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analyzing the environment.

these groups of organization and individuals make up the


broad context of the general environment
1. government institutions
2. business organizations
3. educational institutions
4. religious institutions
5. research organizations and foundations and
6. individuals and consumers
organizations and individuals in the general environment, acting alone or in concert with
others, initiate and foster the macroenvironmental changes within society. these
organization and individuals generate legislative/political, economic, social/demographic,
technological, and competitive change that will in the long run, affect many different
industries (including health care) and may even directly affect individual organizations.
therefore, external organization engaged in their own processes and pursuing their own
missions and strategic goals with affect other industries, organizations and individuals.
in general environment, changes usually affect a number of different sectors of the
economy(industry environment)for example passage of the prescreption drug bill during
the george w. bush presidency affected a variety of organization as well as individuals
including inssurance companies, organizations representing the elderly and retirees,
similarly the early health care reform initiatives of the clinton administration to create a
national health care system would have affected virtually all institutions in the general
environment not just health care organization
the organization itself may be affected directly by the legislative/political, economic,
social/demographic, technological and competitive change initiated and fostered by
organizations in the general environment . in the agregrate, these alterations represent
the general direction of societal change that may affect the success or failure of any
organizations. therefore, an organization enganging in strategic management must try to
sort out the fundamental changes being generated in the external environment and
detect the major shift taking place. a shift in consumer attitudes and expectations about
health care is an example of a societal change that may affect the success or failure of
health care organization. demographic changes are somewhat more predictable and the
growing number of senior in the US population will impact every aspect of the
environment as well as health care environment. however, sometimes the demographic
of the general environment can provide misleading health care trends . typically as
information is accumulated and evaluated by the organization. it will be summarizes as
environmental issues affecting the industry or organizations. the identification and
evaluation of the issues affecting the general environment are important because the
issues will accelerate or retard changes taking place within the industry yet may affect
the organization directly as well.
"the components of the health care environment"
organization and individuals within the health care environment develop and employ new
technologies, deal with changing social and demographic issues address legislative and
political change, compete with other health care organization and participate in the
health care economy. therefore, strategic management should view the health care
environment with the intent of the understanding the nature of all these issues and
changes. forcasting attention on major change areas facilitates the early identification
and analysis of industry spesific environmental issues and trends that will affect the
organizations. however in today's environment a more focused service area competitor
analysis is typically required as well

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strategic managers must become strategic thinkers with the ability to evaluate the
changing environment, analyze data, question assumptions and develop new ideas.
additionally they must be able to develope and document a plan of action through
strategic planning. strategic planning in a decision-making and documentation process
that creates the stratgeic plans. once a strategic plan is developed, stratgeic managers
must manage the strategic momentum of the organization. as strategic managers
attempt to carry out the strategics plan. they evaluate its success, learn more about
what works and incorporate new strategic thinking. as indicated by double-headed arrow.
anyone element of the model may initiate a
re thinking of another element. for example planning the implementation may provide
new information that necessitates taking another look at strategy formulation. similary,
managing strategic momentum may provide new insight for implementation planning,
strategy formulation or the situational analysis. the distinction among the terms strategic
thinking, strategic planning and managing strategic momentum is important and all
these activities most occur in truly strategically managed organization. therefore each
stage of the model is explored in more depth.
the first stage depicted is strategic thingking and is the fundamental intelectual activity
strategic management. it has been observed that leaders, similar to great athelets must
simultaneously play the game and observe it as a whole. mired in a complex situation
the leader must rise above it to understand it. preserving distances may be the only way
to the press box to observe the game and see its broader context. thus strategic
managers must be able to keep perspective and see the big picture- not get lost in the
action. but to truly understand the big picture one must not only go to the process box
to observe the game, but must also have a quiet room, to periodically think about it to
undersatnd it and perhaps to change the strategy or players.
strategic thinking is an individual intellectual process, a mind set or method of intelectual
analysis that asks people to position themselves as leaders and see the big picture vision
and a sense of the future are inherent part of strategic thinking. strategic thinkers are
constantly reinventing the future - creating windows on the world of tommorrow strategic
thinkers draw upon the past, understand the present and envision an even better future.
strategic thinking requires a mind-set - a way of thinking or intellectual process that
accepts change, analyses the causes and outcomes of change and attempts to direct an
orgabiztion's future to capitalize on the changes. more specially strategic thinking :
acknowledges the reality of change
questions current assumptions and activities
builds on an understanding of a system
envision possible future
generates new ideas and
considers the organizational fit with the external environment

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