Running head: EXTERNAL AND INTERNAL ENVIRONMENTAL ANALYSIS

External and Internal Environmental Analysis

STR 581

EXTERNAL AND INTERNAL ENVIRONMENTAL ANALYSIS

External and Internal Environmental Analysis

Strategic planning determines the major goals of the organization. It provides the
foundation for the policies, procedures and the strategies for obtaining and using resources to
achieve those goals. In todays rapidly changing environment, strategic planning is becoming
more difficult because changes are occurring so fast that plans may soon become obsolete. One
way in which an organization can stay relevant with strategic planning is through performing
external environmental scans and internal competitive environmental scans. In this paper, I will
identify and analyze the most important external environmental factors, identify and analyze the
most important internal strengths and weaknesses of Addus HomeCare, assess the organizations
competitive position and possibilities and analyze the structure of the organization and how this
affects organizational performance.
The role of company leadership is an important internal business factor. Leadership styles
and the styles of other company management can have a very influential impact organizational
culture. The positive or negative nature, level of family-friendliness, effectiveness of
communication and value of employees are cultural implications that result from leadership
approaches. Companies often provide formal structure or direction with mission and vision
statements. These are forward-looking statements that provide the business for company
decisions and activities.
The strength of your employees is another crucial internal business factor. Motivated,
hard-working and talented workers generally produce better results than unmotivated, lesstalented employees. Your business processes and relationships within and between departments
and employees also significantly impact business effectiveness and efficiency. In a high-

EXTERNAL AND INTERNAL ENVIRONMENTAL ANALYSIS

performing workplace, employees not only have talent, but they work well together and
collaborate on ideas and resolutions.
All companies strive to promote their strengths and what they believe sets them apart
from their competition. Addus promotes their people because of their belief that their
employees are the companys greatest strength. They are the basis for the companys success
and what is different from other home care companies. This is based upon the companys
mission statement, It is the primary mission of Addus HomeCare to improve the health and
well-being of our consumers through the provision of quality, cost-effective health care services.
We will accomplish our goals by fostering an environment in which our employees
enthusiastically support and advance our mission (Addus.com, 2014)
Another internal strength in the environment is the companys assets and liabilities.
According to "Addus Homecare Sec Filings" (2014),Addus has a total current unaudited asset
amount of $188,015; which includes $42, 024 in cash and accounts receivable, and other total
assets totaling $78,109.00. Addus also has a total unadjusted liability of $53,589; which includes
accounts payable and accrued expenses totaling $45,104 as well as long-term liabilities totaling
$8,485 (Quarterly Filings).
One of the most critical external business factors is competition. Competition in health
care markets benefits consumers because it helps contain costs, improve quality, and encourage
innovation. Many companies do competitive analysis to compare their offerings and prices to
those of competitors. Socio-economic factors relate to the values, attitudes and concerns of your
target customers and their economic abilities to afford your products. Gentiva Health Services,
Inc. is a large competitor for Addus HomeCare. This is mainly due to the breadth of services that

EXTERNAL AND INTERNAL ENVIRONMENTAL ANALYSIS

Gentiva can offer, such as skilled care nursing, cardiac and pulmonary care, disease and pain
management, medication management and education, and hospice services (Gentiva.com,
2015). These are more comprehensive medical services than those that Addus offers; however,
the services for Gentiva tend to be far more than those of Addus.

EXTERNAL AND INTERNAL ENVIRONMENTAL ANALYSIS

References

Addus HomeCare SEC Filings. (2014). Retrieved from

http://phx.corporate-ir.net/phoenix.zhtml?c=231191&p=irol-sec

AddusHomeCare. (2014). Retrieved from

http://www.addus.com/mission.html

Kindred at Home. (2015). Retrieved from

http://www.gentiva.com/about/