Business Policy and Strategy: Case Study:-"Radical Change in The NHS"

BUSINESS POLICY AND STRATEGY
Case study:-”RADICAL CHANGE IN THE NHS”
PRADEEP SHARMA
BBA 6TH SEM (2ND SHIFT)
04421301717
SUMMARY
 Seniors officials set targets to reduce the numbers of patients which are referred
to specialists or treated in accidents and emergency departments, while GPS will
be asked to cut down the amount of time spent in consultation as they warned
NHS is about to face greatest financial pressure
 NHS confrontation represents NHS managers will tell this week’s labor partly
conference about this challenge that hospital closures and job cuts must be
enforced across the country.
 Regional health authority have ordered hospitals and primary care to cut funding
in worth billion. As a result in London. NHS trust has been told to divert more than
half of their A&E patients and those some specialists to cheaper polyclinics also
family doctors will be asked to speed up their consultations. Construction drawn
up by NHS London demonstrates that they can deliver an aggressive scenarios in
response to funding pressures.
SUMMARY
 Controversial plans to reduce the number of patients who are treated in hospitals
are given more demanding targets in an attempt to cut cost. 60% of the activity
should happen in community clinics which currently takes place in A&E dept. along
with 55% of outpatient treatment, 30% of outpatient appointment will be stopped
as managers say not all appointments are necessary.
 The number of diagnostic test carried out will be cut by 15% and surgeries will
reduce 7% to shift more treatment into the community GPs will be told to reduce
their appointment time by one third
 Seniors managers said that rural communist faced particular pressures with small
maternity district general hospital likely to struggle into the funding crisis. The
NHS confederation plans to warn that the service across the country face
unprecedented difficulties in it’s speech at labour party conference in Brighton
SUMMARY
 He said that improving the operation of NHS would not be able to balance the
books. Delicates will be told that savings only start to available when the NHS shut
the entire building sites and reduced the staffing members
 The Organization which represent NHS members will also called to limit staff pay
under a 3 year deal already agreed nurses will receive a rise of 2.25% of pay in
April.
 Sir Robert Neeler said pay should be frozen for NHS staff after that point if it was
not every 1% pay rise could 10k job cuts
 The chief executive said that he was concerned that PCTs were planning to cut
back on hospital services before alternatives were put in place. He criticized over
simplified analysis which failed to take account of increased public demands and
he asked that the investments in those services has to come first and where do
the patients go.
SUMMARY
 A study by the king’s fund and institute for fiscal studies forecast of funding gap of
between 20 billions to 40 billions pounds by 2017.
 Sue Slipman, director of Foundation trust network warned of an Armageddon

situation.
 She added that these plans can fail and hence they look like madness
 A spokesperson for NHS London said that it’s document provide planning
scenarios rather than forecasts
Q. Outline the PEST factors driving change within NHS?
It can be very useful because the best strategies the one that position organization
for their best chance of success in particular time period which are developed in large
part in external factors
The factors of PEST are as follows:
 Political Factors: It includes changing test legislation, consumer protection,
employment regulations and Insurance mandates
 Economic Factor: It includes unemployment, inflation and interest rate which
directly or indirectly influenced the financial performance of Health Care
Organization
 Socio Culture Factors: It identify changes and demographic values and beliefs of
your various consumer groups
 Technological Advancements specific to hospital and healthcare manufacturer
could have a varying of effects on your overall performance
Q. Which PEST factors do you consider to be most important and why?
There are 4 PEST factors such as:

 Political Factor
 Economical Factor
 Socio-cultural Factor
 Technological Factor
These all factors that are mentioned above are interrelated to each other and they all
are equally important as if there are not well suited political factors available. The
other factors will not be able to improve the situation of organization. All factors
should be in favor of organization otherwise the organization will not be able to get
successful
Q. How can analysis of PEST factors help the govt. and NHS chief executive to
resolve the crisis in health service?
It is a strategic tool use to evaluate the impact of political, economic,

social and technological factors might have on a project. It involves
organization considering the external environment before starting a
project. Its not expensive and have understanding of wider business
environment and encourage development of strategic thinking.
It also raise awareness of threats to a project. It also helps the
organization to anticipate future difficulties and take action to avoid and
minimize their effect and to identify and exploit opportunities
As it stands for political, economical, social and technological impact on
company. These can influence marketing and relationships that a company
has worked hard to develop. Knowing ahead of time that a change maybe
occurring will help in making better business decisions
THANK YOU

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BUSINESS POLICY AND STRATEGY

Case study:-”RADICAL CHANGE IN THE NHS”

 Sue Slipman, director of Foundation trust network warned of an Armageddon

There are 4 PEST factors such as:

It is a strategic tool use to evaluate the impact of political, economic,

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