CLEVELAND CLINIC TRANSFORMATION AND GROWTH Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

cleveland clinic transformation and growth Case Study Solution

Executive Summary

The rubric of the case is to find out the best possible solution suitable for the company’s long-term growth as well as establish a market position within a selected industry. Cleveland under the case was a healthcare service company, which was involving various strategies implementations to serve “Patient’s First” services. However, different assumptions proposed by Dr. Cosgrove indicated that the core strategy was not useful for organizational growth unless it should be assessed with the certain issues like internal as well as an external factor that would contribute towards the particular situation. Therefore, it is concluded that Cleveland should not take a decision locally but to expand on a global basis. For that, a competitor’s assessment, as well as economic situation, should analyze to survive and maintain long-term position.

Introduction

The case illustrates an importance of utilizing the organic amendments in the external as well as the internal performance of the company where Cleveland was the targeted firm to execute the scenario in such manner. The aim of the research and facilitation of the selected changes would be applied to the future growth of the company in the particular period to achieve the objective. The external growth opportunities that Cleveland was considering are related to the business transformation regarding structural aspects.

On the other side, the internal situation is based on the cultural formulation subjected to the growth potential operationally as well as the firm’s going concern. To manage the potential changes discussed Dr. Cosgrove, it has determined that an external, as well as internal performance evaluation, should be considered for achieving the entire outcome. The performance appraisal involved a use of measurement that would allow supporting the strategy proposed by the firm.

Excluding all the particular conditions, the company was considered as one of the traditional leaders in the US healthcare industry that provides almost all the medical services in several regions of the estate. Cleveland was incepted in the early 1920s that had started with four physicians. Although, the expansion would involve execution of various strategies to compete with the latest technology and thus the company was successful at every stage that it changed it's internal as well as external performance measurements.

The primary focus of these strategies was related to the co-operation (Cultural changes) and innovation criteria (technological adoptions similar to the industry aspect). For all these sudden changes, it is identified that the company was in a mature stage and currently standing in the same scenario. The current primary objective that CEO (Cosgrove) set is to make sure that the patients would be served first so that it could attract more patients and local community. Cleveland has managed the operations under different traditional practices like the use of medical and other departments (Surgical for example).

Under the analysis of the healthcare industry, it has been identified that the revenues was increased almost more than the expected in the Philanthropic and there is a chance to further process the utilization rate by focusing the consistency of the historical results. With the industry’s perspective, healthcare system implementation is already in high demand, and that would be one of the highly ranked in the upcoming years due to increase in the patient’s level every year.

On the other side, the world report under the healthcare perspective indicates that Cleveland Clinic is amongst the fifth most highly ranked within united states because of the mature company that has a bucket of customer services and patients’ level. Therefore, with all these conditions and company’s historical background, it is determined that Cleveland is still focusing on to change the system level by optimizing the operational efficiency and financial growth by setting various forms of strategies that would be able to reach an optimal outcome of the company’s objective formulated by Dr. Cosgrove.

Key Issues:

The critical issue that the Cleveland Clinic is facing is that the management of clinic is unable to expand and grow the operations. The management is unable to formulate the strategies which the micro and macro environment of the clinic is demanding. Many of the clinics which are operating in the same industry in which Cleveland is operating, have already developed those strategies which seem to be quite crucial for the survival of the clinics. Although the revenues of the clinic are increasing, the increase in the revenue doesn’t necessarily ensure the long-term success of the company.

Situational Analysis:

Political:

The primary location of the Cleveland Clinic is the Ohio United States, the political environment of U.S. is very much stable, and the political situation in U.S., particularly in Ohio, is favorable for the business. Furthermore, the political leadership is also supporting the health care organizations which might help Cleveland clinics in achieving their ultimate goal. However, in recent times certain new parameters are introduced on which the performance of the health care organization will be judged, Cleveland Clinic might find it difficult to comply with these rules.

Another factor which needs to be considered is that Cleveland Clinic also operates in the other parts of the world such as Canada and UAE. If in future these countries face uncertain political situation, these factors might threaten the profitability of the organization. It might also be possible that the relation between U.S. and Canada or UAE deteriorates; this opposed relation between these territories might also affect the operations of Cleveland Clinics. It can be said that the law and order situation of the locality greatly affects the business of the organization.

Economic:

The economic situation in the U.S. and other parts of the world in which Cleveland is operating is continuously improving. The GDP of all the countries is subject to continuous growth; the inflation is minimum, wages levels are also increasing, as a result of these favorable economic factors, public spending on the health care is also increasing. In the modern environment many individuals are critical about their health issues and are spending more on the well being of their health, this might be a critical factor in the future success of the Cleveland Clinic.

Social:

The social environment of Ohio and U.S. is also favorable for the growth of the organization. Not only citizens are critical about their health issues but are also critical to the health care of other citizens as well. As the Cleveland Clinic is not for profit organization, it might gain the sympathy of the society as well which ultimately results in the increasing donation to the clinic. Other NGOs are also supporting the not for profit organization by giving financial aid and donation which works for the betterment of the society. Furthermore, the members of the community, as well as corporate companies, are also providing ahuge amount of charities to the health care organization which works for the betterment of the community.

Technological:

The technological environment is also quite positive for the growth of the health care organization; the access to the latest machinery is very easy for the U.S. health care organization. The innovation in the medical industry is providing the opportunities to health care organization to cater the needs and claims of the stakeholders better. By using the latest machines, Cleveland Clinic can also achieve economies of scale in its operations, by analyzing the cost centers of the healthcare organizations it can be said that many organizations are generating losses mainly due to the absence of the technology.

Environmental:

Environmental factors mainly include the carbon emission and the environmental footprints of the organization on the environment of the particular locality. For healthcare organizations, this factor is may be less important because the healthcare organization has minimum impact on the natural environment. The management of Cleveland Clinic should have to ensure that the impact of its services on the environment is positive, now a day’s many customers are critical about the impact of the operations of the organization on the environment. If the impact of the operations of the organization is negative, the customers might boycott the services of that organization.

CLEVELAND CLINIC TRANSFORMATION AND GROWTH Harvard Case Solution & Analysis

Legal:

This is the most crucial factor for the health care organizations. Cleveland Clinic is operating in the industry which is very sensitive, and the interest of general public and the regulatory authorities is usually very high. Cleveland Clinic must have to comply with the strict rules and regulations which are imposed by the regulatory authorities. Failure to comply with these regulations might have severe consequences on the long term survival of the health care organization, which may include fines and penalties. Non-compliance with rules and regulations might even affect the going concern status of the Cleveland Clinic, and the license of operations is might also cancel in case the breach of major guidelines. Moreover, the government or regulatory authority might cancel or reduce the level of financial assistance that is given by them to the Cleveland Clinic in case of noncompliance...................

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