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Strategic Thinking in a Hospital Setting

Strategic Thinking in a Hospital Setting

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About the Book

Chapter 1: IntroductionThis book focuses on the different strategic directions commonly adopted by strategists in different industries. The different strategic views conceptualized in health care in addition to a crafted strategic framework that can be used to draw a summary of the market competitive dynamics will be described. Once the strategist has chosen the strategic direction for its firm, a strategic plan must follow. The application of the most common strategies used in other industries to develop and sustain a competitive advantage are discussed with special focus on Porter's strategies, namely low-cost leadership and service differentiation. Last, but not least, eight strategic tactics are discussed thoroughly with special attention to the operational initiatives, indicators, and goals of each. In the last two chapters, the author highlights the application of Porter's strategies in a set of Lebanese hospitals with emphasis on the limitations, constraints, and correlation factors between types of strategies used and performance of these hospitals.
Chapter 2: Strategic Directions and ViewsTwo main strategic views are traditionally used in various industries including health care; these include the positional view and the resource-based view. In the positional view, strategic planning primarily lies in envisioning the position of the medical institution in the healthcare arena. The main competitive advantage lies in its current position in the market that mandates proper understanding of the various industries' attributes as well as the competitive forces that shape the position of the institution and its long-term profitability. The main industry attributes analyzed in health care are the rate of growth and profitability, geographic accessibility, strategic alliances, in addition to the weight and impact of technological innovation on its performance. An equally important strategic view is the resource-based view, where strategists look within the institution at its resources and capabilities in an attempt to develop new competencies that are of strategic relevance. The main question to be answered is "what are we good at" and how can we leverage on our competencies to expand our market share and grow further. This view is more commonly adopted in unstable environments characterized by turmoil, which makes industry attractiveness an elusive strategic start.
Chapter 3: Porter's Strategies in Healthcare: 3.1: Choice of StrategyTwo types of strategy, namely cost leadership and differentiation strategy in their focused and broad applications, have been used to co-op with the changes in the healthcare environment. Differentiation strategy is about the provision of a service or a product with distinctive attributes that are of added value to the patient. It is about meeting patient's needs by providing patient-centered care with state-of-the-art technology and expertise. One accepted approach is improving the level of offering vis-à-vis the key success factors or improving the final or intermediate healthcare outcome measures by differentiating the existing services and/or creating new ones. Cost leadership strategy, on the other hand, means to be the lowest cost producer in the industry. The competitive advantage is derived from widening the gap between the cost of production and what the patient is willing to pay. This entails minimization of cost in various operational fields, business restructuring, and revamping of the overall cost structure. A basic approach is catalog activity and value chain analysis, where each service is disintegrated into a set of activities and the corresponding cost drivers are analyzed in relation to the overall cost, to the customer's need and market segment.
Chapter 4: Sources of Competitive AdvantageA hospital possesses a compet
About the Author: A. L. Hamdan, MD, EMBA, MPH, FACS, is medical director of strategy and innovation at American University of Beirut Medical Center in Beirut, Lebanon. Dr. Hamdan also serves as professor and head of the Division of Laryngology in the Department of Otolaryngology Head and Neck Surgery.


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Product Details
  • ISBN-13: 9783319535968
  • Publisher: Springer
  • Publisher Imprint: Springer
  • Edition: 1st ed. 2017
  • Language: English
  • Returnable: Y
  • Spine Width: 6 mm
  • Width: 156 mm
  • ISBN-10: 331953596X
  • Publisher Date: 27 Mar 2017
  • Binding: Paperback
  • Height: 234 mm
  • No of Pages: 86
  • Series Title: Springerbriefs in Public Health
  • Weight: 209 gr


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