Description
For this assignment you will compare and contrast, as well as assess the usefulness of SWOT and PEST analyses, which are frequently used by healthcare organizations in their strategic planning efforts. Your paper is expected to briefly describe each tool and explain how each is used in formulating strategy. In addition, you must describe the strengths, limitations, and challenges of each.
The paper should be well-written and meet the following requirements:
- 3-4 pages in length (excluding title and reference pages),
- Formatted according to the CSU-Global Guide to Writing and APA (Links to an external site.), and
- Include at least three current references from peer-reviewed articles. The CSU-Global Library is a good place to find peer-reviewed articles.
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Explanation & Answer
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Running head: PEST & SWOT ANALYSIS IN HEALTHCARE
SWOT and PEST Analysis
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PEST & SWOT ANALYSIS IN HEALTHCARE
PEST & SWOT Analysis in Healthcare
Healthcare analysis requires both PEST and SWOT tools. Healthcare organizations
which are in the middle of strategic planning should consider using PEST analysis. The reason
for this is that the best strategies which position an organization for the best chance of success
for a specific period get developed for the most part depending on the external factors where an
organization operates (Ginter et al., 2018). PEST analysis refers to the framework where the
healthcare organizations apply in analyzing events as well as trends in the 4 aspects, which
significantly impact performance. These areas are the "Political, Economic, Sociocultural, and
Technological factors." This tool's other variation, which involves additional insights, includes
the Environmental and legal factors. Notably, healthcare organizations consider PEST analysis
as a vital tool for strategic planning. Additionally, the SWOT analysis also accompanies it.
SWOT assesses the internal factors related to the performance of an organization.
Primarily, the healthcare industry relies on the evaluation of existing and also incoming
legislation, advances in technology, changes in the society, and economy. One of the crucial
elements is political stability. It is a critical aspect since any change in governments directly
impacts healthcare as well as people generally. Healthcare industry is increasingly growing in
any nation’s economic system (Ginter et al., 2018). This industry needs to understand the
external factors affecting it. PEST analysis of the healthcare organizations gives informed
knowledge on the existing and future changes in the “political, economic, social, and
technological factors” which impact the industry. One of the components of the PEST
framework is political factors. It affects the healthcare organizations and their impact in the...