External and Internal Environmental Analysis
External and Internal Environmental Analysis “Environmental scanning is the internal communication of external information about issues that may potentially influence an organization 's decision-making process” (Albright, 2004, p. 34). For organizations like Fresenius Medical Care, a worldwide company, the awareness of external environmental factors is vital to maintain competitive on the dialysis industry. Even though there are multiple external factors to analyze, in recent years the government works as an element of change on the medical industry with the biggest health reform in United States history. The health reform will affect the way Fresenius makes business because the company needs to adapt the new payments-per-service coverage and sustain quality of service as well as profitability.
External Environmental Scan
Remote Environment
“The remote environment comprises five factors that originate beyond, and usually irrespective of, any single firm’s operating situation: economic, social, political, technological, and ecological factors” (Pearce II & Robinson, 2012, p. 87). The organization has no control or regulation over these factors. The remotes environmental factors influence the way Fresenius Medical Care offers dialysis services, especially the economic and political factors.
The economic factor describes the organization awareness of the “general availability of credit, the level of disposable income, and the propensity of people to spend” (Pearce II & Robinson, 2012, p. 87). Fresenius target market is end-stage-renal-disease patients with health care insurance. The economic factor will affect Fresenius target and the ability to pay for dialysis treatment and medications.
The “political factors define the legal and regulatory parameters within which firms must operate” (Pearce II & Robinson, 2012, p. 90). A good example of political factor is the Obama Care Law or Patient Protection and Affordable Care Act. The president Barak Obama signs the
External Environmental Scan
Remote Environment
“The remote environment comprises five factors that originate beyond, and usually irrespective of, any single firm’s operating situation: economic, social, political, technological, and ecological factors” (Pearce II & Robinson, 2012, p. 87). The organization has no control or regulation over these factors. The remotes environmental factors influence the way Fresenius Medical Care offers dialysis services, especially the economic and political factors.
The economic factor describes the organization awareness of the “general availability of credit, the level of disposable income, and the propensity of people to spend” (Pearce II & Robinson, 2012, p. 87). Fresenius target market is end-stage-renal-disease patients with health care insurance. The economic factor will affect Fresenius target and the ability to pay for dialysis treatment and medications.
The “political factors define the legal and regulatory parameters within which firms must operate” (Pearce II & Robinson, 2012, p. 90). A good example of political factor is the Obama Care Law or Patient Protection and Affordable Care Act. The president Barak Obama signs the
References: Albright, K. S. (2004, May/June). Environmental scanning: radar for success. Information Management, 38(3), 38. Retrieved from http://www.arma.org/ bookstore/files/Albright.pdf Fresenius medical care. (n.d.). Retrieved from http://jobs.fmcna.com/ Olsen, E. (2013). About.com. Retrieved from http://homebusiness.about.com/od/growing/a/comp_advantage.htm Pearce II, J. A., & Robinson, R. B. (2012). Strategic Management (13th ed.). New York, NY: McGraw-Hill Higher Education.