External Versus Internal Assessment Of HCA Organization.
External Versus Internal Assessment Of HCA Organization.
External Versus Internal Assessment Of HCA Organization
Joseph
Introduction
In the tactical planning of organizations, particularly health care centers, actions of internal and external assessment are fundamental since they evaluate the setting upon which the organization functions. Also, the assessment points out on the expected possible challenges. This assessment entails conducting a formal SWOT analysis of the union whereby an organization measures its position concerning its chief players. A SWOT analysis is simply scrutiny of the strengths, weaknesses, opportunities, as well as threats of a specific cluster. This paper pursues to examine Hospital Corporation of America (HCA), one of the largest global hospitals in the world.
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SWOT analysis
Strengths
HCA is among the top health services provider in the US and the world at large consists of many strengths that enable it to flourish in the marketplace. These forces help HCA keep and safeguard the market share during the present competitive market as well as play a significant role to ensure HCA penetrates new markets. These strengths include:
Automation of healthcare activities has led to consistency in quality of HCA services and products. This method has assured that the company successfully scales either up or down, depending on the market and demands of clients (Rhee et al., 2017). The leading stakeholders behind this act are the board of directors, and the reason is that they determine the strategic plans for organizational running.
HCA has a strong brand portfolio. Over many years now, HCA Inc. has been the leading healthcare organization in the US and has invested heavily both on infrastructure building and brand portfolio. Brand portfolio is beneficial at times, and an organization wants to expand or create a new brand category. The most influential stakeholders, as far as this exercise is concerned, are our community members since they are clients and hence the main stakeholders.
A prosperous record of accomplishment when it comes to the creation and development of new products is another strength of HCA. HCA has a good brand innovation reputation. The organizational department in charge of record keeping is to be thanked for the successful record keeping.
Medical professionals mostly enhance the highest level of customer satisfaction because they are the stakeholders who are in constant direct contact with the clients. HCA possess a dedicated company-customer relationship administration department that facilitates the relationship between the customers and the organization (Stahl & Emanuel, 2017). This exercise has enabled the center to achieve high levels of customer gratification and better brand evenhandedness amongst the latent customers.
Better earnings on Capital Expenditure. HCA is relatively fruitful when it comes to the execution of new projects. This action is essential in generating higher returns out of the capital expenditures through the creation of new revenue streams. The board of directors is the most influential in this task.
Success record on “Go to Market strategies,” on the products that they innovate. The investors play the most meaningful role in this as they come up with better products to be used in the organization.
Firm free cash flow. HCA possess a string-free cash flow that offers resources upon company hands, which enables organizations to expand and commence new projects. The board of directors is the main stakeholders behind this responsibility.
A strong dealer community. HCA has established a specific culture amongst the dealers and distributors. This action has made it possible to promote company products and services as well as invest heavily in training the sales teams on better and creative approaches they can use to convince customers. This method has enabled HCA to extract the maximum benefits out of their products and services.
Weaknesses
These are areas upon which HCA need to improve. After upgrading, organizations need to build on its competitive advantage to solve these challenges. HCA weaknesses include:
CA organizational structure tends to be compatible with only the current business model. This process considerably limits the possibilities of expanding to adjacent new product segments.
Exhibits limited success beyond the core activities. HCA has faced significant challenges and barriers in trying to move to other products even though it is the leading in its industry. The suppliers are the most influential in this weakness.
The organization has failed to tackle the challenges posed by new entrants in the market segments. This habit has led to losing of minor market shares along with the niche categories. A feedback mechanism from the inside has to be created so that the available team on the ground can be able to handle these challenges. This routine poses a vital role for the managers of the organization.
Poor and inefficient financial planning by the manager. Current HCA liquid asset ratio depicts that chances are there, and the company is making use of the cash more efficiently when compared to what is being done now.
Existing gaps in between the product range, which the company sells. The presence of such gaps offers competitors’ stronger foothold in the market, and therefore, weakness is mainly oriented towards investors as well as suppliers.
Net Contribution to the profitability ratio of HCA organization is far much below the industrial average (Stenehjem et al., 2017). Poor management is the leading influencer of this weakness.
Least successful in integrating other firms that have different work culture. Although successful in merging small firms, the organization has difficulties in merging with firms that have a different culture and style of operations. The key stakeholders responsible for this method are the board of directors since they are the leading strategic planners.
Opportunities
Introduction of new taxation strategy by the government can positively influence how HCA does business through the establishment of new opportunities. This routine will increase profitability.
Economic uptick and increased customer spending after slow and recession growth rates can serve as a basis for HCA to grasp new customers and hence increasing the overall market share.
The emergence of new consumer behavior trends can, in several ways open up a new market for HCA. This process will offer a great opportunity through which the organization will generate more revenue and eventually spread successfully into a new product category (Drucker, 2017). This action is a big opportunity for suppliers.
The establishment of new markets because of government based agreements. For example, integration of technology-based operations and adoption of free government agreements will give HCA a better opportunity to venture into new and emerging markets. The suppliers are the main stakeholders who this opening influences.
Presence of firm free flow of funds offers opportunities to advance in end-to-end product segments. Since HCA is a big organization with more cash, it has the opportunity here to invest in technology and new products as well heavily. In other ways, this practice opens a window through which the HCA will venture into different product categories.
It has decreased inflation rates. The lower the inflation rates, the more stable the market becomes. This method facilitates credits to customers at slightly lower rates. Therefore, this act will attract more customers (Bai & Anderson, 2016).
Core competencies of the organization can emerge to be a success in other different products that belong to different fields. This effect can increase the possible profit gained. The investors will be the key stakeholders that will be influenced by the opportunity.
Government green drives can result in several ways where open opportunities through which procurements of HCA products can be carried out as per state laws and regulations as well as the federal government contractors.
Threats
A limitation occurs from forged and squat quality products. This application is a threat, particularly when it comes to the low-income markets, the emerging markets, and mainly for the investors.
Demand for highly profitable products usually is periodic. Besides, any unlikely events in the last times can mess up the organization in terms of the profit generated.
Increase in the trend towards isolation of the American economy by the government, which in turn results to similar responses from the other administrations. This operation can have an undesirable impact on global sales.
Variation in liability laws in different states may end up exposing HCA to several liability claims due to policy changes in different states. The government is the main influential stakeholder since it formulates policies.
Varying consumer-buying behavior from place to place and time to time from the online channel can be a present physical infrastructure that is under the chain supply. The suppliers will then not be in a position to determine the most preferred products at any particular time.
Limited skills at a slightly lower rate to work in various HCA departments can be a threat to the quality of services being delivered. Also, this procedure can limit steady growth in the market. The employees mostly influence the threat.
The continuously growing strength of the local distributors poses threats to various market categories due to increased competition that they bring in the market. The community mostly influences this threat since it encourages setting up of new distributors.
Increasing costs of raw material pose threats to HCA profits and mostly to investors.
Outcomes if the changes are made
There is a need for several modifications in the organizational and operational results, as indicated in the SWOT analysis. If these changes are carried out, the HCA departments will have more opportunities to present better services as far as health-related issues are concerned. Also, the changes will curb several threats facing the organization. These changes are also relevant in that they would enable more specialization of staff in their areas of duty to ensure that they provide the best services. For instance, training the organizational employees would curb the menace of low skilled personnel in the organization and hence, better-qualified staff for much better services (Scott et al., 2017).
Forthcoming viability if changes are not made
If the organizational changes cannot be made according to the SWOT analysis, HCA expansion will be limited, and in turn, limit the success that the entire organization will enjoy. Also, HCA will not be in a better position to tackle the available problems resulting from new entrants in the market. This proceeding will facilitate the rate at which they will be losing its market share. Ultimately, there will be poor financial management (Ball et al., 2016). Financial management is the basis of any organizational progress. Therefore, if changes will not be made, then higher losses could be recorded.
Five organizational recommendation HCA should consider pursuing
To compete effectively, HCA should consider seeking the following strategic recommendations:
HCA should prioritize the patients. Putting the patients who are our customers first will facilitate understanding, hence improving the quality of the services they offer to them.
Bring all experts together to drive effective care successfully. This practice can be achieved by integrating genomics, which creates new opportunities through medical breakthroughs that can be achieved. This mode will serve to enhance the quality of the service.
Provide holistic care to both patients and their respective families. Most patients need complex care. Also, they all have different ways through which they can cope up with the spiritual and emotional needs. Therefore, there is a need to stretch and reach their family members who will facilitate coping up with the situation (Versporten et al., 2018).
Integrate technology into most activities. Integrating technology for actions like blood transfusion and surgery ensures the safety of both the patient and the practitioner. External Versus Internal Assessment Of HCA Organization.
Evaluation of the whole care team and improving employee engagement will have a positive impact on overall organizational operations. External Versus Internal Assessment Of HCA Organization.
References
Bai, G., & Anderson, G. F. (2016). A more detailed understanding of factors associated with hospital profitability. Health Affairs, 35(5), 889-897.
Ball, R., Robb, M., Anderson, S. A., & Dal Pan, G. (2016). The FDA’s sentinel initiative—a comprehensive approach to medical product surveillance. Clinical Pharmacology & Therapeutics, 99(3), 265-268.
Drucker, P. (2017). Concept of the Corporation. Routledge.
Rhee, C., Dantes, R., Epstein, L., Murphy, D. J., Seymour, C. W., Iwashyna, T. J., … & Jernigan, J. A. (2017). Incidence and trends of sepsis in US hospitals using clinical vs claims data, 2009-2014. Jama, 318(13), 1241-1249.
Scott, K. W., Orav, E. J., Cutler, D. M., & Jha, A. K. (2017). Changes in Hospital–Physician Affiliations in US Hospitals and Their Effect on Quality of Care. Annals of Internal Medicine, 166(1), 1-8.
Stahl, R. Y., & Emanuel, E. J. (2017). Physicians, not conscripts—conscientious objection in health care. New England Journal of Medicine, 376(14), 1380-1385.
Stenehjem, E., Hyun, D. Y., Septimus, E., Yu, K. C., Meyer, M., Raj, D., & Srinivasan, A. (2017). Antibiotic stewardship in small hospitals: barriers and potential solutions. Clinical Infectious Diseases, 65(4), 691-696.
Versporten, A., Zarb, P., Caniaux, I., Gros, M. F., Drapier, N., Miller, M., & Hoxha, I. (2018). Antimicrobial consumption and resistance in adult hospital inpatients in 53 countries: results of an internet-based global point prevalence survey. The Lancet global health, 6(6), e619-e629. External Versus Internal Assessment Of HCA Organization.