External Environmental Scan




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      Environmental scanning is the breakdown of external information that may trigger or influence the decision-making process of a company (Cornelis, Kooman, and van der Sande, P 3067, 2011).Fresenius Medical Care use of environmental scanning is vital for its survival and maintaining its competitive edge as a leading medical fraternity in the dialysis industry. Many external factors may affect the process of decision-making, with most recently being the government of United States making a major health reform in the history of the state. It will affect the way Fresenius conduct their business in terms of provision of health services that is, payment per service coverage; maintain its quality of service, as well as the profitability of the company. External factors that affect Fresenius include markets, legislation, demographic and marketing trends.

      Internal environment scan is essential before making any strategic plans. However, it should be done after an external environmental scan has been concluded. The major objective is to conduct an up-to-date understanding of what the organization can do, and determine a suitable method or strategy to obtain and maintain its competitive advantage compared to its competitors. Fresenius Medical Care can make use of the internal environmental scan to identify areas of weakness, and demands of various stakeholders and what options it can pursue. Its outcome is a complete assessment of its capacities in context of the realities it faces in the real world of competition in terms of infrastructure, hardware, personnel, abilities, and its organizational structure.

      There are five factors that Fresenius Medical Care has no control or regulation. These are Economic, and social, political, technological and ecological factors (Lethbridge, p.35 2011). Remote environmental factors influence the way Fresenius Medical Care offers its Dialysis...