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Related Experiment Videos

What business are you in?

S R Orr, J T Siegal

    Physician Executive
    |August 8, 1986
    PubMed
    Summary

    Healthcare organizations need a clear business focus. Adopting a strategic business unit approach can bring much-needed order and purpose to evolving healthcare delivery systems.

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    Physician executive·1986

    Area of Science:

    • Healthcare Management
    • Organizational Strategy
    • Business Development

    Background:

    • The healthcare delivery system is undergoing continuous evolution with new organizational forms emerging.
    • Current healthcare organizations often lack a defined sense of purpose and strategic direction.
    • Critical business questions regarding core business and customer identification remain unaddressed.

    Purpose of the Study:

    • To highlight the need for strategic clarity in healthcare organizations.
    • To propose a framework for improving business development processes.
    • To encourage healthcare entities to define their core business and customer base.

    Main Methods:

    • Conceptual analysis of organizational structures in healthcare.
    • Application of strategic business principles to healthcare management.
    • Discussion of the "What business are we in?" and "Who are our customers?" frameworks.

    Main Results:

    • The current healthcare landscape is characterized by disorganization and a lack of strategic focus.
    • Many healthcare organizations fail to define their fundamental business and target customers.
    • A strategic business unit approach is identified as a solution for business development.

    Conclusions:

    • Healthcare organizations must adopt a strategic business unit approach for effective business development.
    • Defining the core business and identifying target customers are crucial for organizational success.
    • Implementing strategic clarity can bring order and purpose to the evolving healthcare system.

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