KFSH Strategic Planning: External Analysis and Competitive Advantage

This discussion post presents an external analysis of the King Faisal Specialist Hospital and Research Centre (KFSH), examining its strategic planning process. The analysis highlights the importance of understanding the external environment, particularly focusing on social, political, economic, and technological factors using a PESTEL framework. The post identifies opportunities and threats, such as government support, funding competition, and technological advancements. The analysis also incorporates the importance of competitive strategy and the need for the hospital to focus on its core strengths in genetics, oncology, and transplantation. Furthermore, the post includes a critique of the planning process, emphasizing the need for a patient-centric approach and a robust referral system. The author references relevant literature to support their observations and provides insightful commentary, contributing to a comprehensive understanding of the challenges and opportunities facing KFSH in a dynamic healthcare landscape. The discussion emphasizes the importance of adaptability and the ability to learn faster than competitors as a key to sustainable competitive advantage, as well as providing recommendations for the hospital's planning process.

Discussion 1. External Analysis
“The ability to learn faster than your competitors may be the only sustainable
competitive advantage” (Economy, N.D)
Analysis of KFSH’s strategic planning process showed a particular level of
myopic thinking, an example of which is the inessential furniture budget. The
analysis showed modest identification of, where as an organisation, their skills lie-
genetics, oncology and transplantation. Focus in theses areas will lend itself to the
successful implementation of the revised plan.
The implementation of the PEST or PESTEL analysis tool (below) identified
KFSH’s largest area of opportunity lay with the social aspect of the macro-
environment. Implementation of competitive strategy through the ability to perform
clinical practices superior to their rivals would cement the longevity of the
organisation (Ginter, 2018)
Opportunities Threats
P -Lack of Government support. Shows
favourability towards the Military style
Hospitals
-Potential or coincidence the KFSH plan
was leaked by the Ministry?
-Segregation of male and females at
conference limiting discussion/planning
-Saudi Arabia continuing to invest E -Threat to funding as ‘other hospitals’ are
and grow their health services gaining a better reputation in clinical areas
- ‘Specialist Centre’
-Increased competition for funding from
“ other secondary or tertiary centres
-Another hospital has submitted a request
for carbon-ion therapy unit
S
-Appointment of consultant with inside -Rural. Locals struggle
knowledge on developments to assess services
-Population expectancy to grow -Potential reduction in birth rates
-Demographic changes

-Potential for increase in poor health
-Increase in consanguinity in marriages making
Living donor organ transplants feasible
-Increase in 26 medical schools
-Need to increase national bed base
T
-Able to take advantage of new technologies - Unable to integrate into referral
and advanced clinical practice in some areas system
-Proposal for £80M carbon-ion therapy unit
Furthermore, it was evident from the context the Ministry favoured the Military
Hospital. Could ‘tapping into’ non-government funding mitigate the political
insistences and increase the organisations flexibility? (Meyer, 1992)
References
Economy, P. (N.D) Highly Successful Business Leaders. Online at
https://www.inc.com/peter-economy/20-brilliant-quotes-on-comptetion-from -highly-
successful-business-leaders.html [Accessed 9th July 2019]
Ginter, P.M. Duncan, W.J. Swayne, L.E (2018) The Strategic Management of
Healthcare Organizations. New Jersey: Wiley. Online via the vital bookshelf
[Accessed 9th July 2019]
Meyer, C.A (1992) A step back as donors shift institution building from public to the
‘private’ sector. Science Direct 20 (8) 1115-1126, Online at
https://www.sciencedirect.com/science/article/abs/pii/0305750X9290004f [Accessed
10th July 2019]

Hi Kimberley,
Nice observation, indeed the planning is myopic in many ways, ideally the planning
for a large scale hospital; the logistics should be drawn in accordance with the
carrying capacity of the units. The carrying capacity for each unit should be
calculated in accordance with the intentions of the planners whether they want to
deliver “ value-based services” or “ volume-based services” to the
patients(Sands,2012). It should have relevance to the geographical area or the
location where the hospital is going to serve.
The Analysis of “S” and “T” in your analysis also confirms the same point. If this
hospital is not friendly for the local population then, in this case, it is a failure. The
term hospital refers to emergency conditions and it is the right of local people to get
easy access to this place. The Principle of distributive justice also supports it. The
“T” head of your PESTAL analysis says that the hospital fails in developing a
“referral system.” This fact confirms the myopia of the planners because here they
failed miserably in creating a proposed profile of the treatments offered by this huge
unit that has the potential to become a landmark in the city because of its
infrastructure.
Sands, L. (2012). The volume of Home- and Community-Based Services and Time to Nursing-Home
Placement. Medicare and Medicaid Research Review, (Online ) Available at
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4006382/. Accessed 12-07-19.