SWOT Analysis According To Think ✓ Solved

SWOT Analysis SWOT Analysis SWOT Analysis According to Thinking

In healthcare, we follow procedures and practices that were modeled for us during our education. If we wish to better the environment that we're working in, it is important to understand that our models aren't what happens in the real world. To be successful, we should prepare ourselves by planning.

Part of the planning process involves preparing an analysis that allows the strategic planning team to reflect on where the organization has been, where it currently stands, and where it is going. This process reviews the internal aspects (strengths and weaknesses) and external forces (opportunities and threats) and is better known as a SWOT analysis. Through a SWOT analysis, the healthcare system can find the best route to successfully planning of the organization.

The objective of this SWOT Analysis is to define a goal for Laboratory Corporation of America and examine at minimum two weaknesses, opportunities, and threats that could be leading risk factors into organizational future success. Additionally, the SWOT Analysis will show the distinction between where the organization is today and where it could be in the future.

SWOT Analysis of Laboratory Corporation of America

Strengths:

- Engages medical and scientific staff

- An overall workforce of nearly 60,000 employees

- 115 million plus patient encounters per year

- Supporting clinic trials in about 100 countries

- Strong history of acquisitions and strategic collaborations

- Logistic capabilities through courier vehicles and aircraft transport

- 15 Specialty Testing Groups/Labs

- Excess of $10 billion revenue in 2017

- Strong community outreach programs and philanthropy

Weaknesses:

- Lack of skilled employees to fill voids in employment numbers

- Too focused on productivity leading to more errors in patient results and increased costs

- Company compartmentalization (large separation in divisions/specialization)

- Disconnect from patient service center to lab testing locations

- Information security breach of July 2018

- Client services and patient data sharing

- National/International leasing of properties

- Lack of trained employees during high demand and client growth

Opportunities:

- Purchase buildings that are currently leased to LabCorp to save on operating expenditures

- More strategic collaborations with companies like Walgreens, CVS, RiteAid, Walmart

- College outreach/recruitment programs seeking skilled healthcare and information systems professionals

- Venture with information systems company to perform risk audits and security compliance checks

- Secure lab service agreements with IPAs, Hospital Systems, and Department of Corrections

- Capitalize on growing demand for “trendy” services such as 23 and Me, ancestry/heritage testing

Threats:

- Healthcare reform involving biopharmaceutical industries

- Government-owned labs offering cheaper diagnostics

- International healthcare policy/framework changes

- Changes to payer regulations in the USA

- Exclusion from government programs due to anti-fraud and abuse regulations

- Increased costs if FDA regulations of laboratory developed tests and diagnostic products are limited

- Discontinuation or recalls of existing testing products

- Increased competition from competitors

- Failure to obtain new clients/retention

Prioritization of SWOT Items

According to David Brydson (2018), strategy defines, or outlines, the desired goals and why you should go about achieving them. The strategic planning phase involves business thinkers determining why, and in a global sense, what you will achieve your stated goals. Tactics are the specific actions you take in implementing your strategy. These actions comprise what is to be done, in what order, and using which tools and personnel.

When considering which areas to focus energy on while strategic planning, LabCorp should implement tactics that enable the company to reduce information security breaches, property cost, and productivity errors. It is crucial for the company to ensure their clients and providers that their privatized health information is secured, particularly after the security breach in July 2018. Recruiting college graduates in the IS/IT field to assess the secureness of their current IT system could be beneficial. This could help ensure a trusted reputation, which is paramount for retaining clients.

Additionally, LabCorp must consider that increased demand from clients necessitates skilled healthcare professionals. As older generations require more care, LabCorp needs to attract these professionals with competitive compensation packages to retain employees. Maintaining above-industry compensation standards can lead to reduced stress and pressure, better employee performance, and consequently lower testing errors. A supportive management team enhances employee willingness to work harder, resulting in quality service that keeps clients satisfied.

Conclusion

In conclusion, an extensive SWOT analysis of LabCorp reveals both strengths that can be leveraged and weaknesses that require attention. The company can become an extremely rewarding place for both employees and clients by investing resources in addressing these weaknesses. By focusing on strategic planning, employee retention, and building a strong reputation for data security, LabCorp can secure its position in the competitive healthcare landscape. The overarching mission of LabCorp is “Improving Health, Improving Lives,” which will require continuous improvement and adaptation to meet the evolving needs of clients and the healthcare environment.

References

  • Brydson, D. (2018, April 30). Strategic and Tactical Planning: Understanding the Difference. Retrieved from Small Biz Link: A Monster Community.
  • Laboratory Corporation of America Holdings. (2017). Annual Report Form 10-K. Burlington/Washington, DC: United States Securities Exchange Commission.
  • Laboratory Corporation of America Holdings. (2018, November 26). About US. Retrieved from LabCorp.
  • Meadows, D. H. (2008). Thinking in Systems: A Primer. White River Junction: Chelsea Green Publishing.
  • Walgreens. (2018, October 10). Walgreens and LabCorp to Open at Least 600 LabCorp at Walgreens Patient Service Centers. Retrieved from Walgreens Newsroom.
  • Rafaeli, A. Z. (2007). The Impact of Call Center Employees’ Customer Orientation Behaviors on Service Quality. Journal of Service Research, 1-17.
  • Tsoukatos, E. (2011). A structural equations approach to assessing alternative service quality metrics within an extended service quality, customer satisfaction, customer loyalty model. Global Business and Economics Review, 13(3/4).

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