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STRATEGIC MANAGEMENT 1ST
ASSIGNMENT
SUBMITTED B Y:
ABDUL Q ADEER ALI N AWAZ M ANSOOR MOHAMMAD ABDULLAH
E-44 E-43 E-11 E-37
SUBMITTED TO :
SIR NADIR
SESSION:
MBA – 2010-2012
QUARTER:
6TH
th SUBMISSION DATE: 27 JAN, 2013
INSTITUTE OF MANAGEMENT SCIENCES UNIVERSITY OF BALOCHISTAN QUETTA
Case Study: Bloomington Hospital
Vision Statement: In our community where human needs and human resources are found in abundance, we seek to partner with others in closing the gap by providing a meeting place to bring them together with compassion observed and dignity preserved, for healing, health and hope
Mission Statement: In cooperation with others in the community, Volunteers in Medicine provides the following services without cost to the medically underserved in Bloomington Monreo County:
Easily accessible, quality primary and Secondary Care Health facility.
Treatment for both acute and chronic conditions.
Introduction and implementation of Cardiovascular Surgery.
Objectives: Strategic Objectives: Hospital’s consideration of beginning an open heart surgery program that would attract
referrals from physicians not only in Bloomington but also through out the area south and west of Monroe County.
Marketing Objectives: As the hospital is itself referral physician so the patients those used to be referred to other hospitals will now be referred to itself. And this will be the only hospital in the Bloomington that will also attract the patients fro other physicians.
Financial Objectives: Through implanting the open heart surgery the institute will also gain reasonable income that can cover the overall expenses of this surgery, including doctors’ costs etc. The
boards information was that the average price for a triple bypass procedure, a commonly used standard was $60,000, that would not only fulfill the debt amounts but also the management.
SWOT Analysis Strengths: The Hospital itself was a referral center that would treat the patients in the same hospital as before they were referred to other hospitals. The Blooming hospital is the only hospital in the area offering the cardiovascular surgery that would not loose any of the patients from this region as before they were referred to other institutes.
Weaknesses:
The Bloomington hospital while introducing the cardiovascular surgery also faced some of the issues which are the real weaknesses of the hospital such as:
The hospital did not specifically compete with Columbus Regional Hospital for secondary care services or with other specialized hospitals in the area.
For the expansion for the new surgery a pediatric and neonatal intensive care unit, expansion of emergency department and operating room space and additional medial surgical floor space were needed, that would load too much cost and take too much time.
Gall-Bladder surgery will not get done because of open hear surgery.
Many general practitioners are concerned about the hospital’s financial liability as
only the cardiovascular surgery will cost about $ 7 million. Most doctors are not clear in their own minds that this will be a financially viable unit for the hospital.
Opportunity: CV (Cardiovascular Surgery) was not provided by any of the hospital in the area and when the patients would come they were mostly referred to other areas hospitals. Which was a great opportunity of opening open hear surgery in the area. Due to expansion in the hospitals resources (space, operating room, staff) will gain and attract other patients form other hospitals.
Threats: The failure to the expansion in the hospital would lead the hospital to a state of bankruptcy, Most of the members of management are not agreed to this expansion of the CV and others and these may lead to self decision of leaving the hospitals.
Competitive Strategy The management of Bloomington hospital has focused the people of Bloomington and the people of Monroe County, as they are the main target of management, so therefore the Bloomington hospital is applying Focused Differentiation Strategy as the Cardiovascular Surgery is not introduced in this area so far. People of the area when in need of cardiovascular surgery had to be referred to other cities hospitals, so therefore the management of Bloomington Hospital planned to target the people of Bloomington and also Monroe County and introduced the cardiovascular surgery.
