Introduction
Note: Each assessment in this course builds upon the work you have completed
in previous assessments. Therefore, you must complete the assessments in the
order in which they are presented.
Health care organizations have embraced strategic management and have
developed unique processes for their industry. Health care leaders have found
that strategic thinking, planning, and managing strategic momentum are
essential for coping with the health care industry’s dynamics. Strategic
management has become the single clearest demonstration of effective
leadership in health care organizations.

Health care organization leaders need to understand the external environment
in which they operate. Additionally, they need to anticipate and respond to the
significant shifts taking place within that environment. An organization engages
in service area competitor analysis to:

• Determine the geographic service area.
• Analyze the competitors within that service area for strengths and

vulnerabilities.
• Assess the impact of its strategic actions against specific competitors.
• Anticipate potential actions a competitor might make that would endanger

the organization’s market position.
Analyzing competitors assists organizations in identifying their competitive
advantage, the basis on which they are willing to compete with anyone.

Additionally, evaluating the organization’s internal environment is also critical.
This requires evaluating functional areas such as clinical operations, information
systems, marketing, clinical support, human resources, financial administration,
and others. In an internal environmental analysis, leaders carefully examine each
function or organizational subsystem and then develop and analyze a list of
strengths and weaknesses for each. This approach has been successful in some
cases; however, an internal environmental analysis alone does not adequately
address strategic issues.
The first assessment will focus on performing an environmental analysis of a
health care organization. An environmental analysis enables the organization to
identify current challenges and opportunities in preparation for future strategic

planning and goal identification. Insightful diagnosis of a company’s
external and internal environments is a prerequisite for managers to succeed in
crafting a strategy that is an excellent fit within the company’s operations.
These evaluations assist the organization in fostering alternative strategies and
business models that culminate in leadership choosing a specific strategy.

Preparation
For this assessment, you will perform an environmental analysis for a health care
organization. To accomplish this, you need to select a health care organization.
This may be an organization where you currently work, a place where you want
to work, or an organization about which you would like to learn more. You may
select one from any of these sectors, or you may select a sector not listed here
that directly reflects your career plans:

• Long-term care.
• Mid-sized facility.
• Behavioral health hospital.
• Large urban hospital.
• Small rural hospital.
• Freestanding facility.
• Telehealth organization.
• Government/military.
• Integrated delivery network (IDN).

Make your selection carefully. If you choose your own organization, it will be
easier to obtain the kind of information you need to complete the assessment.
If you do not select your own organization, you might want to consider a larger
health care provider (for example, Cigna, Kaiser Permanente, UnitedHealth
Group, or Blue Cross Blue Shield) that publishes the organization’s directional
strategy. You may also select a type of organization from the provided list, but
recognize you will still be expected to gather marketing information,
benchmark data, financial summaries, and other relevant information.

Scenario

Your manager is responsible for updating the organization’s strategic plan. She
has asked you to do some of the legwork and complete an environmental
analysis. This analysis will help your organization scan the external and internal
environments and identify current challenges and opportunities that will enable
it to prepare for the future.

Requirements
Analyze your selected organization’s external and internal environments.
You may use any contemporary environmental analysis tool included in the
strategic management planning process to conduct your analysis. Examples
include PESTLE analysis, Michael Porter’s 5 Forces model, and Levels of
Competition model.

Remember, your analysis must address both your selected organization’s
external and internal environments. In addition, your analysis must include all of
the elements listed below.

ENVIRONMENTAL ANALYSIS REQUIREMENTS

The requirements, outlined below, correspond to the grading criteria in the
Current Environmental Analysis Scoring Guide, so be sure to address each
point. Read the performance-level descriptions for each criterion to see how
your work will be assessed.

• Evaluate the organization’s directional strategy, as reflected in its vision,
mission, and values.

• Identify key industry structural features determining the forces governing
competition.

• Write a clear, concise, well-organized, professional, and generally error-free
environmental analysis that supports conclusions with relevant evidence.

• Follow current APA formatting and style guidelines for citations and
references.

ADDITIONAL REQUIREMENTS

• Length: 5–7 double-spaced, typed pages. The goal is to focus on applying new
concepts and gaining new insights. Keep it brief and substantive.

o Note: Feel free to construct images/diagrams, such as PESTL tables, to
summarize information where appropriate and to highlight key
information.

• Formatting: Narrative can be written in a memo or white paper format since
these are used in the health care workplace. Format citations according to
current APA style and formatting guidelines, including a works cited page.

• Number of sources: Use a minimum of six current, scholarly, and
authoritative sources to support your analysis.

• Scoring guide: Be sure to review this assessment’s scoring guide to
understand how your faculty member will evaluate your work.