Professional Documents
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Environment Analysis and Strategy
Environment Analysis and Strategy
Environment Analysis and Strategy
The Blue Eagles Medical Center (BEMC) is a family-owned and managed Level 1 general
hospital along the busy EDSA Balintawak area near the NLEX Toll Exit that has been operating
for more than 40 years already. It is currently being managed by Dr. Jason Salerno and Dr. Marie
Salerno who are siblings, together with their spouses and their parents. It offers a wide array of
services such as MRI, a dialysis and endoscopy unit, an eye center, a heart station, an orthopedic
The BEMC is fortunate to have loyal managers and employees who treat each other and
their patients like family. Jason, the one who manages the company’s staff always encourages the
employees to voice out their ideas regarding the facility’s operations. The culture of BEMC has
mainly stayed the same but the rapid changes in the external environment are having a negative
impact on the organization’s competitive position in the market. There are governmental
regulations and new building codes that require them to spend significantly on structural
updates. This is despite the pressure of partner health maintenance organizations (HMOs) to
reduce expenses due to the proposed universal health coverage of the government.
The organization faces several problems such as poor financial performance in the
months of May to June and October to December. BEMC has taken steps to upgrade their
laboratory facilities recently but this is not enough to attract clients and keep current ones. They
deal with all these problems on top of the current pandemic which affected hospital operations
since the start of the year. The organization also faces tough competition with the new satellite
clinic of a known medical facility opening in a nearby mall. One of the major hospital chains
known for its excellent service and facilities is also considering opening a facility nearby.
However, there are also plans to demolish smaller hospitals in the area to be replaced by
condominiums. It is expected that the tenants of these condominiums would seek healthcare
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services in the form of wellness and exercise facilities. There are also plans to open a new MRT
station nearby which may make going to BEMC a more convenient experience.
The BEMC is guided by the following vision, mission, and values statements:
Vision
Drawing strength from our rich history, we will be the best, most admired, and innovative
health services institution, partnering with our customers, employees, and shareholders in
Mission
Our mission is to create a healthcare organization that sets the standard of excellence in
the treatment of diseases and the promotion of wellness. We deliver quality healthcare in
To our clients, we are committed to the creation of health where people receive
individualized and quality care that enables them to regain hope in a supportive, caring
environment.
environment that encourages and supports both professional and personal growth that
professionals, and payers within the communities we serve through the delivery of high
quality specialty health services at affordable costs while always putting the patient first.
We will strive in all that we do to make BEMC synonymous with excellent care,
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Core Value and Guiding Principles
Excellence: Strive to achieve the best in everything we do. Never stop learning and working
to improve our skills, programs and services. Provide consistent quality and safety for
Integrity: Inspiring trust through open communications, and be consistent in doing what
serve. No matter where in the organization we work, we remember always that caring for
the individual patient and his/her family is at the heart of our mission.
Innovation: Seek new approaches in service and the delivery of care with vitality and
Teamwork: We recognize that we can only achieve our mission and vision by working
Objectives
The key objective is to formulate a business strategy that will guide BEMC in achieving a
better competitive position in the market. In order to do this, this paper must assess the internal
and external environment of the organization. The data gathered from the assessment will be
Blue Eagles Medical Center is facing numerous challenges in its internal and external
environment. These challenges are hindering the hospital from achieving its established vision
and mission. In this analysis, the main question that I intend to answer is: After a thorough
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assessment of its internal and external environment, how can BEMC improve its business
In analyzing this case, the PESTLE analysis, the PRIMEFACT checklist, and the SWOT
analysis will be used as frameworks to assess the organization and the challenges it is facing.
PESTLE Analysis
The PESTLE Analysis will be used to assess the key features of the external environment
Political
regulations that have an impact on the organization. In BECM’s case, this refers to the
government's plans to provide universal health coverage for all citizens. Because of this, BECM
faces pressure from their partner health maintenance organizations (HMOs) to implement cost
n.d.).
Economic
The economic factor that BEMC faces is the usual decrease in revenue during the months
of May to June and October to December. Because of this, the employees of the organization face
Social
In the social aspect, the development of expensive condominiums in the vicinity will
result in demographic changes that will potentially affect the market demand. Specifically BEMC
expects the new population to seek wellness and exercise facilities. There are also lifestyle
changes to consider with the current pandemic since people will be hesitant to leave their
Technological
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In terms of technology, the laboratory facilities of BEMC has recently been upgraded
which resulted in more patients coming in. However, it was noted that this is not enough to
Legal
For the legal aspect of the external environment, BEMC faces the challenge of following
the health sanitation ordinance and new building code that have recently required the
Environmental
For this case, environmental factors such as ethical sourcing, tax practices, and pollution
were not discussed. This may suggest that their current operational processes and culture have
PRIMEFACT Checklist
In assessing the internal environment of BEMC, the PRIMEFACT checklist will be used to
identify the characteristics, strengths, and weaknesses of the organization (Strategic Planning,
2016).
People
The people working in BEMC are loyal employees, many of whom are each other’s
relatives. The whole business is managed by the Salerno family. The siblings and medical student
graduates, Jason and Marie Salerno, have been running the family business. Marie handles the
financial side of the business while Jason manages the company’s staff. Their spouses also
occupy managerial positions in BEMC. Marie’s husband manages the Marketing Department
while Jason’s wife is in the Ancillary Department. Their family-orientedness also extends to how
Reputation
BEMC has a reputation for being a favorite healthcare provider of families for more than
two generations. The hospital is a known landmark for patients all over Quezon City and areas in
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the vicinity. It is also expected by the Salerno family to retain its reputation for being a reliable
Intellectual Property
Particular copyright, trademarks, or design rights were not mentioned in the case.
However, BEMC can capitalize on its reputation of being the family’s hospital of choice for 40
Market Information
The change in the market demand that BEMC faces is the usual decrease in revenue
during the months of May to June and October to December. They also have market information
that smaller hospitals in the area will be demolished to make way for condominiums. Thus,
influx of condominium tenants may shift the market demand to wellness and exercise facilities.
The closing down of smaller hospitals may also mean that there will be an increase in
Ethos
The ethos in BEMC highly values loyalty and family-orientedness. The employees are
very loyal that many of them are actually each other’s relatives. The managers of the
organization treat and refer to the patients as family. The organization structure is hierarchical
but most of the managers and employees regard each other as family. Jason holds weekly staff
meetings where employees are encouraged to voice their ideas about any aspects of the facility’s
operations. Photos of workers and customers line the walls of the managers’ office, and stories
about the facility and its people abound, including confinements of celebrity and political clients.
Finances
Investors may hesitate to establish financial partnerships with BEMC because it only has
a short amount of time to maximize its revenue before it faces poor financial performance for
five months every year. However, BEMC has been operating for 40 years with a well-established
reputation among multiple generations. Even though the organization is currently facing several
challenges, especially in its external environment, investors may consider that it lasted this long
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because it is a profitable venture. It already has an established market of families who depend
on BEMC for their medical services. Therefore, investors may look beyond the current financial
performance of the organization and see the potential financial gain in the future.
It is also in BECM’s core values and principles to integrate excellence with financial
stewardship or the care, conservancy, planning, attention, upkeep, and management of financial
Agility
of clients in the market, BEMC has room for improvement. The internal environment of the
organization has remained mostly unchanged for the past 40 years. They may have heavily
relied on consistency in their operations and their reputation. This can be counterproductive for
the organization because they are not able to operate and provide services according to the
rapidly changing external environment, such as regarding the needs of their potential
customers. This may result in clients going to other healthcare providers instead. Hence, without
Collaborators
opportunity to do so if they choose to respond to the market demand for wellness and exercise
facilities. For example, their existing orthopaedic and rehabilitation center may collaborate with
gym companies to design the wellness programs the clients are seeking.
Talents
The skill and quality of service that the employees of the company develops may need
further training and development. This may be a contributing factor to their poor financial
performance. Having well-trained healthcare professionals and staff may also give them a
SWOT Analysis
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In this analysis, the internal factors or the relative strengths and weaknesses of BEMC,
together with the external factors, or the opportunities and threats they face, will be discussed.
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Strengths
BEMC has a reputation for being a reliable healthcare provider to multiple generations
of families in Metro Manila. The facility offers a wide array of services, making them a
“one-stop-shop” for the clients’ medical needs. The facility is a known landmark and is located
along a busy area where they are easily visible to their existing and potential clients.
The employees are hardworking and very loyal to the company. The culture in the
strength especially in collectivistic cultures such as in the Philippines where clients may be more
comfortable when regarded and cared for as family members when treated by healthcare
professionals.
Weaknesses
The highly loyal and family-oriented organizational culture may not align with the
changes of the external environment, especially when practiced to the extreme. A highly
groupthink that will hinder employees from giving out constructive criticisms that may improve
operational processes and the competitive position of the organization in the market.
The organization also experiences poor financial performance for a huge part of the year
(May to June, October to December) which gives employees a short amount of time to
Opportunities
The Salernos also recently learned that some of the smaller hospitals in the area are
going to be torn down to make way for the development of expensive rows of condominiums.
People who will rent the condominiums are likely to look for wellness and exercise facilities.
This is an opportunity for BEMC to collaborate with gym facilities or rehabilitation centers to
design wellness and exercise programs that the future market may look for. In expanding their
facilities to accommodate these new programs, they may also utilize the increase in job
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unemployment due to the closure of smaller hospitals. They may hire qualified displaced
workers into the company if their labor demand forecasts show that they will need extra
Dr. Jason Selarno, the person managing the facility’s staff is also about to complete his
MBA studies and is looking forward to applying his knowledge to improving the management of
BEMC and hurdling the competition. There will also be a new MRT station constructed nearby
which may lead to more foot traffic and visibility for the facility. This will further improve the
accessibility of BEMC which may help it compete with the convenience of going to the new
satellite office of a popular competitor. This may also be an opportunity to improve their
promotional materials in order to maximize the foot traffic that can drive more clients their way.
Threats
The organization faces several threats such as the presence of a new satellite clinic of a
known competitor in a nearby mall. BEMC would have to compete with the new clinic’s
accessibility and convenience for clients. Another competitor that may pose a threat to the
position of BEMC in the market is a major hospital chain considering the construction of a
facility in a nearby real estate. BEMC would have to compete with this company’s reputation for
high-end accommodations, state of the art healthcare facilities, and great customer service. This
means additional competition for BEMC other than the two other ambulatory healthcare
facilities that already exist in its vicinity. Adding further to the list of threats the organization
faces is the current pandemic that has affected how BEMC has operated since the first quarter of
the year.
Recommendations
The vision established by the organization to “be the best, most admired, and innovative
health services institution” may be too vague. It is recommended for BEMC to hold a meeting
with its stakeholders to assess their vision-mission-values statements and check if the
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organization still aligns with them. Necessary changes can then be made and organizational
Given that the high family-orientedness of the organization may compromise their
objectivity in assessing their internal environment, it may be recommended for BEMC to hire an
expert or outside organization to conduct the assessment. Since BEMC appears to have
problems responding to the external environment, they may be more proactive by conducting
analysis on the current and potential needs of the market. For example, they may conduct
surveys on what exactly the condominium tenants are seeking for in their wellness and exercise
facilities. They may then adjust their services accordingly before any of their competitors. They
may also identify which organizations may be most advantageous for the company to
collaborate with.
It is also important to identify the factors contributing to the poor financial performance
of the organization during certain months so that these may be addressed. If the problem has to
do with the quality of the skills, programs, and services they offer, the company may design
appropriate training programs to help resolve issues in these aspects and align with their core
value of excellence. Training may also improve the quality of service the organization offers and
BEMC’s current workforce must also align with their organizational goals. For example,
since the organization intends to innovate by seeking new approaches in how they deliver
healthcare, these may require forecasting the labor supply they would need. Hence, they can
prepare by training current employees or recruiting qualified people to effectively carry out
those changes. In BEMC’s case, they may hire displaced workers from the smaller hospitals that
closed down.
Jason Selarno’s recently obtained MBA degree may be an opportunity to promote him to
a higher position so that he can influence a wider scope of services and people as he tries to
improve the quality of service, financial status, and the company's position in the market. Since
BEMC faces tough competition with other hospitals, the organization may also invest in their
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marketing so they can increase visibility versus their competitors. They may also make use of
the new MRT station that will be constructed nearby as a place for their promotional materials
The organization may also benefit in realigning their business strategy to be more
aggressive with their online presence. Since people are heavily relying on online information
during the pandemic, the organization must ensure that they have good social media managers,
a well-designed website, and accounts in major social networking sites so that they may connect
better with the external environment. They may use online means as a cost-effective way of
distributing promotional materials and as a way to answer inquiries and collect feedback from
clients. They may also innovate on their database systems and online appointment system.
During the current health crisis, people are hesitant to leave their homes and would avoid
hospitals due to health and safety risks. Hence it is important to have an effective way of setting
up appointments online or via phone call to make the client feel more safe and to also follow
social distancing guidelines within the facility. Test results may also be provided online so that
the client has an option not to go back to the facility just to pick them up. Strategically increasing
the convenience of the processes for the clients may give the organization a competitive edge
versus other hospitals. The hospital may also invest in improving their telemedicine systems to
As these changes are being implemented, regular evaluations are necessary to assess if
these changes are contributing positively to meeting the established organization goals. BEMC
Conclusion
The case of BEMC shows the importance of analyzing both the internal and external
environment of the company to reach organizational success. BEMC appears to have neglected
the changes in its external environment and hence was not able to respond appropriately to the
market’s demands. The internal and external environment of the company are interrelated and
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issues in one aspect may also affect the other aspect, and ultimately, the entire organization.
Hence, the organization must analyze its external environment and continually assess what may
be improved in its internal environment so they can adjust accordingly and meet organizational
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Strategic Planning: Internal Analysis an Online course with David Parrish. (2016). YouTube.
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