How does the external environment affect strategic management in the health care industry?
How might changes in the external environment alter strategic initiatives?
How might factors of the external environment shape a consensus or create conflict between the missions, objectives, and goals of departments in an organization?
How do conflicting departmental goals and competing budgetary interests affect organizational strategic management?
What role does the external environment play in determining resource allocation?
Typically external influences come in a few forms: employee groups (e.g. doctors' associations), patient advocacy groups, which target patient benefits and better treatment, regulatory agencies (typically governmental, e.g. Ministry of Health) and private donors, who sometimes specify where donated resources are allocated, within reason. Some common ones that should not be forgotten are also suppliers, which are the bottleneck of many issues in health care delivery, especially in the realm of pharmaceuticals and radioisotopes.
Since all of these groups typically have various priorities they consider to be of top priority, management is in the tough position to figure out which of those priorities is indeed, for the organization, a top priority. Simply put, management has to triage the needs and wants of all of these external influences, along with internal influences, and allocate the proper resources according to their triage priority.
The influence of external forces isn't necessarily about monetary resource allocation, although it often is. In many cases, regulatory agencies also dictate protocols for a health care organization to follow, and protocols are often reviewed and advocated for change ...
The solution discusses external forces in nursing and healthcare organizations.