APPROPRIATENESS OF THE APPLICATION OF STRATEGIC MATRIX TECHNIQUES IN EVALUATING DIVERSIFIED BUSINESS PORTFOLIOS IN THE HEALTH CARE INDUSTRY
This research examines the appropriateness of the application of strategic matrix techniques in evaluating diversified business portfolios in the health care services delivery industry. The problem investigated and study purpose are stated in this chapter, together with considerations of the importance of the study and the delimitations of the study.
The relatively rapid process of evolutionary change in the structure of the health care system in the United States is bringing together into integrated health care systems health care services that formerly were provided by independent health care organizations (Zwanziger & Melnick, 1996). The integration into health care systems of health care organizations whose health care service focuses are highly diversified when considered as a group demands that the strategic planning evaluation techniques applied in these organizations by upgraded to enable the managers of such health care systems to evaluated, both effectively and efficiently, the business portfolios of these integrated, diversified organizations (Ford, 1996).
One approach to the evaluation of strategic planning for organizations with diversified business portfolios is the application of matrix techniques (Mintzberg, 1993). The matrix techniques used in the evaluation of the strategic planning of diversified typically are structured as 2X2 matrices wherein the interactions of two major variables provide the basis for evaluation. Each of the two major variables is characterized by two classifications which create the 2X2 matrix structure. Some matrix techniques used in the evaluation of the strategic planning of diversified, however, are characterized both by more than two classifications for each of the major variables and differences in the number of classifications for each o...