The Mission Of An Strategic Service Units

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As health care has traveled down the path of accountability patient focused care has been aligned with reimbursement payments. In order to be successful health care organizations are striving to, such as the VA, have interdependent programs that can often make it difficult to define the strategic service units. The extended portfolio matrix analysis is a useful substitution when there is are restrictions in evaluating the strategy with the BCG method. In an expanded approach to a portfolio analysis consideration is made to the product, service, business line profitability. This approach also contemplates the market share and growth in order to identify the appropriate strategies. 1. Shining Stars are an aggressive enhancement or…show more content…
4. Faithful Dogs represents a low market share, low growth, high profit. By utilizing a status quo or retrenchment strategy it is likely that the profitability may decline over an extended period of time, or there may be an harvesting or divestiture strategy may be employed. (Ginter, Duncan, & Swayne, 2013, pp. 270-272) The extended portfolio matrix analysis is a dimensional cube versus the one dimensional cube in the BCG Portfolio Analysis graph. Found on the second dimension of the expanded product portfolio matrix is the opposite expectation of the front matrix. These strategic placings are known as the Black Hole, Problem Child, Crash Pig, and Mangy Dog. Each plays a very specific role in the strategic planning of healthcare. 1. Black Holes are when there is a high market share, high growth, low profit. Functional strategies when units fall under the black hole should focus on reducing costs and increasing the revenues. 2. Problem Children are selected products or a market developed with a strong functional commitment. Units or organizations that are problem children have a low market share with high growth and a low profit. Divesture and liquidation is the most appropriate venture for the product units that cannot become shining stars. 3. Cash Pigs have a high market share, a low growth, and a low profit. Organizations that utilize this strategy often give up market share with the goal of
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