External environment assessment - Assignment Example

External Environment Assessment Background of the Company Rady Children’s Hospitality Foundation is an organization whose objective is to support the children in various philanthropic activities and to provide them with the necessary healthcare facilities. The organization is also aimed at protecting the well being of the children as well as promoting the awareness about the activities of the organization to the community. This is the hospital with the sole intention providing healthcare to the children.

The company is based mainly in the San Diego area. It is also the only trauma centre which is specialized towards the children of the place (Rady Children’s Hospitality Foundation, 2010). It is also considered to be one of the research centers of the areas which also contribute in promoting literacy and awareness among the children. External Assessment of the Environmental Forces In order to make an external assessment a macroeconomic analysis of the external environment is essential for the study.

The entire external analysis has been conducted under the following five frameworks as discussed below. Analysis of the Demographic, Healthcare Status and Economic conditions The hospital is the sole healthcare services provider to the area of San Diego. Thus the organization caters to almost 80% of the children who live in the San Diego Area. The city of San Diego has a population of more than 1.3 million. The area of San Diego is about 372.1 square miles in area. It is one of the populous cities of the United States.

There are both urban and rural parts of San Diego. People of different nationality comprise of the population of San Diego and they are of various ethnicities like Afro –American, Asian, or the white. A large section of the population of the city can be considered to be homeless and children comprise more than 30% of the population of San Diego. On the other hand the US bureau of Census reported that about 24% of the population of San Diego is less than 18 years of age. The median income of the households of San Diego would be about $66, 715.

Though the city is considered to be one of the richest cities of the United States there is a lot of inequality in the distribution of income in the city (Palmer and Hartley, 2012). This is reflected by the fact that 14 % of the population of San Diego fall in the BPL category. A large number of the children also suffer from life taking diseases. State of Healthcare Delivery In the county of United States, most of the people are insured with the proper healthcare faculties. The new system of health insurance that has been incorporated under the regime of Obama ensures that the healthcare insurance is borne by the employers.

However, in such cases the healthcare of the children often remains ignored. The general facilities of healthcare in San Diego is quite expensive and hence the popularity of such an organization (Moschis, 1990). The major dynamics or the parameters included in the review system include the following: 1. Rising cost of care 2. Higher acute patients 3. Use of technology 4. Academic pressures These are only few of the parameters mentioned. Analysis of the Primary Market Research A primary market research has been conducted to understand the perception of the consumers about the organization Rady Children’s Hospitality Foundation.

A questionnaire survey has been conducted with four open ended questions which has been administered on 3 parents of children who are admitted to the hospital, 3 common people from the local malls and one of the volunteers working for the organization. The results have been recorded and analyzed subsequently (Chisnall, 1997). It has been found from the survey that being only organization of its kind there is a lot of popularity among the local people of San Diego. The local people are also quite dependent on the organization for the healthcare of the children.

It has also been found that the organization utilizes the most updated and advanced technology for the treatment of the children (Assael, 1992). As a result the rate of recovery is also quite high because of the support of the best doctors and processes. Analysis of the Competitors The organization is the one of the popular organizations providing healthcare services to the children community of San Diego. The other major players include Sharp Healthcare, the Chadwick Centre for Children and Families.

Therefore there is lack of threat from the competitors in the entire area (Kotler, 2012). The company has been able to make a very good brand image over time and therefore there is high entry barrier for the new entrants in the industry. Along with that the bargaining power of the suppliers as well as the patients in this case is extremely low. Opportunities Various type of facilities that are available in this particular healthcare service provider which includes the treatment for Cancer, Orthopedics, Neurology, Nephrology, Pulmonology and the other disciplines of medicine which are considered to be severe compared to the general ailments and would require intensive care for the children who are involved.

Therefore the organization has facilities across all the departments. The organization can expand to the other cities of the US other than San Diego. The rise in the need for the healthcare is increasing among the old people and hence they can provide services to the senior citizens of the country (Brooks and Weatherston, 1997). The advancement of the technology and medicines in the context of healthcare research would help in the treatment and fast recovery of the children Increase in the awareness about the need for healthcare facilities and the multinational companies engaging more and more in the CSR activities would allow such organizations to grow (Checkoway and Doyle, 1980).

Threats A new organization may come up which may prove to the more successful The change in the healthcare insurance policies in the country might force the people toward those organizations which would be enlisted by the insurance companies (Steinberg and Baxter, 1998). Since the organization is mainly run by the donations and grants if the flow of funds is reduced it would be difficult to run the organization. Any new policy on part of the government or changes on the legal and the regulatory framework of the country might pose a threat for the survival or the expansion of the organization (Godbout, 1981).

The changes in the demographic patterns and the rapid urbanization process may also act as a threat. References Assael, H. (1992). Consumer Behaviour and Marketing Action. USA: PWS-Kent. Brooks, I and Weatherston, J. (1997). The Business Environment: Challenges and Changes. London: Prentice Hall. Checkoway, B., and Doyle, M. (1980). “Community organizing lessons for health care consumers.” Journal of Health Politics, Policy and Law, Vol. 5(2), pp. 13–26. Chisnall, P.M. (1997). Marketing Research.

London: McGraw-Hill Godbout, J. T. (1981). “Is consumer control possible in health care services?” International Journal of Health Services, Vol. 11(1), pp. 151–167. Kotler, P. (2012). Social Marketing and Public Health. New York: Oxford University Press. Moschis, G.P. (1990). Consumer Socialisation. USA: Lexington Books Heath. Palmer, A. and Hartley, B. (2012). The Business Environment. Maidenhead: McGraw-Hill Education. Rady Children’s Hospitality Foundation, (2010). About Us: Mission and Values.

Retrieved from http://www.helpsdkids.org/page.aspx?pid=381 Steinberg, C.R. and Baxter, R. (1998). Accountable communities: How norms and values affect health system change. Health Affairs, Vol. 17(4), pp. 149–157. Appendix Questionnaire 1. How popular is the organization among the common people of San Diego? 2. How far are the medical facilities of the organization updated with the latest technology? 3. What is the rate of recovery for the patients that go to Rady Children’s Hospitality Foundation for their treatment? 4. How do the staffs support the children in the entire process of their treatment