Acadia Healthcare Current Environmental Analysis Paper Example

Introduction

Conducting an environmental analysis on an organization is instrumental for it maps out the challenges and opportunities that it encounters which provides it with an added advantage in preparation for the future. Therefore, this paper focuses on Acadia Healthcare, a behavioral health institution. The article will assess its internal and external environment when seeking challenges and opportunities that affect it.

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Forces that Govern Competition

The forces that govern competition in Acadia's industry can be assessed using PESTL analysis. The tool can be used to determine the competitive intensity of the industry as well as its attractiveness.

Political Factors

Though the previous political administration had made efforts towards increasing the numbers of those who are insured through the Affordable Care Act, the current administration threatens to repeal that act hence reducing the number of those insured (Calcagnini, 2017).

Economic Factors

According to Levenson et al., (2017), economic factors appear to be in favor of the behavioral health industry as spending in the sector continue to grow at the rate of between 5-7% annually.

Social Factors

The number of patients in the country insured against behavioral health issues in the county has increased and surpassed the number of available services to treat them (Bithoney, 2015). There has also been a growing acceptance for the treatment of behavioral health issues by society.

Technological Factors

Calcagnini (2017) shares that some technology companies have focused on creating telehealth services reducing the need for physically visiting a doctor and also possibly increasing the number of patients who seek the medical services. Legal Factors

Levenson et al., (2017) further state that the industry's legal environment has been impacted by numerous regulations with a majority of them calling for stricter regulatory compliance. The occurrence has necessitated companies such as Acadia to employ resources in instituting additional checks and balance.

Goals and Structures of the Competitive Forces

Concerning political factors, the goal is to have support from the government concerning legislation that supports the industry. The business anticipates that the economy grows so that consumers will have resources that they can spend in seeking behavioral health services. The goals of the social factors are that citizens should get educated so as to embrace the need for the treatment and to have as many patients insured so that they can afford the medication. The goals of the technological factor are to reduce costs, increase accessibility while increasing efficiency. Lastly, the purposes of the legal considerations are to ensure that the organization provides safe and standardized treatment to its patients.

Directional Strategy of the Organization

According to Ginter, Duncan, and Swayne (2018), a directional strategy is a gamelan that a business uses in determining how it will increase revenues. Acadia's directional approach encompasses the acquisition of other behavioral health facilities. Its approach also includes providing quality and cost-effective services. Another one of its directional strategies involves developing a national marketing strategy, which will help it expand its national footprint (IBIS World, 2011). The company's mission is to create an organization that is of world-class status and excellence in treating behavioral health issues. The company's mission also encompasses a commitment to the establishment of behavioral health centers where patients receive quality care. The company's vision constitutes being recognized as a leader in behavioral health by understanding patient preferences and various sensitivity issues. Lastly, the company's values are to ensure that people's lives are enhanced by success in treatment and recovery (Acadia Healthcare. n.d.).

Organization's Positioning Approach

The company's organization positioning approach encompasses employing a growth strategy that will allow it to expand its footprint and cater to the increasing demand for behavioral health services. It will also serve to reduce the deficit concerning accessibility to the services.

The TOWS Matrix

The TOWS matrix is almost similar to the acronym SWOT. Although both come out as the same thing, it is important to note that the difference between the two is that TOWS looks into the external environment while SWOT deals with the internal environment of the organization. Therefore, the TOWS matrix looks into Technology, Opportunities, Weakness, and Strengths in relation to the external environment in an organization. Regarding Acadia Healthcare, it is evident that the external environment plays a critical role in its success.

Assumptions, Information, and Fairness

Laurie assumed that the magnitude and resources present in Hurricane Katrina and Ruby Lake evacuation efforts were similar. In any case, it is only imperative that considering English is the major language, it would be the only language used. Notably, the people are quite informed regarding public data such as video of Master N-Roc's statements which had gone viral (Bryson, J. M., n.d). However, they are not informed as to whether there are illegal immigrants in Red Cross shelters. They, thus, do not have sufficient information on what is deemed confidential. As the mayor, Keith demonstrated much care and patience, especially regarding Victoria's questions. Although the questions were annoying such as when she commented that a cat with rabies had been found in a Red Cross shelter.

Criteria For Evaluation

If anything, it would be necessary to look into the quality of information in such cases where one is facing public scrutiny. For one, I would help to ensure that the criteria for evaluation separate between rumours and truth. Technological evidence would be deemed as being true. This ranges from YouTube videos to photographs of actual scenarios although an assurance would be provided only after a critical evaluation. Regarding allegations such as that of a cat infected with rabies, I would request for more time for the inside persons to find it and have it tested for the same. Notably, I will listen beyond the voices of the questions asked. This is critical for implementation as it implies listening to the tone of the question and seek to find out if they hold meaning from a psychological sense.

TOWS Matrix Implementation at Acadia Healthcare

Methodologies

For one, knowledge-economy is based in a situation where growth and development are based on the magnitude of information present. Notably, the modern world presents an opportunity for Acadia Healthcare. In the healthcare industry, the flow of information is even more enhanced as health practitioners become more willing to share information. Willingness to share information helps to achieve better results through collective effort. Another opportunity present is that the public is more willing to divulge information and also learn how to protect themselves. Through this, the knowledge-economy becomes even more enhanced as information flows seamlessly.

Strategy Management

Research reveals that as a healthcare institution focusing on behavioural health, there is a lot that Acadia healthcare can gain from technology. In the 21st century, technology is increasingly becoming an integral aspect that affects nearly every facet of life. Telehealth which is the application of telecommunication technologies in healthcare presents space for growth for the institution. Admittedly, technologies such as MRI will make the society to embrace accessing health care even more. In the end, technology, therefore, plays distinct but crucial roles in the development of behavioural healthcare and more specifically, Acadia healthcare.

Synthesizing Operational and Financial Components

If anything the operational and financial components play a vital role in advancing the strategic planning process. It is important to note that the demand for behavioural health exceeds its supply. This is a notable strength as it provides a bright future for the growth and development of Acadia Healthcare. Notably, social attitudes regarding behavioural health have, also, changed. Now, more people are considering seeking guidance for their behaviour as the public becomes increasingly aware of the need to maintain healthy behaviour.

Organizational Structure

In any case, Acadia healthcare is working with a responsibility of providing quality behavioural healthcare to its clients. In regard to this perspective, adopting a functional organization structure proves to be more practical than divisional. The functional organizational structure divides the company into smaller groups with preference given to functions conducted. As for Acadia, the small groups would relate to financing, research, telehealth, and counselling. These aspects of the functional organizational structure would allow the management to closely monitor developments in the organizations. Similarly, it is easier to conduct strategic plans with defined departments.

Description of Proposed Strategy

The strategy proposed in this case looks into creating more defined structures in Acadia healthcare. It is important to note that the company stands to gain from taking a strategic approach towards the future. Fortunately, there are some disadvantages that are prominent as far as Acadia and its relation to development are concerned. For instance, the public is softening to the idea of accessing healthcare due to a growing economy while telehealth is simplifying ways of identifying and treating diseases. In this regard, it is evident that the Acadia stands to gain more by adopting a functional organizational structure as it will assist to monitor different aspects and avoid various functions in the institution from overlapping.

Summary of Insights and Findings

From the analysis, Acadia stands to benefit from increased business due to the increase in spending on behavioral health. It also stands to benefit from increased business due to changing social attitudes on behavioral health and increase in the number of those who are insured. Another opportunity presents itself in telehealth, which may increase the number of patients accessing the service. Lastly, there is great demand than supply for the service. The situation makes it feasible and profitable for the company to embark on a growth plan. However, there also exists challenges, which include the current administration desire to repeal the affordable care act hence reducing the number of those who are insured. There is also stricter regulatory control, which exposes the organization to the risk of non-compliance. There is, therefore, the need to employ resources so as to avoid the risk.

Conclusion

Acadia's environmental analysis reveals favorable prospects about the business and its industry. It possesses opportunities to exploit such as advances in telemedicine, change in social attitude and increase in spending. However, it must be conscious of the fact that it faces non-compliance risk and risk of repealing the Affordable Care Act.

References

Bithoney, B. (2015). Behavioral Health: A market ripe for growth and consolidation. Retrieved July 2, 2018, from www.bdo.com/insights/industries/healthcare/behavioral-health-a-market-ripe-for-growth

Bryson, J. M. (n.d). Riverbend city: Strategy change cycle mission. Retrieved from public.cschons.com/search/StrategyChangeCycle_ts.html

Calcagnini, J. (2017). Behavioral Health Industry Update - July 2017. Retrieved July 2, 2018, from www.stoutadvisory.com/insights/industry-update/behavioral-health-industry-update-spotlight-substance-abuse-treatment

Levenson, F., Gibbs, K., Ivill, D., Nierenberg, D., & Shoenholz, D. (2017). Behavioral Health: Market...