Arab Academy MBA Project: Health Sector Analysis in Egypt

This project provides a comprehensive analysis of the Egyptian Ministry of Health and Population (MOHP), focusing on strategic planning within the health sector. The analysis includes an overview of the existing vision, mission, and proposed vision for 2030. It utilizes various strategic tools such as Porter's Five Forces, PESTEL analysis, EFE and IFE matrices, the Resource Based View, SWOT matrix, TWOS, Space Matrix, BCG Matrix, and QSPM to assess the external and internal environments. The project recommends strategies including intensive strategies like market development and penetration, expansion via joint ventures, outsourcing, and digitalization. It also explores the Blue Ocean Strategy, short-term and long-term objectives, and key performance indicators. The project concludes with recommendations for change management, a balance scorecard, and general recommendations for the MOHP to improve its performance and achieve its goals. This MBA project contributes to the understanding of strategic management in the healthcare industry.

Arab Academy for Science & Technology & Maritime Transport
Arab Academy Graduate School of Business
MBA – Cairo Campus
A Comprehensive Analysis on Health
Sector in Egypt –Egyptian Ministry
of Health and Population
Submitted by, 17224574
International Business
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Table of Contents
1 Introduction 3
2 Business units 4
3 Existing Vision 4
4 Existing Mission & its Assessment 4
5 Proposed Vision 2030 5
6 Industry /Task (External) Environment 5
(Five Forces Analysis) 5
6.1.1 Threat of new entrants: 6
6.1.2 Rivalry among existing firms: 6
6.1.3 Threat of Substitute Products or Services: 7
6.1.4 Bargaining Power of Buyers: 7
6.1.5 Bargaining Power of Suppliers: 7
PESTEL Analysis 8
6.1.6 Political 8
6.1.7 Economical 8
6.1.8 Social 8
6.1.9 Technology 9
6.1.10 environmental 9
6.1.11 Legal 10
Situation Analysis Tools 10
6.1.12 External Factor Evaluation (EFE) Matrix 11
6.1.13 Internal Factor Evaluation (IFE) Matrix 12
6.1.14 The Resource Based View 16
6.1.15 SWOT Matrix 19
6.1.16 TWOS & Proposed Strategies 20
6.1.17 Space Matrix 23
6.1.18 BCG Matrix 25
6.1.19 Quantitative Strategic Planning Matrix (QSPM) 26
7 Recommended Strategies/ tactics 28
Intensive Strategies (Market Development) 28
7.1.1 Recommended Key performance indicators for (Market Development). 29
Intensive Strategies (Market Penetration) 29
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7.1.2 Recommended Key performance indicators. 30
Expansion using Joint venture strategy 31
7.1.3 Recommended Key performance indicators. 31
Outsourcing 32
Digitalization 32
7.1.4 Internally 32
7.1.5 Externally 34
8 Blue Ocean Strategy 34
9 Short Term Objectives/ Goals 35
10 Long terms Objectives. 36
11 Recommended Key performance indicators for MOHP. 37
Change Management 37
12 Balance Score Card 39
13 General recommendation 42
14 References 42
1 Introduction
This paper encloses the work on analyzing the case of Egyptian Ministry of Health and
Population ,Building an Innovation Center & putting steps for the recommended strategic
plan.
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Egyptian Ministry of Health and Population is one of the oldest pillars of the governmental
sectors , which formed initially in 1936 with a lot of functions and activities.
Ministry of health are managing all the Public Health insurance , Ministry of Health
Hospitals , Primary Health units and Vacsera Vaccination Centers which manage the
human and animals Vaccine and Blood bank
Also Its manage some inchiatives to decrease number of infected people with virus C and
early detection of cancer breast and curing poliomyelitis .
Egyptian Ministry of Health and Population has its own budget which increased year by year
till it reach about 254 Billion EPG (Budget 2020) which consider 5% of the Whole Egypt
Budget and expecting to be increased rapidly due to the pandemic Covid 19.
Knowing that Health is the main pillar for pushing the Egyptian Economy to be in a good
shape , As it is directly affecting the key factory which the human body.
And due to the Pandemic the world will be new visions for importance of health for all
citizen and increase quality of systems and Improve the infrastructure of primary and
secondary health care centers and its main connectivity with the Global digitalization’s and to
get use of the Digitalization in data mining to have best control deceases and predict the
different scenarios in virus spreads.
2 Business units
MOHP is composed for Main Business units as follow:
1. Primary units: which is located in each small Village
2. Public Health insurance
3. Ministry of Health Hospitals.
4. Vacsera Vaccination Centers
3 Existing Vision
“Protecting the Health of the Egyptian citizen using medical treatment, preventive
vaccine and increase the quality of Service Provided through ministry network.
Also minimize the infection rate using predictive analysis.
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4 Existing Mission & its Assessment
 Global strategic plan for Medical Sector in alignment with Global Country
Direction.
 Securing the upgrading of the Ministry entity to be UpToDate in technology
and equipment’s
 Insuring of local inventory management for critical items and assets in case of
any pandemic.
 International cooperation and Foreign affairs in alignment with Global
Country Direction.
 Insuring the connection between scientific research in all health sectors with
the local Country Vission
5 Proposed Vision 2030
All Egyptians enjoy a healthy, safe, and secure life through an integrated, accessible,
high quality, and universal healthcare system capable of improving health conditions
through early intervention, and preventive coverage. Ensuring protection for the
vulnerable, and achieving satisfaction of citizens and health sector employees.
This will lead to prosperity, welfare , happiness, as well as social and economic
development, which will qualify Egypt to become a leader in the field of healthcare
services and research in the Arab world and Africa .
6 Industry /Task (External) Environment
(Five Forces Analysis)
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Porter's Five Forces is a framework for analyzing a Ministry competitive
environment.
6.1.1 Threat of new entrants:
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There are Low barriers to the new entrants (Competitors) such as: Private clinical services,
Medical Complex centers and chartable Hospitals as the Rate of Growth of the business is
high and demand increased due to increase of rate of awareness in society healthcare.
6.1.2 Rivalry among existing firms:
The current rivalry with the MOPH is so Complex due to Presence of dual Economy in our
Country, which means that we have upmarket people which seek for high quality and service
which mainly go to the private medical sectors
and down-market people which seek for Cheaper service with moderate quality. Which
mainly targeting the charity hospitals.
6.1.3 Threat of Substitute Products or Services:
The threat of substitutes is low in the short term but has the potential to increase. Due to
increase of all kind of accepted medical service that can alternative to same service quality.
Like herbal remedy using the traditional cure methodology which have good Results in some
cases with low cost alternative to the standard medical treatment.
6.1.4 Bargaining Power of Buyers:
Bargaining power of buyers within the MOHP lies primarily on the Social level for the
patients, as the up market segments required high level of service and quality without respect
to the cost , that’s why meeting their expectation is mandatory to have sustainable business
with such customer.
Also they required a special type of preventative vaccines without respect to Price which
mean that they have easy switching cost for alternatives in case of advanced treatment.
On the other side the down-market level required cost optimized service that meet the min
requirements
6.1.5 Bargaining Power of Suppliers:
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Bargaining power of Suppliers have low bargaining power in the MOHP. The Demand on the
medical equipment’s and Medical Supplies are very high with limited number of suppliers,
And lack of local procedures for equipment’s and supplies
Also governmental laws, regulation and restriction for importing the foreign Supplies from
Our side the Country.
PESTEL Analysis
Is a framework or tool used to analyze and monitor the macro-environmental
(external environment) factors that have an impact on an organization.
PESTEL stands for:
6.1.6 Political
Political factors play a significant role in determining the factors that can impact
Healthcare as :
 Anti-trust laws related to Hospitals
 Political stability and importance of Hospitals sector in the
country's economy.
 Trade regulations & tariffs related to Healthcare
 Risk of military invasion
 High level of corruption Index ( 105/180 transparency international
organization)
6.1.7 Economical
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The Macro environment factors such as – Economic Growth rate , Inflation rate (6%.
“CBE June 2020”) and currency devaluation, interest rate, foreign exchange rate and
unemployment rate (9.2% - Covid 19 effect. “CAPMAS May 2020”) affect the
Healthcare sector , as it define the amount of money that shall be send from the
citizen in the Health segments and prioritize Health in the second priority and which
level of service and quality will be determined depend on his income.
6.1.8 Social
Society’s culture and methods of doing things impact the culture of an organization in
an environment. Shared beliefs, habits and thoughts of the population play a great
role Healthcare sector.
 High percentage in illiteracy 25.8%. “CAPMAS 2017”
 Population spread 58% o in rural places while 42% in urban.
 Class structure , culture barriers and power structure in the society which
affect required level of service.
 Education level as well as education standard in the Healthcare segment.
6.1.9 Technology
These are related to innovations and changes in technology which have a direct
impact on the Healthcare sector, Specially the new technological trends as Cloud
solutions, Big data and Globalization.
Also following pillars are affecting directly the Sector as follow:
 Recent technological developments by specialized Healthcare companies.
 Technology's impact on product offering which give variety of selections.
 Impact on cost structure in Hospitals industry using different Application and
software to optimize the operations and increase Productivity.
 Power of new social media application and technology.
6.1.10 environmental
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This factor most commonly includes all that influences or is determined by the
surrounding environment , pressure of Social media and governmental rules and
restrictions.
The ecological factor generally takes into consideration the environment in which
business is being carried out. It includes, the weather, the climate, the global
changes in climate, the ground conditions, environmental offsets, etc.
Also Waste management in Healthcare sector and how to get ride of these waste
materials (recycling) which is very Harmful to environment and Global direction
toward “green” or ecological products.
6.1.11 Legal
the legal framework is not robust enough to protect the mental property rights of an
organization. That’s why the following Points shall be taken in consideration -
 Anti-trust law in Hospitals sector and in the country.
 Discrimination law
 Copyright protection
 Employment laws
 Health and safety law
 Data Protections law
Situation Analysis Tools
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6.1.12 External Factor Evaluation (EFE) Matrix
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An external factor evaluation (EFE) matrix allows strategists to summarize and
evaluate economic, social, cultural, demographic, environmental, political,
governmental, legal, technological, and competitive information.
The below is an EFE Matrix for Healthcare sector.
Key External Factor Weight Rate Weighted
score
Opportunities
New life style for (Medical Tourism , plastic and
cosmetic surgery).
20% 4 0.80
External funding opportunities Specially from WHO 20% 4 0.80
High population Growth rate 5% 3 0.15
New technologies and tools had the potential to change
development cost and time , Also improving the
productivity and diagnostics
5% 3 0.15
Threats
Belt-tightening situation after Covid 19 pandemic 5% 3 0.15
Product substitution with alternatives solution Both high
quality and low cost service
15% 4 0.40
Skill level of workforce and low wages scheme 10% 3 0.30
Inflation rate and devaluation 10% 3 0.30
Power of suppliers Both Medical equipment’s and
medical supplies
10% 2 0.20
TOTAL 100% 3.25
Note: The ratings values are as follows: 1 = response is poor, 2 = response is below
average, 3 = above average, 4 = superior.
As indicated by the total weighted score of 2.5, MOHP has less than average
ability to respond to external factors.
6.1.13 Internal Factor Evaluation (IFE) Matrix
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