select a service category and a service area and conduct a complete external environment (Chapter 2) and service area competitor analysis

Using information presented in Chapters 2 and 3, each group is to unanimously select a service category and a service area and conduct a complete external environment (Chapter 2) and service area competitor analysis (Chapter 3).
The project tends to have two phases – one is to identify the general/societal and health care industry issues and the second phase deals with service area competitor issues.
Chapter 2, of course, concerns the general/societal and health care industry issues. For this portion of the project, students should identify the general issues (legislative/political, economic, social/demographic, technological, and competitive) that affect all industries and organizations. This environment represents the general context for “doing business.” As pointed out in the text, these can be very important issues that have a long-term impact on the development of industries. Industry issues tend to have a high, more immediate impact. These more specific “rules for doing business” will affect a number of service categories. This project helps students to recognize that there are “layers” of issues that they should consider if they are to become effective strategic thinkers. For the project, students should be asked to use one of the organization techniques presented in the text. Students typically use Trend/Issue Identification and Evaluation (Exhibit 2-4 and 2-5); however, stakeholder analysis, scenarios, focus groups, and so on should be encouraged.
Once the macro issues (general and health care) have been identified, students should complete a competitor analysis for a selected service category and service area. We generally provide the following outline as an initial guide:
I Perform a Service Area Structure Analysis.
Threat of New Entrants
Intensity of Rivalry
Threat of Substitutes
Power of Customers
Power of Suppliers
Identify Service Category Critical Success Factors.
Identify and Map Strategic Groups.
Provide a Synthesis.
An extended example of a service area competitor analysis is provided throughout the chapter for Cosmetic Dentistry (Teeth Whitening) (service category) in Santa Fe, New Mexico (service area). (See Perspective 3-1, Exhibits 3-4, 3-6, 3-8, and 3-10.) Students typically choose service categories such as a children’s hospital, a cardiac unit in a hospital, home health, long-term care,
Rehabilitation, and so on. Service categories that are very competitive because of the large number of competitors, such as dentistry and plastic surgery, are typically somewhat easier to do (in that all aspects of the service area competitor analysis can be completed). The students often define a local service area that facilitates gathering the necessary general, economic, demographic, and psychographic, health status, and competitor information. An 8 – 10 paper should be submitted to the instructor.
La Costa Glen Retirement Community is the service category we will be focusing on. the website is: and the service area is North County San Diego or just San Diego. Textbooks:
Swayne, L., Duncan, J.L, Ginter, P. M. (2013). Strategic management of health care organizations, 7th edition. Wiley-Blackwell. ISBN: 978-1-118-46646-9.
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