Strategic Choice and Evaluation

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Strategic Choice and Evaluation
L'Tanya M. Williams
October 3, 2012
Pitchiah Balasubramanian

Strategic Choice and Evaluation
The paper will present potential alternatives Vanguard Health Systems (VHS) must consider to realize growth. It will also seek to identify the best value discipline, generic strategy, and grand strategy for the organization. Upon the investigation of the various alternatives, a recommendation of a strategy or a combination of strategies will be presented. A growing trend among many businesses is through mergers and acquisitions. No longer are the days when one business can to dominate totally an entire industry. The health care system is not exempt. External environment factors play a significant role on how this industry operates as with most large businesses. These include remote, industry and operating environments that help to influence the activities that an organization will take in an effort to remain competitive according to (Pearce & Robinson, 2011). Vanguard Health System continues to monitor and evaluate these causative factors the paper will assist in evaluating how the better determine alternatives for the company’s future growth. Alternative Strategies

Vanguard Health System continues to be among the leading operating health care network in many large markets. It operates 28 hospitals, which strategically- align with outpatient facilities and other business entities and provides a total range of services within each community that they serve. They have earned a reputation for delivering high quality care with a focus on helping the communities. As an enhancement to the existing successful organization, alternative strategies will be presented as additional growth opportunities to create an even greater competitive advantage.

The Value Disciplines
According to (Pearce & Robinson, 2011) the introduction of the value discipline, initiated by consultants Michael Treacy and Fred Wiersema provided another alternative strategical approach to the existing ones. The value discipline approach that is customer focused and centered in what customers’ value most. They have further divided the value disciplines into three distinctive strategic approaches, they include the following:

Operational Excellence approach is the first of the three sub-approaches and it focuses on superior customer service, allowing for convenient, timely delivery of products or services that promote competitive market pricing. This approach also succeeds in minimizing costs by using lean methods of eliminating waste, thus reducing overhead spending, production cost, unnecessary personnel, and services as it relates to (VHS) and monitoring of all spending activities and inventories with the latest technological tracking devices.

Customer Intimacy approach is the second sub-approach under values disciplines that seeks to develop long-term relationships between the customer and the business by creating product or service loyalty. This approach practices the made to fit, special request, special order, and mail to order scenario. Its focus is on pure customer satisfaction and it is willing to spend more time or money in providing exactly what will appeal to the customer to maintain their trust and continued spending. The company’s that choose to use this approach genuinely serve a more refined group of returning customers and can afford to allow specialized individual treatments and products to their customers because in the end the customers know that they can rely on quality and commitment.

Product Leadership approach is another value discipline which seeks to be the pioneers of innovation, thus producing and creating a non-stop stream of upscale quality products that appeals to the consumers in the competitive market. They also choose to promote, and market their own products before all others in the same industry to take the lead and the credit for the creativities to product...
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