Mount Sinai Medical Center Portfolio Analysis - Essay Example

IP3 Portfolio analysis refers to the evaluation of a company’s products during allocation of resource is done to ensure maximum revenue is collected from each product. The ranking of the products is done using the market share and the growth rates associated with the product. The hospital under evaluation is Mount Sinai Medical Center located in New York. The hospital is ranked third in New York in terms of the services provided to patients in the market. The hospital combines adult and pediatric services to ensure a high client base. The products mix to be evaluated is the services offered by the hospital to its patients. The services provided by organizations can be analyzed using the market share and growth rates and can be classified into four categories. The services can be classified as cash cows, question marks, dogs and stars depending on their performance in the competitive market. Portfolio analysis enables the organization to allocate it resources effectively and help in the decision making process. The challenge facing portfolio analysis is the accurate definition of product market segment by an organization. Portfolio analysis can be considered as an organized way to go about asset allocation in the market. The services dispensed by the hospital can be evaluated using the service department offering the services. The market share will reflect the number of patients visiting the organization and the growth rate will be evaluated by the increase in customers on an annual basis. The hospital offers orthopedic services to its patients. Orthopedics deals with ailments affecting the musculoskeletal system in man. This is one of the high performing departments in the organization receiving many patients on an annual basis. The hospital has allocated a large number of nursing staff and technological resources to the specialty. Another high performing department in the hospital is the Pulmonology department. Pulmonology deals with ailments that affect the respiratory tract in human beings. The hospital receives high numbers of patients thus has invested in nursing staff and technology to ensure that the organization is efficient. The hospital is ranked highly for the number of specialized patient services it provides. Pulmonology and Orthopedics services can be considered as cash cows to the organization due to the market share the hospital commands. Cash cows can be defined as those services that have elevated market share in a sluggish growing industry. The hospital has two cash cows explains the ranking of the hospital in New York (Lamb, Hair & McDaniel, 2011). Mount Sinai Medical Center has a Psychiatry department which deals with patients with metal ailments. The department is devoted towards ensuring that the organization maintains efficiency in the organization as the organization serves a wide client base. The revenue generated from this department is not considerable compared to the Orthopedics department or the Pulmonology department. The hospital has invested adequate resources to the department to ensure that the department operates efficiently. The rehabilitation department deals with the use of medical or therapeutic methods to restore full health. This department has benefited the hospital by providing diversity in the services provided. This department has a considerable market size that is less compared to other services considered as cash cows. The revenue generated from the department is also low. The rehabilitation and Psychiatry departments can be classified as dogs in the market. Dogs are characterized by those services that have a low market share in an established industry. The services do not make losses, but they generate profit which maintains the operations of the hospital. The Dogs affect the organizations rate of return negatively thus do not attract investors (Lamb, Hair & McDaniel, 2011). Cancer department in Mount Sinai Medical Center is ranked 41st in the nation and a moderate success rate in treating the ailment. The hospital has invested adequately in the department by allocating adequate staff and technologies to combat the disease. The hospital attracts many patients and generates revenue used in maintaining of the equipment. The market share commanded by the department is relatively low compared to other ailments, which are common in the United States. The cash generated from the department is relatively low compared to the investment by the hospital. The department is high maintenance and uses a lot of the hospitals funding. Nephrology is another adult specialty that the hospital offers to its patients. Nephrology refers to ailments that affect the human kidney. The hospital has allocated it resources to this department that does not generate adequate revenue to cover other operations in the hospital. Nephrology and cancer departments can be considered as question marks or problem child in the market. Increasing cases of cancer and kidney related ailments have forced hospitals to acquire equipment that will help the organization to handle the patients. These departments have the potential to grow as the market share increases and may end up being cash cows. This potential should be analyzed by management to ensure that the department’s funding should be increased for future gains (Lamb, Hair & McDaniel, 2011). ENT medical services mean ear nose and throat medical services covers a broad spectrum of ailments affecting the three organs. The hospital ranks highly in this specialty as the management has invested its resources into expanding the department. The department has a high number of patients in the adult and children category thus commands a large market share. The government is emphasizing on health care to ensure that the economy of the nation is stabilized. The urology department also shares the same characteristics with ENT department in relation to growth in the market. The growth rate and market share of the two departments can be described as stars. Stars are those services that command a high market share in a rapidly growing market. These departments require additional funding to ensure that they grow to become the cash cows of the organization in the future. Once the market stabilizes, stars evolve into cash cows thus able to maintain steady revenue above other departments in the hospital. With adequate information about the departmental growth rates and market share, the hospital can allocate its resources in a manner that organizational growth is favored (Lamb, Hair & McDaniel, 2011). Reference Lamb, C. W., Hair, J. F., & McDaniel, C. D. (2011). MKTG5: Student edition. Mason, OH: South-Western Cengage Learning. Read More