St. Luke’s 2010:
St. Luke’s 2010 Admissions 17,802 17,004 Observation Patients 2,246 2,287 Average Length of Stay (days) 4.6 4.4 Average Daily Census 224 206 Surgeries 17,512 17,305 Births 2,063 2,049 Outpatient Registrations 186,037 191,067 Emergency Department visits 31,020 30,162 Urgent Care Center visits 82,903 82,252 Surrey Place 124 120 St. Luke’s gain from operations for the fiscal year that ended June 30, 2010, was $16,108,000, representing an operating margin of 3.9 percent. Based on the hospital activity shown to the right, total operating revenue grew to $414 million, a 3.1 percent increase over the prior fiscal year. St. Luke’s spends approximately 55 percent of each dollar collected on salaries and benefits for its healthcare workers.
What is Strategy:
What is Strategy A plan for interacting with the competitive environment to achieve organizational goals My proposal is for St. Luke’s to develop a strategy in regards to expanding their practice in other countries.
Motivation for Global Expansion:
Motivation for Global Expansion Building a global presence expands an organization’s scale of operations Having a presence in multiple countries provides marketing power St. Luke’s will be able to develop a broader knowledge of culture, social, economic, and other factors
The Solution:
The Solution Daft (2010 p. 214-215) discusses the 4 Stages of International Development: Domestic Stage: the company is domestically oriented (St. Luke’s is well developed in United States) International Stage: St. Luke’s will have to take exports seriously and being to think multi-domestically (multi-domestically means competitive issues in each country are independent of other countries) Multinational Stage: St. Luke’s will develop an extensive experience in a number of international market and has established marketing, manufacturing, or research and development Global Stage: St. Luke’s will interlinked subsidiaries that will pose a huge threat to other companies in regards to competition
Going International:
Going International
The Idea…:
The Idea… Succeeding on a global scale is not easy, however, we will tackle the three aspects of the global organizational challenge by addressing environmental complexity through greater organizational complexity and differentiation, achieving integration and coordination among the highly differentiated units and implementing mechanisms for the transfer of knowledge and innovation (Daft, 2010 p 230-231). Create transitional (global) teams: these teams are made up of multi-skilled, multi-nationals members whose activities span multiple countries. Eventually we will try and incorporate a create a low-cost leadership style. By going global we want to ensure that we will increase market share while keeping costs low. We want to keep in mind that goods and services have the potential to be inexpensive when we outsource so in turn the services that St. Luke’s would provide to those in other countries would be at a lower price than what we can offer in the United States.