Impact of Mission, Vision, & Primary Stakeholders to Overall Success
Tenet Healthcare Corporation has a mission of providing a spectrum of quality, cost-effective health care in totality. The corporation has the ultimate vision of distinguishing itself as a leader in the process of redefining health care delivery (Tenet Healthcare Corporation, 2016). It will want to be recognized as an entity that provides quality and innovative care in each and every community it serves including its people and partners. Tenet Healthcare Corporation’s stakeholders include the patients, partners, and joints venture that include United Surgical Partners International (USPI) and Conifer Health Solution (Tenet Healthcare Corporation, 2016). The effective observance and implementation of its mission and vision lead to positive outcomes that include an increase in profits and brand reputation. On the other hand, the failure to implement the mission and vision in totality leads to the company lagging behind in growth strategy.
Impact of the Five Forces of Competition
The five Porter’s forces of competition are integral to the corporation’s competitive strategy as an industry leader. They include intensity of rivalry among competitors, threats posed by new entrants, product substitutes, power of suppliers, and power of buyers.
Threat posed by new entrants: The threat posed by new entrants is relatively low for a company of its magnitude as it requires large capital investment to enter such an industry and health care services in the lower tier would find it a challenge to compete with the brand (Tenet Healthcare Corporation, 2016).
Intensity of rivalry among competitors: The intensity of rivalry among competitors is high as there are major competing brands that include Kindred Healthcare, Kindred Healthcare, and LifePoint Hospitals Inc. The company has to keep tabs of these companies by employing superior competitive strategies (Datamonitor, 2011).
Product Substitutes: The threat of substitutes is relatively low as the products and services within the industry are definite and require large capital investment. Distinct services and products are what would distinguish one company from the other.
Power of suppliers: The supplier power is moderate in the industry even though goods are available. Key suppliers in the industry are those that provide hospital supplies.
Power of buyers: The power of buyers in the industry is moderate as customers are the patients and, in essence, third party payers. Low bargaining power is present among patients as that opportunity is not usually present(Tenet Healthcare Corporation, 2016).
Tenet Healthcare Corporation SWOT Analysis
Strengths
The strengths of the corporation are found in its wide network of services present in suburban and urban communities. They include over 20,000 licensed beds in over 80 hospitals. It also has a comprehensive portfolio of its services that include acute care services, radiology services, operating and recovery rooms, and respiratory therapy services (MarketLine, 2015).
Weaknesses
Among the weakness of the company is the fact that its indebtedness which is at a high level and could limit its financial flexibility. It stands at over $15.7 billion as of December last year (Tenet Healthcare Corporation, 2016).
Opportunities
The opportunities for the corporation are immense that include acquisitions. One such example is SPi Healthcare that would continue enhancing business growth. At the same time, the favorable demographic growth can only mean well for the corporation that also include the adoption of a universal health care by the government.
Threats
The corporation patent volume level may be reduced due to the competition arising from not-for-profit organizations. At the same time, when the government decides to take over nationalized health care, there will be challenges in the competition that also include stricter regulation. The shortage of qualified personnel is another challenge that might affect the operations of the corporation (MarketLine, 2015).
Strategy Outline
The objective of the strategy outline is to capitalize and minimize on the strengths, weaknesses, opportunities, and threats with the focus directed at the stakeholders, management, and administrative staff.
On the aspect of the corporation’s strength, it should strive to expand its capacity in suburban and urban places while also expanding its services portfolio in the increasing terminal diseases such as cancer(MarketLine, 2015).
For its opportunities, the corporation should strive to engage in more acquisitions and partnership so as to expand its growth strategy. It should capitalize on the demographic growth to expand its facilities, products, and services (Khademazad, 2016)
On the aspect of its weaknesses, the corporation should seek to reduce the high debt that can be financed through an increase in profits arising from the growth of its business opportunities.
The threat of patents is real, and it should strive to give them more convenience and in the process gain hold of its stability. It should also incorporate outsourcing services to take care of the professional’s shortage.
Maximizing Competitiveness and Profitability
Tenet Healthcare Corporation would benefit from engaging in a competitive strategy that will give it the much-needed competitive edge. Some of the strategies would include adapting a differentiation strategy. It would include ventures such medical performance initiative that puts more emphasis on its supply-chain. The strategy includes a payment reform market that will help it link quality data and rich cost, reduce costs of care patients, and a compelling value proposition that is composed of innovation, cost, and quality (Khademazad, 2016). Another strategy that would help the company would be that of acquisition and mergers. The process of acquiring a smaller group of practitioner services would drive up its growth strategy while maximizing on profits. Expanding the scale of United Surgical Partners International and Conifer Health Solutions would also enhance its position in the market.
Communications Plan
A communication plan would be needed and effective in the process of communicating the above-suggested strategies to the stakeholders. The plan would include four key aspects to having an open and clear understanding of the strategies. The first thing would be the strategy that will include the media of communication. The various choices available would be intranet, Email, meetings, or web pages. The second key component would be the purpose where the objectives and goal would be made clear. The purpose will be to inform and clarify. The third key component will be the intended result where it will be made clear on what the various strategies will seek to achieve. The fourth key component will be the role of the team that includes the stakeholders and how they will be affected.
Corporate Governance Mechanisms
The corporate governance mechanisms are the steps that a corporation such as Tenet Healthcare Corporation utilizes to oversee its operations. Some of the mechanisms include internal and external mechanisms. For the internal mechanism, the corporation has the Board of Directors that has the role of overseeing the management of the corporation and ensures that the interests of all the shareholders are served (Tenet Healthcare Corporation, 2016). The Board committees have the responsibility of auditing, compensating, corporate governance and nominating, quality, compliance, and ethics, and executive (Tenet Healthcare Corporation, 2016). The other mechanism is the external mechanism where the political, legislative, and regulatory factors are critical to overseeing the running of the corporation. The disclosure of parties is central this role (Tenet Healthcare Corporation, 2016). The above mechanisms so far can be said to be effective as the corporation is in observance of the requirements despite a few shortcomings that are normal.
Leadership Effectiveness
Tenet Heath Corporation led by Trevor Fetter the Chairman and Chief Executive Officer has been one of the leading players in the industry. Together with his other team in management that also includes senior corporate and business officers and regional market leaders, the corporation had grown in leaps and bounds over the years. The net revenue for the corporation as of 2015 stands at over $25 billion annually with operation in 42 states including the United Kingdom (Tenet Healthcare Corporation, 2016). In fact, the corporation in 2015 moved to 170 from 229 in Fortune 500 (Tenet Healthcare Corporation, 2016). It has also been actively engaged in mergers, acquisitions, and partnerships. That is just indicative of good and competent leadership. However, the company would benefit from a more thorough approach of employing its regional market leaders who have diverse skills, integrity, and accountability to avoid cases of fraud or incompetence as was seen in the early 2000s.
Ethics and Corporate Responsibility
The corporation has an ethics and compliance program where the program has seven major components. They include high-level oversight, written standards and policies, training, auditing and monitoring, open lines of communication, quick response to detected deficiencies, and disciplinary action as warranted. The program is guided by core values that include quality, integrity, transparency, and service (Tenet Healthcare Corporation, 2016). The employees, for example, are supposed to act with fidelity to the law and not indulge in a mandate beyond their certificate and license of practice. A patient may request a favor of switching off their life support from a health practitioner about giving up on their life when a terminal illness takes a toll on them. In such a case, an employee is expected to act on his practice integrity and do what is right. The company also publishes its corporate responsibility report annually. For example in 2014 the company published a comprehensive Corporate Responsibility Report as a way of demonstrating its commitment to the process(Tenet Healthcare Corporation, 2016). It was the fifth year in a row it publishing the report.
- Datamonitor. (2011, Sep 27). Tenet Healthcare Corporation. Datamontor Publication.
- Khademazad, Thora. (2016, Jan). What’s Working. Benefits Magazine. International Foundation of Employee Benefit Plans.
- MarketLine. (2015, Oct 9). Tenet Healthcare Corporation. Markeline Publication.
- Tenet Healthcare Corporation. (2016). Tenet Healthcare Corporation. Web. Retrieved from
