MHC: How to Maximize the Effectiveness of the Strategy

MHC
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1 Describe MHC’s strategy in terms of market position. Also, identify the type of external
environment MHC is operating in and the degree to which the strategy matches the environment.
MHC is readying itself to be the market leader when it comes to the production and sale of healthcare systems as well as operations. Its game plan is simple; to use the latest technological innovations to produce products which it will sell to its competitors at a profit, before the market gets saturated, even, and the competition balances off (Blanchard & Thacker, 2013).The working environment of MHC is one where there is a greater need to cut down on expenses, so as to realize the margins. This is further aided by government legislations as well as insurance interference, which has forced them to go back to the drawing board, to come up with a process that will ensure lower operating costs, for a higher profit margin. The strategy that MHC uses therefore, matches the market environment in which it operates, and to some extent aids in its sales growth.
2. Identify the type of structure MHC currently uses in its primary businesses. Describe the fit between the structure and the competitive strategy. Describe any structural adjustments MHC should make to maximize the effectiveness of the strategy.
The firm has embraced a divisional form of structure in its framework. This form of structure is more like a square object fitting in a circular hole, since they do not match. It increases the vulnerability of the business, since the personnel or entity responsible for the innovation techniques might be located further away from the business. As a result, the firm risks running a profit on one hand, and incurring losses on the other end. The company has taken up a traditional, capitalistic style employed by most other organization, which tend to be so much profit-oriented. The best solution to such a challenge is for the company to embrace a cohesive approach, where the most effective, innovative and creative core of the employees, are placed strategically within reach, and are well coordinated to e...