Organizational growth strategies utilized by St.Mary’s Mission Hospital, Nairobi

Abstract

Organizational growth, which refers to the expansion of the organization in terms of number of clients and also in terms of the level of services offered, can be pursued through a variety of strategies. These strategies can be divided into three types basic types, which are organic development, mergers and acquisitions and strategic alliances. Each strategy is suitable depending on the organizational capabilities, availability of suitable partners and enabling political and cultural conditions. This is a case study on St. Mary’s Mission Hospital whose objective is to determine the organizational growth strategies utilized by this organization. This is a mission hospital run and founded by members of the Catholic Church. The study found that among the organizational growth strategies which may be organic development, mergers and acquisitions and strategic alliances, the organization mainly utilizes organic growth as its growth strategy, with emphasis on revenue, headcount and quality pillars. This relies on the organization building and developing its own capabilities. The study also revealed that the hospital has an informal strategic alliance with The Aga-khan University Hospital. There have been diversification strategies including the initiation of a nursing school, a high school and a hospital farm. Primary data was collected using an interview guide administered to the top three officials at St Mary’s mission Hospital, while secondary data was collected from medical journals and industry analysis reports. The data was analyzed by content analysis. The hospital has grown from a staff population of 50 at commencement ten years ago to over 200 today. In addition there has been growth in the specialized services offered as well as one extra branch at Elementaita. The use of other organizational growth strategies such as mergers and acquisitions would enable faster more cost effective growth of the hospital. These mergers could be formed with smaller institutions located in smaller towns, thus enabling growth of the institution into these other areas. Formal monitoring of competition would also be appropriate and incorporating the necessary changes in the strategic plan appropriate growth of the institution.