Strategic Management in Health Care Management

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What is Strategy? It is mostly agreed that strategy is the most fundamental part of success. Planning could be part of strategy which guides a particular area of desired activity or program to achieve its goals. Competition is always inclined with strategy, but the real face of strategy is not to compete. The worst part of the leader's way of thinking nowadays in strategy is to compete with rivals of their line in the industry on the same side of the coin. They tend compete for them to be the top, but strategy is not the way it is. To be unique or to stand out and approach differently in the world that full of competition is the true sole of strategy. Strategy is the position of yourself in the question of how are you going to achieve a certain goals, or the possibilities of achieving it. Strategy helps us to think about the advantages and disadvantages of a certain action that we are about to do or planning to do. Strategy can be a vision of our plans. Strategy can be aspiration of your future goals. Strategy can be the course of action to make use of your advantages to your rivals.

What is strategy? Definitely it is not just more than a plan. Strategy is like our parents that thought us what is right or wrong. It helps us to define our position in the crucial part of decision making. Strategy is the vision of our future course of action to achieve our short-term or long-term goals. Strategy is an essential tool in leadership, they use strategy to adjust and fix everything to make sure everything will be working effectively and will flow smoothly according to the plan.

Main Body

How to Manage Strategy

In planning your own strategy in a certain type of situation like in marketing of your company, strategy needs to be planned in order to put it in motion or implementation. Strategic planning comes place in this manner, this will help you to define the objectives and assessment and identification of the problem or plan, implementation of the strategy, evaluation of the result, and recall the said steps for the adjustments if necessary to achieve desired goal. It's the basic model of planning, implementing, and evaluation of your strategy.

In the said basic model, planning your strategy needs the result of your assessment on the desired action and deals with factors that affect your decision making of what is good and the best for your interest.

The mission of your planned strategy is your overall goal, or the desired achievement. This includes the main core values and purpose of your plan looking forward to the future for the improvement and development of your company. It will guide your vision to open new opportunities in the future.

The assessment of your planned strategy plays a big role in decision making. It will help you to identify your company's strengths and weaknesses for the proposed strategy. This will measure the possibilities of your company if is it achievable or it needs more plan to put it on track. It will also help you to identify new opportunities and possible threats to your company if persisted to put it on track. There are several models on how to assess the said factor in decision making and it will be explained further in the research. In this segment of this basic model, it will direct your concerns to identify what will be your further appropriate action before putting it on implementation.

After this part of the model, the formulation of your actions is born based on the objectives, goals, and assessment of the planned strategy. You cannot put implementation in action if you have no actions formulated. From the assessment, you will use the advantages of your company and maximize it to over-rule your rivals in the long run. With the assessment formulated, you now have the idea what will be the disadvantages and this will help you in formulating your actions smoothly and according to plan. Competitive advantage is widely talked about in this part of the basic model.

The formulated action is then put into track and implemented by means of your activities, programs, budgets, and procedures. Implementation involves the working partnership of the organization and your resources such as the individuals that are involve in the strategic plan to achieve your desired goal. Putting it into action takes a particular time scale according to your assessment from short-term goal to your long-term goal.

The process in which how you're planned strategy is being implemented will give you big significance on the possibilities whether your planned strategy will be successful and achievable.

Lastly, the implementation of the planned strategy will be monitored for your evaluation. This will help you to evaluate your implementation and your overall planned strategy if it is working according to your set of goals and objectives. In this manner it will help you also to determine when you are going to put on adjustments if needed.

Evaluation consists of the following steps:

Assess the parameters to be measured

Assess the target values and objectives for those parameters

Perform and conduct your measurements for those parameters

Compare your results and evaluate

Conduct necessary changes if applicable

Assessment of Micro-environment in company

Micro-environment in your company is the advantages of your resources to put into system. This is the factors that can be manipulated and control to provide full satisfaction to your customers. Hence the main objective of this assessment is to make incomes and profits by the use of your customer's satisfaction. The identification of the factors is the most important key players and will give great impact on the planned strategy. This will guide you hot to make use of your resources that will outrun your rivals from your strengths. From the assessment of micro-environmental in the company, we will name the factors that give impact on the planned strategy.

First is the company itself, the primary force that deemed the micro-environment is the role of the company. Management of the company is subject for the main objectives from simple aims to overall goals of the company. They have to practice good management that will be responsible for achieving the company's policies, strategies, and their mission. One factor of the management is the decision making of the key players in the company. Parameters created by the head of the company must be the frame of every decision and must not over-rule their policies. Another factor in the management is that the key players must practice team work. Working in partnership will increase the possibility of achieving their goals if key individuals are involved in the planned strategy. The company overall must think what will be the best for their fans, the customers.

Second are the suppliers, in the assessment of the resources that the planned strategy will be needing, suppliers part are the key in providing them what are their needs. Without suppliers, the company will not run on the competition and will be over-run by its rivals. In this factor also, the monitoring of the supplies is crucial in terms of stocks available for a certain number of demands and its price trends.

Third are the marketing intermediaries, this factor is the role of distributors and promotion of its products. This part is crucial especially we are talking about the implementation part of the planned strategy. This part of the planned strategy is the dissemination of the products to the target consumers.

Fourth are the customers, the target of the planned strategy are the consumers. The satisfaction of the consumers is the main objective of the company. They must assess and identify the target customers; product must meet the satisfaction of the consumers.

Fifth are the competitors, all the companies' faces a wider range of competitors in the world of business. A company must ensure its security for their strategic advantages over rivals by positioning their products that will meet the consumers' satisfaction and to be successful in the marketplace. There is no single planned strategy will suite for all companies. The essence of uniqueness must be put on top of their goals.

Lastly is the public, this is the main body of group that has an actual or potential interest in or impact on the company's strengths to achieve its overall goal. A company should provide a marketing plan for all of their major publics as well as their customer markets.

Assessment of Macro-environment in company

This is a condition in which the existence of the company in the economy as a whole, compare to a particular sector or region. In general, this type of environment will tackle the trends in gross domestic product, inflation rate, employment, spending, and other factors that contribute to it. The macro environment is likely linked to a general business cycle, as opposite or disadvantages of the performance of a company.

This is the major threat and could be an uncontrollable factor that gives greater influence to the planned strategy decision making, and it will also affect its overall performance and strategies of the company. These factors include the Political and legal factors, Economic factors, Social and cultural factors, and Technological factors. These factors are usually called P.E.S.T; the reason why it is abbreviated in this manner is for them to remember it easily as "pest" literally gives a threat in a community. These are also the same in the companies.

Political and legal factors refer to government policies that are for example changes in such ways that will accumulate the degree of intervention to cope up the economy. The prime concern of these factors is the companies itself. Companies are involved in operations internationally will faced with the additional factors that will affect their performance in different dimensions because of international political developments. Since many companies' does export and imports, they may have joint connections or partnership of companies abroad. In the world of marketing operations, changes are in such volatile conditions and must have clear monitoring on the political situations. In short, whenever industries and the companies are involved in, development in the political and legal area at both the domestic and international levels can affect the performance of the company that is why it needs to be fully understood.

Economic factors refers to the changes in the world economic forces and are potentially highly important to marketing world, especially to those companies those who are engaged in international marketing. It is also significantly important the understanding of economic changes and forces in the domestic economy because it is also a vital importance and thus such forces have the greater impact. Its main concern to marketing world is because they are likely to influence the company's strategies, among other things, like demands of the consumer, availability of the resources, profits and etc. These economic factors are largely outside the control of the company, but their effects on individual enterprises can be profound. Political and economic forces are often strongly related.

Social factors refers to the developments in social trends that can be significantly impact on the demand of the consumers for a company's products and the availability and willingness of the resources and the individuals involve to work. In the UK, a good example, the increase population of aged individuals. In this manner there was been an increased of the costs of the manufacturers who committed to provide the pension payments for the pensioners. The aged population also has impact on demand: for example, demand for sheltered accommodation and medicines have increased whereas demand for toys is falling. This is probably the most difficult factor of the macro-environment to evaluate, from the development to the increased number of demands itself in changing likes and dislikes, the purchasing behavior of the individuals affects the strategic plan as well as the changing of priorities. The type of goods and services demanded by consumers is a function of their social conditioning and their consequent attitudes and beliefs.

Technology factor is the biggest macro-environmental factor in the model; it has influenced the greater number of developments in varieties of the products that we take for granted nowadays, like, television, calculators, video recorders, mobile phones, laptops and desk-top computers. Marketing firms themselves play a part in technological progress, many having their own research department or sponsoring research through universities and other institutions, thus playing a part in innovating new developments and new applications.

Competitive Environment

The world of business is inclined with competitiveness to each other. The survival of the fittest takes place within the companies that are rivals in providing demands from the consumers. But what is the role of competitive environment in strategy? Its all because of the demands of the customers. As what we said earlier, the main goal of the companies is the satisfaction of the consumers. With the development of our era, demands of the consumer changes and develop too. With the direct competitors of such demands, influence in competitive strategy is put on fire. The rivalry of the companies to give the best demand of the consumers portrays the competitive environment. The development of demands gives a crucial factor in developing new products by competitors that will provide new demands of the consumers and will emerge a new channel of distribution. With the development of demands and development of new product comes the new values of customer is on the rise.

A competitive and environmental analysis of your markets should include all the key influencing factors that affect the way in which you can compete. A competitive review is important for two reasons.

Firstly, even if you know what the customers want and have the resources to meet the customers' demands, it may be that the competitive environment means that it is not worth pursuing particular parts of the market for a whole range of strategic reasons, such as the threat a price war, channel conflict, or legal or ethical considerations.

Secondly, you need to know if your competitors are doing things better than you are, or more dangerously, whether they are looking to change the basis of competition in the market, for instance by moving to a direct sales model, or by introducing some revolutionary new product or technology.

Porter's Five Forces

The model of pure competition implies that risk-adjusted rates of return should be constant across firms and industries. However, numerous economic studies have affirmed that different industries can sustain different levels of profitability; part of this difference is explained by industry structure.

Michael Porter provided a framework that models an industry as being influenced by five forces. The strategic business manager seeking to develop an edge over rival firms can use this model to better understand the industry context in which the firm operates.


In the traditional economic model, competition among rival firms drives profits to zero. But competition is not perfect and firms are not unsophisticated passive price takers. Rather, firms strive for a competitive advantage over their rivals. The intensity of rivalry among firms varies across industries, and strategic analysts are interested in these differences. When a rival acts in a way that elicits a counter-response by other firms, rivalry intensifies. The intensity of rivalry commonly is referred to as being cutthroat, intense, moderate, or weak, based on the firms' aggressiveness in attempting to gain an advantage.

Threat of Substitutes

Substitute products refer to products in other industries. To the economist, a threat of substitutes exists when a product's demand is affected by the price change of a substitute product. A product's price elasticity is affected by substitute products as more substitutes become available, the demand becomes more elastic since customers have more alternatives. A close substitute product constrains the ability of firms in an industry to raise prices.

Buyer Power

The power of buyers is the impact that customers have on a producing industry. In general, when buyer power is strong, the relationship to the producing industry is near to what an economist terms a monophony - a market in which there are many suppliers and one buyer. Under such market conditions, the buyer sets the price. In reality few pure monopsonies exist, but frequently there is some asymmetry between a producing industry and buyers.

Supplier Power

A producing industry requires raw materials - labor, components, and other supplies. This requirement leads to buyer-supplier relationships between the industry and the firms that provide it the raw materials used to create products. Suppliers, if powerful, can exert an influence on the producing industry, such as selling raw materials at a high price to capture some of the industry's profits.

Threat of New Entrants and Entry Barriers

It is not only incumbent rivals that pose a threat to firms in an industry; the possibility that new firms may enter the industry also affects competition. In theory, any firm should be able to enter and exit a market, and if free entry and exit exists, then profits always should be nominal. In reality, however, industries possess characteristics that protect the high profit levels of firms in the market and inhibit additional rivals from entering the market. These are barriers to entry.


Strategy is a complex system of planning, implementing and evaluating. The great influence of competitiveness in the world of business plays a big role in developing the ways of providing the needs of the consumers and to meet their satisfaction. In this research, I found out that in every plans of a certain type of product or activity will depend on the needs or demand of the user and with the spice of competition to other rival individual that will race me to provide a product that will satisfy the consumer needs puts a big challenge to create a product that is planned to be made to over-rule, and to be unique to your rivals in the world of competition.