MGT 6203: Case Study on Strategic Management at Innovative HealthCare

This case study analyzes Innovative HealthCare Inc. (IHC), a home health business. The analysis includes a SWOT assessment, identifying IHC's strengths (specialization, high-quality work), weaknesses (lack of training), opportunities (knowledgeable owners), and threats (competition). Internal Factor Evaluation (IFE) and External Factor Evaluation (EFE) matrices are presented, evaluating key internal and external factors. The study examines IHC's strategy of providing specialized healthcare services, its target market (elderly and disabled), and financial performance (ROA, ROE, current ratio). It also includes a revised mission statement, and discusses the impact of internal and external factors. The report provides a comprehensive overview of IHC's strategic position and financial health.

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student
Name of the University
Author’s Note

1STRATEGIC MANAGEMENT
Table of Contents
Requirement 1............................................................................................................................2
Requirement 2............................................................................................................................3
Requirement 3............................................................................................................................4
Requirement 4............................................................................................................................5
Requirement 5............................................................................................................................5
Requirement 6............................................................................................................................6
Requirement 7............................................................................................................................6
References..................................................................................................................................8

2STRATEGIC MANAGEMENT
Requirement 1
Strengths
 Specialization of IHC in the areas of physical therapy, occupational therapy, speech
therapy and various nursing services is a major strength since it helps IHC in catering
to the vast healthcare need of their patients.
 Providing high quality of work is a key strength of IHC.
 Major growth of IHC over the years is a strength of IHC.
 High retention rate is a major strength that helps in increasing the performance and
productivity of IHC.
 Adding employees in the areas of occupational and speech therapy provides IHC with
the opportunity to expand their business operations.
 Use of technology helps IHC in maintaining their work flow even in the presence of
brick and mortal location (Hill, Jones & Schilling, 2014).
Weaknesses
 Lack of effective training programs for the employees is a major weakness which
makes the inefficient and unproductive.
 Several claims of patients regarding the lack of effective care from the end of the
caretaker is another key weakness of IHC.
 The presence of the cases of sexual harassment within IHC is a key weakness of the
firm.
 Lack of intention of IHC to repair the wheelchairs event in the presence of good
financial condition is a key weakness of IHC.

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Opportunities
 The presence of knowledgeable and skilful owners will provide IHC with the
opportunity to develop effective business strategies.
 High annual revenue, sparking reputation and increased employee base provides IHC
with the opportunity to expand in near future.
 Specialization in the above-mentioned areas provides the opportunity to serve a large
customer base.
Threats
 The Affordable Care Act (ACA) is a major threat for IHC due to the presence of
many financial deductions for the medical professionals.
 The presence of intense competition in the health care industry is posing major threat
for IHC since the company can loss the market share to their competitors like Care-
For-All, US Health and others (Rothaermel, 2013).
Requirement 2
Internal Factor Evaluation (IFE)
Sl.
No. Key Internal Factors Weight Rating
Weighted
Score
Strengths
1
Specialization in the areas of physical therapy,
occupational therapy, speech therapy and
various nursing services 0.15 4 0.6
2 High quality work 0.1 2 0.2
3 Major growth over the years 0.1 1 0.1
4 High rate of retention 0.08 2 0.16
5
Adding employees in the areas of occupational
and speech therapy 0.08 1 0.08
6 Use of advanced technology 0.09 1 0.09

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Weaknesses 0
7 Absence of training programs for employees 0.13 4 0.52
8 Lack of care of the patients from the caretaker 0.1 2 0.2
9
Cases of sexual harassment within the
organization 0.1 2 0.2
10 Lack of intention to make the necessary repairs 0.07 1 0.07
Total 1 2.22
External Factor Evaluation (EFE)
Sl.
No. Key External Factors Weight Rating
Weighted
Score
Opportunities
1 Knowledgeable and skilful owners 0.2 2 0.4
2
Business expansion due to high revenue,
reputation and increased employee base 0.25 4 1
3
Opportunity to serve wide customer base for
specialized areas 0.2 3 0.6
Threats 0
4 Presence of Affordable Care Act (ACA) 0.15 3 0.45
5 Presence of intense competition 0.2 4 0.8
Total 1 3.25
Requirement 3
As per the provided case, the main strategy of IHC is to provide specialized
healthcare services to the elderly and disabled people for increasing the quality of life of their
patients and the company has taken all the relevant steps to achieve this strategy (Ansoff et
al., 2018). For instance, IHC has made them specialized in the areas of physical therapy,
occupational therapy, speech therapy and various nursing services so that all kinds required

5STRATEGIC MANAGEMENT
medical service scan be provided to their target customers. In order to ensure this, IHC has
ensued the presence of adequate staffs and systems.
Requirement 4
Internal
 The specialized services provided by IHC are impacting the company most in positive
manner since these services are helping the firm in providing the required healthcare
services to the elderly and disabled. This positive aspect can be capitalized through
adding some more specialized services as per the need of the patients.
External
 The presence of intense competition is affecting IHC the most negatively. In order to
change this, IHC is needed to come up with more innovative as well as specialized
healthcare services within affordable range so that everyone can afford their
healthcare services (David & David, 2013).
Requirement 5
As per the provided case, the elderly and disabled persons are the target market of
IHC. In Dallas, total elderly people including male and female are 255,384. The age group of
this target market is 65 years and over. Most of these people are veterans who are retired
professionals, businessmen and servicemen. The average yearly income of this target group is
$25,335. This target market includes married couple, female household with not husband and
householder living alone. The educational status of this target market is less than high school
graduate, high school graduate, some college associated degree and bachelor’s degree
(factfinder.census.gov, 2019).

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Requirement 6
It is required to revise the current mission statement of IHC since all the nine
components of mission statement are not included in the current mission statement. The
revised on is as follow:
“To create and establish a well-known iconic name (8) in the health care field (3) that cares
for those who are elderly and disabled (1) with our technologically advanced (4) specialized
healthcare services (2). IHC is founded upon principles of trust and care (7) and exhibits
these two principles each day in caring for our patients (6). Our focus is to increase the
quality of living for our patients while ensuring high profitability (5) and care for employees
(9), and to make the communities we serve a better place to live”
Requirement 7
ROA
ROA help in measuring how efficiently a company is managing it assets for the
purpose of producing profit (Khadafi, Heikal & Ummah, 2014). It can be seen from the above
that IHC has efficiently used their assets that has yielded high return on assets. This is a
favourable financial condition for the firm.
ROE

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ROE measures the efficiency of a company in generating profit from the investors of
the shareholders (Ichsani & Suhardi, 2015). The above table shows high ROE of IHC which
indicates that the company has been able in generating three times return from the investment
of the shareholders. This is a positive financial condition for the company.
Current Ratio
Current ratio measures the ability of a company to pay off their current business
obligations with the current assets (Zygmunt, 2013). Since the current ratio of IHC is more
than 1, it implies that the company has adequate current assets for paying off their current
liabilities for once. This indicates towards the effective liquidity position of the firm.

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References
(DADS), D. (2019). American FactFinder - Results. Factfinder.census.gov. Retrieved 12 July
2019, from
https://factfinder.census.gov/faces/tableservices/jsf/pages/productview.xhtml?
src=bkmk
Ansoff, H. I., Kipley, D., Lewis, A. O., Helm-Stevens, R., & Ansoff, R. (2018). Implanting
strategic management. Springer.
David, F. R., & David, F. R. (2013). Strategic management: Concepts and cases: A
competitive advantage approach. Pearson.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an
integrated approach. Cengage Learning.
Ichsani, S., & Suhardi, A. R. (2015). The effect of return on equity (ROE) and return on
investment (ROI) on trading volume. Procedia-Social and Behavioral Sciences, 211,
896-902.
Khadafi, M., Heikal, M., & Ummah, A. (2014). Influence analysis of return on assets (ROA),
return on equity (ROE), net profit margin (NPM), debt to equity ratio (DER), and
current ratio (CR), against corporate profit growth in automotive in Indonesia Stock
Exchange. International Journal of Academic Research in Business and Social
Sciences, 4(12).
Rothaermel, F. T. (2013). Strategic management: concepts. New York, NY: McGraw-Hill
Irwin.
Zygmunt, J. (2013, March). Does liquidity impact on profitability. In Conference of
informatics and management sciences, March (pp. 38-49).