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You are required to choose a company that you will research for this assignment.

Note: Choose organization is Mediclinic International

  • Balanced Scorecards, including
    • Financial Ratios
    • Comparator Financial Ratios
  • SWOT
  • PEST, PESTLE or STEEPLE –including Industry Lifecycle
    • Corporate Governance
    • Social Responsibility & Ethics
  • Porters Five Forces
  • Benchmarking against Industry/sector/competition/best practice(centres of excellence)
  • Strategic Position & capabilities/resources
    • Culture and its organisational past
    • Strategic Drift
  • VRIN Model (Value, rarity, Inimitability, non-substitutability)
  • McKinsey 7S – hard and soft
  1. Identify ONE Challenge – Why is it important?
  2. Options – 5W’s & How

Examples of models/frameworks that may help you with this aspect of the question:

  1. Types of Change
  2. Porter’s Generic Strategies
  3. Ansoff’s Matrix
  4. Growth – Organic/Diversify/M&A
  1. Evaluate options – Select best way forward.

Balanced Scorecards (Financial Ratios, Comparator Financial Ratios)

Mediclinic International is an International healthcare provider with a number of hospitals located in different places like South Africa, UAE and Switzerland ( 2018). Headquartered in South Africa, the company is listed in the South African Security Exchange as well as the London Stock Exchange. The hospital that was founded in 1983 has now an annual revenue of more than pound 2500 million and a net income of pound 250 million. This makes it one of the most profitable hospitals of the world. The following report aims to analyze the internal and external environment as well as the strategic choices of the hospital.





Return on equity (6.03)-2017

Competitors Average- 1.78

Effective supply chain

High end customers

Higher amount of sales

Current Ratio (1.81)-2017

Competitors Average- 1.76

Lean process of customer service

Expected to grow 5 percent per year in terms of customers

Expected to grow 8 percent per yearDebt equity Ratio (0.43)-2017

Competitors Average- 0.47



The management of the mentioned hospital generally employs highly skilled employees who have a proper amount of experience under their fold.


The failure of the company to come out of the traditional system of providing services has led to the turned the company incapable to provide quality services to the people.


The failure of the hospital if well dealt by the management can be turned into profitable opportunities.

The management of the hospital must use the help of the latest technologies to provide a much high standard of healthcare to the patients.


The absence of modern technologies and its use by other competitors along with the emergence of large number of small clinics has been a throne to the success of the hospital in modern times.



Political stability of the operating countries especially in South Africa

The amount of corruption. The political factor is crucial at the beginning stage


Economic situation of the countries

GDP of the country. The economic factor is important at beginning and growth stage of the organization.


Skill levels of the residents of the country

Culture of the country. Social factors form an important part in the growth and maturity stage. The company is socially responsible to provide the patients with best services


Technological developments in the country

Cost Structure in healthcare industry. The saturated market stage involves the use of technology.

Five Forces porters

Threat of new entrants


Bargaining power of the buyers


Threat of substitute


Bargaining power of suppliers


Competition among the rivalry


Existence of other health centres

Quality of the practitioners

Better patient service

Good check up system

The main strategies of the hospital are;

  1. Providing a wide range of hospital related treatments
  2. Improve the quality of healthcare
  3. Provide safe and scientific healthcare facility
  4. Improve the patient experience

 In Mediclinic International the management ensures a proper and sustainable culture. The management aims to deliver the best quality healthcare to the patients and work on improving relationships among the hospital and the service users (Lovelock and Patterson 2015). The organization was established in 1983 and slowly grew into a large scale health service provider with operations in three different countries.

The strategic drift of the organization has been notable as they have shifted their focus to more customer oriented rather being profit oriented.

  1. Value- The resources of the hospital includes the special and innovative services that are hard to match by any other hospitals.
  2. Rareness- If the services of the organizations are available to all the organizations then the hospital will fail to achieve any competitive success in the business (Lee and Kotler 2015).
  3. Imitability- The premium services cannot be easily obtained by other hospitals
  4. Non Substitute- The premium services of the hospital cannot be matched by any other services.

The implementation of the Mckinsey 7’s framework will help the organization to;

  1. Improve the performance of the company
  2. Determination of using the best strategy for implementation
  3. Align the departments and the different processes during a merger or acquisition
  4. The examination of the likely effects of future changes within the company. 

The management of the company has announced its success in its South Africa unit, whereas it still suffers from the challenging Middle East unit. The company has entered into an agreement with Al Noor Company to establish the biggest private health care facility in UAE. But unfortunately the move failed as because the number of patients availing the services as well as the operating performance of the Company has been way below expectations.

The absence of a proper and effective planning has led the company to such a crisis in the Middle East. Given the sheer size of the hospital and the service providing facilities the company must charter out a policy to attain profits in the country (McCreaddie et al. 2017).                                  

The 5W’s of communication are namely;

  1. Who-The management is fully responsible for such a debacle. The Company should have conducted a proper marketing research before entering the West Asian Market. The government rules and regulations for private companies had also been overlooked by the management which led the company to a crisis situation in Abu Dhabi.
  2. What-As mentioned earlier the company suffers from low turnout as well as a poor operating performance.
  3. When –The debacle started in the year 2015 when the mentioned health provider entered into an agreement with a local company titled Al Noor.
  4. Where-The debacle occurred in Abu Dhabi, a west Asian city in the country UAE.
  5. Why- The main reasons for such a problem are the schemes of the UAE government to provide different types of facilities like free treatment and 20% discounts on first health related treatments.
  6. How-The challenging environment in Abu Dhabi is because of the weaker second half performance of the company which saw a steep decline in the number of patients visiting the organization and also the lack of proper performance by the management of the Organization.

Market Penetration

Market Development

· The health service provider has target to achieve more with their existing services by increasing its market share

· The mentioned organization has plans to expand its business in different sectors of health with the already existing services

Product Development


· The hospital can develop the existing products or innovate new products and services to have a competitive advantage over their rivals

· The most important element is to diversify the products and services of the Company from the others in the market

  1. Cost Leadership Strategy- Cost leadership strategies of the mentioned hospital will involve increasing the profits by reducing the cost of products and services and also increasing the market share by different strategies (Peters Blohm and Leimeister2015).
  2. Differentiation Strategy- The success of thedifferentiation strategy will involve a proper research, development and innovation. It also depends on the capability of the organization to provide the best quality products and services.
  3. Focus Strategy- It is essential for the organization to stay focused and concentrate on the strategies adapted by them to gain success in the modern world.

Organic growth can be achieved by following some simple steps like;

  1. Patience and Diligence-The management must have the necessary patience and diligence to achieve organic growth (Ranchod Childs Abraham and Taylor 2016). The executive leaders must need to focus on the goals of the business rather than assuming it to be automatically happening during budget and strategic planning.
  2. Selection of the proper team- The Company must recruit talented as well as reliable and consistent team members to help in the steady growth of the organization.

  The company must diversify itself through its products and services as such a diversification will help them achieve the growth targets. It also helps to provide the service seekers with better quality services and help them have a stronghold in the market.

 The management of the company must consider of possible mergers and acquisitions of both large and small scale business that provides similar services to have a competitive advantage in the markets and achieve better profit shares (Sovbetov 2016).

The above frameworks have a number of ways that can be adapted to select the growth strategy for the mentioned private hospital (Winston and Weinstein 2016). Diversification and innovation of new products and services can lead them to success.

The best way forward is to diversify the varied range of products as well as services of the hospital and also by merging or acquiring companies to stay sustainable in nature.


Ginter, P.M., Duncan, J. and Swayne, L.E., 2018. The Strategic Management of Healthcare Organizations. John Wiley & Sons.

Gupta, A., Calfas, K.J., Marshall, S.J., Robinson, T.N., Rock, C.L., Huang, J.S., Epstein-Corbin, M., Servetas, C., Donohue, M.C., Norman, G.J. and Raab, F., 2015. Clinical trial management of participant recruitment, enrollment, engagement, and retention in the SMART study using a Marketing and Information Technology (MARKIT) model. Contemporary clinical trials, 42, pp.185-195.

Hardyman, W., Daunt, K.L. and Kitchener, M., 2015. Value co-creation through patient engagement in health care: a micro-level approach and research agenda. Public Management Review, 17(1), pp.90-107.

Kotler, P., 2015. Framework for marketing management. Pearson Education India.

Lee, N.R. and Kotler, P., 2015. Social marketing: Changing behaviors for good. Sage Publications.

Lovelock, C. and Patterson, P., 2015. Services marketing. Pearson Australia.

McCreaddie, M., Kuzemski, D., Griffiths, J., Sojka, E.M., Fielding, M., Al Yateem, N. and Williams, J.J., 2017. Developing nursing research in the United Arab Emirates: a narrative review. International nursing review. (2018). About Us. [online] Available at: [Accessed 26 Mar. 2018].

Peters, C., Blohm, I. and Leimeister, J.M., 2015. Anatomy of successful business models for complex services: Insights from the telemedicine field. Journal of Management Information Systems, 32(3), pp.75-104.

Ranchod, S., Childs, B., Abraham, M. and Taylor, R., 2016. International benchmarking of hospital utilisation: how does the South African private sector compare?. South African Actuarial Journal, 16(1), pp.69-90.

Sovbetov, Y., 2016. Macroeconomic Factors Influencing Cross-border M&As: A Negative Binomial Approach.

Winston, W. and Weinstein, A., 2016. Defining your market: winning strategies for high-tech, industrial, and service firms. Routledge.

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