Strategic management Article Example | Topics and Well Written Essays - 750 words - 1

Strategic management - Article Example Issues such as higher volume of patients catered through limited capacity in the emergency room as well as the lack of adapting new technologies have made it relatively difficult for the hospital to keep pace with the larger hospitals. Recruiting and retaining skilled physicians as well as nursing staff at relatively affordable cost was another operational issue faced by hospital. Due to the structural changes in the healthcare industry overall availability of the physicians declined due to reduction in their wages. It is also important to note that the increasing influence of the managed care organizations is also sited as one of the operational issues faced by EMC. The overall influence of the managed care therefore is forcing the hospitals to offer services at reduced costs. Strategic Options Available One of the key elements to be explored before EMC can make any strategic move is the understanding of the external environment of hospital. Over the period of time the changes which have taken place largely were regulated as well as driven by competition. A closer analysis of the competitive environment suggests that most of the players were non-profit organizations with focus on developing extensive network to gain the competitive edge in the market. The essential nature of the competition therefore may force EMC to look for the options which can allow it to exploit the established network of different direct as well as indirect players in the market influencing the overall outcome in the market. One of the most important strategic actions which EMC can take is to merge with any competing HMO in order to take advantage of the core competencies of other organization. Since most of the organizations are non-profit organizations therefore hospital can also achieve the required level of synergy with relative ease. Further, the utilization of the existing technology of the bigger player would enable it to overcome its traditional weakness of adapting to the new te chnology in slow manner. This would further allow the hospital to become better equipped to reduce the number of complains also. It is also important to note that the merger with any other HMO will also provide an opportunity to gain access to the larger base of medical and health care services providers such as physicians and nurses. This would therefore can allow broadening the overall scope of services offered under one roof. Another important strategic option which may be considered is to maintain the status quo and initiate a program of change. President Moeen however, would require drastic changes in the way hospital is managed. This would require taking a holistic view of the operational challenges faced by the hospital and than taken on a systematic strategic approach to utilize the core competencies of the hospital to gain the required momentum to achieve the growth. Recommendations In order to overcome the operational challenges as well as to make EMC a competitive force w ithin the area, President Moeen can take on the drastic changes to further rationalize the cost while at the same time maintaining the status quo. This would involve looking for new ways and methods to further rationalize the cost while at the same time ensuring that the hospital continues to expand. In order to achieve this, it would be better if the hospital look for more financing