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- Category: Uncategorised
- Published on Monday, 11 April 2016 07:27
- Written by Super User
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An industry has to exist in a business environment. The environment can be defined as the events and activities that influence the way the business operates. The impact can be positive or negative. The environment can be categorized as the internal and external environment. A business has to exist in these two environments for it to operate effectively. The purpose of this paper is to analyze and evaluate the internal and external business environment of a Laboratory Corporation of America Holdings, a service provider company in the United States. It deals with the provision of laboratory services such as medical testing, patient diagnosis and monitoring of treatment. Advanced services such as oncology, reproductive health, cytogenetic, essay writing service and paternity testing are also offered. The corporation has approximately thirty-nine primary laboratories and about 1780 patient service centers (Commission, 2014). It has spread to many countries including Singapore, Japan, United Kingdom and the United Arab Emirates. The laboratory can handle close to five hundred thousand patient specimens per day. Concerning personnel, it has close to thirty-six thousand employees worldwide (Commission, 2014). It is evident that, with the massive and rapid growth of the corporation to compete globally, the laboratory is influenced by internal and external environments that impact the business positively or negatively.
Segments of the general environment
Two environments influence the corporation; the internal and external. Internal environment refers to the factors that exist within the organization itself. They are easier to predict and control than the external factors. The management and organizational direction can be considered by looking at the leadership style, communication systems, the way the employees are valued and analyzing the mission and vision statements of the Corporation (Calantone, 2006). A Board of Directors manages Laboratory Corporation of America Holdings. Proper communication from the top management to the employees and the subordinate is ensured. This has led to the growth of the corporation and hence the industry. The corporation has a mission of being a trusted knowledge partner for stakeholders leading to growth in the business (Commission, 2014). The employees are motivated, hardworking and have the high morale to do their job. They employ competent and talented employees with a high sense of morality, values, and behavior. They have been able to employ more than thirty-six thousand employees and retain them. The employees provide the human resource regarding capability and skills. They are involved in providing quality services that have marketed the corporation globally. The culture of the corporation is also maintained. It has assisted in shaping the management behavior and contributed greatly to the success of the corporation. It has acted as the foundation for the corporation. For any business to operate, finances should be there. The laboratory acquired Covance in February 2015 providing capital for investments (Commission, 2014).
The external environment encompasses factors outside the business. They are harder to control than internal factors. They are unpredictable and, therefore, hard to prepare strategically for them making them more dangerous (Calantone, 2006). Examples include changes in the economy. It can be social, demographically and economically. The laboratory has to know the values, attitudes and beliefs of the target audience. For instance, in the case of oncology testing, the corporation has to find the beliefs and attitudes the patients have towards cancer. Do they belief it to be a curse or as a disease that can affect any person? Lack of understanding of the socio-economic environment of the people may impact the business negatively since it would not act in the interest of the target people. Competition is another threat to the corporation. It is not the only corporation offering laboratory services in the United States. It faces competition and therefore, it has to work to see it offers quality, efficient and affordable services to the customers. Political factors and government regulations also influence the corporation. The government may increase taxation and impose regulations and trade policies that may cost the corporation. The industry itself may be impacted by the technological and ethical considerations of the laboratory. The laboratory deals with advanced test analysis like cytogenetic and, therefore; it employs the use of high technology. Since it is a global corporation, the ethical issues are followed by the later (Commission, 2014).
Forces of competition
Competition is experienced in every industry. For profits and success to be noticed, the businesses should have healthy competition. Porter (2008) outlined five forces of competition. They include supplier power. This refers to the assessment of the way the suppliers’ increases the prices and it is affected by the number of suppliers and the product uniqueness. Buyer power is another force that assesses the way buyers drive prices down. It is affected by the number of customers and the importance of each buyer to the corporation. Competition rivalry is the third force followed by the threat of substitution and lastly the threat of new entry to the industry (Porter, 2008).
The two most significant forces in the corporation are the competition rivalry and threat to the new entry. Competition is mandatory in every industry because no business can operate in isolation. Other competitors have come into the market, some of them offer same services, that is laboratory testing. Clinical laboratory business is quite competitive. Other hospitals, independent and physician-owned laboratories have emerged to compete with LH Corporation (Porter, 2008). To counteract the competition, the corporation has ensured employment of qualified and competent employees. It has ensured continued offering of quality and affordable laboratory services. It has operated within the limits as defined by the government regulations. The use of modern technology in their operations has led to fast and efficiency in the production. The ultimate result is reduced competition among laboratories offering similar services.
The second force is the threat of new entry. With the expected growth in the industry, new firms have to enter the market. Laboratory Corporation is a profitable market and thus attracts new firms. New entrants erode the profitability of the industry (Porter, 2008). The industry has to have a protective barrier that makes it difficult for other firms to join the market and cause competition. LH holdings have addressed this by having patents to some services such as cytogenetic testing. It is a large company, and, therefore, it enjoys economies of scale. It may get support from the government. This has caused a decrease in profitability to a competitive level (Commission, 2014).
What the company should do to improve the forces shortly
The company should improve its efficiency in offering laboratory services to incorporate technological capabilities in view to improve patient and doctor experiences. It should get involved in scientific innovation and research. This will offer new methods of service delivery. It will enhance the study and research of key issues in the health sector such as the human genome. Research is a growing field, and support through funding should be encouraged. It results in new methods of doing things and improvement of the existing ways. The corporation should focus on the improvement of technology in service delivery. Full automation of the laboratory should be done. Electronic data exchange should be used with fully equipped Health Information Management Systems. The use of copyrights and patents will protect their services. No competing firm will copy their services and thus reduced entry to the market. With the above mentioned, competition will be reduced since the unfavorable competitors will have no option other than to leave the market.
Threats and opportunities
The company is faced with threats. For instance, the existing government policies and regulations such as taxation affect the cost of production as well as usage and delivery of the laboratory services. The corporation is likely to face financial damages from the Medicare and Medicaid services it is offering (Commission, 2014). The laboratory has to adhere to the environmental safety laws that call for a safe and clean, uncontaminated environment and place of operation. It is also faced with the threat of competition. The most significant threat is the financial damages. This is because the corporation has volunteered to offer services to the older patients and the low- income patients (Commission, 2014). This might have negative implication especially when the government does not offer financial support. The elderly and the poor are the majority population and giving free services to them may be costly.
The corporation has many opportunities. For instance, it has acquired a Covance enabling it to trade with large pharmaceutical companies. The Medicare program to provide health care service to people aged sixty-five and above is also a good opportunity. Medicaid program for the less privileged and the poor will also build the corporation image. It is also linking up with insurers to ensure that patients have medical covers and medical schemes (Commission, 2014). The most significant of all is the acquisition of insurance policies. The patients can get medical assistance. The poor patients also get billing services that exempt them from paying their bills (Commission, 2014). It has led to property protection and compensation in case of damage. The insurance bodies come in to pay in case of accidents and theft.
Strength and weakness
Strengths refer to the factors that allow the corporation to work more effectively than its competing firms in the same industry. LH Corporation stands out well in having the technical knowledge. It does well in the provision of laboratory services using modern technology and competent employees with experience and medical knowledge (Commission, 2014). Does It look at what it is best in? What services does it offer best? If the laboratory is best in offering cancer services, it should concentrate more on it. This makes it have a benefit over its competitors making it a world class laboratory. It should take an advantage of it being already an established laboratory offering high technological services such as human genome typing.
Weaknesses, on the other hand, describe the areas that the business has to improve. The most significant weakness of LH Corporation is the higher costs of service delivery as compared to the other laboratories. Their services are quality but expensive (Commission, 2014). Not many people can afford to pay thus a lower productivity may be noticed. The company should focus on reducing their prices. They may lower the prices to a level where they are making the profit but not exploiting the patients. They may get government subsidies and incentives that may cut on the production costs. Reduced production cost leads to reduced service delivery costs.
The company's resources, capabilities and core competencies
The company has many resources. The physical resources include the laboratory premises and machines used for the testing procedures. Financial resources can be analyzed as the capital, cash, the debtors and the creditors (Commission, 2014). The suppliers of different laboratory reagents and machines are also classified under the financial resources. The employees form part of the human resource. The patient database and patents are an important intellectual capital resource.
Capabilities refer to the laboratory’s ability to turn and exploit its resources and convert them into outputs. The laboratory is involved in sales and marketing of patient services in different markets. The market segments are gynecology, primary care and oncology among others (Commission, 2014). Apart from marketing capabilities, manufacturing and resources management capabilities are also involved. The employees have the ability to use their knowledge and the available resources to provide services to the people.
Core competencies refer to the knowledge, skills and experiences that determine how resources are managed effectively within an organization (Commission, 2014). The LH Corporation encourages employees to get involved in innovative projects. They employ workers who are competent, fully equipped with the medical knowledge and having experience in their relevant fields. The employee’s core competencies are compensated through salaries, commissions and bonuses by evaluating their performance.
The company's value chain
By using the resources, capabilities and core competencies, the company can create value for itself. This may take a chain that involves concentrating, accumulating and conserving the available resources. For example, if the company has only one machine to carry out paternity testing, it should be used effectively ensuring that it accomplishes its intended purpose. The company should identify it capabilities and turn its resources into useful outputs. Employees with the skills of doing genetic modification should be used to carry out the test for the benefit of the laboratory. Integration of the core competencies and the capabilities together with the resources may bring about value to the company. For example, competency in innovation can be integrated with production capabilities and the human resource. The company can create value in the areas of scientific innovation, research, technology and dealing with competition.
In conclusion, business environment plays an important role in influencing business activities. The positive influence can be said to bring profit and increased productivity. Negative impact has severe implications for the business. The two have to be analyzed and maintained. Competition is inevitable in any market. The forces of competition are strong, and only the healthy companies can survive in the market. Threats and opportunities are based on the external environment while the strengths and weaknesses are based on the internal factors. The management of any company should strive to monitor these factors.
- Category: Government Solutions
- Published on Thursday, 18 June 2015 20:40
- Written by Super User
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Just like most people, public policies, businesses, or services obtain a everyday living cycle and sometime ought to conclusion. However, policies that are considered inefficient or outdated seldom get terminated because they need policy makers to abolish them artificially. Guidelines termination should really be forced from a confident surgery. In order to bring to an end inefficient, unnecessary and outdated or redundant policies by decision-makers after they have carefully evaluated the policy , policy termination can be regarded as being an action that is followed. The goal of terminating a plan is as well as others avoiding a rigid guidelines, save means, as well as to improve the ability of the policy. That is why, this is a major system in national administration. For a number of reasons, this practice of policy termination has faced a number resistance. The approach also includes a selection of activities, personnel, systems and institutions and also other complex components Fed government packages also not often get terminated even while they are inefficient
- Category: Government Solutions
- Published on Monday, 27 April 2015 15:24
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Very much like guests, community plans, businesses, or courses utilize a lifetime routine and at one point want to side. Policies that are considered inefficient or outdated seldom get terminated because they need policy makers to abolish them artificially, however. Policies termination will have to be imposed through the confident process. In order to bring to an end outdated, unnecessary and inefficient or redundant policies by decision-makers after they have carefully evaluated the policy , policy termination can be regarded as being an action that is followed. The goal of terminating a policy is among others in avoiding a rigid insurance coverage, help you save online resources, also to help capabilities of a typical protection plan. Due to this, it is actually a major experience in federal government administration. For a number of reasons, this practice of policy termination has faced a number resistance. The entire process also is made up of line of institutions, personnel, activities and systems and various other elaborate important things Govt routines also hardly ever get terminated even while they are unproductive
- Category: Government Solutions
- Published on Wednesday, 25 February 2015 21:07
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The patterns of satisfaction among whites of varying political ideology
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