Hcm640 Unit 3 Ip

Portfolio Analysis

De Anna Lyon

American InterContinental University

HCM640- Healthcare Strategies

May 19, 2013

Portfolio Analysis

A healthcare organization can analyze the strengths and weaknesses of their organization in many different ways. One of these is a portfolio analysis. A portfolio analysis can be completed on any facility no matter of the size of the organization. A portfolio analysis is one of the most common methods used today to evaluate and differentiate between the numerous strategies an organization may have (AIU Online, 2013). A matrix approach is used in a portfolio analysis. The primary objective of this analysis is to examine the products and services offered by the healthcare organization in regards to their relative market share and the market growth rate.

When completing a portfolio analysis, it is important to identify the organizations biggest competitor as well as other competitors in their current market. The market share held by the largest competitor is then compared to that of the other competitors. The same is done with the market growth rate. This information can be compiled in different fashions. Each department can be analyzed individually or the organization can be analyzed as a whole (AIU Online, 2013). This information is positioned into a quadrant table. The four quadrants each have their own characteristics.

Quadrant 1 is considered to be the “Stars”. This is the upper left quadrant. This is where competitors or departments with a high relative market share and a high market growth rate are placed. These products and services show the highest potential in long-term growth and success. Quadrant 2 contains the “cash cows”. It is located in the lower left of the matrix. These products and services shoe a low market growth rate but have a high relative market share potential. Most of these products or services have reached their maturity level or are close to the end of their product life cycle. Most...