Strategic management process and performance of M.P. Shah hospital in Kenya

Abstract

The main purpose of the study was to determine the extent at which strategic management process has been used by M.P Shah Hospital and how the use of strategic management process has influenced the performance of M.P. Shah Hospital. This study was a case study since the main purpose of the study was to establish the strategic management process used by the M.P.Shah hospital to enhance performance for competitive advantage in Kenyan health sector. Primary data was collected using interview guides, where the researcher booked an appointment with each manager upon where interviews on strategic management process was conducted using an interview guide. The study was target 6 managers from different departments. The researcher used content analysis to analyze the data through describing phenomena, classifying it and seeing how the concepts interconnect as was indicated by the respondents. From the findings of the study, it is evident that M.P. Shah The managers at M.P. Shah Hospital share a clear vision and mission with the hospital vision and mission statement; the major changes from external environment that impacted on MP Shah Hospital Nairobi included changes in technology, social, political and economic factors; strategy is concerned with matching a firm‟s resources and capabilities to the opportunities that arise in the external environment. The value and rareness of the resource capability combinations a firm exploits play no role in determining its performance; decisions and competitive moves that the organization had pursued in the recent past to optimize successful performance; strategic management entails both strategic planning and implementation, and is the process of identifying and executing the organization‟s strategic plan, by matching the company‟s capabilities with the demands of its environment and relevant strategic plan is the output that comes through the strategic management process and discipline that involves a team approach encompassing all functional areas within affirm is to their organization. The health industry is operating in an ever changing and increasingly competitive business environment and hence apart from the strategies MP Shah Hospital Nairobi has employed, the players in the industry should also consider the following strategic management processes that have an effect on performance of the organization; crafting and implementing strategy should be core to the organization and include all functional areas within the business; strategy management process should include a clear set of long-term goals of the organization and the objectives clearly stated at the end of planned activity; they state what is to be accomplished by when and should be quantified if possible. The achievement of corporate objectives should result in fulfillment of the corporation‟s mission. . From the results of the study it is clear that MP Shah is an open system that interacts with its environment. It is dependent on the external environment for its inputs and outputs. The external environment poses both opportunities and threats forcing the management to come up with strategic responses aimed at responding to those external factors. From the findings, it is apparent that MP Shah Hospital has been responding to the challenges posed by changing environment by undertaking various measures in order to remain competitive in the market: for instance by paying great attention to the needs of the customer, restructuring, introducing new products in the market and constantly updating with technological developments. It also validates the fact that environmental change is inevitable and organizations which will not effectively cope with this change will experience limited survival. The study concludes that strategic performance process should be judged by the organization‟s performance.