Case Study Description of Riverside Hospital's Pharmacy Services
Riverside District Memorial Hospital (RDMH) is a small rural hospital that must work within an operational budget that is determined by the Ministry of Health and Long Term Care in a Canadian province. This case identifies the emergence of concerns for patient safety related to medication administration, and the challenges of ensuring professional services are maintained by the pharmacy department to serve patients admitted to hospital. The chief nursing executive (CNE) must decide what steps should be taken to reduce this exposure in the context of the complex relationships in which RDMH exists.
Authors :: Anne Snowdon, Hannah Standing Rasmussen
Swot Analysis of "Riverside Hospital's Pharmacy Services" written by Anne Snowdon, Hannah Standing Rasmussen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Rdmh Riverside facing as an external strategic factors. Some of the topics covered in Riverside Hospital's Pharmacy Services case study are - Strategic Management Strategies, IT, Leadership, Operations management, Organizational culture and Technology & Operations.
Some of the macro environment factors that can be used to understand the Riverside Hospital's Pharmacy Services casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, increasing household debt because of falling income levels, there is backlash against globalization, geopolitical disruptions,
wage bills are increasing, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of Riverside Hospital's Pharmacy Services
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Riverside Hospital's Pharmacy Services case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Rdmh Riverside, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Rdmh Riverside 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 Riverside Hospital's Pharmacy Services can be done for the following purposes –
1. Strategic planning using facts provided in Riverside Hospital's Pharmacy Services case study
2. Improving business portfolio management of Rdmh Riverside
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 Rdmh Riverside
Strengths Riverside Hospital's Pharmacy Services | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Rdmh Riverside in Riverside Hospital's Pharmacy Services Harvard Business Review case study are -
Strong track record of project management
– Rdmh Riverside is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Rdmh Riverside in the sector have low bargaining power. Riverside Hospital's Pharmacy Services has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Rdmh Riverside to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Rdmh Riverside is present in almost all the verticals within the industry. This has provided firm in Riverside Hospital's Pharmacy Services 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.
Sustainable margins compare to other players in Technology & Operations industry
– Riverside Hospital's Pharmacy Services firm has clearly differentiated products in the market place. This has enabled Rdmh Riverside to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Rdmh Riverside to invest into research and development (R&D) and innovation.
Highly skilled collaborators
– Rdmh Riverside 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 Riverside Hospital's Pharmacy Services HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Rdmh Riverside is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Rdmh Riverside is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Riverside Hospital's Pharmacy Services Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the Riverside Hospital's Pharmacy Services 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.
High switching costs
– The high switching costs that Rdmh Riverside 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Rdmh Riverside digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Rdmh Riverside 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.
High brand equity
– Rdmh Riverside has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Rdmh Riverside to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– Rdmh Riverside is one of the most innovative firm in sector. Manager in Riverside Hospital's Pharmacy Services Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Ability to lead change in Technology & Operations field
– Rdmh Riverside is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Rdmh Riverside in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Riverside Hospital's Pharmacy Services | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Riverside Hospital's Pharmacy Services are -
Low market penetration in new markets
– Outside its home market of Rdmh Riverside, firm in the HBR case study Riverside Hospital's Pharmacy Services needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Need for greater diversity
– Rdmh Riverside 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.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Rdmh Riverside supply chain. Even after few cautionary changes mentioned in the HBR case study - Riverside Hospital's Pharmacy Services, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Rdmh Riverside vulnerable to further global disruptions in South East Asia.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Riverside Hospital's Pharmacy Services, is just above the industry average. Rdmh Riverside 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.
Interest costs
– Compare to the competition, Rdmh Riverside 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Rdmh Riverside needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Capital Spending Reduction
– Even during the low interest decade, Rdmh Riverside 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Riverside Hospital's Pharmacy Services, it seems that the employees of Rdmh Riverside 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Riverside Hospital's Pharmacy Services 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 Rdmh Riverside has relatively successful track record of launching new products.
High operating costs
– Compare to the competitors, firm in the HBR case study Riverside Hospital's Pharmacy Services has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Rdmh Riverside 's lucrative customers.
Aligning sales with marketing
– It come across in the case study Riverside Hospital's Pharmacy Services 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 Riverside Hospital's Pharmacy Services can leverage the sales team experience to cultivate customer relationships as Rdmh Riverside is planning to shift buying processes online.
Opportunities Riverside Hospital's Pharmacy Services | 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 Riverside Hospital's Pharmacy Services are -
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 Rdmh Riverside 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Rdmh Riverside in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
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. Rdmh Riverside can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Creating value in data economy
– The success of analytics program of Rdmh Riverside has opened avenues for new revenue streams for the organization in the industry. This can help Rdmh Riverside to build a more holistic ecosystem as suggested in the Riverside Hospital's Pharmacy Services case study. Rdmh Riverside can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Rdmh Riverside can use these opportunities to build new business models that can help the communities that Rdmh Riverside operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Learning at scale
– Online learning technologies has now opened space for Rdmh Riverside 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.
Buying journey improvements
– Rdmh Riverside can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Riverside Hospital's Pharmacy Services 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Rdmh Riverside 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 Rdmh Riverside to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Rdmh Riverside to increase its market reach. Rdmh Riverside will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Leveraging digital technologies
– Rdmh Riverside can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Building a culture of innovation
– managers at Rdmh Riverside can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Technology & Operations segment.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Rdmh Riverside can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Riverside Hospital's Pharmacy Services, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Developing new processes and practices
– Rdmh Riverside 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.
Threats Riverside Hospital's Pharmacy Services External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Riverside Hospital's Pharmacy Services are -
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 Rdmh Riverside business can come under increasing regulations regarding data privacy, data security, etc.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Rdmh Riverside.
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.
Stagnating economy with rate increase
– Rdmh Riverside 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.
Technology acceleration in Forth Industrial Revolution
– Rdmh Riverside has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Rdmh Riverside needs to keep up with the evolution of technology in the Technology & Operations sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
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. Rdmh Riverside can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Rdmh Riverside in the Technology & Operations industry. The Technology & Operations industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Consumer confidence and its impact on Rdmh Riverside 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.
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 Rdmh Riverside in the Technology & Operations sector and impact the bottomline of the organization.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Rdmh Riverside with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Rdmh Riverside 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.
Increasing wage structure of Rdmh Riverside
– 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 Rdmh Riverside.
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. Rdmh Riverside 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.
Weighted SWOT Analysis of Riverside Hospital's Pharmacy Services 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 Riverside Hospital's Pharmacy Services 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 Riverside Hospital's Pharmacy Services 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 Riverside Hospital's Pharmacy Services 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 Riverside Hospital's Pharmacy Services 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 Rdmh Riverside needs to make to build a sustainable competitive advantage.
