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 - – competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, geopolitical disruptions, increasing energy prices, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, cloud computing is disrupting traditional business models,
increasing inequality as vast percentage of new income is going to the top 1%, banking and financial system is disrupted by Bitcoin and other crypto currencies, 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 -
Cross disciplinary teams
– Horizontal connected teams at the Hmos Ipa are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
High brand equity
– Hmos Ipa has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Hmos Ipa to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Hmos Ipa 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 Structural Problems of Managed Care in California and Some Options for Ameliorating Them HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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.
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.
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.
Sustainable margins compare to other players in Technology & Operations industry
– Structural Problems of Managed Care in California and Some Options for Ameliorating Them firm has clearly differentiated products in the market place. This has enabled Hmos Ipa to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Hmos Ipa to invest into research and development (R&D) and innovation.
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.
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.
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.
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.
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.
Workers concerns about automation
– As automation is fast increasing in the segment, Hmos Ipa 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.
Lack of clear differentiation of Hmos Ipa products
– To increase the profitability and margins on the products, Hmos Ipa 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 Structural Problems of Managed Care in California and Some Options for Ameliorating Them 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 Structural Problems of Managed Care in California and Some Options for Ameliorating Them can leverage the sales team experience to cultivate customer relationships as Hmos Ipa is planning to shift buying processes online.
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 Hmos Ipa supply chain. Even after few cautionary changes mentioned in the HBR case study - Structural Problems of Managed Care in California and Some Options for Ameliorating Them, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Hmos Ipa vulnerable to further global disruptions in South East Asia.
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.
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.
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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Hmos Ipa is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Structural Problems of Managed Care in California and Some Options for Ameliorating Them can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
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.
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.
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 -
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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Hmos Ipa can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Hmos Ipa 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, Structural Problems of Managed Care in California and Some Options for Ameliorating Them, 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
– 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.
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.
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.
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.
Learning at scale
– Online learning technologies has now opened space for Hmos Ipa 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Hmos Ipa 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 Hmos Ipa to hire the very best people irrespective of their geographical location.
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.
Leveraging digital technologies
– Hmos Ipa 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.
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.
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 -
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Structural Problems of Managed Care in California and Some Options for Ameliorating Them, Hmos Ipa may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
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.
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.
Environmental challenges
– Hmos Ipa needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Hmos Ipa can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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.
Increasing wage structure of Hmos Ipa
– 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 Hmos Ipa.
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.
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.
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.
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.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Hmos Ipa 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 Structural Problems of Managed Care in California and Some Options for Ameliorating Them .
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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