virginia mason medical center case study solution

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Virginia Mason Medical Center

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Virginia mason medical center description.

In 2000, Dr. Gary Kaplan became CEO of the Virginia Mason Medical Center in Seattle, Washington. The hospital was facing significant challenges: It was losing money for the first time in its history, staff morale had plummeted, and area hospitals presented ardent competition. Considerable change was imminent. Within his first few months, Kaplan had rallied the organization around a new strategic direction: to become the quality leader in health care. What Kaplan and his administrators lacked was an effective tool to execute their strategy. Soon thereafter, a series of serendipitous events led to the discovery of the Toyota production system, and the Virginia Mason Medical Center became entrenched in an overwhelming challenge: how to institute a production model in health care.

Case Description Virginia Mason Medical Center

Strategic managment tools used in case study analysis of virginia mason medical center, step 1. problem identification in virginia mason medical center case study, step 2. external environment analysis - pestel / pest / step analysis of virginia mason medical center case study, step 3. industry specific / porter five forces analysis of virginia mason medical center case study, step 4. evaluating alternatives / swot analysis of virginia mason medical center case study, step 5. porter value chain analysis / vrio / vrin analysis virginia mason medical center case study, step 6. recommendations virginia mason medical center case study, step 7. basis of recommendations for virginia mason medical center case study, quality & on time delivery.

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Case Analysis of Virginia Mason Medical Center

Virginia Mason Medical Center is a Harvard Business (HBR) Case Study on Technology & Operations , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Virginia Mason Medical Center is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Virginia Mason Medical Center case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Virginia Mason Medical Center will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Virginia Mason Medical Center case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Technology & Operations, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Virginia Mason Medical Center, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Virginia Mason Medical Center case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Technology & Operations Solutions

In the Texas Business School, Virginia Mason Medical Center case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Virginia Mason Medical Center

Step 1 – Problem Identification of Virginia Mason Medical Center - Harvard Business School Case Study

The first step to solve HBR Virginia Mason Medical Center case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Kaplan Mason is facing right now. Even though the problem statement is essentially – “Technology & Operations” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Kaplan Mason, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Virginia Mason Medical Center. The external environment analysis of Virginia Mason Medical Center will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Virginia Mason Medical Center case study. PESTEL analysis of " Virginia Mason Medical Center" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Virginia Mason Medical Center macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Virginia Mason Medical Center

To do comprehensive PESTEL analysis of case study – Virginia Mason Medical Center , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Virginia Mason Medical Center

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ Virginia Mason Medical Center ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Kaplan Mason is operating, firms are required to store customer data within the premises of the country. Kaplan Mason needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Virginia Mason Medical Center has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Kaplan Mason in case study Virginia Mason Medical Center" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Kaplan Mason in case study “ Virginia Mason Medical Center ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Kaplan Mason in case study “ Virginia Mason Medical Center ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Virginia Mason Medical Center ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Kaplan Mason can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Virginia Mason Medical Center case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Kaplan Mason needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Virginia Mason Medical Center

Social factors that impact virginia mason medical center, technological factors that impact virginia mason medical center, environmental factors that impact virginia mason medical center, legal factors that impact virginia mason medical center, step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: virginia mason medical center case study solution.

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Virginia Mason Medical Center Case Analysis and Case Solution

Posted by Peter Williams on Aug-09-2018

Introduction of Virginia Mason Medical Center Case Solution

The Virginia Mason Medical Center case study is a Harvard Business Review case study, which presents a simulated practical experience to the reader allowing them to learn about real life problems in the business world. The Virginia Mason Medical Center case consisted of a central issue to the organization, which had to be identified, analysed and creative solutions had to be drawn to tackle the issue. This paper presents the solved Virginia Mason Medical Center case analysis and case solution. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution.

The case solution first identifies the central issue to the Virginia Mason Medical Center case study, and the relevant stakeholders affected by this issue. This is known as the problem identification stage. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. The tools used in identifying the solution consist of the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis. The solution consists of recommended strategies to overcome this central issue. It is a good idea to also propose alternative case study solutions, because if the main solution is not found feasible, then the alternative solutions could be implemented. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. This shows how through a step-by-step procedure as to how the central issue can be resolved.

Problem Identification of Virginia Mason Medical Center Case Solution

Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. In the problem identification stage, the problem faced by Virginia Mason Medical Center is identified through reading of the case. This could be mentioned at the start of the reading, the middle or the end. At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. At other times, finding the issue is the job of the person analysing the case. It is also important to understand what stakeholders are affected by the problem and how. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these.

Analysis of the Virginia Mason Medical Center HBR Case Study

The objective of the case should be focused on. This is doing the Virginia Mason Medical Center Case Solution. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found.

• In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. These can usually be developed using the company history is provided in the case. Company history is helpful in a Business Case study as it helps one understand what the scope of the solutions will be for the case study.
• The next step is of understanding the company; its people, their priorities and the overall culture. This can be done by using company history. It can also be done by looking at anecdotal instances of managers or employees that are usually included in an HBR case study description to give the reader a real feel of the situation.
• Lastly, a timeline of the issues and events in the case needs to be made. Arranging events in a timeline allows one to predict the next few events that are likely to take place. It also helps one in developing the case study solutions. The timeline also helps in understanding the continuous challenges that are being faced by the organisation.

SWOT analysis of Virginia Mason Medical Center

An important tool that helps in addressing the central issue of the case and coming up with Virginia Mason Medical Center HBR case solution is the SWOT analysis.

• The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. It helps in the strategic analysis of Virginia Mason Medical Center.
• Once this listing has been done, a clearer picture can be developed in regards to how strategies will be formed to address the main problem. For example, strengths will be used as an advantage in solving the issue.

Therefore, the SWOT analysis is a helpful tool in coming up with the Virginia Mason Medical Center Case Study answers. One does not need to remain restricted to using the traditional SWOT analysis, but the advanced TOWS matrix or weighted average SWOT analysis can also be used.

Porter Five Forces Analysis for Virginia Mason Medical Center

Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. This is also a strategic tool that is used to analyse the competitive environment of the industry in which Virginia Mason Medical Center operates in. Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business environment of the industry that they operate in. Harvard Business case studies represent real-life situations, and therefore, an analysis of the industry's competitive environment needs to be carried out to come up with more holistic case study solutions. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions.

• These are the threats that the industry faces due to new entrants.
• It includes the threat of substitute products.
• It includes the bargaining power of buyers in the industry.
• It includes the bargaining power of suppliers in an industry.
• Lastly, the overall rivalry or competition within the industry is analysed.

This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. Actionable and practical solutions can then be developed by keeping these factors into perspective.

PESTEL Analysis of Virginia Mason Medical Center

Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. This also looks at the external business environment of the organisation helps in finding case study Analysis to real-life business issues as in HBR cases.

• The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry.
• Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question.
• These factors are also responsible for the future growth and challenges within the industry. Hence, they should be taken into consideration when coming up with the Virginia Mason Medical Center case solution.

VRIO Analysis of Virginia Mason Medical Center

This is an analysis carried out to know about the internal strengths and capabilities of Virginia Mason Medical Center. Under the VRIO analysis, the following steps are carried out:

• The internal resources of Virginia Mason Medical Center are listed down.
• Each of these resources are assessed in terms of the value it brings to the organization.
• Each resource is assessed in terms of how rare it is. A rare resource is one that is not commonly used by competitors.
• Each resource is assessed whether it could be imitated by competition easily or not.
• Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not.

The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. If a resource is high on all of these 4, then it brings long-term competitive advantage. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. If a resource is only valuable, then it’s a competitive parity. If it’s none, then it can be regarded as a competitive disadvantage.

Value Chain Analysis of Virginia Mason Medical Center

The Value chain analysis of Virginia Mason Medical Center helps in identifying the activities of an organization, and how these add value in terms of cost reduction and differentiation. This tool is used in the case study analysis as follows:

• The firm’s primary and support activities are listed down.
• Identifying the importance of these activities in the cost of the product and the differentiation they produce.
• Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities.

Recognizing value creating activities and enhancing the value that they create allow Virginia Mason Medical Center to increase its competitive advantage.

BCG Matrix of Virginia Mason Medical Center

The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. The steps to be followed in this analysis is as follows:

• Identify the relative market share of each strategic business unit.
• Identify the market growth of each strategic business unit.
• Place these strategic business units in one of four categories. Question Marks are those strategic business units with high market share and low market growth rate. Stars are those strategic business units with high market share and high market growth rate. Cash Cows are those strategic business units with high market share and low market growth rate. Dogs are those strategic business units with low market share and low growth rate.
• Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix.

The strategies identified from the Virginia Mason Medical Center BCG matrix and included in the case pdf. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting.

Ansoff Matrix of Virginia Mason Medical Center

Ansoff Matrix is an important strategic tool to come up with future strategies for Virginia Mason Medical Center in the case solution. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products.

• The organization can penetrate into existing markets with its existing products. This is known as market penetration strategy.
• The organization can develop new products for the existing market. This is known as product development strategy.
• The organization can enter new markets with its existing products. This is known as market development strategy.
• The organization can enter into new markets with new products. This is known as a diversification strategy.

The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take.

Marketing Mix of Virginia Mason Medical Center

Virginia Mason Medical Center needs to bring out certain responses from the market that it targets. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. The 4 elements of the marketing mix are Product, Price, Place and Promotions. The following steps are required to carry out a marketing mix analysis and include this in the case study analysis.

• Analyse the company’s products and devise strategies to improve the product offering of the company.
• Analyse the company’s price points and devise strategies that could be based on competition, value or cost.
• Analyse the company’s promotion mix. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. Strategies will be devised which makes use of a few or all of these elements.
• Analyse the company’s distribution and reach. Strategies can be devised to improve the availability of the company’s products.

Virginia Mason Medical Center Blue Ocean Strategy

The strategies devised and included in the Virginia Mason Medical Center case memo should have a blue ocean strategy. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. It involves coming up with new and unique products or ideas through innovation. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy.

Competitors analysis of Virginia Mason Medical Center

The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. The Competitors analysis of Virginia Mason Medical Center looks at the direct and indirect competitors within the industry that it operates in.

• This involves a detailed analysis of their actions and how these would affect the future strategies of Virginia Mason Medical Center.
• It involves looking at the current market share of the company and its competitors.
• It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc.
• It also should look at the potential opportunities and threats that these competitors pose on the company.

Organisation of the Analysis into Virginia Mason Medical Center Case Study Solution

Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. These solutions will also be the Virginia Mason Medical Center case answers. These are usually in the form of strategies that the organisation can adopt. The following step-by-step procedure can be used to organise the Harvard Business case solution and recommendations:

• The first step of the solution is to come up with a corporate level strategy for the organisation. This part consists of solutions that address issues faced by the organisation on a strategic level. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. It can include recommendations on how the organisation can work towards achieving these strategic objectives. Furthermore, it needs to be explained how the stated recommendations will help in solving the main issue mentioned in the case and where the company will stand in the future as a result of these.
• The second step of the solution is to come up with a business level strategy. The HBR case studies may present issues faced by a part of the organisation. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Therefore, the strategic objectives of this business unit (Marketing) will be laid down in the solutions and recommendations will be made as to how to achieve these objectives. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. For example, if one suggests the organisation to focus on differentiation for competitive advantage as a corporate level strategy, then it can't be recommended for the Virginia Mason Medical Center Case Study Solution that the business unit should focus on costs.
• The third step is not compulsory but depends from case to case. In some HBR case studies, one may be required to analyse an issue at a department. This issue may be analysed for a manager or employee as well. In these cases, recommendations need to be made for these people. The solution may state that objectives that these people need to achieve and how these objectives would be achieved.

The case study analysis and solution, and Virginia Mason Medical Center case answers should be written down in the Virginia Mason Medical Center case memo, clearly identifying which part shows what. The Virginia Mason Medical Center case should be in a professional format, presenting points clearly that are well understood by the reader.

Alternate solution to the Virginia Mason Medical Center HBR case study

It is important to have more than one solution to the case study. This is the alternate solution that would be implemented if the original proposed solution is found infeasible or impossible due to a change in circumstances. The alternate solution for Virginia Mason Medical Center is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations.

Implementation of Virginia Mason Medical Center Case Solution

The case study does not end at just providing recommendations to the issues at hand. One is also required to provide how these recommendations would be implemented. This is shown through a proper implementation framework. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. It also lays down the changes needed to be made as well as the assumptions in the process.

• A proper implementation framework shows that one has clearly understood the case study and the main issue within it.
• It shows that one has been clarified with the HBR fundamentals on the topic.
• It shows that the details provided in the case have been properly analysed.
• It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented.
• The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Therefore, the implementation framework ensures that the solution to the Virginia Mason Medical Center Harvard case is complete and properly answered.

Recommendations and Action Plan for Virginia Mason Medical Center case analysis

For Virginia Mason Medical Center, based on the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis, the recommendations and action plan are as follows:

• Virginia Mason Medical Center should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL.
• Virginia Mason Medical Center should enhance the value creating activities within its value chain.
• Virginia Mason Medical Center should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis.
• To achieve its overall corporate and business level objectives, it should make use of the marketing mix tools to obtain desired results from its target market.

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• June 2010 (Revised June 2010)
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Virginia Mason Medical Center (Abridged)

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Case Study Solutions

Virginia Mason Medical Center

Subjects Covered Leadership Models Toyota production system

by Richard Bohmer, Erika M. Ferlins

Source: HBS Premier Case Collection

28 pages. Publication Date: Oct 03, 2005. Prod. #: 606044-PDF-ENG

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Supply Chain Partners: Virginia Mason and Owens & Minor (A) Harvard Case Solution & Analysis

Home >> Supply Chain Management Cases >> Supply Chain Partners: Virginia Mason and Owens & Minor (A)

Introduction

The matter of the case is about the supply chain management. Virginia Mason, a midsized non-profit organization, and Owen and Minor, a leading distributor of medical and surgical supplies to acute care hospital market, were considering the methods of supply chain which would be suitable for the company’s supply chain management.

Virginia Mason

Virginia Mason, a medical center, is a mid-sized, private, non-profit organization located in Seattle. The company owned 336 licensed beds in its medical center, employing over 400 physicians and earned $665 in revenue. It offered both primary and specialized care and was affiliated with the University of Washington as a teaching site. Nearly a century after its founding, Virginia Mason continued to be a largely consensus driven organization, carrying a vision “to be the quality leader and transform health care”

Owens & Minor

Owens & Minor (O&M) operated in medical/surgical supply industry. Being one of the leading distributors of medical and surgical supplies to the acute-care hospital market, Owens & Minor earned $6.8 billion in 2007, with net income of $72 million.         The leading segment of the company was disposable supplies which accounted for $34.5 billion in revenues in 2005. O&M’s distribution centers served customers within a 200-mile radius using mostly leased truck. O&M distributes over 180,000 finished medical and surgical products produced by over 1200 suppliers to approximately 4,100 health care provider customers from 45 distribution centers nationwide. The products include gloves, wound closure devices, sterile, procedure trays, operating room items and intravenous products etc; the company’s primary customers are acute-care hospitals which account for approximately 90% of O&M’s revenue. Apart from distribution, the company also offered supply-chain management services and private label products.

Q1). What is your evaluation of the Total Supply Chain Cost (TSCC) program developed by Owens & Minor (O&M) and Virginia Mason (VM)?

In March 2004, a team of Virginia Masons including, Daniel Borunda, materials system manager, Tom Nance, director of purchasing and John Donnelly, administrative director of supply chain visited O&M’s corporate offices where Stefanic, director of cost management at Owens & Minor gave his activity-based pricing presentation. After that Virginia Mason decided to engage O&M as its medical/surgical supply alpha vendor. Virginia Mason transferred the existing Low Unit Measure (LUM) and Just in Time (JIT) deliveries throughout the organization to O&M. In February 2005, Virginia Mason started to work with O&M in order to establish a new comprehensive activity based pricing method, Total Supply Chain Costs (TSCC) program that would minimize the supply chain costs between both companies.

Just like the other distributors, O&M was also using a cost plus pricing method where the distributor adds a mark-up on the product and charges it from the customer. Due to the limitations of cost plus pricing, the distributors were left with only low margin items, as the providers directly buy the higher value item from the manufacture in order to save costs.

After the meeting, both VM and O&M worked towards the TSCC program. The main idea of TSCC program was to minimize the extra costs related to supply chain using activity based management. The TSCC program enables VM and O&M to identify several cost drivers assigned to different cost pools including, occupancy, delivery and supplier costs. Moreover, many critical facts were discovered as a result of TSCC program.

TSCC program enabled VM and O&M to identify the largest driver of costs in the distributor/ provider relationship that was the number of stock keeping unit (SKU) on hand, which was ignored by the industry. This identification of a new cost driver was a big success of TSCC program. This cost driver included inventory cost, interest on inventory, occupancy cost, warehouse cost, and overhead cost of each SKU.

An evaluation of two customer groups done by O&M reveals the actual cost of servicing incurred for both customers and the customer profitability were not the same. Both the customers purchased $1,500,000 per month and had the same average number of line and orders per month. Customer A purchased 2900 different SKUs, whereas, Customer B purchased 8,000 different SKUs. However, the customer profitability of each customer was not the same. This was because the effort and expense was much greater for Customer B. O&M’s cost of servicing Customer B was higher than for Customer A, due to the higher number of different SKUs purchased by Customer B and the distribution fees for both the customers were the same in a cost-plus pricing model. In the ABC costing model, the distribution fees for the customers ordering a higher number of SKUs should be charged accordingly as it increases the service cost of those customers...........................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

Virginia Mason Medical Center (VM) hired Owens & Minor (O & M) as the alpha provider of medical / surgical equipment in 2004. By 2005, O & M acted JIT and LUM services for VM, but they believed that the industry's pricing model is outdated. VM and O & M partner to create the Total Supply Chain costs (TSCC) the price of the program based on a model which contains all the drivers cost distribution and processing equipment for the VM, and assured, O & M of profit. TSCC incented VM optimize its distribution activities, as they will directly influence its collection. After beta testing the TSCC one year, VM Daniel Borunda and O & M Michael Stefanic believed that TSCC was better and more cost-effective pricing model, but they could convince their companies to invest in TSCC? "Hide on VG Narayanan, Lisa Brem Source: Harvard Business School 27 pages. Publication date: April 15, 2009. Prod. #: 109076-PDF-ENG

Virginia Mason and Owens & Minor SWOT Analysis

Virginia Mason and Owens & Minor have been in business for over a century.

How does this business get ahead in the industry? Here are some of their strengths:

They first started as a medical service in the 1930s. The business was one of the first to use PESTLE analysis. In fact, their PESTLE analysis is still one of the most popular methods used by companies today.

PESTLE Analysis is used by businesses today in many different ways. Some businesses use it to determine if they need to adjust their operations. For example, a company could use PESTLE analysis to see if their pricing structure could be changed to better suit their customers. If they are able to provide better value to their customers, then they will increase their sales.

Another way that PESTLE Analysis is used by businesses today is to determine whether or not to cut back on costs. If they see that their PESTLE analysis numbers aren't moving higher, then it's likely that they are cutting back on their overhead.

As a service, the company developed a system for measuring profits, called Case Study Analysis. This system uses surveys of customer satisfaction to determine how the business is doing. Case Study Analysis is now used by many services today. It gives the service owner a look at how they are doing compared to other medical services.

Some  services go beyond the use of PESTLE Analysis by developing additional techniques such as SWOT Analysis. Their SWOT Analysis technique will allow the services to take a good look at their current and future profit potential.

The medical service should develop a system for SWOT Analysis. It will help the service owner to determine whether or not they are currently maximizing the profit potential for their business.

PESTLE Analysis is great, but a small business can never reach the kind of heights that a large company can reach. Many of the bigger medical services have a strong presence in the market. The smaller  services must do more than just make money, they have to also develop an image for themselves so that they can remain competitive.

By developing SWOT Analysis, a service can do this. They must use the data they gather from their Case Study Analysis and SWOT Analysis to develop a marketing plan that will allow them to develop a strong reputation in the market. A well-planned marketing plan will be able to help a small service reach its full potential.

Any service is going to require the help of a marketing consultant to help them develop a good marketing plan. They will be able to develop a marketing plan that will benefit both the services and the marketing consultant. There are many reasons why a medical service needs a marketing consultant.

A management consulting firm will be able to create a marketing plan that allows the healthcare service to leverage all of its marketing resources to maximize profits. By hiring a management consulting firm, the service owner can focus all of their marketing resources on finding new customers.

Virginia Mason and Owens & Minor PESTLE Analysis

Virginia Mason and Owens & Minor Medical Care Company have a Project Management for Health (PMH) program. The PMH program is created to assist the Company in creating a concise and standardized Health Management System (HMS) that can serve all of its medical staff. The project can be viewed as a case study for the PMH.

With this program the Medical Care Company is implementing a unique methodology to promote the introduction of Health Management Systems into its facility. The PMH Program will have a great impact on the overall health of the Medical Care Company and it will improve patient care.

The greatest benefit that this type of system has for surgical centers is that it promotes better utilization of available technology. In a clinical setting with a larger population that is comprised of patients who are ambulatory, it is necessary to have a way to manage the use of the equipment and materials that are used during surgery.

The case study analysis presented here will attempt to help the reader understand the initial review and implementation of the project. It will also help to illustrate the competencies needed to complete the work. There are many tools that are used to monitor health care organizations, but the use of the PESTLE study helps to identify the strengths and weaknesses of the organization.

The organization should be able to use the tools provided by the PESTLE for Health case study analysis to develop and assess the most effective practices within the Medical Care Company. The case study can be used to identify the strengths and weaknesses that will provide information that will help in improving the overall systems . This case study will help to improve organizational competency and the medical center's performance.

An interesting fact about the PMH Project Management for Health Program is that it involves a software program. The medical center will use software to develop a system that can serve the surgical center's health care needs. The case study will help the reader understand the competencies required for software development and will help the Medical Care Company determines which tools are necessary to create the system.

The PESTLE case study analysis was able to provide the Medical Care Company with the information needed to effectively create the best possible medical management system. The medical center's ability to expand and maintain patient care will be improved. The System will provide more efficient use of resources and reduce redundant efforts.

The case study analysis is a very important tool that can help the Medical Care Company and the hospital understand the strengths and weaknesses of the project. The program provides the organizational competency that will help the Medical Center determines what types of tools are necessary to achieve the project. The case study provides an overview of what tools were implemented and how well they were utilized by the Medical Center.

It is important for the Medical Care Company to understand the capabilities and weaknesses of the current systems before creating new ones. The process of creating the medical management system will provide the information needed to identify what types of tools are necessary to manage the systems. The PESTLE process can be utilized by the Medical Center to determine the competencies needed for software development.

The project management should include all of the employees at the Medical Center. This process will help to identify the competencies needed for the Medical Center must implement the project to ensure it will be successful. The case study analysis can be used by the Medical Center to identify the strengths and weaknesses of the management project.

It is important for the Medical Care Company to ensure that each member of the team knows what is expected of them when it comes to the management system. There should be an understanding of the requirements that will help to identify the competencies needed for creating the system. the system.

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