KPJ Healthcare Berhad: Strategic Management Project Analysis Report

This strategic management project analyzes KPJ Healthcare Berhad, a leading Malaysian healthcare provider. The project begins with an introduction to KPJ Healthcare Berhad, highlighting its core values, vision, mission, and objectives. The main body of the project provides a detailed SWOT analysis, examining the company's strengths (brand reputation, professionalism, continuous improvement), weaknesses (understanding competitors, business structure), opportunities (market expansion, technological advancements), and threats (market competition, technological advancements). The project also includes an internal factor evaluation (IFE) and external factor evaluation (EFE) to assess the company's key internal strengths and weaknesses, as well as external opportunities and threats. A competitive profile matrix (CPM) is also included to understand the competitive landscape. The project further analyzes the financial position of the company from 2017-2018, highlighting the net profit, gross profit, and revenue. The project concludes with an overview of the strategic management of the company, providing a comprehensive analysis of KPJ Healthcare Berhad's strategic position in the market.

STRATEGIC
MANAGEMENT PROJECT
2

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
1 Introduction of KPJ health care Berhad...................................................................................3
2 Analysis of the company .........................................................................................................4
3 Financial position of the company ..........................................................................................9
4 Strategic positions of KPJ healthcare Berhad .........................................................................9
CONCLUSION..............................................................................................................................10

INTRODUCTION
Strategic management can be referred as the management of all the strategies in order to
maintain the resources in the organization in order to achieve the goals of the company. This
includes the competitive environment, objectives and also the analysing the internal
organization. This report is based on the KPJ healthcare, which is leading Malaysian health care
service provider. This strategic management report will include the brief intro of the company.
This is also going to analyse the company's internal and external factors and competitive profile
matrix. With the help of the annual report 2017 – 2018 financial position of the KPJ company
will be analysed. And lastly strategic management of the company is going to be explained.
MAIN BODY
1 Introduction of KPJ health care Berhad
KPJ healthcare Berhad is the one of the leading healthcare service provider of Malaysia.
It was first introduced its private service in Johor in 1981. Core value of the company is its
safety, integrity, professionalism and its continuous improvement in the KPJ integrated work.
This healthcare private hospital consist 25 socialists hospitals in the different nations. This
currently has two hospitals in Indonesia and another sizeable share in hospital in Bangkok and
hospital in Bangladesh (Ansoff and et.al., 2018).
Vision — vision of the KPJ healthcare berhad to become the most preferable healthcare service
provider across the nation. Fundamental purpose is to deliver the exceptional healthcare
treatment, care and diagnose the patients effectively. They are dedicated to become the most
preferred healthcare provider of care with having the innovative technologies and most
experienced doctors and specialist in the hospitals, well trained staff who contribute in order to
deliver the best services in diagnosis and treatment plans.
Mission — Mission of the KPJ Berhad healthcare service provider is to deliver the best quality
healthcare services. To accomplish this mission of their company, they set the core value of the
KPJ healthcare service provider which is its safety, its courtesy, its integrity services,
professionalism services and all the operations and most important is continuous improvement in
their innovative services and operation as according to the changing technologies.

Objectives – The core objective of the KPJ healthcare hospital is to manage the internal control
system of the KPJ healthcare provider y managing the business risk, enhance the value of the
shareholder's and their investment and safeguards assets of the group.
Short-term and long term goals — Long term goal of the KPJ healthcare is to expand its
healthcare services by sustainable development and increase the growth of the company by the
year of 2020 (Ginter, Duncan and Swayne, 2018).
Short term goal of the hospital is to provide the best quality services by continuous
improvement in their healthcare services.
2 Analysis of the company
SWOT analysis – SWOT analysis of the KPJ healthcare provide the in depth strategic analysis
of the KPJ healthcare services business and operations. This includes the strength, weakness,
opportunities in the market and threats of the hospital in the market that create hurdles in the way
of growing more.
Strengths
 Strengths of KPJ healthcare are its core value that help the hospital to provide the best
quality services to their patients.
 Brand reputation of the KPJ is the biggest strength of the healthcare hospital which
accomplish all its vision by delivering the best quality services to diagnose the patients.
 Another strength of the hospital is its professionalism, that operate all the activities with
perfection that help the KPJ hospital to increase its profit share and preferable healthcare
provider across the Malaysia a well (Hill, 2017).
 Its continuous improvement in their services by applying the innovative technologies is
one of the key strength of the KPJ healthcare.
 One of the biggest strength of KPJ healthcare is that its strong market positioning and
leadership, as it is one of the leading private hospital network in Malaysia with having the
25 hospitals over the 2600 licensed beds.
 Quality services of KPJ is also the strong strength that shows the level of commitment of
the KPJ hospital.
Weakness
 One of the weakness of KPJ is a little weak in understand their competition and respond
to them. They do get effectively understand their competitor's strategies and their key

core value and services, accordingly can respond over their strategies as compare their
competitors.
 Another weakness of the KPJ health care is, its business structure and strategies. These
structure and strategies of the hospital create the hurdles in away to development of the
KPJ hospital and make them weak in the market as compared to the competitors in the
market available (Morden, 2016).
 Perishable medicine, as the medicine can not be used as after the expiry date, so the
inventory management of the KPJ healthcare hospital may have the weakness for the
hospital and can raise the challenge for the hospital, as it is the highly sensitive.
 Liquidity issue may also be the weakness of KPJ healthcare, as the cash problem in the
hospital will create the problem to the day to day operation of the KPJ healthcare. As the
cash is needed in every operation and transactions.
Opportunities
 There are number of opportunities in the market for the KPJ healthcare services like they
can explore and exploit the size of the hospital not only in Malaysia but in the other
countries as well (Engert, Rauter and Baumgartner, 2016).
 Investment in the technological advancement and its growth potential have the
opportunities in the market to increase its market share by giving the best quality and
innovative service to their patients.
 Another opportunity is that, demand of the healthcare service in the Malaysia is rapidly
increasing. Currently number and ratio of the people also increased who care about their
health in the Malaysia, this increased number of people who care about their health will
help the KPJ to expand its business and will increase the income of the KPJ healthcare
hospital in Malaysia and in other country as well.
 Malaysian government is planing to spur the growth of the medical tourism market, this
plan is just started abut can create the many ways to get success to the KPJ healthcare
service provider in Malaysia.
 As the Malaysian government doing well, and this income of the government has linked
with the progress of the country. As with the increased GDP value of the Malaysia will
help the KPG healthcare hospital to bring the best resources in their hospitals and can

increase the profit share and income of the KPJ healthcare hospital (Trigeorgis and
Reuer, 2017).
 Overseas market may also give the opportunities to KPJ healthcare hospital, as neighbour
countries also growing fast and can give the tremendous opportunities to the KPJ hospital
to increase and expand this business in other neighbour country as well.
Threats
 Competitions in the market in the healthcare industry are the biggest threat for the KPJ
healthcare service provider hospitals. As KPJ is little weak to respond to their
competitors.
 Technological advancement in the market is one of the strongest threat for the KPJ
healthcare hospital (Aguinis, Edwards and Bradley, 2017).
 Competitors like Pantai and Columbia have aggressively making strategies in order to
expand their business in Malaysia, these increasing competition in the market can be the
biggest threat for the KPJ healthcare.
 Availability of the low cost healthcare equipment may be the threat of the KPJ
healthcare, as many of the healthcare provide also manufacture the low cost healthcare
equipments, KPJ purchase all those equipments to treat the patients, then this will
negatively impact the image and services of the hospital.
Internal factor value evaluation
Internal factor evaluation is the tool that helps to evaluate and audit the major key
strength and weakness of the functional areas of the KPJ healthcare service provide or hospital.
By identifying the weakness and strength, KPJ hospital management can make improvement and
can take advantages from the help of their strengths.
Internal factor evaluation, Strength
NO. Items Score
1 Working toward improve the service quality 6.58
2 Generating competition among department 8.56
3 Encouraging the personnel 7.51
4 Using modern diagnosing and medical equipments 12.68
5 Skilled nursing staff 7.1

6 Having proper hospital staff 4.92
7 Access different medical services 5.27
8 Time limit to stay in the hospital 3.97
9 Bed utilisation in hospital 5.69
10 Practices to promote and secure the staff and patients 5.48
11 Timely delivery of services 7.19
12 Protecting the rights of patients 12.4
Internal factor evaluation, Improvable
NO. Items Score
1 Limitation of human capital in hospital 12.66
2 Lack of international promotion to attract foreigners 11.1
3 Manager's point of view toward inefficiency of
outsourcing services
10.08
4 Inability of managers because of legal limitations 15.02
5 Privatization of business problem for managers 9.7
6 Limitation contract with various insurer 13.04
7 Health risk 8.58
8 Limitation of decision making in hospital 10.4
9 Invest higher costs on the patients and other services 19.73
Final score 215.63
External factor evaluation
External Factor evaluation is also strategic management tool that helps to identify the
current business condition of the KPJ hospital. This also help to identify the opportunities and

threats in the market,. Which the KPJ is facing in the market. By analysing the threats and
opportunities KPJ hospital can make strategies to overcome those threats in the market.
External factor evaluation, Opportunities
No. Opportunities Score
1 Habits of using new modern equipments for
diagnosis and treatment
24.24
2 Government cost may reduce 24.98
3 Objective of the hospital in private sector and
opinion about it
25.35
4 Dynamics of the hospital to achieve the standard of
international
28.51
5 Need of outsource services in hospital and increased
interest in different areas
19.18
6 Increasing number of service quality 25.18
EFE External Factor Evaluation, Threat
NO. Threats Score
1 New and updated technological equipments in the
market adopted by competitions
10.24
2 Legal limitations in the hospital services 8.05
3 Limitations of expertise in the hospital 17.21
4 Limitation of knowledge about outsourcing 11.4
5 Private sector community and their attitude toward
profit
14.52
6 Lack of support from the human resource of the
organisation
12.82

7 Instability of the country's economic condition 15.23
8 Lack of structured rules and regulation in the
privatization field
16.23
9 Uncertainty regarding the capability of the private
sector
8.23
Final score 267.5
Competitive profile Matrix
3 Financial position of the company
KPJ has delivers the commendable performance in the year of 2017 and 2018 as
compared to the previous year. As the net profit of the KPJ healthcare hospital in the year of
2016 was 155,875 but this net income of the hospital, at the year of 2017 has increased by
166,910. Gross profit of the KPJ in the year of 2017 was 965,345 and its revenue was 3,179,998
at the end of the 2017 which has increased by its core value and continuous improvement in its
services.
In the year of 2018, net profit of the KPJ healthcare hospital was 186,185 and the gross
profit of the KPG was 1,018,771 and the total revenue of the KPJ hospital at the end of the year
of 2018 was 3,308,117. This has accountable improvement from the last year as they are
continuing improving the resources and technological changes in diagnosing the patients and
giving them the best quality services in order to achieve its mission and vision to become the
preferred healthcare services provider across the Malaysia as well.

4 Strategic positions of KPJ healthcare Berhad
To identify the strategic positioning of the KPJ healthcare provide hospital in the market,
BCG matrix can be applied. This is a strategic management tool that will help the KPJ hospital to
analyse the strategic position of the KPJ in the market. This tool consists the four major
components.
Star -The financial service of the strategic business unit in BCG matrix of the KPJ healthcare
provider of the Malaysia. IT operates in the potential market which have the growth in the future.
KPJ hospital earn significant amount of income from the strategic business unit SBU. This also
vertically integrated by acquiring the other firms in the supply chain, this will help the KPJ
healthcare to increase its profit share in the market. Brand strategic business unit is a star in BCG
matrix of the KPJ healthcare, this has 23% of market share in Malaysia.
Cash cow – The supplier management service, and it has been operated over the decade and KPJ
healthcare hospital has earned large amount of the revenue. The market share of the KPJ
healthcare service in Malaysia is high. Apart from this, KPJ healthcare service provider has more
innovative healthcare equipments that has the market share of 23%. this KPJ is one of the
leading market hospital that serves the best healthcare service to their patients (Zhao and et.al.,
2017).
Question mark – KPJ healthcare service provider has low market share in this segment of the
question mark. For this, KPJ healthcare hospital can invest more the research and development to
identify the more innovative features in their products. This will ensure that strategic business
unit can turn into the cash cow by bring more profit for the KPJ healthcare hospital. KPJ suffer
from the lose from the last few years as this has failed in research and development for this KPJ
can attempt the diverse team that prevent from the future loss.
Dog – The plastic bags strategic business unit is a dog in the BCG Matrix of the KPJ healthcare
service provider of the Malaysia. This strategic business unit has been loss for the last year, this
has been declined because of the environmental concerns (Hanson and et.al., 2016). The KPJ
hospital of The Malaysia can invest is to divest this strategic business unit and can minimize the
losses.
CONCLUSION
From the above study it has been analysed that KPJ healthcare is one of the leading
healthcare service provider in the Malaysia. Vision of the hospital is to be most preferable