PESTLE and SWOT analysis can be used to power a successful business strategy and agile project management, so they are critical for any Healthcare Start-up businesses. SWOT and PESTLE analysis are complementary, much like the two sides of a coin. Both the SWOT and PESTLE analysis frameworks assist businesses in making sound decisions about their options, identifying opportunities, managing innovation, and identifying areas for gaining a competitive advantage. Because the internal environment (strengths and weaknesses) and the external environment (opportunities and threats) are inextricably linked, these frameworks can provide guidance when developing strategies that align with organizational goals.
Combining SWOT and PEST analysis into a single strategic framework also aids in better identifying the effects of deregulation (or re-regulation) on established businesses. This method allows you to highlight opportunities in an industry, such as those created by regulatory changes. Such opportunities are frequently overlooked when SWOT and PEST analysis are performed separately as stand-alone activities.
What Exactly Is a SWOT?
A SWOT analysis looks at four aspects of the business environment:
- Strengths: Determine your company’s advantages over the competition.
- Weaknesses: honest tool about your operations’ flaws.
- Opportunities: Identify external trends that you can capitalize on.
- Threats: Evaluate the external conditions that may pose challenges and have a negative impact on the business.
What Exactly Is a PESTLE?
A PESTLE analysis is used to assess the external factors that influence a business:
Political: Determine how the current political system may affect your business development and growth.
Economical: Examine the effects of interest rates, taxes, the stock market, consumer confidence, and other economic indicators.
Social: Recognize changes in lifestyle, advertising targets, ethics, demographics, and culture.
Technology: Assess your company’s current technological capabilities.
Agile Project Management: SWOT and PESTLE are models for strategic analysis
According to a global executive survey conducted by Harvard Business Review and Brightline Initiative, only 20% of the strategic goals set by organizations are met. The remaining 80% of strategic goals are not met due to insufficient planning, insufficient resource allocation, and poor execution.
Successful Agile organizations can predict market trends better than others, provide resources to develop products and services to capitalize on those trends, counter competitors’ threats, and meet customers’ expected value proposition.
Strengths are the capabilities and resources that it can use to build a sustainable competitive advantage in the marketplace. Positive aspects of five key resources and capabilities contribute to strengths: past experiences and successes, human resources, financial resources, activities and processes, and physical resources such as land and buildings. Examples are
- Strong Balance Sheet and Financial Statement
- Diverse Product Portfolio
- Robust Domestic Market
- Superior product and services quality
- Intellectual Property Rights
- High Margins
Weaknesses are areas, capabilities, or skills where Agile Project falls short. It limits the firm’s ability to develop a sustainable competitive advantage. Weaknesses result from a lack of five key resources and capabilities: activities and processes, financial resources, human resources, physical resources such as land and buildings, and previous experiences and successes. Examples are
- Lack of critical talent
- Organization Culture
- Low Return on Investment
- Inventory Management
- Lack of Work force diversity
Opportunities are macroenvironmental factors and developments that Agile Project can use to either consolidate its existing market position or expand further. Economic growth, increases in consumer disposable income, political developments and policy changes, changes in consumer preferences, and technological innovations can all create opportunities. Examples are
- Changing Technology Landscape
- Opportunities in Adjacent Markets
- E-Commerce and Social Media Oriented Business Models
- Reducing Cost of Market Entry and Marketing into International Markets
- Increase in Consumer Disposable Income
Threats are macroenvironmental factors and developments that can derail the Agile Project’s business model. Threats can emerge as a result of a variety of factors, including an increase in consumer disposable income, political developments and policy changes, technological innovations, changes in consumer preferences, and economic growth. Examples are
- Increasing bargaining power of buyers
- International Geo-Political Factors
- Culture of sticky prices in the industry
- Growing Protectionism
Importance-Performance Analysis: A Valid Agile Management Tool
One way to make better use of the SWOT framework is to consider the customer’s perspective when making strategic plans and decisions. You can do this by applying importance-performance analysis (IPA) to identify SWOT based on customer satisfaction surveys.
Importance-performance analysis (IPA) is regarded as a valuable tool for analyzing customer satisfaction and management strategies. This technique can assist healthcare stakeholders in identifying underlying deficiencies and prioritizing policy development. As a result, a more efficient allocation of limited resources could be accomplished in order to improve tourist satisfaction and destination competitiveness. However, some conceptual and methodological issues impair its effectiveness.
In simpler words, the importance-performance analysis (IPA) is a method for measuring customer/user satisfaction that allows for the simple and functional identification of both the strong and weak aspects, or areas for improvement, of a given service. A graph with four quadrants is obtained by taking into account both the importance assigned by users to all relevant aspects of a given service and the perceived performance of the establishment in providing the service.
Finally, although many different research fields use Importance-Performance Analysis (IPA) as a cutting-edge quantitative methodology to achieve various goals, very little research has addressed how to use IPA as a cutting-edge quantitative methodology to develop actual strategic plans in the healthcare setting and I hope policymakers start using IPA as an advanced agile project management tool through making SWOT more tangible outcome.
