(Solution) 3CO01 Examine the key external influences that impact on business environments. (AC1.1)


Considering the CIPD HR Professional Map, business acumen is categorised as a core knowledge and identified in CIPD (2022) as understanding organisations, purpose, future direction, priorities and performance. Hence, evaluating external influences and trends which impact them is instrumental.

Considering Ministry of National Guard Health Affairs (MNG-HA) in Saudi Arabia, PESTLE analysis can be applied. This is identified in CIPD (2021) as focusing on Political, Economic, Sociological, Technological, Legal and Environmental factors influencing an entity. A summary of the organisation PESTLE Analysis is illustrated in table 1;

Figure 1: PESTLE Analysis Summary

Political- MNGH-A offering healthcare services to Army officers families, the current Houthi attacks CNBC (2022) have substantially increased the number of army offers in the battle. Further, the potential conflicts with Iran and Syria increases their number. In future, the number of healthcare services to be offered would substantially increase negatively impacting on the organisation efficiency. Similarly, as evidenced in Wehrey (2022) the challenges in Russian and Ukraine political conflicts will potentially affect Middle East relations to disadvantage of MNGH-A organisation.

Economic- Generally, since the time of COVID-19 pandemic, (Alharbi, 2021.) report indicate that there has been a 40% decline in the KSA revenues and general operations. Similarly, owing to the reduced economic development, Rt.gov (2022) note that the KSA government has not increased their spend on healthcare sector and is retained at $46 billion. This negatively affect ability of MNG-A ability to recruit the best doctors. This will impact the future resourcing and retention approaches in MNGHA.

Sociological- in Knoema (2022) report, it is noted that population of age above 65 years account for 3.7% of the entire population. This is an increase in growth which will affect MNGH-A future resourcing of most qualified employees. Also, this increase the potential patients to be handled by the organisation actively.

Technological- As evidenced Knoema (2022), KSA ICT sector has growth with 8% from 2019 to 2021 to arrive at $32.1 billion. This will influence the extent of MNGH-A investment in technology in their operations. Resourcing employees with technology awareness and knowledge would be instrumental in future.

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