MHA FPX 5010 Assessment 1 Current Environmental Analysis

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A natural review assesses both the interior and outer parts of an association. The presentation and results of the association may be significantly impacted by each component. Internal factors like employees, shareholders, and the Board of Directors are taken into account in this analysis. Innovation, financial matters, and governmental issues are assessed as outside factors. These factors determine a business’s strategic direction. The Organization’s healthcare objectives are the objective of Health Net Group: further developed well-being results, decreased expenses, and expanded part association Every association ought to do a natural survey to make courses of action for its future (Kumar, 2018). The organization is able to keep up with its importance and accomplishments if it is aware of the obstacles that are currently in the way and the potential outcomes. The medical services industry is continually changing, so it should have the option to answer rapidly and really to it (Miles et al., 1978). The direction that Health Net Group takes is determined by its vision, mission, and core values.

Internal Variables that Influence Organizational Decision making

A couple of internal parts could influence the progressive route. A few examples include investors, the directorate, and workers (Kalodimos and Leavitt, 2020). Perceiving the affiliation’s financial backers is basic. Finding their necessities and suspicions and their degree of impact is major. Stockholders weren’t allowed to talk to each other in the past. The Securities and Exchange Commission relaxed the guidelines for shareholder collaboration. Investors made plans to increase their wealth, which necessitated changing irritating hierarchical procedures. With shareholder involvement, the strategic direction becomes more self-governing.

MHA FPX 5010 Assessment 1 Current Environmental Analysis

The Top managerial staff’s degree of contribution fluctuates from one association to another; this may either help or forestall the improvement of fruitful procedures. Bezemer et al. state that the Top managerial staff’s association in offering recommendations and effectively taking part in navigation is contrarily connected with the association’s procedure plan adequacy. 2018). The Governing body of an association is viewed as an autonomous leader who adds to the association’s essential course and gives input. Sheets of Chiefs investigate the outside world to gather information, decipher current events, and select the best options. Others acknowledge the Top administrative staff should screen proposed drives, either enduring or excusing what the Presidents recommend.

Faculty are the underpinning of each and every effective business. Representatives who are given a say in the organization’s direction have a greater stake in its success. The association and efficiency of laborers are enhanced by strengthening. Right when agents connect with brands and affiliations, they are more arranged to seek after choices that contrast the affiliation’s vision, goal, and values. When representatives are enabled, the customer experience will be improved. Clients who relate to one brand are more averse to change to another and create positive input and proposals. According to Niswaty et al., employees who feel like they are a part of leadership and decision-making will contribute to the overall success of the business. 2019).

External factors have a role in the decision-making process of an organization

External analysis is essential for identifying external modifications, but it does not guarantee a positive result. Change cannot be avoided, and an organization’s capacity to adjust to abrupt hardship may determine its level of success. It continually evaluates external elements to adapt an organization’s efforts and plans to the ever-changing external environment. Politics, economics, sociology, and technology are common external influences that affect an organization (Vasilev et al., 2020).

MHA FPX 5010 Assessment 1 Current Environmental Analysis

Health policy is a collection of stipulations, regulations, and laws that apply to all buyers and providers. Legislation attempts to strike a balance between healthcare prices and access by posing the crucial issue of how it will be supported. Because the penalty is more minor than the cost of health insurance, employer-sponsored coverage will decline. More employees are adopting government-sponsored initiatives. This political shift has a substantial influence on the income streams of the majority of organizations. Despite the risk of damage, Health Net Group’s sales in 2021 topped $3 billion. Employer-based coverage is becoming more unaffordable due to rising premiums and deductibles, which have outpaced increased employees’ income. This is accurate as a current employee of Health Net Group. Even if the employer offers low-premium plans with large deductibles, some workers can still not see the doctor due to financial constraints. This is an opportunity for Health Net Group to develop an affordable plan for its workers. Providing affordable healthcare continues to be difficult to their mission statement and triple aim objective. About 27.3 million people in the United States did not have health insurance in 2015 (Ragan et al., 2019). Employers are not required to pay for their employees’ health insurance. Even though treatment costs are down, total payment is rising. Concerns over healthcare policy, such as the future of the Affordable Care Act, the increase in the cost of healthcare insurance coverage, the cost of pharmaceuticals, and the revisions to Accountable Care Organizations, are common among medical professionals. 

MHA FPX 5010 Assessment 1 Current Environmental Analysis

Health Net Group could not sustain the losses associated with government health insurance exchanges and withdrew in 2016. Health Net Group considered simplifying health insurance coverage alternatives, helping persons and families whose earnings are up to 400 percent of the federal poverty line is one example of what we mean by income-based assistance.

The broad use of electronic health records is dependent on technological advancements and creative thinking. You are utilizing data from electronic health records to improve the quality of treatment to determine physician and hospital reimbursement. There have been technological advances in automation, telemedicine, data analysis, and the interchange of clinical information (Kruse & Beane, 2018). Health Net Group is leveraging artificial intelligence to improve member participation. Artificial intelligence will assist high-risk members and members with numerous chronic conditions in establishing stronger connections with their doctors, achieving better health outcomes, and gaining access to member-centric services and solutions. Strategic management is all about placing the firm’s successes ahead of the competition. It is necessary to understand the organization’s assets and take action to maximize them. Compare these assets to those of the competitors to determine who is superior. The objective is for the organization’s strengths to correspond with what customers/members want, which contributes to the organization’s ability to overcome competitors (Arumi, 2020).

The strategic direction of a healthcare organization

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The Wellbeing Net Gathering mission statement (n.d.) is “improving the wellbeing framework for everybody” and “assisting people with carry on with bettering lives.” The strategic direction of Health Net Group reflects the company’s objective and vision. Further creating prosperity results, cutting down expenses, and supporting part consideration are clinical benefits targets. In order to assist members with chronic and high-risk conditions, Health Net Group is investigating new technology, such as artificial intelligence. A patient-focused way to deal with care will be made simpler by this innovation. Individual Wellbeing Records have been created and executed by Wellbeing Net Gathering notwithstanding computerized reasoning. It provides members and clinicians with a comprehensive picture of a member’s medical information on a single system and may also suggest a path to improved health. Prosperity Net Social event has made Rally propel part responsibility, an electronic stage that offers people internet prosperity the board gadgets and answers (Prosperity Net Get-together, About us. n.d.). Rally motivates and entices individuals to evaluate their progress, share their accomplishments, and obtain rewards for making better choices. Wellbeing Net Gathering teams up with the Food and Medication Organization, the Communities for Government medical care and Medicaid Administrations, and the Branch of Wellbeing and Human Administrations to further develop drug store rehearses.

MHA FPX 5010 Assessment 1 Current Environmental Analysis

Health Net Group is collaborating with pharmaceutical manufacturers to share some of the risks and lower the price of pharmaceuticals in order to control the rising cost of healthcare. Health Net Group’s shareholders want to make sure that the strategic plan is carried out. They anticipate significant business expansion and profits. The top management team at Wellbeing Net Gathering is looking at the outside environment to make sure they have all the information before making comments about the important bearing. Workers at Wellbeing Net Gathering adhere to the fundamental guidelines that guide their individual and collective actions. Honesty, compassion, growth, relationships, and execution are Wellbeing Net Gathering’s most important standards (Wellbeing Net Gathering, About Us). n.d.). An organization’s fundamental standards for achieving its goals are its fundamental beliefs. To impart trust in the association that it is helping people in having better existences, workers add to the individuals’ prosperity.

Industry Structural Elements That Influence Competition

The Porter Five Forces Analysis, according to Wellner & Lakotta (2020), is an essential management technique for determining the fundamental profitability of various business sectors. This model could assist bosses in seeing what the negative perspectives mean for the benefit and in encouraging a system to build up their high ground and long-stretch legitimacy busy with giving clinical thought plans. Due to new companies entering the medical care industry that bring innovation and improved methods for completing tasks, Wellbeing Net is being forced to reduce evaluation, reduce rates, and offer incentives to new customers. Health Net must create new products or services to address these concerns and create practical barriers in order to maintain its competitive advantage. New participants are much less likely to enter a crowded market where well-known companies like Health Net constantly define the criteria. Customers can be difficult to please because they want the most value for their money. This puts the Prosperity Net under a ton of financial tension eventually. Customers’ negotiating power and ability to demand more significant price cuts and offers rise as Health Net’s customer base decreases and becomes more effective.

The state of one’s health and well-being The Internet may make it harder for buyers to negotiate prices because it has a large consumer base. It will reduce consumers’ bargaining power and streamline the company’s sales and manufacturing processes by rapidly developing new products. If Wellbeing Net keeps coming up with new products, it will want to make it harder for its customers to find better deals and make fewer people switch to its competitors. At the point when another help or item tends to be comparable client’s needs another way, the area’s prosperity endures. Consider the situation wherein the incentive of a resulting item or administration contrasts essentially from that of the choices that are right now available. Taking everything into account, this poses a significant threat. By zeroing in on administrations as opposed to items, zeroing in on clients’ essential requirements as opposed to items themselves, and bringing down the expenses related to exchanging suppliers for individual clients, Wellbeing Net explores the issue of item and administration substitution. Wellbeing Net contends in the packed clinical protection market. This conflict is terrible for the association’s long advancement. By developing a long-term differentiation, acquiring scale to compete more effectively, and collaborating with competitors to expand the market, they could oversee outrageous competition in the clinical consideration plans sector rather than competing for a small market.

MHA FPX 5010 Assessment 1 Current Environmental Analysis

Prosperity Net is under pressure to diminish costs, cut costs, and convey new client offers as new associations enter the clinical benefits region. The innovative strategies and approaches of the new businesses are putting pressure on Health Net. Wellbeing Net needs to find solutions to these problems and impose obstacles in the way of producing new goods and labor in order to maintain its position as the leading business. Wellbeing Net asserts that there is a crowded market for health insurance.

Possibilities for Improving Health System Performance

Using past encounters, industry principles, and industry experiences, Wellbeing Net Gathering is creating answers for work on the general execution of the medical care framework. The advancement of this groundbreaking approach supplements the statement of purpose of Wellbeing Net Gathering, which peruses “supporting the improvement of the well-being framework for everybody” (assisting people with carrying on with bettering lives and aiding the improvement of the well-being framework). They focus on problems with healthcare that people are facing right now. In order to evaluate treatment plans, Health Net Group aims to maximize public resources like federal registries for specific diseases. By allowing states to adjust the amount paid for specific treatments based on members’ income and medical history, they want to modernize government healthcare systems. They look to modify a part’s medical care benefits as per the geographic reach wherein they live inside a state. By normalizing treatment strategies, they mean to modernize how care is regulated to make it cheaper and of better caliber. The Health Net Group is committed to contributing to the development of more effective, user-friendly, and consistently superior medical care solutions for the future of health care.


Organizations must develop a directing strategy that considers internal and external environmental elements. Identifying the problems and possibilities and altering the organization’s plan leads to success. Health Net Group assesses its surroundings regularly and makes adjustments that contribute to the organization’s performance. Health Net Group’s strategic plan reflects their purpose Health Net Group’s directional approach reflects their purpose and vision of “helping people live healthier lives and contributing to a more effective health system for everyone.”

MHA FPX 5010 Assessment 1 Current Environmental Analysis


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