Strategic Management for Mohammad Khalifa Healthcare Organisation
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This report explores the role of strategic management in the success of Mohammad Khalifa Healthcare Organisation and applies various matrices to formulate effective strategies for growth and development in the Qatar healthcare industry.
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Strategic Management
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Executive summary Strategic management plays an important role in the success of an organisation as it determines the way in which company can achieve its long term goals and objectives and also determine its competitiveness in market. It is important that effective strategy is selected so that the company can achieve its objectives in an efficient manner. In this report Mohammad Khalifa healthcare organisation is taken and various matrices are applied on it so that effective strategy can be formulated for its growth and development in the Qatar healthcare industry.
Table of Contents Executive summary..........................................................................................................................2 Table of Contents.............................................................................................................................3 Introduction......................................................................................................................................4 Main Body.......................................................................................................................................4 Background of organisation...................................................................................................4 Firm’s vision and Mission Statement.....................................................................................4 Aspirations and Future...........................................................................................................5 PESTEL..................................................................................................................................5 Competitive Profile Matrix (CPM)........................................................................................6 External Factor Evaluation (EFE) Matrix..............................................................................7 Internal strengths and weaknesses..........................................................................................8 Internal Factor Evaluation (IFE) Matrix.................................................................................9 SWOT Matrix.......................................................................................................................10 Strategic Position and Action Evaluation (SPACE) Matrix.................................................11 Boston Consulting Group (BCG) Matrix.............................................................................12 Grand Strategy Matrix..........................................................................................................13 Quantitative Strategic Planning Matrix (QSPM).................................................................15 Long-term objectives and specific strategies to achieve them.............................................15 Comparisons of long-term objectives and strategies to current...........................................16 Recommendations................................................................................................................16 Expected results....................................................................................................................17 Conclusion.....................................................................................................................................18 REFERENCES..............................................................................................................................19
Introduction Strategic management is related with planning, developing strategic visions and objectives so that effective strategies can be formulated and implemented which can help the company in achieving its objectives on time and in an efficient manner. Strategic management is important so that competitive advantage can be achieved in market by analysing the changing market conditions and forming strategies that can help in minimising their negative impacts. It also help in improving the awareness about the internal and external environment of business, efficient allocation of resources and improving the overall performance of an organisation(Ansoff and Ansoff, 2018). In this report a healthcare organisation is taken so that strategic management can be applied in that organisation which can help it in efficiently achieving its visions and goal and making its services efficient. Mohammad Khalifa healthcare organisation is taken in this report so that various strategies that can help it in realising its goals and objectives can be formulated. Also various models will be applied on the organisation so that issues faced by it can be dealt with in an effective manner. Further recommendations will be given so that the strategies of organisation can be effectively implemented. Main Body Background of organisation MohammadKahlifaisaprimaryhealthcareorganisationthatprovidesvarietyof healthcareservicestothepatientsrangingfromprevention,treatment,rehabilitationand palliative care so that overall fitness and well being can be achieved. It also focus on meeting the heathneedsofpeoplethroughouttheirlives,empoweringfamiliesandcommunitiesin optimising their health and forming policies and actions that can help in addressing the broader determinants of health. The organisation thus helps in providing healthcare and well being services to the society. Firm’s vision and Mission Statement Vision of Mohammad Khalifa healthcare organisation: To provide highly efficient healthcare services so that it can become the leader in transforming the heakth and well being of people of Qatar. Mission: The organisation aims at providing comprehensive and integrated health care services to people so that disease can be prevents and healthy lifestyle can be promoted amongst
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them. It also aims at improving the wellness of community by making their healthcare services highly effective and technologically advanced. Aspirations and Future Mohammad Khalifa healthcare organisation has many aspirations for the future which can help it in becoming leading healthcare organisation and also in providing high efficient services to the people so that their satisfaction can increase and well being of general public can be achieved: To be able to provide healthcare services 24*7 throughout the year so that effective healthcare services can be given to them at any point of time. It also aims at providing right information to people so that they can become more responsible towards their health and well-being. To give pro-active care to its patients so that its patients can heal fast and also a healthy lifestyle can be built in them(Hill, 2017). To be able to provide patient centred, comprehensive and coordinated healthcare services to its patients so that the trust of its patients and Qatar community can be achieved. It also aspire to be able to become highly integrated in the system so that healthcare services can be delivered in community location, closer to homes and workplaces. This will help them in reaching to their patients in a cost and time effective manner. PESTEL It is a strategic management tool which helps in analysing the external factors that affect businesses so that both the positive and negative impact of these factors can be analysed: Political: These are related with rules and regulations of the ruling government regarding trade tariffs, taxes etc. which affect businesses. The government of Qatar supports public health and give various subsidies to both public and private healthcare organisations so that better facilities can be given to them. This is beneficial for Mohammad Khalifa healthcare organisation as it will help in lowering the cost of organisation and it will be able to provide more efficient low priced services to the community. Economical: These are the economic factors of a country like unemployment rate, GDP, purchasing power of people etc. Qatar has a highly growing GDP in the world which means that the purchasing power of the people is high which can help the organisation in giving better healthcare and wellness facilities to the people.
Social: These are the factors related to the people of the country, their living standard, demographical features etc. The livings standard of people in Qatar is relatively high which means that the people are concerned about their health and wellness and are also willing to spend money for being healthy and fit(Morden, 2016). Technological: These are the factors which determine the technological advancement of acountry.ThegovernmentofQatarisspendingofimprovingitstechnological advancement which means that Mohammad Khalifa healthcare organisation can get highly advanced healthcare equipments and instruments at cheap rates which can help it in making its services more effective. Legal: These are the factors related with the laws and legal structure of a nation and Qatar follows strict laws in relation to businesses which means that the healthcare organisation need to follow all the country laws that can help in giving legal services to the patients. Environmental: The environmental factors of country like soil, water, pollution etc. determine the environment of the country. Environmental Protection Committee monitors the environmental issues in Qatar. As the air pollution in Qatar is more it leads to various health issues and so the healthcare organisations need to have all the equipments that can help in dealing with such health issues. Competitive Profile Matrix (CPM) It is a strategic tool which can be used in comparing an organisation with its competitors so that the relative strengths and weaknesses can be found out. CPM can help a company in determining the amount of competition which is present in market, its position in market and possible opportunities that can be grabbed which can help the company in gaining a competitive advantage. This matrix helps the organisations in identifying their key competitors so that the critical success factors of the industry can be used to compare the firm with its competitors (Torquati and Paffarini, 2018). Critical success factors (CSF) are the key attributes which are made up of both internal and external factors that determine the ability of an organisation to succeed in an industry. These factors will help in determining the performance of an organisation in comparison to its competitors by scoring the ability of an organisation in meeting these factors. Through this way the areas where an organisation needs to improve can be identified so that a competitive
advantage can be achieved. Following are the CSFs in healthcare industry in Qatar that will determinetheabilityofMohammadKhalifahealthcareorganisationindealingwithits competitors so that a leading position in health industry can be achieved: Criticalsuccessful factors WeightPrimaryHealthCare Corporation MohammadKhalifa healthcare organisation RatingScoreRatingScore Medical equipments0.15.30.4540.6 Number of beds0.1530.4540.6 Wellness facilities0.220.420.4 Brand reputation0..1540.620.3 Staff of doctors and nurses 0.220.430.6 Innovative tools and techniques 0.1540.630.45 Total1.002.92.95 In the above table the critical success factors that help the healthcare organisations in becoming successful in Qatar are listed and are rated and scored for Mohammad Khalifa healthcare organisation and its competitor Primary Healthcare Corporation. The Weight is assigned to all the factors from 0.0 (low importance) to 1.0 (high importance) to each of the CSFs. Rating on the other hand is given from 4 to 1 where 4 means major strength, 3 means minor strength, 2 means minor weakness and 1 means major weakness. Thus from the above CPM it can be said that Mohammad Khalifa healthcare organisation is performing better than its competitor in the market which means that it can achieve its aims and objectives in an efficient manner(Guță, 2017)(Fadrian and Arifin, 2018). The company can however improve on wellness facilities and its brand reputation so that a competitive edge can be achieved. External Factor Evaluation (EFE) Matrix It is a strategic tool which can be used by a company so as to analyse the external environmental factors that can affect its sustainability in market so that the possible opportunities and threats can be identified. Opportunities are the chances that exist in the external environment which can be grabbed by an organisation so that it can achieve a competitive edge in market with the available resources. Threats on the other hand can affect the existence of a firm in market and
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can affect its growth and development. External factors can be identified by the use of PESTLE analysis or CPM so that their impact on company can be analysed. Weight will be assigned to each of the factors ranging from 0.0 (low importance) to 1.0 (high importance) which will help in determining the importance of the factor for company to succeed in the industry(Schawel and Billing, 2018). Rating on the other hand will be given from 4 to 1 which will help in determining the ability of an organisation to respond to the opportunities and threats with its current strategy. 4 will mean that the response is superior, 3 will mean that the response is above average, 2- average response and 1- poor response. Following is a external factor matrix (EFE) of Mohammad Khalifa healthcare organisation which will help in determining the available opportunities and threats in market and the response of company towards them: Critical success factorsWeightRatingScoreTotal OpportunitiesNew and innovative facilities0.230.61.05 New trade agreements0.1510.15 Decrease in tax rate0.1520.3 ThreatsIncreasing cost of equipments0.1430.421.46 Increasing number of competitors0.1640.64 Decreasing availability of skilled staff0.220.4 Total1.00 From the above table it can be said that the response of Mohammad Khalifa healthcare organisation towards its threats and opportunities is good that can help the company in gaining a competitive edge in market as it can easily deal with the threats and grab the possible opportunities in market. This can help the organisation in being successful and sustainable in market so that it can continue to provide its services in an efficient manner. Internal strengths and weaknesses It is important that the internal strengths and weaknesses of an organisation are known which can help it in taking advantage of the strengths in its growth and development while effective measures can be taken so that the weaknesses can be reduced. This can help the organisation in being successful in dealing with competition so that it can grow and develop efficiently in market. Following are the internal strengths and weaknesses of Mohammad Khalifa healthcare organisation:
Strengths: The organisation has a large number of customer base and also its brand image in market is strong which help it in efficiently attracting a large number of customers for healthcare and wellness services. The company also has good number of beds for its patients and also the medical equipments used by organisation are innovative and highly advanced(Singh, 2016). Weaknesses: The organisation finds it difficult to provide a range of wellness facilities as there is a shortage of pool of eligible candidates having the required skills that can help the company in giving effective services to its patients. Internal Factor Evaluation (IFE) Matrix It is an effective tool that can be used by an organisation so as to perform an internal auditwhichcanhelpinevaluatingvariousfunctionalareaslikefinance,marketing,IT, operations, HR etc. so that the internal strengths and weaknesses of an organisation can be found out. This can help the organisation in gaining an overall view of its internal strengths and weaknesses so that it can use its strengths to its advantage which can help it in becoming highly competitive in market. The weaknesses that are found can be minimised by taking appropriate steps so that the company can become more efficient and use its resources in an efficient manner. The company can also mobilise all its strengths and resources in gaining a competitive advantage in martlet so that a strong brand image of company can be formed(Gupta, Gupta and Gupta, 2019). The weight attribute of an IFE matrix indicates the importance of a factor for an organisation to become successful in industry and the weight is given from 0.0 (low importance) to 1.0 (high importance). Rating on the other hand is given from 4to 1 where 4- major strength, 3- minor strength, 2- minor weakness and 1- major weakness. An IFE of Mohammad Khalifa healthcare organisation is given below which help in determining its strengths and weaknesses so that it ability in becoming successful can be determined: StrengthsWeightRatingScore 1)Number of beds in the organisation for patients0.1540.6 2)Availability of highly innovative equipments0.1530.45 3)Overall wellness and fitness services to patients0.230.6 Weaknesses 1)The number of wellness facilities0.210.2
2)Marketing for improving the brand image0.1520.3 3)Availability of highly skilled doctors and nurses0.1510.15 Total1.0 From this table it can be said that the strengths of Mohammad Khalifa healthcare organisation are 1.65 while the total score of its weaknesses is 0.65. This means that the strengths of the organisation are more than its weaknesses which can help it in being successful in the market in an efficient manner. SWOT Matrix This is a strategic management tool which is used by an organisation so that it can identifyitsinternalstrengthsandweaknesseswhichcanhelpitintakingtheavailable opportunities in market and dealing with threats so that it can survive efficiently in market. Following is the SWOT analysis of Mohammad Khalifa healthcare organisation which is located in Qatar: Strengths The organisation has a large capacity of beds to accommodate a large number of patients at a single point of time. It is well known for providing overall wellnessandfitnessfacilitiestoits patients. Weaknesses The wellness facilities that are provided by the organisation are limited. The marketing strategies of company are not very effective. Opportunities Improvingeconomicconditionsin Qatarisimprovingthepurchasing power of people. Increasingtherangeofwellness facilities. Threats Increasingratesofinnovativeand advanced medical equipments. Lowering of the pool of highly skilled doctors and nurses who can be recruited by the organisation.
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Strategic Position and Action Evaluation (SPACE) Matrix It is analytical tool which is used in strategic management and planning so that the internal and external environment of an organisation can be analysed and effective strategies can be formulated so that the business can survive successfully in the market. The external environment will be described using the criteria of: Environmental stability: It is determined by various factors like inflation rate, pressure from the competitors, technological change etc. Industry attractiveness: The attractiveness of industry depends on factors like growth potential, financial stability, capacity utilization etc. The internal environment will be described using the criteria of: Competitive advantage: Various factors that can help an organisation in gaining a competitive advantage are product quality, innovation cycle, customer loyalty etc. Financial strength: The financial strength of a company depends on factors like return on investment, liquidity, debt ratio etc. Following are the strategic positions that can be achieved by a company on the evaluation of its internal and external environment along with the strategic behaviour that can be executed by them: Aggressive: It means that the industry is attractive and stable and the company can gain a competitive advantage in market by increasing its market share through acquisitions and expansion(Abdelrahim, 2017). Competitive: The environment is attractive and relatively unstable and the company can improve its production efficiency to improve its position. Conservative: The industry is stable with low growth rate which means that the company can launch new products so that it can expand in market. Defensive: The industry is unattractive and company lack competitive products and financial resources which means that the company can consider leaving the industry.
Mohammad Khalifa healthcare organisation belong to the healthcare and medical care industry which is an attractive and relatively stable industry which mean that the organisation can gain a competitive advantage in market by expanding its market share. The company can increase its reach to the patients so that they can be given effective services at their homes and workplaces which can help in making the brand image of company strong. Boston Consulting Group (BCG) Matrix BCG matrix is a framework which was created by Boston Consulting Group which help an organisation in evaluating its strategic position of its brand portfolio and it’s potential(El Hajj and Khaja, 2016). Thus this matrix can help the company in considering the growth opportunities by reviewing its portfolio of products so that decisions regarding investment or divestment can be made. The matrix divides the complete business portfolio into four categories based on the attractiveness of industry and the competitive position.
Market share: This dimension can be used by the company in evaluating the ability of a company in increasing its sales so that high cash returns can be earned. This dimension also determines the market share of the company in market and the number of customers the business is able to attract. Market growth rate: This helps in determining the rate at which market is growing which can help the businesses in increasing their profits. However the investment which needs to be done by businesses to grow in market is more which can affect its overall profits. Based on the BCG matrix there are following four quadrants which determine the combination of relative market share and market growth: Dogs: Both the market share and market growth are low which means that they generate low or negative cash returns which means that the companies can divest or liquidate these businesses. Cash cows: These are the most profitable brands and should be milked by companies so as to gain as much cash as possible which can be invested into stars to support their further growth. Product development, diversification etc. can be done in cash cows so that more cash can be generated(Benmansour, 2019). Stars; These operate in high growth industries and have high market share. They generate cash and also use a lot of cash for their growth. Market penetration, market development etc. are the strategies that can be used by businesses for their stars. Question marks: These have low market share in fast growing markets which mean that they consume a lot of cash and can incur losses. However they have potential to gain market share but they do not always succeed. Businesses can follow the strategies of market penetration, market development or divestment. As per the BCG matrix Mohammad Khalifa healthcare organisation belongs to the cash cow category as it has low market growth and the market share is high which can help it in increasing the generation of cash and creating a high brand reputation in market. Grand Strategy Matrix It is a matrix that can be used by organisation so that strategies can be formulated which can help them in growing in the competitive market along with identifying their competitive position in the market so that appropriate strategies can be formed based on these combinations. Based on this matrix the company can formulate strategies in four quadrants:
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Quadrant I: The companies which fall in this category have a very strong strategic position and can take use of their competitive advantage so that they can increase their profits. The strategies that can be used in this quadrant are product development, market development and market penetration which can help it in becoming highly competitive in market(Abdelazi and Cameron, 2016). Quadrant II: These organisations belong to rapid growing industry but do not have sufficient resources so that a competitive advantage can be gained. The strategies which can be used by such businesses are horizontal integration, liquidation or divestment. Quadrant III: The organisations that belong to this quadrant have slow market growth and also have a weak market position. Retrenchment can be applied to these businesses so that the funds can be applied to other growing businesses. Quadrant IV: The organisations belonging in this quadrant belong to slow growth industry but they have a strong competitive position in market. The strategies that can be applied by these businesses are joint ventures, conglomerate diversification etc. so that it can make use of its competitive position in market(Paravattil, Kheir and Yousif, 2017). From this matrix it can be said that Mohammad Khalifa healthcare organisation belong to the first quadrant as it has a competitive advantage in the industry and also can take the advantage of providing high quality medical and healthcare facilities to grow rapidly in the market of Qatar. Quantitative Strategic Planning Matrix (QSPM) It is a matrix that can be used by organisations so that alternative strategies can be found which can help in evaluating them and selecting the best possible strategy for the organisation.
This matrix extracts the information from two stages which are: 1) the input stage and 2) the matching stage. The input stage is based on EFE matrix, IFE matrix and CPM while the matching stage include TWOS matrix, SPACE matrix, BCG matrix, Grand strategy matrix. All these matrices can be analysed by the managers so that the most suitable strategies can be chosen for the organisation. Following stages are included in the QPSM: Internal factors: At this stage the internal strengths and weaknesses of the organisation are identified. External factors: At this stage the opportunities and threats that are present in the external environment are identified(Webe and Malick, 2017). Strategy alternatives: After analysing both the internal and external factors the strategies that can be used by the company are analysed. Weighting the factors: The strategies that are identified are weighed on the basis of their ability in making the company competitively advantageous in market is selected. Attractiveness scores: The scores are evaluated based on their attractiveness so that the best possible strategy can be selected. Do the math: Based on the scores the highest scoring strategy is selected by the organisation. Long-term objectives and specific strategies to achieve them These are the goals that are set by an organisation and are to achieved in the long run and generally work as the mission statement of the organisation. The time frame set for achieving these goals is usually between two to five years and the company has to continuously apply its strategies so that it can work towards achieving these goals. Following are the strategies that should be used by the company to achieve these goals: Set SMART goals: It is important that clear and specific goals are set so that effective action can be taken in order to achieve these goals. It will also help in making clear the direction in which organisation has to move forward. Connecting long term goals with the core values: The long term goals must be aligned with core values of company so that all the employees can be motivated towards achieving these goals in an efficient manner.
Dividing the long term goals in small goals: The long term goals must be divided into short goals as they are easy to be achieved and also give a clear idea on how these goals are to be achieved(Li and Luo, 2016). Managing time: Time management is an important factor which helps in achievement of long term goals and it should be efficiently managed so that the achievement of goal can be made effective. Continuously evaluating the effectiveness of strategies: The effectiveness of strategies of company should be continuously evaluated so that their ability in achieving company goals on time can be determined. Comparisons of long-term objectives and strategies to current The long term objectives of Mohammad Khalifa healthcare organisation are to be become the leading healthcare services in Qatar so that high quality and effective medical and healthcare services can be provided to the patients that can help in improving their experience. The current strategies which are applied by the organisation are rapid development of its services, market expansion and improvement of its overall healthcare facilities so that they can reach to all their patients and can increase their convenience(Wang and Li, 2016). Based on the internal and external factors of the company it can b said that it has a high growth potential and by using its strengths to its advantage it can achieve its long term objectives in an efficient manner. The company can use its critical success factors in an efficient manner so that the company can become highly competitive in the industry. This can help the business in strategically expanding in market and increasing its market share so that a strong brand image can be created and more number of customers can be attracted so that its sales can increase. Recommendations The recommendations regarding application of strategy can be effectively implemented in company by applying management strategies that can be applied throughout the organisation and in its all departments so that an integrated approach on application of strategies can be applied. It is important that the financial needs of the application of strategy are identified so that appropriate amount of budget can be allocated which can help in effective application of the strategy. After analysing all the above matrices the strategy that can be recommended for the growth and development of Mohammad Khalifa healthcare organisation is product development which can help it in making its products and services better which can help it in gaining a
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competitive advantage in market. In order to develop the services give by company all the departments need to be involved so that sufficient resources can be accumulated which can then be utilised in the application of product development strategy. Following are the departments that will be involved in the organisation: Management: The management of the company is responsible for allocating resources amongst various departments so that required resources can be made available to the department. In order to develop the services of organisation it is important that resources like highly advanced technology, staff member with skills and talents required etc. are made available for efficient application of the strategy. Finance: This department help in arranging for the available budget so that product development strategy can be efficiently implemented which can help in improving the competitiveness of the company. R&D: The R&D department will help in gaining knowledge about the market position of the organisation and also the necessary improvements which must be done in the company products so that a strategic advantage can be achieved. Marketing: The marketing department can help the organisation in creating a brand image of the company in market by efficiently marketing about the company’s products and services so that more number of customers can be attracted. This will help the healthcare organisation in reaching to a large number of customers so that efficient services can be given to them. The organisation can thus implement the strategy of product development by applying the above recommendations so that it can gain the objectives in the long run and can also achieve a competitive advantage in market which can help it in expanding its market. It will also help the business in its market growth so that the market share can also be increased which can help in it growth and development and making it better in the medical and healthcare industry. Expected results The results that are expected after the application of the product development strategy are: The healthcare organisation can improve its services so that better services can be provided to the customer which can help in increasing their satisfaction and increasing the customer base of the company.
It can help the organisation in gaining a competitive advantage in market as highly effective services with advanced technology and equipments will be provided to the patients which will improve their health quickly and create brand image of the company in market. It will help the organisation in becoming a leader in healthcare services so that its long term goals can be efficiently achieved and it can become highly attractive in the market. Conclusion From the above report it can be conclude that strategic planning plays an important role in determining the position of a company in market so that its ability to achieve a competitive edge in market can be analysed. The company can use various matrices so that its strengths and weaknesses and its ability to deal with opportunities and threats in market can be analysed which can help it in reaching to a strategy so that it can achieve it long term goals. Mohammad Khalifa has a strong market position in market and also has a potential to further grow which means that product development strategy can be applied in the organisation which can help it in achieving its objectives efficiently. It will also help the company in becoming more competitive so that high brand image can be built and the sales and profits of company can be increased.
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