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MHA FPX 5010 Assessment 1 Attempt 1 Current Environmental Analysis


MHA FPX 5010 Assessment 1 Current Environmental Analysis

An organization’s internal and external elements are evaluated as part of an environmental study. Each component may significantly impact the organization’s performance and result. Internal factors like Shareholders, the Board of Directors, and Employees are considered in this analysis. Politics, economics, and technology are evaluated as external variables. Based on these variables, a company’s strategic orientation is established. The objective of Health Net Group is to accomplish the Organization’s Goals of health care: better health outcomes, lower costs, and more member involvement. Every company must do an environmental study to plan for its future (Kumar, 2018). Identifying the present obstacles and possibilities enables the company to maintain its relevance and success. The health care business is in a constant state of change and must be able to respond swiftly and control it effectively (Miles et al., 1978). Health Net Group’s directional approach comprises its often-examined vision, mission, and core values.

Internal Variables that influence Organizational decision making

Several internal elements might influence organizational decision-making. Stockholders, the board of directors, and workers are a few examples (Kalodimos & Leavitt, 2020). Identifying the organization’s shareholders is essential. It is essential to ascertain their needs and expectations and their degree of influence. Historically, stockholders were prohibited from communicating with one another. The Securities and Exchange Commission loosened the regulations governing shareholder collaboration. Shareholders networked in order to amplify their calls for the modification of undesirable organizational practices. Participation of shareholders enhances the self-governing nature of the strategic direction. The amount of engagement of the Board of Directors varies from organization to organization; this may either aid or hinder the development of effective strategies. It has been observed that the effectiveness of an organization’s strategy formulation is proportional to the Board of Directors’ involvement in offering proposals and actively engaging in decision-making (Bezemer et al., 2018). Boards of Directors are regarded as independent decision-makers that offer input and contribute to the organization’s strategic direction. Boards of Directors investigate the external world to gather information, interpret the facts, and pick the best options. Others believe the Board of Directors should monitor suggested initiatives, either accepting or rejecting what the Chief Executive Officers recommend.

MHA FPX 5010 Assessment 1 Current Environmental Analysis

The cornerstone of every successful company is its personnel. Employees who are given a voice in decision-making have a more significant stake in the organization’s success. The empowerment of workers increases their involvement and productivity. When employees identify with brands and organizations, they are more inclined to make choices that correspond with the organization’s vision, goal, and values. Customer experience will be optimized when employees are empowered. Customers who identify with a particular brand are less inclined to switch to another brand and generate favorable comments and referrals. Employees that feel involved with leadership and decision-making will contribute to the organization’s overall success (Niswaty et al., 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).

Health policy is a collection of stipulations, regulations, and laws that apply to all buyers and providers. Legislation attempts to strike a balance between health care 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. 

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.

MHA FPX 5010 Assessment 1 Current Environmental Analysis

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 mission statement of Health Net Group (n.d.) is “helping people live better lives and enhancing the health system for everyone.” Health Net Group’s strategic direction reflects its goal and vision for the company. Improving health outcomes, lowering costs, and boosting member involvement are healthcare goals. Health Net Group is exploring emerging technology, such as artificial intelligence, to effectively assist high-risk and chronic illness members. This technology will facilitate a patient-centered care approach. In addition to artificial intelligence, Health Net Group has built and deployed Individual Health Records. 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. Health Net Group has developed Rally to promote member engagement, a digital platform that offers members online health management tools and answers (Health Net Group, About us. n.d.). Rally stimulates and engages people to measure their progress, share their accomplishments, and earn reward monies for making healthier decisions. To improve pharmacy practices, Health Net Group is working with the Department of Health and Human Services, the Centers for Medicare & Medicaid Services, and the Food and Drug Administration. 

MHA FPX 5010 Assessment 1 Current Environmental Analysis

Health Net Group is collaborating with pharmaceutical makers to reduce the cost of pharmaceuticals and share a portion of the risks associated with health care to control the rising cost of care. Health Net Group’s stockholders want to ensure the strategic plan is implemented. They anticipate significant growth and substantial profits from the enterprise. Prior to providing comments about the strategic direction, the Board of Directors of Health Net Group is assessing the external environment to ensure they have all the information. Health Net Group workers are aligned with the basic principles that motivate their activities as people and as a company. Health Net Group’s fundamental principles are integrity, compassion, innovation, partnerships, and performance (Health Net Group, About us. n.d.). Core values are the essential principles of an organization that aids in achieving its objectives. Employees contribute to the well-being of members to instill faith in the organization that it is assisting individuals in living better lifestyles.

Industry Structural Elements That Influence Competition

The Porter Five Forces Analysis is a crucial management technique used to analyze different business sectors and establish the fundamental profitability of those sectors (Wellner & Lakotta, 2020). This model may be of assistance to executives in recognizing how the negative aspects impact profitability and in developing a strategy to strengthen their competitive advantage and long-term sustainability in the business of providing medical care plans. Health Net is being pressured to decrease pricing, cut rates, and provide new client value propositions due to new companies entering the healthcare sector who bring innovation and new ways of doing things to the industry. Health Net must address these concerns and develop practical barriers by developing new products or services to maintain its competitive advantage. New participants are much less likely to enter a crowded market where well-known companies, such as Health Net constantly define the criteria. Customers can be difficult to please because they want the best value for their money. This puts the Health Net under a significant amount of financial stress in the long term. Clients’ negotiating power and capacity to demand more significant price cuts and offers increases as Health Net’s customer base shrinks and becomes more effective. 

MHA FPX 5010 Assessment 1 Current Environmental Analysis

The state of one’s health and well-being by amassing a considerable consumer base, the Internet may mitigate the influence that buyers have in price negotiations. It will reduce consumers’ bargaining power and streamline the company’s sales and manufacturing processes by developing new products as quickly as possible. If Health Net keeps developing new products, it will be able to restrict its customers’ ability to shop around for better deals and lower the number of consumers who switch to its rivals. The sector’s success is harmed when a brand-new service or product addresses similar client needs differently. Suppose the value proposition of a successor product or service is considerably different from that of the alternatives that are already available on the market. In that case, this constitutes a significant threat. Health Net examines the problem of product and service replacement by placing a greater emphasis on services rather than products, directing its attention to the primary needs of customers rather than the products themselves, and reducing the costs associated with switching providers for individual customers. In a crowded medical insurance market, Health Net competes. This rivalry is harmful to the company’s long-term success. Instead of fighting for a small market, they could manage extreme competition in the medical care plans sector by developing a long-term differentiator, gaining scale to compete better, and partnering with competitors to expand the market.

Health Net is under pressure to reduce prices, cut costs, and deliver new customer value propositions as new companies enter the healthcare sector. These new businesses bring innovation and new ways of doing things, putting pressure on Health Net. In order to preserve its position as the industry leader, Health Net must find solutions to all of these problems and erect formidable obstacles in the way of creating new goods and services. In a crowded health insurance market, Health Net competes.

MHA FPX 5010 Assessment 1 Current Environmental Analysis

Possibilities for Improving Health System Performance

Utilizing previous experiences, industry standards, and industry insights, Health Net Group is developing solutions to improve the overall performance of the health care system. The development of this forward-thinking approach complements the mission statement of Health Net Group, which reads “aiding in the improvement of the health system for everyone” (helping people live better lives and assisting in the improvement of the health system). They concentrate on current healthcare difficulties impacting the populace. Health Net Group seeks to maximize public resources such as federal registries for certain illnesses and ailments to evaluate treatment protocols. They want to modernize government healthcare systems by allowing states to alter the amount paid for specific treatments depending on members’ income and medical history. They seek to customize a member’s health care benefits according to the geographic range in which they live within a state. By standardizing treatment methods, they aim to modernize how care is administered to make it more inexpensive and of higher quality. The Health Net Group is dedicated to playing a role in the future of health care and developing solutions that are more efficient, user-friendly, and consistently provide superior medical 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 to 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.”


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MHA FPX 5010 Assessment 1 Attempt 1 Current Environmental Analysis

Health Net, About us. (n.d.). 2021 Health Net group.

Retrieved fromhttps://www.healthnet.com/content/healthnet/en_us/about-us.html

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