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Critical Analysis Essay Assignment: 1302
Part I: The first part of the assignment is to find an example of
a visual argument with written OR spoken text of some sort in
it. Examples of this can include: A meme or gif, a short [1
minute maximum] video (advertisements, tik tok videos, etc. are
good examples), and/or photo/ work of art. Note: Keep the
videos short [1 minute or less] and self-contained(e.g. do not
pick a scene from a movie, video, or part of a longer filmed
work, etc.)
You will choose it, but it must include the following:
It must contain language (either spoken or written, or both) and
images (either moving or
stationary).
The images and text must allow for outside context (outside
interpretation that involves
time, place, cultural attitudes, economic conditions, etc.) to be
added for one to fully understand its meaning
It must be from a source that is reliable/ vetted in some way
(e.g. Facebook, Youtube, Twitter, TikTok=okay; 4 Chan, 8
Chan or anonymous source= not okay)
If it is a video, it should be no longer than a few minutes (1
minute max).
Part II: You will next write a Visual Analysis Essay about this
video/image & written text.
This visual analysis essay should do the following:
1. It should examine the content that is in the video/ image, etc.
by summarizing [if it is
a video] or describing it [if it is a stationary visual image(s)].
2. It should present a claim that identifies why/ how the
image/ video, etc. is important, salient, compelling, etc. by
interpreting its meaning.
3. It should identify the audience that the text [including
the images] is aimed at, primarily and give reasoning that
supports that supposition.
4. It should present any greater context that is missing from
the visual argument that is important to understanding that
argument better.
5.It should consider the logic of the argument presented by
the image, video and/or images by considering whether the
argument addresses the topic appropriately, gives appropriate
context, etc.
Here are some questions to consider when writing your essay:
1. How does the written and visual text support the meaning
that of the visual image and make it powerful?
2. What is the purpose of a particular symbol, image, language
and/or setting and how does it support the meaning you are
giving to this visual image(s) w/ text?
3. How do the visual and textual elements ‘prove’ the claim that
you are making about the video,image, etc.?
Essay Requirements:
The essay should be 1000-1200 words in length
(at least 4 full pages and no more than 5 full pages).
It should include 2-4 direct quotes of language from the work
that you chose to analyze.
It should contain a works cited page, and this MUST contain the
original source that you are examining.
It should be MLA formatted, be written in 12pt, Times New
Roman font. [I will provide an MLA generator website link with
example docs]
It needs to be written using the third person only(no first or
second person) throughout, and should address the claim/
argument your essay is making about the image and text, not
your personal feelings about it.
It should give analysis throughout (see example) and not talk
about what it contains
.
It can [but does not have to] contain one (1) outside source, but
this research should ONLY provide some context for the video/
image.
The research should come from an unbiased/ neutral site.
Wikipedia or the LSC Library Facts on File:Issues and
Controversies or Gale Opposing Viewpoints sites.
A rough draft of the essay is due next Sunday Feb 20TH, 2021.
The final draft is due Feb 21stby 11:59PM for full credit in the
drop box entitled “Visual Analysis Final Essay.”
Hints as to how you may want to organize your essay.
Note: Be sure each paragraph has a specific purpose. You can
organize your analysis in many ways, but here are the easiest
ways:
Pattern A: Topic based
Introductory paragraph that explores the topic with context
2nd paragraph contains Elements of the visual text
(summary)w/main claim which includes your interpretation of
the meaning/importance
3rdparagraph: audience for the visual source and why this topic
is
Important?
4thparagraph: elements in the video that lead you to understand
its importance (symbols, colors, actions of people that are not
literal but inferred, etc.) based on topic
5thparagraph: See above (if necessary)
Conclusion + brief recap
Pattern B:
Introduction w/elements summary main claim including primary
argument about visual elements’ meaning.
Element #1 (images) that supports argument
Element #2 (text) that support argument
Elements #3 (symbols, music, etc) that supports argument
Conclusion + Recommendation.
Discussion 2.1: Choose Your Organization!
Curtis Hill posted Jan 12, 2021 5:03 PM
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The selected healthcare organization is the Memorial Regional
Hospital, Hollywood, Fla-1014. This healthcare facility was
established in 1953 under the umbrella of the Memorial
Healthcare System that also includes the Memorial Regional
Hospital South and the Memorial Hospital Pembroke among
others (LeValley & Page, 2011).
The hospitals under this flagship are public and non-
profit hospital system. They are governed by the South Broward
Hospital District Board of Commissioners that consists seven-
member district board. The members are the appointee of the
Governor whereas the Chief Executive Officer and the President
is the being appointed by the Board of the Commissioners. The
website of the organization is www.mhs.net/locations/memorial-
regional
The Memorial Regional facility is among one of the
seven-level I trauma centers in the state. The facility is selected
because it using an expanded and modernized ED that makes it
a busy facility within Broward County. Another reason for the
selection of this facility is that it also operates institutions. The
Hospital is running the Memorial Cardiac and Vascular
Institute; Memorial Cancer Institute; and a Breast Cancer
Center as well as the Memorial Neuroscience Center. The
facility is also hosting the largest number of patients. It admits
37,431 patients with its ED receiving a total of 126,288
patients. It also hosts a total of 8,169 inpatients and 6,464
outpatient surgeries (Memorial Healthcare System, n.d).
The hospital is hosting several specialists for example
pathologists, cardiologists, pediatricians, emergency medical
teams, neonatal and perinatal medical specialists,
neurosurgeons, obstetric and gynecologists, pulmonologis ts,
physician assistants, and internal medicine specialists. The
hospital is having more than 6,700 employees who partner with
physicians, and hundreds of volunteering members who are
helping in the improvement of the health of the communities
(Memorial Healthcare System, n.d ).
References
LeValley, C., & Page, L. (2011, November 21). 20 Largest
Public Hospitals in the United States. Retrieved from Becker's
Hospital Review: https://www.beckershospitalreview.com/lists-
and-statistics/20-largest-public-hospitals-in-the-united-
states.html
Memorial Healthcare System. (n.d ). Memorial Regional
Hospital. Retrieved from
https://www.mhs.net/locations/memorial-regional
Curtis Hill
Assignment 03: Benchmark: A Starting Point
HA4110D - Healthcare Planning and Evaluation
Robin Bolton
January 24, 2021
Pharmaceutical Industry
The Pharmaceutical industry is known for discovering,
developing and producing drugs or medications that are
administered to patients with the intention of curing,
vaccinating or alleviating symptoms of different diseases
(Farooq, 2020). The Pharmaceutical industry usually deals with
brand or generic medications and also the production of medical
devices. This industry is closely related to the health sector
because the drugs which are used in the hospitals are usually
manufactured by these industries. Pharmaceutical industries are
majorly affected by environmental factors which include
political, economic, social and technology.
For political factors, this industry is subject to variety of laws
set by states for regulation in developing, testing and also
marketing of the drugs produced. Government agencies and
other drug related laws usually govern the operations of this
industry for the safety and health of the patients who receive
these medications (Farooq, 2020). There are also regulations on
where these drugs can be sold, because these manufactured
drugs can be sold directly to the patients or to hospitals and
other pharmacies. These regulations that govern this industry
also have a positive advantage because they act as a barrier to
entry of new competitors and therefore it is hard for new
industries to venture in this business giving the established
companies least competition.
There is also pressing pressure when it comes to selling these
drugs to the consumers. This is because these drugs are
lifesaving and therefore the government cannot allow these
industries to sell them at a higher price which will make them
unavailable to the needy. In the past the prices of these drugs
were not controlled by the government, but the industry started
hiking the prices such that they were not affordable to many of
the patients and therefore the government took over to
controlling the pricing of these drugs (Bush, 2019).
In the economy factor the health care spending is steadily
growing because of other factors such as increased lifestyle
diseases and therefore this has led to increased or greater
revenues for this industry. As for social factors there is a
growth in the ageing population which means that there is an
increase in age related health complications therefore the
pharmaceutical industry will be able to produce more drugs to
cure such complications (Farooq, 2020). With the growth in the
ageing population this means that the production of age-related
drugs will also increase therefore increasing the revenue of the
pharmaceutical industries.
There is also increased growing obesity rates in the current
generation which lead to increased lifestyle diseases such as
diabetes. Such health-related diseases mean that the
pharmaceutical industries have to come up with the drugs to
cure these diseases which means that the revenue will be
increased because a lot of people need these drugs to cure the
lifestyle diseases. There is also a health-conscious trend in the
current generation meaning that people are striving to live
healthy and take supplements to keep their immune system in
check, presenting an opportunity for the pharmaceutical
industry to provide health related solutions to this generation,
hence growing its revenue.
As for the technology there is a growth in biotechnology
industry which can take from the pharmaceutical industry
because bio technological industries are focused on producing
healthier food options and substituting their normal options that
usually cause diseases and therefore there will be a reduced
need for massive pharmaceutical treatment in the future (Bush,
2019). The Process of producing a new drug is usually complex
and filled with risks and therefore a competitive market
benchmark analysis is very important in the Pharmaceutical
industry. This industry is highly competitive as for the current
top 10 pharmaceutical industries, nine of them come from the
United States and therefore this industry is very competitive in
the United States (White, et al, 2019). These companies usually
compete amongst themselves and both of them produce generic
and branded drugs. The productor service categories in the
committed care industry include oral drugs, parental
formulations, novel drugs formulations, topical medicine
oncological formulations and modified medical formulations
(Yaseen, et al, 2018). These different types or group of drugs
are important in the pharmaceutical industry and therefore there
is a competition of producing all these categories which are in
high demand. Chief providers of these medicines are images of
competition in the pharmaceutical industry and every company
is focused on providing a better version of the same drug which
is more effective and also affordable.
References
Bush T. (2019). PESTLE Analysis of the Pharmaceutical
Industry. Retrieved from https://pestleanalysis.com/pestle-
analysis-of-pharmaceutical-industry/
Calcagno, C., Chapsal, A., & White, J. (2019). Economics of
excessive pricing: an application to the pharmaceutical industry.
Journal of European Competition Law & Practice, 10(3), 166-
171. Retrieved from
https://academic.oup.com/jeclap/article/10/3/166/5362539?login
=true
Farooq U. (2020). PESTLE Analysis of The Pharmaceutical
Industry. Retrieved from https://www.marketingtutor.net/pestle-
analysis-of-the-pharmaceutical-industry/
Yaseen, M. M., Sweis, R. J., Abdallah, A. B., Obeidat, B. Y., &
Sweis, N. J. (2018). Benchmarking of TQM practices in the
Jordanian pharmaceutical industry (a comparative study).
Benchmarking: An International Journal. Retrieved from
https://www.emerald.com/insight/content/doi/10.1108/BIJ-04-
2017-0076/full/html
Curtis Hill
Assignment 04: Introduction to SWOT-EFE
HA4110D - Healthcare Planning and Evaluation
Robin Bolton
January 31, 2021
STRATEGIC ANALYSIS
The health industry has a very dynamic environment that is
affected by numerous factors, both internal and external ones.
The services provided by healthcare organizations are related to
patient satisfaction, loyalty, productivity, and profitability.
Therefore, it is vital to define, measure, and enhance the quality
of healthcare services. Effective leadership integrated with
teamwork in any organization makes a difference when meeting
such factors to mitigate challenges. A consistent evaluation
process is necessary for identifying all factors affecting the
working success of an organization. Different influences may
impact the success of a company. These fall into two categories:
external and internal factors.
External factors are the surrounding environment of healthcare
organization that impacts their performance and quality
services. Patient socio-demographic factor influences the
interaction among a provider and the patient as well as the
quality of the medical service. This factor can hinder the
successful operation of these services if there is no clear
understanding between the patient and the physician. A
physician needs to identify with the patient's socio-demographic
variables to help in communicating better with them and win
their trust (Bielecki & Nieszporska, 2019). This can affect the
organization as it contributes to medical errors or wrong
administration of medications if the patient doesn't provide
eight information to the physician due to misunderstanding.
The attitudes and behavior of the patients affect the attitude of
the caregiver because if they behave themselves, quality care is
offered unintentionally by the providers. The slow diffusion of
medical knowledge is an external factor affecting healthcare
organizations. The acceptance of new discoveries into clinical
practice can take more period than required. Even if it is a way
of ensuring that patients receive drugs, procedures, and
interventions that are effective, it hinders the progress of
important interventions as they cannot be practiced till proven.
Unfortunately, there is no simple solution to this factor.
The severity of illnesses is another external factor. The kind of
illness handled in health organizations increases stress among
physicians, thus affect the entire quality of medical services.
For instance, when the mortality rate keeps increasing, it creates
anxiety and stress among staff, which in turn affects the quality
of medical services. Continuous training and educational
advancements are opportunities that affect healthcare
organizations Willis et al., 2018). This contributes to
professional who is key in providing medical services. They
provide measures for assessment, developing, and fine-tune key
individual and professional skills to remain expert. Therefore,
the healthcare organization can handle any complex situations
in the changing environment to provide quality services.
The practice of medicine and technology have produced
opportunities through how health workers practice medicine
now and in the future. Technology has made massive impact in
healthcare, such as enhancing access to medical data and files.
It permits information to be retrieved from anywhere hence,
permits providers to share medical data rapidly with one another
leading to more effective patient care (Cantor & Poh, 2018).
EHR has made medical billing easier, faster, and smoother.
Patient medical records are secured and stored in an organized
manner and centralized storage of patient's data. This makes the
work of health providers easier as they have quick access to
data for improved care and better results.
The Healthcare organization is very complex due to the changes
needs of patients and modern advancements. To properly deal
with threats and opportunities, healthcare managers should show
direction and guidance to the roles, responsibilities, and
function. They have to find ways that the external factors,
especially the opportunities, can be constructed to be beneficial
to the organization to enhance the quality of services provided.
They should devise and revise strategies that every provider can
adhere to and comprehend. The choices made by healthcare
directors should focus on providing quality care but also
address the needs of health providers and ways to increase their
proficiency.
References
Bielecki, A., & Nieszporska, S. (2019). Analysis of healthcare
systems by using systemic approach. Complexity, 2019.
Retrieved from
https://www.hindawi.com/journals/complexity/2019/6807140/ab
s/
Cantor, V. J. M., & Poh, K. L. (2018). Integrated analysis of
healthcare efficiency: a systematic review. Journal of medical
systems, 42(1), 1-23. Retrieved from
https://link.springer.com/article/10.1007/s10916-017-0848-7
Willis, G., Cave, S., & Kunc, M. (2018). Strategic workforce
planning in healthcare: A multi-methodology approach.
European Journal of Operational Research, 267(1), 250-263.
Retrieved from
https://www.sciencedirect.com/science/article/pii/S0377221717
310196
Running Head: BUSINESS STRATEGY
1
BUSINESS STRATEGY
4
Business Strategy
Institutional Affiliation
Date
Christiana Care Health System Organization’s Mission
Statement
The mission of the Christiana Care Health System is to serve
the general Delaware community by offering high quality health
care services that target patients with heart diseases, cancer,
and other illnesses while offering teaching services to students
who would fulfil the organization’s vision.
First Guiding Principle: What We Do?
The health system, which is currently located in Delaware,
provides several healthcare services. One of the services offered
by this institution revolves teaching services since the
institution has a teaching hospital that consists of two
campuses. The health system has managed to offer this
particular service to both medical and dental students. Other
services offered by this particular institution revolve around
cancer treatment, cardiology, trauma treatment services, and
women health services. The hospital is known for its excellence
when considering the services mentioned above (Wayland, &
McDonald, 2016). This shows that the organization is working
parallel to its mission to offer excellent and quality healthcare
services to its patients. The cancer treatment services have led
the health system to be well-known since the number of
radiology procedures held back in 2013 surpassed 300,000.
Innovative and affordable health care systems have been
adopted by this particular organization due to its effectiveness
and the fact that systems of care are highly valued by the
community. The health system also offers rehabilitation and
neonatal intensive care services to its patients. In the country, it
ranked 21st when considering the volume of admissions. This
shows that this particular hospital has a competitive advantage
over a good number of hospitals located in the region and the
country as well. The philosophy of this particular organization
revolves around offering affordable and quality care to its
patients further benefiting the community at large (Wayland, &
McDonald, 2016).
Second Guiding Principle: Where Are We Going?
The organization vision’s statement is to be build an effective,
affordable, and valuable system of care that will be of value to
the patients since the system will focus on the needs and wants
of the patients and neighbors. The organization has managed to
rank among top thirty when considering the volume of
admissions in the country. The same ranking has been seen
when considering other aspects such as surgeries conducted,
emergency visits, and births. The organization wants to focus on
the community. This has led to the development of a system of a
care that will offer value to the neighbors as stated in the short
description of the company (Wayland, & McDonald, 2016). The
vision of the company is to understand what is valuable to the
patients admitted in the hospital. This particular aspect will
improve the services offered by the organization since the
medical practitioners will offer services respectfully while
showing compassion to the patients. The vision of the
organization focuses on learning more about the neighbors, who
they really are, their wants and needs. This particular vision
will also improve the services offered by the organization to the
neighbors since the health system will have met the needs and
wants of the neighbors. Hence, the primary vision of the
organization is to build a better relationship with the neighbors
by understanding their needs and wants.
Third Guiding Principle: How Will We Get There?
The hospital will achieve its vision by offering affordable and
valuable services to the patients that meet the needs and wants
of the neighbors. This aspect will be possible through
partnership between the organization, the patients, and the
family members of the patients. The partnership will contribute
to the development of a valuable, affordable, and effective
system of care that will meet the needs and wants of the patients
and the neighbors as well (Wayland, & McDonald, 2016).
References
Wayland, M. S., & McDonald, W. G. (2016). Strategic analysis
for healthcare: Concepts and practical applications.
Running head: BCG MATRIX ANALYSIS
1
BCG MATRIX ANALYSIS
2
Title
Student’s name
Instructor
Course
Date
BCG MATRIX ANALYSIS
McKinsey 7s model is a tool that is used in analyzing the
organizational design. This is done through examining seven
vital organizational internal elements. “These elements include
systems strategy, structure, collective values, styles, skills, and
staff” (Gechkova, T., & Kaleeva, 2020). This is done to
effectively identify these factors are appropriately aligned to
allow the organization to achieve its objectives.
The Boston consulting group model (BCG) analyzes an
organization's products or services. The matrix is fabricated
basing on the relative market share and the growth rate of the
market. These are the two significant factors forming the four
BCG matrix quadrants. The y-axis, which represents the growth
rate of the market, helps measure the appeal or the market
demand. When there is a high growth rate in the market, there
are more opportunities, and thus there is a high earning
potential. The x-axis represents the relative share of the market.
It evaluates the competitive strength looking at the revenue
generated by the divisions or products of an organization.
CoxHealth Foundation will be analyzed in this case. This
foundation's system is defined by capital improvement, which is
defined as a star, the clinics are defined as a “cash cow”, the
community impact initiative is defined as a “question mark”,
and charity is defined as a “dog” (CoxHealth. 2017). This will
be shown in the BCG matrix.
The capital improvements require large investments so that the
company can stay ahead. The cash flow may start as negative
until the time when there are improvements made and business
resumes as normal. As time continues, cash flow will become
profitable if there is a good plan in place. The organization
clinics are a very instrumental revenue source for this
organization. High and stable cash flow are very important for
this company. There is a good strategy of investing in
maintaining the organization's current level. The organization's
community impact initiative (a question mark) is vital in the
community. The charities (a dog) usually have a neutral or
negative cash flow (Pascaris, 2017). The organization fund has
numerous finances that help the people who cannot afford the
care they need frantically. For full support, the applicants are
supposed to fill a form and fulfill the requirements highlighted
for the various funds.
CoxHealth BCG matrix
High
Stars
capital improvements
The stars are monies spent on new technology, renovations,
expansions, information system, and purchase of new
equipments and offering services to the patients ( CoxHealth
Foundation. 2017). These improvements are aimed at improving
the quality of patients care. quality care will gradually help in
generating income to the organization
Question marks
Community initiatives
This organization sent a total of $868151180 to the community.
This was done through initiatives as well as donated medical
services. These initiatives are considered as community
investments. They may not bring revenue to the organization but
is very important in boosting the reputation of the organization.
Cash cows
Clinics
The primary care clinics of this organization create the largest
revenue. The organization has more than 150 primary care
physicians serving more than 12000 patients
Dogs
Charity
This foundation has various funds that helps in funding
individuals who are completely unable to afford the required
care. This is solely dependent on fundraisers and donations.
Low
High low
References
CoxHealth. (2017). About us. Community impact. Retrieved
from CoxHealth website: https://www.coxhealth.com/about-
us/community-impact/
CoxHealth Foundation. (2017). Patient Assistance. Retrieved
from CoxHealth Foundation
website:https://www.coxhealthfoundatio n.com/to-
receive/patient-assistance/
Gechkova, T., & Kaleeva, T. (2020). THE MCKINSEY 7S
MODEL IN THE AIRPORT SYSTEM
PROTECTION. Knowledge International Journal, 42(5), 843-
848.
Pascaris, M. (2017, March 08). Fitch affirms CoxHealth (MO)
at ‘A’; Outlook stable. Retrieved
from https://www.fitchratings.com/site/pr/1020240
References
Running Head: STRATEGIC ANALYSIS 1
STRATEGIC ANALYSIS 5
External factors
Student’s name
Institutional affiliation
Date
The health industry has a very dynamic environment that is
affected by numerous factors, both internal and external ones.
The services provided by healthcare organizations are related to
patient satisfaction, loyalty, productivity, and profitability.
Therefore it is vital to define, measure, and enhance the quality
of healthcare services. Effective leadership integrated with
teamwork in any organization makes a difference when meeting
such factors to mitigate challenges. A consistent evaluation
process is necessary for identifying all factors affecting the
working success of an organization. Different influences may
impact the success of a company. These fall into two categories;
external and internal factors.
External factors are the surrounding environment of healthcare
organization that impacts their performance and quality
services. Patient socio-demographic factor influences the
interaction among a provider and the patient as well as the
quality of the medical service. This factor can hinder the
successful operation of these services if there is no clear
understanding between the patient and the physician. A
physician needs to identify with the patient's socio-demographic
variables to help in communicating better with them and win
their trust (Bielecki & Nieszporska, 2019). This can affect the
organization as it contributes to medical errors or wrong
administration of medications if the patient doesn't provide
eight information to the physician due to misunderstanding.
The attitudes and behavior of the patients affect the attitude of
the caregiver because if they behave themselves, quality care is
offered unintentionally by the providers. The slow diffusion of
medical knowledge is an external factor affecting healthcare
organizations. The acceptance of new discoveries into clinical
practice can take more period than required. Even if it is a way
of ensuring that patients receive drugs, procedures, and
interventions that are effective, it hinders the progress of
important interventions as they cannot be practiced till proven.
Unfortunately, there is no simple solution to this factor.
The severity of illnesses is another external factor. The kind of
illness handled in health organizations increases stress among
physicians, thus affect the entire quality of medical services.
For instance, when the mortality rate keeps increasing, it creates
anxiety and stress among staff, which in turn affects the quality
of medical services. Continuous training and educational
advancements are opportunities that affect healthcare
organizations Willis et al., 2018). This contributes to
professional who is key in providing medical services. They
provide measures for assessment, developing, and fine-tune key
individual and professional skills to remain expert. Therefore,
the healthcare organization can handle any complex situations
in the changing environment to provide quality services.
The practice of medicine and technology have produced
opportunities through how health workers practice medicine
now and in the future. Technology has made massive impact in
healthcare, such as enhancing access to medical data and files.
It permits information to be retrieved from anywhere hence,
permits providers to share medical data rapidly with one another
leading to more effective patient care (Cantor & Poh, 2018).
EHR has made medical billing easier, faster, and smoother.
Patient medical records are secured and stored in an organized
manner and centralized storage of patient's data. This makes the
work of health providers easier as they have quick access to
data for improved care and better results.
The Healthcare organization is very complex due to the changes
needs of patients and modern advancements. To properly deal
with threats and opportunities, healthcare managers should show
direction and guidance to the roles, responsibilities, and
function. They have to find ways that the external factors,
especially the opportunities, can be constructed to be beneficial
to the organization to enhance the quality of services provided.
They should devise and revise strategies that every provider can
adhere to and comprehend. The choices made by healthcare
directors should focus on providing quality care but also
address the needs of health providers and ways to increase their
proficiency.
References
Bielecki, A., & Nieszporska, S. (2019). Analysis of healthcare
systems by using systemic approach. Complexity, 2019.
Retrieved from
https://www.hindawi.com/journals/complexity/2019/6807140/ab
s/
Cantor, V. J. M., & Poh, K. L. (2018). Integrated analysis of
healthcare efficiency: a systematic review. Journal of medical
systems, 42(1), 1-23. Retrieved from
https://link.springer.com/article/10.1007/s10916-017-0848-7
Willis, G., Cave, S., & Kunc, M. (2018). Strategic workforce
planning in healthcare: A multi-methodology
approach. European Journal of Operational Research, 267(1),
250-263. Retrieved from
https://www.sciencedirect.com/science/article/pii/S0377221717
310196
Strategic Analysis for Healthcare
Chapter 15
Copyright © 2016 Foundation of the American College of
Healthcare Executives. Not for sale.
Health Administration Press
1
Life Cycle Analysis
Life cycle analysis assesses products, organizations, or
industries by analyzing the current stage in their life cycle.
Although numerous life cycle models exist, researchers have
generally identified five main phases in a life cycle:
Birth
Growth
Maturity
Revival
Decline
Copyright © 2016 Foundation of the American College of
Healthcare Executives. Not for sale.
Health Administration Press
Health Administration Press
Life Cycle Analysis
Copyright © 2016 Foundation of the American College of
Healthcare Executives. Not for sale.
Health Administration Press
Health Administration Press
Life Cycle Analysis: Birth
Organizations in the birth stage are attemptin g to establish for
the first time a viable product-market strategy.
This is achieved mainly by trial and error as efforts are made to
change products and services in a manner that generates
distinctive competences.
This generally involves major and frequent product or service
innovations and the conscious pursuit of a niche strategy.
Because companies in the birth phase are small and have no
established reputation, they do not directly confront their more
powerful competitors.
Instead, they find gaps, or niches, in the market that are not
being filled, and they fill and defend these niches by making
innovations.
Copyright © 2016 Foundation of the American College of
Healthcare Executives. Not for sale.
Health Administration Press
Health Administration Press
Life Cycle Analysis:
BirthPhaseSituationOrganizationInnovation & StrategyBirth
Phase: Small firmInformal structureConsiderable innovation in
product linesYoungUndifferentiatedNiche StrategyDominated
by owner/
managerPower highly centralizedSubstantial risk
takingHomogenous/ placid environmentCrude information
processing & decision making methods
Copyright © 2016 Foundation of the American College of
Healthcare Executives. Not for sale.
Health Administration Press
Health Administration Press
Life Cycle Analysis: Growth
The emphasis of the growth phase is growth and early
diversification:
Product lines are broadened.
Efforts are also devoted to incrementally tailoring products to
new markets.
Less stress is placed on major or dramatic product innovations.
“Market segmentation begins to play a role, with managers
trying to identify specific subgroups of customers and to make
small product or service modifications in order to better serve
them.”
“In other words, the niche strategy is often abandoned as
broader markets are addressed.”
(Miller and Friesen 1948)
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Life Cycle Analysis: Growth
Organizations in the growth phase are bigger and stronger than
those in the birth phase, and they are better able to lobby with
various levels of government.
They may also acquire subsidiaries in their efforts to diversify.
An acquisition of this nature “generally takes the form of
buying out much smaller competing enterprises in the same
industry rather than diversifying into new industries.”
“The acquired firms are usually integrated into the functionally-
based structure rather than left as independent divisions”
(Miller and Friesen 1984).
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Life Cycle Analysis:
GrowthPhaseSituationOrganizationInnovation &
StrategyGrowth Phase:Medium sizedSome formalization of
structureBroadening of product-market scope into closely
related areasOlderFunctional basis of organizationIncremental
innovation in product linesMultiple share holdersModerate
differentiationRapid growthA more heterogeneous &
competitive environmentSomewhat less centralized
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Health Administration Press
Life Cycle Analysis: Maturity
Firms in the maturity phase are conservative, “do not perform
many major innovations, engage in very few efforts at
diversification or acquisition, and fail even to make many
incremental changes to the products or services being offered.”
“The tendency, more than in any other phase, is to follow the
competition; to wait for competitors to lead the way in
innovating and, then, to imitate the innovations if they prove to
be necessary” (Miller and Friesen 1984).
Markets in the maturity phase are slightly broader than in the
growth phase, and fewer firms opt for a niche strategy.
Firms try to arrange for a stable, negotiated environment by
fixing prices and lobbying with the government.
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Health Administration Press
Life Cycle Analysis: Maturity
The goal appears to be to improve the efficiency and
profitability of operations.
This is achieved by
avoiding costly changes in product lines,
ensuring favorable prices via collusion, and
lobbying for barriers to foreign competition.
“A stable and circumscribed product line is sold in traditional
markets, the emphasis being upon economical production and
the preservation of sales volume” (Miller and Friesen 1984).
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Health Administration Press
Health Administration Press
Life Cycle Analysis:
MaturityPhaseSituationOrganizationInnovation &
StrategyMaturity Phase:LargerFormal, bureaucratic
structureConsolidation of product- market strategyEven
olderFunctional basis of organizationFocus on efficiently
supplying a well defined marketDispersed ownershipModerate
differentiationConservatismHeterogeneous & competitive
environmentModerate centralizationSlow growth
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Health Administration Press
Life Cycle Analysis: Revival
The revival phase is in many ways the most exciting of the five.
Changes begin to take place in the product-market strategies
being followed.
“For example, there are more major and minor product-line and
service innovations than in any other period.”
“New markets are entered for the first time as firms become
more diversified” (Miller and Friesen 1984).
This diversification sometimes involves the acquisition of firms
in different industries.
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Health Administration Press
Life Cycle Analysis: Revival
Market segmentation further defines discrete parts of the
environment, and firms differentiate product lines accordingly.
“Essentially, firms experience dramatic diversification in their
products and markets. Their growth does not simply result in an
increase in size but an expansion of product-market scope.
There is a movement from one market to many, reversing the
stagnation of the maturity phase” (Miller and Friesen 1984).
Because of their size, market power, visibility, and occasional
acquisitions, some firms in the revival phase lobby with the
government to avoid interference with expansion, to obtain
protection against imports, and to avoid antitrust lawsuits.
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Health Administration Press
Health Administration Press
Life Cycle Analysis:
RevivalPhaseSituationOrganizationInnovation &
StrategyRevival Phase:Very largeDivisional basis of
organizationStrategy of product- market diversification;
movement into some unrelated marketsVery heterogeneous,
competitive, dynamicHigh differentiationHigh level of risk
taking & planningSophisticated control, scanning, and
communications in info. processing; more formal analysis in
decision makingSubstantial innovationRapid growth
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Health Administration Press
Health Administration Press
Life Cycle Analysis: Decline
Firms in the decline stage react to adversity in their markets by
becoming stagnant.
“They try to conserve resources depleted by poor performance
by abstaining from product or service innovation. Product lines
are rendered antiquated so that it becomes necessary to cut
prices to maintain sales” (Miller and Friesen 1984).
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Health Administration Press
Health Administration Press
Life Cycle Analysis: Decline
Firms seem to be caught in a vicious circle:
“Their sales are poor because their product lines are
unappealing.
This reduces profits and makes for scarcer financial resources,
which in turn cause any significant product line changes to
seem too expensive” (Miller and Friesen 1984).
As a result, changes are avoided, and product lines become even
more outdated.
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Health Administration Press
Health Administration Press
Life Cycle Analysis:
DeclinePhaseSituationOrganizationInnovation &
StrategyDecline Phase:Market sizeFormal, bureaucratic
structureLow level of innovationHomogeneous and competitive
environmentMostly functional basis of organizationPrice
cuttingModerate differentiation and centralizationConsolidation
of product- marketLess sophisticated info processing systems
and decision making methodsLiquidation of subsidiariesRisk
aversion & conservatism
Slow growth
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Health Administration Press
Health Administration Press
Life Cycle Analysis: Decline
Reasons for Decline
Too much debt 28%
Inadequate leadership 17%
Poor planning 14%
Failure to change 11%
Inexperienced management 9%
Not enough revenue 8%
(Business Week 2003)
What do these reasons have in common?
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Health Administration Press
Health Administration Press
Life Cycle / Competition Matrix
Dodge, Fullerton, and Robbins (1994) suggest a different way to
consider the organizational life cycle.
First, they group organizations into either early stages of
development or late stages of development.
They then consider the level of competition the organizations
are experiencing.
The resulting four-block matrix displays common critical
problems faced by companies in each block.
Strategies can be developed to address the critical problems.
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Health Administration Press
Health Administration Press
Life Cycle / Competition Matrix
Copyright © 2016 Foundation of the American College of
Healthcare Executives. Not for sale.
Health Administration Press
Health Administration Press
Life Cycle / Competition Matrix
Copyright © 2016 Foundation of the American College of
Healthcare Executives. Not for sale.
Health Administration Press
Health Administration Press
Life Cycle / Competition Matrix
Note that the life cycle chart reflects Toyota, the parent
company, and its divisions.
Even though Toyota overall is in maturity, some of its other
divisions are still in the growth stage.
Overlaying the life cycle / competition matrix to the l ife cycle
chart reveals that overall Toyota is in “late stage” life cycle
with “intense competition.” This suggests “critical problems” of
(a) maintaining market position,
(b) furthering its image via focus & differentiation
strategies, and
(c) cost control.
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Health Administration Press
Exercise
Divide up into groups and create a life cycle chart for your
project organization. Include the parent company and any
divisions (if there are any).
What are the implications for strategy?
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Health Administration Press
Birth Growth Maturity Revival Decline
Size of organization
Time
EARLY STAGELATE STAGE
1. Lack of dependencies and2. Environment neither
LITTLE OR NOconstraints in pursuing goalsthreatening or
constraining
COMPETITION
Critical Problems:Critical Problems:
a) Resourcesa) Stabilizing firms position
b) marketing approachb) Formalization & control
c) Formalization of structurec) Stability
d) marketing approach
3. Turbulent environment- may4. Muddling behavior, simply
INTENSEconstrain or dictate actionsreacting
COMPETITION
Critical Problems:Critical Problems:
a) Identify nichesa) Maintain market position
b) Monitor competitionb) Further image via focus &
c) Realignment of the firm differentiation strategies
vis-a-vis the competitionc) Cost control
Source: Dodge, Fullerton & Robbins, Strategic Management
Journal, Vol. 15, 121-134 (1994)
5 ForcesFIVE FORCESISSUEIMPACT ON
COMPANYIMPLICATION FOR STRATEGYThreat of
Entry1.2.3.4.5.Threat of Substitutes1.2.3.4.5.Power of
buyers1.2.3.4.5.Power of Suppliers1.2.3.4.5.Intensity of
Rivalry1.2.3.4.5.FORCEISSUEIMPACT ON
COMPANYIMPLICATION FOR STRATEGYThreat of Entry1.
Government regulation requires licensing and agency approval
prior to manufacturing or sale of product.Company needs a
three year lead time in order to obtain approvalMust include
strategies to address legal and political issues; keeping
competitors at bay during approval lag time, technological
obsolescence and leapfrogging during approval period2. Raw
material currently must be sourced from Asia which limits the
ability of companies to enter due to higher logistics and
transportation costsCost, timing, transportation, quality control,
political opposition to Asian product may hinder approval
processMust include strategies to address cost, timing,
transportation, quality control, political opposition, and
sourcing in the US3. Existing competitors have high profit
margins and a willingness and capability to engage in a
prolonged price war designed to drive a new entrant in the
market out.A price war would reduce the projected profit
margins and make the market undesirable to enterStrategy must
address a method to develop a low cost manufacturing and
distribution system and provide funding to survive a price war4.
Ability of dominant players to buy smaller players, thus
consolidating costs and expanding market share.Industry
consolidation could create one or two "10,000 lb gorillas" that
could dominate the industry and our ability to obtain
contractsStrategy must address proactive defense to industr y
consolidation or develop a method to compete in a consolidated
industry5. Exclusive supplier contracts are in place with major
buyers which currently lock out new suppliersCompany may not
be immediately able to enter into contracts to supply until
existing exclusive contracts by competitors expireMust include
strategies to challenge the propriety of the exclusive supplier
agreements, find a way around such contracts, or enable
company to jump in when such contracts expireThreat of
Substitutes1.2.3.4.5.Power of buyers1.2.3.4.5.Power of
Suppliers1.2.3.4.5.Intensity of Rivalry1.2.3.4.5.
PESTP.E.S.T.ISSUEIMPACT ON COMPANYIMPLICATION
FOR
STRATEGYPolitical1.2.3.4.5.Economic1.2.3.4.5.Social1.2.3.4.
5.Technological1.2.3.4.5.P.E.S.T.ISSUEIMPACT ON
COMPANYIMPLICATION FOR STRATEGYSocial1.2.3.4.5.
CompetativeSome Possible Broad Categories and Sub-
CatagoriesAnalysis example using a "YES" / "NO"
methodIdentify the key broad catagories for your industryYour
CompanyCompetatorCompetatorCompetatorIndustryProduct
relatedFinancialDistribution System:Our Co.Alpha Co.Beta
CoOmega Co.Industry1.Category1.2.3.Implications for your
company's strategy:Product qualityOperating ratioJust in time
delivery systemYESNONOYESNO2.1.1.Product price
pointInventory turnoverVendor managed
inventoryYESYESNOYESYES3.a.2.New product development
rateNumber of days of sales outstandingCaptive trucking
divisionYESYESYESYESYES4b.3.Product replacement
cycleGross margin
ratioUnionizedYESNONONONO5.c.4.InovationReturn on
equitye.5.Product image / reputationRe turn on assetsf.6.Debt-
to-equity ratioAnalysis example using a scoring scale
methodg.7.Sales RelatedEarnings per shareProductOur
Co.Alpha Co.Beta CoOmega Co.Industry8.Market shareProduct
quality122532.9.Distribution networkEmployee RelatedProduct
price point31251a.10.Sales growth %Average number of
employeesNew product development rate14253b.Corporate
ImageAnnual revenue per employeeProduct replacement
cycle14353c.Customer loyaltyAnnual compensation per
employee1 = Superior; 5 = Poore.Service and sales
policiesFlexibility of Organizational
Structuref.AdvertisingAbility to Attract & Retain the best
peopleg.Analysis example using a numeric data reporting
methodManufacturing RelatedDistribution RelatedFinancialOur
Co.Alpha Co.Beta CoOmega Co.Industry3.Annual maintenance
& repair expenseJust in time delivery systemNumber of days of
sales outstanding13076984567a.DowntimeVendor managed
inventoryGross margin %5348673342b.Number of
manufacturing plantsCaptive trucking divisionReturn on equity
%15131337c.Location of manufacturing
plantsUnionizedEarnings per
share.32.53.10.27.33e.Competition’s capacity
utilizationf.Technological capabilityg.Vertical
integrationAnalysis example using a force ranking
methodSalesOur Co.Alpha Co.Beta CoOmega Co.Median4.Some
Possible Broad CatagoriesMarket share12342.5a.Product
relatedSales growth %24312.5b.Financial RelatedCorporate
Image24132.5c.Sales RelatedCustomer
loyalty13242.5e.Employee Relatedf.Manufacturing
Relatedg.Distribution Related5.a.b.c.e.f.g.
SWOTYour companyCompetitor 1Competitor 2Competitor
3EFE AnalysisEFE AnalysisIFE AnalysisIFE
AnalysisInternal:StrengthsWeaknessesInternal:StrengthsWeakne
ssesIMPLICATIONS FOR
STRATEGYStrengthsOpportunitiesWeightRatingScoreOpportun
itiesWeightRatingScoreStrengthsWeightRatingScoreStrengthsW
eightRatingScore11111111Products
expansion0.10040.40011Marketing
Philosophy0.10040.4001External:OpportunitiesThreats2222222
2Stock growth0.02520.05022Social
Responsibility0.10030.300233333333More
exposure0.10020.20033Creative
Products0.10040.400344444444Move towards
globalization0.02510.02544Diverse Product
Line0.02540.100455555555More stadium
contracts0.02520.05055Mass
Customization0.05030.150566666666Expand target
market0.10020.20066Product
Specialization0.03040.120677777777License
agreements0.05030.15077Ethics
Program0.00530.015788888888Company
growth0.02520.05088Quality
Products0.09030.270899999999990.00091010101010101010101
00.00010External:OpportunitiesThreatsWeaknessesRating
Scale: 4= major strength; 3= minor strengthRating Scale: 4=
major strenght; 3= minor
strenght111111ThreatsThreatsWeaknessesWeaknesses2222221
Multiple competitors0.10020.20011Inexperienced mgmt
team0.05010.05013333332Dependency on sugar
cane0.07530.22522Expensive Retail price
structure0.02520.05024444443Suppliers have the
power0.02520.05033Weak marketing
processes0.07510.07535555554Recent
lawsuit0.02520.05044Limited
Distribution0.07510.07546666665License
agreements0.07530.22555Limited Financial
Capability0.02520.05057777776Seasonality of
sales0.05010.05066Small
company0.02520.05068888887Dependence on
suppliers0.05030.15077Informalities of
Company0.05010.05079999998Dependence on contract
packers0.10030.30088Little Brand
Recognition0.10010.10081010101010109Dependence on
distributors0.05030.15099Collection Practices for
receivables0.07510.0759Opportunities1010100.000101111Total
Weight:1.000Total Score:2.525Total Weight:Total Score:Rating
Scale: 1= major weakness 2= minor weaknessRating Scale: 1=
major weakness 2= minor
weaknessSTRENGHTSWEAKNESSES2222Rating Scale:Rating
Scale:Total Weight:1.000Total Score:2.330Total Weight:Total
Score:OPPORTUNITIESTHREATS33334 = Current Response is
Superior4 = Current Response is Superior44443 = Current
Response is Above Average3 = Current Response is Above
Average55552 = Current Response is Average2 = Current
Response is Average66661 = Current Response is Poor1 =
Current Response is
Poor77778888999910101010Threats11112222333344445555666
677778888999910101010
IE MatrixWeighted IFE ScoreWeighted IFE ScoreStrong 3.0-
4.0Average 2.0 to 2.99Weak 1.0 to 1.99Strong 3.0- 4.0Average
2.0 to 2.99Weak 1.0 to 1.99Weighted EFE ScoreHigh 3.0-
4.0AABWeighted EFE ScoreHigh 3.0- 4.0AABMedium 2.0 to
2.99ABCMedium 2.0 to 2.99ABCLow 1.0 to 1.99BCCLow 1.0
to 1.99BCCImplied Strategies-AGrow and BuildIntegration
strategies, intensive strategiesBHold and MaintainMarket
penetration, product development, joint ventureCHarvest or
divestRetrenchment, divesturature , liquidationIntegration
StrategiesForward integration- Ownership or increased control
over distributors or retailers.Backward integration- Ownership
or increased control over suppliers.Horizontal integration-
Ownership or increased control over competitors.Intensive
StrategiesMarket Development- New or present products into
new areas.Product Development- Improving or Modification of
product for increased sales.Market Penetration- Increased share
for present products by increased effort.Defensive
StrategiesJoint Venture- When two or more firms join & create
a third co-owned firmRetrenchment- Organization regroups
using cost and asset reduction techniquesDivestiture- Selling a
product line, division, or business unitLiquidation- Selling all
of the company assets.Diversification StrategiesConcentric
Diversification Adding new but related products.Horizontal
Diversification Adding new Unrelated products for present
customers. Firm knows customers.Conglomerate Diversification
Adding new unrelated products. Firm not familiar with customer
base.SummaryMergers/Buyouts.Mergers Buy similar sized
companies.Leveraged Buyouts Shareholders are bought
out.Generic StrategiesCost Leadership strategies Striving to be
the low cost provider. ~WalMartDifferentiation Strategies To
stand out,~service,performance,useful life,ease of use.Focus
Strategies Concentration after certain customer or area
attributes.
FinancialRATIOCALCULATIONWHAT IT TELLS
USRATIOYear 1Year 2% + / -Year 3% + / -Year 4% + / -Year
5% + / -RATIOCompanyIndustry% + / -Competitor 1% + / -
Competitor 2% + / -Competator3% + / -Liquidity
RatiosLiquidity RatiosLiquidity RatiosCurrent RatioCurrent
assetsIf a Firm's short-term assets are readily available to pay
off its short-term liabilitiesCurrent RatioCurrent RatioCurrent
liabilitiesQuick or Acid-Test RatioQuick or Acid-Test
RatioLeverage RatiosLeverage RatiosQuick or Acid-Test
RatioCurrent assets – inventoryThe amount of the most liquid
current assets available to cover current liabilitiesDebt-to-
Total-Asset RatioDebt-to-Total-Asset RatioCurrent
liabilitiesDebt-to-Equity RatioDebt-to-Equity RatioLeverage
RatiosLong-Term Debt-to-EquityLong-Term Debt-to-
EquityDebt-to-Total-Asset RatioTotal liabilitiesThe amount of
leverage being used by a company.Times-Interest-Earned
RatioTimes-Interest-Earned RatioTotal assetsActivity
RatiosActivity RatiosInventory-Turnover RatioInventory-
Turnover RatioDebt-to-Equity RatioTotal liabilitiesMeasures
how much debt a firm has compared to shareholders
equityTotal-Asset TurnoverTotal-Asset TurnoverShareholders
EquityFixed-Asset TurnoverFixed-Asset TurnoverAverage
Collection PeriodAverage Collection PeriodLong-Term Debt-to-
Equitylong term liabilitiesMeasures how much long term debt a
firm has compared to shareholders equityProfitability
RatiosProfitability RatiosShareholders EquityGross Profit
MarginGross Profit MarginOperating Profit MarginOperating
Profit MarginTimes-Interest-Earned RatioEBITDetermines how
easily a company can pay interest expenses on outstanding
debtNet Profit MarginNet Profit MarginInterest chargesReturn
on Total Asset (ROA)Return on Total Asset (ROA)Activity
RatiosReturn on Stockholders’ EquityReturn on Stockholders’
EquityInventory-Turnover RatioSalesHow long sales inventory
waits to be soldReturn on Capital EmployedReturn on Capital
EmployedInventoryEarnings per ShareEarnings per
ShareEBITDAEBITDATotal-Asset TurnoverSalesThe
relationship between assets and revenueGrowth RatiosGrowth
RatiosTotal assetsSales increaseSales increaseEarnings per
ShareEarnings per ShareFixed-Asset TurnoverSalesThe
relationship between fixed assets and revenueDividends payout
ratioDividends payout ratioFixed assetsValuationVal uationP/E
RatioP/E RatioAverage Collection PeriodReceivablesHow long
it takes a firm to collect payment from it's customersPrice to
Book ratioPrice to Book ratioSales per dayPEG RatioPEG
RatioProfitability RatiosProfit margin on salesProfit margin on
salesGross Profit MarginGross profitThe amount of gross profit
as a percent of salesReturn on net worthReturn on net worthNet
salesJanuary 1st stock priceJanuary 1st stock priceNet
IncomeNet IncomeOperating Profit MarginOperating profitThe
amount of operating profit as a percent of salesGross
incomeGross incomeNet salesNet Profit MarginNet incomeThe
amount of net profit as a percent of salesNet salesReturn on
Total Asset (ROA)Net incomeHow well management is using
the company's assets to earn a profit.Total assetsReturn on
Stockholders’ EquityNet incomeMeasures how much
shareholders earned on their investment in the firmShareholders
equityReturn on Capital EmployedEBITIndicates the efficiency
and profitability of a company's capital investmentsTotal assets -
current liabilitiesEarnings per ShareNet income- preferred stock
dividendsprofit per share of common stock outstandingShares
outstandingEBITDAprofit per share of common stock
outstanding adjusted for interest, taxes, depreciation &
amortizationGrowth RatiosSales increaseCurrent year
salesPercent increase in sales year over yearPrior year
saleEarnings per ShareNet income- preferred stock
dividendsHow much profit is earned for each share of common
stockAverage outstanding sharesDividends payout
ratioDividends per common shareThe portion of a company's
earnings paid relative to each common shareEarnings per
shareValuationP/E RatioPrice per sharehow much investors are
willing to pay per dollar of earnings.Earnings per sharePrice to
Book ratioPrice per shareCompares a firm's market value to its
book valueTotal assets-intangible assets & liabilitiesPEG
RatioP/E RatioDetermines a stock's value while taking into
account earnings growth (<1= undervalued)Annual EPS
growthProfit margin on salesNet incomeHow much profit a
company makes on it's salesSalesReturn on net worthNet
incomeProfit as related to the firm's net worthNet worth
BCGHighSTARQUESTION
MARKHighHighAABMARKETGROWTHRATEMARKETMAR
KETABCATTRACTIVENESSATTRACTIVENESSMediumLow
CASH COWSDOGSHighLowBCCRELATIVE MARKET
SHAREHighLowLowHighLowHighMediumLowBUSINESS
STRENGTHBUSINESS
STRENGTHMARKETGROWTHRATEGeneral Strategies Based
on Matrix Location:AGrow & Build:Integration strategies,
intensive strategiesBHold & Maintain:Market penetration,
product development, joint ventureCHarvest &
divest:Retrenchment, divesturature ,
liquidationLowHighLowRELATIVE MARKET SHARE
Life CycleEARLY STAGELATE STAGEReasons For Decline1.
Lack of dependencies and2. Environment neitherToo much
Debt28%LITTLE OR NOconstraints in pursuing
goalsthreatening or constrainingInadequate
Leadership17%COMPETITIONPoor Planning14%Critical
Problems:Critical Problems:Failure to Change11%a)
Resourcesa) Stabilizing firms positionInexperienced
Management9%b) marketing approachb) Formalization &
controlNot Enough Revenue8%c) Formalization of structurec)
Stabilityd) marketing approach*Source: Buccino and
Associates: Seton Hall University, as reported in August 25,
2003, Business Week.3. Turbulent environment- may4.
Muddling behavior, simplyINTENSEconstrain or dictate
actionsreactingCOMPETITIONCritical Problems:Critical
Problems:a) Identify nichesa) Maintain market positionb)
Monitor competitionb) Further image via focus &c)
Realignment of the firmdifferentiation strategiesvis-a-vis the
competitionc) Cost controlSource: Dodge, Fullerton & Robbins,
Strategic Management Journal, Vol. 15, 121-134
(1994)CORPORATE LIFE
CYCLEPhaseSituationOrganizationInnovation & StrategyBirth
Phase:Small firmInformal structureConsiderable innovation in
product linesYoungUndifferientedNiche StrategyDominated by
owner/ managerPower highly centralizedSubstantial risk
takingHomogenous/ placid environmentCrude information
processing & decision making methodsGrowth Phase:Medium
sizedSome formalization of structureBroadening of product-
market scope into closely related areasOlderFunctional basis of
organizationIncremental innovation in product linesMultiple
share holdersModerate differentiationRapid growthA more
heterogeneous & competitive environmentSomewhat less
centralizedInitial development of formal information processing
& decision making toolsMaturity Phase:LargerFormal,
bureaucratic structureConsolidation of product- market
strategyEven olderFunctional basis of organizationFocus on
efficiently supplying a well defined marketDispersed
ownershipModerate differentiationConservatismheterogeneous
& competitive environmentModerate centralizationSlow
growthInformation processing & decision making same as
growth stageRevival Phase:Very largeDivisional basis of
organizationStrategy of product- market diversification;
movement into some unrelated marketsVery heterogeneous,
competitive, dynamicHigh differentiationHigh level of risk
taking & planningSophisticated control, scanning, and
communications in info. processing; more formal analysis in
decision makingSubstantial innovationRapid growthDecline
Phase:Market sizeFormal, bureaucratic structureLow level of
innovationHomogeneous and competitive environmentMostly
functional basis of organizationPrice cuttingModerate
differentiation and centralizationConsolidation of product-
marketLess sophisticated info processing systems and decision
making methodsLiquidation of subsidiariesRisk aversion &
conservatismSlow growthSource: Miler and Friesen,
Management Science, Vol. 30, No. 10 (Oct., 1984), pp. 1161-
1183
CultureCULTURAL ASPECTSCORE (+5 TO -5)Are control and
reward mechanisms effective?Are job responsibilities clearly
understood?Are company policies & procedures appropriate and
effective?Capacity for retaining personnelNewClearly
articulated and shared missionCohesiveness and
collaborationDegree of innovationDo employees have latitude in
job execution?Do managers delegate authority?Do the leaders
live the values and walk the talk?ExistingDoes the organization
aggressively pursue change and innovation?Does the
organization effectively deploy employee teams through the
company?Employee attitudesEmployee empowermentEmployee
MotivationEmployee participation in decisionsEnabling others
to actEncouraging the heartEnforcement of policiesEffective
Human Resource ManagementInnovation and change to
processIs employee compensation fair / competitive?Is
employee morale high?Is power centralized or shared
throughout the organizationIs the organization’s structure
appropriate for the proposed strategy?Is there open and constant
communication from management to employeesKey executive’s
styleLifecycle stage of organizationOpenness and
trustOpportunities for employee growth &
developmentOrganizational climateOrganizational
StructurePassion for the product or companyPerception of job
securityRecognition of individualsRewards for performanceRisk
toleranceSense of belongingSense of urgencyShared
VisionUnion RelationsWhat are the founder’s beliefs & what
influence do they have?
AnsoffNewNewMarket
DevelopmentDiversification(Risk=Moderate)(Risk=High)11223
344Markets55Market PenetrationProduct
DevelopmentExistingExisting(Risk=
Low)(Risk=Moderate)1122334455ExistingNewProducts &
Services
Sheet1European ExpansionProduct ExpansionEuropean
ExpansionProduct ExpansionStrategy 1Strategy 2Strategy
3Strategy 4OpportunitiesWeightAttractiveness ScoreTotal
Attractiveness ScoreAttractiveness ScoreTotal Attractiveness
ScoreOpportunitiesWeightAttractiveness ScoreTotal
Attractiveness ScoreAttractiveness ScoreTotal Attractiveness
ScoreOpportunitiesWeightAttractivene ss ScoreTotal
Attractiveness ScoreAttractiveness ScoreTotal Attractiveness
ScoreAttractiveness ScoreTotal Attractiveness
ScoreAttractiveness ScoreTotal Attractiveness Score1Products
expansion0.10020.20040.4003More
exposure0.10040.40020.20012Stock
growth0.02540.10040.10023More
exposure0.10040.40020.20034Move towards
globalization0.02540.10000.00045More stadium
contracts0.02510.02510.02556Expand target
market0.10040.40030.30067License
agreements0.05020.10010.05078Company
growth0.02540.10040.10089ThreatsThreats1Multiple
competitors0.10020.20030.30012Dependency on sugar
cane0.07500.00000.00023Suppliers have the
power0.02520.05020.05034Recent
lawsuit0.02500.00000.00045License
agreements0.07520.15020.15056Seasonality of
sales0.05040.20030.15067Dependence on
suppliers0.05020.10010.05078Dependence on contract
packers0.10030.30000.00089Dependence on
distributors0.05030.15020.100910Total Weight:1.000Total
Weight:StrengthsStrengths1Marketing
Philosophy0.10030.30040.40012Social
Responsibility0.10020.20020.20023Creative
Products0.10040.40040.40034Diverse Product
Line0.02540.10040.10045Mass
Customization0.05030.15020.10056Product
Specialization0.03030.09030.09067Ethics
Program0.00510.00510.00578Quality
Products0.09030.27030.27089WeaknessesWeaknesses1Inexperi
enced mgmt team0.05010.05010.05012Expensive Retail price
structure0.02520.05020.05023Weak marketing
processes0.07520.15010.07534Limited
Distribution0.07540.30020.15045Limited Financial
Capability0.02510.02520.05056Small
company0.02520.05030.07567Informalities of
Company0.05010.05020.10078Little Brand
Recognition0.10020.20040.40089Collection Practices for
receivables0.07500.00000.000910Total
Weight:1.0004.9654.490Total
Weight:TAS:TAS:0.000TAS:0.000TAS:0.000
FinanceDataDescriptionDataDescriptionDataDescription10%An
nual discount rate10%Annual discount rate10%Annual discount
rate$ (10,000,000)Initial cost of investment one year from
today$ (10,000,000)Initial cost of investment one year from
today$ (10,000,000)Initial cost of investment one year from
today$ 3,000,000Return (less costs) from first year$
3,000,000Return (less costs) from first year$ 3,000,000Return
(less costs) from first year$ 4,200,000Return (less costs) from
second year$ 4,200,000Return (less costs) from second year$
4,200,000Return (less costs) from second year$
6,800,000Return (less costs) from third year$ 6,800,000Return
(less costs) from third year$ 6,800,000Return (less costs) from
third year$ 4,000,000Total Return$ 4,000,000Total Return$
4,000,000Total Return$ 1,188,443NPV16%IRR$
1,188,443NPV1.12PI8%YearCash
Flows0($10,000)1$1,5002$2,5003$4,0004$3,0005$3,0006$3,00
0$2,634.18npv1.26PI
Example: TOYOTA MOTOR COMPANY
Birth Growth Maturity Revival Decline
Size of Company
Time
DAIAHATSU
TOYOTA
HINO
LEXUS
Overall Toyota is in “Late Stage” lifecyc le
with “Intense Competition.” This suggests
“Critical Problems” of a) Maintain market
position, b) Furthering its image via focus &
differentiation strategies and c) Cost
control
Exhibit 15.6
Critical Analysis Essay Assignment 1302Part I The fi

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Critical Analysis Essay Assignment 1302Part I The fi

  • 1. Critical Analysis Essay Assignment: 1302 Part I: The first part of the assignment is to find an example of a visual argument with written OR spoken text of some sort in it. Examples of this can include: A meme or gif, a short [1 minute maximum] video (advertisements, tik tok videos, etc. are good examples), and/or photo/ work of art. Note: Keep the videos short [1 minute or less] and self-contained(e.g. do not pick a scene from a movie, video, or part of a longer filmed work, etc.) You will choose it, but it must include the following: It must contain language (either spoken or written, or both) and images (either moving or stationary). The images and text must allow for outside context (outside interpretation that involves time, place, cultural attitudes, economic conditions, etc.) to be added for one to fully understand its meaning It must be from a source that is reliable/ vetted in some way (e.g. Facebook, Youtube, Twitter, TikTok=okay; 4 Chan, 8 Chan or anonymous source= not okay) If it is a video, it should be no longer than a few minutes (1 minute max). Part II: You will next write a Visual Analysis Essay about this video/image & written text. This visual analysis essay should do the following: 1. It should examine the content that is in the video/ image, etc. by summarizing [if it is a video] or describing it [if it is a stationary visual image(s)].
  • 2. 2. It should present a claim that identifies why/ how the image/ video, etc. is important, salient, compelling, etc. by interpreting its meaning. 3. It should identify the audience that the text [including the images] is aimed at, primarily and give reasoning that supports that supposition. 4. It should present any greater context that is missing from the visual argument that is important to understanding that argument better. 5.It should consider the logic of the argument presented by the image, video and/or images by considering whether the argument addresses the topic appropriately, gives appropriate context, etc. Here are some questions to consider when writing your essay: 1. How does the written and visual text support the meaning that of the visual image and make it powerful? 2. What is the purpose of a particular symbol, image, language and/or setting and how does it support the meaning you are giving to this visual image(s) w/ text? 3. How do the visual and textual elements ‘prove’ the claim that you are making about the video,image, etc.? Essay Requirements: The essay should be 1000-1200 words in length (at least 4 full pages and no more than 5 full pages). It should include 2-4 direct quotes of language from the work that you chose to analyze. It should contain a works cited page, and this MUST contain the original source that you are examining. It should be MLA formatted, be written in 12pt, Times New Roman font. [I will provide an MLA generator website link with example docs] It needs to be written using the third person only(no first or second person) throughout, and should address the claim/ argument your essay is making about the image and text, not your personal feelings about it. It should give analysis throughout (see example) and not talk
  • 3. about what it contains . It can [but does not have to] contain one (1) outside source, but this research should ONLY provide some context for the video/ image. The research should come from an unbiased/ neutral site. Wikipedia or the LSC Library Facts on File:Issues and Controversies or Gale Opposing Viewpoints sites. A rough draft of the essay is due next Sunday Feb 20TH, 2021. The final draft is due Feb 21stby 11:59PM for full credit in the drop box entitled “Visual Analysis Final Essay.” Hints as to how you may want to organize your essay. Note: Be sure each paragraph has a specific purpose. You can organize your analysis in many ways, but here are the easiest ways: Pattern A: Topic based Introductory paragraph that explores the topic with context 2nd paragraph contains Elements of the visual text (summary)w/main claim which includes your interpretation of the meaning/importance 3rdparagraph: audience for the visual source and why this topic is Important? 4thparagraph: elements in the video that lead you to understand its importance (symbols, colors, actions of people that are not literal but inferred, etc.) based on topic 5thparagraph: See above (if necessary) Conclusion + brief recap
  • 4. Pattern B: Introduction w/elements summary main claim including primary argument about visual elements’ meaning. Element #1 (images) that supports argument Element #2 (text) that support argument Elements #3 (symbols, music, etc) that supports argument Conclusion + Recommendation. Discussion 2.1: Choose Your Organization! Curtis Hill posted Jan 12, 2021 5:03 PM This page automatically marks posts as read as you scroll.Adjust automatic marking as read setting The selected healthcare organization is the Memorial Regional Hospital, Hollywood, Fla-1014. This healthcare facility was established in 1953 under the umbrella of the Memorial Healthcare System that also includes the Memorial Regional Hospital South and the Memorial Hospital Pembroke among others (LeValley & Page, 2011). The hospitals under this flagship are public and non- profit hospital system. They are governed by the South Broward Hospital District Board of Commissioners that consists seven- member district board. The members are the appointee of the Governor whereas the Chief Executive Officer and the President is the being appointed by the Board of the Commissioners. The website of the organization is www.mhs.net/locations/memorial- regional
  • 5. The Memorial Regional facility is among one of the seven-level I trauma centers in the state. The facility is selected because it using an expanded and modernized ED that makes it a busy facility within Broward County. Another reason for the selection of this facility is that it also operates institutions. The Hospital is running the Memorial Cardiac and Vascular Institute; Memorial Cancer Institute; and a Breast Cancer Center as well as the Memorial Neuroscience Center. The facility is also hosting the largest number of patients. It admits 37,431 patients with its ED receiving a total of 126,288 patients. It also hosts a total of 8,169 inpatients and 6,464 outpatient surgeries (Memorial Healthcare System, n.d). The hospital is hosting several specialists for example pathologists, cardiologists, pediatricians, emergency medical teams, neonatal and perinatal medical specialists, neurosurgeons, obstetric and gynecologists, pulmonologis ts, physician assistants, and internal medicine specialists. The hospital is having more than 6,700 employees who partner with physicians, and hundreds of volunteering members who are helping in the improvement of the health of the communities (Memorial Healthcare System, n.d ). References LeValley, C., & Page, L. (2011, November 21). 20 Largest Public Hospitals in the United States. Retrieved from Becker's Hospital Review: https://www.beckershospitalreview.com/lists- and-statistics/20-largest-public-hospitals-in-the-united-
  • 6. states.html Memorial Healthcare System. (n.d ). Memorial Regional Hospital. Retrieved from https://www.mhs.net/locations/memorial-regional Curtis Hill Assignment 03: Benchmark: A Starting Point HA4110D - Healthcare Planning and Evaluation Robin Bolton January 24, 2021 Pharmaceutical Industry The Pharmaceutical industry is known for discovering, developing and producing drugs or medications that are administered to patients with the intention of curing, vaccinating or alleviating symptoms of different diseases (Farooq, 2020). The Pharmaceutical industry usually deals with brand or generic medications and also the production of medical devices. This industry is closely related to the health sector because the drugs which are used in the hospitals are usually manufactured by these industries. Pharmaceutical industries are majorly affected by environmental factors which include political, economic, social and technology. For political factors, this industry is subject to variety of laws set by states for regulation in developing, testing and also marketing of the drugs produced. Government agencies and other drug related laws usually govern the operations of this industry for the safety and health of the patients who receive these medications (Farooq, 2020). There are also regulations on where these drugs can be sold, because these manufactured
  • 7. drugs can be sold directly to the patients or to hospitals and other pharmacies. These regulations that govern this industry also have a positive advantage because they act as a barrier to entry of new competitors and therefore it is hard for new industries to venture in this business giving the established companies least competition. There is also pressing pressure when it comes to selling these drugs to the consumers. This is because these drugs are lifesaving and therefore the government cannot allow these industries to sell them at a higher price which will make them unavailable to the needy. In the past the prices of these drugs were not controlled by the government, but the industry started hiking the prices such that they were not affordable to many of the patients and therefore the government took over to controlling the pricing of these drugs (Bush, 2019). In the economy factor the health care spending is steadily growing because of other factors such as increased lifestyle diseases and therefore this has led to increased or greater revenues for this industry. As for social factors there is a growth in the ageing population which means that there is an increase in age related health complications therefore the pharmaceutical industry will be able to produce more drugs to cure such complications (Farooq, 2020). With the growth in the ageing population this means that the production of age-related drugs will also increase therefore increasing the revenue of the pharmaceutical industries. There is also increased growing obesity rates in the current generation which lead to increased lifestyle diseases such as diabetes. Such health-related diseases mean that the pharmaceutical industries have to come up with the drugs to cure these diseases which means that the revenue will be increased because a lot of people need these drugs to cure the lifestyle diseases. There is also a health-conscious trend in the current generation meaning that people are striving to live healthy and take supplements to keep their immune system in check, presenting an opportunity for the pharmaceutical
  • 8. industry to provide health related solutions to this generation, hence growing its revenue. As for the technology there is a growth in biotechnology industry which can take from the pharmaceutical industry because bio technological industries are focused on producing healthier food options and substituting their normal options that usually cause diseases and therefore there will be a reduced need for massive pharmaceutical treatment in the future (Bush, 2019). The Process of producing a new drug is usually complex and filled with risks and therefore a competitive market benchmark analysis is very important in the Pharmaceutical industry. This industry is highly competitive as for the current top 10 pharmaceutical industries, nine of them come from the United States and therefore this industry is very competitive in the United States (White, et al, 2019). These companies usually compete amongst themselves and both of them produce generic and branded drugs. The productor service categories in the committed care industry include oral drugs, parental formulations, novel drugs formulations, topical medicine oncological formulations and modified medical formulations (Yaseen, et al, 2018). These different types or group of drugs are important in the pharmaceutical industry and therefore there is a competition of producing all these categories which are in high demand. Chief providers of these medicines are images of competition in the pharmaceutical industry and every company is focused on providing a better version of the same drug which is more effective and also affordable. References Bush T. (2019). PESTLE Analysis of the Pharmaceutical Industry. Retrieved from https://pestleanalysis.com/pestle- analysis-of-pharmaceutical-industry/
  • 9. Calcagno, C., Chapsal, A., & White, J. (2019). Economics of excessive pricing: an application to the pharmaceutical industry. Journal of European Competition Law & Practice, 10(3), 166- 171. Retrieved from https://academic.oup.com/jeclap/article/10/3/166/5362539?login =true Farooq U. (2020). PESTLE Analysis of The Pharmaceutical Industry. Retrieved from https://www.marketingtutor.net/pestle- analysis-of-the-pharmaceutical-industry/ Yaseen, M. M., Sweis, R. J., Abdallah, A. B., Obeidat, B. Y., & Sweis, N. J. (2018). Benchmarking of TQM practices in the Jordanian pharmaceutical industry (a comparative study). Benchmarking: An International Journal. Retrieved from https://www.emerald.com/insight/content/doi/10.1108/BIJ-04- 2017-0076/full/html Curtis Hill Assignment 04: Introduction to SWOT-EFE HA4110D - Healthcare Planning and Evaluation Robin Bolton January 31, 2021
  • 10. STRATEGIC ANALYSIS The health industry has a very dynamic environment that is affected by numerous factors, both internal and external ones. The services provided by healthcare organizations are related to patient satisfaction, loyalty, productivity, and profitability. Therefore, it is vital to define, measure, and enhance the quality of healthcare services. Effective leadership integrated with teamwork in any organization makes a difference when meeting such factors to mitigate challenges. A consistent evaluation process is necessary for identifying all factors affecting the working success of an organization. Different influences may impact the success of a company. These fall into two categories: external and internal factors. External factors are the surrounding environment of healthcare organization that impacts their performance and quality services. Patient socio-demographic factor influences the interaction among a provider and the patient as well as the quality of the medical service. This factor can hinder the successful operation of these services if there is no clear understanding between the patient and the physician. A physician needs to identify with the patient's socio-demographic variables to help in communicating better with them and win their trust (Bielecki & Nieszporska, 2019). This can affect the organization as it contributes to medical errors or wrong administration of medications if the patient doesn't provide eight information to the physician due to misunderstanding. The attitudes and behavior of the patients affect the attitude of the caregiver because if they behave themselves, quality care is offered unintentionally by the providers. The slow diffusion of medical knowledge is an external factor affecting healthcare organizations. The acceptance of new discoveries into clinical practice can take more period than required. Even if it is a way of ensuring that patients receive drugs, procedures, and interventions that are effective, it hinders the progress of important interventions as they cannot be practiced till proven. Unfortunately, there is no simple solution to this factor.
  • 11. The severity of illnesses is another external factor. The kind of illness handled in health organizations increases stress among physicians, thus affect the entire quality of medical services. For instance, when the mortality rate keeps increasing, it creates anxiety and stress among staff, which in turn affects the quality of medical services. Continuous training and educational advancements are opportunities that affect healthcare organizations Willis et al., 2018). This contributes to professional who is key in providing medical services. They provide measures for assessment, developing, and fine-tune key individual and professional skills to remain expert. Therefore, the healthcare organization can handle any complex situations in the changing environment to provide quality services. The practice of medicine and technology have produced opportunities through how health workers practice medicine now and in the future. Technology has made massive impact in healthcare, such as enhancing access to medical data and files. It permits information to be retrieved from anywhere hence, permits providers to share medical data rapidly with one another leading to more effective patient care (Cantor & Poh, 2018). EHR has made medical billing easier, faster, and smoother. Patient medical records are secured and stored in an organized manner and centralized storage of patient's data. This makes the work of health providers easier as they have quick access to data for improved care and better results. The Healthcare organization is very complex due to the changes needs of patients and modern advancements. To properly deal with threats and opportunities, healthcare managers should show direction and guidance to the roles, responsibilities, and function. They have to find ways that the external factors, especially the opportunities, can be constructed to be beneficial to the organization to enhance the quality of services provided. They should devise and revise strategies that every provider can adhere to and comprehend. The choices made by healthcare directors should focus on providing quality care but also address the needs of health providers and ways to increase their
  • 12. proficiency. References Bielecki, A., & Nieszporska, S. (2019). Analysis of healthcare systems by using systemic approach. Complexity, 2019. Retrieved from https://www.hindawi.com/journals/complexity/2019/6807140/ab s/ Cantor, V. J. M., & Poh, K. L. (2018). Integrated analysis of healthcare efficiency: a systematic review. Journal of medical systems, 42(1), 1-23. Retrieved from https://link.springer.com/article/10.1007/s10916-017-0848-7 Willis, G., Cave, S., & Kunc, M. (2018). Strategic workforce planning in healthcare: A multi-methodology approach. European Journal of Operational Research, 267(1), 250-263. Retrieved from https://www.sciencedirect.com/science/article/pii/S0377221717 310196
  • 13. Running Head: BUSINESS STRATEGY 1 BUSINESS STRATEGY 4 Business Strategy Institutional Affiliation Date Christiana Care Health System Organization’s Mission Statement The mission of the Christiana Care Health System is to serve the general Delaware community by offering high quality health care services that target patients with heart diseases, cancer, and other illnesses while offering teaching services to students who would fulfil the organization’s vision. First Guiding Principle: What We Do? The health system, which is currently located in Delaware, provides several healthcare services. One of the services offered by this institution revolves teaching services since the institution has a teaching hospital that consists of two campuses. The health system has managed to offer this particular service to both medical and dental students. Other services offered by this particular institution revolve around cancer treatment, cardiology, trauma treatment services, and women health services. The hospital is known for its excellence when considering the services mentioned above (Wayland, & McDonald, 2016). This shows that the organization is working parallel to its mission to offer excellent and quality healthcare services to its patients. The cancer treatment services have led the health system to be well-known since the number of
  • 14. radiology procedures held back in 2013 surpassed 300,000. Innovative and affordable health care systems have been adopted by this particular organization due to its effectiveness and the fact that systems of care are highly valued by the community. The health system also offers rehabilitation and neonatal intensive care services to its patients. In the country, it ranked 21st when considering the volume of admissions. This shows that this particular hospital has a competitive advantage over a good number of hospitals located in the region and the country as well. The philosophy of this particular organization revolves around offering affordable and quality care to its patients further benefiting the community at large (Wayland, & McDonald, 2016). Second Guiding Principle: Where Are We Going? The organization vision’s statement is to be build an effective, affordable, and valuable system of care that will be of value to the patients since the system will focus on the needs and wants of the patients and neighbors. The organization has managed to rank among top thirty when considering the volume of admissions in the country. The same ranking has been seen when considering other aspects such as surgeries conducted, emergency visits, and births. The organization wants to focus on the community. This has led to the development of a system of a care that will offer value to the neighbors as stated in the short description of the company (Wayland, & McDonald, 2016). The vision of the company is to understand what is valuable to the patients admitted in the hospital. This particular aspect will improve the services offered by the organization since the medical practitioners will offer services respectfully while showing compassion to the patients. The vision of the organization focuses on learning more about the neighbors, who they really are, their wants and needs. This particular vision will also improve the services offered by the organization to the neighbors since the health system will have met the needs and wants of the neighbors. Hence, the primary vision of the
  • 15. organization is to build a better relationship with the neighbors by understanding their needs and wants. Third Guiding Principle: How Will We Get There? The hospital will achieve its vision by offering affordable and valuable services to the patients that meet the needs and wants of the neighbors. This aspect will be possible through partnership between the organization, the patients, and the family members of the patients. The partnership will contribute to the development of a valuable, affordable, and effective system of care that will meet the needs and wants of the patients and the neighbors as well (Wayland, & McDonald, 2016). References Wayland, M. S., & McDonald, W. G. (2016). Strategic analysis for healthcare: Concepts and practical applications. Running head: BCG MATRIX ANALYSIS 1 BCG MATRIX ANALYSIS 2 Title Student’s name Instructor Course Date
  • 16. BCG MATRIX ANALYSIS McKinsey 7s model is a tool that is used in analyzing the organizational design. This is done through examining seven vital organizational internal elements. “These elements include systems strategy, structure, collective values, styles, skills, and staff” (Gechkova, T., & Kaleeva, 2020). This is done to effectively identify these factors are appropriately aligned to allow the organization to achieve its objectives. The Boston consulting group model (BCG) analyzes an organization's products or services. The matrix is fabricated basing on the relative market share and the growth rate of the market. These are the two significant factors forming the four BCG matrix quadrants. The y-axis, which represents the growth rate of the market, helps measure the appeal or the market demand. When there is a high growth rate in the market, there are more opportunities, and thus there is a high earning potential. The x-axis represents the relative share of the market. It evaluates the competitive strength looking at the revenue generated by the divisions or products of an organization. CoxHealth Foundation will be analyzed in this case. This foundation's system is defined by capital improvement, which is defined as a star, the clinics are defined as a “cash cow”, the community impact initiative is defined as a “question mark”, and charity is defined as a “dog” (CoxHealth. 2017). This will be shown in the BCG matrix. The capital improvements require large investments so that the company can stay ahead. The cash flow may start as negative until the time when there are improvements made and business
  • 17. resumes as normal. As time continues, cash flow will become profitable if there is a good plan in place. The organization clinics are a very instrumental revenue source for this organization. High and stable cash flow are very important for this company. There is a good strategy of investing in maintaining the organization's current level. The organization's community impact initiative (a question mark) is vital in the community. The charities (a dog) usually have a neutral or negative cash flow (Pascaris, 2017). The organization fund has numerous finances that help the people who cannot afford the care they need frantically. For full support, the applicants are supposed to fill a form and fulfill the requirements highlighted for the various funds. CoxHealth BCG matrix High Stars capital improvements The stars are monies spent on new technology, renovations, expansions, information system, and purchase of new equipments and offering services to the patients ( CoxHealth Foundation. 2017). These improvements are aimed at improving the quality of patients care. quality care will gradually help in generating income to the organization Question marks Community initiatives This organization sent a total of $868151180 to the community. This was done through initiatives as well as donated medical services. These initiatives are considered as community investments. They may not bring revenue to the organization but is very important in boosting the reputation of the organization. Cash cows Clinics The primary care clinics of this organization create the largest revenue. The organization has more than 150 primary care physicians serving more than 12000 patients
  • 18. Dogs Charity This foundation has various funds that helps in funding individuals who are completely unable to afford the required care. This is solely dependent on fundraisers and donations. Low High low References CoxHealth. (2017). About us. Community impact. Retrieved from CoxHealth website: https://www.coxhealth.com/about- us/community-impact/ CoxHealth Foundation. (2017). Patient Assistance. Retrieved from CoxHealth Foundation website:https://www.coxhealthfoundatio n.com/to- receive/patient-assistance/ Gechkova, T., & Kaleeva, T. (2020). THE MCKINSEY 7S MODEL IN THE AIRPORT SYSTEM PROTECTION. Knowledge International Journal, 42(5), 843- 848. Pascaris, M. (2017, March 08). Fitch affirms CoxHealth (MO) at ‘A’; Outlook stable. Retrieved from https://www.fitchratings.com/site/pr/1020240
  • 19. References Running Head: STRATEGIC ANALYSIS 1 STRATEGIC ANALYSIS 5 External factors Student’s name Institutional affiliation Date The health industry has a very dynamic environment that is affected by numerous factors, both internal and external ones. The services provided by healthcare organizations are related to patient satisfaction, loyalty, productivity, and profitability. Therefore it is vital to define, measure, and enhance the quality
  • 20. of healthcare services. Effective leadership integrated with teamwork in any organization makes a difference when meeting such factors to mitigate challenges. A consistent evaluation process is necessary for identifying all factors affecting the working success of an organization. Different influences may impact the success of a company. These fall into two categories; external and internal factors. External factors are the surrounding environment of healthcare organization that impacts their performance and quality services. Patient socio-demographic factor influences the interaction among a provider and the patient as well as the quality of the medical service. This factor can hinder the successful operation of these services if there is no clear understanding between the patient and the physician. A physician needs to identify with the patient's socio-demographic variables to help in communicating better with them and win their trust (Bielecki & Nieszporska, 2019). This can affect the organization as it contributes to medical errors or wrong administration of medications if the patient doesn't provide eight information to the physician due to misunderstanding. The attitudes and behavior of the patients affect the attitude of the caregiver because if they behave themselves, quality care is offered unintentionally by the providers. The slow diffusion of medical knowledge is an external factor affecting healthcare organizations. The acceptance of new discoveries into clinical practice can take more period than required. Even if it is a way of ensuring that patients receive drugs, procedures, and interventions that are effective, it hinders the progress of important interventions as they cannot be practiced till proven. Unfortunately, there is no simple solution to this factor. The severity of illnesses is another external factor. The kind of illness handled in health organizations increases stress among physicians, thus affect the entire quality of medical services. For instance, when the mortality rate keeps increasing, it creates anxiety and stress among staff, which in turn affects the quality of medical services. Continuous training and educational
  • 21. advancements are opportunities that affect healthcare organizations Willis et al., 2018). This contributes to professional who is key in providing medical services. They provide measures for assessment, developing, and fine-tune key individual and professional skills to remain expert. Therefore, the healthcare organization can handle any complex situations in the changing environment to provide quality services. The practice of medicine and technology have produced opportunities through how health workers practice medicine now and in the future. Technology has made massive impact in healthcare, such as enhancing access to medical data and files. It permits information to be retrieved from anywhere hence, permits providers to share medical data rapidly with one another leading to more effective patient care (Cantor & Poh, 2018). EHR has made medical billing easier, faster, and smoother. Patient medical records are secured and stored in an organized manner and centralized storage of patient's data. This makes the work of health providers easier as they have quick access to data for improved care and better results. The Healthcare organization is very complex due to the changes needs of patients and modern advancements. To properly deal with threats and opportunities, healthcare managers should show direction and guidance to the roles, responsibilities, and function. They have to find ways that the external factors, especially the opportunities, can be constructed to be beneficial to the organization to enhance the quality of services provided. They should devise and revise strategies that every provider can adhere to and comprehend. The choices made by healthcare directors should focus on providing quality care but also address the needs of health providers and ways to increase their proficiency.
  • 22. References Bielecki, A., & Nieszporska, S. (2019). Analysis of healthcare systems by using systemic approach. Complexity, 2019. Retrieved from https://www.hindawi.com/journals/complexity/2019/6807140/ab s/ Cantor, V. J. M., & Poh, K. L. (2018). Integrated analysis of healthcare efficiency: a systematic review. Journal of medical systems, 42(1), 1-23. Retrieved from https://link.springer.com/article/10.1007/s10916-017-0848-7 Willis, G., Cave, S., & Kunc, M. (2018). Strategic workforce planning in healthcare: A multi-methodology approach. European Journal of Operational Research, 267(1), 250-263. Retrieved from https://www.sciencedirect.com/science/article/pii/S0377221717 310196 Strategic Analysis for Healthcare Chapter 15 Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale. Health Administration Press 1
  • 23. Life Cycle Analysis Life cycle analysis assesses products, organizations, or industries by analyzing the current stage in their life cycle. Although numerous life cycle models exist, researchers have generally identified five main phases in a life cycle: Birth Growth Maturity Revival Decline Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale. Health Administration Press Health Administration Press Life Cycle Analysis Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale. Health Administration Press Health Administration Press Life Cycle Analysis: Birth Organizations in the birth stage are attemptin g to establish for the first time a viable product-market strategy. This is achieved mainly by trial and error as efforts are made to change products and services in a manner that generates distinctive competences. This generally involves major and frequent product or service innovations and the conscious pursuit of a niche strategy. Because companies in the birth phase are small and have no established reputation, they do not directly confront their more
  • 24. powerful competitors. Instead, they find gaps, or niches, in the market that are not being filled, and they fill and defend these niches by making innovations. Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale. Health Administration Press Health Administration Press Life Cycle Analysis: BirthPhaseSituationOrganizationInnovation & StrategyBirth Phase: Small firmInformal structureConsiderable innovation in product linesYoungUndifferentiatedNiche StrategyDominated by owner/ managerPower highly centralizedSubstantial risk takingHomogenous/ placid environmentCrude information processing & decision making methods Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale. Health Administration Press Health Administration Press Life Cycle Analysis: Growth The emphasis of the growth phase is growth and early diversification: Product lines are broadened. Efforts are also devoted to incrementally tailoring products to new markets. Less stress is placed on major or dramatic product innovations. “Market segmentation begins to play a role, with managers trying to identify specific subgroups of customers and to make small product or service modifications in order to better serve them.” “In other words, the niche strategy is often abandoned as
  • 25. broader markets are addressed.” (Miller and Friesen 1948) Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale. Health Administration Press Health Administration Press Life Cycle Analysis: Growth Organizations in the growth phase are bigger and stronger than those in the birth phase, and they are better able to lobby with various levels of government. They may also acquire subsidiaries in their efforts to diversify. An acquisition of this nature “generally takes the form of buying out much smaller competing enterprises in the same industry rather than diversifying into new industries.” “The acquired firms are usually integrated into the functionally- based structure rather than left as independent divisions” (Miller and Friesen 1984). Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale. Health Administration Press Health Administration Press Life Cycle Analysis: GrowthPhaseSituationOrganizationInnovation & StrategyGrowth Phase:Medium sizedSome formalization of structureBroadening of product-market scope into closely related areasOlderFunctional basis of organizationIncremental innovation in product linesMultiple share holdersModerate differentiationRapid growthA more heterogeneous & competitive environmentSomewhat less centralized Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale.
  • 26. Health Administration Press Health Administration Press Life Cycle Analysis: Maturity Firms in the maturity phase are conservative, “do not perform many major innovations, engage in very few efforts at diversification or acquisition, and fail even to make many incremental changes to the products or services being offered.” “The tendency, more than in any other phase, is to follow the competition; to wait for competitors to lead the way in innovating and, then, to imitate the innovations if they prove to be necessary” (Miller and Friesen 1984). Markets in the maturity phase are slightly broader than in the growth phase, and fewer firms opt for a niche strategy. Firms try to arrange for a stable, negotiated environment by fixing prices and lobbying with the government. Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale. Health Administration Press Health Administration Press Life Cycle Analysis: Maturity The goal appears to be to improve the efficiency and profitability of operations. This is achieved by avoiding costly changes in product lines, ensuring favorable prices via collusion, and lobbying for barriers to foreign competition. “A stable and circumscribed product line is sold in traditional markets, the emphasis being upon economical production and the preservation of sales volume” (Miller and Friesen 1984). Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale. Health Administration Press
  • 27. Health Administration Press Life Cycle Analysis: MaturityPhaseSituationOrganizationInnovation & StrategyMaturity Phase:LargerFormal, bureaucratic structureConsolidation of product- market strategyEven olderFunctional basis of organizationFocus on efficiently supplying a well defined marketDispersed ownershipModerate differentiationConservatismHeterogeneous & competitive environmentModerate centralizationSlow growth Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale. Health Administration Press Health Administration Press Life Cycle Analysis: Revival The revival phase is in many ways the most exciting of the five. Changes begin to take place in the product-market strategies being followed. “For example, there are more major and minor product-line and service innovations than in any other period.” “New markets are entered for the first time as firms become more diversified” (Miller and Friesen 1984). This diversification sometimes involves the acquisition of firms in different industries. Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale. Health Administration Press Health Administration Press Life Cycle Analysis: Revival Market segmentation further defines discrete parts of the environment, and firms differentiate product lines accordingly. “Essentially, firms experience dramatic diversification in their
  • 28. products and markets. Their growth does not simply result in an increase in size but an expansion of product-market scope. There is a movement from one market to many, reversing the stagnation of the maturity phase” (Miller and Friesen 1984). Because of their size, market power, visibility, and occasional acquisitions, some firms in the revival phase lobby with the government to avoid interference with expansion, to obtain protection against imports, and to avoid antitrust lawsuits. Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale. Health Administration Press Health Administration Press Life Cycle Analysis: RevivalPhaseSituationOrganizationInnovation & StrategyRevival Phase:Very largeDivisional basis of organizationStrategy of product- market diversification; movement into some unrelated marketsVery heterogeneous, competitive, dynamicHigh differentiationHigh level of risk taking & planningSophisticated control, scanning, and communications in info. processing; more formal analysis in decision makingSubstantial innovationRapid growth Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale. Health Administration Press Health Administration Press Life Cycle Analysis: Decline Firms in the decline stage react to adversity in their markets by becoming stagnant. “They try to conserve resources depleted by poor performance by abstaining from product or service innovation. Product lines are rendered antiquated so that it becomes necessary to cut prices to maintain sales” (Miller and Friesen 1984).
  • 29. Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale. Health Administration Press Health Administration Press Life Cycle Analysis: Decline Firms seem to be caught in a vicious circle: “Their sales are poor because their product lines are unappealing. This reduces profits and makes for scarcer financial resources, which in turn cause any significant product line changes to seem too expensive” (Miller and Friesen 1984). As a result, changes are avoided, and product lines become even more outdated. Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale. Health Administration Press Health Administration Press Life Cycle Analysis: DeclinePhaseSituationOrganizationInnovation & StrategyDecline Phase:Market sizeFormal, bureaucratic structureLow level of innovationHomogeneous and competitive environmentMostly functional basis of organizationPrice cuttingModerate differentiation and centralizationConsolidation of product- marketLess sophisticated info processing systems and decision making methodsLiquidation of subsidiariesRisk aversion & conservatism Slow growth Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale.
  • 30. Health Administration Press Health Administration Press Life Cycle Analysis: Decline Reasons for Decline Too much debt 28% Inadequate leadership 17% Poor planning 14% Failure to change 11% Inexperienced management 9% Not enough revenue 8% (Business Week 2003) What do these reasons have in common? Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale. Health Administration Press Health Administration Press Life Cycle / Competition Matrix Dodge, Fullerton, and Robbins (1994) suggest a different way to consider the organizational life cycle. First, they group organizations into either early stages of development or late stages of development. They then consider the level of competition the organizations are experiencing. The resulting four-block matrix displays common critical problems faced by companies in each block. Strategies can be developed to address the critical problems. Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale. Health Administration Press Health Administration Press
  • 31. Life Cycle / Competition Matrix Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale. Health Administration Press Health Administration Press Life Cycle / Competition Matrix Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale. Health Administration Press Health Administration Press Life Cycle / Competition Matrix Note that the life cycle chart reflects Toyota, the parent company, and its divisions. Even though Toyota overall is in maturity, some of its other divisions are still in the growth stage. Overlaying the life cycle / competition matrix to the l ife cycle chart reveals that overall Toyota is in “late stage” life cycle with “intense competition.” This suggests “critical problems” of (a) maintaining market position, (b) furthering its image via focus & differentiation strategies, and (c) cost control. Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale. Health Administration Press Health Administration Press Exercise
  • 32. Divide up into groups and create a life cycle chart for your project organization. Include the parent company and any divisions (if there are any). What are the implications for strategy? Copyright © 2016 Foundation of the American College of Healthcare Executives. Not for sale. Health Administration Press Health Administration Press Birth Growth Maturity Revival Decline Size of organization Time EARLY STAGELATE STAGE 1. Lack of dependencies and2. Environment neither LITTLE OR NOconstraints in pursuing goalsthreatening or constraining COMPETITION Critical Problems:Critical Problems: a) Resourcesa) Stabilizing firms position
  • 33. b) marketing approachb) Formalization & control c) Formalization of structurec) Stability d) marketing approach 3. Turbulent environment- may4. Muddling behavior, simply INTENSEconstrain or dictate actionsreacting COMPETITION Critical Problems:Critical Problems: a) Identify nichesa) Maintain market position b) Monitor competitionb) Further image via focus & c) Realignment of the firm differentiation strategies vis-a-vis the competitionc) Cost control Source: Dodge, Fullerton & Robbins, Strategic Management Journal, Vol. 15, 121-134 (1994) 5 ForcesFIVE FORCESISSUEIMPACT ON COMPANYIMPLICATION FOR STRATEGYThreat of Entry1.2.3.4.5.Threat of Substitutes1.2.3.4.5.Power of buyers1.2.3.4.5.Power of Suppliers1.2.3.4.5.Intensity of Rivalry1.2.3.4.5.FORCEISSUEIMPACT ON COMPANYIMPLICATION FOR STRATEGYThreat of Entry1. Government regulation requires licensing and agency approval prior to manufacturing or sale of product.Company needs a three year lead time in order to obtain approvalMust include strategies to address legal and political issues; keeping competitors at bay during approval lag time, technological obsolescence and leapfrogging during approval period2. Raw material currently must be sourced from Asia which limits the ability of companies to enter due to higher logistics and transportation costsCost, timing, transportation, quality control, political opposition to Asian product may hinder approval processMust include strategies to address cost, timing, transportation, quality control, political opposition, and sourcing in the US3. Existing competitors have high profit margins and a willingness and capability to engage in a prolonged price war designed to drive a new entrant in the market out.A price war would reduce the projected profit margins and make the market undesirable to enterStrategy must
  • 34. address a method to develop a low cost manufacturing and distribution system and provide funding to survive a price war4. Ability of dominant players to buy smaller players, thus consolidating costs and expanding market share.Industry consolidation could create one or two "10,000 lb gorillas" that could dominate the industry and our ability to obtain contractsStrategy must address proactive defense to industr y consolidation or develop a method to compete in a consolidated industry5. Exclusive supplier contracts are in place with major buyers which currently lock out new suppliersCompany may not be immediately able to enter into contracts to supply until existing exclusive contracts by competitors expireMust include strategies to challenge the propriety of the exclusive supplier agreements, find a way around such contracts, or enable company to jump in when such contracts expireThreat of Substitutes1.2.3.4.5.Power of buyers1.2.3.4.5.Power of Suppliers1.2.3.4.5.Intensity of Rivalry1.2.3.4.5. PESTP.E.S.T.ISSUEIMPACT ON COMPANYIMPLICATION FOR STRATEGYPolitical1.2.3.4.5.Economic1.2.3.4.5.Social1.2.3.4. 5.Technological1.2.3.4.5.P.E.S.T.ISSUEIMPACT ON COMPANYIMPLICATION FOR STRATEGYSocial1.2.3.4.5. CompetativeSome Possible Broad Categories and Sub- CatagoriesAnalysis example using a "YES" / "NO" methodIdentify the key broad catagories for your industryYour CompanyCompetatorCompetatorCompetatorIndustryProduct relatedFinancialDistribution System:Our Co.Alpha Co.Beta CoOmega Co.Industry1.Category1.2.3.Implications for your company's strategy:Product qualityOperating ratioJust in time delivery systemYESNONOYESNO2.1.1.Product price pointInventory turnoverVendor managed inventoryYESYESNOYESYES3.a.2.New product development rateNumber of days of sales outstandingCaptive trucking divisionYESYESYESYESYES4b.3.Product replacement cycleGross margin ratioUnionizedYESNONONONO5.c.4.InovationReturn on
  • 35. equitye.5.Product image / reputationRe turn on assetsf.6.Debt- to-equity ratioAnalysis example using a scoring scale methodg.7.Sales RelatedEarnings per shareProductOur Co.Alpha Co.Beta CoOmega Co.Industry8.Market shareProduct quality122532.9.Distribution networkEmployee RelatedProduct price point31251a.10.Sales growth %Average number of employeesNew product development rate14253b.Corporate ImageAnnual revenue per employeeProduct replacement cycle14353c.Customer loyaltyAnnual compensation per employee1 = Superior; 5 = Poore.Service and sales policiesFlexibility of Organizational Structuref.AdvertisingAbility to Attract & Retain the best peopleg.Analysis example using a numeric data reporting methodManufacturing RelatedDistribution RelatedFinancialOur Co.Alpha Co.Beta CoOmega Co.Industry3.Annual maintenance & repair expenseJust in time delivery systemNumber of days of sales outstanding13076984567a.DowntimeVendor managed inventoryGross margin %5348673342b.Number of manufacturing plantsCaptive trucking divisionReturn on equity %15131337c.Location of manufacturing plantsUnionizedEarnings per share.32.53.10.27.33e.Competition’s capacity utilizationf.Technological capabilityg.Vertical integrationAnalysis example using a force ranking methodSalesOur Co.Alpha Co.Beta CoOmega Co.Median4.Some Possible Broad CatagoriesMarket share12342.5a.Product relatedSales growth %24312.5b.Financial RelatedCorporate Image24132.5c.Sales RelatedCustomer loyalty13242.5e.Employee Relatedf.Manufacturing Relatedg.Distribution Related5.a.b.c.e.f.g. SWOTYour companyCompetitor 1Competitor 2Competitor 3EFE AnalysisEFE AnalysisIFE AnalysisIFE AnalysisInternal:StrengthsWeaknessesInternal:StrengthsWeakne ssesIMPLICATIONS FOR STRATEGYStrengthsOpportunitiesWeightRatingScoreOpportun itiesWeightRatingScoreStrengthsWeightRatingScoreStrengthsW
  • 36. eightRatingScore11111111Products expansion0.10040.40011Marketing Philosophy0.10040.4001External:OpportunitiesThreats2222222 2Stock growth0.02520.05022Social Responsibility0.10030.300233333333More exposure0.10020.20033Creative Products0.10040.400344444444Move towards globalization0.02510.02544Diverse Product Line0.02540.100455555555More stadium contracts0.02520.05055Mass Customization0.05030.150566666666Expand target market0.10020.20066Product Specialization0.03040.120677777777License agreements0.05030.15077Ethics Program0.00530.015788888888Company growth0.02520.05088Quality Products0.09030.270899999999990.00091010101010101010101 00.00010External:OpportunitiesThreatsWeaknessesRating Scale: 4= major strength; 3= minor strengthRating Scale: 4= major strenght; 3= minor strenght111111ThreatsThreatsWeaknessesWeaknesses2222221 Multiple competitors0.10020.20011Inexperienced mgmt team0.05010.05013333332Dependency on sugar cane0.07530.22522Expensive Retail price structure0.02520.05024444443Suppliers have the power0.02520.05033Weak marketing processes0.07510.07535555554Recent lawsuit0.02520.05044Limited Distribution0.07510.07546666665License agreements0.07530.22555Limited Financial Capability0.02520.05057777776Seasonality of sales0.05010.05066Small company0.02520.05068888887Dependence on suppliers0.05030.15077Informalities of Company0.05010.05079999998Dependence on contract packers0.10030.30088Little Brand
  • 37. Recognition0.10010.10081010101010109Dependence on distributors0.05030.15099Collection Practices for receivables0.07510.0759Opportunities1010100.000101111Total Weight:1.000Total Score:2.525Total Weight:Total Score:Rating Scale: 1= major weakness 2= minor weaknessRating Scale: 1= major weakness 2= minor weaknessSTRENGHTSWEAKNESSES2222Rating Scale:Rating Scale:Total Weight:1.000Total Score:2.330Total Weight:Total Score:OPPORTUNITIESTHREATS33334 = Current Response is Superior4 = Current Response is Superior44443 = Current Response is Above Average3 = Current Response is Above Average55552 = Current Response is Average2 = Current Response is Average66661 = Current Response is Poor1 = Current Response is Poor77778888999910101010Threats11112222333344445555666 677778888999910101010 IE MatrixWeighted IFE ScoreWeighted IFE ScoreStrong 3.0- 4.0Average 2.0 to 2.99Weak 1.0 to 1.99Strong 3.0- 4.0Average 2.0 to 2.99Weak 1.0 to 1.99Weighted EFE ScoreHigh 3.0- 4.0AABWeighted EFE ScoreHigh 3.0- 4.0AABMedium 2.0 to 2.99ABCMedium 2.0 to 2.99ABCLow 1.0 to 1.99BCCLow 1.0 to 1.99BCCImplied Strategies-AGrow and BuildIntegration strategies, intensive strategiesBHold and MaintainMarket penetration, product development, joint ventureCHarvest or divestRetrenchment, divesturature , liquidationIntegration StrategiesForward integration- Ownership or increased control over distributors or retailers.Backward integration- Ownership or increased control over suppliers.Horizontal integration- Ownership or increased control over competitors.Intensive StrategiesMarket Development- New or present products into new areas.Product Development- Improving or Modification of product for increased sales.Market Penetration- Increased share for present products by increased effort.Defensive StrategiesJoint Venture- When two or more firms join & create a third co-owned firmRetrenchment- Organization regroups using cost and asset reduction techniquesDivestiture- Selling a
  • 38. product line, division, or business unitLiquidation- Selling all of the company assets.Diversification StrategiesConcentric Diversification Adding new but related products.Horizontal Diversification Adding new Unrelated products for present customers. Firm knows customers.Conglomerate Diversification Adding new unrelated products. Firm not familiar with customer base.SummaryMergers/Buyouts.Mergers Buy similar sized companies.Leveraged Buyouts Shareholders are bought out.Generic StrategiesCost Leadership strategies Striving to be the low cost provider. ~WalMartDifferentiation Strategies To stand out,~service,performance,useful life,ease of use.Focus Strategies Concentration after certain customer or area attributes. FinancialRATIOCALCULATIONWHAT IT TELLS USRATIOYear 1Year 2% + / -Year 3% + / -Year 4% + / -Year 5% + / -RATIOCompanyIndustry% + / -Competitor 1% + / - Competitor 2% + / -Competator3% + / -Liquidity RatiosLiquidity RatiosLiquidity RatiosCurrent RatioCurrent assetsIf a Firm's short-term assets are readily available to pay off its short-term liabilitiesCurrent RatioCurrent RatioCurrent liabilitiesQuick or Acid-Test RatioQuick or Acid-Test RatioLeverage RatiosLeverage RatiosQuick or Acid-Test RatioCurrent assets – inventoryThe amount of the most liquid current assets available to cover current liabilitiesDebt-to- Total-Asset RatioDebt-to-Total-Asset RatioCurrent liabilitiesDebt-to-Equity RatioDebt-to-Equity RatioLeverage RatiosLong-Term Debt-to-EquityLong-Term Debt-to- EquityDebt-to-Total-Asset RatioTotal liabilitiesThe amount of leverage being used by a company.Times-Interest-Earned RatioTimes-Interest-Earned RatioTotal assetsActivity RatiosActivity RatiosInventory-Turnover RatioInventory- Turnover RatioDebt-to-Equity RatioTotal liabilitiesMeasures how much debt a firm has compared to shareholders equityTotal-Asset TurnoverTotal-Asset TurnoverShareholders EquityFixed-Asset TurnoverFixed-Asset TurnoverAverage Collection PeriodAverage Collection PeriodLong-Term Debt-to-
  • 39. Equitylong term liabilitiesMeasures how much long term debt a firm has compared to shareholders equityProfitability RatiosProfitability RatiosShareholders EquityGross Profit MarginGross Profit MarginOperating Profit MarginOperating Profit MarginTimes-Interest-Earned RatioEBITDetermines how easily a company can pay interest expenses on outstanding debtNet Profit MarginNet Profit MarginInterest chargesReturn on Total Asset (ROA)Return on Total Asset (ROA)Activity RatiosReturn on Stockholders’ EquityReturn on Stockholders’ EquityInventory-Turnover RatioSalesHow long sales inventory waits to be soldReturn on Capital EmployedReturn on Capital EmployedInventoryEarnings per ShareEarnings per ShareEBITDAEBITDATotal-Asset TurnoverSalesThe relationship between assets and revenueGrowth RatiosGrowth RatiosTotal assetsSales increaseSales increaseEarnings per ShareEarnings per ShareFixed-Asset TurnoverSalesThe relationship between fixed assets and revenueDividends payout ratioDividends payout ratioFixed assetsValuationVal uationP/E RatioP/E RatioAverage Collection PeriodReceivablesHow long it takes a firm to collect payment from it's customersPrice to Book ratioPrice to Book ratioSales per dayPEG RatioPEG RatioProfitability RatiosProfit margin on salesProfit margin on salesGross Profit MarginGross profitThe amount of gross profit as a percent of salesReturn on net worthReturn on net worthNet salesJanuary 1st stock priceJanuary 1st stock priceNet IncomeNet IncomeOperating Profit MarginOperating profitThe amount of operating profit as a percent of salesGross incomeGross incomeNet salesNet Profit MarginNet incomeThe amount of net profit as a percent of salesNet salesReturn on Total Asset (ROA)Net incomeHow well management is using the company's assets to earn a profit.Total assetsReturn on Stockholders’ EquityNet incomeMeasures how much shareholders earned on their investment in the firmShareholders equityReturn on Capital EmployedEBITIndicates the efficiency and profitability of a company's capital investmentsTotal assets - current liabilitiesEarnings per ShareNet income- preferred stock
  • 40. dividendsprofit per share of common stock outstandingShares outstandingEBITDAprofit per share of common stock outstanding adjusted for interest, taxes, depreciation & amortizationGrowth RatiosSales increaseCurrent year salesPercent increase in sales year over yearPrior year saleEarnings per ShareNet income- preferred stock dividendsHow much profit is earned for each share of common stockAverage outstanding sharesDividends payout ratioDividends per common shareThe portion of a company's earnings paid relative to each common shareEarnings per shareValuationP/E RatioPrice per sharehow much investors are willing to pay per dollar of earnings.Earnings per sharePrice to Book ratioPrice per shareCompares a firm's market value to its book valueTotal assets-intangible assets & liabilitiesPEG RatioP/E RatioDetermines a stock's value while taking into account earnings growth (<1= undervalued)Annual EPS growthProfit margin on salesNet incomeHow much profit a company makes on it's salesSalesReturn on net worthNet incomeProfit as related to the firm's net worthNet worth BCGHighSTARQUESTION MARKHighHighAABMARKETGROWTHRATEMARKETMAR KETABCATTRACTIVENESSATTRACTIVENESSMediumLow CASH COWSDOGSHighLowBCCRELATIVE MARKET SHAREHighLowLowHighLowHighMediumLowBUSINESS STRENGTHBUSINESS STRENGTHMARKETGROWTHRATEGeneral Strategies Based on Matrix Location:AGrow & Build:Integration strategies, intensive strategiesBHold & Maintain:Market penetration, product development, joint ventureCHarvest & divest:Retrenchment, divesturature , liquidationLowHighLowRELATIVE MARKET SHARE Life CycleEARLY STAGELATE STAGEReasons For Decline1. Lack of dependencies and2. Environment neitherToo much Debt28%LITTLE OR NOconstraints in pursuing goalsthreatening or constrainingInadequate Leadership17%COMPETITIONPoor Planning14%Critical
  • 41. Problems:Critical Problems:Failure to Change11%a) Resourcesa) Stabilizing firms positionInexperienced Management9%b) marketing approachb) Formalization & controlNot Enough Revenue8%c) Formalization of structurec) Stabilityd) marketing approach*Source: Buccino and Associates: Seton Hall University, as reported in August 25, 2003, Business Week.3. Turbulent environment- may4. Muddling behavior, simplyINTENSEconstrain or dictate actionsreactingCOMPETITIONCritical Problems:Critical Problems:a) Identify nichesa) Maintain market positionb) Monitor competitionb) Further image via focus &c) Realignment of the firmdifferentiation strategiesvis-a-vis the competitionc) Cost controlSource: Dodge, Fullerton & Robbins, Strategic Management Journal, Vol. 15, 121-134 (1994)CORPORATE LIFE CYCLEPhaseSituationOrganizationInnovation & StrategyBirth Phase:Small firmInformal structureConsiderable innovation in product linesYoungUndifferientedNiche StrategyDominated by owner/ managerPower highly centralizedSubstantial risk takingHomogenous/ placid environmentCrude information processing & decision making methodsGrowth Phase:Medium sizedSome formalization of structureBroadening of product- market scope into closely related areasOlderFunctional basis of organizationIncremental innovation in product linesMultiple share holdersModerate differentiationRapid growthA more heterogeneous & competitive environmentSomewhat less centralizedInitial development of formal information processing & decision making toolsMaturity Phase:LargerFormal, bureaucratic structureConsolidation of product- market strategyEven olderFunctional basis of organizationFocus on efficiently supplying a well defined marketDispersed ownershipModerate differentiationConservatismheterogeneous & competitive environmentModerate centralizationSlow growthInformation processing & decision making same as growth stageRevival Phase:Very largeDivisional basis of organizationStrategy of product- market diversification;
  • 42. movement into some unrelated marketsVery heterogeneous, competitive, dynamicHigh differentiationHigh level of risk taking & planningSophisticated control, scanning, and communications in info. processing; more formal analysis in decision makingSubstantial innovationRapid growthDecline Phase:Market sizeFormal, bureaucratic structureLow level of innovationHomogeneous and competitive environmentMostly functional basis of organizationPrice cuttingModerate differentiation and centralizationConsolidation of product- marketLess sophisticated info processing systems and decision making methodsLiquidation of subsidiariesRisk aversion & conservatismSlow growthSource: Miler and Friesen, Management Science, Vol. 30, No. 10 (Oct., 1984), pp. 1161- 1183 CultureCULTURAL ASPECTSCORE (+5 TO -5)Are control and reward mechanisms effective?Are job responsibilities clearly understood?Are company policies & procedures appropriate and effective?Capacity for retaining personnelNewClearly articulated and shared missionCohesiveness and collaborationDegree of innovationDo employees have latitude in job execution?Do managers delegate authority?Do the leaders live the values and walk the talk?ExistingDoes the organization aggressively pursue change and innovation?Does the organization effectively deploy employee teams through the company?Employee attitudesEmployee empowermentEmployee MotivationEmployee participation in decisionsEnabling others to actEncouraging the heartEnforcement of policiesEffective Human Resource ManagementInnovation and change to processIs employee compensation fair / competitive?Is employee morale high?Is power centralized or shared throughout the organizationIs the organization’s structure appropriate for the proposed strategy?Is there open and constant communication from management to employeesKey executive’s styleLifecycle stage of organizationOpenness and trustOpportunities for employee growth & developmentOrganizational climateOrganizational
  • 43. StructurePassion for the product or companyPerception of job securityRecognition of individualsRewards for performanceRisk toleranceSense of belongingSense of urgencyShared VisionUnion RelationsWhat are the founder’s beliefs & what influence do they have? AnsoffNewNewMarket DevelopmentDiversification(Risk=Moderate)(Risk=High)11223 344Markets55Market PenetrationProduct DevelopmentExistingExisting(Risk= Low)(Risk=Moderate)1122334455ExistingNewProducts & Services Sheet1European ExpansionProduct ExpansionEuropean ExpansionProduct ExpansionStrategy 1Strategy 2Strategy 3Strategy 4OpportunitiesWeightAttractiveness ScoreTotal Attractiveness ScoreAttractiveness ScoreTotal Attractiveness ScoreOpportunitiesWeightAttractiveness ScoreTotal Attractiveness ScoreAttractiveness ScoreTotal Attractiveness ScoreOpportunitiesWeightAttractivene ss ScoreTotal Attractiveness ScoreAttractiveness ScoreTotal Attractiveness ScoreAttractiveness ScoreTotal Attractiveness ScoreAttractiveness ScoreTotal Attractiveness Score1Products expansion0.10020.20040.4003More exposure0.10040.40020.20012Stock growth0.02540.10040.10023More exposure0.10040.40020.20034Move towards globalization0.02540.10000.00045More stadium contracts0.02510.02510.02556Expand target market0.10040.40030.30067License agreements0.05020.10010.05078Company growth0.02540.10040.10089ThreatsThreats1Multiple competitors0.10020.20030.30012Dependency on sugar cane0.07500.00000.00023Suppliers have the power0.02520.05020.05034Recent lawsuit0.02500.00000.00045License agreements0.07520.15020.15056Seasonality of sales0.05040.20030.15067Dependence on
  • 44. suppliers0.05020.10010.05078Dependence on contract packers0.10030.30000.00089Dependence on distributors0.05030.15020.100910Total Weight:1.000Total Weight:StrengthsStrengths1Marketing Philosophy0.10030.30040.40012Social Responsibility0.10020.20020.20023Creative Products0.10040.40040.40034Diverse Product Line0.02540.10040.10045Mass Customization0.05030.15020.10056Product Specialization0.03030.09030.09067Ethics Program0.00510.00510.00578Quality Products0.09030.27030.27089WeaknessesWeaknesses1Inexperi enced mgmt team0.05010.05010.05012Expensive Retail price structure0.02520.05020.05023Weak marketing processes0.07520.15010.07534Limited Distribution0.07540.30020.15045Limited Financial Capability0.02510.02520.05056Small company0.02520.05030.07567Informalities of Company0.05010.05020.10078Little Brand Recognition0.10020.20040.40089Collection Practices for receivables0.07500.00000.000910Total Weight:1.0004.9654.490Total Weight:TAS:TAS:0.000TAS:0.000TAS:0.000 FinanceDataDescriptionDataDescriptionDataDescription10%An nual discount rate10%Annual discount rate10%Annual discount rate$ (10,000,000)Initial cost of investment one year from today$ (10,000,000)Initial cost of investment one year from today$ (10,000,000)Initial cost of investment one year from today$ 3,000,000Return (less costs) from first year$ 3,000,000Return (less costs) from first year$ 3,000,000Return (less costs) from first year$ 4,200,000Return (less costs) from second year$ 4,200,000Return (less costs) from second year$ 4,200,000Return (less costs) from second year$ 6,800,000Return (less costs) from third year$ 6,800,000Return (less costs) from third year$ 6,800,000Return (less costs) from third year$ 4,000,000Total Return$ 4,000,000Total Return$
  • 45. 4,000,000Total Return$ 1,188,443NPV16%IRR$ 1,188,443NPV1.12PI8%YearCash Flows0($10,000)1$1,5002$2,5003$4,0004$3,0005$3,0006$3,00 0$2,634.18npv1.26PI Example: TOYOTA MOTOR COMPANY Birth Growth Maturity Revival Decline Size of Company Time DAIAHATSU TOYOTA HINO LEXUS Overall Toyota is in “Late Stage” lifecyc le with “Intense Competition.” This suggests “Critical Problems” of a) Maintain market position, b) Furthering its image via focus & differentiation strategies and c) Cost control Exhibit 15.6