Structural Problems of Managed Care in California and Some Options for Ameliorating Them SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Structural Problems of Managed Care in California and Some Options for Ameliorating Them
Of the two main types of health maintenance organizations (HMOs), IPA/network HMOs (which contract with independent practice associations (IPAs) and other medical groups) have grown faster than group/staff HMOs (which partner with exclusive multi-specialty medical groups or employ staff physicians). However, because the IPA/network HMOs in California contract with wide and overlapping networks of physicians and hospitals in order to satisfy purchaser demand, these arrangements suffer from inefficiencies that confound and frustrate physicians and consumers and these arrangements fail to provide the highest-quality, most-economic care. This article reviews the historical context and growth of managed care in California and then delineates efficiency problems due to overlapping networks of IPA/network HMOs. The authors also review a variety of potential strategies for addressing these problems and discuss advantages and disadvantages of each option.
Swot Analysis of "Structural Problems of Managed Care in California and Some Options for Ameliorating Them" written by Sara J. Singer, Alain C. Enthoven includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Hmos Ipa facing as an external strategic factors. Some of the topics covered in Structural Problems of Managed Care in California and Some Options for Ameliorating Them case study are - Strategic Management Strategies, and Technology & Operations.
Some of the macro environment factors that can be used to understand the Structural Problems of Managed Care in California and Some Options for Ameliorating Them casestudy better are - – wage bills are increasing, increasing energy prices, competitive advantages are harder to sustain because of technology dispersion, increasing commodity prices, challanges to central banks by blockchain based private currencies, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy,
technology disruption, supply chains are disrupted by pandemic , etc
Introduction to SWOT Analysis of Structural Problems of Managed Care in California and Some Options for Ameliorating Them
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Structural Problems of Managed Care in California and Some Options for Ameliorating Them case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Hmos Ipa, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Hmos Ipa 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 Structural Problems of Managed Care in California and Some Options for Ameliorating Them can be done for the following purposes –
1. Strategic planning using facts provided in Structural Problems of Managed Care in California and Some Options for Ameliorating Them case study
2. Improving business portfolio management of Hmos Ipa
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 Hmos Ipa
Strengths Structural Problems of Managed Care in California and Some Options for Ameliorating Them | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Hmos Ipa in Structural Problems of Managed Care in California and Some Options for Ameliorating Them Harvard Business Review case study are -
Superior customer experience
– The customer experience strategy of Hmos Ipa in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Hmos Ipa is one of the most innovative firm in sector. Manager in Structural Problems of Managed Care in California and Some Options for Ameliorating Them Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Hmos Ipa
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Hmos Ipa does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Low bargaining power of suppliers
– Suppliers of Hmos Ipa in the sector have low bargaining power. Structural Problems of Managed Care in California and Some Options for Ameliorating Them has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Hmos Ipa to manage not only supply disruptions but also source products at highly competitive prices.
Analytics focus
– Hmos Ipa is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Sara J. Singer, Alain C. Enthoven can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Operational resilience
– The operational resilience strategy in the Structural Problems of Managed Care in California and Some Options for Ameliorating Them 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.
Effective Research and Development (R&D)
– Hmos Ipa has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Structural Problems of Managed Care in California and Some Options for Ameliorating Them - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Hmos Ipa digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Hmos Ipa 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.
Strong track record of project management
– Hmos Ipa is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Diverse revenue streams
– Hmos Ipa is present in almost all the verticals within the industry. This has provided firm in Structural Problems of Managed Care in California and Some Options for Ameliorating Them 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.
Ability to recruit top talent
– Hmos Ipa is one of the leading recruiters in the industry. Managers in the Structural Problems of Managed Care in California and Some Options for Ameliorating Them are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Technology & Operations field
– Hmos Ipa 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 Hmos Ipa in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Weaknesses Structural Problems of Managed Care in California and Some Options for Ameliorating Them | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Structural Problems of Managed Care in California and Some Options for Ameliorating Them are -
Need for greater diversity
– Hmos Ipa 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.
Products dominated business model
– Even though Hmos Ipa has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Structural Problems of Managed Care in California and Some Options for Ameliorating Them should strive to include more intangible value offerings along with its core products and services.
No frontier risks strategy
– After analyzing the HBR case study Structural Problems of Managed Care in California and Some Options for Ameliorating Them, 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.
Capital Spending Reduction
– Even during the low interest decade, Hmos Ipa 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Structural Problems of Managed Care in California and Some Options for Ameliorating Them 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 Hmos Ipa has relatively successful track record of launching new products.
High cash cycle compare to competitors
Hmos Ipa 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.
Interest costs
– Compare to the competition, Hmos Ipa 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.
Low market penetration in new markets
– Outside its home market of Hmos Ipa, firm in the HBR case study Structural Problems of Managed Care in California and Some Options for Ameliorating Them needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Structural Problems of Managed Care in California and Some Options for Ameliorating Them, in the dynamic environment Hmos Ipa has struggled to respond to the nimble upstart competition. Hmos Ipa has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study Structural Problems of Managed Care in California and Some Options for Ameliorating Them 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 Hmos Ipa 's lucrative customers.
Skills based hiring
– The stress on hiring functional specialists at Hmos Ipa has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Opportunities Structural Problems of Managed Care in California and Some Options for Ameliorating Them | 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 Structural Problems of Managed Care in California and Some Options for Ameliorating Them are -
Manufacturing automation
– Hmos Ipa can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Low interest rates
– Even though inflation is raising its head in most developed economies, Hmos Ipa 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.
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 Hmos Ipa 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.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Hmos Ipa can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Hmos Ipa is facing challenges because of the dominance of functional experts in the organization. Structural Problems of Managed Care in California and Some Options for Ameliorating Them 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.
Better consumer reach
– The expansion of the 5G network will help Hmos Ipa to increase its market reach. Hmos Ipa 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.
Building a culture of innovation
– managers at Hmos Ipa 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Hmos Ipa can use these opportunities to build new business models that can help the communities that Hmos Ipa operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Hmos Ipa in the consumer business. Now Hmos Ipa can target international markets with far fewer capital restrictions requirements than the existing system.
Using analytics as competitive advantage
– Hmos Ipa 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 Structural Problems of Managed Care in California and Some Options for Ameliorating Them - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Hmos Ipa to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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. Hmos Ipa can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Developing new processes and practices
– Hmos Ipa 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.
Buying journey improvements
– Hmos Ipa can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Structural Problems of Managed Care in California and Some Options for Ameliorating Them 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.
Threats Structural Problems of Managed Care in California and Some Options for Ameliorating Them External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Structural Problems of Managed Care in California and Some Options for Ameliorating Them are -
Technology acceleration in Forth Industrial Revolution
– Hmos Ipa has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Hmos Ipa 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.
Stagnating economy with rate increase
– Hmos Ipa 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Hmos Ipa 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.
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. Hmos Ipa can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Hmos Ipa needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Hmos Ipa 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 Hmos Ipa in the Technology & Operations sector and impact the bottomline of the organization.
Regulatory challenges
– Hmos Ipa 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.
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. Hmos Ipa 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.
Consumer confidence and its impact on Hmos Ipa 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.
High dependence on third party suppliers
– Hmos Ipa 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.
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 Hmos Ipa.
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 Hmos Ipa business can come under increasing regulations regarding data privacy, data security, etc.
Weighted SWOT Analysis of Structural Problems of Managed Care in California and Some Options for Ameliorating Them 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 Structural Problems of Managed Care in California and Some Options for Ameliorating Them 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 Structural Problems of Managed Care in California and Some Options for Ameliorating Them 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 Structural Problems of Managed Care in California and Some Options for Ameliorating Them 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 Structural Problems of Managed Care in California and Some Options for Ameliorating Them 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 Hmos Ipa needs to make to build a sustainable competitive advantage.
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