Strategic Planning in Health Care

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Introduction

The basic tool for analyzing an external and internal organizational analysis (competitive position and advantages) is a SWOT analysis. As such, it is critical to examine the various tools for assessing competitive advantage, so the concept and the different types of competitive advantages available to the organization are understood. A manager analyzing his or her organization must also consider potential activities external to the organization since competitive advantages and capabilities could be attributable to a supplier or distributor in the market (Economist, 2013; McGraw, 2013).

Part 1: Advantages of an external analysis include but are not limited to:

- Cost-effectiveness: The biggest advantages of an external analysis are that it there are no costs associated with doing so. It is a cheap and effective way to plan strategically. As such, anyone can complete such an analysis without hiring for example, major business consultants. To this end, since the extra help is not mandatory, the process can be a very cost-effective method of analyzing an organization's projects and proposals (McGraw, 2013).

- Simplicity: Another great benefit of the SWOT analysis is that it is relatively simple and easy to understand. An organization can employ the method to identify its strengths, weaknesses (internal) as well as its opportunities and threats (external) that may be present themselves. It is also not at all too complex, to decipher the objectives of its strengths, weaknesses, opportunities and threats, in order to become more successful. Basically, the organization must capitalize on its 'strengths', 'reversing the weaknesses", 'investing in its opportunities' and 'overcoming its threats'(Economist, 2012).

- Results are valuable: There is a great deal of value that a SWOT analysis can provides an organization with. The idea of conducting a SWOT analysis is to identify strengths, weaknesses, opportunities and threats for an organization. The ideal outcome can be quite valuable for any organization, in order to maximize its strengths, minimize its weaknesses, take advantage of all the potential external opportunities, and overcoming any identified threats (McGraw, 2013).

- Innovative, creative, new ideas: A SWOT analysis can also help to create new and forward-thinking ideas for an organization. The analysis often will allow the organization to increase its awareness of potential disadvantages or threats, advantages, so they can be better respond more effectively in the future by making sound plans in order to counteract threats, and disadvantages when they surface(McGraw, 2013).
Disadvantages

- Only as good as the ideas presented: This is a major disadvantage and a factor of concern Here the organization can asks: Is the positives and ideas that actually come out of the SWOT analysis as good as the 'ideas' of the people carrying them out? In other words, a talented member of the organization may be able to generate more innovative sound, logical ideas and detailed strategy than that of a 'lesser' talented member(Economist, 2012).

- Subjectivity: At times, what is usually regarded as strength or a threat to an n organization strategic planner could also be negligible to another person who could have a polarized view of it being a weakness or opportunity, and with varying magnitudes of what particular strengths and threats are. To this end, as the SWOT analysis can be rather subjective, it tends to differ from person to person on the varying aspect, strength and category they believe it to be. As such, the ...