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Pest Analysis On Cerner Corporation

Pest Analysis On Cerner Corporation

Discuss Pest Analysis On Cerner Corporation within the Principles of Management ( P.O.M) forums, part of the PUBLISH / UPLOAD PROJECT OR DOWNLOAD REFERENCE PROJECT category; Cerner Corporation (NASDAQ: CERN) is an international health care information technology corporation that specializes in providing complete systems for hospitals ...

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Pest Analysis On Cerner Corporation
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Abhijeet S
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Pest Analysis On Cerner Corporation - December 3rd, 2010

Cerner Corporation (NASDAQ: CERN) is an international health care information technology corporation that specializes in providing complete systems for hospitals and other medical organizations to manage and integrate all electronic medical records, Computer physician order entry (CPOE) and financial information.[1]

Cerner claims to be the largest provider of electronic medical systems in the United States.[2][3] Its largest competitor, McKesson Corporation, is larger in size but McKesson has income from other non-technology medical sources.

As of Second Quarter 2009 its systems are licensed by 8,000 facilities around the world including 2,100 hospitals, 1,500 pharmacies and 3,300 physician practices representing 30,000 physicians.[4]

It has more than 7,800 employees. As of June 2006[update], approximately 1,900 associates in the United States and 600 associates in India were involved full-time in the software development aspect of the company. Cerner has more than 6,000 clients worldwide.


Cerner was founded in 1979 by Neal Patterson, Paul Gorup and Cliff Illig, who were colleagues at Arthur Andersen. Its original name was PGI & Associates (the last names of the founders). It was renamed Cerner in 1984[5] when it rolled out its first system PathNet. It went public in 1986. [6]

In 2005 (the first year it passed $1 billion in sales)[7] it acquired the Riverport Campus complex on the site of what was formerly the Sam's Town Casino above the Missouri River in North Kansas City, Missouri[8]

The world headquarters (WHQ) is across the street from North Kansas City Hospital, which was Cerner's second hospital client.[9]

In 2006 it also acquired the fomer Marion Laboratories complex for a South Campus in south Kansas City, Missouri.[10]

Its products include Powerchart and Millennium e-Booking, which is providing a code base for Choose and Book.

In July 2010 Trace Devanny, president, left the company.
"Devanny’s responsibilities will be absorbed by the current organization. Neal Patterson will become the company’s president, in addition to his current role as Cerner’s chairman and chief executive officer."[11]


A PEST analysis looks at the Political, Economic, Social and Technological drivers of a particular industry. PEST are external factors that must be analyzed and understood in order for an organization to succeed. The PEST analysis focuses on the external forces that affects the organization. It is most useful when used together with other tools such as the SWOT analysis.

* Political Factors – may have direct or indirect impact on the organization’s operation. Decisions made by the government may have an effect on the business. The political arena has a big influence on how organizations operate, the purchasing power of the customers and other businesses.
* Economic Factors – the organization is affected by economic factors. Economy also affects the purchasing power and behavior of the consumers.
* Sociological Factors – include the demography, lifestyle, cultural aspects of the consumers. These factors have a big influence on the consumer needs and wants. Sociological factors also affect the size of potential markets.
* Technological Factors – technological change plays an important role in shaping how organizations operate. Technological factors are important in gaining competitive advantage. Technological innovations can improve production efficiency, quality and speed. New technology is changing how organizations operate.
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