University Hospitals Cleveland Medical Center: Managing Capacity in Neurology SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of University Hospitals Cleveland Medical Center: Managing Capacity in Neurology
In December 2014, Dr. Anthony Furlan, chair of the Department of Neurology at University Hospitals Cleveland Medical Center (UH), faced a mandate from the hospital's executive leadership team. Specifically, all UH departments were directed to take steps within six months to reduce the waiting time for outpatient appointments-measured as the time to first available outpatient appointment-to no more than 15 days. For Furlan and his colleagues in neurology, achieving this target was a significant challenge, as the department's current time to first available appointment was 93 days. The case considers several alternatives for reducing waiting time in outpatient neurology without increasing the total clinical staff. The case allows students to evaluate opportunities for expanding the effective capacity of a complex service operation and to understand the tradeoffs between customer service and labor utilization.
Authors :: Joel Goh, Robert S. Huckman, Nikhil Sahni
Topics :: Technology & Operations
Tags :: Human resource management, Manufacturing, Supply chain, Time management, SWOT Analysis, SWOT Matrix, TOWS, Weighted SWOT Analysis
Swot Analysis of "University Hospitals Cleveland Medical Center: Managing Capacity in Neurology" written by Joel Goh, Robert S. Huckman, Nikhil Sahni includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Neurology Outpatient facing as an external strategic factors. Some of the topics covered in University Hospitals Cleveland Medical Center: Managing Capacity in Neurology case study are - Strategic Management Strategies, Human resource management, Manufacturing, Supply chain, Time management and Technology & Operations.
Some of the macro environment factors that can be used to understand the University Hospitals Cleveland Medical Center: Managing Capacity in Neurology casestudy better are - – wage bills are increasing, talent flight as more people leaving formal jobs, there is increasing trade war between United States & China, increasing household debt because of falling income levels, there is backlash against globalization, increasing government debt because of Covid-19 spendings, digital marketing is dominated by two big players Facebook and Google,
customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, etc
Introduction to SWOT Analysis of University Hospitals Cleveland Medical Center: Managing Capacity in Neurology
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in University Hospitals Cleveland Medical Center: Managing Capacity in Neurology case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Neurology Outpatient, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Neurology Outpatient 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 University Hospitals Cleveland Medical Center: Managing Capacity in Neurology can be done for the following purposes –
1. Strategic planning using facts provided in University Hospitals Cleveland Medical Center: Managing Capacity in Neurology case study
2. Improving business portfolio management of Neurology Outpatient
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 Neurology Outpatient
Strengths University Hospitals Cleveland Medical Center: Managing Capacity in Neurology | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Neurology Outpatient in University Hospitals Cleveland Medical Center: Managing Capacity in Neurology Harvard Business Review case study are -
Learning organization
- Neurology Outpatient 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 Neurology Outpatient is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in University Hospitals Cleveland Medical Center: Managing Capacity in Neurology Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Operational resilience
– The operational resilience strategy in the University Hospitals Cleveland Medical Center: Managing Capacity in Neurology 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 Neurology Outpatient 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.
High brand equity
– Neurology Outpatient has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Neurology Outpatient to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Low bargaining power of suppliers
– Suppliers of Neurology Outpatient in the sector have low bargaining power. University Hospitals Cleveland Medical Center: Managing Capacity in Neurology has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Neurology Outpatient to manage not only supply disruptions but also source products at highly competitive prices.
Organizational Resilience of Neurology Outpatient
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Neurology Outpatient does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Sustainable margins compare to other players in Technology & Operations industry
– University Hospitals Cleveland Medical Center: Managing Capacity in Neurology firm has clearly differentiated products in the market place. This has enabled Neurology Outpatient to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Neurology Outpatient to invest into research and development (R&D) and innovation.
Training and development
– Neurology Outpatient has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in University Hospitals Cleveland Medical Center: Managing Capacity in Neurology Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Cross disciplinary teams
– Horizontal connected teams at the Neurology Outpatient 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.
Ability to lead change in Technology & Operations field
– Neurology Outpatient 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 Neurology Outpatient in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Neurology Outpatient has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Neurology Outpatient 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.
Highly skilled collaborators
– Neurology Outpatient 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 University Hospitals Cleveland Medical Center: Managing Capacity in Neurology HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses University Hospitals Cleveland Medical Center: Managing Capacity in Neurology | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of University Hospitals Cleveland Medical Center: Managing Capacity in Neurology are -
Skills based hiring
– The stress on hiring functional specialists at Neurology Outpatient 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.
Interest costs
– Compare to the competition, Neurology Outpatient 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.
High cash cycle compare to competitors
Neurology Outpatient 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.
Increasing silos among functional specialists
– The organizational structure of Neurology Outpatient is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Neurology Outpatient needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Neurology Outpatient to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, Neurology Outpatient has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Neurology Outpatient even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the University Hospitals Cleveland Medical Center: Managing Capacity in Neurology 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 Neurology Outpatient has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study University Hospitals Cleveland Medical Center: Managing Capacity in Neurology 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 University Hospitals Cleveland Medical Center: Managing Capacity in Neurology can leverage the sales team experience to cultivate customer relationships as Neurology Outpatient is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study University Hospitals Cleveland Medical Center: Managing Capacity in Neurology, it seems that the employees of Neurology Outpatient 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Neurology Outpatient 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.
High operating costs
– Compare to the competitors, firm in the HBR case study University Hospitals Cleveland Medical Center: Managing Capacity in Neurology 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 Neurology Outpatient 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Neurology Outpatient 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 University Hospitals Cleveland Medical Center: Managing Capacity in Neurology | 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 University Hospitals Cleveland Medical Center: Managing Capacity in Neurology are -
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 Neurology Outpatient in the consumer business. Now Neurology Outpatient can target international markets with far fewer capital restrictions requirements than the existing system.
Loyalty marketing
– Neurology Outpatient 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Neurology Outpatient can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Neurology Outpatient can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Developing new processes and practices
– Neurology Outpatient 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.
Better consumer reach
– The expansion of the 5G network will help Neurology Outpatient to increase its market reach. Neurology Outpatient 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.
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. Neurology Outpatient can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Neurology Outpatient 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, University Hospitals Cleveland Medical Center: Managing Capacity in Neurology, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Neurology Outpatient 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 University Hospitals Cleveland Medical Center: Managing Capacity in Neurology - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Neurology Outpatient to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Neurology Outpatient can use these opportunities to build new business models that can help the communities that Neurology Outpatient operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Creating value in data economy
– The success of analytics program of Neurology Outpatient has opened avenues for new revenue streams for the organization in the industry. This can help Neurology Outpatient to build a more holistic ecosystem as suggested in the University Hospitals Cleveland Medical Center: Managing Capacity in Neurology case study. Neurology Outpatient can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Neurology Outpatient 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Neurology Outpatient can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Neurology Outpatient is facing challenges because of the dominance of functional experts in the organization. University Hospitals Cleveland Medical Center: Managing Capacity in Neurology 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.
Threats University Hospitals Cleveland Medical Center: Managing Capacity in Neurology External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study University Hospitals Cleveland Medical Center: Managing Capacity in Neurology are -
Consumer confidence and its impact on Neurology Outpatient 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Neurology Outpatient 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.
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 Neurology Outpatient in the Technology & Operations sector and impact the bottomline of the organization.
High dependence on third party suppliers
– Neurology Outpatient 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.
Stagnating economy with rate increase
– Neurology Outpatient 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
– Neurology Outpatient has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Neurology Outpatient 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.
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. Neurology Outpatient 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 Neurology Outpatient 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.
Regulatory challenges
– Neurology Outpatient 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.
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. Neurology Outpatient can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Neurology Outpatient 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 University Hospitals Cleveland Medical Center: Managing Capacity in Neurology .
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. Neurology Outpatient needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Weighted SWOT Analysis of University Hospitals Cleveland Medical Center: Managing Capacity in Neurology 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 University Hospitals Cleveland Medical Center: Managing Capacity in Neurology 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 University Hospitals Cleveland Medical Center: Managing Capacity in Neurology 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 University Hospitals Cleveland Medical Center: Managing Capacity in Neurology 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 University Hospitals Cleveland Medical Center: Managing Capacity in Neurology 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 Neurology Outpatient needs to make to build a sustainable competitive advantage.
