Tactical Decision Making on Sonic Healthcare
CHAPTER 1
INTRODUCTION
1.1 Background Every business, including those in healthcare industry, has goals and objectives. The main objective is to become sustainable by having stable revenue through fulfilling the needs of customer. However, business has limited resource; as a result, it should manage its resource effectively and efficiently to meet its main objective. The management department within the company should manage and handle the data of revenue and cost efficiently that will be useful in the decision-making process. Generally, there are three decision-making within the business, strategic decision-making, tactical decision-making and operational decision-making. All of these types of decision-making are useful for organization depending on their time range, and if any one of them is weakened, it has a negative impact on the other types of decision as well. Tactical decision-making, the short-term decision-making, has the responsibility to make sure that the current operation is in control and to ensure that operation are designed efficiently to optimize the performance of the business. In the case of healthcare laboratory, tactical decision-making will ensure that the business remain profitable and to make sure that the business still able to compete with the other competitor in providing the best quality service to the customer since quality is the core component in this industry. In the tactical-decision making process, it is also important to consider the relevant cost and the benefit received from each alternatives; thus, the cost management and operational budgeting which are analyzed in the previous integrated case will affect the tactical decision making process since both of them are the core component in making consideration for each alternatives. This report will focus on analyzing the tactical decision-making process in Sonic Healthcare, one of the largest medical laboratories in the world. 1.2 Problem Identification
1. What
INTRODUCTION
1.1 Background Every business, including those in healthcare industry, has goals and objectives. The main objective is to become sustainable by having stable revenue through fulfilling the needs of customer. However, business has limited resource; as a result, it should manage its resource effectively and efficiently to meet its main objective. The management department within the company should manage and handle the data of revenue and cost efficiently that will be useful in the decision-making process. Generally, there are three decision-making within the business, strategic decision-making, tactical decision-making and operational decision-making. All of these types of decision-making are useful for organization depending on their time range, and if any one of them is weakened, it has a negative impact on the other types of decision as well. Tactical decision-making, the short-term decision-making, has the responsibility to make sure that the current operation is in control and to ensure that operation are designed efficiently to optimize the performance of the business. In the case of healthcare laboratory, tactical decision-making will ensure that the business remain profitable and to make sure that the business still able to compete with the other competitor in providing the best quality service to the customer since quality is the core component in this industry. In the tactical-decision making process, it is also important to consider the relevant cost and the benefit received from each alternatives; thus, the cost management and operational budgeting which are analyzed in the previous integrated case will affect the tactical decision making process since both of them are the core component in making consideration for each alternatives. This report will focus on analyzing the tactical decision-making process in Sonic Healthcare, one of the largest medical laboratories in the world. 1.2 Problem Identification
1. What
References: Mowen. M., Hansen D.R and Heitger D. , Managerial Accounting-The Cornerstone of Business Decision, 4th Edition, 2012, South Western – Thomson Learning http://www.microbuspub.com/pdfs/chapter2.pdf http://www.slideshare.net/novelcrz/2decision-making https://www.boundless.com/management/control/types-of-control/levels-of-control-strategic-tactical-operational/ http://www.who.int/bulletin/archives/78(6)779.pdf http://www.winthropresources.com/downloads/PR_WhitePaper_June2012.pdf http://www3.gehealthcare.com/en/Products/Categories/Clinical_Consumables