The Problem At Partners Healthcare System Essay
The Problem At Partners Healthcare System Essay
Partners HealthCare System
Introduction
Partners HealthCare System is a very large health care provider around Boston. In order to increase efficiency, reduce errors, and maintain patient records, they implemented an electronic medical records system (EMR). In addition, a Computerized Provider Order Entry (CPOE) was installed to help prevent errors for writing prescriptions and ordering lab tests (Davenport, 2013, p. 216). Both of these systems have been very beneficial to Partners, but several key problems have been identified. The current CPOE is a one size fits all approach to Partners, which serves over 6,000 practicing doctors and physician groups (Davenport, 2013, p. 217). Currently, when doctors enter prescriptions into the CPOE, too many warning messages appear. Many doctors ignore them and the more experienced doctors are getting frustrated with the system.The Problem At Partners Healthcare System Essay
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Problem
The problem at Partners HealthCare System is well-defined and concise. The CPOE has been useful but it needs to be reevaluated to make sure it is being used properly. Doctors are seeing too many irrelevant warnings that do not apply to them and are therefore ignoring most messages. In fact, studies have shown that override rates have been 95% in certain cases (Darves, 2013, para. 3). If the warnings are ignored or overridden, the CPOE will no longer be effective.
There are several different options to solve this problem. A ‘Do not ask me again’ button could be included in the program to allow doctors to select which warnings they do not want to see. Doctors could also be allowed to customize which warnings they wish to see.
According to government sources, U.S. expenditures on health care in 2009 reached nearly $2.4 trillion dollars ($2.7 trillion by the end of 2010). Despite this vaunting national level of expenditure on medical treatment, death rates due to preventable errors in the delivery of health services rose to approximately 98,000 deaths in 2009. To address the dual challenges of cost control and quality improvement, some have argued that what is needed is an integrated electronic medical record (EMR) system and associated information technology-enabled processes. While the information systems currently available may meet the needs of the industry, the question remains as to what is required within and by the health care services organization to achieve a satisfactory response to these dual challenge The Problem At Partners Healthcare System Essay
According to government sources, U.S. expenditures on health care in 2009 reached nearly $2.4 trillion dollars ($2.7 trillion by the end of 2010). Despite this vaunting national level of expenditure on medical treatment, death rates due to preventable errors in the delivery of health services rose to approximately 98,000 deaths in 2009. To address the dual challenges of cost control and quality improvement, some have argued that what is needed is an integrated electronic medical record (EMR) system and associated information technology-enabled processes. While the information systems currently available may meet the needs of the industry, the question remains as to what is required within and by the health care services organization to achieve a satisfactory response to these dual challenge
Partners Healthcare is considering the introduction of real assets into the organization’s portfolio. The analysis will demonstrate the effects of having one risky asset and one risk-free asset in a portfolio. Our analysis will also show that the introduction of real assets can decrease the risk of the hospital’s portfolio. Each hospital in the healthcare system can determine the appropriate portfolio mix based on their desired expected level of return and risk they are willing to accept.The Problem At Partners Healthcare System Essay
I. Mixes of STP & LTP
Suppose different hospitals within the Partners system chose different mixes of the “risk-free” STP (short term pool) and the baseline LTP (long term pool), whose future…show more content…
STP) and one risky asset (i.e. US Equities) and the expected return and risk are also linearly related to the weight in the risky asset. The highest Sharpe ratio from these risk-return opportunities available is also where 90% of the portfolio is comprised of STP and 10% of US Equities. II. Optimal Portfolio Combinations On Exhibit 5, plot the curve for the risks and expected returns of the optimal portfolio combinations in the 4 asset caste detailed in Exhibit 6, namely: US Equities, Foreign Equities, Bonds, and REITs. Do the same for the 4 asset case shown in Exhibit 7: US, Foreign, Bonds, and Commodities. Do the same for the 5 asset case detailed in Exhibit 8: US, Foreign, Bonds, REITs, and Commodities. How much does each of the “real assets” improve the potential opportunities for the hospitals investing in the LTP? What are the important factors that determine the degree of improvement? See Exhibit 2a for the curve for Exhibit 5, Exhibit 2b for the curve for Exhibit 6, Exhibit 2c for the curve for Exhibit 7, and Exhibit 2d for the curve for Exhibit 8. Exhibit 2a provides the baseline LTP which shows the highest Sharpe ratio that can be achieved without the introduction of a “real assets” is 1.01. The allocation of 23.4% in US Equities, 40.4% in Foreign Equities, and 36.2% in Bonds would result in an expected return The Problem At Partners Healthcare System Essay
The Harvard business review has published the Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management Case Study. Like all HBR case studies, the Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management Case is designed and drafted in a manner to allow the reader to experience a real-world problem and solve it accordingly. The case study, like other HBR case studies, will help the reader and students develop a broader, and a clearer understanding of the business world and dynamics.
The Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management Case is based on a current managerial and strategic problem being faced by the organization, which must be solved tactfully to allow progression, as well as maintain a competitive position. This paper is written to facilitate the case solution for the Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management Case Study.The Problem At Partners Healthcare System Essay
The case solution for the Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management Case Study first identifies the central issue that is elaborated on throughout the case. The case solution then analyses the case through relevant strategic models and tools including the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis. This analysis is to help in the identification of a feasible strategy and solution for the Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management Case Study. Alternative solutions are also proposed in the case solution, primarily because alternative solutions often act as contingency plans.
2. PROBLEM IDENTIFICATION
2.1. Harvard business school case studies
All case studies published by the Harvard business review comprise of a central problem that is faced by the protagonist. This problem mostly holds implications for managerial and strategic directions of the company. For readers and students of HBR case studies, it is critical to identify the problem that the Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management faces. This problem is usually hinted towards in the introduction of the case and develops along the way.The Problem At Partners Healthcare System Essay
As a result, for solving the Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management case, it is essential to read the case study thoroughly. The identification of the problem correctly is vital for undergoing the analysis rightly, and for developing relevant solutions for the Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management Case Study. It is also essential to identify all the appropriate parties that are being impacted by the problem as well as the decision. The correct problem identification will ensure that all the solutions developed during the case analysis of the Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management Case Study are applicable and pragmatic.The Problem At Partners Healthcare System Essay
EXTERNAL ENVIRONMENT ANALYSIS
The external environment analysis is needed for the Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management Case Study to make sure that it actively, and proactively responds to the macro-environment. The macro environment or the external environment for the Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management Case includes those factors which are not in control of the business or the company directly. As a result:
The Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management cannot influence these factors in its favour, and in contrast, these factors directly affect the operations and workings of the company.
As a result, Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management must make sure to continually assess and review the external environment to make sure that it responds to external factors, and take them into account, during strategic decisions, and strategy devising.The Problem At Partners Healthcare System Essay
Businesses like Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management make use of strategic model tools continually to make sure that they are aware of the external environment.
These include tools like the pestle analysis and Porter’s five force model, as well as strategic group analysis and pentagonal analysis, to name a few.
The external analysis for the Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management Case Study will assess and will apply the strategic models and tools to review the business environment for the company.PESTEL Analysis
3.1.1. Political
Political factors and elements can have a direct and indirect impact on the business. This is seen through the Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management Case Study.The Problem At Partners Healthcare System Essay
3.1.1.1. Policy Makings
Policymakers for the Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management Case are in all likelihood to intervene in the business surroundings.
Commercial restrictions and political stability are additionally integral factors that will determine the success or failure of Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management.
3.1.1.2. Taxation
Tax policy will influence the cost of doing business for Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management.
An increase in organization taxation (on business profits) has a similar impact as an expansion in expenses.
Organizations can pass a portion of this increase on to shoppers in more expensive rates, yet it will likewise influence the bottom line of the business.
3.1.1.3. Government Support
The government helps organizations in two primary ways: monetary help and regulatory.The Problem At Partners Healthcare System Essay
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management can use government assistance and grants for purposes of growing the business, advancement, exporting, and innovative work.
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management can also be impacted by when Governments modify regulations and laws.
3.1.1.4. Political Stability
Lack of political stability in a country impacts business tasks. Political stability is particularly essential for the organizations which work globally, such as Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management.
A forceful takeover could oust a legislature. The takeover could prompt mobs, plundering and general issue in nature. These disturb business tasks for Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management.The Problem At Partners Healthcare System Essay
Purchasing political risk insurance is a way for Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management to oversee political hazard. Organizations that have worldwide activities utilise such as insurance to lessen their risk presentation.
The soundness of a political framework can influence the attractiveness of a specific nearby market for Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management.
3.1.2. Economic
The economic factors are one of the most important of PESTEL factors and can influence Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management in several ways.
3.1.2.1. GDP
Economic components have the most evident effect on the profitability and overall appeal of Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management.The Problem At Partners Healthcare System Essay
Even though GDP per capita is a useful economic factor, GDP per capita gives just a fractional perspective on the economic factors that may influence Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management.
Higher GDP leads to higher disposable income and hence higher sales for Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management.
3.1.2.2. Inflation
Higher inflation will disintegrate the purchasing power of the consumer and the shopper
Higher inflation will also harm the costs of raw materials and other inputs that are utilised by Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management.
3.1.2.3. Interest Rates
Fluctuations in interest rates may translate into higher or lower costs for the purchase or sale of items and administrations provided by Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management.
Higher interest rates hurt the disposable cash of consumers.
3.1.2.4. Unemployment Rate
A high unemployment rate is also unadvisable as it dissolves dispensable income of consumers, and will harm Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management ’s position.
The high unemployment rate will lead to lower sales for Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management and impact its overall profitability and revenues.The Problem At Partners Healthcare System Essay
3.1.2.5. How can the Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management decrease the risk of economic instability?
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management can work towards building economies of scale
Maintaining business costs and controlling the final price of the product can also help Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management fight economic instability
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management can also work towards building a sustainably managed workforce
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3.1.3. Social
Social influences will stem from social components of the macro environment. Under the PESTEL Analysis, they can influence Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management in several ways:
3.1.3.1. Social patterns and consumer behaviour
Social patterns affect work trends and patterns and are directly related to the behaviours of consumers.
Social patterns also have a direct influence on buyer tastes and inclinations, and the specific kind, structure, and volume of interest for an item or service.
3.1.3.2. Social patterns and changing consumer needs
The checking of social patterns will enable Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management to reposition its items or administrations to meet the changing desires and needs of consumers.The Problem At Partners Healthcare System Essay
3.1.3.3. Social trends in education
Social trends of higher education have allowed firms like Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management to have access to a pool of higher skilled talent – but at the same time, also face a more criticising consumer base.
Higher education has also made consumers more aware of different product offerings by companies like Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management.
consumers are also more educated and knowledgeable of different substitutes of a product, as well as become more readily available at different touchpoints.
3.1.3.4. Social patterns make companies more consumer-centric
Companies like Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management are expected to become more consumer-centric than product-centric.
Similarly, Market segmentation and consumer grouping are dynamically moving towards measures of psychographics and lifestyles to understand the consumer more.
3.1.3.5. How can Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management use social aspects for growth?The Problem At Partners Healthcare System Essay
Use consumer-centric means of segmentation and targeting.
Use consumer-oriented and consumer-based marketing – which use emotional appeals to influence consumers.
Make products more accessible at different touch points common to target consumers socially.
3.1.4. Technological
The technological factors can influence Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management in several ways:
3.1.4.1. Innovation
The quick pace of technological change at Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management may be driven through innovation.
Business leadership at Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management tries to push the limits of present limitations.
3.1.4.2. The advent of the internet and online retailing
The expansion of the Internet and online business has discarded many intermediaries. Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management can communicate and retail directly to the consumers now, or through modern intermediaries such as eBay as well, for example.The Problem At Partners Healthcare System Essay
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management may also use current social networks to retail and use e-commerce to boost sales.
3.1.4.3. Social media and business growth
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management can make use of social media to interact and reach with consumers
Social media can also be used to reach the target market audience more effectively
Social media is cost-effective and strategically more influential for Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management
3.1.4.4. Improved value chain network
For Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management, technological innovation can be utilised to build on competitive advantage through several different ways.
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management can incorporate less expensive production, improved access to clients, improved marketing, improvement in product quality, and increased levels of business intelligence than the competition.
3.1.4.5. Managing technology and the future for Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management
To flourish in a business world that is quick paced and receptive to innovative change, Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management must stay cautious.The Problem At Partners Healthcare System Essay
It must be always be updated on any technological developments in the business and industry.
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management should weary of how the company are probably going to influence its future attractiveness and profitability.
3.1.5. Environmental
For Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management, the environmental aspects of the PESTEL analysis may include:
3.1.5.1. Environmental stability and business standards
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management may be expected to incorporate maintainability standards into their business methodologies and to help resource allocation choices.
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management may also be subject to environmental laws – which will impact and guide its operations to become more environmentally friendly.
3.1.5.2. Environmental stability and budget allocation
Leadership in the Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management must measure the connection between natural activities and budgetary execution.
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management also strategically decides and assesses if the organization have been estimating the monetary effect of natural and social activities.
3.1.5.3. Environmental sustainability
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management also distinguishes and differentiates explicit zones of concern and impediments to the coordination of environmental sustainability into corporate performance and strategy
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management also gives explicit direction concerning how organizations can push toward a superior reconciliation of ecological and social activities in their basic leadership procedures and tasks.
3.1.5.4. Environmental sustainability and business growth
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management may use environmental issues to adjust financial, natural and social performance.
Concerns towards the environment will enhance the business image for Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management.
Environmental sustainability within business goals and strategy will also reflect corporate responsibility on the part of Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management.
3.1.5.5. Environmental sustainability and improved consumer relations
Consumers will be more inclined towards the use of environmentally sustainable products.
Environmental sustainability in operations works towards improving the bottom line and overall profitability for the business of Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management.
Improvement of cost management and operations will be observed in the business as well.The Problem At Partners Healthcare System Essay
3.1.6. Legal
Legal components can influence Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management directly, and can likewise influence the instruments through which an organization buys its stock or connects with the client. The Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management should be mindful, for example, of the following legal aspects:
3.1.6.1. Labour law
Labour law refers to the guidelines in regulations that set up minimum and benchmark conditions.
These include identifying with the work of people.
Labour laws include aspects of minimum working age, least time-based compensation, etc.
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management must be mindful of these laws in routine business tasks such as hiring, for example.
3.1.6.2. Discrimination law
Under the discrimination law, Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management must ensure to avoid episodes of unequal or uncalled for treatment based on an individual’s age, inability, sex, national source, race, religion, and sexual orientation.
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management should train its human resource management team in ensuring that there is no:
Unequal hiring
Discrimination in recruitment
Internal discrimination in talent management
Bias in training opportunities
Unfair compensation systems
Prejudiced promotions and succession management
3.1.6.3. Health and safety laws:
Under this, Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management is required to give a protected work environment to their workers.
Working environment security and wellbeing laws build up guidelines intended to dispense with individual wounds and injuries from happening in the work environment.
all operations of Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management should be designed to physically and emotionally safeguard and protect the employees and the labour force employed
3.2. Porter’s five forces
The five forces identified in Porter’s model can effect Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management ’s ability to serve its clients and make a profit.
A change in any of the five forces may regularly require a business unit from Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management to reassess the market place given the general change in industry data and dynamics. The general industry appeal and attractiveness.The Problem At Partners Healthcare System Essay
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management should apply and centre their skills, plan of action or business models to accomplish profits above the business average. This may be done in multiple ways, each distinguished in their application to the forces individually as is elaborated below:
3.2.1. The threat of new entrants
3.2.1.1. Market and industry share
New entrants to an industry bring new potential and a choice to increase the market share and overall share of the pie that puts pressure on price, costs, and the investment price essential to compete.
For Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management, particularly while new entrants are diversifying from different markets into the chief industry, they will be able to leverage existing talents and cash flows to shake up the opposition.
3.2.1.2. Limitation on earning expectation and capability of firms in an industry
The threat of entry in the industry, consequently, puts a cap at the earning capacity and profit capability for Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management.
While the threat of new entreaty is high, Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management should maintain their prices or increase funding and investment to discourage new competition.
3.2.1.3. The risk to new entrants because of high entry barriers
The risk of entry in an industry depends upon on the peak of entry barriers and limitations that are a blessing for players such as Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management and on the response that new entrants can count on from existing players.
If entry barriers are low and novices count on little retaliation from the entrenched competition, the chance of entry is high, and profitability for Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management will be moderated.
It is the danger of entry, not whether the entry of new players takes place that holds down profitability.
3.2.1.4. Some barriers to entry for new entrants in favour of Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management :The Problem At Partners Healthcare System Essay
Capital requirements: a strong barrier to entry as new entrants will require strong financial and resource cushioning for operations to take off and be sustained.
Economies of scale: a strong barrier to entry as existing players in the industry operate with high economies of scale, which new entrants will take time to achieve.
Product differentiation: the strong barrier of entry if products within the industry have high levels of differentiation on which they operate and approach customers.
Access to distribution: a standard barrier to entry since new entrants will have equal access to the retailers and distributing agents within the industry.
Customer loyalty to established brands: a strong barrier to entry since customer loyalties and perceptions are emotionally built and strongly enforced as long as the brand continues to deliver on its core promise and quality.
3.2.1.5. What can Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management do to face this challenge?
Build and invest in marketing to distinctly establish a point of differentiation in customer perception as well as strengthen customer loyalty.
Invest in research and development to make sure that it continues to have competitive differentiation from other players at all times.
Focus on building economies of scale in production and sales.
3.2.2. The threat of substitute products or services
3.2.2.1. Substitute form
There are always different alternatives or substitutes for various products that lead an industry.
These substitutes may be direct or indirect– the direct substitutes are the same category products. produced by different players; indirect substitutes are the ones from different product categories that can replace the product for Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management.
3.2.2.2. Switching cost to substitutes for consumers
Switching costs for direct substitutes is not very high for consumers.
The per-unit-volume prices may be higher or lower.
This makes the threat of substitute high.
3.2.2.3. Substitute and product benefit
Alternatives to the product or substitutes may not be able to provide the same benefits
May often lead to additional costs incurred.
Switching costs towards alternatives becomes higher, and consumers may not switch to substitutes.
This, in turn, will make the threat of substitutes low.
3.2.2.4. Substitutes and consumer behaviour
From the point of view of the consumer, there are some differences between the ways different products of the same or similar category are used, but many consumption decisions are a matter of personal taste – this makes products vulnerable to the threat of other substitutes.
Overall, the threat of substitutes is assessed to be moderately high.
3.2.2.5. How can Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management combat the threat from substitute products?
Focus on delivering consistently high quality.
Focus on maintaining strong consumer relationships.
Integrate strategic marketing to form an emotional connection with the consumers and strengthen consumer loyalty.
Invest in pop up stores owned by the company to stock the Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management brand exclusively, and integrate it with brand characteristics and personality to attract consumers.The Problem At Partners Healthcare System Essay
3.2.3. Bargaining Power of Buyers
3.2.3.1. Who is the buyer?
The buyer for Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management is not necessarily the group that consumes the product – but rather refers to the group of customers that purchases the product from Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management to either distribute further, retail it, or even consume it.
Hypermarkets and supermarkets, as well as independent retailers and distribution agents to end consumers, are the core buyers for Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management that make up the market’s volume.
Supermarkets and hypermarkets, along with many food chains that are concentrated, which increases the buyer power.
Products are stocked with buyers and retailers by Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management based on consumer demand.
3.2.3.2. Buyer power and costs
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management will not experience switching costs for switching buyers.
Multiple product offerings by buyers also increase buyer power.
3.2.3.3. Retail product differentiation
Products offered by retailers are differentiated based on several characteristics – not only reliant upon product characteristics but also consumer segment characteristics. Because of this, retailers are expected to offer a wide range of the same product category. This works towards negating and weakening the overall buyer power.
Buyer power is assessed to be moderate to high.
3.2.3.4. What can Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management do to ensure risks against high buyer power?
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management can focus on differentiating its product and increasing its demand with the end consumers through different marketing tactics, this will increase the demand of the product with different buyers, and will work towards moderating buyer power.
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management should employ economies of scale to manage costs of production. If it offers products at moderate prices to buyers, it will again be able to attract a large number of buyers for its product, and in this way, will be able to break off the high bargaining power.
3.2.4. Bargaining Power of Suppliers
3.2.4.1. Who is the supplier?
Supplier power refers to the power that is held by the suppliers in terms of pricing of the raw materials and inputs used for the business.
3.2.4.2. Sources of production for Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management
The main sources for production are the following:
Supplies from vendors – sourcing from independent suppliers.
Own manufactured equipment and resources: this model is practised by companies that are well integrated backwards and forwards.The Problem At Partners Healthcare System Essay
3.2.4.3. Independent suppliers
For Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management, there are numerous independent suppliers within the industry, and all comprise of a few pretty small operations that lead to weakened overall supplier power.
Independent sellers and suppliers, however, can locate different opportunities and invest in alternative markets – which can be a challenge for Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management.
3.2.4.4. Supply quality and business dynamics
Suppliers can integrate forward into the decision making and business dynamics themselves as well.
Also, to the buyers, the quality of the supplies and the raw materials is of utmost importance.
However, in an industry with a high number of suppliers, Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management can switch to different suppliers at any time without experiencing any costs of the business.
Overall bargaining power of suppliers is assessed to be moderate.
3.2.4.5. How can Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management deal with the challenge?
Get contracts with multiple suppliers and get resources and raw materials from them accordingly.
Invest in manufacturer controlled production facility to maintain consistency in quality.
3.2.5. Competitive Rivalry among Existing Firms.
3.2.5.1. Nature of fragmentation
The market is highly fragmented, which makes it more competitive.
The market is never too concentrated, and as a result, it has players of varying size of operation – from very small to big players.
3.2.5.2. Brand management
Producers have begun to make use of brand management techniques and contemporary merchandising by launching bold brands, label designs and marketing campaigns to become more identifiable to the public.
3.2.5.3. Diversification
Purchasers and buyers have a wide range of products to choose from, with relatively low switching costs. These factors tend to intensify rivalry.
Though players in the industry may off niche or premium products, they also continue to operate in the mass markets at large, which again leads to high competition.The Problem At Partners Healthcare System Essay
3.2.5.4. High business costs
The high fixed cost and the high bargaining power of the buyers, which can lead to the lowering of the prices from manufacturers add to the highly competitive nature of the industry.
The overall rivalry is assessed to be high.
3.2.5.5. How can Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management combat rivalry and competitive forces of the industry?
Focus on research and development to identify market niche as well as to be able to add differentiating factors t its products. This will increase its shield against influence from competitive forces and their actions.
Build a strong and loyal consumer base by focusing on quality and marketing strategies.
Focus on capturing new markets – in the same region as well as new regions to avoid saturation of resources in one market only.
3.3. Pentagonal analysis
3.3.1. The threat of new entrants
3.3.1.1. Restriction into industry
The ease of entry into the industry is restricted.
There are high barriers to entry.
These are government policies, consumer loyalty, brand differentiation etc.
3.3.1.2. Switching costs for consumers
The high number of direct and indirect alternatives available also make Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management vulnerable to the high threat of substitutes.
Low to negligible switching costs experienced on the part of the consumers and buyers.
3.3.1.3. Profitability
New entrants are attracted to the industry because of high profitability.
If there are high barriers to industry, the industry will continue to maintain high profitability
Low barriers to entry will result in a lower average of industry profits.
Lower entry barriers will also lead to higher operational costs because it will increase the intensity of competition within the industry.
3.3.2. The threat of substitute products/services
3.3.2.1. Increased competition
High threat of substitutes.
This is because of higher competition.
The higher competition leads to imitation of products and systems.
This imitation makes substitute products similar to each other – as much as possible.
3.3.2.2. The offering of similar benefits
Consumers readily adopt alternative and substitute products.
They offer similar benefits.
They have similar functional benefits and features.
3.3.2.3. Low costs of switching
Consumers often experience a low cost of switching between substitute products.
Low switching costs are also developed because competition often produces at lower operational costs.
Low switching cost results in lower overall product prices for the consumer.
Industry players, therefore, also start competing on aspects of price.
3.3.3. Bargaining power of buyers
3.3.3.1. Market fragmentation
The industry in which Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management operates is highly fragmented.
It has numerous local and international players.
It is not very likely for players in the industry to integrate forward into on-trade or retail businesses.
This results in the players experiencing high bargaining power of the buyers from the market.
3.3.3.2. The concentration of retailing agents
It also results in a high concentration of individual retailing agents.
Retailing is also done through hypermarkets and supermarkets.
3.3.4. Bargaining power of suppliers
3.3.4.1. Backward integration by producers
Backward integration from producers is more commonly observed and seen,
Many players in the industry have their own production facilities for raw materials as well.
The industry has seen a large number of players needing to outsource resources and raw materials.The Problem At Partners Healthcare System Essay
3.3.4.2. Outsourcing raw materials
This outsourcing is done by third-party manufacturers.
A large number of suppliers present lowers the bargaining power of suppliers.
Players in the industry have low switching costs between suppliers.
Suppliers usually are contracted by producers.
Producers may change suppliers frequently.
3.3.5. Industry rivalry
3.3.5.1. Intensity of competition
There are strong competition and rivalry in the industry.
There is a high number of players.
All players provide similar products.
Switching costs for consumers is low, which increases competition.
3.3.5.2. Differentiation
Platers try to differentiate products on different aspects.
Functional aspects and appeals for all products across the industry remain the same.
Competitors and players use emotional appeals, and modern brand management techniques for differentiation.
Industry players try to gain consumer loyalty by developing strong emotional bonds and ties.
Figure 1 Pentagonal analysis for Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management Figure 1 Pentagonal analysis for Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management
3.4. Placement of the business along the industry life cycle
3.4.1. Identifying where Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management is on the Industry Life Cycle Curve
Identification of the place and placement on the industry lifecycle is important as it will help Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management make important decisions and strategies for the future.
3.4.1.1. Strategic decision making
Expansionary plans and investment decisions.
Decide on various marketing strategies and tactics for targeting different consumer segments to establish and establish the product.
Selection of new geographic regions for expansion and exploration of new consumer bases.
3.4.1.2. Budget allocation
Resources and alternative routes for future growth and establishment.
Exploration of different diversification options.
Figure 2 PLC Placement along the Industry Lifecycle curve Figure 2 PLC Placement along the Industry Lifecycle curve
3.4.2. Introductory stage
3.4.2.1. Firm strength
The industry is in the infancy stage.
Firms are generally small, entrepreneurial and compact during this stage.
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management will be focused on research and development during this phase.
3.4.2.2. Financial Position
Looking for investment and funds for growth.
3.4.2.3. Nature of product
Products offered during this stage re doubtful as success and life of the product is unproven and not known.
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management will use a focused strategy during this phase to emphasise the uniqueness of the product.
The product or the brand will have a small market of consumers – known largely as early adopters
Marketing strategies adopted by the company will focus on generating awareness of the product and therefore, will largely use a functional appeal.
3.4.3. Growth stage
3.4.3.1. Financial position
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management will require high capital during this stage.
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management will need investment and funds for launching strategic marketing campaigns.
Funds will also be required for fuelling physical growth of the company in the form of investment in equipment and property to facilitate growth.The Problem At Partners Healthcare System Essay
3.4.3.2. Growth factors
Companies may increasingly encourage economies of scale because of standardisation experienced during this stage.
Consumer feedback from the introductory phase will be incorporated, and research and development will be conducted to make appropriate changes in the product design and offering.
Success in this stage for Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management will lead to growing demand, which in turn will fuel sales demand.
3.4.3.3. Nature of Product
Products in this stage have high growth and high market share.
There is also increasing competition and rivalry in the market – new entrants will enter and compete looking at the success of products during this stage.
3.4.4. Maturity stage
3.4.4.1. Sales and growth
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management will experience slowing growth during this stage of the industry life cycle.
Sales will be expanding, and earning will be growing – however, the rate will be slower than the growth stage.
Competition from late entrants will be present, and obvious during this stage – who will all try to fight for Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management ’s share of the market.
3.4.4.2. Strategic Marketing
The marketing strategies must now focus on building loyalty.
Marketing tactics must be strong and should focus on the uniqueness of the product. Increasingly emotional appeals may be used.
3.4.4.3. Firm size
Firm size is generally larger and is more dominant over players if successful- compared to growth stage.
Innovations continue but are stable and not radical.
3.4.5. Decline stage
3.4.5.1. Industry changes
New technological changes and upgrades may make an industry obsolete.
Players within an industry may also fall back and lose on market share if they do not keep up with innovations, and investment in research and development.
3.4.5.2. Sales and Competition
Sales during this phase are decreasing at a high rate.
Competing players also exit the industry because of the changes and low demand.
3.4.5.3. Surviving in the decline cycle
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management may also experience mergers and acquisitions during this phase.The Problem At Partners Healthcare System Essay
Diversifications are also most common during this phase as a means of survival.
3.5. Strategic Group Analysis
3.5.1. Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management and strategic group formation
The strategic group analysis will look at an industry’s players’ situations in focused conditions and scenarios.
It will assess different players competing with Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management through the basic strategic factors that will decide an organization’s profitability, similar to how the profitability will also be impacted and influenced by the competitive nature of the industry.
The strategic group analysis will describe the procedures of every single noteworthy competitor of Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management along different strategic dimensions.
These dimensions of comparison differentiate players into strategic groupings and must be selected as the basis of comparison by taking into account industry structure, productivity factors, and the venture issues being tended to.
3.5.2. Different aspects of strategic grouping
Key strategic groupings of players within an industry can be made based on numerous different aspects, such as:
Specialization
Brand identification
Push versus pull strategies
Channel determination
Product quality
Technological position
Vertical joining
cost position
Service
Price strategy
Financial or working influence
Parent organization relationship
Government relationship
Despite the various aspects available for comparison of competing players, it is often important to differentiate strategic groupings of players of aspects of how they compete with each other, and on aspects of where they compete as well
3.5.3. Procedure for strategic group analysis for Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management
Collect results of the player’s analysis.
Determine aspects of comparison for strategic groupings.
Distinguish the players and pick the most important aspects that separate the players into strategic groups comparing to the issues being tended to.The Problem At Partners Healthcare System Essay
Dimensions may include price strategy and product quality.
Group the players: position Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management and rivals along with the matrix.
Evaluate group mobility and direction. Assess the key purpose of individual organizations competing with Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management, similar to assessing industry patterns and barriers to entry/exit to be able to decide potential developments inside and between groupings.
3.5.4. How will strategic group planning help Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management
For Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management, strategic group analysis is important because it will:
3.5.4.1. Strategic industry dynamics
Help in reviewing the strategic dynamics and shifts in the industry.
Identify the closest competition and competing players for the business; help in assessing the strategic direction of these competing players; and lastly, aid in developing strategies to stay ahead of the competition.
3.5.4.2. Assessment of market position
The strategic group analysis is also important for Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management because it will assist in analysing the current market position of players, as well as help in assessing future strategic moves and directions of the competition in the market.The Problem At Partners Healthcare System Essay
Assists in evaluating and identifying different underlying factors that will influence the company’s profitability.
Makes use of standard comparison aspects between different players in an industry to group them as per strategic directions as well as strategic dimensions.
3.5.4.3. Identification of barriers to entry in an industry
Different strategic dimensions along the matrix of strategic groupings are often characterized by barriers to entry and exit along the strategic groups’ dimensions, as well as by mobility barriers.
These barriers make it difficult for companies to move along, and in between different strategic dimensions – often forcing it to stay in place with the same competition.
3.6. Scenario planning
Scenario planning for Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management’s strategic direction will take form through speculation and contingency form – methods used by the military for strategic planning and direction.
3.6.1. Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management ’s Utilization of Scenario planning
For Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management, scenario planning comprises of making suppositions of what’s to come, of what will be and how the business condition will adapt, fluctuate, change, and respond to the future conditions, and changes in the futuristic strategic planning.
3.6.1.1.1. Identify the driving forces of the business:
Changes in the macro environment
Changes in technology
Changes in the economic trade system
Changes in production methods
Changes in consumer demands and tastes
changes in technology and economy
3.6.1.1.2. Identify basic vulnerabilities:
After Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management has identified the possible uncertainties of the macro environment, Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management should decide on any two only. These can be:
Changes in technological advancements and developments. These changes can be in the form that the industry has progressed to install more modern and contemporary technological developments.
Changes in consumer demands and needs.
These two uncertainties of the future are those that will have the largest impact and influence on the business.
3.6.1.1.3. Develop a scope of conceivable situations:
Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management will now be able to place these two uncertainties along a matrix.
Depending on the intensity and direction of the uncertainties and vulnerabilities, the business will be able to chalk out four possible scenarios as probable plans of action for the future. For Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management, these can be:
Install new technology, or update current technology to be on par with new technology.
Do market research.
Engage in innovative marketing to influence consumers.
Change vertical and backward integrated systems to ensure in-house or out-house production of technology to stay ahead of the competition.
3.6.1.1.4. Discuss the suggestions:
Each scenario should be discussed in detail.
Possible strategic direction and responses for each scenario should be developed.
Realignment of business goals and direction, as well as a mission during each scenario, should also be done to ensure future resilience.The Problem At Partners Healthcare System Essay
4. ANALYSIS OF RESOURCES AND COMPETENCES
This inner analysis and assessment of Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management decide the centre skills based on the resource based view (RBV) of the premium company.
Utilizing its core capabilities and capacities, Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management can maintain a competitive distinction, and leadership over other local as well as international players in the industry.
In the VRIN analysis and assessment, Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management makes use of its core capacities to strengthen its worth and the to continue to deliver the promise of consistent quality and taste to consumers – as well as guarantee futuristic and long term gains in the industry.
The following section presents a brief analysis of the VRIN strategic tool as it is applied to Partners Healthcare System PHS Transforming Health Care Services Delivery Through Information Management and its impact on the strategic direction. The Problem At Partners Healthcare System Essay
