The PESTEL framework on an environmental scan highlights six critical factors for management in Scotland to consider when approaching the general business environment. It is common to conduct a PESTEL assessment before any serious decisions are made or any large projects are undertaken. The Department of Health, responsible for the NHS, public health and social care, was among the leaders of New Public Management in the UK (Day and Klien 2000: 238). According to Dr Bobby Mackie, At the time of writing (March 2013) Scotland’s public services are facing an unprecedented upheaval as a consequence of a range of influencing factors including political changes, the economic recession, changes in Scottish society and the impact of technology on public
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( Kazmi,2008).
The PESTEL analysis importance used by the National Health Service
Political factors - This include taxation policies, foreign trade regulations, political stability, labour laws, environmental laws, etc. Organizations need to adjust their marketing policy with current and anticipated future legislation. In the health service sector, political focus and pressure on health care will lead to cutbacks which is a loss to the business.
Economic factors - This include economic growth, inflation, currency exchange rates, etc. Economic factors can be of macro-economic and micro-economic factors.
Macro-economic factors deal with the demand in the economy, ie government’s interest rate, budget- expenditure, tax policies.
Micro-economic factors are about public expenditure. These factors are of people’s income and expenditure. Overall, economic factors impacts on organizations business and …show more content…
For example, consumer organizations are keener towards social factors, while political factors play a vital role in defense industry.
Conclusion
Environmental scanning can present numerous rewards for modern Health Service. It can contribute to an organizations renovation, one that constantly seeks new practises that could modify it’s place in the market. Furthermore environmental scanning assists in the improvement of planned procedure and policy. Therefore, developing an understanding of what is PESTEL analysis is useful for organizations for analyzing and understanding the ground realities of the environment they have to operate in.
Realizing what is PESTEL and knowing how to take this analysis into consideration, the organization can be in a better position to analyze the challenges, environment, factors, opportunities, restrictions and incentives it faces.
The crucial objective of environmental scanning is to assist organizations gain knowledge of the external environment in order to amplify its reaction and flexibility in decision-making
( Kazmi,2008).
The PESTEL analysis importance used by the National Health Service
Political factors - This include taxation policies, foreign trade regulations, political stability, labour laws, environmental laws, etc. Organizations need to adjust their marketing policy with current and anticipated future legislation. In the health service sector, political focus and pressure on health care will lead to cutbacks which is a loss to the business.
Economic factors - This include economic growth, inflation, currency exchange rates, etc. Economic factors can be of macro-economic and micro-economic factors.
Macro-economic factors deal with the demand in the economy, ie government’s interest rate, budget- expenditure, tax policies.
Micro-economic factors are about public expenditure. These factors are of people’s income and expenditure. Overall, economic factors impacts on organizations business and …show more content…
For example, consumer organizations are keener towards social factors, while political factors play a vital role in defense industry.
Conclusion
Environmental scanning can present numerous rewards for modern Health Service. It can contribute to an organizations renovation, one that constantly seeks new practises that could modify it’s place in the market. Furthermore environmental scanning assists in the improvement of planned procedure and policy. Therefore, developing an understanding of what is PESTEL analysis is useful for organizations for analyzing and understanding the ground realities of the environment they have to operate in.
Realizing what is PESTEL and knowing how to take this analysis into consideration, the organization can be in a better position to analyze the challenges, environment, factors, opportunities, restrictions and incentives it faces.
The crucial objective of environmental scanning is to assist organizations gain knowledge of the external environment in order to amplify its reaction and flexibility in decision-making