ASSIGNMENT 2

Case study
Student Name: My Ngoc Tran
Student ID No.: 23624836
Unit Name: Strategy and Case Analysis
Unit Code: BUSN6005
Tutor’s name: Ms Martie Riemer
Assignment No.: 2
Assignment Title: Case Study
Word count:
Due date: 15th August
Date submitted: 15th August
I. Introduction
To gain and sustain competitive advantages in the market, the internal and external
environments of companies play an instrumental role in doing business. Without one of
them, the organizations will not succeed in the marketplace.
This essay is going to discuss the internal and external environments of Gold Coast
Psychiatric Hospital (GCPH). Based on the case study, we will find the strengths and
weaknesses of GCPH as well as the problems it has. There are three main parts of this
essay. Firstly, we will talk about the external strategic positioning in the early day.
Secondly, we will discuss the external environment in the later day. Finally, we will
look at the internal elements.
II. Case study
1. In the early days
1.1 Analyze the external strategic positioning of GCPH in the early days
To analyze the external strategic positioning of GCPH, I will use Porter's outside-in
position strategy. This strategy is looking at the outside of GCPH to determine its
strategies such as differentiation or cost leadership. In the early day, their
customers were private, so their strategic target is a segment. Their strategic
advertising focused on low-cost leadership because their medical forms of therapy
were favorable. Based on these things, their strategic position focused on low-cost
leadership.
1.2 Analyze the external environment
1.2.1 PESTEL
Now we are going to look at the macro-environment of the organization and we
will use the PESTEL analysis to determine its positions strategy. Based on the
GCPH case in the early days, PESTEL analysis will be displayed as bellow:

Medical forms of therapy were favorable compared to other Economic-

institutions (1979-1990) opportunity
All patients were private (1979-1990) Social- threat
Society matured to the problems of mental health during the Social-threat
70’s and 80’s
Medical types of treatments were used exclusively by hospital Legal- threat
(1990-1995)
There were inadequate resources to train technical and nursing Economic-
personnel (1990-1995) threat
The classical, doctor-patient treatment required large numbers of Social- threat
psychiatrists, was costly

1.2.2 Porter’s 5 forces Industry analysis

 Now we are looking at threats and opportunities created by the existing competitors in the
early day of GCPH which had direct influences on the business. Porter’s Five Forces
analysis is a method to analyse the level of competition within a certain industry. In this
case, we will focus on the healthcare industry. Based on this analysis, the competition of
this industry depends on five basic forces: existing industry rivalry, threat of new entrants,
bargaining power of buyers, threat of substitute products and bargaining power of
suppliers.

Low=1; med=2; high=3 Rating Reason

Threat of new Entrants Low to New entrants need to have professional

medium physicians, nurses and staff.
It requires lots of money to build infrastructure
and medical equipment.
Bargaining power of suppliers Medium In the early days, medical forms of therapy
were used
Bargaining power of buyers Low

Threat of Substitutes Low

Threat of competitive rivalry High

Overall conclusion on competitive

forces in the industry

275 hung vuong , hoa thanh

1.2.3 CAGE analysis

2. Later years
2.1.1 PESTEL
 Milieu therapy was more economical Social-
opportunity
There are two schools of psychiatric thought in GCPH: the Social- threat
traditional approach and milieu approach
Something had to be done to improve patient care through a Social-
fund-raising campaign. opportunity
The number of public patients had increased substantially Social- threat
(1990-1995)

Funds gathered during 1994 were insufficient to substantially Economic-

improve treatment (1990-1995) threat

Small funds were asked to begin conferences and classes to Social-

educate the nursing staff about better methods of patient care opportunity
The implementation of milieu therapy was applied as a trial in Social-
the outpatient day hospital only. opportunity
In 2000, the technical and nursing staff went on strike Social- threat
Operating costs were escalating in late 2000s Economic-
threat
Profits were down in late 2000s Economic-
threat
Staff moral was even lower Social- threat

2.1.2 Porter’s 5 forces Industry analysis

2.1.3 CAGE analysis

3. Internal elements