Assignment 06: Life Cycles in Healthcare

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BCG MATRIX ANALYSIS

McKinsey 7s model is a tool that is used in analyzing the organizational design. This is done through examining seven vital organizational internal elements. “These elements include systems strategy, structure, collective values, styles, skills, and staff” (Gechkova, T., & Kaleeva, 2020). This is done to effectively identify these factors are appropriately aligned to allow the organization to achieve its objectives.

The Boston consulting group model (BCG) analyzes an organization's products or services. The matrix is fabricated basing on the relative market share and the growth rate of the market. These are the two significant factors forming the four BCG matrix quadrants. The y-axis, which represents the growth rate of the market, helps measure the appeal or the market demand. When there is a high growth rate in the market, there are more opportunities, and thus there is a high earning potential. The x-axis represents the relative share of the market. It evaluates the competitive strength looking at the revenue generated by the divisions or products of an organization.

CoxHealth Foundation will be analyzed in this case. This foundation's system is defined by capital improvement, which is defined as a star, the clinics are defined as a “cash cow”, the community impact initiative is defined as a “question mark”, and charity is defined as a “dog” (CoxHealth. 2017). This will be shown in the BCG matrix.

The capital improvements require large investments so that the company can stay ahead. The cash flow may start as negative until the time when there are improvements made and business resumes as normal. As time continues, cash flow will become profitable if there is a good plan in place. The organization clinics are a very instrumental revenue source for this organization. High and stable cash flow are very important for this company. There is a good strategy of investing in maintaining the organization's current level. The organization's community impact initiative (a question mark) is vital in the community. The charities (a dog) usually have a neutral or negative cash flow (Pascaris, 2017). The organization fund has numerous finances that help the people who cannot afford the care they need frantically. For full support, the applicants are supposed to fill a form and fulfill the requirements highlighted for the various funds.

CoxHealth BCG matrix

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Low High low

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