Purpose of a SWOT Analysis
A SWOT analysis in Steven's District Hospital's case will be instrumental in prioritizing allocation if resources meant for either improving or strengthening the identified key areas by the analysis. Based on the hospital's strategic plan, different actions have been put in place to solve the identified challenges the hospital is currently facing, that is, low scores and shortage of family physicians. Therefore, based on the SWOT, the management can identify the action that demands urgent attention than the other (Pickton & Wright, 1998).
Also, Steven's district hospital needs a SWOT for the purpose of ensuring that decisions regarding revenue projection and general forecasting of the hospital's position in terms of market share, profit margin, solvency, among other factors are sensible and realistic. Since a SWOT analysis outlines aspects such as the weaknesses, strengths, threats, and opportunities for the hospital, forecasting becomes easier because decisions are made based on what is known (strengths and weaknesses) and the available space for adjustment (opportunities and threats).
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Advantages of Developing a SWOT Analysis without Stakeholders
Company specific sensitive information is maintained as private. A SWOT analysis acts as a reflection of whatever is really happening in both the internal and external environment of the business (Helms & Nixon, 2010). Therefore, information on such aspects might be used for selfish reasons by some stakeholders if they were to be involved in developing one. For instance, if a company has a weakness if financial instability as identified by the SWOT, stakeholders such as shareholders and investors might act to protect themselves yet such a situation can be rectified through strategic management and financial planning.
Additionally, the management of the company has an opportunity to interact with aspects of the business that are key to management practice, which might be helpful specifically in their management strategies. For instance, the issue of competition, technology, high production costs, among others are primary to management strategic planning whereby if a manager conducts a SWOT analysis alone, they will be able to perfect their style of management due to a direct interaction compared to when done by a group of stakeholders.
Limitations
The limitation of conducting a SWOT analysis alone is the lack of diversity in scrutinizing the issues facing the business. Additionally, there is a sense of bias in analyzing various aspects, for instance, a manager might not categorize poor management as a weakness since it directly involves them. Therefore, based on this lack of diversity and potential biasness, action on the SWOT might not have an effective impact on the business.
Steven's District Hospital SWOT Analysis
| Steven's Hospital's net revenue is currently at $343,737,280 before end if the year. | Strength: strong brand name. |
| Need to hire more family physicians, three of them. | Strength: Economies of scale |
| Decrease in patient visits from 48 to 35. | Weakness: Poor management |
| Decrease in attendance from 48 to 35 | Weakness: Low market share |
| Regulatory laws such as the Affordable Care Act will increase insurance coverage, thus increase in patient visits. | Opportunity: Increase in revenue |
| Medical center south of Steven's hospital has increased the number of visits through use of e-visits technology. | Opportunity: Increase in market share through technological disruption. |
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Medical center south of Steven's hospital has physician clinics enabled by e-visits and is also stable financially. Hanover has made facility upgrades and has outstanding scores. |
Threat: Stiff competition from rivals at both district and county level |
| There is a general shortage of oncology, orthopedic, and primary care doctors. | Threat: Shortage of doctors |
References
Helms, M. M., & Nixon, J. (2010). Exploring SWOT analysis–where are we now?. Journal of strategy and management.
Pickton, D. W., & Wright, S. (1998). What's swot in strategic analysis?. Strategic change, 7(2), 101-109.
