Few new firms can enter and non-performing firms can exit easily. Government policyCapital requirementsinfrangible costCost disadvantages independent of sizeEconomies of scaleEconomies of product differencesProduct differentiationBrand rightSwitching c osts or sunk costsExpected retaliationAccess to distribution guest loyalty to established brandsIndustry profitability (the more profitable the industry the more attractive it will be to new competitors)Rivalry Between Established competitorsRivalry refers to the degree to which firms respond to competitive moves of the other firms in the industry. Rivalry among existing firms may manifestitself in a number of ways- price competition, new products, increased levels of customer service, warranties and guarantees, advertising, better networks of wholesale distributors, and so on. The degree of rivalry in and industry is a function of a number of interacting structural features Rivalry tends to intensify as the number of competitors increases and as they firms stimulate more equal in size and capability. mart rivalry is usually stronger when demand for the product is growing slowly. Competition is more intense when rival firms are tempted to mathematical function price cuts or other marketing tactics to boost unit volume. Rivalry is stronger when the costs incurred by customers to switch their purchases from one brand to another are low.Market rivalry increases in proportion to the size of the payoff from a successful strategic move. Market rivalry tends to be more vigorous when it costs more to guide out of a business than to stay in and compete. Rivalry becomes more volatile and unpredictable the more diverse competitors are in terms of their strategies, their personalities, their corporate priorities, their resources, and their countries of origin. Rivalry increases when strong companies outside the industry acquire weak firms in the industry and lunch aggressive, well-funded moves to transform their newly-acquired firms into major market contenders.Two principles of competitive rivalry are curiously important (1) a powerful competitive strategy used by one company intensifies competitive pressures on the other companies, and (2) the manner in which rivals employ various competitive weapons to try to outmaneuver one another shapes the rules of competition in the industry and determines the requirements for competitive success. Since our hospital is the biggest hospital in the area, it depends in the competition on increasing the branches in all areas inside and outside the city for more than 8 branches say by the corporate home in the Capital.3.2.4 Bargaining Power of Customers3.2.4.1 Markets for OutputsSelling goods or services to customers (distributors, customers or other manufacturers) Customers influence dependent upon importance of products to them their bargaining power We have a marketing team of 4 members working under the supervision of the corporate office , handling all the outputs issues like the chronic patients disease health care activates offering free of charge checkup (ex. diabetic patients..)3.2.4.2 Markets for InputsPurchasing raw materials, components and financial labor services. The same team also coopera ting with the purchasing department to loseher working to get the best quality materials for the lowest prices in order to minimize the costs. And that will allow the hospital to give more best services more than the other competitors.3.2.5 Bargaining Power of SuppliersThe power balance among organization and supplier is similar to the relationship between organization and customer The organization becomes the customer and the manufacturing business of the inputs it requires are the suppliers Some small groups of suppliers may form cartels or cooperatives to increase their bargaining strength Suppliers use leverage such as threats to raise prices or reduce quantity or quality of goods they supplyWe are depending on the process comparison in the market and to services the suppliers will provide to us. In the opposite side, we are a customer for the suppliers and since we are the biggest customer in the privet sector we can manage the deal according to our needs.3.3 FormulatingFormul ating is phase one in the strategic cookery process and according tothe plat below We can see that it plays a very important in taking the best decisions and actions to action the objective of the organization. In our hospital there are many plans in how to make all these decisions become a real. At the beginning of each new year , we are making our plan projects for the beside 12 months And everyone have to achieve his planed objectives as individual under the umbrella of the administration and corporate office objectives. And at the end of the year will have an assessment to check how many objectives he reached , according to his work assessment will get his increment , so that will let him work harder during the year to achieve the organization objectives.Figure 3Ref(CBS course , subject 1 , page 12).3.3.1 Organization sources and competitors Our hospital sources is strong enough to be a strong competitor in the market depending on shell medical companies as materials provid ers.Best marketing plans based on the corporate marketing plans. Patients (as a customers ) accept all the insurance cards at the time that some other hospitals dont pass judgment all patients.3.3.2 Organization value chain constructionValue chain is a template that identifies the activities of a company from raw materials to customer, the value added by each activity and the cost of each activity, and that facilitates implementation of business-level strategy . Ref ( CBS Strategic Management Topic 3 Page6)The axiom is true that you never get a second chance to make a good first impression, and hospitals have many opportunities to do so. Or not. At several junctures along the trek of accessing services, the patient confronts a series of opportunities to continue in the system or not, based on the success of the interaction. These touchpoints are not created equal, and it is important to know which has the superlative impact. Here, we can focus the Service Line Growth strategy. As a tool to understand the impactof each touchpoint, value-chain service analysis maps the process to help us decide where to focus strategic intent. hospital business planning adapts a model developed by Michael Porter, who defines the value chain as a means to analyze an organizations strategically relevant activities to understand how to influence performance and cost.He breaks the activities of the firm into primary and support activities. Primary activitieswhich, for most firms involves inbound and outbound logistics, operations, sales and marketingare supported by an infrastructure of underlying support activities, including HR, IT, and purchasing. How the product or service is ultimately developed and delivered to the customer depends on the effective interaction of these variable activities. The hospital value chain is diverse and complex. Our service offerings are far from clear cut, varying sharply between service lines. Each specialty and disease category has a distinct va lue chain to be flowcharted and analyzed prior to understanding where we can impact choice by creating value. In most cases this is at the physician referral point where patients make initial decisions.This may be a primary care physician or a specialty care physician who is directly involved in managing the hospital encounter. In most cases, it is the loyalty of the physicians and their attitude towards the hospital that determines the direction of the process. This analysis is a good tool for getting stakeholders on the same page. It helps focus planning efforts and gets to the key issue of where to go and what to do. This leads us to the questionwhat business are we in, and where do we strategically insufficiency to focus our efforts, which is the essence of strategy.Figure 44.1 Strengths (Internal Factors)The hospital key strengths are the followingLong stand up Reputation was the previous monopoly Company in the industry Government Affiliated trusted in the MarketMost skill ed employees in the industry generated good client relations4.2 Weaknesses (Internal Factors)The main functional areas of weakness are the followingProduction Costs in comparison to competitorsProfit Margins in comparison to competitorsService Delivery poor operational functionsLoss of Contracts lack of continual Contract retentionCompany elaboration disconnected, divided, tall organisation structure HR Policies Procedures poor employee retention, lack of career development, low morale inadequacy of MIS no common management information systems in place across functions. Brand Identity/ shape lack of Marketing departmentConclusionThe main objective is the consideration of the external and internal analyzing factors, using all the analyzing tools and studies like PORTER, SWOT and all other analyzing international methods.This report explained clearly the essential compulsory methods for analyzing using the practical example of my organization (Privet Hospital), how to mak e the competitive advantages and how to use all the efforts to get the best analyzing results. After the analyzing how can we use our strength points to be the first choice in the market and how to fructify the weakness points to avoid any problem in the future.In the light of the above there are essential factors which might be affecting in any organization , so we have to cover all the points that I mentioned about it before like Analyzing factors effectiveness on our organization as one of the biggest group in the healthcare services in the region. Organization sources and competitors.Organization values chain construction.SWOT analysis evaluation.6. Referenceshttp//www.wisegeek.com/what-is-the-role-of-environmental-analysis-in-strategic-management.htm , 2014 (http//en.wikipedia.org/wiki/PEST_analysis) , 2014CBS course , question 2 , page 5 , 2014http//en.wikipedia.org/wiki/PEST_analysis , 2014http//www.oshad.ae/en/sectors/healthsector/Pages/ehsmsrequirements.aspx, 2014 http// www.dineshbakshi.com/igcse-business-studies/external-environment/revision-notes/63-external-environment-factors, 2014 http//en.wikipedia.org/wiki/Porter_five_forces_analysis ,7 March 2014) http//en.wikipedia.org/wiki/Porter_five_forces_analysisThreat_of_new_entrants, 2014 http//www.strategy-formulation.24xls.com/en114CBS course , topic 2 , page 17 , 2014CBS course , topic 2 , page 20 , 2014CBS course , topic 1 , page 12 , 2014CBS Strategic Management Topic 3 Page6 , 2014http//healthcarestrategicadvantage.blogspot.ae/2007/11/value-chain-analysis.html , 2014 Strategic Management Unit 306 (CBS) , 2014