NHS (National Health Service) is the UK’s publically funded healthcare system. Aneurin Bevan proposed the legislation of National Health Services in 1946. NHS Wales and NHS England split up in 1969. Today, we’ll discuss the PESTLE analysis of NHS; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting NHS
Some of the main political factors in the NHS PESTLE analysis are as follows;
I-Government Regulations
The consumer health and safety government regulations are very strict and tight for health organizations like NHS (National Health Service). They focus on various areas like medical standards and protocols, doctor-patient confidentiality, labor laws, prescription of the right drugs, ethical practices, and others. However, the objective of strict government regulations is to ensure compliance with the healthcare standards and ethical practices of healthcare professionals.
II-Brexit Deal
The Brexit deal has recently allowed Britain to get out of the European Union. It means that all the UK-based companies including NHS (National Health Service) can’t freely conduct their business operations with the neighboring EU countries. They have to pay trade tariffs and comply with additional legal and documentary requirements, and it further amplifies the operational cost.
III-Political Stability
NHS (National Health Service) procures medical supplies, drugs, surgical tools, and equipment from various countries. The stable political environment of supplier’s countries plays a key role in the smooth running of various business operations. In case of political procession, roadblocks, and other co4e5rnflicts; then it causes delays and disruption in the distribution of medical supplies to the NHS healthcare facilities.
Economic Factors Affecting NHS
Some of the main economic factors in the NHS PESTLE analysis are as follows;
I-Economic Growth
UK’s economy has been growing steadily for the past few years. A stable economy creates employment opportunities for people when people have stable jobs and multiple employment options. However, it implies that they have a stable source of income, when people have enough disposable income; they’re willing to spend it on healthcare services.
II-Currency Exchange Rate
NHS (National Health Service) procures medical supplies and drugs from various countries in multiple currencies. The currency exchange rate is highly unstable and it keeps fluctuating due to multiple economic and political factors. A small change in the currency exchange rate would increase the cost and expenses of the medical supplies and it amplifies the operational cost.
III-Expensive Medical Supplies
The cost of drugs, medical supplies, and surgical tools and equipment has increased a lot in recent years. It is due to the amendment in the labor laws, high labor cost, high sourcing cost, increasing fuel price, and expensive material and they collectively increase the overall retail price of medical equipment.
Social Factors Impacting NHS
Some of the main social factors in the NHS PESTEL analysis are as follows;
I-Aging Population
The number of people in the aging population and elderly people has been increasing significantly. It is due to the fact that increasing healthcare services and better medical facilities have increased the average life of an individual. As a result, the aging population is increasing and they all require healthcare and medical facilities of NHS (National Health Service), a great growth opportunity for the company.
II-Health Conscious Trends
The consumer market has become highly health conscious and they’re investing a lot of attention on their health and diet. Growing health-conscious and dietary trends present business growth opportunities to the NHS (National Health Service).
III-Medical Awareness
People have become highly medical awareness due to the easy access to the information and multiple media channels. They’re investing a lot of capital resources in medical products and healthcare to live a healthy lifestyle. However, it further amplifies the growth, sales, and network of NHS (National Health Service).
Technological Factors Affecting NHS
Some of the main technological factors in the NHS PESTEL analysis are as follows;
I-Medical Tools and Equipment
NHS (National Health Service) invests a significant amount of capital resources in the procurement of efficient medical tools, equipment, and supplies. It allows them to efficiently perform their healthcare operations and provides top-quality services to the customers and patients.
II-Advanced Technology
NHS (National Health Service) is implementing the latest advanced technological tools and equipment in the diagnosis of diseases and performing various operations. It helps them to reduce the risk factors, improve the healthcare services, and precisely diagnose the right disease on time to serve patients.
Legal Factors Impacting NHS
Some of the main legal factors in the NHS PESTEL analysis are as follows;
Regulatory Compliance
NHS (National Health Service) needs to comply with government regulations and policies of various countries. It comprises labor laws, trade tariffs, medical licenses, import and export laws, and other legal requirements. However, the objective of strict government laws is to smoothly perform their operations without any disruption.
Environmental Factors Affecting NHS
Some of the main environmental factors in the NHS PESTEL analysis are as follows;
Sustainability Initiative
NHS (National Health Service) should make a strong commitment to environmental sustainability initiatives. It comprises investing in renewable sources of energy, biodegradable packaging, and ethical sourcing of materials and supplies to reduce the carbon impact. However, it allows companies to keep up with the growing environmental sustainability trends.
Conclusion: NHS PESTLE Analysis |PESTEL Analysis of NHS |External Environmental Analysis of NHS | Strategic Analysis of NHS
After an in-depth study of the pestle analysis of NHS (National Health Service); we have realized that NHS (National Health Service) is the leading healthcare service-providing company. If you are learning about the NHS PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
