COLLEGE OF ALLIED HEALTH STUDIES

Center of Lifelong Learning, Development and Innovations

Strategic Management Plan of

Allied Care Experts Medical Center-

In Partial Fulfillment of the Requirements for the Degree

Master of Business Administration

Table of Contents
1. INTRODUCTION .............................................................................................................................. 5

2. RESEARCH DESIGN AND METHODOLOGY .............................................................................. 7

3. MACROENVIRONMENTAL ANALYSIS....................................................................................... 8

3.1 Political ......................................................................................................................................... 8

3.2 Economic ...................................................................................................................................... 9
3.3 Social .......................................................................................................................................... 10

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 3.4 Technological.............................................................................................................................. 13
3.5 Environmental ............................................................................................................................. 14
3.6 Legal ........................................................................................................................................... 15
4. INDUSTRY AND COMPETITOR ANALYSIS.............................................................................. 16

4.1 Value Chain Analysis ................................................................................................................. 16

4.2. Porter’s Five Forces of Competitive Analysis ........................................................................... 17
4.3 Competitive Profile Matrix ......................................................................................................... 19
4.4 Market Analysis .......................................................................................................................... 26
4.4.1 Market and Competitor Trends ............................................................................................ 26
4.4.2 Market Segments.................................................................................................................. 27
4.4.3 Marketing & Promotions ..................................................................................................... 28
4.5 External Factor Evaluation (EFE) ............................................................................................... 29
4.5.1 Opportunities and Importance Weights ............................................................................... 29
4.5.2 Threats and Importance Weights ......................................................................................... 30
4.5.3 Opportunities and Responsiveness Ratings ......................... Error! Bookmark not defined.
4.5.4 Threats and Responsiveness Ratings ................................... Error! Bookmark not defined.
5. COMPANY ANALYSIS .................................................................................................................. 31

5.1 Company Vision and Mission Statements Analysis ................................................................... 32

5.2 Company Internal Audit.............................................................................................................. 34
5.3 McKinsey’s 7S Framework Analysis ......................................................................................... 36
5.5.1 Strengths .............................................................................................................................. 41
5.5.2 Weaknesses .......................................................................................................................... 42
6. STRATEGY FORMULATION ........................................................................................................ 43

6.1 SWOT Analysis .......................................................................................................................... 44

6.2 Internal - External Matrix ........................................................................................................... 46
6.3 Summary of Strategies ................................................................................................................ 47
6.4 Quantitative Strategic Planning Matrix (QSPM) ........................ Error! Bookmark not defined.
7. RECOMMENDED STRATEGIC OBJECTIVES AND STRATEGIES ......................................... 48

7.1 Recommended Revised Vision / Mission Statements ................................................................. 48

7.2 Recommended Strategic Objectives ........................................................................................... 51
7.3 Recommended Strategies ............................................................................................................ 51
7.4 Recommended Departmental Programs and Actions ................. Error! Bookmark not defined.

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EXECUTIVE SUMMARY

ACE Hospital Valenzuela

ACE Group of Hospitals started with its President’s mission to help aging colleagues in their retirement

days to continue enjoying life through investment in the medical field. He envisioned to provide a tertiary

health facility in the provinces through the coming together of Privilege Local Founders which are very

much active in their field of specialty. With the help of his closest friends, ACE Group of Hospitals is

already on its 28th Hospital and still counting.

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ACEMC Valenzuela, a 99-bed capacity tertiary hospital in the CAMANAVA was established on December

2014. It boasts of its state of the art facilities, well trained Active Consultants and Hospital staffs.

At its Infancy stage, ACEMC Valenzuela is now getting a good percentage of the market share, with the

increasing number of patients being served at the outpatient departments. ACEMC Valenzuela’s success

did not stop the administration to continuously improve hospital facilities and quality of services they

provide to the populace through innovations, research and most of all replication of Best Hospital Practices

in the different ACE Group of Hospitals. Therefore, in line with Vision and Mission of the hospital, a

strategic analysis of the current Ancillary Department will be conducted.

ACE Hospital EFE Rating is 2.2 and IFE Matrix is rated at 3.0. The SWOT Analysis provided several

recommended strategies including Market Penetration, Market Development and Product Development.

The Vision and Mission statement was analyzed in line with what management intended to achieve.

The strategic issues confronting ACE hospital are:

New Vision Statement

Vision: “By 2021, ACEMC Industrial Medicine Department shall be the best Industrial Medicine provider

with advanced Medical facilities and Training.”

New Mission Statement

Mission: The Department of Ancillary management supported by knowledgeable, trained and dedicated

laboratory staffs provide an efficient, reliable service using the most advance laboratory medical equipment

for all types of patient care needs achieving excellence and growth to build a strong Filipino community.

The following are the recommended Strategic Objectives which specifically target’s the departmental goal.

Objective No. 1: Increase the number of patients by 20% annually.

Objective No. 2: Maintain a 4 satisfaction rating month on month

Achieving the specific objectives will require targeted strategies to meet the goal. Shown below is the

recommended strategic actions as a result of various strategic management tools to meet management

expectations.

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Strategy 1 – Intensify marketing efforts to increase percentage of market share.

Strategy 2 – Introduce programs that will upgrade quality of service through listening to department doctor

inputs and retention of experienced staff.

1. INTRODUCTION

ACE Hospital Valenzuela

The Allied Care Experts Medical Center-Valenzuela (ACEMC- Valenzuela), is a Level II

Secondary Hospital which started operations on December 11, 2014, initially at a 60-bed capacity which

is now at 102 beds. According to the company website (2017), the healthcare institution was

conceptualized when the local medical practitioners took note of the lack of a state-of-the-art medical

facility to serve the existing community in Valenzuela and the populations of neighboring towns of

Bulacan and cities of Metro Manila.

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 The organizational chart of ACEMC-Valenzuela is composed of the Board of Directors, the

President, the Medical Director and the Hospital Administrators, and the different Department Heads

together with each of their constituents. The Board of Directors is composed of 15 individuals with varied

expertise in the Field of Medicine, Hospital Operation and Healthcare Delivery. The Board of Directors

are elected yearly by the Stockholders during the Annual Stockholders' Meeting. The Board of Directors

is headed by the Chairman of the Board. Under the Board of Directors is the office of the President.

Directly reporting to the President are the Medical Director and the Hospital Administrators. The different

Department Heads in turn will report to the Medical Director and their respective Hospital Administrator.

One of the departments present at the institution’s inception is the Department of Industrial

Medicine. This is composed of a Department Chair who is a diplomate in Occupational and Industrial

Medicine, two practitioners in Occupational Safety and Health (OSH) and an OSH-trained nurse, who

assists the doctors and serves as a clerk. With Valenzuela considered as one of the premier business and

industrial hub in the Philippines (Castro, 2017), ACEMC-Valenzuela wanted to provide services

appropriate to the characteristic of its market by establishing the department. As part of the its basic

services, the department performs pre-employment physical examination and routine check-up of all

employees of the hospital. In addition to these, the department aims to set itself apart from its counterparts

in other healthcare institutions by providing consultation for work-related disorders, identify and address

threats to the health and wellness of the employees in the workplace, minimize work-related illnesses and

accident, and promote good health practices of the employees in the workplace.

Valenzuela City Statistical Report

Median Age: The median age of the population in Valenzuela City is 23 years.

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Sex Ratio: Males outnumbered their female counterparts with sex ratio of 101.37 males for every 100

females. In 1995, the ratio was 100.83. There were more males than females in the age groups 0 to 14 and

25 to 54 years. On the other hand, females dominated in the rest of the age groups.

Three out of five persons in the population were voters. The total population of voters in Valenzuela

City is 300,497 persons or 61.90 percent of the city population. The proportion for females posted 50.23

percent, slightly higher than that of the males.

Females dominated higher level education. About 28 percent of the household population five years old

and over had completed/attended elementary education; 37.35 percent, high school; and 19.64 percent were

either college undergraduates, academic degree holders or had post baccalaureate courses. By gender,

females dominated household population who were college undergraduates (50.04 percent), academic

degree holders (54.23 percent) and with post baccalaureate courses (56.27 percent).

Married persons outnumbered single persons. Almost 48 percent of the total population 10 years and

over were married, while 39.89 percent were single.

Average Household Size: Occupied housing units had median floor area of 35.54 square meters. This

meant that, half of the housing units had floor area of below 35.34 square meters.

Factories and Manufacturing companies. There are 1,676 factories and companies in Valenzuela, which

are are mostly manufacturing companies. The city emerges as the top manufacturing hub in the Philippines.

Employment score: Based on ranking, Valenzuela City ranks at no. 30 in the Philippines in terms of

employment.

2. RESEARCH DESIGN AND METHODOLOGY

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The research methodology used in this paper is through various data collection and strategic management

framework by Fred David. Data gathered came from various institutions such as World Bank (WB), Bangko

Sentral ng Pilipinas (BSP), National Statistics and Coordination Board (NSCB), National Statistics Office

(NSO), and Philippine Health Insurance Corporation (PHIC).

Various tools are used from external, internal and formulation tools to acquire the right strategy fit for the

company. Recommended implementation of the strategies is mapped in the balance scorecard with action

items assigned per department. All recommended actions are proposals subject to approval by the actual

department and the company.

3. MACROENVIRONMENTAL ANALYSIS

The macroanalysis focuses at the factors affecting the healthcare industryor in general. These are discussed

in the following sections and are considered later in the External Factor Matrix. Identified factors are then

given weights and rating according to the recommended process in filling up the table.

3.1 Political

Broadened PHIC Coverage (Universal Health Care Program).

Philhealth is the government funded universal health care provider for the country. In the strategy map plan

of the agency, there is a strategic plan until 20221 in providing financial stability and to sustain all programs

relating to universal health. This is also in line with the expanded budget of the agency to cover various

expanded health2 related requirements set by the government.

Relevance:

1 https://www.philhealth.gov.ph/about_us/transparency/PhilHealth_CorpStratMap.pdf
2 https://www.philhealth.gov.ph/about_us/bod/BM12052017.pdf

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The broadened health care coverage can result in additional source revenue for the company at the same

time helps the patient unload upfront cost. One thing to keep in mind is the process of remitting claims from

the government. This will take some time to recover as long as all the requirements are complete.

Level of Government Subsidies (DSWD/PCSO).

According to the latest statics released by the City of Valenzuela, there is an increasing population in the

City. The the total population increased to 620,422 in 2015 from only 568,928 in 2007. Considering this

increase in population, government subsidies for people’s health care needs provided through the

Department of Social Welfare and Development (DSWD) and the Philippines Charity Sweepstakes Office

(PCSO) is therefore important for hospitals to consider to ensure that services needed are adequately

provided.

Relevance:

This can be an opportunity opening for new markets or patients subsidized by the government. The hospital

may create new packages providing services needed by this market.

3.2 Economic

Low Family Income in the Philippines. In 2015, results of the survey conducted by the Philippine
Statistics Authority (PSA) shows that the average family income in the Philippines is estimated at
Php22,000 monthly3. In the same year, 41.9 percent of the total annual family expenditures was spent on
food. For those in the bottom 30 percent income group, the percentage spent on food was much higher at
59.7 percent. The lower the income, the lower is the disposal income available to Filipinos limiting their
capacity to spend for medical care or hospitalization.

Relevance:

3
PSA. Average Family Income in 2015 is Estimated at 22 Thousand Pesos Monthly.
https://psa.gov.ph/content/average-family-income-2015-estimated-22-thousand-pesos-monthly-
results-2015-family-income

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Lower income families prioritize basic needs such as food and clothing. Due to lower disposable income,

individuals may give least priority for their health concerns. Less priority by people on health may result

in lower number of individuals visiting clinics and hospitals for health care needs.

3.3 Demographic

Increasing Population in the Philippines.

According to PSA, the population of the country is projected to increase to 142 million in 2045 from its

2010 Census Count of 93 million4. Such increase is said to be expected even with the projected slowing

down of the average annual populaton growth rate, which is 0.65 percent during 2040-2045 from 1.73

percent during 2010-2015.

Relevance:

This serves as an opportunity for the hospitals. Increasing population also means increasing needs for

medical care, and therefore more opportunity for a hospital to provide its services.

Increasing Life Expectancy.

According to the United Nations Population Division, life expectancy at birth refers to the number of years

a newborn infant would live if prevailing patetrns of mortality at the time of its birth were to stay the same

throughout its life. Life expectancy at birth for both females and males in the Philippines, which 71.7 years,

is 4.5 years higher than the world’s average of 67.2 years, and is also the 5th highest among Southeast Asian

countries.5

Relevance:

4
PSA. Highlights of the 2010 Census-based Population Projections. https://psa.gov.ph/content/highlights-2010-
census-based-population-projections
5
PSA. Life Expectancy at Birth of Women. https://psa.gov.ph/content/life-expectancy-birth-women

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As part of the health industry, hospitals serve people. The longer people live, the more that there will be

opportunities for hospitals to provide healthcare services.

Migration of Filipinos to Metro Manila

The influx of Filipinos in Metro Manila from various parts of the country continue as more job opportunities

are offered in the city. With 4,743 industrial companies in Valenzuela City, the city has become one of the

destinations of job seekers from various provinces of the country. The migration of people to the National

Capital Region due to job opportunities has been one the main reasons in the increase of population in

Valenzuela as well.

Relevance:

This serves as an opportunity for the hospitals. Increasing population also means increasing needs for

medical care, and therefore more opportunity for a hospital to provide its services.

3.4. Social

Availability of Health cards (HMOs).

The average annual family income is P 267,000, the annual family expenditure is P 215,000, savings

realized per year for each family is P 52,000 or the average disposable income per month is P 4,333.33.

This amount will not suffice for hospital expenditure if a family member is hospitalized in a private hospital.

With the growing membership of individuals with Health Maintenance Organizations (HMOs) and the

almost 100% PHIC membership for Filipinos, an average Filipino family with earnings of P 267,000

annually can now afford to take care of their household members medically without sacrificing provisions

for their basic needs.

Relevance:

This is an opportunity that can increase the number of patients who may avail of hospital services .

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Presence of Special Interest Groups (Civic/Religious Organizations, Diabetics, Geriatrics).

In Valenzuela City alone, the total number of civic and religious organizations is 28. Aside from these are

groupings in relation to illnesses. The presence of these organizations could provide an avenue for providing

access to healthcare services to people. Hospitals may tie up with these organizations through medical

programs such as the conduct of medical and dental missions.

Relevance:

These are emerging and expanding markets that can be another source of revenue for the hospital and for

the department.

Low Health Literacy Among Filipinos

Only 2.4% of children in Valenzuela are not attending schools. This does not translate, however, to health

literacy. Health literacy is defined as “the degree to which an individual has the capacity to obtain,

communicate, process and understand basic health information and services to make appropriate health

decisions” by the US Centers for Disease Control and Prevention. In a health forum, Philippine College of

Physician President Dr. Anthony Leachon described the situation of the Filipinos’ health literacy as follows:

“When patients come to us to seek medical advice, they are very sick already.” This low level of literacy

among Filipinos, especially the underprivileged, may translate to poor health-seeking behavior.

Relevance:

This low level of literacy among Filipinos, especially the underprivileged, may mean poor health-seeking

behavior. Poor health-seeking behavior may translate to less people going to hospitals for early detection

of diseases.

Lifestyle Change Among Filipinos.

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In a study conducted by an international consumer knowledge compan Kantar Worldpanel, Filipinos are

now choosing “lighter” food variants with more nutritional benefits6. The said study observed food

purchasing trends from 2015-2016 of Filipinos that included categories such as cereals, canned meat,

yoghurt and various beverages. Results of the study also show that Filipinos recorded higher purchases of

sports and energy drinks during the covered period, majority of which are from the working class and urban-

based. These findings indicate a shift in the lifestyle of Filipinos towards health and wellness.

Relevance:

A shift in the lifestyle of people towards health and wellness is an opportunity for hospitals as people may

become more aware of the importance of seeking medical services.

3.4 Technological

Conversion to fully automated lab equipment.

One of the increasing trends is the use of technology in streamlining processes from end to end. A fully

automated lab7 would have customers acquire results after the medical technician provided the access date.

The automation provides the manual step by step procedure of getting patient info to medical technician

extraction until the test is conducted. The test results are reviewed and uploaded to the customer access

portal. The portal is then accessed by the customer to acquire the result. Patients can also get the hard copy

within the said period.

Technology had been the tool in the progression of man. New technologies will always make things better

in reducing cost, fast track processes and more accurate results. Automation have all these categories

specially the reduction of human intervention susceptible to human error. Any forms of error would be loss

for the company and tagged as a weakness.

6
Philippine Daily Inquirer. https://lifestyle.inquirer.net/260901/filipinos-making-healthier-food-beverage-choices-
study/#ixzz5liiuEfr5
7 https://enterprisersproject.com/article/2018/3/what-s-next-it-automation-6-trends-watch

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Relevance: As new technologies are discovered, additional process and steps are created in order to acquire

an accurate result critical to health. This is to ensure all variables are considered and tested to have the right

result. The precise information would help medical personnel in giving the right medicine and remediation

to help patients recover. This is also a form of quality assurance alleviating patient concerns.

3.5 Environmental

Pollution and Persistence of Climate Change causing Increased Incidence of Diseases.

Climate has an effect with a person’s health. There is a steady on increase in temperature also increases in

different types of diseases8. Different temperature ranges create different types of diseases and may easily

spread during humid or dry seasons. Examples would be the spread of airborne viruses spread during

summer causing massive outbreaks. With the increasing Industrial Companies in Valenzuela, Pollution is

inevitable if the local government will not implement strictly the guidelines for environmental protection.

This is considered an opportunity in the Medical Community since regular medical checks will increase

utilization of the industrial medicine department of the hospital.

Relevance:

Climate change is gradually altering the way humans live. It is like a steady pressure being applied to each

person be getting used to it. New and old diseases will eventually move faster and will spread widely

affecting not only humans but for all living things. Health industry will find themselves in the firefight

mood and expect filled hospital beds. This will also drive high temperature type diseases and will need

various equipment analyzing these illnesses.

Traffic Congestion in Metro Manila

The traffic in Metro Manila will continue to worsen as population and number of automobiles increase.

According to the Philippine office of the aid agency Japan International Cooperation Agency, the traffic in

8 http://www.epa.gov/climatechange/impacts-adaptation/health.html

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Metro Manila costs Php 3.5 billion in lost opportunities per day9. This is higher that the estimated Php 2.4

billion in 2012. Without any intervention, it is projected to increase to Php 5.4 billion per day in 2035.

Relevance:

The worsening traffic in Metro Manila also affects hospitals as people’s trael time to and from different

points in the city have become longer. This is a threat to the hospital as people may opt to avail of healthcare

services at laboratories and clinics near their residences rather than go to the hospital.

3.6 Legal

New Government policies/regulations.

There are new government regulation affecting the health industry. One of the regulations is the coverage

of HMOs on different line of disease. This would help increase the premium and government subsidies for

universal health coverage. Another part of new government regulation is setting up additional requirements

needed for HMO to operate. This is to ensure stricter enforcement of the law and making sure all HMOs

can withstand changes in economic conditions10. There is also flexibility in creating new HMO products

for the company to be profitable.

Relevance:

Any form of regulation will also have an effect in any industry. Companies cannot fight city hall. These

new regulations may raise or lower taxes specific to the industry. Part of the industry actions would the

adjustment of taxes pertaining to the new regulations. Some regulations will also require companies create

additional steps that will require additional cost. It is important for strategy managers in reading the policies

and the actual effects in the company.

9
Philippine Daily Inquirer. https://newsinfo.inquirer.net/970553/jica-traffic-congestion-now-costs-p3-5-billion-a-
day-metro-manila-traffic-jica-cost-of-traffic#ixzz5limuRtlp
10 https://oxfordbusinessgroup.com/analysis/best-health-many-filipinos-receive-health-care-through-health-maintenance-
organisations-best-health

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4. INDUSTRY AND COMPETITOR ANALYSIS

In this section, the industry and competitor analysis help to determine each competitor processes, position

and forces affecting the industry. These analytical tools provide some insights within the business of health

for strategy managers to provide the appropriate actions and navigate within the industry.

4.1 Value Chain Analysis

Changes in the Insurance/HMO plans. ACE hospital belongs to the health industry and follows the same

process from acquisition of medical supplies to equipment used by hospital workers. In the value chain,

medical personnel using supplies and equipment undergo various trainings to ensure effective use. The

same personnel also maintain and operate the same equipment. Marketing is in charge of promoting and

creating packages for patients availing the service. These packages or promotions adds to the overall

revenue of the hospital. Patients availing the services used various HMO and government subsidies to cover

cost. Some patients shoulder the cost not covered by HMOs.

Inbound Logistics Service Delivery and Marketing Consumption

Quality Management

• Acquisition of • Training cost on • Marketing informs • Philhealth patients

Medicine, medical equipment use for the public on new cover 90% of
supplies, and other medical and non- services and hospital revenue and
non-medical medical staff equipment upgrades the 10% are pay
suppkies such as • Application of • About 1% goes to patient
food. Supplies cover technology in Hospital promotions
29% of the total hospital process such
expenses as patient database
• Acquisition of management, billing
medical equipment and payment system
• Recruitment of • 64% of hospital
medical and non- budget goes to
medical staff personnel services
• 28% covers
maintenance and
other operating
expenses (MOOE)

Figure 4.1: Health Industry Value Chain

Key Findings and Insights:

It is important for strategy managers to understand how the process works inside the hospital and within

the industry. Connecting this process with the other data gathered, managers can see the effects of various

16
forces such as HMO industry affecting additional cost or affecting patient coverage. Another force may

come from government regulations affecting the industry. These regulations may affect how patients pay

hospital services needed during emergency cases.

4.2. Porter’s Five Forces of Competitive Analysis

Porter’s Five Forces is one of the analysis tools to help determine the various forces affecting the industry.

The analysis of the health industry particularly hospitals have the same factors affecting each company.

Rivalry of Competition: Strong

The city of Valenzuela is one of the cities bordering Bulacan and other cities in Metro Manila. Cities are

expected to have various institutions not found in local provinces. One of them is medical facilities. These

facilities expect to have the most complete services, sought after diagnostic tools, and cures to help patients

with their illnesses. There are various medical facilities located within the vicinity of ACE hospitals making

the rivalries Strong and high level of competitiveness.

Potential for New Entrants: Strong

Establishing a medical facility would require various medical equipment, skilled medical personnel and

medical doctors. There are no barriers to entries to create such a facility and would only require the capital

to form one.

Bargaining Power of Suppliers: Weak

The bargaining power of suppliers can be categorized into medical supplies, medical equipment and

available personnel. These three categories are abundant and there is high competition in acquiring the

hospital as a client. This high level of competition by the suppliers would only conclude the weakness of

this category.

Bargaining Power of Buyers: Strong

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In this categorical force, the bargaining power of buyers would be the ability of patients to pay for the

services to acquire the needed results. Doctors would need various test conducted and properly diagnose a

patient. This requires specialized medical equipment provided by medical facilities with no substitutes.

Patients have the proper bargaining power to have an alternative service provider. This force is strong.

Potential for Substitutes: Strong

Similar to bargaining power of buyers, there are no substitutes to properly diagnose as required by the

doctor. Laboratory equipment are specific medical equipment with specific result areas. There are no other

substitutes for these types of equipment. Looking at it as a service provided by various health facilities,

patients can simply change to other facilities and substitutes are strong.

Potential
Entrants

Bargaining Bargaining
Power of Rivalry Power of
Buyers Suppliers

Potential
for
Substitutes

Figure 4.2: 5-Forces for the Health Industry

Relevance:

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Porter’s Five Forces is one of the insightful tools in manager’s disposal. It helps understand how the industry

works to make specific actions with various competitors. It also has the view in understanding the

significance of a weak bargaining position of suppliers, buyers, substitutes and entrants. The company can

have control of these factors and work with other competitors to have a sense of healthy competition serving

patients. It can serve as an opportunity for hospitals in maintaining the current rivalry.

4.3 Competitive Profile Matrix

Competitive Profile Matrix is an important indicator of how the company competes and a determining

factor to improve their standing against each other. Shown below are identified competitors, various factors

the company and their ranks based on various categories.

ACE Hospital

 Level 2 Hospital

 100 Beds

 Member of the ACE Medical Centers

Key Competitors of ACE Hospital

In the case of ACE hospital, level 2 hospitals would be the best identified competitors within the area. It

target to be the best in the area and can bench mark itself with our Level 2 or below hospitals in the area.

Meycauayan Doctors Hospital

 Level 2 Hospital

 With Rehab

 8 Resident Consultants

 30 Visiting Consultants

 1 Ambulance

 50 beds

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Valenzuela CitiCare Medical Center

 Level 2 Hospital

 Rooms – 40 Beds

 Nurses – 72

 8 Resident Doctors

 30 Visiting Doctors

Critical Success Factors

Competitive Profile Matrix is an important indicator of how the company competes and a determining

factor to improve their standing against competitors. Shown below are various factors the company and its

competitors determine their ranks based on various categories.

CSF 1 – Adequate Number of Staff

Running a facility would require the right staff and supporting time slots in a 24/7 hospital. Out patients

would still be the bulk of the department revenue but will still need off hours personnel to cover in-patients

located in the hospital.

CSF 2 - Location

It is important for the location of the facility to get the most of their patients based on a good location. The

location will determine how much patients are able to access the hospital through different means.

CSF 3 - Availability of facilities

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Hospitals are categorized based on the following availability within their facilities. Secondary hospitals will

need various Departments, Equipment/Instrument and Infrastructure to be certified by the DOH. Weight

given is

CSF 4 - Services offered

To maximize the various acquired equipment, marketing provides the catalog of services offered for

patients to avail. This will be one of the sources of revenue for the company.

CSF 5 - Number of Specialists

Each equipment will need a specialist to operate. Specialist support will also play a role in making sure the

equipment works right and properly maintained.

CSF 6 - Ample Room for Expansion

Support facilities compliments to the ability of a hospital to provide the needs of the patient during their

stay. Room expansion will help accommodate and contribute to the stream of patients needed by the

department.

CSF 7 - Bed Capacity

One determining factor of a busy hospital is the bed capacity. More capacity would accommodate more

patients and availing internal facility including radiology. The beds operate on a 24/7 shift.

CSF 8 – Pricing

Filipinos are still price sensitive and use the bulk of their expenses in their daily needs. Most patients will

rely on Philhealth and HMO to cover medical expenses and the rest would come from patient savings.

Understanding this need, pricing would play a role as a determining factor for competitiveness.

ACE Hospital Rating

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CSF 1 - Adequate Number of Staff (Rating: 4)

As Level 2 status, it requires adequate number of staff and maintain the number according to their level.

CSF 2 - Location (Rating: 4)

ACE has a different location near the water ways of the city. It is strategically positioned to allow nearby

towns close to the province of Bulacan.

CSF 3 - Availability of Facilities (Rating: 3)

Like other level 2 hospitals, facilities are available 24/7 within the 8th story hospital.

CSF 4 - Services Offered (Rating: 3)

Multiple services are required to attain the level 2 status.

CSF 5 - Number of Specialists (Rating: 4)

Attaining Level 2 status requires the number of specialist in their roster. They also a member of the ACE

medical group which adds to the local hospital employee list.

CSF 6 - Ample Room for Expansion (Rating: 4)

The current 8-story build is just a start for them to expand.

CSF 7 - Bed Capacity (Rating: 3)

The current declared bed is 100 as required for a level 2 hospital.

CSF 8 - Pricing (Rating: 4)

One of their strengths of ACE is their competitive pricing.

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Maycauayan Doctors Hospital Success Factor Rating.

CSF 1 - Adequate Number of Staff (Rating: 3)

M3H has adequate staff for a level 2 hospital.

CSF 2 - Location (Rating: 3)

MDH is located centered in the middle of the city but close to other major hospitals.

CSF 3 - Availability of Facilities (Rating: 3)

MDH has an adequate supply of facilities.

CSF 4 - Services Offered (Rating: 3)

MDH has limited facilities compared to L3 hospitals. This includes number of specialists on hand and

services offered.

CSF 5 - Number of Specialists (Rating: 4)

MDH has number of specialists on hand and services offered.

CSF 6 - Ample Room for Expansion (Rating: 2)

There are limited rooms.

CSF 7 - Bed Capacity (Rating: 2)

It complies with a Level 2 hospital minimum requirements.

CSF 8 - Pricing (Rating: 3)

They are competitive within the area.

23
Valenzuela CitiCare Medical Center Critical Success Factor Rating

CSF 1 - Adequate Number of Staff (Rating: 2)

VCCM is a level 2 hospital with various specialization in place. This includes adequate staffing required

for L2 Hospital.

CSF 2 - Location (Rating: 3)

VCCM is located close to other L2 hospitals in the area but enough to acquire patients.

CSF 3 - Availability of Facilities (Rating: 3)

VMC has a level 2 hospital status and caters to various facilities available to meet the standard.

CSF 4 - Services Offered (Rating: 2)

Level 2 satisfies various services requirement as part of their compliance. VCCM has all services needed

for this level.

CSF 5 - Number of Specialists (Rating: 3)

As Level 2, they must have a number of specialist on hand.

CSF 6 - Ample Room for Expansion (Rating: 2)

They have ample room and may expand as needed.

CSF 7 - Bed Capacity (Rating: 2)

Level 2 has a bed capacity requirement. It has the bed capacity of 40 beds meeting government regulations.

CSF 8 - Pricing (Rating: 3)

VCCM is competitive within the market price since it caters to the low to mid quintile.

24
The table below is an overview of how ACE hospital was able to rank itself with the rest of the competitors.

It is important for the strategy managers in analyzing the table and get some key learnings on where to

improve as part of the overall strategy.

Table 4.3: Competitive Profile Matrix

Valenzuela CitiCare
ACE Hospital Calalang General Hospital
Medical Center
Item Factor Weight Rating Score Rating Score Rating Score
1 Adequate Staff 0.1 4 0.4 2 0.2 2 0.2
2 Location 0.15 4 0.6 2 0.3 3 0.45
Availability of
3 0.1 3 0.3 2 0.2 3 0.3
Facilities
4 Services Offered 0.25 3 0.75 2 0.5 2 0.5
5 Number of Specialists 0.1 4 0.4 2 0.2 3 0.3
Ample Room for
6 0.05 4 0.2 2 0.1 2 0.1
Expansion
7 Bed Capacity 0.05 3 0.15 2 0.1 2 0.1
8 Pricing 0.2 4 0.8 3 0.6 3 0.6
Total 1 3.6 2.2 2.55

Conclusion:

The Competitive Profile Matrix sums up the factors affecting competition within the industry. The rankings

show where to improve or leverage the existing strengths against competitors. A strategy manager can

maximize the use of the CPM table to determine the course of action to focus on the strategy. The eight

factors show ACE Hospital have the highest ranked factor while Valenzuela CityCare Hospital has the

25
least. This will have an impact on action items to be set at the end of the paper. Depending on the

recommended strategy, the company can take advantage using Pricing with number of specialists against

other companies.

4.4 Market Analysis

In this section, the market analysis determines the percentage of the overall market position and how the

company was able to capture parts of the market against identified competitors. There are various sections

in determining where the company excel in the market and how it will improve as part of the strategic plan.

4.4.1 Market and Competitor Trends

The effects of Seasonality. Market revenues is the result of various activities and trends of the industry.

Hospitals rely on various services for the patient to have a one stop shop for them to retain within the

premises. Also included in the market trend is the increasing demand from lifestyle diseases. Radiology

must have the right equipment to accommodate these demands.

Another trend would be the use of various technologies reciprocating the demand of accessibility by all

patient data. Part of this trend is the availability of information after the patient used the radiology services.

This may be in the form of soft or hard copies accessed by the patient to make better decisions.

There is a trend within the year on various diseases. According to the Department of Health11 statistical

data, there are some 26 common type of disease within the country. These types of illness would have high

occurrences during summer or rainy seasons. Colds, flu and dengue fever are common during the rainy

seasons. Some line high blood and heart attacks would be during the Christmas holiday season.

Relevance:

Understanding the markets and competitor trends are vital to the formulation of the company strategy. One

of the trends are the seasonality effects to the industry. The company can create various marketing programs

11 http://caro.doh.gov.ph/?page_id=383

26
to look at highs and lows of the season. During low season, marketing can create a campaign in driving

prices down to generate the needed demand. The opposite is true during high season where marketing can

increase the price to maximize revenue.

4.4.2 Market Segments

Competitors: New services offered, New Hospital/free standing clinics. Hospitals still rely on the table seen

below in identifying their own market. This is divided by three categories. Philhealth coverage, type of

residence, and wealth quintile are the identified market segments for this industry. A poor patient quintile

may not have the right Philhealth coverage and will end up as a charity patient. Majority of hospitals still

target paying patients with Philhealth and HMO coverage to ensure medical bills are paid for the hospital

to continue to operate.

Table 4.4: Patient Quintile Table Breakdown

Shift in Market demand or referral sources. Majority of the patients with the Valenzuela area belong to the

poor. The table above clearly shows what the preference of middle to the poorest quintile chooses in terms

of medical care. This also reflects on the laboratory preferences provide a low cost but the results would be

the same. This is also true for richer to richest quintile of remaining with the private hospitals rather in the

public facilities.

New Market segment (Home services for debilitated Elderly and PWDS). The markets open up to various

ages according to the new data from the commission of population. It is predicted that elderly will grow

27
4.9% by 2020 and will continue to increase to 6.3% by 203012. In line with elderly, people with disabilities

or PWD13 are composed of 1.57% of the population back in 2010 according to the PSA. These are new

untapped market segments not found in regular marketing statistics.

Relevance:

Market segments are the key in understanding who the customers are. It also shows the emergence of new

markets, shifts in the demand and changes in the number of patients availing low end services. It is

important to include these factors in the strategy to gain the most out of this insight. A good example would

the elderly and PWDs increase. The government is now giving some attention in this segment and provide

better services for them. There may also be good opportunities to be ahead of the pack in providing new

services by going to them rather than going to the hospital and get their required samples.

4.4.3 Marketing & Promotions

There is medical rule amongst doctors in advertising themselves as part of their practice. Doctors do not

advertise their services for them to charge more. Somehow, this is also practiced within the facility. There

is limited advertisement available outside of the company together with other competitors. Majority still

rely on word of mouth or rely on the doctors having a lot of patients.

As any hospitals with the industry, there are minimal marketing and promotions conducted by each

company. They heavily rely on referrals and word of mouth to acquire more patients. They also rely on the

HMO network and Philhealth accreditation to acquire initial patients within the area.

Relevance:

A good marketing campaign will make or break a company. Understanding the market will always be the

key in creating new forms of advertisement and what kind of delivery these advertisements used. These are

12
https://news.abs-cbn.com/news/01/03/18/philippines-moving-toward-aging-population-popcom

13 https://psa.gov.ph/tags/persons-disability

28
clear communications coming from the hospital on available services currently available. It would also

highlight the strength of the hospital not found in other competitors to appeal to the intended patient. A

good example would be having state of the art MRI scans not found in nearby cities. Patients do not need

to travel far to get the best diagnostic equipment saving them travel time and cost.

4.5 External Factor Evaluation (EFE)

The EFE table is the derived extracted factors coming from various external tools. It shows the important

factors a strategy manager can acquire given the current state. The weights and ratings are filled up by the

author to determine the priority and impact of each factor.

4.5.1 Opportunities, Importance Weights, and Ratings

O1. Company and health management organization

WEIGHT: 15% - The growing interest of the general public in health maintenance organizations (HMO)

is an opportunity not only for the department but for the whole medical center to build its network so that

they can have farther reach and wider market to attend to.

Rating: 1 ACE has to market its Industrial Medicine department especially to companies that have HMO

coverage.

O2. Government regulation

WEIGHT: 20% - Government regulation determines the quality of standards for healthcare institutions.

Rating: 3 ACE hospital is abreast of all government regulations.

O3. Work Related Illnesses

WEIGHT: 5% - This should be one of the primary focus of the industrial medicine department. Research

must be undertaken.

29
Rating: 2ACE does not have a marketing research component. Research is done by the individual unit.

O4. Working conditions

WEIGHT: 5% - These dictate the type of illnesses that employees will be confronted with, and which

industrial medicine departments will also have to care for.

Rating: 1 ACE has no marketing department to attend to this type of research..

O5. Unionization

WEIGHT: 20% Labor unions have been at the forefront of ensuring that employees are given health

benefits. They are also, in some instances, given the authority to choose the company healthcare provider.

Rating: 1ACE has no marketing arm that would build relationships with these labor unions.

4.5.2 Threats, Weights and Ratings

T1. Unemployment

WEIGHT: 15%This has a major direct effect on an Industrial Medicine unit whose focus of course is on

company employees.

Rating 1- ACE again has to focus on marketing the unit to businesses within the area. Packages have to be

conceptualized.

T2. Tax Reform for Acceleration and Inclusion (TRAIN) law

WEIGHT 15% This has a major impact on prices. Businesses will be wary of entering into any new

contracts for healthcare.

Rating 3 The accounting department has taken this into account.

T3. Immigration

30
WEIGHT 5% Good staff are leaving the country to work abroad

Rating 1 ACE has to come up with programs that will entice staff to stay longer.

The table below shows the identified factors to be used in the formulation stage. These factors provide more

weight compared to previous identified factors. All defined factors are recognized by the author and as a

subject matter expert in the field.

Table 4.5: EFE Table The External Factor Evaluation (EFE) Matrix

Opportunities Source Weight (%) ROR Score

Company and health
management organization Economic 15 1 0.15
partnership
Government regulation Political 20 3 0.6
Work-related illnesses Socio-cultural 5 2 0.1
Working conditions Environmental 5 1 0.5
Unionization Political 20 1 0.2
Threats
Unemployment Economic 15 1 0.15
Tax Reform for Acceleration
Political 15 3 0.45
and Inclusion (TRAIN) law
Emigration Socio-cultural 5 1 0.05
Total 100 2.2

Strategic Issues Based on External Factors

The EFE analysis table shows the score of 2.20 which is a result of various factors and rating given by the

author. This is then used in the formulation stage in creating a strategy fit for the department. The weights

are given more preference but will depend on other factors to formulate the strategy.

5. COMPANY ANALYSIS

31
The company analysis looks at the organization to determine the full potential. Several tools are used to

know what is needed and make adjustment accordingly.

5.1 Company Vision and Mission Statements Analysis

Vision and Mission statements drives the direction of the company. There are two part of the analysis. One

is the vision and the other is the mission. This delineate the one from the other making the vision clear from

the how of the mission. Shown below is the Vision and Mission Statements of ACE Hospital.

ACE Hospital’s Vision

ACE hospital Vision and Mission

Advanced medical facilities in a multicenter global network

Care for the patient where and when he needed it most

Excellence in healthcare service and corporate governance

Table 5.1.A: Vision Statement Evaluation Table

Parameter Yes / Why

No

Does it clearly answer Yes To become an advanced medical facility in a multicenter global
the question: What do network.
we want to become?

Is it concise enough No The statement of the advance medical facility if vague and it does
yet inspirational? not end since technology evolves.

Is it aspirational? Yes It is somewhat aspirational to have an advance facility

Does it give clear No There is no indication of when this will be achieved.

indication as to when
it should be attained?

32
ACE Hospital’s Mission

ACE hospital Vision and Mission

Advanced medical facilities in a multicenter global network

Care for the patient where and when he needed it most

Excellence in healthcare service and corporate governance

Table 5.1.B: Mission Statement Evaluation Table

Parameter Yes / If yes, which part of the statement

No

1. Customers Yes Mentioned Care for the Patients

2. Products & services Yes Wide coverage of health services

3. Markets No Non-specific patient mentioned

4. Technology No Non-specific technology use

5. Concern for survival, No Excellence is a loosely term for survival or growth

growth, profitability

6. Philosophy Yes Patient care on where and when it is needed

7. Self-concept Yes To be advanced medical facility

8. Concern for employees No Non-specific mention of employees within the corporate

governance

9. Concern for nation building No No concern of building the nation

Communicating Vision and Mission Statements to Employees

33
The tables shows some items to improve on. These improvements will be part of the recommendations at

the formulation stage. It is important to identify areas of improvement for the new VM to be more compliant

with the VM recommendations.

5.2 Company Internal Audit

Management

The management team are composed of various directors with Medical Doctor Degrees. The screenshot

was taken from the ACE hospital website only indicate the Board of Directors with the chairman. There is

no specific department assigned for each board member. The department chairman for Laboratories and

overall management fully support their staff from training to process improvement up to the needs of each

employee to do their work well. The current roster, only few founding member remains practicing and

contributing to the management of the company.

Figure 5.2.A: Executive Team for Valenzuela Hospital

Human Resources

34
Internal process and competition contribute to the migration of personnel increasing attrition. According to

internal audits from HR, there is a high attrition amongst medical personnel with a turn over average of 2

years. There are several factors affecting the high attrition which is prevalent in the medical industry. One

of them is the competitiveness of salaries in comparison with government hospitals. Internal process also

affects the personnel migration through strict policies and procedures making it unattractive for medical

staff to stay. Part of the HR policy is having fixed rates for identified personnel. This is one of the cause of

some attrition in some departments. The company compensates through other means to keep the best

people. Another factor is the immigration of medical staff to other countries that offer higher salaries.

Nurses, for example, only serve for at least 2 years to complete experience requirements in their applications

for jobs in countries abroad.

Marketing

Weak Marketing arm. The marketing uses various channels. The most visible is the website where

information is readily available. The hospital still a lack some elements to complete a good marketing

program which covers the 4Ps. This is very important as the hospital can leverage on the affordable

services that the department offers. Prices of the services in the Ancillary Department is relatively

affordable compared to other hospitals in the area. Further, the hospital can also make known the packages

and programs available for various groups of patients.

Finance

Delay in payment from HMO’s / PHIC due to internal claims processing and Claims processing causing

delays in acquiring payment from patients as mandated by Government regulation (no deposit policy). From

the initial audit, finance and account department takes some time in processing internal claims to be changed

in various partners. There is a lack of process and technologies to help with the filing of claims. Majority

of which still uses paper and there are no central systems to fast tract from discharging the patient to their

release.

35
Operations

In terms of operations, noteworthy in the department is the slow or delay in the release of results to patients.

Delay in the release of results have a negative impact to patients in terms of the urgency of their medical

condition. This also decreases the chances of them coming back to avail of other services they require.

Research and Development

The company does not have any R&D. They rely on departmental initiative for them to improve on their

own.

Relevance:

The audit is a systemic approach recommended by the strategy book to determine the current situation. The

information gathered would be a glimpse of strengths and weakness of a company compared to a baseline

competitive industry and normal best practice. Notable is the lack of marketing services in the hospital,

which could help in improving the number of patients who may avail of the services of the department.

The hospital should consider the importance of having an overall marketing plan.

Another factor can be included in the IFE matrix is the slow processing of claims for government and

HMOs. This can be a good opportunity to address this weakness and make the most efficient way of getting

the claims as fast as possible. Any slow claims would be a lost in revenue and can be seen in the financial

statements of uncollected billings.

5.3 McKinsey’s 7S Framework Analysis

Operations

36
There are operations manuals furnished by the founders for most of the departments. The staff are trained

to follow these manuals for operational efficiency.

Conclusion: Good

The staff have a set of guidelines to follow thus increasing operational efficiency.

Strategy

Reaching more populace thru Medical Mission and Industrial Connections. Part of the company advocacy

is organizing medical mission and Industrial connections. The medical missions are conducted in various

places with the city as part of reaching out to less privilege patients. Additional referrals and partnerships

go through industrial connections to position the hospital as a preferred local health facility. However, there

is a gap in the implementation of the company strategy. The absence of the implementor is not part of the

planning and relies on each department head to implement the strategy plan.

Conclusion: Good

This may be a good strategy involving community service. It can reach out to various areas not previously

known to the hospital. A strong presence to the community is a good indicator of a lasting institution and

provide good health services.

Systems

Lack of system to measure labor Efficiency of the staff. One of the challenges in the production or operating

areas is the efficiency of the labor force. Each personnel are evaluated by their direct reports to review job

performance just like any other company. The lack of defined key performance indicators is a challenge to

37
determine the efficiency of the individual and a team as a whole. The company still rely on the old method

of job evaluation.

Incomplete Automation. A couple of years ago, the automation project kicked off with the various

departments gathered to provide their own business processes. The documentation lead to the various

analysis and conversion that would develop department automation. There are some items and actions need

to be completed for the whole project to be realized by higher management.

There are some systematized processes using flow charts to ensure each personnel follows this procedure.

It ensures consistency with the department. To further improve current systems, controls for lab standards

of equipment are in place. This ensures fast and accurate results are always a priority. It also keeps the

maintenance of its equipment.

Conclusion: Needs Some Improvements

These systems are essential to the survival of the department. Technology and systems go hand in hand

creating an accurate and efficient laboratory results. These are expected by each patient and their doctors

in delivering needed information and improve patient care. Overall, there are some areas for improvement

specifically in rolling out automation that can make life easier for the people using the system.

Style

Each manager has their own management style. Each department have various managers and leads.

However, they all follow company values of Altruism, Compassion and Excellence as part of company

culture.

Conclusion: Good

38
Proper management can make or break a team. It is important for the management team sending the right

message and inculcate corporate values in each team. Deviation from this practice can be disastrous.

Overall, the management team’s style is good.

Staff

Majority of staff are skilled employees with management support on various trainings needed. Management

supports the improving personnel skill in order to provide better service for their patients. Their numbers

are appropriate to the workload and demands of the department. The staff are also given the opportnity to

attend conventions and CME’s.

Conclusion: Good

A motivated staff would mean good and confident delivery of their work. Staff in the department are skilled

and enjoys their work. A sense of community exists with the teams to deliver the best result for their

patients.

Structure

The internal audit provides some idea on the board of directors in terms of running the hospital. A separate

organizational chart detailing the staff and direct reports of the department is to be established. The

organizational chart listed is for the entire hospital.

39
 Figure 5.3: Org Chart

Conclusion: Good

The department is very small and it depends on other departmental services. The structure is like other

organizational structures. The important thing is the process between the departments affecting the business.

Skills

The current skill set of the staff fits with the current requirement. There is a high turnover of medical

personnel affecting the medical industry and this is compensated with tenured staff with mature skills to

help address the high attrition. It ensures the team has skilled personnel remain during their shift.

Conclusion: Can improve

Good skilled staff is essential to the department. With the turnover rate within the health industry, new staff

would have low skill set and only tenured ranks would have the right skills to do their work. The team has

40
some remaining good staff with a good number of new employees replacing resigned ones. The senior

members will still oversee other team members ensuring their work is done properly.

Shared Values/Superordinate Goals

In the company website, the words Altruism, Compassion and Excellence are part of the company Vision

and Mission. The three words coincides with the ACE name as an acronym. It makes the shared values easy

to recall.

Conclusion: Good.

The reflection of the shared values can be seen in all teams and employees living their values. Majority of

the department understand and know the shared values implemented in the work place.

5.5 Internal Factor Evaluation

The IFE or Internal Factor Evaluation table provides a summary of various strengths and weaknesses of the

company. The weights and ratings are given by the author and as an indication of priority to help formulate

the right strategy for the department.

5.5.1 Strengths

S1. Organizational structure

WEIGHT 10% Management is important in any organization.

Rating 3 There is a good higher management structure in place.

S2. Bench-marking

WEIGHT 20%The department has to be aware aas to what the competition is doing.

Rating 4ACE consistently monitors the competition.

41
S3. Awareness of manual

WEIGHT 19% Part of the advantage of being in an ACE hospital are the manuals.

Rating 3The department ensures that everyone is up to date with the manuals

S4. Certified occupational med doctors

WEIGHT 20% Competency is very important. If a patient is not handled well, word will spread throughout

the client company.

Rating 3The doctors of the department are board certified specialists.

5.5.2 Weaknesses

W1. Non-involvement in strategic planning

WEIGHT 10% The doctors of the department must be part of the planning process as they know what is

happening on a day to day basis.

Rating 2 The hospital maintains its policy of allowing only founders to make decisions.

W2. Weak Human Resource Department

WEIGHT 10%The number 1 resource of any hospital is its personnel.

Rating 2There is no Human Resource Manager

W3. Weak marketing

WEIGHT 20%The department relies on companies as clients. There has to be a dedicated marketing

team.

Rating 2There is no dedicated marketing team.

42
 Table 5.5: Internal Factor Evaluation Matrix
The Internal Factor Evaluation (IFE) Matrix
Strengths Weight(%) Rate Score
Organizational structure 10 3 0.30
Bench-marking 20 4 0.80
Awareness of manual 10 3 0.30
Certified occupational med doctors 20 4 0.80
Weaknesses
Non-involvement in strategic planning 10 2 0.20
Weak Human Resource Department 10 2 0.20
Weak marketing 20 2 0.40
Total 100 3.0

Strategic Issues Based on Internal Factors

The identified factors have the most impact in the strategy. The rating and scores provide an insight of the

preference and priority in addressing internal deficiencies and enhance their advantages. Strengths would

be a primary priority or address weaknesses that would complete the strategy. The IFE score of 2.69 is the

total sum of different factors, weights and ratings.

6. STRATEGY FORMULATION

In this section, various tools and data are gathered to create the right strategy recommendations fit for the

department. The IFE and EFE factors are primarily used for the SWOT analysis as well as the IE matrix.

As recommended in Strategic management books, the author follows the process of compiling the

recommended strategies from different tools and summary of strategies to find the best strategy for the

department. The author can also choose any strategies outside the recommendations if it will benefit the

department.

43
6.1 SWOT Analysis

The SWOT analysis provides a view of the external and internal factors to determine the right strategy for

the department.

Table 6.1.A: Strength Opportunity Strategy

STRENGTHS OPPORTUNITIES
O1 Company and health management
S1 Organizational structure organization partnership
S2 Bench-marking O2 Government regulation
S3 Awareness of manual O3 Work-related illnesses
S4 Certified occupational med O4 Working conditions
doctors

S.O. STRATEGIES

 The data from benchmarking should be acted upon. Marketing should be implemented based upon

this data. S2,O1

 Marketing will highlight the competencies of the doctors. S4,O1

Table 6.1.B: Strength Threat Strategies

STRENGTHS THREATS
S1 Organizational structure
S2 Bench-marking T1 Unemployment
S3 Awareness of manual T2 Tax Reform for Acceleration and
S4 Certified occupational med Inclusion (TRAIN) law
doctors T3 Immigration

S.T. STRATEGIES

 Market the fact that the doctors are competent. Despite lower income due to taxes, employees will

be taken care of and continue to contribute.

Table 6.1.C: Weakness Opportunities Strategies

WEAKNESSES OPPORTUNITIES
W1 Non-involvement in strategic O1 Company and health management
planning organization partnership

44
 W2 Weak Human Resource O2 Government regulation
Department O3 Work-related illnesses
W3 Weak marketing O4 Working conditions

 W.O Department doctors must be given the opportunity to be part of the planning process..

Strategies. W1,O1

 Marketing should make client companies aware that a good healthcare system minimizes work

related illness. W3.O3

Table 6.1.D: Weakness Threats Strategies

WEAKNESSES THREATS
W1 Non-involvement in strategic
planning T1 Unemployment
W2 Weak Human Resource T2 Tax Reform for Acceleration and
Department Inclusion (TRAIN) law
W3 Weak marketing T3 Immigration

W.T. STRATEGIES

 Human Resources should keep the staff satisfied in order to retain them. W2,T3

Grouping of SWOT Strategies

Shown are groups of strategies extracted from the different factors and specific strategic actions. The type

of strategy groups is from the recommended default strategies.

Market Penetration Strategies

 The data from benchmarking should be acted upon. Marketing should be implemented based upon

this data. S2,O1

45
  Marketing will highlight the competencies of the doctors. S4,O1

 Market the fact that the doctors are competent. Despite lower income due to taxes, employees will

be taken care of and continue to contribute.

 Marketing should make client companies aware that a good healthcare system minimizes work

related illness. W3.O3

Product Development Strategies

 Department doctors must be given the opportunity to be part of the planning process.. Strategies.

W1,O1

 Human Resources should keep the staff satisfied in order to retain them. W2,T3

Conclusion :

Based on the SWOT Analysis, the recommended strategies for the hospital are Market Penetration, Market

Development and Product Development Strategies.

6.2 Internal - External Matrix

The EFE and IFE Ratings are plotted in the IE matrix to determine the IE score. Each quadrant in the IE

matrix has corresponding strategies, which may be adapted as basis in the formulation of strategic action

plans. The IE Matrix result shows that the hospital is in quadrant V. Recommended strategies under

quadrant V includes Market Penetration and Product Development.

Table 6.2: Internal - External Matrix

TOTAL IFE RATING = 3.00

46
 Strong Average Weak
3.0 to 4.0 2.0 to 2.99 1.0 to 1.99

I II III
High
TOTAL EFE
3.0 to 4.0
RATING
= 2.20 IV V VI
Medium
2.0 to 2.99

VII VIII IX
Low
1.0 to 1.99

Quadrant IV has as its suggested strategies are market penetration, and product development.

6.3 Summary of Strategies

Table 6.3: Summary of Strategies

STRATEGY OPTIONS SWOT IE TOTAL

Forward Integration
Backward Integration
Horizontal Integration
Market Penetration X X 2
Market Development X 1
Service Development
Horizontal Integration
Joint Venture
Divestiture
Liquidation
Product Development X X 2

Conclusion :

47
Using SWOT, IE Matrix and the Summary of Strategies, the recommended strategies are Market

Penetration and Product Development.

7. RECOMMENDED STRATEGIC OBJECTIVES AND STRATEGIES

The recommended strategies and objectives were derived from the summary of strategies and SWOT

strategies that would provide the most impact for the company. It would address their strengths and

weaknesses to acquire the most opportunities and mitigate threats. Shown below are the recommendations

for this paper.

7.1 Recommended Revised Vision / Mission Statements

The vision and mission statements must have all the elements based on the recommended table. The new

Vision and Mission statements would hope to have some clarity on the company direction.

Current Vision Statement

48
 Advanced medical facilities in a multicenter global network

Care for the patient where and when he needed it most

Excellence in healthcare service and corporate governance

Recommended Revised Vision Statement

Vision: By 2021, ACEMC Department Laboratory Management shall be the best Industrial Medicine

provider with advanced Medical facilities and Training.

Table 7.1.A: Recommended Company Vision Evaluation Table

Parameter Yes / No Why

Does it clearly answer the the best Laboratory Service provider with advanced
question: What do we Yes Medical facilities
want to become?

Is it concise enough yet To be the most advance medical facilities

Yes
inspirational?

By being the best medical facility,

Is it aspirational? Yes

49
 Does it give clear Set to achieve by 2021.
indication as to when it Yes
should be attained?

Current Mission Statement

Advanced medical facilities in a multicenter global network

Care for the patient where and when he needed it most

Excellence in healthcare service and corporate governance

Recommended Mission Statement

Mission: The Department of Laboratory management supported by knowledgeable, trained and dedicated

laboratory staffs provide an efficient, reliable service using the most advance Medical Equipment for all

types of Patient Care needs achieving Excellence and Growth to build a strong Filipino community.

Table 7.1.B: Recommended Revised Company Mission Statement Evaluation Table

Parameter Yes / No If yes, which part of the statement

1. Customers Yes Hospital patients

2. Products & services Yes Lab medical equipment

All types of patient care provided by the most

3. Markets Yes
advance labs

4. Technology Yes Any advance lab equipment

50
 5. Concern for survival, Ensuring excellence and growth for the survival of
Yes
growth, profitability the company

6. Philosophy Yes Excellence and Growth in the medical field

7. Self-concept Yes Laboratory service health care provider

Growing with the employee of the company while

8. Concern for employees Yes
pursuing excellence

9. Concern for nation Building a strong Filipino community

Yes
building

7.2 Recommended Strategic Objectives

There is several information would be needed to set a financial objective. In this paper, the best course of

action for a specific department is using Key Performance Indicators to increase number of patients and

target good customer satisfaction. These indicators would translate into a good revenue stream and increase

the hospital reputation.

Objective No. 1: Increase the number of patients by 20% annually.

Objective No. 2: Maintain a 4 satisfaction rating month on month.

7.3 Recommended Strategies

Shown below are the specific strategies relative to the departments SWOT analysis. The company would

only need at least 1 active strategy to meet the two objectives.

Strategy 1 – Intensify marketing efforts to increase percentage of market share.

Strategy 2 – Introduce programs that will upgrade quality of service through listening to department doctor

inputs and retention of experienced staff.

***END OF PAPER***

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