External and Internal Environment Analysis: Mayo Clinic

External and Internal Environment Analysis: Mayo Clinic

Introduction

This paper will be analyzing Mayo Clinic and looking at the external and internal factors of the organization. The clinic is non-profit global leader in providing medical care, research and education for people belonging to all socio-economic classes. There are many external and internal factors that have an impact on the operations of Mayo Clinic. Analyzing the external environment is vital as it helps in establishing the strategy that needs to be adopted in order to be able to survive in the market. The environment is dynamic and ever changing, the challenges and opportunities will always be changing. The core competencies need to be identified in order to combat the challenges and exploit the opportunities. The internal and external environments both play a central role in the sustenance of an organization in the long run.

Mayo Clinic was established in the year 1889, and is a not for profit medical research centre in Rochester, Minnesota. The clinic comprises of resources for medical professional, research and students. They also offer degrees to potential medical students. It is the first and biggest complete not for profit medical centre in the globe, and employees around 3,000 doctors and scientists and approximately 50,000 united health staff. Their specialization is in the treatment of difficult cases by use of tertiary care. The clinic spends more than half a billion dollars per annum on research (Mayo Clinic, 2013).

External Environment of Mayo Clinic

External environment can be generally categorized into three types;

Remote Environment

This is also known as the macro environment. The environment comprises of the conditions that affect the business environment in general, and the impact it has on the industry and market in which all the companies exist. The changes in the environment do not affect an industry in particular, but all the industries.

Industry Environment

This is also known as micro environment. It is the competitive environment in which the business exists, and comprises of the markets and industries in which the company competes.

Operating Environment

This environment is also called the competitive or task environment and consists of the aspects that help the firm in competing successfully. In addition to this, it also covers the ability of the firm to attain the resources that are necessary for the firm to provide its goods and services at a profit.

Every factor of the environment has some sort of impact on the operations of the business. The major environmental factors that affect Mayo Clinic are Political and Technological Factors. A common factor that affects the industry is the economic factor as when there is a slump in the cycle, the ability of the patients to pay for healthcare goes down. Similarly, when the economic conditions are strong the demand for healthcare goes up. For Mayo Clinic, the political factor is significant as it directly impacts their operations. Foreign patients have been a significant source of revenue for Mayo Clinic. Since 9/11, the visa policy of the United ...