Hca Case Study

Topics: Strategic management, Health care, Mergers and acquisitions Pages: 5 (1686 words) Published: March 21, 2013
I. Introduction
The business-level strategy is acombined and synchronized collection of the obligations and actions that are used by the firms to attain a competitive advantage. The firms try to consume core abilities in certain product markets. Under this strategy, the firms stipulate their choices on that how they plan to strive in individual product markets. It’s important that every firm should improve a business-level strategy to generate the differences between its own place and its competitors’ places. The bond between the customers and business-level strategies is very important because the customers are main cause of the strategy’s success. The bond that a firm develops with its customers creates the value and profitability. There are five business-level strategies that a firm shouldor can practice to create and support its chosen strategic position against competitors. These include the variation, the cost leadership, the focused cost leadership, focused differentiation, and the unified cost leadership/differentiation. In chapter 6, it argues these five strategies and side by side with the risks that are associated with each other. In chapter 6 they also argue corporate level strategies. The corporate-level strategy has emphases on the actions that a firm takes to attain a competitive advantage by choosing from and handling a collection of different businesses competing in different product markets. These strategies help the firms in choosing on new strategic positions that are likely to increase the value. The product diversification is avital type of the corporate-level strategy. The diversifications also can differfrom the low levels to the high levels. Well normally, the diversification strategy is used to raise the firm’s value by improving its whole performance. It is essential that the managers should attentive to their firm’s internal organization and to its external environment when making decisions regarding the most advantageous level of the diversification. In chapter 7 there is discussion of mergers, takeover, and acquisitions. A merger is formed when the two firms mix their businesses with each other. An acquisition is a strategy that involves when one firm purchasing the bulk or all interest into another firm with the aims of making it into a subsidiary company within its own group. A takeover is a type of acquisition where the acquired firm does not ask for the capturing firm’s proposal. Acquisitions are used for thenumerous reasons, which contain increasing in the market power and conquering the entry obstacles to new markets. Sometimes a firm must restructure its self in order to change its pool of businesses or financial procedure. This can be done through the downsizingor leveraged buyouts. A firm’s major goal for restructuring is to improvement or successful in strategic control. II. SWOT Analysis

A. External environment
The U.S. healthcare industry is one of the biggest industries in U.S. The U.S. hospital industry is split with thevarious ownership and noticeably different revenue sources with a small number of the main firms. The HCA was operating in a conservative industry where their aremany challenges and financial constraints. One of the major aspects that affected HCA is the increased quantity of the uninsured Americans citizen. The Columbia/HCA’s goal was to emphasis on the providing beds for insured patients to have the profits up. As the number of uninsured Americans citizen increased, it made it harder to keep the beds at full capacity. The increases in health care costs also played a role in the HCA’s actions. The Tenant and Triad Hospitals are recognizedas the big competitors for HCA. The HCA’s business strategy also puts them in competition in the urban areas mainly against autonomous non-profit hospitals. Many do not have the equal financial performance aims and this helped HCA to be the market leader. B. Strengths and Weaknesses

The HCA’s strengths...
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