Week 2 Essay

Submitted By soupastar
Words: 981
Pages: 4

When competing in business there are many factors to take into account like strategies, opportunities and potential competitors. This examination will describe and elaborate on the external environment Crestwood Behavioral Health (CBH) will face in a growing competitive market. The external environment involves factors that occur outside the CBH organization. Topics covered will include: Industry trends, general issues, opportunities in the marketplace, customers and competitors. Additional key points that will be examined contain how easy or difficult is it for new competitors to enter the market along with a stunted SWOT analysis.
Industry Trends
Industry trends have a major influence on markets and company profits. CBH is California's primary provider of mental health services, aiding thousands of all over the state (Crestwood, 2014). CBH is psychiatric health facility that focuses on acute client rehabilitation and the wellness of the community
When evaluating industry trends it is necessary to run an environmental scan to assist in strategically planning an organizations operational direction. Related to this industry, research indicates that most psychiatric health facilities are designed around strict guidelines and regulations that force facilities to have the same requirements. By only allowing a certain number of beds per client it restricts the opportunity for large operational earnings for that facility. However the more facilities under an organizations umbrella will produce more expenses and profits. Current innovative trends. that differentiate facilities are being implemented but clients do not choose to come to these facilities based on the quality of the treatment programs. Facilities battle for grant money and county accounts to remain in business, so the quality of the organization and compliance with regulations is detrimental to funding.

General Issues and Opportunities in the Marketplace
As briefly reviewed under industry trends two general common issues that arise in the external environment include regulation infractions and bad press. California has strict guidelines and regulations that require an annual performance analysis accompanied by an external audit for all psychiatric health facilities but not as extensive as public hospitals. According to Pub Med, “Psychiatric health facilities provide acute short-term treatment in nonhospital settings that have more flexible facility and staffing requirements than hospitals require.” “In 1985 a single private and 16 public psychiatric health facilities were operative in California .So naturally the number of candidates requesting to open private-sector psychiatric health facilities continued to climb, due to mandated insurance coverage for the facilities (Moltzen, 1986).” This mandate has opened up a major opportunity in the marketplace that not only benefits the organization but the community as well. This mandate mitigates the liabilities and risk so this sector can expand and continue to function at high operational levels. Bad press is an external factor that can draw negative perceptions towards the organization and initiate lengthily investigations that could reduce funding, violate regulations and in rare cases close the facility down until litigations resolved. Situations that can cause bad press include client suicides, restraint ratios and staff corruption. Although these allegations are not directly associated with upper personnel the organization takes responsibility.
Customers
Customers in this field are referred to as clients rather than patients. By calling them clients it gives them assurance that they are in the facility getting treatment rather than being institutionalized. CBH customers are people in the community who have been diagnosed with mental disorders and are in serious need for rehabilitation not incarceration. Customers do not choose to be admitted to CBH they are sent there from…