SWOT ANALYSIS ESSAY 7
Businessentities are always striving to enhance their competitiveness in themarkets within which they operate. Needless to say, a large number ofsectors are facing an increase in competition among the variedplayers, particularly as a result of the entry of a large number ofplayers and the enhanced technological capabilities. Thisnecessitates that business entities persistently come up withstrategies that would allow for proper planning and the takingadvantage of opportunities that emerge in the industries or sectorsto as to enhance their competitiveness, profitability andsustainability in the long-term and short-term. This underlines theimportance of SWOT analysis for business entities, which is astructured planning technique that is used in the assessment of theweaknesses, strengths, threats and opportunities that pertain to abusiness venture or project (Böhm,2009).The application of the tool or technique in the Community SouthMedical Center would be crucial to the planning of future endeavors.
Oneof the most fundamental needs pertaining to the Community SouthMedical Center is the deficiency of the sufficient clinical staff. Itgoes without saying that the capacity of any business entity ororganization to offer quality services in an effective and efficientmanner is dependent on the sufficiency of the workers or employees.This implies that in instances where an institution is deficient ofsufficient and qualified staff, there is a high likelihood that itwould be unable to offer proper services. In the case of healthcareinstitutions, scholars have noted that such a deficiency would meanthat the existing healthcare workers are overworked, which oftenleads to burnout and reduced quality of healthcare (Böhm,2009).
Oneof the major strengths of the institution is the fact that it has anexcellent reputation and has obtained recognition for the highquality of services that it offers. Its reputation means that itwould have an easy time attracting the most talented employees intoits workforce. Indeed, scholars have noted that a large number ofemployees examine the reputation of an institution before deciding toforward their application letters or even accepting a job offer fromthem. This means that there is a considerably large pool ofprofessionals in the varied fields who would be willing to join theinstitution (Phadtare,2011).
TheCommunity South Medical Center primarily relies on Medicare andMedicaid for a large number of the services that it offers. Indeed,it is well acknowledged that more than fifty percent of all theservices are reimbursed from Medicaid and Medicare. While there maybe some advantages to this, it is noted that the coverage of Medicaidand Medicare are pretty much limited, in which case the patients andadministrators may be required to go back and forth in verifying aprocedure’s necessity. Further, the reimbursements from theseprograms are always lower than the usual charges of practitioners, inwhich case a profit-making institution such as Community SouthMedical Center (Phadtare,2011).
Thechanging demographics regarding the population means that theprofitability of the medical institution in the future may be quitewell grounded. Indeed, a close look at the services that are offeredin the institution shows that the elderly are the main target of themedical institution. This seems to safeguard the profitability andsustainability of the institution since the demographics of thecommunity have been trending towards predominantly elderlypopulations, which means that the institution stands high chances ofhaving high demand for its services.
Perhapsthe key threat to its profitability is the gradual replacement ofbusinesses that had well-paying jobs by smaller businesses and shops.This means that a large proportion of its potential clientele may notbe capable of meeting its financial obligations regarding the medicalservices it receives from the institution, which would essentiallyaffect the bottom-line of the entity (Raoet al, 2008).Indeed, this would, as a consequence, mean that the entity is unableto properly remunerate its workers in the long-term, therebyaffecting its workforce and the services offered.
Inmy measured opinion, it is high time the strategic plan and missionof the organization is revised to as to safeguard the competitivenessof the entity. For a large part, the issues that the medicalinstitution is facing are pretty much crucial to its efficiency andcapacity to meet its objectives. This is particularly the case ofshortages of staff and the declining in compliance of internal auditswith The Joint Commission (TJC) as shown in the self-inspections. Itgoes without saying that the failure to revise the strategic plan forthe institution would mean that the institution goes on the same paththat it has pursued in the past, thereby compromising on its chancesof enhanced competitiveness. This necessitates that the CEO addressesthe issues that are confronting the institution in the current year.In this regard, the strategic plan should entail changing its mainfocus to the ailments and issues that affect the elderly population.This would go a long way in enhancing the bottom-line of theinstitution. This should be complemented with a revision on itsreliance on Medicaid and Medicare as these may potentially have lowerlevels of reimbursement, which reduce its profits.
StrategicManagement Team Positions
Thestrategic management team would primarily be composed of the CEO andthe departmental heads. This is particularly having in mind that thedepartmental heads have proper knowledge of the needs of theirdepartments, in which case they would align them with the overallobjectives of the organization with the help of the CEO (Raoet al, 2008). The CEO would come up with the proper implementation procedures forthe strategic plan as identified. The Departmental heads would notonly spell out the positions or number of staff that they require butalso underline their responsibilities. Further, they would supervisethe implementation of the strategic plans in their own departmentsand report to the CEO regarding the progress, effects and possiblechanges (Pahlet al, 2007).
Twomarket trends in the area that are fundamental to the operations ofthe business entity are the change in the composition of thepopulation and the elimination of business entities that paid highersalaries and the replacement of the same by other small businessentities. The movement of the population towards predominantlyelderly populations presents immense opportunities to the businessentity, in which case the hospital should tailor its services totarget this population (Pahlet al, 2007).The replacement of well-paying business entities, however, presentsan immense challenge to the entity’s bottom-line. Nevertheless,partnering with the insurance companies and expanding the acceptedfinancial plans would go a long way in averting the possibility forinability to pay one’s medical expenses (Raoet al, 2008).
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Pahl,N., Richter, A., & University of Applied Science Berlin.(2007). SWOTanalysis: Idea, methodology and a practical approach.Munchen: GRIN Verlag.
Phadtare,M. T. (2011). Strategicmanagement: Concepts and cases.New Delhi, India: PHI Learning.
Rao,C. A., Rao, B. P., & Sivaramakrishna, K. (2008). Strategicmanagement and business policy: Texts and cases.New Delhi, India: Excel.