Managing Orthopaedics at Rittenhouse Medical Center SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Managing Orthopaedics at Rittenhouse Medical Center
Considers the issues associated with running multiple business models--a private practice and an academic faculty practice--within the confines of the orthopaedics department of a single medical center. Students assume the role of Neela Wilson, Executive Director of Rittenhouse Medical Center, in managing the operational requirements of, and organizational tensions created by, these competing models. In analyzing the case, students have the opportunity to: (1) gain a better understanding of operational focus and the concept of a "focused factory" in health care, (2) consider the concept of a "factory within a factory" in the context of an academic medical center, and (3) build an appreciation of the managerial challenges associated with operating related, and often competing, business units within the same organization.
Authors :: Richard Bohmer, Robert S. Huckman, Kevin J. Bozic, James Weber
Swot Analysis of "Managing Orthopaedics at Rittenhouse Medical Center" written by Richard Bohmer, Robert S. Huckman, Kevin J. Bozic, James Weber includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Orthopaedics Rittenhouse facing as an external strategic factors. Some of the topics covered in Managing Orthopaedics at Rittenhouse Medical Center case study are - Strategic Management Strategies, Operations management, Productivity and Technology & Operations.
Some of the macro environment factors that can be used to understand the Managing Orthopaedics at Rittenhouse Medical Center casestudy better are - – banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, there is increasing trade war between United States & China, technology disruption, geopolitical disruptions, increasing inequality as vast percentage of new income is going to the top 1%, wage bills are increasing,
increasing energy prices, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Managing Orthopaedics at Rittenhouse Medical Center
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Managing Orthopaedics at Rittenhouse Medical Center case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Orthopaedics Rittenhouse, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Orthopaedics Rittenhouse operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Managing Orthopaedics at Rittenhouse Medical Center can be done for the following purposes –
1. Strategic planning using facts provided in Managing Orthopaedics at Rittenhouse Medical Center case study
2. Improving business portfolio management of Orthopaedics Rittenhouse
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Orthopaedics Rittenhouse
Strengths Managing Orthopaedics at Rittenhouse Medical Center | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Orthopaedics Rittenhouse in Managing Orthopaedics at Rittenhouse Medical Center Harvard Business Review case study are -
Sustainable margins compare to other players in Technology & Operations industry
– Managing Orthopaedics at Rittenhouse Medical Center firm has clearly differentiated products in the market place. This has enabled Orthopaedics Rittenhouse to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Orthopaedics Rittenhouse to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Orthopaedics Rittenhouse has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Managing Orthopaedics at Rittenhouse Medical Center HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Orthopaedics Rittenhouse digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Orthopaedics Rittenhouse has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Ability to recruit top talent
– Orthopaedics Rittenhouse is one of the leading recruiters in the industry. Managers in the Managing Orthopaedics at Rittenhouse Medical Center are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Low bargaining power of suppliers
– Suppliers of Orthopaedics Rittenhouse in the sector have low bargaining power. Managing Orthopaedics at Rittenhouse Medical Center has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Orthopaedics Rittenhouse to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Orthopaedics Rittenhouse
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Orthopaedics Rittenhouse does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
High switching costs
– The high switching costs that Orthopaedics Rittenhouse has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Operational resilience
– The operational resilience strategy in the Managing Orthopaedics at Rittenhouse Medical Center Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Superior customer experience
– The customer experience strategy of Orthopaedics Rittenhouse in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Orthopaedics Rittenhouse is present in almost all the verticals within the industry. This has provided firm in Managing Orthopaedics at Rittenhouse Medical Center case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Successful track record of launching new products
– Orthopaedics Rittenhouse has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Orthopaedics Rittenhouse has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Strong track record of project management
– Orthopaedics Rittenhouse is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Weaknesses Managing Orthopaedics at Rittenhouse Medical Center | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Managing Orthopaedics at Rittenhouse Medical Center are -
Need for greater diversity
– Orthopaedics Rittenhouse has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Capital Spending Reduction
– Even during the low interest decade, Orthopaedics Rittenhouse has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Interest costs
– Compare to the competition, Orthopaedics Rittenhouse has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Managing Orthopaedics at Rittenhouse Medical Center, is just above the industry average. Orthopaedics Rittenhouse needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Managing Orthopaedics at Rittenhouse Medical Center, it seems that the employees of Orthopaedics Rittenhouse don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Increasing silos among functional specialists
– The organizational structure of Orthopaedics Rittenhouse is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Orthopaedics Rittenhouse needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Orthopaedics Rittenhouse to focus more on services rather than just following the product oriented approach.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Managing Orthopaedics at Rittenhouse Medical Center HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Orthopaedics Rittenhouse has relatively successful track record of launching new products.
Lack of clear differentiation of Orthopaedics Rittenhouse products
– To increase the profitability and margins on the products, Orthopaedics Rittenhouse needs to provide more differentiated products than what it is currently offering in the marketplace.
Aligning sales with marketing
– It come across in the case study Managing Orthopaedics at Rittenhouse Medical Center that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Managing Orthopaedics at Rittenhouse Medical Center can leverage the sales team experience to cultivate customer relationships as Orthopaedics Rittenhouse is planning to shift buying processes online.
No frontier risks strategy
– After analyzing the HBR case study Managing Orthopaedics at Rittenhouse Medical Center, it seems that company is thinking about the frontier risks that can impact Technology & Operations strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
High cash cycle compare to competitors
Orthopaedics Rittenhouse has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Opportunities Managing Orthopaedics at Rittenhouse Medical Center | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Managing Orthopaedics at Rittenhouse Medical Center are -
Learning at scale
– Online learning technologies has now opened space for Orthopaedics Rittenhouse to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Orthopaedics Rittenhouse is facing challenges because of the dominance of functional experts in the organization. Managing Orthopaedics at Rittenhouse Medical Center case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Orthopaedics Rittenhouse can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Orthopaedics Rittenhouse can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Loyalty marketing
– Orthopaedics Rittenhouse has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Creating value in data economy
– The success of analytics program of Orthopaedics Rittenhouse has opened avenues for new revenue streams for the organization in the industry. This can help Orthopaedics Rittenhouse to build a more holistic ecosystem as suggested in the Managing Orthopaedics at Rittenhouse Medical Center case study. Orthopaedics Rittenhouse can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Developing new processes and practices
– Orthopaedics Rittenhouse can develop new processes and procedures in Technology & Operations industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Orthopaedics Rittenhouse to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Using analytics as competitive advantage
– Orthopaedics Rittenhouse has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Managing Orthopaedics at Rittenhouse Medical Center - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Orthopaedics Rittenhouse to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Orthopaedics Rittenhouse can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Buying journey improvements
– Orthopaedics Rittenhouse can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Managing Orthopaedics at Rittenhouse Medical Center suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Orthopaedics Rittenhouse can use these opportunities to build new business models that can help the communities that Orthopaedics Rittenhouse operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Orthopaedics Rittenhouse to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Orthopaedics Rittenhouse to hire the very best people irrespective of their geographical location.
Threats Managing Orthopaedics at Rittenhouse Medical Center External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Managing Orthopaedics at Rittenhouse Medical Center are -
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Orthopaedics Rittenhouse will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Regulatory challenges
– Orthopaedics Rittenhouse needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Technology & Operations industry regulations.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Orthopaedics Rittenhouse business can come under increasing regulations regarding data privacy, data security, etc.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Orthopaedics Rittenhouse can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Orthopaedics Rittenhouse demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Increasing wage structure of Orthopaedics Rittenhouse
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Orthopaedics Rittenhouse.
Shortening product life cycle
– it is one of the major threat that Orthopaedics Rittenhouse is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Orthopaedics Rittenhouse with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Orthopaedics Rittenhouse in the Technology & Operations sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Orthopaedics Rittenhouse high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Orthopaedics Rittenhouse can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Managing Orthopaedics at Rittenhouse Medical Center .
Stagnating economy with rate increase
– Orthopaedics Rittenhouse can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Weighted SWOT Analysis of Managing Orthopaedics at Rittenhouse Medical Center Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Managing Orthopaedics at Rittenhouse Medical Center needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Managing Orthopaedics at Rittenhouse Medical Center is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Managing Orthopaedics at Rittenhouse Medical Center is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Managing Orthopaedics at Rittenhouse Medical Center is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Orthopaedics Rittenhouse needs to make to build a sustainable competitive advantage.
