Healthcare Value Chain Analysis

1120 Words 4 Pages
Within the healthcare industry, the management team of the healthcare organization develops a strategic plan, so that the business will have longevity within the medical industry. In order to ensure the strategic plan is implemented and functioning, the management must develop an action plan to help reach the strategic plan of the healthcare organization. Any business can fail if they fail to develop an action plan to implement their strategic plan (Sisson, 2013). Consequently, an action plan must address the following questions: “who, what, where, and when” (“Agency for Healthcare Research and Quality”, 2014, para. 4). Additionally, to help further identify where an action plan needs to be created within the organization, management can utilize …show more content…
One such way of figuring out strategic goals that will create a strategy that will enhance the healthcare organizations ability to have a future would be creating a value chain. The value chain contains elements that will help to define the service delivery activities and support activities of the healthcare organization, so that management can see the potential value of each activity contributing to the enhancement of the company (Ginter et al., 2013, p. 132). Subsequently, this will lead to how much capital may be distributed to the activity of the value chain because it shows the activity as being a competitive advantage (Ginter et al., 2013, p. 132). Service delivery activities include preservice, point of service, and after service, which are placed above the support activities because they are the decisive value making undertakings, whereas organizational culture, structure, and strategic resources support the service delivery activities (Ginter et al., 2013, p. 132). Depending on the organizational structure of the healthcare organization will depend on what elements of the value chain that needs to be used to evaluate the value of the activities within the healthcare …show more content…
The reason behind creating a checkpoint plan is to make sure the healthcare organization is achieving its strategic goals within its strategic management plan. In fact, if one particular strategy is not working then substitute a new action plan. Furthermore, the team must create a plan that can be continually improved upon that allows incentives to be given to employees that adhere to the company’s goals and values (AHRQ, 2014). In doing so, this allows the healthcare organization to be able to change quickly to the internal and external environment responses of the action plans set in place for the strategic management

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