Case Study Description of Colby General Hospital (A)
This case presents an operating challenge: how does an organization sustain the initial progress achieved through its new quality-improvement system. Nurses and other clinical staff feel that the culture does not support the acknowledgment of mistakes, and the operations manager is trying to ascertain whether this "blame-game" environment is the cause of the improvement slowdown or whether there are other factors. Students are asked to apply systems-thinking tools to reveal their hypotheses of the causes of the improvement problem and to create a stock-flow map of the system structure. A systems-dynamics model can be used in class or as a preparation assignment. The simulation model enables students to develop a deeper understanding of the systems-dynamics behavior. The subsequent cases in the series UV3506 and UV3507; UV3508 is an abridgment of the A, B, and C cases) provide students with opportunities to practice the quantification of systems relationships (dominated by soft variables) and to develop a simulation model.
Swot Analysis of "Colby General Hospital (A)" written by Robert D. Landel, Derrick Moreira includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Improvement Systems facing as an external strategic factors. Some of the topics covered in Colby General Hospital (A) case study are - Strategic Management Strategies, Health and Communication.
Some of the macro environment factors that can be used to understand the Colby General Hospital (A) casestudy better are - – geopolitical disruptions, central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, wage bills are increasing, increasing commodity prices, there is backlash against globalization, cloud computing is disrupting traditional business models,
increasing energy prices, talent flight as more people leaving formal jobs, etc
Introduction to SWOT Analysis of Colby General Hospital (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Colby General Hospital (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Improvement Systems, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Improvement Systems 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 Colby General Hospital (A) can be done for the following purposes –
1. Strategic planning using facts provided in Colby General Hospital (A) case study
2. Improving business portfolio management of Improvement Systems
3. Assessing feasibility of the new initiative in Communication field.
4. Making a Communication topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Improvement Systems
Strengths Colby General Hospital (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Improvement Systems in Colby General Hospital (A) Harvard Business Review case study are -
High brand equity
– Improvement Systems has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Improvement Systems to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Communication field
– Improvement Systems 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 Improvement Systems in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Highly skilled collaborators
– Improvement Systems 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 Colby General Hospital (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Organizational Resilience of Improvement Systems
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Improvement Systems 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 Improvement Systems in the sector have low bargaining power. Colby General Hospital (A) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Improvement Systems to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Improvement Systems in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Diverse revenue streams
– Improvement Systems is present in almost all the verticals within the industry. This has provided firm in Colby General Hospital (A) 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.
Training and development
– Improvement Systems has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Colby General Hospital (A) 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.
Effective Research and Development (R&D)
– Improvement Systems 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 Colby General Hospital (A) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Improvement Systems 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 Improvement Systems is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Colby General Hospital (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Improvement Systems has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Improvement Systems 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.
Innovation driven organization
– Improvement Systems is one of the most innovative firm in sector. Manager in Colby General Hospital (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Colby General Hospital (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Colby General Hospital (A) are -
Slow decision making process
– As mentioned earlier in the report, Improvement Systems 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. Improvement Systems 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.
Capital Spending Reduction
– Even during the low interest decade, Improvement Systems 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 Colby General Hospital (A) 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 Improvement Systems has relatively successful track record of launching new products.
Workers concerns about automation
– As automation is fast increasing in the segment, Improvement Systems 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.
Aligning sales with marketing
– It come across in the case study Colby General Hospital (A) 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 Colby General Hospital (A) can leverage the sales team experience to cultivate customer relationships as Improvement Systems is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Robert D. Landel, Derrick Moreira suggests that, Improvement Systems is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Products dominated business model
– Even though Improvement Systems 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 - Colby General Hospital (A) should strive to include more intangible value offerings along with its core products and services.
Interest costs
– Compare to the competition, Improvement Systems has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Colby General Hospital (A), is just above the industry average. Improvement Systems 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.
High operating costs
– Compare to the competitors, firm in the HBR case study Colby General Hospital (A) 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 Improvement Systems 's lucrative customers.
Slow to strategic competitive environment developments
– As Colby General Hospital (A) HBR case study mentions - Improvement Systems takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
Opportunities Colby General Hospital (A) | 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 Colby General Hospital (A) are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Improvement Systems in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Communication segment, and it will provide faster access to the consumers.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Communication industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Improvement Systems 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. Improvement Systems 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.
Manufacturing automation
– Improvement Systems can use the latest technology developments to improve its manufacturing and designing process in Communication 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.
Loyalty marketing
– Improvement Systems 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.
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. Improvement Systems can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Improvement Systems to increase its market reach. Improvement Systems 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 Improvement Systems 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 Communication segment.
Using analytics as competitive advantage
– Improvement Systems 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 Colby General Hospital (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Improvement Systems to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Improvement Systems can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Improvement Systems can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Colby General Hospital (A) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Improvement Systems can use these opportunities to build new business models that can help the communities that Improvement Systems operates in. Secondly it can use opportunities from government spending in Communication 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 Improvement Systems in the consumer business. Now Improvement Systems can target international markets with far fewer capital restrictions requirements than the existing system.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Improvement Systems 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, Colby General Hospital (A), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Colby General Hospital (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Colby General Hospital (A) 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 Improvement Systems business can come under increasing regulations regarding data privacy, data security, etc.
High dependence on third party suppliers
– Improvement Systems 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Improvement Systems with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Colby General Hospital (A), Improvement Systems may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Communication .
Technology acceleration in Forth Industrial Revolution
– Improvement Systems has witnessed rapid integration of technology during Covid-19 in the Communication industry. As one of the leading players in the industry, Improvement Systems needs to keep up with the evolution of technology in the Communication 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.
Increasing wage structure of Improvement Systems
– 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 Improvement Systems.
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
– Improvement Systems 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 Communication industry regulations.
Easy access to finance
– Easy access to finance in Communication field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Improvement Systems 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, Improvement Systems 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 Colby General Hospital (A) .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Improvement Systems in the Communication industry. The Communication 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.
Stagnating economy with rate increase
– Improvement Systems 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.
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. Improvement Systems needs to understand the core reasons impacting the Communication industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Colby General Hospital (A) 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 Colby General Hospital (A) 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 Colby General Hospital (A) 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 Colby General Hospital (A) 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 Colby General Hospital (A) 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 Improvement Systems needs to make to build a sustainable competitive advantage.
