Applying the Life-Cycle Matrix in An Health Care Organization

This research applies matrix techniques as a part of portfolio analysis to an hypothetical health care organization. The matrix technique applied in this research is the Life-Cycle Matrix Model. The hypothetical health care organization is a critical care hospital.

Metro Hospital (hypothetical) is a large private hospital that specializes in critical care. The business focus areas of the hospital within the context of critical care are cardiovascular surgery, neurosciences (including neurosurgery), rehabilitation, cancer therapy (including cancer surgery), perinatal services, low-back pain therapy (including surgery), and behavioral medicine (primarily psychological services).

Metro Hospital is a not-for-profit institution, although the hospital is privately-owned, as opposed to being a publicly-funded facility. As a not-for-profit hospital, Metro Hospital does not focus on earning a profit to provide shareholder returns, as is the case with a for-profit institution. This variation in focus, however, does not mean that Metro Hospital can afford to either operate at a loss or operate in the absence of a margin over costs. The hospital must more than break-even on its health business operations if the institution is to be able to retain its market leadership in its business focus areas. The margin over costs that the hospital earns must provide funds for modernizatio

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the strategic business units (SBUs) form the other element of the matrix model (Ailawadi, Farris, & Parry, 1994). Classifications of the Competitive Position (CP) variable define the vertical vector of the Life-Cycle matrix, while classifications of the Life-Cycle Stages (LCS) variable define the horizontal vector of the Life-Cycle matrix. These classifications are as follows: a. CP classifications: The CP classifications are "strong," "average," and "weak." The appropriate position for an organization within the CP classification is determined on the basis of market share. The precise cutoff points for each classification tends to vary according to the individual analysis, although a "strong" classification requires that an organization's market share be above the mean market share for all competitors in a market, while a "weak" classification requires than an organization's market share below the mean market share for all competitors in a market. For purposes of this application of the Life-Cycle Matrix Model to an hypothetical health care organization, a "strong" classification required than the organization's market share be at least 1.3 of the mean market share for all competitors in the market, while a "weak" classifi
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Some common words found in the essay are:
Metro Hospital, Matrix Model, Stages LCS, Competitor Eight, Farris Parry, Stiles Mick, Life-Cycle Matrix, ORGANIZATION Introduction, Management Technology, Seven Eight, metro hospital, market share, life-cycle matrix, matrix model, life-cycle matrix model, rehabilitation services, evaluation strategic planning, matrix techniques, evaluation strategic, mean market, health care, strategic planning, mean market share, market share competitors, share competitors market,
Approximate Word count = 1256
Approximate Pages = 5 (250 words per page)

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