Case Study Description of AUB Medical Center: Achieving 2020 Vision (A)
"An academic and medical practitioner leaves Harvard Medical School to join the American University of Beirut Medical Center (AUBMC) as dean of the School of Medicine and vice president of medical affairs. Faced with unmotivated staff, a huge deficit, a plethora of procedural inefficiencies, and the chaotic political situation of the country, he is determined to turn things around and raise the institution to international standards and position it as the premier medical institution in the Middle East and North Africa (MENA) region. He restructures the management team and sets a new vision of growth and expansion. However, he must face problems related to a lack of patient-centered service, tense relations between nurses and doctors, operational inefficiencies, and branding issues. Will AUBMC be able to pursue an ambitious growth strategy in the face of an adverse financial and political situation? Hounaida A. El Jurdi and Nadine A. Yehya are affiliated with Olayan School of Business.
Swot Analysis of "AUB Medical Center: Achieving 2020 Vision (A)" written by Hounaida A El Jurdi, Nadine A Yehya includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Medical Aubmc facing as an external strategic factors. Some of the topics covered in AUB Medical Center: Achieving 2020 Vision (A) case study are - Strategic Management Strategies, Leadership and Leadership & Managing People.
Some of the macro environment factors that can be used to understand the AUB Medical Center: Achieving 2020 Vision (A) casestudy better are - – there is backlash against globalization, competitive advantages are harder to sustain because of technology dispersion, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, supply chains are disrupted by pandemic , technology disruption, customer relationship management is fast transforming because of increasing concerns over data privacy,
central banks are concerned over increasing inflation, increasing inequality as vast percentage of new income is going to the top 1%, etc
Introduction to SWOT Analysis of AUB Medical Center: Achieving 2020 Vision (A)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in AUB Medical Center: Achieving 2020 Vision (A) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Medical Aubmc, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Medical Aubmc 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 AUB Medical Center: Achieving 2020 Vision (A) can be done for the following purposes –
1. Strategic planning using facts provided in AUB Medical Center: Achieving 2020 Vision (A) case study
2. Improving business portfolio management of Medical Aubmc
3. Assessing feasibility of the new initiative in Leadership & Managing People field.
4. Making a Leadership & Managing People topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Medical Aubmc
Strengths AUB Medical Center: Achieving 2020 Vision (A) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Medical Aubmc in AUB Medical Center: Achieving 2020 Vision (A) Harvard Business Review case study are -
High brand equity
– Medical Aubmc has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Medical Aubmc to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Leadership & Managing People field
– Medical Aubmc 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 Medical Aubmc in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Organizational Resilience of Medical Aubmc
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Medical Aubmc does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Cross disciplinary teams
– Horizontal connected teams at the Medical Aubmc 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.
Training and development
– Medical Aubmc has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in AUB Medical Center: Achieving 2020 Vision (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.
Analytics focus
– Medical Aubmc 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 Hounaida A El Jurdi, Nadine A Yehya 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.
Highly skilled collaborators
– Medical Aubmc 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 AUB Medical Center: Achieving 2020 Vision (A) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Strong track record of project management
– Medical Aubmc is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Innovation driven organization
– Medical Aubmc is one of the most innovative firm in sector. Manager in AUB Medical Center: Achieving 2020 Vision (A) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Successful track record of launching new products
– Medical Aubmc has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Medical Aubmc 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.
Learning organization
- Medical Aubmc 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 Medical Aubmc is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in AUB Medical Center: Achieving 2020 Vision (A) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Medical Aubmc is one of the leading recruiters in the industry. Managers in the AUB Medical Center: Achieving 2020 Vision (A) 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 AUB Medical Center: Achieving 2020 Vision (A) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of AUB Medical Center: Achieving 2020 Vision (A) are -
Increasing silos among functional specialists
– The organizational structure of Medical Aubmc is dominated by functional specialists. It is not different from other players in the Leadership & Managing People segment. Medical Aubmc needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Medical Aubmc to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study AUB Medical Center: Achieving 2020 Vision (A), it seems that the employees of Medical Aubmc 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.
Skills based hiring
– The stress on hiring functional specialists at Medical Aubmc 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.
Aligning sales with marketing
– It come across in the case study AUB Medical Center: Achieving 2020 Vision (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 AUB Medical Center: Achieving 2020 Vision (A) can leverage the sales team experience to cultivate customer relationships as Medical Aubmc is planning to shift buying processes online.
High operating costs
– Compare to the competitors, firm in the HBR case study AUB Medical Center: Achieving 2020 Vision (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 Medical Aubmc 's lucrative customers.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study AUB Medical Center: Achieving 2020 Vision (A), is just above the industry average. Medical Aubmc 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 cash cycle compare to competitors
Medical Aubmc 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Hounaida A El Jurdi, Nadine A Yehya suggests that, Medical Aubmc 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.
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 Medical Aubmc supply chain. Even after few cautionary changes mentioned in the HBR case study - AUB Medical Center: Achieving 2020 Vision (A), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Medical Aubmc vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Medical Aubmc, firm in the HBR case study AUB Medical Center: Achieving 2020 Vision (A) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Workers concerns about automation
– As automation is fast increasing in the segment, Medical Aubmc 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.
Opportunities AUB Medical Center: Achieving 2020 Vision (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 AUB Medical Center: Achieving 2020 Vision (A) are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Medical Aubmc in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Leadership & Managing People segment, and it will provide faster access to the consumers.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Medical Aubmc can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Creating value in data economy
– The success of analytics program of Medical Aubmc has opened avenues for new revenue streams for the organization in the industry. This can help Medical Aubmc to build a more holistic ecosystem as suggested in the AUB Medical Center: Achieving 2020 Vision (A) case study. Medical Aubmc can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Medical Aubmc can use these opportunities to build new business models that can help the communities that Medical Aubmc operates in. Secondly it can use opportunities from government spending in Leadership & Managing People sector.
Learning at scale
– Online learning technologies has now opened space for Medical Aubmc 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Medical Aubmc is facing challenges because of the dominance of functional experts in the organization. AUB Medical Center: Achieving 2020 Vision (A) 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.
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 Medical Aubmc 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Medical Aubmc 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, AUB Medical Center: Achieving 2020 Vision (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.
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. Medical Aubmc can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Using analytics as competitive advantage
– Medical Aubmc 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 AUB Medical Center: Achieving 2020 Vision (A) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Medical Aubmc to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Low interest rates
– Even though inflation is raising its head in most developed economies, Medical Aubmc 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.
Better consumer reach
– The expansion of the 5G network will help Medical Aubmc to increase its market reach. Medical Aubmc will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Leveraging digital technologies
– Medical Aubmc 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.
Threats AUB Medical Center: Achieving 2020 Vision (A) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study AUB Medical Center: Achieving 2020 Vision (A) are -
Regulatory challenges
– Medical Aubmc 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 Leadership & Managing People industry regulations.
Environmental challenges
– Medical Aubmc 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. Medical Aubmc can take advantage of this fund but it will also bring new competitors in the Leadership & Managing People industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Medical Aubmc with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Medical Aubmc 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.
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. Medical Aubmc needs to understand the core reasons impacting the Leadership & Managing People industry. This will help it in building a better workplace.
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, Medical Aubmc 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 AUB Medical Center: Achieving 2020 Vision (A) .
Technology acceleration in Forth Industrial Revolution
– Medical Aubmc has witnessed rapid integration of technology during Covid-19 in the Leadership & Managing People industry. As one of the leading players in the industry, Medical Aubmc needs to keep up with the evolution of technology in the Leadership & Managing People 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study AUB Medical Center: Achieving 2020 Vision (A), Medical Aubmc may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Leadership & Managing People .
Increasing wage structure of Medical Aubmc
– 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 Medical Aubmc.
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 Medical Aubmc.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
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 Medical Aubmc in the Leadership & Managing People sector and impact the bottomline of the organization.
Weighted SWOT Analysis of AUB Medical Center: Achieving 2020 Vision (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 AUB Medical Center: Achieving 2020 Vision (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 AUB Medical Center: Achieving 2020 Vision (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 AUB Medical Center: Achieving 2020 Vision (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 AUB Medical Center: Achieving 2020 Vision (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 Medical Aubmc needs to make to build a sustainable competitive advantage.
