How Healthcare Strategies Differ from Other Business Strategies - Research Paper Example

?How Healthcare Strategies Differ From Other Business Strategies INTRODUCTION The present business environment is highly dynamic and complex. In order to sustain business in the current dynamic and competitive business environment, it is essential to devise effective strategies that would the direct the action of the business organizations at large. Almost all the sectors of business whether healthcare or any other segment are required to frame effective strategies that would facilitate in sustaining their respective business performance profitably. It is worth mentioning that strategies serve as the road map for all the organizations in the course of attaining established objectives. It can be argued that without the formulation along with the execution of proper strategies, it is quite hard for the organizations to accomplish their respective predetermined goals. At the same time, strategies framed should be in conformity with the common organizational goals and it must be flexible so that quick changes are made in case of any problem or challenge is emerged. It is worth mentioning that none of the strategies are universal in nature. This implies that strategies differ from one sector or organization to other. An organization cannot rely on any specific rule for developing strategies. The differences in the strategies mainly exist due to the reason that objectives to be achieved and the medium to accomplish the objectives widely differs depending on the motive for which the organizations have been founded. For instance, an organization dealing with healthcare services intend to achieve its desired objectives in terms of offering quality care to the patients. While on the other hand, an organization dealing with marketing a particular product or service may intend to achieve its expected business goals through offering quality products or services to the customers (Pirtea, Nicolescu, and Botoc 953-957). THESIS STATEMENT Strategies can be duly regarded as a decisive determinant, leading business organizations towards attaining success. The formulation along with the utilization of effective strategies eventually supports an organization towards accomplishing its predetermined business targets at large. Correspondingly, this paper intends to identify the differences in healthcare strategies from other business strategies. EVALUATION OF DIFFERENT OTHER BUSINESS STRATEGIES Business strategy basically entails two primary questions. The first question deals with identifying the type of business in which an organization is engaged and the second question focuses on how efficiently the firms compete in order to sustain their respective businesses profitably. In other words, it can be affirmed that business strategies are mainly concerned with determining how business firms generate and sustain competitive edge during the course of earning substantial profits. In developing business strategies, the business firms usually undertakes three major sets of activities. These sets of activities include strategic analysis, strategic choice and strategic implementation. The business strategies are policed after scanning environment associated with threats along with opportunities pertaining to a particular business market. Evaluating the capability of strategies and assessing the enablers along with the constraints relating to these strategies are crucial, while determining and implementing business policies. It is worth mentioning that framing business strategies is quite a complex task for the business owners along with the managers. In this regard, it can be firmly stated that business strategies have considerable implication on the performance of any organization. Cost cutting is an important strategy for any business organization in the present spectrum of the global business, as the constant rise in the cost of operations has significantly limited the ability of the organizations to earn considerable profit. It can further be stated that business strategies are firmly embedded with the market characteristics, industry traits, level of competition within the industry and the demands of the products or services on behalf of the customers among others. At the same time, business strategies always seek to avail potential investment related opportunities in order to avail the best outcome from investment decisions. It can be reflected that business strategies are more focused towards attaining greater profit from their operations and are less concerned about performing effective e social responsibilities. Specially mentioning, there are several models that are mainly followed by organizations while framing business strategies such as marketing mix. Another vital constituent of business strategies can be associated with its nature, which is firmly profit oriented. The core business strategies extensively focuses on gaining maximum return on the amount invested. It is worth mentioning that in various business organizations, there are different departments and each department has its own structure of strategies that are directed towards increasing the efficiency and performance of the respective organizations (Kitching, Blackburn, Smallbone, and Dixon, “Business Strategies and Performance during Difficult Economic Conditions”). It can be argued that business strategies are firmly directed towards profit maximization motives rather than the welfare of the customers. The key focused areas of the business strategies can be apparently observed to be related with creating demand for the products or the services in the marketplace and attaining superior competitive position. Furthermore, the role of customers, suppliers and external environment are considered to be crucial in the context of business strategies. The business strategies are significantly influenced by crisis situations. The customer preferences and choice also have radical impact on the business strategies at large (Kitching, Blackburn, Smallbone, and Dixon, “Business Strategies and Performance during Difficult Economic Conditions”). A BRIEF DESCRIPTION OF HEALTHCARE STRATEGIES Industrial reforms, financial pressures and advancements in medicines along with technologies have imposed considerable impact on healthcare strategies. The implications of such impact have fundamentally changed the way of delivering quality healthcare in the global scale. It is worth mentioning that healthcare organizations of all types are radically challenged by complexity and uncertainty prevailing within the healthcare sector across the world. Hence, it has been ascertained that organizations are looking new and innovative ways to maintain relevance and differentiate in the market along with create meaningful relationship with patients. Additionally, the current healthcare strategies are directed towards building strong brand, maintaining and expanding relationships with patients. Notably, the healthcare sector is committed towards building effective brand through delivering quality healthcare to the patients. Empowering employees to deliver quality care for raising patients’ satisfaction level, building sustainable brand management and marketing capabilities for creating long-term financial viability are the core elements of healthcare strategies. At the same time, it can be postulated that healthcare strategies are less concerned about developing corporate brand, instead of providing greater value to the patients in order to establish long-term relationship with the loyal customers (Porter and Lee, “The Strategy That Will Fix Health Care”). A strong healthcare system is central towards improving the health of the masses particularly in tackling the disparities existing in the form of health inequality. Healthcare strategies provide a clear direction for future development of healthcare settings. In this regard, it is worth mentioning that healthcare strategies are directed towards focusing on developing the health of populaces residing in a particular community and most vitally promoting effective health along with preventative care. Moreover, the healthcare strategies aim at reducing the barriers, especially the financial barriers for certain group or category of people with greatest healthcare requirements. In the 21st century, the health of people across the world is threatened with numerous infectious and epidemics. In such circumstances, the strategies of healthcare offer effective healthcare services and facilities to the affected people and reduce the fatalities by a greater degree (Porter and Lee, “The Strategy That Will Fix Health Care”). Moreover, it can be argued that across the world, healthcare system is struggling with rising costs and uneven distribution of talents. Hence, the core strategy of the healthcare system is to maximize value for patients, which imply achieving best outcomes at lowest possible costs. Moreover, the healthcare strategies in the current context are often viewed to be patient-centered rather than profit oriented. In other words, the healthcare strategies have been shifted from making substantial profits towards raising the satisfaction level of the patients through delivering quality healthcare services. More specifically, the current healthcare strategies are devoted towards delivering high value care to the patients with different requirements. At the same time, the integrated healthcare strategies have been viewed to be widely gaining popularity in this present day context. These strategies aim at improving the health of the populaces, securing quality and maximizing the utilization of accessible resources among others. Moreover, the integrated healthcare strategies intend to respond rapidly to the changing environment with the focus and effort on improving the area of healthcare. It can be argued that healthcare strategies are significantly influenced by certain relevant Acts such as Health Insurance Portability and Accountability Act (HIPAA) (Prophet, “Addressing the Healthcare Industry's Strategic Challenges”). DIFFERENTIATION OF HEALTHCARE STRATEGIES WITH OTHER EVALUATED BUSINESS STRATEGIES It can be argued that there exists a significant difference between the healthcare strategies and the business strategies. One of the imperative differences between these two concepts can be identified in terms of their objectives. In this regard, the healthcare strategies are directed towards attaining their expected objectives by providing quality care to its patients. On the other hand, the business strategies are focused towards attaining their predetermined targets objectives by creating an increased demand for products or services. Moreover, distinctions can also be made on the ground of motives behind their establishment. Correspondingly, it can be stated that healthcare strategies are significantly impacted by the prevailing lifestyle of the people and the outbreak of epidemic. Furthermore, customer engagement is often viewed to be an important aspect related with healthcare strategies. However, in the context of business strategies, customer relationship do matter, but not in the manner as in the case of healthcare strategies. Customer understanding is duly considered to be a crucial aspect in relation to the case of healthcare strategies, while customer preferences are ascertained to be vital linked with the business strategies. Brand development is observed to be a strong tool of business strategies for seeking loyal customers. Although healthcare strategies also focus on brand development, it is more concerned with delivering added value to the customers. Healthcare strategies are framed and implemented to strengthen corporate reputation through rendering quality patient care. Similarly, corporate reputation also occupies paramount importance in the business strategies but it is associated with offering quality products and services to the customers (Prophet, “Addressing the Healthcare Industry's Strategic Challenges”). It can be apparently observed that the healthcare strategies are patient-centered, while the business strategies are directed towards a targeted group of customers. Improving quality of care and offering enhanced healthcare services to patients at reduced costs are regarded as vital elements of healthcare strategies. On the contrary, offering products or services at the highest possible price, wherein customers are willing to buy is the important aspect of business strategies. Specially mentioning, confidentiality along with privacy of patient’s information forms a critical aspect in healthcare strategies. Nonetheless, these aspects have relatively less importance on business strategies. There are various models that support broad business strategies, while healthcare strategies are identified to be unique from other business strategies in terms of supporting relevant theories. Additionally, market segmentation is perceived as an important element of business strategies. Unlike in the case of business strategies, market segmentation is not widely considered as a part of healthcare strategies. Business strategies are more vulnerable towards getting influenced by various risk factors than healthcare strategies. It can be stated that similar healthcare strategies can be found across all the healthcare units. Conversely, business strategies differ from one type of business organization to other. In this context, a manufacturing organization has different strategies as compared to a retail business organization. It can be further argued that business strategies predominately serve the commercial purpose only, while the healthcare strategies serve both commercial and social obligations. In this context, healthcare strategies are committed towards forming a healthy community (Prophet, “Addressing the Healthcare Industry's Strategic Challenges”). Training of staff members is duly considered to play an imperative role in developing effective healthcare strategies. Although it can be argued that training is important in almost all the business segments, it can also be firmly admitted that training is quite important in healthcare sector and hence, it is predominately considered in healthcare strategies. Waste management can be identified to be an important element of healthcare strategies. Furthermore, the healthcare strategies in the present day context can be argued to be collaborative, signifying that the healthcare strategies which are currently implemented across the healthcare sector is the combination of traditional and rapidly evolving technological advancement related with patient’s treatment. Community based service also forms a vital aspect in healthcare strategies. In contrast, business strategies are not much concerned with community based services. The business strategies are directed towards attracting more and more customers towards buying various products or services. However, the healthcare strategies are oriented towards attracting customers through rendering quality care to them. It can be argued that business strategies are generally self-centered, while healthcare strategies are intended towards meeting organizational along with social needs. The healthcare strategies not only consider the needs of the customers or the patients, but also place significant importance on the requirements and the expectations of their families. However, it can be argued that business strategies are solely directed towards meeting the specific needs of a particular group of customers and have no obligation towards their families. Moreover, accountability of professionals engaged in healthcare is clear and has radical impact on the success of healthcare strategies. At the same time, information related with patients is often considered to be a crucial aspect in healthcare strategies rather than business strategies. Furthermore, relationship management plays a decisive role in healthcare strategies. However, it can be argued that business strategies also focus on relationship building, but its implication is limited on business organizations. Additionally, business strategies cover much broader spectrum than healthcare strategies. Moreover, special attention is paid on employees’ behavior in healthcare strategies. This can be owing to the reason that the professionals dealing with healthcare are required to establish direct interaction with the patient’s and their families. However, in relation to the case of business strategies, factors related with employee behaviors are not clearly stated (Prophet, “Addressing the Healthcare Industry's Strategic Challenges”). Precisely stating, it can be argued that the healthcare strategies are both profit and community oriented, while business strategies are predominately profit oriented only. Additionally, the healthcare strategies are directed towards delivering quality care to patients and also focus on meeting the needs of the family members of the patients. On the contrary, business strategies are only concerned with meeting the specific needs of the customers. It can be affirmed that the business strategies are required to be more flexible than the healthcare strategies, as the business environment is more dynamic and risky as compared to healthcare environment. Marketing mix serve as one of the effective marketing strategies for ordinary business organizations. On the other hand, the strategy of marketing mix is not viable in the case of healthcare sector. The rapid introduction along with the execution of new technologies imposes significant impact on the healthcare strategies, while their implications on other business strategies are not widespread. At the same time, it can be admitted that healthcare sector across the globe is undergoing through significant transformation. Hence, traditional healthcare strategies are challenged with new and emerging theories along with practices. Correspondingly, the healthcare strategies are widely focused towards adopting innovation as a continuous practice in order to improve the performance of healthcare organizations. On the other hand, business strategies are more concerned with maximizing their earnings through better understanding of customer needs along with requirements at large (Porter and Lee, “The Strategy That Will Fix Health Care”). CONCLUSION To sum up, it can be stated that strategies are regarded as an essential component for any business sector. Effective strategies contribute towards the efficient performance of the organizations. The significance of strategies has further increased due to the dynamism associated with the modern business environment. It is admitted that without effective strategies, it is quite hard for any organization to sustain its operation profitably and smoothly. The strategies are required to be closely embedded with the mission along with the vision of the organizations. At the same time, it can be advocated that every organization is unique in terms of their strategies. Correspondingly, strategies of one organization differ from another organization. The analysis of healthcare strategies and business strategies reveals certain significant differences. It can be apparently observed that healthcare strategies are framed in accordance with the health requirements of the community and intend to meet the objectives of healthcare through delivering quality care to patients. On the other hand, it has been viewed that business strategies are predominately channelized towards attaining maximum profits from the investments made. Accordingly, the business strategies are less concerned about fulfilling responsibility towards society as compared to healthcare strategies. Works Cited Kitching, John., Robert Blackburn, David Smallbone, and Sarah Dixon. Business Strategies and Performance during Difficult Economic Conditions. 2009. Web. 11 Nov. 2013. “Addressing the Healthcare Industry's Strategic Challenges”. Prophet. 2013. Web. 11 Nov. 2013. Pirtea, Marilen., Cristina Nicolescu, and Claudiu Botoc. “The Role of Strategic Planning In Modern Organizations”. Annales Universitatis Apulensis Series Oeconomica 1.2 (2009): 953-957. Print. Porter, Michael E. and Thomas H. Lee. The Strategy That Will Fix Health Care. 2013. Web. 11 Nov. 2013. Read More