After considering individual and local factors involved in starting a charitable pharmacy, another assessment is a global look at the environment. PESTAnalysis is a simple and widely used tool to help analyze the Political, Economic, Socio-Cultural, and Technological (Legal and Environmentalcan also be added) changes in an industry environment. These changes can be opportunities, as in new technologies, new funding streams, changes in government policies. Or they may be threats, as in deregulation that exposes intensified competition, increased interest rates, or a shrinking market. Examples of this type of global influence were the implementation of the Affordable Health Care Act, Medicaid expansion, and e-scribing. The status of 340B may be a factor in coming years.
A sample PEST (LE) Analysis exercise is in Appendices/Business Plan/CSHP_WhatsYourStrategy2018(See: Environmental Factor Resourcesfor references on concise, current information regarding health, medicine and scientific discovery).
As PEST looks at the “big picture”, SWOTexplores these factors at a business, product-line or product level. SWOT Analysisexplores Strengths, Weaknesses(often internal), Opportunities, and Threats(internal or external). SWOT can be used to evaluate factors that are sustainable and those requiring closer dialogue. (See: Appendices/Business Plan/CSHP_WhatsYourStrategy2018) for a PEST exercise and example of a SWOT analysis.
Detailed information on PEST (LE) and SWOT can be found at Mindtools.