Strategic Management




Theaim was this paper was to clarify the possibility that the managementof TEXAS CHILDREN HOSPITAL was week in its strategic planning,therefore, making the organization to be vulnerable to externalindustry threats by other firms. According to the research finding,it is clear that there are at least three competitors who haveentered the market and having a successful operation within thecompany’s market environment. The research further downplays theuntimely strategy formulation by TEXAS CHILDREN HOSPITAL which inturn cost the organization through lost opportunities of emergingbusiness opportunities. The research further posits that failure ofthe organizations management to have a timely strategic planningwould cost the company by not addressing the treats and affect itscompetitive advantage in the future.


Themanagement is expected to formulate timely and effective strategicplans in order to take advantage of potential business opportunitiesand position the organization within its environment competitively.In that regard the report recommend the following action plans forTEXAS CHILDREN HOSPITAL

Increaseits research and development funding so as to improve the level ofservice delivery and discover new and cheaper methods of offering theservices. In this way, the organization cost will significantly dropand subsequently enable the organization to offer services at acheaper rate than what the competitors are offering. The researchshould also aim at increasing the skills and expertise of itsworkforce. Funding of the R&amp D division should be increasedbetween 10 and 15 % per year (Liebl,2015).

Theorganization should not divest its business divisions because it willreduce coordination and efficiency of operations. It is expected thatdivesting business divisions would increase decision making processesand disable specialization of significant health units. Divestingbusiness divisions also increase broader supervisions and inhibitfreedom of operations. The management should ensure that it havephased out unsuccessful divesting process within three years in aphased fashion (Swayne,Duncan &amp Ginter, 2012).

Thecompany should not change to unrelated diversification but shouldhold on to related diversification. This is because strategyformulation for related business ideas id easier to formulate andimplement. Management of unrelated business opportunities may renderthe hospital redundant on its core business hence lose itscompetitive position in the market. The organization shouldstreamline its business and ensure all unrelated businessopportunities are closed down within the next two years (Rosemann,&amp vom Brocke, 2015).

Closelyrelated business divisions should be integrated within the next oneyear because it will help increase the process of service delivery.Services that are closely related and those complement or supplementeach other should be amalgamated in order to increase the speed ofservices delivery and ensure customer satisfaction.

Thecurrent business structure is strong to support the organizationachieve its objectives. So, the organization should not alter itsstructure because it can pose a challenge to the management(Alkhafaji,2011).


Basedon the findings of the result, more than 60% of the company employeesare in support of the major recommended changes. As such, themanagement of the organization is likely to get full support from theemployees in implementing majority of these strategies. I trust theleadership of the hospital because they are always committed to thesuccess of the organization. It is my belief that the board ofmanagement would implement my recommendation because they are aresult of extensive research and all the relevant factors instrategic planning effect on performance have been identified.


Alkhafaji,A. F. (2011). Strategic management: formulation, implementation, andcontrol in a dynamic environment. Developmentand Learning in Organizations: An International Journal,25(2).

Liebl,F. (2015). Knowledge management for strategic marketing. In Assessingthe Different Roles of Marketing Theory and Practice in the Jaws ofEconomic Uncertainty(pp. 48-57). Springer International Publishing.

Rosemann,M., &amp vom Brocke, J. (2015). The six core elements of businessprocess management. In Handbookon Business Process Management 1(pp. 105-122). Springer Berlin Heidelberg.

Swayne,L. E., Duncan, W. J., &amp Ginter, P. M. (2012). Strategicmanagement of health care organizations.John Wiley &amp Sons.