A strategic management presentation on a tertiary level hospital in an urban setting (Metro Manila, Philippines),based on a paper written in partial fulfillment of the requirements of a MD-MBA degree. Topics covered include: industry and competitor analysis, internal and company analysis, strategy formulation, strategic plans and objectives, monitoring and control, and contingency plans.
Strategic Management Paper: Hospital Industry ----
Definition of the industry and its dominant economic features, Industry’s Dominant Economic Features (Market Size and Growth Rate, Number of Rivals, Scope of Competitive Rivalry, Degree of Product Differentiation, Service Innovation, Pace of Technological Change), Major Players, Industry analysis using five forces model, Driving forces, Strategic group map, Competitor analysis, Possible strategic moves of competitors, Key Success factors, Conclusion of industry analysis.
The document analyzes the hospital industry through a PEST analysis, Porter's Five Forces model, and discussion of key success factors. It finds that political factors like the Affordable Care Act significantly impact hospitals. Competition is high within the industry. Bargaining power of suppliers and buyers is moderate. The most important success factors are reinventing the patient experience, having a diverse set of medical professionals, and leveraging innovative technology. Overall, the industry is currently unattractive for new entrants.
This document provides an overview of the healthcare industry in Sri Lanka. It discusses how the industry is categorized globally and the professionals it employs. The presentation covers changes in the global healthcare industry and how they impact Sri Lanka. It performs a SWOT, PESTLE and marketing mix analysis of Sri Lanka's healthcare sector. Recommendations are provided on how the industry can address future challenges.
The document discusses the Indian healthcare sector. It notes that healthcare is one of India's largest sectors in terms of revenue and employment. The private sector accounts for over 80% of healthcare spending. The sector is projected to grow to $40 billion this year. An aging population and expanding middle class represent opportunities for growth. However, physical infrastructure and the number of public health facilities are inadequate. The government uses price controls to improve drug affordability. [END SUMMARY]
UPH-DJGTH PTM are Doctors & Patients (children, elderly & ill) Who want to be healthy. Competitors are Dagupan or San Carlos hospitals. The opportunity is others focus on profits over quality. The market size is P2.6 million, with UPHDJGT niche as P1 million. UPH-DJGTH is a secondary hospital with tertiary capabilities, located nationwide. It uses CSR activities and premium pricing in a niche strategy to dominate the secondary hospital market.
Process Improvement in OPD billing by observing Billing Errors and thereby in...Angela Kaul
This document is a project report submitted by Dr. Angela Kaul to the Symbiosis Institute of Health Sciences in partial fulfillment of an MBA degree. The report analyzes billing processes and errors at the Columbia Asia Hospital in Pune, India in order to improve efficiency and increase patient satisfaction. It includes an introduction, literature review on global and Indian healthcare industries, aim and objectives of the study, and an abstract that overviews analyzing billing time/delays, identifying non-value adding steps and errors, and recommending solutions.
The document discusses key concepts in healthcare operations management. It defines operations management as coordinating processes to deliver quality healthcare services in a cost-effective manner. Core functions include planning, scheduling, purchasing, quality control, and inventory control. Decision areas encompass designing services, managing quality, planning processes and capacity, setting locations and layouts, managing human resources, and scheduling maintenance. Metrics measure performance from financial, customer, and operational perspectives to continuously improve the healthcare system.
Strategic Management Paper: Hospital Industry ----
Definition of the industry and its dominant economic features, Industry’s Dominant Economic Features (Market Size and Growth Rate, Number of Rivals, Scope of Competitive Rivalry, Degree of Product Differentiation, Service Innovation, Pace of Technological Change), Major Players, Industry analysis using five forces model, Driving forces, Strategic group map, Competitor analysis, Possible strategic moves of competitors, Key Success factors, Conclusion of industry analysis.
The document analyzes the hospital industry through a PEST analysis, Porter's Five Forces model, and discussion of key success factors. It finds that political factors like the Affordable Care Act significantly impact hospitals. Competition is high within the industry. Bargaining power of suppliers and buyers is moderate. The most important success factors are reinventing the patient experience, having a diverse set of medical professionals, and leveraging innovative technology. Overall, the industry is currently unattractive for new entrants.
This document provides an overview of the healthcare industry in Sri Lanka. It discusses how the industry is categorized globally and the professionals it employs. The presentation covers changes in the global healthcare industry and how they impact Sri Lanka. It performs a SWOT, PESTLE and marketing mix analysis of Sri Lanka's healthcare sector. Recommendations are provided on how the industry can address future challenges.
The document discusses the Indian healthcare sector. It notes that healthcare is one of India's largest sectors in terms of revenue and employment. The private sector accounts for over 80% of healthcare spending. The sector is projected to grow to $40 billion this year. An aging population and expanding middle class represent opportunities for growth. However, physical infrastructure and the number of public health facilities are inadequate. The government uses price controls to improve drug affordability. [END SUMMARY]
UPH-DJGTH PTM are Doctors & Patients (children, elderly & ill) Who want to be healthy. Competitors are Dagupan or San Carlos hospitals. The opportunity is others focus on profits over quality. The market size is P2.6 million, with UPHDJGT niche as P1 million. UPH-DJGTH is a secondary hospital with tertiary capabilities, located nationwide. It uses CSR activities and premium pricing in a niche strategy to dominate the secondary hospital market.
Process Improvement in OPD billing by observing Billing Errors and thereby in...Angela Kaul
This document is a project report submitted by Dr. Angela Kaul to the Symbiosis Institute of Health Sciences in partial fulfillment of an MBA degree. The report analyzes billing processes and errors at the Columbia Asia Hospital in Pune, India in order to improve efficiency and increase patient satisfaction. It includes an introduction, literature review on global and Indian healthcare industries, aim and objectives of the study, and an abstract that overviews analyzing billing time/delays, identifying non-value adding steps and errors, and recommending solutions.
The document discusses key concepts in healthcare operations management. It defines operations management as coordinating processes to deliver quality healthcare services in a cost-effective manner. Core functions include planning, scheduling, purchasing, quality control, and inventory control. Decision areas encompass designing services, managing quality, planning processes and capacity, setting locations and layouts, managing human resources, and scheduling maintenance. Metrics measure performance from financial, customer, and operational perspectives to continuously improve the healthcare system.
STRATEGIC MANAGEMENT OF NARAYANA HRUDRALAYASheetal Singh
This presentation contains strategic management research of Narayana hrudralaya which include Internal analysis, External analysis and Financial analysis of NH.
Chapter 1: Context of Health Care Financial ManagementNada G.Youssef
This document discusses key topics in health care financial management including lowering costs, goals of the health care system, and changing methods of financing and delivery. It outlines reforms under the Affordable Care Act to expand access through insurance marketplaces and Medicaid expansion while controlling costs through value-based purchasing. It also covers trends like the rise of the uninsured and accountable care organizations, as well as factors affecting the cost of care and impacts to provider reimbursement models.
The document provides an industry analysis of Apollo Hospitals in India. It discusses the size and growth of the healthcare industry in India. Key facts noted include that the industry is currently worth $34 billion and is projected to grow to $40 billion by 2022. It also profiles the chairman of Apollo Hospitals, Dr. Prathap Reddy, and his vision to make India a healthcare destination. Details are given on some major players in the hospital industry like Fortis, Max India and Escorts. Apollo Hospitals is highlighted as a leading private healthcare provider in Asia with over 7500 beds across 43 hospitals in India and abroad.
A comprehensive analysis of Apollo Hospitals [Biswadeep Ghosh Hazra and Team]...Biswadeep Ghosh Hazra
The report covers the essential strategic aspects of Apollo Hospitals which are enumerated below-
1 Executive Summary
2 Industry Overview
2.1 Nature and Size of the Industry
2.2 Key Growth drivers for the industry
2.3 Identification of Critical Success Factors (CSF)
2.4 Market Analysis based on CSFs
2.5 Industry Benchmarks
2.6 PESTEL Analysis
2.7 Porter’s Five Forces Analysis
2.8 Strategic Group Mapping
2.9 Competitive Landscape
2.10 Market Segmentation
2.11 Buying Criteria Analysis of the Industry
2.12 Key trends and future developments
3 Company Overview
3.1 Company background
3.2 Timeline with key milestones and their strategic impact
3.3 Vision, Mission, Goals, and Strategic Themes
3.4 Key Product and Service Portfolio
3.5 Core Competencies of the firm
3.6 Business Model of the organization
3.7 3rd Generation Balanced Scorecard (Amalgamation of 1st Generation BSC and Activity System Map)
3.8 SWOT Analysis
3.9 Competitor Analysis (identify competitors)
3.9.1 Based on Critical Success factors
3.9.2 Based on Financial indicators
4 Future Growth Strategy for the organization
4.1 Portfolio Analysis
4.1.1 Based on BCG Matrix
4.2 Company’s Strategic Roadmap for future
4.3 Product Market Investment Strategy
4.4 Re-imagining the Organization with
the transformed business model or Use-case based on SMAC and IOE
Value adding service delivery for health care organizationibrahimzubairu2003
This document discusses value adding service delivery strategies for health care organizations. It begins by introducing directional, adaptive, and competitive strategies that must be translated into action. Value adding service delivery strategies are then described as having three components: pre-service activities like marketing research and branding; point-of-service activities focused on clinical operations and patient satisfaction; and after-service activities such as follow-up calls and billing. Each of these components works together to position the health care organization, meet customer needs, and ensure quality from pre-visit to post-care. The document emphasizes that coordinating these explicit strategies across the value chain is critical for health care providers to survive in today's competitive environment.
The document discusses the changing role of hospitals. It notes that hospitals are evolving within a new framework of healthcare management in response to internal and external changes. Some of the challenges hospitals face include uncertainties around future patient needs due to an aging population and the progression of chronic diseases. Hospitals also have to balance emergency care with planned management of patients. The role of hospitals is gradually shifting from cure-focused to more emphasis on healthcare, community care, prevention, and public health. The changing role requires hospital management approaches to also adapt.
Mission Hospital's 10 step marketing plan targets class B patients who want accessible, affordable healthcare. The plan positions Mission Hospital as the only secondary hospital offering excellent yet affordable care near class B patients' homes. With a market size of P170 million, Mission Hospital aims to dominate its P85 million niche by emphasizing quality care through competent doctors, competitive rates, and a clean environment. The strategic location and niche focus allow Mission Hospital to win over competitors by being nearest to and most affordable for its target class B demographic.
Feasibility Analysis to Start a New Indian Restaurant in UKAssignment Prime
In this competitive world it is quite difficult to open an Indian restaurant in UK. There is need to do proper analysis of market. This report helps you to understand the market in India.
https://www.assignmentprime.com/crm-assignment-help
- Jollibee currently uses a manual method to count inventory in storage, which is done by kitchen managers at the end of each day.
- Our proposal is to implement a computerized recording system to track items received and checked out of storage.
- This system will provide an organized and running balance of available inventory in storage. It will save kitchen managers from having to hurriedly count items manually at the end of each day.
Fortis Healthcare Ltd is one of India's largest private healthcare companies with a network of 28 hospitals and 3300 beds. It provides cardiac, orthopedic, neuroscience, oncology, and maternal care. The company aims to grow aggressively with 6000 beds in 40 hospitals by 2012. India's healthcare industry is poised to grow tremendously due to lower public spending pushing people to private providers, encouraging public-private partnerships, and medical tourism. The industry faces opportunities from a growing and aging population, rising incomes, and medical tourism but threats from slow IT adoption and competition from other countries like China.
Pharmaceutical industry pestel analysisRahul Pagaria
The pharmaceutical industry in India is a rapidly growing sector that produces low-cost, high-quality drugs. It has a total market size of over $20 billion and has grown at around 12.5% annually over the past five years. Key players in the industry include Ranbaxy, Dr. Reddy's, Cipla, and Lupin. A PESTEL analysis identified political issues like price controls, social factors like an aging population and increased patient expectations, economic challenges from the global crisis, opportunities from new technologies, and an increasing focus on the environmental impact of the industry.
The document provides a business plan for a proposed Community Health Clinic (CHC) operated by 2BWell, Inc. The plan outlines the problem of needing to increase patient volume at the current clinic to become self-sustaining. It then analyzes the target market, competitors, and identifies opportunities to increase revenue and reduce costs for the CHC, including maintaining the status quo, establishing an associateship practice for recent graduates, donating space to a local naturopathic college, operating the CHC on Saturdays, or integrating CHC patients into the private practice. Financial projections are provided for several of the opportunities. The overall goal is for the CHC to operate independently from 2BWell and be financially self-
Apollo Hospitals is one of the largest private healthcare providers in India with over 53 hospitals. It utilizes various marketing strategies including promoting its high success rates, hosting seminars and conferences, and collaborating with doctors. Apollo markets to patients, doctors, and the community through multiple channels such as social media, advertisements, and initiatives to raise health awareness. It positions itself as a premium hospital that provides quality care, treatments for many diseases, and services across India and internationally.
This document outlines 10 top trends in the healthcare industry for 2022 according to research by Capgemini. The trends include: 1) COVID-19 fast-tracking digital health and remote care delivery; 2) A focus on patient-centric, personalized care and shoppable healthcare experiences; 3) Adopting a whole-patient approach and understanding social determinants of health; 4) Using real-time healthcare data and IoMT to improve medical management; 5) Increased involvement of non-traditional players like BigTech firms; 6) Modernization efforts and cloud adoption in the industry; 7) Prioritizing pricing transparency and shoppable healthcare; 8) Increased focus on data privacy and security; 9) Margin pressures triggering
Research and Understanding for Universal Health Care - #RU4UHCAlbert Domingo
Research priorities in support of universal health care (UHC) implementation in the Philippines. Delivered in plenary at the 3rd Western Visayas Health Research Conference, 6 Nov 2018, Iloilo City, Philippines.
The document provides an executive summary for a business plan for Project E, which will be Botswana's first private psychiatric hospital. It outlines the company's goals of increasing beds and admissions over time. Financial projections show an investment need of $9 million with positive cash flow and returns expected. The management team is experienced in the mental healthcare field.
1. What are the subgroups under hospitality industry?
2. Porters five force analysis
3. Growth drivers and strategies
4. Key trends
5. Major players
6. Risks
Narayana Hrudayalaya (NH) operates a network of hospitals across India providing cardiology and other specialty care. It follows an asset-light model, owning some facilities while managing or sharing revenues from others. This allows NH to control capital costs and expand services across its 50 healthcare facilities with nearly 6,000 operational beds. The majority of NH's revenues come from facilities in Southern and Eastern India specializing in cardiology, with increasing contributions from international patients.
The document summarizes the top 10 health industry issues for 2015 according to PwC's Health Research Institute. The issues include the rise of do-it-yourself healthcare using mobile apps and devices, balancing privacy and convenience with health data on mobile platforms, innovative ways to reduce costs for high-need patients, value-based payment models, expanding roles for physician assistants and nurses, and the need for partnerships and collaboration across the healthcare industry.
Apollo hospitals presentation (etop & sap)Shruti Patil
The document provides an analysis of the Indian healthcare industry and Apollo Hospitals of India. It discusses Porter's 5 forces model for the industry which faces high threat of new entrants and competition but limited threat of substitutes or bargaining power of buyers. It then summarizes Apollo Hospital's history, management philosophy, critical success factors, environmental analysis using ETOP model, strategic advantages using SAP model, and finally a SWOT analysis.
STRATEGIC MANAGEMENT OF NARAYANA HRUDRALAYASheetal Singh
This presentation contains strategic management research of Narayana hrudralaya which include Internal analysis, External analysis and Financial analysis of NH.
Chapter 1: Context of Health Care Financial ManagementNada G.Youssef
This document discusses key topics in health care financial management including lowering costs, goals of the health care system, and changing methods of financing and delivery. It outlines reforms under the Affordable Care Act to expand access through insurance marketplaces and Medicaid expansion while controlling costs through value-based purchasing. It also covers trends like the rise of the uninsured and accountable care organizations, as well as factors affecting the cost of care and impacts to provider reimbursement models.
The document provides an industry analysis of Apollo Hospitals in India. It discusses the size and growth of the healthcare industry in India. Key facts noted include that the industry is currently worth $34 billion and is projected to grow to $40 billion by 2022. It also profiles the chairman of Apollo Hospitals, Dr. Prathap Reddy, and his vision to make India a healthcare destination. Details are given on some major players in the hospital industry like Fortis, Max India and Escorts. Apollo Hospitals is highlighted as a leading private healthcare provider in Asia with over 7500 beds across 43 hospitals in India and abroad.
A comprehensive analysis of Apollo Hospitals [Biswadeep Ghosh Hazra and Team]...Biswadeep Ghosh Hazra
The report covers the essential strategic aspects of Apollo Hospitals which are enumerated below-
1 Executive Summary
2 Industry Overview
2.1 Nature and Size of the Industry
2.2 Key Growth drivers for the industry
2.3 Identification of Critical Success Factors (CSF)
2.4 Market Analysis based on CSFs
2.5 Industry Benchmarks
2.6 PESTEL Analysis
2.7 Porter’s Five Forces Analysis
2.8 Strategic Group Mapping
2.9 Competitive Landscape
2.10 Market Segmentation
2.11 Buying Criteria Analysis of the Industry
2.12 Key trends and future developments
3 Company Overview
3.1 Company background
3.2 Timeline with key milestones and their strategic impact
3.3 Vision, Mission, Goals, and Strategic Themes
3.4 Key Product and Service Portfolio
3.5 Core Competencies of the firm
3.6 Business Model of the organization
3.7 3rd Generation Balanced Scorecard (Amalgamation of 1st Generation BSC and Activity System Map)
3.8 SWOT Analysis
3.9 Competitor Analysis (identify competitors)
3.9.1 Based on Critical Success factors
3.9.2 Based on Financial indicators
4 Future Growth Strategy for the organization
4.1 Portfolio Analysis
4.1.1 Based on BCG Matrix
4.2 Company’s Strategic Roadmap for future
4.3 Product Market Investment Strategy
4.4 Re-imagining the Organization with
the transformed business model or Use-case based on SMAC and IOE
Value adding service delivery for health care organizationibrahimzubairu2003
This document discusses value adding service delivery strategies for health care organizations. It begins by introducing directional, adaptive, and competitive strategies that must be translated into action. Value adding service delivery strategies are then described as having three components: pre-service activities like marketing research and branding; point-of-service activities focused on clinical operations and patient satisfaction; and after-service activities such as follow-up calls and billing. Each of these components works together to position the health care organization, meet customer needs, and ensure quality from pre-visit to post-care. The document emphasizes that coordinating these explicit strategies across the value chain is critical for health care providers to survive in today's competitive environment.
The document discusses the changing role of hospitals. It notes that hospitals are evolving within a new framework of healthcare management in response to internal and external changes. Some of the challenges hospitals face include uncertainties around future patient needs due to an aging population and the progression of chronic diseases. Hospitals also have to balance emergency care with planned management of patients. The role of hospitals is gradually shifting from cure-focused to more emphasis on healthcare, community care, prevention, and public health. The changing role requires hospital management approaches to also adapt.
Mission Hospital's 10 step marketing plan targets class B patients who want accessible, affordable healthcare. The plan positions Mission Hospital as the only secondary hospital offering excellent yet affordable care near class B patients' homes. With a market size of P170 million, Mission Hospital aims to dominate its P85 million niche by emphasizing quality care through competent doctors, competitive rates, and a clean environment. The strategic location and niche focus allow Mission Hospital to win over competitors by being nearest to and most affordable for its target class B demographic.
Feasibility Analysis to Start a New Indian Restaurant in UKAssignment Prime
In this competitive world it is quite difficult to open an Indian restaurant in UK. There is need to do proper analysis of market. This report helps you to understand the market in India.
https://www.assignmentprime.com/crm-assignment-help
- Jollibee currently uses a manual method to count inventory in storage, which is done by kitchen managers at the end of each day.
- Our proposal is to implement a computerized recording system to track items received and checked out of storage.
- This system will provide an organized and running balance of available inventory in storage. It will save kitchen managers from having to hurriedly count items manually at the end of each day.
Fortis Healthcare Ltd is one of India's largest private healthcare companies with a network of 28 hospitals and 3300 beds. It provides cardiac, orthopedic, neuroscience, oncology, and maternal care. The company aims to grow aggressively with 6000 beds in 40 hospitals by 2012. India's healthcare industry is poised to grow tremendously due to lower public spending pushing people to private providers, encouraging public-private partnerships, and medical tourism. The industry faces opportunities from a growing and aging population, rising incomes, and medical tourism but threats from slow IT adoption and competition from other countries like China.
Pharmaceutical industry pestel analysisRahul Pagaria
The pharmaceutical industry in India is a rapidly growing sector that produces low-cost, high-quality drugs. It has a total market size of over $20 billion and has grown at around 12.5% annually over the past five years. Key players in the industry include Ranbaxy, Dr. Reddy's, Cipla, and Lupin. A PESTEL analysis identified political issues like price controls, social factors like an aging population and increased patient expectations, economic challenges from the global crisis, opportunities from new technologies, and an increasing focus on the environmental impact of the industry.
The document provides a business plan for a proposed Community Health Clinic (CHC) operated by 2BWell, Inc. The plan outlines the problem of needing to increase patient volume at the current clinic to become self-sustaining. It then analyzes the target market, competitors, and identifies opportunities to increase revenue and reduce costs for the CHC, including maintaining the status quo, establishing an associateship practice for recent graduates, donating space to a local naturopathic college, operating the CHC on Saturdays, or integrating CHC patients into the private practice. Financial projections are provided for several of the opportunities. The overall goal is for the CHC to operate independently from 2BWell and be financially self-
Apollo Hospitals is one of the largest private healthcare providers in India with over 53 hospitals. It utilizes various marketing strategies including promoting its high success rates, hosting seminars and conferences, and collaborating with doctors. Apollo markets to patients, doctors, and the community through multiple channels such as social media, advertisements, and initiatives to raise health awareness. It positions itself as a premium hospital that provides quality care, treatments for many diseases, and services across India and internationally.
This document outlines 10 top trends in the healthcare industry for 2022 according to research by Capgemini. The trends include: 1) COVID-19 fast-tracking digital health and remote care delivery; 2) A focus on patient-centric, personalized care and shoppable healthcare experiences; 3) Adopting a whole-patient approach and understanding social determinants of health; 4) Using real-time healthcare data and IoMT to improve medical management; 5) Increased involvement of non-traditional players like BigTech firms; 6) Modernization efforts and cloud adoption in the industry; 7) Prioritizing pricing transparency and shoppable healthcare; 8) Increased focus on data privacy and security; 9) Margin pressures triggering
Research and Understanding for Universal Health Care - #RU4UHCAlbert Domingo
Research priorities in support of universal health care (UHC) implementation in the Philippines. Delivered in plenary at the 3rd Western Visayas Health Research Conference, 6 Nov 2018, Iloilo City, Philippines.
The document provides an executive summary for a business plan for Project E, which will be Botswana's first private psychiatric hospital. It outlines the company's goals of increasing beds and admissions over time. Financial projections show an investment need of $9 million with positive cash flow and returns expected. The management team is experienced in the mental healthcare field.
1. What are the subgroups under hospitality industry?
2. Porters five force analysis
3. Growth drivers and strategies
4. Key trends
5. Major players
6. Risks
Narayana Hrudayalaya (NH) operates a network of hospitals across India providing cardiology and other specialty care. It follows an asset-light model, owning some facilities while managing or sharing revenues from others. This allows NH to control capital costs and expand services across its 50 healthcare facilities with nearly 6,000 operational beds. The majority of NH's revenues come from facilities in Southern and Eastern India specializing in cardiology, with increasing contributions from international patients.
The document summarizes the top 10 health industry issues for 2015 according to PwC's Health Research Institute. The issues include the rise of do-it-yourself healthcare using mobile apps and devices, balancing privacy and convenience with health data on mobile platforms, innovative ways to reduce costs for high-need patients, value-based payment models, expanding roles for physician assistants and nurses, and the need for partnerships and collaboration across the healthcare industry.
Apollo hospitals presentation (etop & sap)Shruti Patil
The document provides an analysis of the Indian healthcare industry and Apollo Hospitals of India. It discusses Porter's 5 forces model for the industry which faces high threat of new entrants and competition but limited threat of substitutes or bargaining power of buyers. It then summarizes Apollo Hospital's history, management philosophy, critical success factors, environmental analysis using ETOP model, strategic advantages using SAP model, and finally a SWOT analysis.
The document summarizes a presentation about developing synergies between healthcare payers and providers in the Middle East and North Africa region. It notes that both providers and payers are facing challenges from new regulations, competition, and other market changes. It provides a case study of the Dubai healthcare market, including current statistics and projections for 2025. It identifies key factors driving changes in the industry and provides recommendations for adaptive strategies that providers and payers can take to address the changing landscape.
The 10 companies booming in healthcare sector smallinsightscare
Development is a continuous process in any sector. It brings in more comfort, more precision, and more enhanced way of living.Acknowledging the remarkable contribution of the leading companies in the care sector, we bring to you the special issue of “The 10 Companies Booming in Healthcare Sector”.
United States life sciences companies face numerous challenges in 2015 related to market changes, consolidation, pricing pressures, and health reform. Six key issues are highlighted: 1) Market reconfiguration and consolidation due to factors like expiring patents are driving the need for companies to reassess strategies and explore M&A opportunities. 2) Pricing pressures exist from government efforts to control costs and from health plans increasing efforts to reduce pharmaceutical costs. 3) Health reform is shifting the market to value-based care, requiring companies to demonstrate drugs' and devices' true value and economic impact compared to alternatives.
3º FÓRUM DA SAÚDE SUPLEMENTAR - CARMELLA BOCCHINOCNseg
The document discusses challenges and opportunities related to medical devices in the US healthcare system. It provides background on AHIP and trends in US healthcare spending and insurance coverage. It then discusses the medical device industry and market, FDA regulation of devices, payment reform efforts toward value-based care, and examples of alternative payment models like bundled payments that aim to reduce costs and improve outcomes.
The 10 Companies Booming in Healthcare Sectorinsightscare
Acknowledging the remarkable contribution of the leading companies in the care sector, we bring to you the special issue of “The 10 Companies Booming in Healthcare Sector”. This edition portrays the inspiring stories of the listed pre-eminent organizations that are shaping the future of healthcare through innovation and dedication.
Case for emerging 9 sustaining oncology innovationyuvrajgill
The document discusses the challenges facing major oncology innovator companies as their traditional cash cow drugs lose market share to biosimilars. It argues that innovators need to look beyond traditional Western markets and consider partnering with emerging markets like India to strengthen their healthcare systems and generate sustainable revenues. This could help build new cash cows to fund future innovation while improving access in populations with high cancer rates. The document outlines how an integrated approach with partners across government, non-profits and hospitals could work to mutually benefit patients, innovators and healthcare systems in emerging markets.
Disruptive trends impacting the healthcare industry...Tim Ziakas
The healthcare industry is undergoing some of the biggest transformations we've seen. Talent retention, cultural gaps, digital transformation, regulation...there isn't a company that does not feel the effects. Leadership strategy will play a critical role in the success of the U.S. Healthcare industry.
It’s 2020 and healthcare is at a crossroads. Will this be the tipping point in the transformation of care or are we in for yet-another decade of radical change and resistance? Here's six key trends that I think are likely to tip the scales and shape the healthcare business model of the new era.
The intelligent enterprise in the experience economy for the healthcare industryMohammad AlZaubi
The healthcare industry faces tremendous change in every aspect of advancing business and the provisioning of healthcare. Today, the patient journey begins with prevention programs offered prior to admission to secure the well-being
of patients while capturing and using personal health data. The value and importance of analyzing and using patient data has increased significantly in past years – and demand for targeted analysis of patient data will expand in the future. In the experience economy, patients not only require transparent access to their healthcare data, they also expect to be informed
about every step of their hospital visit at any time.
Optum is a healthcare company owned by UnitedHealth Group that aims to help people live healthier lives and improve the healthcare system. It integrates various healthcare services under one umbrella. Optum has strengths in vertical integration through acquisitions and large data analytics capabilities. However, its ownership by UnitedHealth limits independence and client trust. It has opportunities in international expansion and new technologies like telehealth. Threats include imitation by competitors and political/legal factors affecting the industry.
Generic Pharma 2.0: 10 Potential Industry Game ChangersAmanda Boddington
The generic pharmaceutical industry will look very different in 10 years due to various potential game changers. Companies will need to consider changes to their growth strategies, product selections, and business models. Ten game changers are identified that could disrupt the industry, including increased interest from big pharmaceutical companies in generics, biologic drug patent expirations, new competitors from emerging markets, and increased government protectionism favoring local drug manufacturing. To gain a competitive advantage, companies need to envision how the industry may change and develop strategies to overcome future challenges. Experts can help companies navigate this changing landscape and plot a successful path forward.
The 10 Best Super Specialty Hospitals.” On our cover page we have Dr. B Ramesh, Director and Chief Endoscopic Surgeon of Altius Hospital,having 21 years of excellent medical experience in India.
The document discusses the Indian healthcare industry using Porter's Five Forces analysis. It notes that the industry is large but underserved, expected to grow significantly, and made up of government and private hospitals as well as allied services. Competition exists between various types of industry players that serve different segments. The industry faces threats from new entrants but barriers to entry are also high. Supplier and buyer bargaining powers are mixed depending on the specific situation.
The hospital segment in India is becoming increasingly attractive for pharmaceutical companies due to its large size, fast growth rate, and investment opportunities. However, pharmaceutical companies will need to rethink their business strategies to succeed in this evolving market. Hospitals are exerting more control over physician prescriptions and purchasing decisions. Additionally, the relationship between physicians and hospitals is shifting, with hospitals gaining more influence. To effectively engage with the hospital segment, pharmaceutical companies will need to tailor their strategies, products, targeting, and metrics to the unique dynamics of each hospital type.
This Power Point Presentation is about the health care industry its opportunities in growing market and the company profile and swot analysis of Apollo Hospitals
Similar to Strategic management paper on a tertiary level hospital (20)
Top mailing list providers in the USA.pptxJeremyPeirce1
Discover the top mailing list providers in the USA, offering targeted lists, segmentation, and analytics to optimize your marketing campaigns and drive engagement.
Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.
How to Implement a Strategy: Transform Your Strategy with BSC Designer's Comp...Aleksey Savkin
The Strategy Implementation System offers a structured approach to translating stakeholder needs into actionable strategies using high-level and low-level scorecards. It involves stakeholder analysis, strategy decomposition, adoption of strategic frameworks like Balanced Scorecard or OKR, and alignment of goals, initiatives, and KPIs.
Key Components:
- Stakeholder Analysis
- Strategy Decomposition
- Adoption of Business Frameworks
- Goal Setting
- Initiatives and Action Plans
- KPIs and Performance Metrics
- Learning and Adaptation
- Alignment and Cascading of Scorecards
Benefits:
- Systematic strategy formulation and execution.
- Framework flexibility and automation.
- Enhanced alignment and strategic focus across the organization.
IMPACT Silver is a pure silver zinc producer with over $260 million in revenue since 2008 and a large 100% owned 210km Mexico land package - 2024 catalysts includes new 14% grade zinc Plomosas mine and 20,000m of fully funded exploration drilling.
How to Implement a Real Estate CRM SoftwareSalesTown
To implement a CRM for real estate, set clear goals, choose a CRM with key real estate features, and customize it to your needs. Migrate your data, train your team, and use automation to save time. Monitor performance, ensure data security, and use the CRM to enhance marketing. Regularly check its effectiveness to improve your business.
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Strategic management paper on a tertiary level hospital
1. Case Study: MAKATI MEDICAL CENTER
Arianna S. Abundo, 2020
Strategic Management
2. 1 About MMC
2 Industry and Competitor Analysis
3 Internal and Company Analysis
4 Strategy Formulation
5 Strategic Plans and Objectives
6 Monitoring and Control
7 Contingency Plans
Arianna S. Abundo, 2020
6. To be the Philippines’ undisputed leading
medical center by 2018 and competitive with
the best in the world by 2020, staffed with
highly experienced/highly qualified medical and
healthcare practitioners, enabled by state-of-
the-art diagnostic and medical/surgical
equipment and a cadre of well-trained
professional support staff. Our patients and
their families should experience the highest level
of satisfaction with the healthcare services we
provide.
Current Vision
To provide our patients with safe, effective,
appropriate and meaningful healthcare
environment, delivered by the most competent,
caring and compassionate team of medical
professionals and support staff.
Core Values summarized by the overarching
value called Malasakit: integrity, transparency,
compassionate care, service excellence,
respect, teamwork, accountability,
professionalism, safety, and quality of life.
Current Mission
Arianna S. Abundo, 2020
7. To be the Philippines’ undisputed leading
academic medical center by 2020 and
competitive with the best in the world by 2024.
Proposed Vision
Does it clearly answer the question, what
do we want to become?
Is it concise enough yet inspirational?
Is it aspirational?
Does it give clear indication as to when it
should be obtained?
Arianna S. Abundo, 2020
8. Makati Medical Center exists to provide our patients (1) with safe, effective, appropriate and
meaningful healthcare (2) of the highest standards, both within the Philippines (10) and
internationally (3). We are committed to providing the best patient experience through state-
of-the-art healthcare (4) delivered by the most competent, caring, and compassionate medical
team (7). The company aims to create an optimal environment for working (8), with
continuous enhancement of current processes and integration of new strategies to ensure
financial and operational success (5).
Makati Medical Center is guided by compassion (9), with an overall philosophy of malasakit (6)
in all the work that we do. This approach can be further divided into our ten Core Values:
integrity, transparency, compassionate care, service excellence, respect, teamwork,
accountability, professionalism, safety, and quality of life.
Proposed Mission
1. Customers
2. Products and services
3. Markets
4. Technology
5. Concern for survival, growth, and
profitability
6. Philosophy
7. Self-concept
8. Concern for employees
9. Concern for public image
10. Concern for nation building
Arianna S. Abundo, 2020
10. 10Macro-Environmental Analysis
Economic
HMOs
Strong regional
economy driving
greater total
healthcare
expenditures
PHP:USD exchange
rate
Increasing number of
business alliances
Real estate trends
Entry of
conglomerates into the
hospital industry
Social/Cultural
Prevalence of
NCDs
Population growth
trends
Attrition of
medical
professionals
Health
consciousness of
the populace
Technologic
Advances in
medical
technology
Digitalization of
hospital records
Environmental
Exposure to
disaster risk
Universal Health
Care Act
(RA 11223)
ASEAN Mutual
Recognition
Arrangement on
Medical
Practitioners
Occupational
Health and Safety
Act (RA 11058)
Political/Legal
Arianna S. Abundo, 2020
11. PHP 7.33B
PHP 5.49B
PHP 7.08B
The Industry is defined as private pay tertiary level hospitals in Metro Manila with 500 beds or more. Key
competitors are St. Luke’s Medical Center in Bonifacio Global City (SLMC-BGC) and The Medical City in Ortigas
(TMC-MAIN). These industry players are similar in terms of international accreditation, bed capacity, business
model, organizational structure, service capacity, and medical staff.
Industry Players
5 billion
6 billion
7 billion
8 billion
MMCTMC-MAIN
27.7% 35.4%
SLMC-BGC
36.9%
Arianna S. Abundo, 2020
12. Porter’s Five Forces
Philippine
Healthcare
Industry
Threat of new entrants
Moderate threat
Large-scale entry is difficult. New entrants must
compete with the strong reputation of established
healthcare providers, as well as fulfill regulations
and extensive capital requirements.
Supplier Power
Moderate
Supplier power is increased because
pharmaceuticals and medical devices are
necessary, thus allowing suppliers to negotiate
higher prices. However due to the extensive
number of firms distributing drugs and
medical devices, and the high competition to
gain hospital business, there is a weakened
net bargaining power.
Threat of substitution
Weak threat
There are very few alternatives to healthcare services,
with alternative treatments largely unproven.
Competitive Rivalry
Moderate competition
Larger hospitals compete on efficiency,
quality of care, and price. Due to their size,
they benefit from scale economies and can
negotiate competitively on pricing.
Overall strong growth of expenditure has
alleviated rivalry in recent years.
Buyer Power
Moderate
Key buyers range from individual consumers to
large-scale health insurance companies
(government-funded PhilHealth and private
insurance plans).
Buyer power is weakened because healthcare
services are essential for health and survival.
Arianna S. Abundo, 2020
13. PreviousNext
13
Competitor size
Hard to exit
Lack of
diversity
Low cost switchingNumber of players
Similarity of
players
Undifferentiated
product
100
80
60
40
20
Relative Strength: 0 (weak) to 100 (strong)
Rivalry of competition
Porter’s Five Forces
The Philippine public health system is decentralized, with over 1000
autonomous local health systems segregated by geography. This increases
rivalry of competition, as providers compete for investment and patients.
Current and forecasted strong growth of the sector, along with rising income
and population growth will alleviate rivalry.
Many hospitals offer similar services, which increases rivalry among
competitors. However, those that are able to obtain specialized equipment or
offer specialist care will have a competitive edge. Ancillary health services
have fewer points of differentiation and will compete on care and price.
Intra-segment rivalry exists, with large hospitals facing increased rivalry
from smaller clinics for outpatient care. Large hospitals have the competitive
advantage in terms of inpatient care, because they have significant capital
which allows for greater negotiation efforts with suppliers.
Large buyers (i.e. insurance companies) have high switching costs, while
individual consumers face far fewer switching costs.
There are high exit costs for the healthcare provider sector overall.
Arianna S. Abundo, 2020
14. PreviousNext
14
Distribution accessible
Little regulation
Low cost-
switching
Market growthScale unimportant
Suppliers
accessible
Undifferentiated
product
100
80
60
40
20
Relative Strength: 0 (weak) to 100 (strong)
Threat of new entrants
Porter’s Five Forces
The Filipino healthcare providers sector grew at a CAGR of 9.2% from 2014 to
2018, increasing from USD $9.9 billion in 2014 to USD $14.1 billion in 2018.
This increased investment will attract new entrants.
New entrants will find it easiest to enter on a small scale. Outpatient care
currently accounts for 22.2% of total revenues of Filipino healthcare providers
(2018), indicating that there is room for new entrants in the sector.
Conversely, large-scale ventures require significant capital for land,
buildings, and expensive healthcare equipment.
There is also increased pressure on new entrants to comply with policies
set by the Department of Health (DOH), with the threat of litigation costs and
added insurance acting as barriers to new entry.
Arianna S. Abundo, 2020
15. PreviousNext
15
100
80
60
40
20
Differentiated input
Forward
integration
Importance of
quality/cost
No substitute inputsOligopoly threat
Player
independence
Supplier size
Switching costs
Relative Strength: 0 (weak) to 100 (strong)
Bargaining power of suppliers
Porter’s Five Forces
The key suppliers in the healthcare sector are pharmaceutical
companies, healthcare equipment suppliers, and qualified staff.
Due to the large number of players, availability of generic substitutes
for innovator products, and the low switching cost from one
manufacturer to another, pharmaceutical companies have weak
bargaining power.
Healthcare equipment suppliers have moderate bargaining power. The
availability and quality of equipment are essential to the practice of
medicine, and providers on suppliers for steady delivery of products.
Many processes must be completed before a product enters the market,
and thus suppliers are able to maintain high prices. However,
conversely, there are many large distributors and competition among
them is fierce. Switching costs may be high or low depending on the
complexity of the product.
Qualified staff have strong bargaining power, with the availability of
high quality medical staff providing labor being essential to medicine.
Arianna S. Abundo, 2020
16. PreviousNext
16
Buyer
independence
100
80
60
40
20
Backwards integrationUndifferentiated product
Tendency to
switch
Buyer sizeProduct
dispensability
Price sensitivity Financial
muscle
Oligopsony threat Low cost switching
Relative Strength: 0 (weak) to 100 (strong)
Bargaining power of buyers
Porter’s Five Forces
The key buyers in the healthcare sector range from small (individual
consumers) to large (insurance companies).
With the passing of the Universal Health Care Act (RA 11223), strong
efforts have been made to enroll Filipino citizens in government-funded
PhilHealth to provide comprehensive care and easy access to medical
services. Private health insurance plans have also become popular in the
last decade, particularly as an employee benefit.
While public hospitals are funded by the government, private hospitals
are funded by payments made by patients and insurers. Contracts made
between hospitals and large insurance companies strongly impact their
revenues, as high price sensitivity of these companies could suppress
profit margins.
With the exception of some products and services (i.e. elective
treatments), generally services provided by the healthcare sector are
essential which reduces buyer power.
Both individuals and large insurance companies may incur switching
costs.
Arianna S. Abundo, 2020
17. PreviousNext
17
100
80
60
40
20
Beneficial alternative
Cheap alternativeLow cost switching
Relative Strength: 0 (weak) to 100 (strong)
Threat of substitutes
Porter’s Five Forces
Due to the essential nature of healthcare, there are few substitutes for
medical care.
One alternative may be preventive, or proactive, healthcare such as
healthy lifestyle change. This may be a substitute by preventing
occurrence or progression of many disease.
Alternative medicine can also be seen as a potential substitute for
traditional, evidence-based medicine. However, the utility of these
substitutes are low and alternative care may not be sufficient for cure.
There are also fewer regulations in place to determine efficacy and safety.
Despite the rise in preventive healthcare and existence of alternative
medicine, ultimately healthcare is still reliant on curative care and the
threat of substitutes is assessed as weak.
Arianna S. Abundo, 2020
18. Summary of Porter’s Five Forces
Philippine
Healthcare
Industry
Threat of new entrants
→ MODERATE
Supplier Power
→ MODERATE
Threat of substitution
→ WEAK
Competitive Rivalry
→ MODERATE
Buyer Power
→ MODERATE
Overall, with a CAGR of 9% and the moderate
threat of new entrants and substitutes, the
Philippine healthcare industry can be
considered moderately attractive.
In terms of competitiveness, the industry is
moderately competitive. This is supported by
the overall ratings for rivalry among existing
competitors and bargaining power of suppliers
and buyers.
Arianna S. Abundo, 2020
19. Competitive Profile Matrix
1. High quality of patient care
experience
2. Strong financial position
3. Extensive roster of medical
professionals and available specialized
services
4. Medical device innovation
5. Affiliation with third party payors
6. Price competitiveness
7. Brand awareness and marketing
8. Geographic location and accessibility
9. Well-maintained facilities and
adequate availability
TOTAL
0.14
0.14
0.14
0.13
0.13
0.08
0.08
0.08
0.08
1.00
Critical Success Factor
Importance
Weight
MMC
Rating Score
3
3
2
3
3
3
4
4
2
0.42
0.42
0.28
0.39
0.39
0.24
0.32
0.32
0.16
2.94
SLMC-BGC
Rating Score
4
4
4
4
4
2
3
3
4
0.56
0.56
0.56
0.52
0.52
0.16
0.32
0.32
0.32
3.68
TMC-MAIN
Rating Score
2
2
3
2
2
4
2
2
3
0.28
0.28
0.42
0.26
0.26
0.32
0.32
0.24
0.24
2.38
Arianna S. Abundo, 2020
20. Makati Medical Center faces a substantial threat
from St. Luke’s Medical Center (BGC) for the
following reasons:
1. SLMC-BGC provides comparable, if not better,
client care to the same target demographic
2. SLMC-BGC may choose to price services
competitively (low- to medium-probability)
3. SLMC-BGC has the financial muscle to undertake
aggressive modernization
4. SLMC-BGC can undertake geographic expansion
west or south of Makati
5. SLMC-BGC has the physical space to expand its
facilities
SLMC-BGC 3.68
MMC 2.94
TMC-MAIN 2.38
Results of CPM
Arianna S. Abundo, 2020
21. External Factor
Evaluation (EFE) Matrix
Opportunities Importance Weight Rating Weighted Score
O1 Day-time population of 4.7 million and an
additional night-time market contributed by the BPO
industry
0.10 3 0.30
O2 Increasing healthcare expenditure from HMOs
and private sources
0.10 4 0.40
O3 Rise of self-contained communities or townships 0.10 2 0.20
O4 Rise in business alliances 0.10 4 0.40
O5 Shifting health needs of the population 0.05 3 0.15
O6 Advances in technology 0.05 3 0.15
O7 Health consciousness of the populace 0.05 3 0.15
TOTAL OPPORTUNITIES SCORE 0.55 1.75
Arianna S. Abundo, 2020
22. External Factor
Evaluation (EFE) Matrix
Threats Importance Weight Rating Weighted Score
T1 Increased competition for medical professionals 0.10 2 0.20
T2 Rapid obsolescence of medical equipment 0.10 3 0.30
T3 Conglomerates and real estate developers that
are expanding their own hospital networks
0.10 1 0.10
T4 Increased investment in public health care 0.05 2 0.10
T5 Volatile exchange rate and depreciating peso 0.05 3 0.15
T6 Exposure to geological hazards 0.05 2 0.10
TOTAL THREATS SCORE 0.45 0.95
Arianna S. Abundo, 2020
23. Importance Weight Weighted Score
Total Opportunities Score 0.55 1.75
Total Threats Score 0.45 0.95
TOTAL EFE SCORE 1.00 2.70
With an EFE score of 2.70, Makati Medical Center’s response to opportunities and threats
in its macro-environment is within acceptable level.
The firm has largely made efforts to capitalize on opportunities yet takes a passive
approach to looming threats.
In order to more aggressively respond to the macro-
environment, the firm must continue its efforts in capturing all
opportunities while striving to go beyond the actions of its
competitors in response to threats.
Arianna S. Abundo, 2020
25. Internal Factor
Evaluation (IFE) Matrix
Strengths Importance Weight Rating Weighted Score
S1 Strong brand 0.15 4 0.60
S2 Business systems in place 0.15 4 0.60
S3 Competitive pricing vs. industry leader 0.10 3 0.30
S4 Profitable operations 0.10 3 0.30
S5 Strong ties with third party payors 0.10 3 0.30
S6 High quality of patient care experience 0.05 4 0.20
S7 Updated medical devices 0.05 3 0.15
TOTAL STRENGTHS SCORE 0.70 2.45
Arianna S. Abundo, 2020
26. Internal Factor
Evaluation (IFE) Matrix
Weaknesses Importance Weight Rating Weighted Score
W1 Decreasing relative market share 0.10 1 0.10
W2 Lack of expansion sites 0.05 1 0.05
W3 Lack of medical research program 0.05 1 0.05
W4 Outdated facilities compared to competitor
facilities
0.05 1 0.05
W5 Fewer subspecialties compared to competitor 0.05 2 0.10
TOTAL WEAKNESSES SCORE 0.70 0.35 0.95
Arianna S. Abundo, 2020
27. Importance Weight Weighted Score
Total Strengths Score 0.70 2.45
Total Weaknesses Score 0.30 0.35
TOTAL IFE SCORE 1.00 2.80
With an IFE score of 2.80, Makati Medical Center has a relatively strong internal position.
It has been able to generate considerable company strengths while minimizing its
weaknesses, placing it in a good competitive position to capture opportunities and
minimize the impact of threats.
In terms of future direction, the firm must capitalize on its
strengths to regain the greatest market share, and remedy
internal weaknesses by looking into expansion and increased
investments into research and physical facilities.
Arianna S. Abundo, 2020
29. SWOT Matrix
STRENGTHS
WEAKNESSES
Decreasing
relative
market share
Lack of
medical
research
program
Fewer
sub-
specialties
Lack of
expansion
sites
Outdated
facilities
Strengths - Weaknesses
Strong
brand
Business
systems
in place
Competitive
pricing
Profitable
operations
Strong ties
with 3rd
party payors
High
quality of
patient
care
Updated
medical
devices
Arianna S. Abundo, 2020
30. Increased competition for medical
professionals
Rapid obsolescence of medical equipment
Conglomerates and real estate developers
expanding their own hospital networks
Increased investment in public health care
Volatile exchange rate and depreciating
peso value
Exposure to geological hazards
T1
T2
T3
T4
T5
T6
Daytime population of 4.7 million and an
additional nighttime market contributed by
the BPO industry
Increasing healthcare expenditure from
HMOs and private sources
Rise of self-contained communities or
townships offer more expansion
opportunities
Rise in business alliances
Shifting health needs of the population
Advances in technology
Health consciousness of the populace
O1
O2
O3
O4
O5
O6
O7
OPPORTUNITIES THREATS
SWOT Matrix
Opportunities - Threats
Arianna S. Abundo, 2020
31. SWOT Matrix
SO Strategies
S
Strengths
O
Opportunities
S0 Strategies
SO1: Replicate niche, off-site centers (such as the
Women’s Comprehensive Center) in its present market
and in regions with high disposable income, and adopt
premium pricing. (S1, S6, O3, O5)
SO4: Develop comprehensive, affordable bundled service
packages for employee annual physical exams for
corporate partner needs. (S3, S5, S6, S7, O1, O4)
S1: Strong brand
S2: Business systems in place
S3: Competitive pricing (vs. industry leader)
S4: Profitable operations
S5: Strong ties with third party payors
S6: High quality of patient care experience
S7: Updated medical devices
O1: Daytime population of 4.7 million and an
additional nighttime market contributed by the
BPO industry
O2: Increasing healthcare expenditure from
HMOs and private sources
O3: Rise of self-contained communities or
townships offer more expansion opportunities
O4: Rise in business alliances
O5: Shifting health needs of the population
O6: Advances in technology
O7: Health consciousness of the populace
SO2: Open Makati Med-branded regional and satellite
clinics. (S1, O5, O6, O7)
SO3: Develop a content-driven website and app similar
to Mayo Clinic to encourage patients to consult with
physicians. (S1, O5, O6, 07)
Arianna S. Abundo, 2020
32. SWOT Matrix
WO Strategies
W
Weaknesses
O
Opportunities
W0 Strategies
WO1: Set up hospital branches in Central Luzon and
Calabarzon region with 300 beds or more. (W1, W2, O2, O3)
WO4: Establish the hospital as an academic hub through
increased research exposure. (W3, W5, O6)
W1: Decreasing relative market share
W2: Lack of expansion sites
W3: Lack of medical research program
W4: Outdated facilities compared to competitor
W5: Fewer subspecialties compared to
competitor
O1: Daytime population of 4.7 million and an
additional nighttime market contributed by the
BPO industry
O2: Increasing healthcare expenditure from
HMOs and private sources
O3: Rise of self-contained communities or
townships offer more expansion opportunities
O4: Rise in business alliances
O5: Shifting health needs of the population
O6: Advances in technology
O7: Health consciousness of the populace
WO2: Partner with more HMOs to have exclusive hospital
wings to give members priority and privileged treatment. (W4,
O2, O4)
WO3: Expand the Strategic Hospital Alliance Program to
include more regional and international hospital partners.
(W2, O4)
WO5: Establish linkages with government agencies and
organizations of Filipino expatriates for medical tourism. (W1,
O4)
Arianna S. Abundo, 2020
33. SWOT Matrix
ST Strategies
S
Strengths
T
Threats
ST Strategies
ST1: Partner with real estate developers that do not
have their own associated hospital networks to establish
a presence in self-contained communities. (S3, S6, T3)
ST4: Minimize currency risk by exercising foreign
exchange options. (S4, T5)
S1: Strong brand
S2: Business systems in place
S3: Competitive pricing (vs. industry leader)
S4: Profitable operations
S5: Strong ties with third party payors
S6: High quality of patient care experience
S7: Updated medical devices
T1: Increased competition for medical
professionals
T2: Rapid obsolescence of medical equipment
T3: Conglomerates and real estate developers
expanding their own hospital networks
T4: Increased investment in public health care
T5: Volatile exchange rate and depreciating peso
value
T6: Exposure to geological hazards
ST2: Strengthen existing employee incentives,
compensation, and rewards programs to increase
employee satisfaction and lower attrition rates. (S4, T1)
ST3: Develop strategic alliances and partnerships with
foreign institutions to offer more specialized training,
care, and biomedical equipment. (S1, S6, S7, T2, T4)
Arianna S. Abundo, 2020
34. SWOT Matrix
WT Strategies
W
Weaknesses
T
Threats
WT Strategies
WT1: Form and strengthen current strategic alliances
with academic centers and learning institutions to
provide direct and unique employment opportunities.
(W3, W5, T1, T4)
WT4: Develop a robust medical research department
with a required set of publications per department per
year. (W3, T1, T4)
W1: Decreasing relative market share
W2: Lack of expansion sites
W3: Lack of medical research program
W4: Outdated facilities compared to competitor
W5: Fewer subspecialties compared to
competitor
WT2: Develop stronger partnerships with medical
schools to allow for more clinical rotations and increased
exposure of training physicians. (W3, W5, T1, T4)
WT3: Develop a Disaster Assistance and Preparedness
Program (DAPP), investigate possible evacuation sites,
and run regular drills. (W4, T6)
T1: Increased competition for medical
professionals
T2: Rapid obsolescence of medical equipment
T3: Conglomerates and real estate developers
expanding their own hospital networks
T4: Increased investment in public health care
T5: Volatile exchange rate and depreciating peso
value
T6: Exposure to geological hazards
Arianna S. Abundo, 2020
35. 1
2
3
4
Grouping of
Strategies
Backward Integration
Product Development
Market Penetration
Market Development
5 Diversification
6 Retrenchment
SO3: Develop a content-driven
website and app similar to Mayo
Clinic to encourage patients to
consult with physicians.
ST2: Strengthen existing employee
incentives, compensation, and
rewards programs to increase
employee satisfaction and lower
attrition rates.
WT1: Form and strengthen current
strategic alliances with academic
centers and learning institutions to
provide direct and unique
employment opportunities.
WT2: Develop stronger
partnerships with medical schools
to allow for more clinical rotations
and increased exposure of training
physicians.
Arianna S. Abundo, 2020
36. 1
2
3
4
Grouping of
Strategies
Backward Integration
Product Development
Market Penetration
Market Development
5 Diversification
6 Retrenchment
SO1: Replicate niche, off-site centers
(such as the Women’s Comprehensive
Center) in its present market and in
regions with high disposable income, and
adopt premium pricing.
SO4: Develop comprehensive, affordable
bundled service packages for employee
annual physical exams for corporate
partner needs.
WO2: Partner with more HMOs to have
exclusive hospital wings to give members
priority and privileged treatment.
WO4: Establish the hospital as an
academic hub through increased research
exposure.
WT4: Develop a robust medical research
department with a required set of
publications per department per year.
ST3: Develop strategic alliances and
partnerships with foreign institutions to
offer more specialized training, care, and
biomedical equipment.Arianna S. Abundo, 2020
37. 1
2
3
4
Grouping of
Strategies
Backward Integration
Product Development
Market Penetration
Market Development
5 Diversification
6 Retrenchment
WO1: Set up hospital branches in
Central Luzon and Calabarzon
region with 300 beds or more.
WO3: Expand the Strategic
Hospital Alliance Program to
include more regional and
international partners.
ST1: Partner with real estate
developers that do not have their
own associated hospital networks
to establish a presence in self-
contained communities.
Arianna S. Abundo, 2020
39. 1
2
3
4
Grouping of
Strategies
Backward Integration
Product Development
Market Penetration
Market Development
5 Diversification
6 Retrenchment
Related Diversification
WO5: Establish linkages with
government agencies and
organizations of Filipino expatriates
for medical tourism.
Unrelated Diversification
WT3: Develop a Disaster
Assistance and Preparedness
Program (DAPP), investigating
possible evacuation sites, and run
regular drills.
Arianna S. Abundo, 2020
41. Strategic Position and Action Evaluation
Market share -2
Quality of patient care -1
Strategic location and
accessibility -3
Physician roster -3
Information technology -2
Utilization rate -6
TOTAL -17
Average -2.8
Liquidity +5
Profitability +6
Sales growth +5
Leverage +5
Cash flow +5
TOTAL +26
Average +5.2
Industry Position (IP)
SPACE Matrix
Stability Position (SP)
Industry growth +6
Industry profit margins +6
Rivalry of competition +3
Barriers to exit +3
Substitutes +6
TOTAL +24
Average +4.8
Competitive Position (CP)
Technological changes -7
Foreign exchange rate -4
Household income and
health expenditures -1
Non-communicable
diseases (NCDs) -2
Environmental risks -4
TOTAL -18
Average -3.6
Financial Position (FP)
Arianna S. Abundo, 2020
42. Organizations that fall in the aggressive quadrant
are in an excellent position to use internal
strengths to take advantage of external
opportunities, overcome internal weaknesses, and
avoid external threats.
Makati Medical Center is a financially strong firm
that has achieved many competitive advantages in
a growing and stable industry.
FP
SP
IPCP
Strategic Position and Action Evaluation
SPACE Matrix
CONSERVATIVE AGGRESSIVE
DEFENSIVE COMPETITIVE
(2.0, 1.6)
Arianna S. Abundo, 2020
43. • Market penetration
• Market development
• Product development
• Backward integration
• Forward integration
• Horizontal integration
• Diversification
FP
SP
IPCP
Strategic Position and Action Evaluation
SPACE Matrix
CONSERVATIVE AGGRESSIVE
DEFENSIVE COMPETITIVE
(2.0, 1.6)
Relevant Strategies:
Arianna S. Abundo, 2020
44. BCG Growth-Share Matrix
❖ Using net profit margin, the profitability for SLMC-BGC is 25% while MMC is at 8%.
❖ No data was available regarding the profitability of each segment.
MMC Relative Market Share
1.0
0.92
Inpatient
Outpatient
MMC Market
Share
SLMC-BGC
Market Share
MMC Relative
Market Share
Industry Growth
Rate (‘17-’18)
Inpatient 36% 35% 1.0 15.2%
Outpatient 35% 38% 0.92 8.6%
20
30
40
Inpatient Outpatient
MMC SLMC-BGC
Market share per segment
(2018)
Industry Growth Rate
(2017-2018)
INPATIENT
OUTPATIENT
15.2%
8.6%
Arianna S. Abundo, 2020
45. BCG Growth-Share Matrix
MMC Market
Share
SLMC-BGC
Market Share
MMC Relative
Market Share
Industry Growth
Rate (‘17-’18)
Inpatient 36% 35% 1.0 15.2%
Outpatient 35% 38% 0.92 8.6%
Question Mark
Products with high market
growth but low market share
and uncertain growth rate.
Dogs
Products that should be taken
off market if not profitable.
Cash Cows
Very profitable products w/
strong market growth and
high and stable market share.
Relative Market Share
MarketGrowthRate
High
Low
LowHigh
Invest
Slim
Skim
Divest
Stars
Potentially profitable products
with high market share in a
rapidly growing market.
+20
0
-20
1.0 0.50 0.0
Inpatient
Outpatient
Arianna S. Abundo, 2020
47. BCG Growth-Share Matrix
MMC Market
Share
SLMC-BGC
Market Share
MMC Relative
Market Share
Industry Growth
Rate (‘17-’18)
Inpatient 36% 35% 1.0 15.2%
Outpatient 35% 38% 0.92 8.6%
Relative Market Share
MarketGrowthRate
High
Low
LowHigh
Invest
Slim
Skim
Divest
+20
0
-20
1.0 0.50 0.0
Inpatient
Outpatient
Stars
Potentially profitable products with high market share in
a rapidly growing market.
• These divisions represent the firm’s best
long-run opportunities for growth and
profitability
• High relative market share
• High industry growth rate
• These segments should receive substantial
investment to maintain or strengthen their
dominant positions
Arianna S. Abundo, 2020
48. Internal-External (IE) Matrix
LowMediumHigh Strong Average Weak
ExternalFactorEvaluation
Internal Factor Evaluation
I II III
IV V VI
VII VIII IX
2.80
2.70
• Market penetration
• Product development
Hold and maintain strategies are recommended:
Arianna S. Abundo, 2020
49. Future Market Growth: RAPIDGrand Strategy Matrix
• The entire Philippine healthcare provider sector has
experienced massive growth over a 4-year period
(2014-2018: between 7.4% and 10.4%)
• Forecasted to continue growing between 8.2% and 9.2%
• Stimulated by economic growth, higher employment
levels, social insurance contributions, and increased
demand and interest in the industry
Competitive Position: STRONG
• MMC is the second leading firm in the industry, with a
CPM rating of 2.94 (SLMC-BGC: 3.84)
• With an EFE score of 2.70 and an IFE score of 2.80, the firm
is able to respond to external threats and deal with internal
weaknesses
RAPID MARKET GROWTH
SLOW MARKET GROWTH
STRONG
COMPETITIVE
POSITION
WEAK
COMPETITIVE
POSITION
QUADRANT IQUADRANT II
QUADRANT IVQUADRANT III
Arianna S. Abundo, 2020
50. Grand Strategy Matrix
RAPID MARKET GROWTH
SLOW MARKET GROWTH
STRONG
COMPETITIVE
POSITION
WEAK
COMPETITIVE
POSITION
QUADRANT IQUADRANT II
QUADRANT IVQUADRANT III
• Market penetration
• Market development
• Product development
Firms in Quadrant I are in an excellent strategic
position to continue concentrating on current
markets and products.
Recommended strategies:
Arianna S. Abundo, 2020
51. Summary of Strategies
SWOT SPACE BCG IE GRAND TOTAL
Backward integration
Forward integration
Horizontal integration
Product development
Market penetration
Market development
Related diversification
Unrelated diversification
Retrenchment
Divestiture
Liquidation
3
2
2
5
5
4
2
1
1
0
0
Market penetration 5
Arianna S. Abundo, 2020
52. QSPM
Quantitative Strategic Planning Matrix
Key Factors Weight
Product
Development
Market
Penetration
Market
Development
AS TAS AS TAS AS TAS
OPPORTUNITIES
O1: Daytime population of 4.7 million and an additional nighttime market
contributed by the BPO industry
0.10 3 0.3 4 0.4 2 0.2
O2: Increasing healthcare expenditure from HMOs and private sources 0.10 4 0.4 4 0.4 4 0.4
O3: Rise of self-contained communities or townships offer more expansion
opportunities
0.10 4 0.4 2 0.2 4 0.4
O4: Rise in business alliances 0.10 4 0.4 4 0.4 4 0.4
O5: Shifting health needs of the population 0.05 4 0.2 4 0.2 4 0.2
O6: Advances in technology 0.05 4 0.2 4 0.2 4 0.2
O7: Health consciousness of the populace 0.05 4 0.2 4 0.2 4 0.2
Subtotal 0.55 2.1 2.0 2.0
Arianna S. Abundo, 2020
53. Key Factors Weight
Product
Development
Market
Penetration
Market
Development
AS TAS AS TAS AS TAS
THREATS
T1: Increased competition for medical professionals 0.10 2 0.2 2 0.2 2 0.2
T2: Rapid obsolescence of medical equipment 0.10 4 0.4 2 0.2 3 0.3
T3: Conglomerates and real estate developers expanding their own hospital
networks
0.10 3 0.3 2 0.2 4 0.4
T4: Increased investment in public health care 0.05 4 0.2 4 0.2 3 0.15
T5: Volatile exchange rate and depreciating peso value 0.05 - - - - - -
T6: Exposure to geological hazards 0.05 - - - - - -
Subtotal 0.45 1.1 0.8 1.05
QSPM
Quantitative Strategic Planning Matrix
Arianna S. Abundo, 2020
54. Key Factors Weight
Product
Development
Market
Penetration
Market
Development
AS TAS AS TAS AS TAS
STRENGTHS
S1: Strong brand 0.15 4 0.6 4 0.6 4 0.6
S2: Business systems in place 0.15 3 0.45 3 0.45 4 0.6
S3: Competitive pricing (vs. industry leader SLMC-BGC) 0.10 4 0.4 4 0.4 4 0.4
S4: Profitable operations 0.10 4 0.4 4 0.4 4 0.4
S5: Strong ties with third party payors 0.10 3 0.3 3 0.3 3 0.3
S6: High quality of patient care experience 0.05 3 0.15 4 0.2 4 0.2
S7: Updated medical devices 0.05 4 0.2 3 0.15 3 0.15
Subtotal 0.55 2.1 2.0 2.0
QSPM
Quantitative Strategic Planning Matrix
Arianna S. Abundo, 2020
55. Key Factors Weight
Product
Development
Market
Penetration
Market
Development
AS TAS AS TAS AS TAS
WEAKNESSES
W1: Decreasing relative market share 0.10 4 0.4 3 0.3 4 0.4
W2: Lack of expansion sites 0.05 1 0.05 3 0.15 3 0.15
W3: Lack of medical research program 0.05 2 0.1 3 0.15 2 0.1
W4: Outdated facilities compared to competitor 0.05 4 0.2 2 0.1 2 0.1
W5: Fewer subspecialties compared to competitor 0.05 3 0.15 3 0.15 1 0.05
Subtotal 0.30 0.9 0.85 0.8
TOTAL 1.00 6.6 6.15 6.5
QSPM
Quantitative Strategic Planning Matrix
Arianna S. Abundo, 2020
57. Strategic Challenge
MMC exists within an industry
exhibiting a 3-year CAGR of 9.0%.
Rapid Industry
Growth
Moderate overall risk from rivalry of
competition, threat of new entrants and
substitutes, and bargaining power of
suppliers and buyers
Competitive
Environment
Proposed Vision: To become the
Philippines’ undisputed leading
academic medical center by 2020
and competitive with the best in the
world by 2024.
Network
Expansion
Strengths: Strong brand reputation, state-of-
the-art medical devices, streamlined business
processes
Weaknesses: Landlocked, outdated facility,
lack of a robust research division, fewer
specialties and sub-specialties.
Competitive
Position
Opportunities: Rise in business alliances, HMO
partnerships, changing needs of the population
Threats: Increased investment in public health
care, risks of healthcare personnel shortage, and
conglomerates and real estate developers
expanding their hospital networks
Opportunities
& Threats
Arianna S. Abundo, 2020
58. Corporate Strategic Objective
Functional Strategic Objective: Organizational Growth
Functional Strategic Objective: Finance
Functional Strategic Objective: Marketing3
2
1
Recommended
Objectives
Expand services and promote brand growth to position MMC as the undisputed leading
internationally-accredited private, tertiary hospital of choice in the country with a market share
of at least 40% by the end of 2022.
Achieve a 4-year average revenue growth between 12% and 14% CAGR, generate PHP11.5B
in gross revenues, PHP1.57B in net operating profit, and PHP1.05B in net profit by 2022.
Establish a strong brand identity as an academic institution at the forefront of medical
development and research by 2022.
Attain a roster of 1,600 affiliated board-certified physicians practicing across at least 150
specialties and subspecialties by 2022.
4
Arianna S. Abundo, 2020
59. Corporate
Strategic
Objective
Expand services and promote brand growth to position Makati
Medical Center as the undisputed leading internationally-
accredited private, tertiary hospital of choice in the country
with a market share of at least 40% by the end of 2022.
• Patient Confidence Remains High: The firm’s ability to
provide quality patient care is solidified with consistent
JCI re-accreditation and numerous awards received
• Improvements to be Addressed: In recent years, MMC
has lagged behind competitors in terms of infrastructure,
physical facilities, and service offerings
• Failure to Capitalize: MMC’s strong brand should be
used to promote growth to reach a growing population
with varying needs
• Reaching a 40% Market Share: With a rapidly growing
Philippine healthcare industry and promising business
operations, an increase of roughly 5% is a realistic goal
Arianna S. Abundo, 2020
60. Finance
Objective
Achieve 4-year average revenue growth between 12% to 14%
CAGR, generate PHP 11.5 billion in gross revenues, PHP 1.57
billion in net operating profit, and PHP 1.05 billion in net
profit by 2022.
• Keys to Strong Financial Positioning: Increasing revenues
and profitability will aid in brand growth through expansion.
• Maintain Status Quo, Stay in Second Place: Assuming an
industry rate of 9% and 2018 market share of 35.6%, the firm
is projected to have a gross revenue of nearly PHP 10B by
2022.
• Implementing Strategies to See Financial Improvements:
Proposed strategies predict year-on-year growth rates of
10% to 16%, leading to a future 4-year CAGR of 13.83%
(2019-2022) and doubling of net profit margins to PHP
1.05M in 2022.
• Growth Trends: Initial dip in 2019 then slow growth as
expansion begins, followed by the most rapid growth by end
of 2020 and going into 2021.
Arianna S. Abundo, 2020
61. Marketing
Objective
Establish a strong brand identity as an academic institution at
the forefront of medical development and research by 2022.
• Room for Improvement: Results of the Internal Audit
indicate that a majority of research is done to fulfill
academic requirements.
• Research Engagement Improves Health Services
Performance: Out of 33 papers studied, 28 described
positive performance as a result of research with 17
reporting direct consequences as a result of research
interventions (Hanney, et al., 2015).
• Understanding Potential: In order to achieve real
transformation in the research landscape, hospital
administration must develop staff capacity and promote
a culture that supports research and research use.
Arianna S. Abundo, 2020
62. Organizational Growth
Objective
Attain a roster of 1,600 affiliated board-certified physicians
practicing across at least 150 specialties and subspecialties
by 2022.
• Competition is Fierce: An extensive roster of physicians
can provide an advantage for competing firms that offer
similar products.
• Necessary Requirements: These physicians must be
actively practicing at the hospital and have received their
diplomate status in their respective specialty societies as
well as further subspecialties.
• A Multitude of Benefits: Patients are more likely to
gravitate to institutions that offer their desired services,
while physicians will want to train and practice at an
institution that can offer prestige through modern
advances in medicine.
Arianna S. Abundo, 2020
63. Strategy 1
Replicate niche, off-site centers in
its present market and in regions
with high disposable income and
adopt premium pricing.
Strategy 2
Develop strategic alliances and
partnerships with foreign
institutions to offer more
specialized training, care, and
biomedical equipment.
Strategy 3
Set up hospital branches in Central
Luzon and Calabarzon regions
with 300 beds or more.
Strategy 4
Open Makati Med-branded
regional and satellite clinics.
Recommended Strategies
Category Strategy
Contribution to total
growth rate
2020 2021 2022
Product
Development
Strategy 1 3% 3% 3%
Strategy 2 1% 2% 2%
Market
Penetration
Strategy 3 - - -
Market
Development
Strategy 4 7% 10% 11%
Total annual growth rate 11% 15% 16%
Arianna S. Abundo, 2020
64. • 2018: The Women’s Comprehensive Center was
established for dedicated women’s services
• Key differences:
-Non-hospital environment
-Focused target demographic
• Changing population trends could determine other
potential key populations (geriatrics, adult males,
pediatrics, LGBTIQ+)
• Benefits of off-site centers:
-Caters to specific needs
-Offers the ultimate convenience for busy patients
Replicate niche, off-site
centers in its present
market and in regions
with high disposable
income and adopt
premium pricing.
Develop strategic alliances
and partnerships with foreign
institutions to offer more
specialized training, care, and
biomedical equipment.
Set up hospital branches in
Central Luzon and Calabarzon
with 300 beds or more.
Open Makati Med-branded
regional and satellite clinics.
1
Recommended Strategies
Arianna S. Abundo, 2020
65. • Strategic Hospital Alliance Program (SHAP) extends
MMC services to the rest of the country
-Over 100 partners in 2018
-Accounted for nearly 47% of hospital-wide revenue
• Joining the Mayo Care Clinic Network
-Largest not-for-profit, academic health systems
serving more than 1.5 million patients across the US
and over 140 countries
• Benefits of membership:
-Telemedicine (eConsults, AskMayoExpert)
-Business Advice (Healthcare Consulting)
-Multidisciplinary Panel (eTumor Board conferences)
Develop strategic
alliances and partnerships
with foreign institutions
to offer more specialized
training, care, and
biomedical equipment.
Set up hospital branches in
Central Luzon and Calabarzon
with 300 beds or more.
Open Makati Med-branded
regional and satellite clinics.
Recommended Strategies
2
Replicate niche, off-site
centers in its present market
and in regions with high
disposable income and adopt
premium pricing.
Arianna S. Abundo, 2020
66. • Both are areas with high potential:
-2018 GDP per capita of PHP100,000 and above
-Calabarzon: forecasted CAGR of 1.7% between
2020 and 2025
-Highest estimated populations by 2025
• A growing population will add strain to an already
existing shortage of hospitals
-Population is forecasted to grow from 105 million
in 2018 to 142 million by 2045
-Current doctor ratio is 1:33,000 (global average
1:6,600)
• Currently not recommended due to the large costs
and heavy competition associated
Replicate niche, off-site
centers in its present market
and in regions with high
disposable income and adopt
premium pricing.
Develop strategic alliances and
partnerships with foreign
institutions to offer more
specialized training, care, and
biomedical equipment.
Set up hospital
branches in Central
Luzon and Calabarzon
with 300 beds or more.
Open Makati Med-branded
regional and satellite clinics.
Recommended Strategies
3
Arianna S. Abundo, 2020
67. • Investing outside hospital walls to “follow the
patient”
-Large players are investing heavily in regional and
satellite clinics to match the strong demand for
outpatient services
-Patients increasingly want cheaper and more
convenient care
• Key factors of outpatient clinics:
-Typically generate lower revenue but provide higher
profit and require less capital to build and run
-Technology improvements will shift more
procedures to outpatient basis
-The firm can determine how to most efficiently
distribute its resources between facility types
Replicate niche, off-site
centers in its present market
and in regions with high
disposable income and adopt
premium pricing.
Develop strategic alliances and
partnerships with foreign
institutions to offer more
specialized training, care, and
biomedical equipment.
Set up hospital branches in
Central Luzon and Calabarzon
with 300 beds or more.
Open Makati Med-
branded regional and
satellite clinics.
Recommended Strategies
4
Arianna S. Abundo, 2020
68. Jan NovOctFeb Mar Apr May Jun Jul Aug Sep Dec
Draft a CAPEX plan for
proposed centers, with
feasible number of sites
for first round.
Strategy 1: Replicate niche, off-site centers in its present market and in regions
with high disposable income, and adopt premium pricing.
Seek out, negotiate, and formalize agreements
with new investors and MMC.
Secure borrowings from the bank.
Formalize rental
agreements.
Identify suitable
locations for clinics.
Determine personnel
requirements.
Identify competitor
offerings.
Conduct research and feasibility assessment
with formal market research.
Finance construction
of off-site centers.
Purchase equipment.
Provide assessment of strategy effectiveness, computation of ROI, and timely updates on budget.
Identify and recruit
physicians in key
specialties, along with allied
health professionals.
Establish training programs.
Form Construction Committee
and commence construction once
all equipment and requirements
are complete.
Formulate strategic marketing
campaign that includes launch
activities and service pricing.
Assign clinic
spaces.
Finalize doctors’ schedules
and division of tasks and
responsibilities.
Launch fully operational
off-site clinics.
Ensure proper implementation and operational efficiency.
Conduct continuing post-launch
promotional events and sales activities.
Conduct post-launch assessment.
Jan2020
Finance – Operations – Marketing
69. Jan NovOctFeb Mar Apr May Jun Jul Aug Sep Dec
Seek out and negotiate
new partnerships with
institutions or companies.
Strategy 2: Develop strategic alliances and partnerships with foreign institutions
to offer more specialized training, care, and biomedical equipment.
Formalize agreements
between MMC and institutions.
Ensure proper funding for activities and timely updates on budget (cost management).
Negotiate partnership arrangements
with foreign institutions.
Develop new product offerings to
address specific needs of target
market.Conduct research and feasibility assessment
with formal market research.
Brainstorm target demographic.
Formulate strategic marketing
campaign that includes launch
activities.
Launch
partnerships.
Conduct continuing post-launch
promotional events and sales activities.
Conduct post-launch assessment.
Jan2020
Finance – Operations – Marketing
Provide assessment on effectiveness of strategies and computation of ROI.
Determine staffing requirements.
Establish training
programs.
Develop network referral systems.
Arianna S. Abundo, 2020
70. Strategy 3: Set up hospital branches in Central Luzon and Calabarzon region with
300 beds or more.
Strategy 4:
Open Makati Med-branded regional and satellite clinics.
▪ Currently not recommended
▪ Will have departmental action plans similar to Strategy 1
Arianna S. Abundo, 2020
71. Financial
Projections
NARRATIVE ON ASSUMPTIONS
YEAR 3
Clinics are fully operational by Q1
Desired growth rate is achieved by Q4
YEAR 2
Construction of clinics begins in Q2
Strategic alliances and partnerships
launch in Q3
Opening of clinics targeted for Q3
YEAR 1
Growth will remain slow until the end of
2019 (prior to implementation of
strategies)
LOW 10%
MEDIUM 15%
HIGH 16%
13.38%
Future assumed
4-year CAGR
(2019-2022)
There is an expected increase in
operating expenses from:
• Addition of approximately 20 personnel per proposed
clinic (by end of Year 2)
• Operating expenses of proposed clinics (by end of Year 2)
• A 30% increase in advertising expenses
• Training of hospital staff (i.e. continuing education
courses)
Threats that could slow down
revenue growth and reduce market
share:
• Inability to adequately staff new clinics due to increased
competition for medical professionals
• The opening of rival off-site and satellite clinics by
conglomerates and real estate developers
• Implementation of the Universal Health Care Law will
have increased investment in public healthcare (2020
onwards)
Arianna S. Abundo, 2020
72. Financial
Projections
Income and
Expenses
Financial
Position
Cash Flow
NARRATIVE ON ASSUMPTIONS
Expected growth due to macro-environmental forces and the firm’s
intensive expansion strategies (robust clinic network, new product
development). The trend yields an assumed 4-year CAGR of nearly
14%.
Gross revenues
Decreasing trend due to the firm’s minimizing of discounts offered in
order to retain larger profits.
Discounts and free services
Due to increase in manpower, opening of additional clinics, and
depreciation of new equipment. Cost of sales will represent 55% of
total gross revenues by 2022, down from 57% in 2018 as a result of
effective cost management.
Cost of services
Due to increase in back office expenses (finance, HR, general
management, utilities) and volume of operations. Administrative
expenses as a percentage of gross revenues will show a decreasing
trend (from 23.5% in 2019 to 22.5% in 2022) as the firm becomes
more efficient.
Administrative expenses
There will be no change in other income. A 20% increase in interest
(income) expenses is likely due to debt financing arrangements.
There is an income tax expense of 30%.
Others
2020 2022
10.50% 9.70%
2020 2022
10% 15%
+11%
+15%
+16%
2020 2021 2022
Year on year growth trends
2020 2022
9% 14%
Arianna S. Abundo, 2020
73. Financial
Projections
Financial
Position
NARRATIVE ON ASSUMPTIONS
Will decrease from 2019 to 2020 owing to the financing of clinics;
from 2020 onwards there will be a steady increase after completion
of expansion.
Cash and cash
equivalents
A 40 days average collection period (up slightly from 39 days) will
result in an increase from 12 to 16% (2020 to 2022) in net receivables.
Receivables,
net
An increase of 11 to 15% (2020 to 2022) is mainly related to the
increasing needs of the new clinics opening by end of 2020. The
average inventory period will be 30 days.
Inventories,
net
There will be a decrease of 10% as the firm will focus on cash items
during its expansion rather than those which cannot be converted to
cash.
Prepayments
and other
current assets
Will see an increase of 25%, 10%, and 10% (2020, 2021, and 2022,
respectively). This is related to the total acquisition of PHP 2.8B
(2020), PHP 1.8B (2021), and PHP 2B (2022) for the opening of new
clinics to improve product development and market development.
Property and
equipment
- A 5% decrease in other non-current assets due to the firm’s focus
on cash items.
- Trade and other payables maintained, with current suppliers
having 75 days payable.
- Income tax is assumed to be evenly incurred during the year.
- A total of PHP 2.15B in borrowings will be made in the next 3 years
to finance brand expansion.
- Retirement benefit obligation will increase by 5% based on annual
salary growth of employees.
Others
Arianna S. Abundo, 2020
74. Financial
Projections
Cash Flow
NARRATIVE ON ASSUMPTIONS
Cash Inflows
Cash outflows will see a large increase in 2020 due to
payments for property and equipment needed to establish
the new clinics.
Cash Outflows
The firm is expected to show an increasing ending cash
balance from 2020 to 2022, as the effects of all the
implemented strategies and recommendations manifest.
Cash Balance
The bulk of cash inflows will initially come from the release of
bank borrowings, with a growing amount coming from
hospital revenues by the end of 2020 as the off-site and
satellite clinics become fully operational.
Bank Borrowings
2020 PHP 1.05 billion
2021 PHP 550 million
2022 PHP 550 million
Arianna S. Abundo, 2020
75. Financial
Projections
HISTORICAL (2016-2018) AND PROJECTED STATEMENTS OF INCOME
In PHP, thousands 2016 (Actual) 2017 (Actual) 2018 (Actual)
2019
(Projected)
2020
(Projected)
2021
(Projected)
2022
(Projected)
Gross revenues 5,906,167.00 6,375,792.00 7,076,833.00 7,807,242.59 8,628,087.40 9,919,936.65 11,514,856.34
Less: Discounts and free services 608,413.00 629,500.00 742,699.00 823,664.09 905,949.18 991,993.67 1,116,941.06
Net revenues 5,297,754.00 5,746,292.00 6,334,134.00 6,983,578.50 7,722,138.22 8,927,942.99 10,397,915.27
Less: Cost of services 3,391,634.00 3,619,950.00 3,983,756.00 4,372,055.85 4,810,158.73 5,505,564.84 6,333,170.98
Gross profit 1,906,120.00 2,126,342.00 2,350,378.00 2,611,522.65 2,911,979.50 3,422,378.14 4,064,744.29
Less: Administrative expenses 1,430,923.00 1,570,238.00 1,611,152.00 1,834,702.01 2,001,716.28 2,281,585.43 2,590,842.68
Other income, net 85,452.00 108,354.00 100,747.00 100,747.00 100,747.00 100,747.00 100,747.00
Profit from operations 560,649.00 664,458.00 839,973.00 877,567.64 1,011,010.22 1,241,539.71 1,574,648.61
Less: Interest (income) expense 64,010.00 61,445.00 47,009.00 39,957.65 47,949.18 57,539.02 69,046.82
Profit before income tax 496,639.00 603,013.00 792,964.00 837,609.99 963,061.04 1,184,000.70 1,505,601.79
Less: Income tax expense 155,236.00 183,300.00 244,572.00 251,283.00 288,918.31 355,200.21 451,680.54
Profit for the year 341,403.00 419,713.00 548,392.00 586,326.99 674,142.73 828,800.49 1,053,921.25
Arianna S. Abundo, 2020
76. Financial
Projections Projected Profit and Loss
Revenue CAGR
Historical CAGR: 9%
14%
Net Profit CAGR
Historical CAGR: 27%
22%
FY 2019 – PHP 6.98 B
FY 2020 – PHP 7.72 B
FY 2021 – PHP 8.92 B
FY 2022 – PHP 10.40 B
FY 2019 – PHP 877 M
FY 2020 – PHP 1.01 B
FY 2021 – PHP 1.24 B
FY 2022 – PHP 1.57 B
FY 2019 – PHP 586 M
FY 2020 – PHP 674 M
FY 2021 – PHP 829 M
FY 2022 – PHP 1.05 B
COS CAGR
Historical CAGR: 8%
13%
2019 2020 2021 2022
Cost of Services
Year on Year Growth
2019 2020 2021 2022
Net Revenues
Year on Year Growth
FY 2019 – PHP 4.37 B
FY 2020 – PHP 4.81 B
FY 2021 – PHP 5.51 B
FY 2022 – PHP 6.33 B
Operating Profit
CAGR
Historical CAGR: 22%
22%
2019 2020 2021 2022
Operating Profit
Year on Year Growth
2019 2020 2021 2022
Net Profit
Year on Year Growth
Arianna S. Abundo, 2020
77. Financial
Projections
HISTORICAL (2016-2018) AND PROJECTED STATEMENTS OF FINANCIAL POSITION
ASSETS (in PHP, thousands) 2016 (Actual) 2017 (Actual) 2018 (Actual)
2019
(Projected)
2020
(Projected)
2021
(Projected)
2022
(Projected)
Current assets
Cash and cash equivalents 707,970.00 553,957.00 546,361.00 941,894.44 409,341.00 505,280.61 674,351.30
Receivables, net 574,912.00 689,362.00 766,081.00 855,588.23 945,543.82 1,087,116.35 1,261,902.06
Inventories, net 250,760.00 259,754.00 318,409.00 359,347.06 395,355.51 452,512.18 520,534.60
Prepayments and other current
assets 54,907.00 67,638.00 49,706.00 44,735.40 40,261.86 36,235.67 32,612.11
Total current assets 1,588,549.00 1,570,711.00 1,680,557.00 2,201,565.12 1,790,502.20 2,081,144.81 2,489,400.07
Non-current assets
Property and equipment, net 7,909,781.00 8,159,946.00 8,200,319.00 8,446,328.57 10,557,910.71 11,613,701.78 12,775,071.96
Investment in a subsidiary 1,800.00 1,800.00 835.00 835.00 835.00 835.00 835.00
Other non-current assets 131,693.00 131,693.00 130,741.00 124,203.95 117,993.75 112,094.06 106,489.36
Total non-current assets 8,043,274.00 8,293,439.00 8,331,895.00 8,571,367.52 10,676,739.47 11,726,630.85 12,882,396.32
TOTAL ASSETS 9,631,823.00 9,864,150.00 10,012,452.00 10,772,932.64 12,467,241.67 13,807,775.65 15,371,796.39
Arianna S. Abundo, 2020
78. Financial
Projections
HISTORICAL (2016-2018) AND PROJECTED STATEMENTS OF FINANCIAL POSITION
LIABILITIES AND EQUITY (in PHP,
thousands) 2016 (Actual) 2017 (Actual) 2018 (Actual)
2019
(Projected)
2020
(Projected)
2021
(Projected)
2022
(Projected)
Liabilities
Current liabilities
Trade and other payables 892,187.00 1,006,429.00 1,002,701.00 1,275,361.20 1,399,700.34 1,600,099.37 1,833,701.44
Income tax payable 53,508.00 58,771.00 69,412.00 62,820.75 72,229.58 88,800.05 112,920.13
Borrowings, current portion 214,000.00 229,000.00 274,000.00 274,000.00 324,000.00 374,000.00 424,000.00
Dividends payable 81,143.00 93,812.00 119,169.00 100,000.00 200,000.00 250,000.00 300,000.00
Other current liabilities 11,685.00 11,874.00 12,038.00 11,436.10 10,864.30 10,321.08 9,805.03
Total current liabilities 1,252,523.00 1,399,886.00 1,477,320.00 1,723,618.05 2,006,794.22 2,323,220.50 2,680,426.60
Non-current liabilities
Borrowings, net of current portion 1,017,500.00 788,500.00 514,500.00 514,500.00 1,514,500.00 2,014,500.00 2,514,500.00
Provision 102,630.00 117,421.00 100,961.00 100,961.00 100,961.00 100,961.00 100,961.00
Retirement benefit obligation 106,260.00 147,012.00 256,012.00 268,812.60 282,253.23 296,365.89 311,184.19
Deferred income tax liabilities, net 919,366.00 891,461.00 849,450.00 764,505.00 688,054.50 619,249.05 557,324.15
Total non-current liabilities 2,145,756.00 1,944,394.00 1,720,923.00 1,648,778.60 2,585,768.73 3,031,075.94 3,483,969.33
TOTAL LIABILITIES 3,398,279.00 3,344,280.00 3,198,243.00 3,372,396.65 4,592,562.95 5,354,296.44 6,164,395.93
Arianna S. Abundo, 2020
79. Financial
Projections
HISTORICAL (2016-2018) AND PROJECTED STATEMENTS OF FINANCIAL POSITION
Equity 2016 (Actual) 2017 (Actual) 2018 (Actual)
2019
(Projected)
2020
(Projected)
2021
(Projected)
2022
(Projected)
Share capital 335,535.00 338,462.00 339,737.00 339,737.00 339,737.00 339,737.00 339,737.00
Capital in excess of par value 1,571,963.00 1,616,896.00 1,639,701.00 1,639,701.00 1,639,701.00 1,639,701.00 1,639,701.00
Treasury shares -15,036.00 -15,036.00 -15,036.00 -15,036.00 -15,036.00 -15,036.00 -15,036.00
Revaluation surplus 2,358,885.00 2,349,618.00 2,340,351.00 2,340,351.00 2,340,351.00 2,340,351.00 2,340,351.00
Remeasurements on retirement benefits 86,058.00 62,855.00 -16,060.00 -16,060.00 -16,060.00 -16,060.00 -16,060.00
Retained earnings 1,896,139.00 2,167,075.00 2,525,516.00 3,111,842.99 3,585,985.72 4,164,786.21 4,918,707.46
Total equity 6,233,544.00 6,519,870.00 6,814,209.00 7,400,535.99 7,874,678.72 8,453,479.21 9,207,400.46
TOTAL LIABILITIES AND EQUITY 9,631,823.00 9,864,150.00 10,012,452.00 10,772,932.64 12,467,241.67 13,807,775.65 15,371,796.39
Arianna S. Abundo, 2020
80. Financial
Projections
Current Assets: 4% CAGR
Total Assets: 13% CAGR
Current Liabilities: 16% CAGR
Total Liabilities: 22% CAGR
Projected Assets and Liabilities
2019 2020 2021 2022
Current
Assets
Year on
Year
Growth
Historical CAGR: 3%
Historical CAGR: 2%
Historical CAGR: 9%
Historical CAGR: -3%
FY 2019 – PHP 2.20 B
FY 2020 – PHP 1.79 B
FY 2021 – PHP 2.08 B
FY 2022 – PHP 2.49 B
FY 2019 – PHP 10.8 B
FY 2020 – PHP 12.5 B
FY 2021 – PHP 13.8 B
FY 2020 – PHP 15.4 B
2019 2020 2021 2022
Current
Liabilities
Year on
Year
Growth
FY 2019 – PHP 1.72 B
FY 2020 – PHP 2.01 B
FY 2021 – PHP 2.32 B
FY 2022 – PHP 2.68 B
2019 2020 2021 2022
Total
Liabilities
Year on
Year
Growth
FY 2019 – PHP 3.37 B
FY 2020 – PHP 4.59 B
FY 2021 – PHP 5.35 B
FY 2022 – PHP 6.16 B
2019 2020 2021 2022
Total
Assets
Year on
Year
Growth
Arianna S. Abundo, 2020
81. Financial
Projections
HISTORICAL (2016-2018) AND PROJECTED STATEMENTS OF CASH FLOWS
In PHP, thousands 2016 (Actual) 2017 (Actual) 2018 (Actual)
2019
(Projected)
2020
(Projected)
2021
(Projected)
2022
(Projected)
Cash flows from operating activities
Profit before income tax 496,639.00 603,013.00 792,964.00 837,609.99 963,061.04 1,184,000.70 1,505,601.79
Add (deduct) adjustments for:
Provisions/write-offs/impairments 83,351.00 91,469.00 115,790.00 115,790.00 115,790.00 115,790.00 115,790.00
Depreciation and amortization 470,087.00 490,444.00 520,485.00 536,099.55 670,124.44 737,136.88 810,850.57
Interest expense 64,010.00 61,445.00 47,009.00 39,957.65 47,949.18 57,539.02 69,046.82
Retirement benefit expense 47,140.00 34,605.00 39,341.00 41,308.05 43,373.45 45,542.13 47,819.23
Reversal of long outstanding payables 0.00 -7,275.00 0.00
Loss (gain) on disposal of property and equipment -330.00 4,395.00 500.00
Loss (gain) on sale of investment property
Equity in net losses of JVs
Interest income -3,543.00 -2,342.00 -6,274.00 -6,274.00 -6,274.00 -6,274.00 -6,274.00
Dividend income -4,200.00 0.00 0.00 - - - -
Unrealized foreign exchange (gain) loss -4,568.00 340.00 -1,211.00 -1,211.00 - - -
Operating income before working capital
charges
1,148,586.00 1,276,094.00 1,508,604.00 1,563,280.24 1,834,024.11 2,133,734.72 2,542,834.41
Arianna S. Abundo, 2020
82. Financial
Projections
HISTORICAL (2016-2018) AND PROJECTED STATEMENTS OF CASH FLOWS
In PHP, thousands 2016 (Actual) 2017 (Actual) 2018 (Actual)
2019
(Projected)
2020
(Projected)
2021
(Projected)
2022
(Projected)
Operating income before working capital charges 1,148,586.00 1,276,094.00 1,508,604.00 1,563,280.24 1,834,024.11 2,133,734.72 2,542,834.41
Add (deduct): Decrease (increase) in current assets
Receivables -40,785.00 -206,755.00 -188,302.00 -89,507.23 -89,955.60 -141,572.52 -174,785.72
Inventories -30,881.00 -8,287.00 -61,310.00 -40,938.06 -36,008.46 -57,156.67 -68,022.42
Prepayments and other current assets 16,932.00 19,896.00 27,645.00 27,645.00 1,027,645.00 4,026.19 3,623.57
Add (deduct): Increase (decrease) in current liabilities
Trade and other payables 66,532.00 23,868.00 66,057.00 272,660.20 124,339.14 200,399.03 233,602.07
Other current liabilities -364.00 189.00 164.00 -601.90 -571.81 -543.21 -516.05
Add (deduct): (Increase) decrease in other non-current
assets -87,540.00 0.00 952.00 6,537.05 6,210.20 5,899.69 5,604.70
Add (deduct): Increase (decrease) in other non-current
liabilities -8,879.00 11,979.00 -16,460.00 -16,460.00 -16,460.00 -16,460.00 -16,460.00
Cash from operations 1,063,601.00 1,116,984.00 1,337,350.00 1,722,615.31 2,849,222.59 2,128,327.22 2,525,880.55
Interest received 3,536.00 2,472.00 5,687.00 -6,274.00 -6,274.00 -6,274.00 -6,274.00
Contributions to retirement fund -20,000.00 -27,000.00 -35,629.00 -37,410.45 -39,280.97 -41,245.02 -43,307.27
Benefits paid from book reserve -7,448.00 - - - -
Income taxes paid -148,809.00 -192,026.00 -238,150.00 -382,119.30 -1,504,514.47 -541,940.64 -635,007.84
Net cash from operating activities 898,328.00 900,430.00 1,061,810.00 1,296,811.56 1,299,153.15 1,538,867.56 1,841,291.44
Arianna S. Abundo, 2020
83. Financial
Projections
HISTORICAL (2016-2018) AND PROJECTED STATEMENTS OF CASH FLOWS
2016 (Actual) 2017 (Actual) 2018 (Actual)
2019
(Projected)
2020
(Projected)
2021
(Projected)
2022
(Projected)
Cash flows from investing activities
Investments in subsidiaries
Payments for property and equipment -674,249.00 -656,454.00 -629,803.00 -782,109.12 -2,781,706.58 -1,792,927.95 -1,972,220.75
Downpayments paid in advance to suppliers for
equipment -23,113.00 -32,627.00 -9,713.00
Proceeds from disposal of property and equipment 631.00 9,163.00 1,135.00
Dividends received 4,200.00
Net cash used in investing activities -692,531.00 -679,918.00 -638,381.00 -782,109.12 -2,781,706.58 -1,792,927.95 -1,972,220.75
Arianna S. Abundo, 2020
84. Financial
Projections
HISTORICAL (2016-2018) AND PROJECTED STATEMENTS OF CASH FLOWS
2016 (Actual) 2017 (Actual) 2018 (Actual)
2019
(Projected)
2020
(Projected)
2021
(Projected)
2022
(Projected)
Cash flows from financing activities
Payment of borrowings -149,000.00 -214,000.00 -229,000.00
Proceeds from borrowings 300,000.00 - 1,050,000.00 550,000.00 550,000.00
Interest paid -59,492.00 -60,427.00 -48,931.00
Dividends paid -122,409.00 -149,347.00 -177,833.00 -119,169.00 -100,000.00 -200,000.00 -250,000.00
Proceeds from issuance of common shares 30,514.00 47,860.00 24,080.00
Net cash used in financing activities -387.00 -375,914.00 -431,684.00 -119,169.00 950,000.00 350,000.00 300,000.00
Net cash flow 205,410.00 -155,402.00 -8,255.00 395,533.44 -532,553.43 95,939.60 169,070.69
Add: Cash and cash equivalents, beginning 502,091.00 707,970.00 553,957.00 546,361.00 941,894.44 409,341.00 505,280.61
Effect of exchange rate changes on cash and cash
equivalents 469.00 1,389.00 659.00
Cash and cash equivalents, ending 707,970.00 553,957.00 546,361.00 941,894.44 409,341.00 505,280.61 674,351.30
Arianna S. Abundo, 2020
86. Balanced Scorecard Strategy Map
VISION: To be the Philippines’ undisputed leading
academic medical center by 2020 and competitive with
the best in the world by 2024.
Financial
Customer
Internal
Process
Learning &
Growth
Achieve a 4 year average
revenue growth between 12
to 14% CAGR by 2022
Generate PHP 11.5B in gross
revenues by 2022
Generate PHP 1.57B in net
operating profit by 2022
Generate PHP 1.05B in net
profit by 2022
High-quality, convenient, and
compassionate patient-
centered care
Provide state-of-the-art
technology and treatment for
patients
Increase market share to 41%
Build MMC’s brand as an
academic institution at the
forefront of research
Improve and expand access
to care across wider
geographic regions
Initiate Kaizen activities to
gain greater efficiencies and
improved service delivery
Collaborate effectively with
community stakeholders to
improve partnerships
Develop clinical standards
and disseminate tools and
best practices
Strengthen consultant roster
by increasing number of
specialists and subspecialists
Leverage information
technology for improved
decision-making
Improve employee morale and
satisfaction through support
and career opportunities
Develop a competent
workforce skilled in leadership,
management, and finance
Arianna S. Abundo, 2020
87. Objectives Increase sales and profitability
KPI’s Revenue Operating income Net profit
Targets
PHP 11.5B in gross
revenues
PHP 1.57B in net
operating profits
PHP 1.05B in net profit
Initiatives
- Hospital network expansion
- Increase product offerings through strategic partnerships
Financial Perspective
Balanced Scorecard Perspective
Arianna S. Abundo, 2020
88. Objectives Increase market share Expand product offerings
KPI’s Number of customers Number of product launches
Targets 41% market share
At least 3-5 new product launches
per year
Initiatives
- Promote high-quality medical care
- Increase number of corporate accounts
- Intensify multi-channel messaging
- Strengthen network referral system
- Customer profiling to determine
market needs
- Strengthen foreign partnerships
- Invest in technology
Customer Perspective
Balanced Scorecard Perspective
Arianna S. Abundo, 2020
89. Objectives Expand market reach
Increased efficiency of
business processes
Improved referral
network
Improved research
development
KPI’s
Number of new clinics
opened
Fully integrated and
implemented HIS
Number of partnered
facilities
Number of research
publications and
partnerships
Targets
≥3 new clinics opened per
year
100% usage
≥3 memberships to
foreign healthcare
networks
≥3 research publications
per year in every
department
Initiatives
- Establish off-site clinics
- Design unique offerings
for target populations
- Recruit key specialists
- Initiate Kaizen activities for
TQM
- Reassess redundant
applications
- Data analytics to
understand patient
behavior
- Assure financial
viability and
sustainability
- Improve brand
attractiveness and
awareness
- Widen partnerships
with academic
institutions
- Support more
academic initiatives
Internal Processes
Balanced Scorecard Perspective
Arianna S. Abundo, 2020
90. Objectives Expand roster of active consultants
Develop leadership, management,
and financial competence
Provide continuing professional
education (CPE)
KPI’s Number of affiliated physicians Number of training sessions
Number of employees completing CPE
training
Targets
1,600 physicians practicing across
≥150 specialties and
subspecialties
90% of all top- and middle-
managers completing all training
sessions/year
85% of all medical and allied health
professional staff completing ≥1 CPE
training/year
Initiatives
- Recruit key specialists through
special clinical privileges,
employment, and payment
- Develop a robust training
program
- Implement leadership,
management, and financial
skills training
- Offer incentives and rewards
- Partner with training
institutions
- Implement in-house CPE training
opportunities
- Provide protected time for
employees to pursue training
- Offer incentives and rewards
Learning & Growth
Balanced Scorecard Perspective
Arianna S. Abundo, 2020
91. Balanced Scorecard Performance DashboardFinancialCustomer
InternalProcessesLearning&Growth
Objectives Target Current
Expand roster of active
consultants
1600 physicians
705
physicians
Develop leadership,
management, and
financial competence
≥90% attendance of
training sessions
93%
attendance
Provide continuing
professional education
85% completion of
≥1 CPE training/year
Not
disclosed
How we maintain our learning and growth strategies
Objectives Target Current
Expand market reach 3 clinics/year None
Increased efficiency of
business processes
100% integration/
implementation of HIS
85%
Improved referral
network
3 foreign memberships Local only
Improved research
development
3 research
publications/dept/year
Not
disclosed
Initiatives and strategies designed to increase internal performance
Objectives Target Current
Increase market share 41% 35.4%
Expand product
offerings
5 product
launches/year
Not disclosed
How we increase success and maintain our strategies
Objectives Target Current
Increase revenue PHP 11.5 B PHP 7.08 B
Increase net profit PHP 1.05 B PHP 548 M
Increase operating
margin
PHP 1.57 B PHP 840 M
How we maintain our learning and growth strategies
Vision,
Goals, and
Strategies
Arianna S. Abundo, 2020
92. Balanced Scorecard Performance Dashboard
Objectives Target KPI Responsible Parties When
Increase revenue PHP 11.5 billion
PHP 11.5B or more
PHP 6 B to 11.4 B
Less than PHP 6 B
Finance
Business Development
Marketing
Q4 2022
Increase net profit PHP 1.05 billion
PHP 1.05 B or more
PHP 600 M to PHP 1.04 billion
Less than PHP 6 M
Finance
Business Development
Marketing
Q4 2022
Increase operating
margin
PHP 1.57 billion
PHP 1.57 B or more
PHP 700 M to PHP 1.56 B
Less than PHP 700 M
Finance
Business Development
Marketing
Q4 2022
Financial
High Level Medium Level Low Level
Arianna S. Abundo, 2020
93. Balanced Scorecard Performance Dashboard
Objectives Target KPI Responsible Parties When
Increase market share
41% market
share
41% or higher
35% to 40%
35% or lower
Marketing
Business Development
Finance
Q4 2022
Expand product
offering
5 product
launches per
year
5 or more launches
3-4 launches
Less than 3 launches
Marketing
Business Development
Yearly
Customer
High Level Medium Level Low Level
Arianna S. Abundo, 2020
94. Balanced Scorecard Performance Dashboard
Objectives Target KPI Responsible Parties When
Expand market reach
3 clinic openings per
year
Average of ≥3 clinic openings
Average of 1-2 clinic openings
Less than 1 clinic opening/year
Finance
Business Development
Operations
Marketing
Yearly
Increased efficiency of
business processes
100% integration
and implementation
of HIS
100%
95-99%
Below 95%
IT
Human Resources
Business Development
Q2 2020
Improved referral
network
3 memberships to
foreign healthcare
networks
3 or more memberships
1-2 memberships
0 memberships
Marketing
Business Development
Q4 2022
Improved research
development
3 research
publications per
department per year
3 or more publications
1-2 publications
0 publications
Medical Services
Department
Yearly
Internal Processes
High Level Medium Level Low Level
Arianna S. Abundo, 2020
95. Balanced Scorecard Performance Dashboard
Objectives Target KPI Responsible Parties When
Expand roster of
active consultants
1,600 actively practicing
affiliated physicians
1,600 or more physicians
1,200-1,599 physicians
Less than 1,200 physicians
Human Resources
Business Development
Marketing
Q4 2022
Develop leadership,
management, and
financial competence
90% of all top- and
middle-managers
completing all training
sessions per year
90% or more
80-90%
Below 80%
Human Resources
Business Development
Marketing
Finance
Yearly
Provide continuing
professional
education (CPE)
85% of all medical and
allied health professional
staff completing at least 1
CPE training per year
85% or more
75%-84%
Below 75%
Human Resources
Business Development
Finance
Yearly
Learning & Growth
High Level Medium Level Low Level
Arianna S. Abundo, 2020
97. Downside Factors
Economic slump
• Implement cost management measures
• Reassess existing services
• Implement renovation and expansion projects in a staggered manner
• Intensify marketing and sales efforts
Market saturation (earlier than expected)
• Consider redirecting clinic launches to areas with more rapid market growth
• Reinforce referral networks with lower-level hospitals
New industry entrants
• More aggressive strategic marketing and sales campaigns
• Focused strategic plans to define competitive advantage
Arianna S. Abundo, 2020
98. Upside Factors
Greater than expected foreign interest
• Establish partnerships with foreign institutions
• More aggressive strategic planning
Lower interest rates
• Restructure current and proposed loans
• More aggressive plans to launch off-site and satellite clinics
Stronger economic growth
• Intensify efforts to attract local and foreign investors for capital infusion
• More aggressive strategic marketing and sales campaigns