Capstone HR Management Chapter 4


CapstoneHR Management Chapter 4

SectionI: Organizational Internal Weaknesses and Strengths

Organizationssuch as hospitals have internal strengths and weaknesses. Theleadership of a hospital should be aligned to its vision andunderstand the weaknesses and strengths for it to prosper rather thanhinder the health fraternity. Texas children hospital is not anexception. Mark A Wallace was appointed in 1989 as the chiefexecutive officer and the president of the Texas children hospital.Under his administration, the hospital has grown to be one of themost comprehensive and largest pediatric hospital garnering more than3.3 million patients. Texas Children Hospital is one of the largestchildren`s hospitals in the US with more than 800 ongoing trials,800,000 square feet of space lab and it is one of the most diverseand largest pediatric populations of the patients in the country. Inaddition, in the year 2014, it was ranked 4th among all the childrenhospital in the word (TexasChildren, 2015).

Children`shospital has been facing diverse complexities in handling theever-increasing number of children admitted to their facilities,curbing the competition from other established hospitals such asShriners, low funding and lack of enough office spaces. Nevertheless,a better leadership style has served as a competitive edge for thehospital. Mr. Wallace has led the hospital to expansion andcompletion of various projects thus acting as a representation offuture pediatric care (Mindtools, 2015). This paper aims to conduct aSWOT analysis designed to determining the internal weaknesses andstrengths and how Texas children`s hospital can implement theirstrategic policy to succeed and improve sustainability.


Theleadership of Texas Children`s Hospital has achieved the best formany years. Most of the leadership has loosened their grip on theleadership strategy. The modern day planning of the medicaltechnology management presents sufficient technology deployment andenhances the improvement of quality healthcare, increase access toservices and the containment costs that are offered to healthcaresystems. However, Texas Children`s Hospital faces an outdated styleof leadership as seen in their outdated technology. The leaders stillhold on the traditional methods of leadership. It needs lots offocus, engagement and support to overcome the challenge. Some of theleaders are not cooperative and thus adapting to new technology andleadership is a problem for the management. This weakness affects thehospital negatively in which its competition thrives on (Mindtools,2015).


Instrategic planning, Texas children`s hospital has rolled outdifferently, new methodology and clinically driven EDW to assist inmeasuring population and care outcome. The hospital has 22 nonmedicalfacilities that make it stand out. This acts as the hospitalstrength. In this, the hospital was accredited first pediatric heartfailure institute in 2013and its experts in the same year, at aninternational conference congratulated by North America radiologysociety. As a strategic endeavor, Texas Children Hospital hasrecently embarked on $475 million campaign to ensure that thehospital satisfies the needs of the increasing population of patient.The promising project is inclusive of construction, of hospitalwoodland, comprehensive community pediatric Hospital at 350 milliondollars that will provide high-quality pediatric care close to thehome of families near north Houston. It achieves a competitive edgeby being the greatest Philanthropy. Its current love to rescue advertmakes it stand out by helping children to become independent andhealthy (Mindtools, 2015).

Anotherstrategy is the development of an integrated permanent team ofanalysts, technologists, clinicians and quality personnel to check onareas of improvement of the healthcare and build evidence-based careguidelines. Finally, the other strategy is the implementation of thesystem infrastructure to interpret and track iterative development.Thus, to enable the leadership in working hand in hand with otherstakeholders to achieve the best for the hospital.


TexasChildren`s Hospital has enjoyed growth during its operationalhistory. Texas Children Hospital is one of the largest children`shospitals in the US with more than 800 ongoing trials and largestpediatric populations of the patients in the country. To maintainsustainability, the goal of providing safe, equitable, effective,patient-centered, timely and efficient care is the commitment to thehospital. Hence, hospital incorporates a multidisciplinary teamapproach that ensures the mission of the hospital is to lead thecommunity in making healthy families, healthy children and women atthe same time committing the best collaborations and partnerships ineducation, research, care and outreach to children. The approach inconjunction with partnership and cooperation from other stakeholdersis made up of material, facility, care, quality, operations andmanagement of their resources well. The victorious ideas of Texashave expanded better lines of services inclusive of women andchildren center and Hospital West Campus, which has improved servicedelivery and corporate strategy (Herring, 2013). However, this seemsto be in minimal effort and, therefore, needs reinforcement by themanagement.


Instrategic planning, Texas children`s hospital has rolled outdifferently, new methodology and clinically driven planning methodsto aid in measuring outcome and population care. With betterleadership and a team of cooperative management, they haveestablished a sense of culture and present services that aredifferent from the competitors (Smit &amp Trigeorgis, 2012).


Thehospital like any other corporation has not achieved all. Not all itsmanagement level has been aligned with the core mission and goals ofthe company. For instance, overcoming their managerial and planningweakness should be a top priority. The outdated technology is also animportant control weakness since other major children`s hospital suchas Shriners has an up to date technology, and this is the reason theyhave achieved a more competitive edge when to compare to TexasChildren Hospital (Herring, 2013). In the planning of the medicaltechnology, the management should present to sufficiently deploytechnology and enhance the improvement of quality healthcare. Whichwill intern increases access to services and the containment coststhat are offered to healthcare systems.


Instrategic planning, Texas Children Hospital has to improve itsleadership to a more integral one. The management should have achange of guard to get a fresh team that is willing to worker harderand cooperate with other stakeholders in achieving a competitiveedge. The new team should be aligned to offer better service deliveryin that they remain relevant and overcome the changing healthenvironment. The current system is not sufficient, and new successionplanning should be incorporated to ensure there is no disruption inthe planning process.


Thereare concerns that the data of the patient is breached. In addition,not all the workforce takes the advantage of the training programs.Thus, we have a team that is not sufficiently equipped and also onethat can give information about the patient to wrong people. If notchecked, this instance will affect the hospital in the long run sincethey will have a bad reputation from the employees and patients.


Theprimary focus of the hospital is pediatric heart failure institute.Its mission is aligned to offering quality services to the patients.The hospital organizational strength has focused on understanding allits departments and ensuring the workforce is well managed and paidto serve the patients well. They recognize the doctors who performwell and also train them to ensure that they are equipped for thetask (Smit &amp Trigeorgis, 2012).

SectionII: Organizational External Threats and Opportunities

Porter’sfive forces

SupplierBargaining Power

Asthe company serves the community, supplier bargaining power leads thepatient-hospital relationship between the hospital and the healthindustry. The hospital is reliant on human labor from the nurses,practitioners and physicians. Texas Children`s Hospital faces theproblem of insufficient funding where drugs and payment of salariesact as major expenses of operation accounting to more than 70 percentof all the hospital services. Other expenses include medicalequipment and medical supplies. As a result of increasing patients,Texas Children Hospital expects to have more patients and thus theywill need more doctors and other practitioners.

BuyersBargaining Power

TexasChildren’s Hospital uses bargaining power as part of the strategyto get extra funding for their bed occupancy every year. The hospitalhas used its bargaining power to get more stakeholders to fund them.They also use a team of purchasing and supplies organization tonegotiate better prices for their hospital equipment and carecontracts. The company is one of the largest children’s hospitalsin the world and thus it has better bargaining power.

Competitorsand New entry

Currently,the top competitors for Texas children hospital include SHRINERShospital for children, Memorial Hermann Healthcare, and the AscensionHealth Alliance. These competitors serve as a threat to the hospitaland may hinder it from achieving a competitive edge. There are alsosome potential entries of children hospital that may pose acompetitive advantage. The threat of new competitors is one of theforces shaping the competitive structure of the industry

Extentof Rivalry among Rival firm

SHRINER’schildren hospital is which focuses on updated services, and patientdata safety is one of Texas children hospital competitor. Shriner’sstrategy is diverse in acquiring managed data for patients and thusavoids data breaches. Texas Children`s Hospital is also competingwith Memorial Hermann Healthcare one of the largest operator in theUnited States focusing on profitability.

Threatsof Substitutes

Moreestablished healthcare act paved the way to threats of substitutesuch as mobile clinics. The threat of the substitutes in thehealthcare fraternity will impact the competitive environment and mayinfluence their chances to increase profitability since the consumerscan choose substitute services instead of Texas Children`s Hospital.More close substitutes can make the health industry to be morecompetitive and decrease profits.

Macroenvironment Forces


Asthe population grows, the healthcare industry has the prerequisite toexpanding its market to other areas. Diseases that are related toyoung children are on the rise as a result of the parents lifestyles.For instance, there are many cases of children with cancer and heartdiseases. From logics, the parents contribute significantly to theailments inherent in the children. As a result of demographicchanges, Texas Children`s Hospital has the prerequisite to developingpolicies that meet the healthcare demands by the populationdemographic changes (Dimick, 2011).


Thishas affected the health industry in a positive and negative way. Thedevelopment of healthcare market will lead to Texas` struggle to havesufficient health workers and the capital to pay them since it is anonprofit organization. The public health outbreaks, complexities oftreatment, aging population and outbreak of diseases in many parts ofthe world add cost and clinical expenses. Since Texas children`shospital is expected to expand which in turn will increase theoperational costs which in turn affects the operating expensesnegatively.

TechnologicalChanges and forces

Theplanning of the medical technology management presents sufficienttechnology deployment and enhances the improvement of qualityhealthcare, increase access to services and the containment coststhat are offered to healthcare systems. Most of the organizationshave faced various threats such as new competition. Technology ispart and parcel of our everyday life. Technological innovation givesthe hospital an opportunity for controlling production with speed andaccuracy. Texas children hospital has been using outdated technology,and thus they must upgrade to ensure that patient`s data is notbreached, and it remains confidential (Ball, Weaver &amp Kiel,2013).

Political&amp Legal forces

Thefederal and state government affects the way things are handled. TheChildren`s Hospitals are filled with political appointees who do noteven have skills in health. This is overly wrong and can lead toworse decisions that may affect the patients. PPACA has been alignedto the health act. This bill became a ground for the financialportfolio.


Socialforces include family population, ethnic distinction and geographicalshifts. The changes to these social forces may bring opportunity orthreat to a culture of hospitals. Texas Children`s Hospital isaccountable for the health of Texas geographical area to reducehealth disparities. The factors bring strength to Texas Children`sHospital culture by shared and clarified vision and goals, assesscommunity need, potential intervention and identify the gaps to befilled (Andrews-Emery, 2010).

SectionIII: Evaluating the SWOT Analysis (for recommendation)

Thestrategic SWOT presents a comprehensive Insight to the History ofTEXAS children, Business structure, corporate strategy, and theoperations. The company faces competition from Shriners Hospital forchildren, Memorial Hermann Healthcare, and the Ascension HealthAlliance. The hospital seeks to provide to lead in creating a globalcommunity of healthy children, families and women while committing tothe finest partnerships, collaborations, and initiatives in research,education, outreach and care of children. Nevertheless, the hospitallacks enough space for the growing population of children and enoughcapital to fund their operations.

Ithas been also reported that the children patient takes the time to beattended and thus the hospital must increase its staff and ensurethat every patient is attended to. In response to the problem, thisstudy aims to propose diverse options for making the hospital better.Since the hospital is expected to expand in future and in many timesit operates on nonprofits basis, its operating expenses will increaseand thus, they must get better ways of funding their operations. Withbetter leadership, Texas Children Hospital can sustain successthroughout the years.


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Powderly,H. (2015, April 8). Health Care Finance. Retrieved from

Kutscher,B. (2014). Tenet, Community Health earnings will fill in Obama carepicture. Modern Health Care

Mindtools.(2015). Porter’s Five Forces. Retrieved from

Dimick,C. (2011, June). Allima. Retrieved from HIM Body of Knowledge:

TexasChildren.(2015). Mark A Wallace. Retrieved from texaschildren-org:

Andrews-Emery,A. (2010). Finding top people for tops spots. HR Magazine, 42.

Smit,H. T., &amp Trigeorgis, L. (2012). Strategic investment: Realoptions and games. Princeton University Press

Ball,M., Weaver, C., &amp Kiel, J. (Eds.). (2013). Healthcare informationmanagement systems: Cases, strategies, and solutions. SpringerScience &amp Business Media


Herring,J. A. (2013). Tachdjian`spediatricorthopaedics:from the Texas Scottish Rite Hospital for children.Elsevier Health Sciences

Powderly,H. (2015, April 8). HealthCare Finance.Retrieved from

Kutscher,B. (2014). Tenet, Community Health earnings will fill in Obama carepicture. ModernHealth Care

Mindtools.(2015). Porter’sFive Forces.Retrieved from

Dimick,C. (2011, June). Allima.Retrieved from HIM Body of Knowledge:

TexasChildren.(2015). MarkA Wallace.Retrieved from texaschildren-org:

Andrews-Emery,A. (2010). Findingtop people for tops spots.HRMagazine,42.

Smit,H. T., &amp Trigeorgis, L. (2012). Strategicinvestment: Real options and games.Princeton University Press

Ball,M., Weaver, C., &amp Kiel, J. (Eds.). (2013). Healthcareinformation management systems: Cases, strategies, and solutions.Springer Science &amp Business Media