Strategic Choice and Evaluation
George Benelli
University of Phoenix
Strategic Planning and Implementation
STR/581
Lloyd Krieger
July 3, 2015
Strategic Choice and Evaluation
Introduction
Every company, or business, introduce themselves to the community they serve by way of a mission statement. The University of Miami Hospital’s (UMH) mission states “Exceptional Patient Care; Ground-breaking Research; World Renowned Teaching and Meaningful Community Service.”(University of Miami Hospital, 2015). Along with their mission statement, the organization also shared their vision to become the best university teaching hospital of the world. To achieve its goal, and become a center of excellence for patient care, the organization must develop strategies to achieve financial growth and sustainability. This paper will describe generic and grand strategies, as well as value disciplines. Recommendations for short and long term strategies will be discussed for each category, and these will be compatible with the organization’s mission and vision.
Value Discipline
In order for the organization to achieve excellence and a competitive position that will allow them to accomplish success, UMH must first take in consideration three value disciplines:
Operational Excellence: stream line operations and reduce costs.
Customer intimacy: “offering a unique range of customer services that allows for the personalization of service and the customization of products to meet differing customer needs.” ("MARSDD," 2013)
Product leadership: dedicate resources and talent to offer state of the art service to the community.
Short and long term strategies cannot deviate from the ultimate goal of providing a service to the community that is based on excellence, and that it attends to all the needs of those in need of health care. And it must meet these expectations by minimizing operating costs, and constantly searching for the latest technology or treatment method. Recommended measures:
1. Develop a financial plan that includes expenses and estimated profits with obtainable short and long term goals.
2. Conduct a labor study to determine personnel needs that it is in accordance with community and national standards.
3. Conduct a study to determine prevalence of the following medical conditions: diabetes, peripheral vascular disease, cardiovascular disease, obesity, digestive disorders, and neurological disorders.
4. Initiate contracting processes with medical suppliers, focusing on latest treatment, technology, and cost.
Generic Strategies
Before a long-term strategy can be developed, UMH must consider and implement a short-term plan that represent the core of the organization’s values. This strategy is known as generic and it was well described by Michael Porter who suggested “that businesses can secure a sustainable competitive advantage by adopting one of three generic strategies”("Learn Marketing," 2015). These generic strategies include: low cost leadership, differentiation, and focus.
Low cost leadership: refers to the organizations ability to operate on a low cost position. This can be achieved by running a lean organization, minimizing expenditure related to processes in place.
Differentiation: by differentiating, companies achieve uniqueness and gain the appeal of customers for a particular product or service.
Focus: this strategy “attempts to attend to the needs of a particular market segment.” (Pearce, pg. 212)
The University of Miami Hospital has the role to provide healthcare to the nearby community, as well as to patients coming from other States of the Union, and countries of Latin America and the Caribbean. A generic strategy will have to be comprehensive and take in consideration all three options described by Porter.
1. UMH will have to operate minimizing costs related to operations, personnel, and medical supplies. The current healthcare environment is adapting to new Federal and State regulations; particularly the Health