Current Patient Base May Reply To The 2 Classmate

Reply to 2 classmates and discuss the similarities or differences in your findings and other pertinent information. Respectfully discuss any differences you find and why you believe your conclusions are correct. Each reply must be at least 450 words and contain at least 2 scholarly, peer-reviewed references, in addition to the course textbook, and 1 instance of biblical integration. The references must be cited within each reply and cannot be repeated from the thread or in any other reply.

reply to classmate #1-

It is important for companies to determine and develop their organizational strategy. Management marketing involves an in-depth analysis of multiple areas such as analysis, planning, implementation, and control (Bobocea, Spiridon, Petrescu, Gheorghe & Purcarea, 2016). There are multiple models that can be used as alternative models to come up with this information (Berkowitz, 2017). However, the Boston Consulting Group Model (BCG matrix) is a well-known strategy model that is based on the growth rate and relative market share of organizations (Bobocea et al, 2016). The market growth rate is the evaluation of the growth of sales rate in a specific market (Berkowitz, 2017). Also, a relative market share is a ratio that is used for a product’s share of business within the market to be used as a comparison to the competition companies (Berkowitz, 2017). There are four strategies that can be evaluated utilizing the BCG matrix: investment, maintenance, fructification, and desertion strategy (Bobocea et al, 2016). These strategies are computed into a matrix to determine if there are any issues within the company (Bobocea et al, 2016).

By evaluating and conducting audits of two large multispecialty medical groups using the BCG matrix there will be a determination if these groups are strong or not. For the first group, the analysis reveals data for the following distribution of services: cash cows’ 65 percent; stars 10 percent; problem children 20 percent; dogs’ 5 percent. In the second group, the distribution is cash cows’ 20 percent; stars 60 percent; problem children 15 percent; dogs’ 5 percent. By applying this information into the BCG matrix data will be provided if there are any major strategic issues that need to be addressed.

Starting off with the first group evaluation of the products and services this analysis will start at the stars. The stars are identified on the matrix as high market shares and high growth rate (Berkowitz, 2017). This part of the matrix means that an organization is doing well, and they have a strong future while reflecting high growth rate (Berkowitz, 2017). The star portion of the matrix evaluates whether a company has high, stable, and growing (Berkowitz, 2017). For group 1 the star has been designated at 10 percent. This percentage explains that these products are not producing high market shares and high growth rate. A strategy for this group is that these products are not thriving, and their potential may not be strong. The next section is identified as the cash cow section where these are products that are high in market share but have a low growth rate (Berkowitz, 2017). In this example, cash cows are at 65 percent which means that this company has high market shares but low growth potential. With this group having a high relative market share and low growth potential this group has stable cash flow and earnings. In order for a company to thrive their needs to be a potential for growth in the business. The next section to evaluate is the problem children who are representing the services with low relative market share and high growth rate (Berkowitz, 2017). In this section group, one has a problem child of 20 percent. Problem children tend to have low and unstable earnings with negative cash flow (Bobocea et al, 2016). A strategy for this would be to analyze and determine whether a business can be grown into a star or will degenerate into a dog (Bobocea et al, 2016). Lastly, the final area to evaluate is the dog section which is products that have a low share and low growth (Berkowitz, 2017). With have this section as 5 percent this company is low growth potential and low market share. This area identifies that the earnings are low and unstable (Bobocea et al, 2016). Being at only 5 percent group one does not show that investors may not want to invest in this group because it does not show a lot of growth potential.

Looking at these same areas for the second group shows those same evaluations will be considered. For group two the stars products are at 60 percent which is high. This leads to the conclusions that these products are producing high market shares and high growth rate (Berkowitz, 2017). With a 60 percent rate, the earning are high, stable and growing with potential. A strategy for an investor would be to invest because this group is flourishing (Berkowitz, 2017). With this high number the company is doing well with its products and is reflecting a high growth rate (Berkowitz, 2017). However, looking at the second area of the cash cows is at 20 percent. As mentioned previously, cash cows offer a high market share but low growth potential (Berkowitz, 2017). With this area being a low percentage, it does not produce as much of a high market share as group 1 did at 65 percent. The next area is the problem child at 15 percent. The problem child area is identified as a high growth potential but has low market shares (Berkowitz, 2017). With this area having a low percentage, it is not able to grow as rapidly while having low market shares (Berkowitz, 2017). Lastly, dogs are the last area to be considered on the BCG matrix. In group 2 the dog’s category is the same percentage as group one. With both groups being at 5 percent, it is identifying as both low shares and low growth. With this number being low it is safe to say that this area should be monitored that services are not draining the company’s cash flow (Bobocea et al, 2016).

Companies and organization are constantly trying to compete for consumers (Debrecht & Levas, 2014). They are utilizing models to determined effective resources to adopt different business strategies (Debrecht & Levas, 2014). The BCG matrix helps provide companies with recommendations for areas that may need improvement for the strategic resource and development of a company (Debrecht & Levas, 2014). As Christians, if we were to put ourselves in a matrix with God’s standards where would we be? Would we be worth making an investment in? The Bible mentions that we are not to judge ourselves by the world’s standards. We are to conduct ourselves on the standards that God provides. “Do not be conformed to this world, but be transformed by the renewal of your mind, that by testing you may discern what is the will of God, what is good and acceptable and perfect” (Romans 12:2, English Standard Version).

References

Berkowitz, E. N. (2017). Essentials of health care marketing. Burlington, MA: Jones & Bartlett Learning.

Bobocea, L., Spiridon, S., Petrescu, L., Gheorghe, C. M., & Purcarea, V. L. (2016). The management of external marketing communication instruments in health care services. Journal of Medicine and Life, 9(2), 137-140. Retrieved from http://ezproxy.liberty.edu/login?url=https://search-proquest-com.ezproxy.liberty.edu/docview/1812906387?accountid=12085

Debrecht, D., & Levas, M. (2014). Using the boston consulting group portfolio matrix to analyze management of a business undergraduate student program at a small liberal arts university. Journal of Higher Education Theory and Practice, 14(3), 65-69. Retrieved from http://ezproxy.liberty.edu/login?url=https://search-proquest-com.ezproxy.liberty.edu/docview/1566912692?accountid=12085

reply to classmate #2-

The first large multispecialty medical group has shown that they have a good base of current customers that are using their facilities by a cash cow percentage of 65 which means that they have a pretty high market share. Berkowitz (2017) stated “A company does have direct control of its relative market share, however, which is a reflection of the success of the organization’s strategy” (p. 73). The part that they can’t control is the market growth rate because it is due to environmental factors that are uncontrollable, to an extent. This first medical group is established in its community, but it needs to do more towards its future potential since its stars rate is only 10 percent. This would give the impression that they are stabilized, but any issue to their current patient base may cause future issues with their medical group if another comes in with new and attractable physicians or technology. It is assumed with a 20 percent distribution in problem children that this medical group is throwing some money into the market in hopes to gain market share and become a star. With 20 percent of the medical groups practice being brands that require close consideration and require a lot of assets, this may be either a good plan or become futile. One way to overcome these barriers is marketing patient’s. Ben Ayed & El Aoud (2017) stated “the perceived incentives and stimuli such as awareness campaign, health education, and caregiver advice are therefore conducive to enhancing consumer empowerment” (p. 45).

The second large multispecialty medical group has literally shot to the stars. They have managed to position themselves in a high growth industry as well as maintain a high share of the market base. Jacks & Novy (2018) discussed the changing global economy and investigated the role potential plays in shaping economic growth for any organization. A star rate of 60 percent is a pretty high percentage and the company should keep investing in this area since it is performing highly. Stars are expected to become cash cows and then continue to generate cash flows that are positive. Cash flows and stars combined is 80 percent, which shows that this medical group has put them in a great place to succeed in their market. There dog rate is also very low at 5 percent. In order to keep their stars performing and transferring to cash cows, they need to keep investing in innovation and technology, because a star can quickly become a dog if passed by other medical groups in their investment strategies. “Do not work for food that spoils, but for food that endures to eternal life, which the Son of Man will give you. For on him God the Father has placed his seal of approval” (John 6:27, English Standard Version). This verse tells us to continue working towards successes and not towards possibilities of failed investments, which is clearly what this group is doing. The first medical group is established, but the second medical group is the up and comer with the latest tools to accomplish their goals and have established themselves, as such, because of their marketing.

Reference

Ben Ayed, M., & El Aoud, N. (2017). The patient empowerment: A promising concept in healthcare marketing. International Journal of Healthcare Management, 10(1), pp. 42-48. Retrieved from http://web.a.ebscohost.com.ezproxy.liberty.edu/eho…

Berkowitz, E. (2017). Essentials of health care marketing (4th ed.). Sudbury, MA: Jones & Bartlett Learning. ISBN: 9781284094312.

Jacks, D., & Novy, D. (2018). Market potential and global growth over the long twentieth century. Journal of International Economics, 114, pp. 221-237. Retrieved from https://www-sciencedirect-com.ezproxy.liberty.edu/science/article/pii/S0022199618301661