INTERNAL FACTORS
Strategic Management
Strategic Management of Health Care
Organizations 2nd
(W.Jack Duncan, Peter M. Ginter, Linda E.
Swayne)
1 Organizational Culture
It is defined as the "implicit, invisible, intrinsic and
informal consciousness of organization which
guides the behaviour of individuals. In short, it is
the customary way of doing things.
2 Clinical Capacity
Operations Staff (physicians, nurses, and
technicians).
Information and Intelligence (information-
system for clinical staff and among clinical
departments).
Technical Capabilities
Medical diagnosis, treatment, and laboratory
technologies for high-quality treatment of
patients.
Physical facilities to assure high-quality and
comfortable patient care.
Synergy (clinical staff understand and share the
common goal of quality patient care).
3 Administrative Support Capacity
Administrative Staff (managers, clerical support,
data processing staff)
Information and Intelligence (information-
system for administrative, effective inventory-
control, purchasing information system, and
human resources management system).
Strategic Management
(Gregory G. Dess, Alex Miller) (Hunger, Wheelen)
Primary Activities Value Chain Analysis
1 In bound logistics Primary Activities
Soundness of material and inventory control Inbound logistics (raw material handling and ware
systems housing)
Efficiency of raw material warehousing activities Operations (machining, assembling, testing)
2 Operations Outbound logistics (warehousing and distribution
of finished product)
Productivity of equipment compared to that of key
competitors
Marketing and sales (advertising, promotion,
Appropriate automation of production processes pricing, channel realtions)
Effectiveness of production control system to Service (installation, repair, parts)
improve quality and reduce costs Secondary Activities
Effeciency of plant layout and wok-flow design Firm infrastucture (general management,
3 Outbound logistics accounting, finance, strategic planning)
Timeliness and efficiency of delivery of finished Human resource management (recruiting,
goods and services training, development)
Technology development (R&D, product and
Efficiency of finished goods warehousing activities
process improvement)
4 Marketing and sales Procurement (purchasing of raw materials,
machines, supplies)
Effectiveness of market research to identify
customer customer segments and needs Functional Analysis
Innovation in salespromotion and advertising Organizational structure
 Strategic Management Strategic Management
Strategic Management of Health Care
(Gregory G. Dess, Alex Miller) (Hunger, Wheelen)
Organizations 2nd
(W.Jack Duncan,and
Information Peter M. Ginter,
Intelligence Linda E.
(information-
Swayne)
system for administrative, effective inventory-
control, purchasing information system, and
human resources management system). Evaluation of alternate distribution channels Corporate culture
Technical Capabilities Motivation and competence of sales force Marketing (market position and segmentation,
Latest technology available to administrative
marketing mix, product life cycle)
support staff. Deveopment of an image of quality and a
Staff qualification for adequate quality-support favorable reputation
system. Finance (financial leverage and capital budgeting
Extent of brand loyalty among consumers budgeting)

Synergy (clinical staff understand and share the

common goal of quality patient care). Extent of market dominance within the market Research and development (R&D Mix and
segment or overall market Technological Competence)

4 Financial Capacity 5 Customer service Operations (operating leverage, experience

Financial Staff (qualification and numbers)
Information and Intelligence (financial
information system and data base for financial
performance).
Means to solicit customer inputs for product
improvements
Promptness of attention to customer complaints
curve, flexible manufacturing)
Human resources (use teams, union relations,
and quality of work life)

Technical Issues Appropriateness of warranty and guarantee Information systems (purposes and phases of
Degree of financial liquidity (liquidity ratios) policies development)
Operating margins
Financial structures Quality of customer education and training
Financial leverage
Financial growth Ability to provide replacement parts and repair
Tax planning services

Synergy (to support other units for what they Secondary Activities
need from finance).
1 Human resources management

5 Marketing Capacity Effectiveness of procedures for recruiting,

training, and promoting all levels of employees

6 General Management Appropriateness of reward systems for motivating

and challenging employees
Management Staff
Strategic management diverted into short-term
orientation. A work environment that minimizes absenteeism
Delegating authority and decision-making skills and keeps turnover at desirable levels
Effective motivation and leadership
Absenteeism and turn over rates
Budgeting system
 Strategic Management Strategic Management
Strategic Management of Health Care
(Gregory G. Dess, Alex Miller) (Hunger, Wheelen)
Organizations 2nd
(W.Jack Duncan, Peter
Management Staff M. Ginter, Linda E.
Swayne)
Strategic management diverted into short-term
orientation. A work environment that minimizes absenteeism
Delegating authority and decision-making skills and keeps turnover at desirable levels
Effective motivation and leadership
Absenteeism and turn over rates Relations with trade unions
Budgeting system
Activate participation by managers and technical
personnel in professional organization
Information and Intelligence
Two-ways flows of information
Up-to-date and inspirational leaders Levels of employee motivation and job
Motivational vision satisafaction
Technical Issues
Goals, procedures, and reward system 2 Technology development
Performance evaluation
Organization structure well designed Success of research and development activities
Job description well (in leading to product and process innovations)
conceived
Role model for nonmanagerial personnel
Quality of working relationships between R&D
Synergy (functional subsystems operate as a personnel and other depatments
team rather than as indivudual units).
Timeliness of technology development activities
in meeting critical deadlines

Quality of laboratories and other facilities

Qualification and experience of laboratory

technicians and scientists

Ability of work environment to encourage

creativity and innovation

3 Procurement

Development of alternate sources for inputs to

minimize dependence on a single supplier

Procurement of raw materials (on a timely basis,

at lowest possible cost, a acceptable levels of
quality
 Strategic Management Strategic Management
Strategic Management of Health Care
(Gregory G. Dess, Alex Miller) (Hunger, Wheelen)
Organizations 2nd
(W.Jack Duncan, Peter M. Ginter, Linda E.
Swayne)

Procedures of procurement of plant, machinery,

and buildings

Development of criteria for lease versus purchase

decisions

Good, long-term relationships with reliable

suppliers

4 Firm infrastructure

Capability to identify new-product market

opportunities and potential environmental threats

Quality of the strategic planning system to

achieve corporate objectives

Coordination and integration of all activities

associated with the value chain among
organizational subunits

Ability to obtain relatively low-cost funds for

capital expenditurees and working capital

Level of information systems support in making

strategic and routine decisions

Timely and accurate information for management

on general and competitive environments

Relationships with public policy makers and

interest groups

Public image and corporate citizenship

Strategic Management of Health Care
Organization
(Edwin, Gerald, Irna, Lydia)

Additional Services
1 Website

2 Cafes

3 Internet café / Hot Spot

4 Mini store

5 Telecommunication facilities

6 Bakery

7 Hotel
OPERATIO 0.2
GENERAL 0.2
FINANCE 0.2
MARKETIN 0.2
ADDITION 0.2