External Environmental Categories

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Basic to external environment analysis, Mosley is clear to indicatethat an organization’s external environment is best understood whenthe breakdown of basic categories is enhanced. Acting on this ground,the identified categories of concern are political and economicclassifications. In the government section, various subsections areformulated with the sole aim of giving a more comprehensive pictureregarding the overall processes. For clarity, a reflection of thegovernment section will analyze the government’s vigor.Essentially, the government vigor role encompasses of regulatoryabilities that affect the process outcomes. Based on the adoptedregulatory frameworks, different aspects increases, decreases, orremains steady. That is, the application of antitrust acts to mergersand acquisition affects the competitive behavior (Moseley, 2009).Therefore, acting on this perception, it is quite clear that anincrease in regulatory roles reduces the competitive advantage andthe venture capital deals remains steady which leads to speed up inthe drug approval process.

Secondly, as per the external economic categorization, the type ofdata processed in this section covers economic functions that inreturn affects the firm’s strategic planning in diverse manners. Achance to understand how economic assessment affects a company’sstrategizing process a focus on inflation rates seems like the aptapproach for this comprehension. The purchasing power in thepertinent organization has succinct influences. Such a sentiment isechoed on the notion that reduced purchasing power affects thestrategic thinking of the firm (Moseley, 2009). Thus, an increase ininput prices, such as employees’ salaries, leads to reducedconsumer discretionary income to spend on the purchase since theclient’s salary is constant.

Mp Shah Hospital in Burhani is an exceptional health center becauseof its service excellence. Such a position is identified on thegrounds that the facility serves approximately one thousandin-patients and the obtained profits from its services arecommendable. Alternatively, other than financial indicators, thefacility’s success is clear with the excellent customer service andtreatment procedures. The Hospital is likely to be affected indifferent aspects based on the variations in government regulatoryprocess. That is, based on the eight different possible effects,pertaining regulatory and venture capital is increasing, decreasingor remaining steady. Constant government vigor and increased capitaldeals are expected to increase competitive advantage, and the sameapplies for all ventures that have increased capital deals outcomesirrespective of the government vigor (Moseley, 2009). Alternatively,any venture that leads to decreased capital deals will reduce thecompetitive advantage regardless of the government regulatoryprocess.


Moseley,G. B. (2009). Managing health care business strategy. Sudbury,Mass: Jones and Bartlett.