QUESTION ONE
Background
Specifically, the porters five model is a tool that is widely used to identify and understand where power lies in a given corporation or institution. With such understanding, an organization is capable of capitalising on its strengths, improving its weaknesses, and avoiding costly mistakes. The key elements of the model include the buyer power, supplier power, the threat of new entrants, competitive rivalry, and the threat of substitutes (Dobbs, 2014). The healthcare organization that I choose for the healthcare organization that I choose for this assignment is Johns Hopkins Hospital.
Barrier to Entry
Health facilities are confronted with relatively high barriers to entry because the government regulates the medical industry. According to government rules and regulations, hospitals cannot be constructed or established in any given area, especially if there is another health facility in the region. Furthermore, the initial capital outlay is also very high, which acts as a barrier to entry into the healthcare entry. As a result, the high barriers to entry protect the position of Johns Hopkins Hospital (“Johns Hopkins Medicine Fast Facts”).
Supplier Power
Johns Hopkins Hospital does not have significant control over its suppliers. Biomedical and drug companies supply it with medical equipment and medicines. Some of the companies may choose not to supply theme with the required medicines and equipment. However, this is not a large threat because there are many suppliers in the market (“Johns Hopkins Medicine Fast Facts”). Most medicines also have generic substitutes; therefore, the hospital faces less supplier power as the competition in the market makes them powerful. Due to its high purchasing power, it has more rights to bargain with suppliers (“Johns Hopkins Medicine Fast Facts”).
Buyer Power
Most patients are satisfied with the services they receive at Johns Hopkins Hospital. The clients or customers have a relatively low buyer power (“Johns Hopkins Medicine Fast Facts”).
Availability of Substitutes
There are other hospitals that can act as substitutes in the Baltimore area. Specifically, Johns Hopkins Hospital must always strive to provide quality and affordable prices to maintain its competitive advantage. In the event that the services are compromised, clients can seek services in other Hospitals located in the Baltimore regions (“Johns Hopkins Medicine Fast Facts”).
Competitive Rivalry
Hospitals are essential in any community. Notably, there are always very few hospitals in any given regions. In this case, there are few hospitals in Baltimore area; therefore, Johns Hopkins Hospital does not face any meaningful competition. The available hospitals cater to the customers’ different needs and preferences. Therefore, they work collaboratively to provide vital services to customers. Furthermore, the service fees charged by most hospitals in Baltimore are relatively the same; therefore, there is limited prices competition, which leads to decreased rivalry (“Johns Hopkins Medicine Fast Facts”).
Recommendations
The hospital should devote most of its energy towards increasing efficiency, which will subsequently increase its profit margins.
The healthcare industry is becoming very competitive by the day; therefore, the organization should improve the quality of its services to ensure that other competitors do not eat into its market share.
SWOT Analysis
Strengths
The hospital has numerous innovative medical discoveries
Has the advantage of being a teaching and referral hospital
Have qualified and experienced personnel (“Johns Hopkins Medicine Fast Facts”).
Weaknesses
Poor communication from personnel
Opportunities
Immense potential for research and development
Threats
The hospital is growing exponentially, which is compromising its ability to focus on patient satisfaction (“Johns Hopkins Medicine Fast Facts”).
Intense competition from other facilities
Recommendations
The hospital should organise in-depth training programs to improve its staffs ‘communication competencies.
The hospital should not focus too much of its efforts on growth and expansion. Instead, they management should strive to improve the quality of services that the hospital offers and customer satisfaction as well (“Johns Hopkins Medicine Fast Facts”).
The organization should invest more resources on research to bolster its position as one of the best medical research facilities.
QUESTION TWO
The most surprising lessons that I learned during this course is based on the importance of a SWOT analysis. Specifically, I learned that it can be used to evaluate or examine the performance of a business without necessarily hiring expensive consultants to do so. Furthermore, it focuses on some of the most important aspects affecting a business.
Indeed, this is a course that can improve an individual’s s management, communication, and problem solving skills. During the course, one is presented with numerous problems that they have to solve using varied problem solving models. Some of the sessions will give you case studies and expect you to analyse, and establish reliable solutions. Most of the activities that we undertook during the curse promote analytical skills that are essential for a successful career in eh field of business and management. I recommend it to any individual that is intending to start or run a business.
References
Dobbs, M. (2014). Guidelines for applying Porter’s five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), 32-45.
“Johns Hopkins Medicine Fast Facts." Johns Hopkins Medicine. Retrieved June 11, 2016 , from <http://www.hopkinsmedicine.org/about/downloads/FastFacts_JHM.pdf>
