• Asmaa Abdelbaset Mahmoud 20121001

• Doaa Hussien Mohamed 19122137

• Hend Hassan Al-sherif 20122055

• Marwa Khaled Mohsen 20122075

Presented to you by : • Rabab Samir Abd el-fatah 20121051

• Rehab Ahmed Mustafa 20121037

• Industry brief :
Healthcare industry (also called health economy) consists of sectors/businesses
that provide goods/service to treat patient, manufacture medical equipment/
drugs, and provide medical insurance.

• Hospital description :
Our institution was established in 2020, located at down town
It is a governmental healthcare facility , built, staffed, and equipped for
the diagnosis of disease; for the treatment, both medical and surgical, of the
sick and the injured; and for their housing during this process.
To better serve the wide-ranging needs of the community, the modern
hospital has often developed outpatient facilities, as well as emergency,
intensive care, and rehabilitation services.
And its role has been magnified by the appearance of COVID pandemic.
• Strategic management :

a set of managerial decisions and actions that determines the long-run performance of
a corporation
• Environmental Scanning
the monitoring, evaluation and dissemination of information from the
external and internal environments to key people within the corporation

• External scanning

Political factors

1. The political environment is perhaps among the least predictable elements in

the business environment. A cyclical political environment develops; as
democratic governments have to pursue re-election every few years. This
external element of business includes the effects of pressure groups. Pressure
groups tend to change government policies.
• External scanning

Political factors

2. Political stability:
• There is increasing political will in Egypt to develop the healthcare sector
• In July 2018, the World Bank announced plans to invest EGP9.5bn (USD530mn)
towards Egypt's healthcare system as part of the country's health reform
package. The investment will be staggered over the coming five years to 2022
and will be implemented via the Egyptian Ministry of Health and Population
(MOHP)
• External scanning

Political factors

3. Taxation, Egypt personal income tax rate forecast

It has been stable at 25% for the last two years (2020,2021)
is projected to trend around 22.5% in 2022 and 2023 according to our econometric
models (TRADEECONOMICS.COM/Egypt tax authority)
• External scanning

Economic factors
 Although The health expenditure as an absolute number is increasing, total
health expenditure as a percentage of GDP is declining. The Egyptian healthcare
market is based mainly on OOP expenditures and the next period anticipates a
shift toward more public spending after Universal Health Insurance gets
implemented.
 Level of current health expenditure expressed as a percentage of GDP. Estimates
of current health expenditures include healthcare goods and services consumed
during each year. This indicator does not include capital health expenditures such
as buildings, machinery, IT and
• External scanning

Economic factors
 The Egyptian finance minister stressed that in March 2020, following the
outbreak of the coronavirus crisis, EGP 100 billion – or two per cent of GDP –
were allocated to alleviate the repercussions of the pandemic, some EGP 16.5
billion of which were dedicated to the healthcare sector.
 The rest were directed to mitigate the effects of the pandemic on the most
affected sectors and the most vulnerable groups.
 In 2021/22 the budget stood at EGP 275.6 billion, up by EGP 17.1 billion or 1.4
percent on the year before. The increase recorded was higher than that stated in
the constitution, and in 2020/21 the healthcare sector’s budget increased by 24.3
percent on 2019/20.
 Investments in the Egyptian healthcare sector recorded EGP 26.4 billion, or 24.3
percent of the total spent on the sector
• External scanning

Economic factors
 Egypt inflation rate
• External scanning

Economic factors
 Health workforce in Egypt, WHO
• External scanning

Economic factors
 Health workforce in Egypt, WHO
out-migration of health professionals is contributing to the
shortage of a qualified health workforce

Russian-Aukranian war
The emergence of monkey pox pandemic
• External scanning

Socio-cultural factors
 Changes in demographic patterns like aging population, migration trends and socio-
economic variables have paramount importance on healthcare sector .
 The current life expectancy for Egypt in 2022
is 72.38 years, a 0.22% increase from 2021.
(increasing average life expectancy, increases the
need for extra health care)
 population distribution among Egypt, Cairo is the highest
in population ,
• External scanning

Socio-cultural factors

 There have been some improvements in aggregate health indictors over the past
few decades. However, they mask striking inequalities among Egyptians by
gender, income
 level, education and geographic location. For instance, child mortality is twice as high in
rural upper Egypt
 Efforts have been made to reform the situation in Egypt. The most prominent voices in
the fight to overhaul the health system have been medical doctors, who have coupled
their professional demands for better wages, working conditions and training
opportunities with social and political demands to improve the health-care system and
increase public spending on health. Among various other efforts, doctors staged two long
strikes, in 2012 and 2014
 Lower poverty rate in cairo
• External scanning

Socio-cultural factors

 Increased number of multiple sclerosis patients in Egypt

 Number of people with MS : 59,671 people are living with
MS.
 This equates to 1 in every 1,500 people.
 9,244 new people are diagnosed each year.
 That's 770 diagnosed every month.
 https://www.atlasofms.org/fact-sheet/egypt
• External scanning

Technological factors
 With a population of reportedly 100 million, Egypt is making several key investments in the area of health
technology to reduce costs and provide efficient care to its people. COVID-19 has further accelerated digital
transformation in the country with the increased use of remote monitoring, telehealth platforms and
Artificial Intelligence (AI)-enabled apps and devices.

 The country has also developed a national AI strategy to integrate the technology in different sectors
including healthcare.

 The Egyptian government is driving digitalization across sectors and has been pushing for universal
healthcare and cross-industry collaborations. This is evidenced in the recent partnership announced
with British telecom operator Vodafone. According to reports, with the backing of the UK Department for
International Trade, Vodafone won a £100m contract to help Egypt develop a new health insurance IT
system on the lines of UK’s National Health Service (NHS).
• External scanning

Technological factors
 An app that has been making healthcare accessible for all in Egypt is Vezeeta. Its founder/CEO
Amir Barsoum’s aim is to empower consumers to make more informed healthcare decisions.
The app allows users to book online appointments, teleconsultations, doctors’ home visits and
can also be used for online ordering and delivery of medications.

 Health 2.0 Egypt (network of Egyptian digital health leaders run and build a digital health
ecosystem in the country) is a network whose purpose is to connect digital health stakeholders
with both the local and global innovation community. The knowledge sharing and support that
has been generated from its activities have created jobs, helped start-ups find clients and
investors, and provided the digital health work in Egypt global exposure.
• External scanning

Technological factors
 An app that has been making healthcare accessible for all in Egypt is Vezeeta. Its founder/CEO
Amir Barsoum’s aim is to empower consumers to make more informed healthcare decisions.
The app allows users to book online appointments, teleconsultations, doctors’ home visits and
can also be used for online ordering and delivery of medications.

 Health 2.0 Egypt (network of Egyptian digital health leaders run and build a digital health
ecosystem in the country) is a network whose purpose is to connect digital health stakeholders
with both the local and global innovation community. The knowledge sharing and support that
has been generated from its activities have created jobs, helped start-ups find clients and
investors, and provided the digital health work in Egypt global exposure.
• External scanning

Ecological factors
 Air Pollution The greater Cairo area, home to 15 million people, has the worst air pollution in
Egypt
 Egypt’s rising level of energy consumption is a major factor behind the country’s air pollution
problems. Over the last 20 years, Egyptian energy consumption has risen by more than 200%,
 Renewable Energy Sources Aside from hydroelectricity, Egypt is boosting its use of renewable
energies such as solar and wind power.
 Water scarcity

legal factors
 The universal health insurance law, the law aims to make available and
provide high quality healthcare for all citizens without discrimination,
regardless of their ability to pay, relying on a strong, effective financing
mechanism that pools risk and is supported by premiums paid by citizens based
on their income, in order to provide care and treatment for all
Porter five forces
Competitive rivalry within the industry

 The intensity of rivalry of Care Hospital is influenced by the following

characteristics:
 A large number of hospitals (New Cairo hospital, Shifa Hospital, Nasaam
Hospital) increases rivalry because more hospitals will compete for the
same customers and resources. The rivalry intensifies as some hospitals
have the same or near market share, leading to struggle for market
leadership.
 Slow market growth: causes hospital to fight for market share.
 High fixed costs: result in an economy of scale effect that increases rivalry.
As total costs are mostly fixed costs, the hospital must produce near
capacity to attain the lowest unit costs.
 As the hospital is a multi-specialized one, this is associated with high levels
of competition.
 The diversity of rivals: with different cultures, histories, and philosophies
make the healthcare industry unstable, where there’s misjudging of rivals’
moves.
 Keep in mind the managed care contracts that are negotiated, managed
care organizations contract with hospitals offering most favorable rates.
Porter five forces
 Threats of rivals can be reduced by employing a variety of tactics. To
minimize price competition, distinguish your product from your
competitors’ by innovating or improving features. Other tactics include
focusing on a unique segment of the market, distributing your product in a
novel channel, or trying to form stronger relationships and build customer
loyality.

threats of new entrants

 t’s not only incumbent rivals that pose a threat to the hospital; the possibility that new
hospitals may enter the healthcare industry also affects competition. For every entry, there
are barriers. From a strategic perspective, barriers can be created or exploited to enhance
the any firm’s competitive advantage. This is different in healthcare industry as there are
other factors concerning new hospitals:
 - Common technology.
 - Hospitals are capital intensive.
 - Government regulations on new hospital construction.
 - Brand identity is not easy for new hospitals.
 - Start-up costs are high for new businesses entering the industry. The more commitment
needed in advertising, research and development, and capital assets, the lesser the chance of
new entrants to the industry.
Porter five forces
threats of new entrants
 Reducing the Threat of New Entrants:
Enhancing your marketing/brand image, utilizing patents, and creating alliances
with associated products/services can minimize the threat of new entrants.
Important tactics you can follow include demonstrating your ability and desire to
retaliate to potential entrants and setting a product/service price that deters
entry.
Because competitors may enter the industry if there are excess profits, setting a
price that earns positive but not excessive profits could lessen the threat of new
entry in your industry.

threats of substitute
It’s more difficult for a firm to try to raise prices and make greater profits if there are close
substitutes and switching costs are low.
Substitutes, or alternative health services, include:
- Not for Profit hospitals: Medium to High threat depending on hospital location
- Day Care hospitals: Medium threat depending upon type of service and location
- Technology as a Substitute to private hospital care (e.g. e-health): Low threat
- Outpatient diagnostic facilities (ODF)

You can reduce the threat of substitutes by using tactics such as staying closely in tune with
customer preferences and differentiating your services, customers’ surveys to learn about their
preferences.
Porter five forces
bargaining power of supplies
 Any business requires inputs—labor, parts, raw materials, and services. The cost of your inputs
can have a significant effect on your company’s profitability. Whether the strength of suppliers
represents a weak or a strong force hinges on the amount of bargaining power they can exert and,
ultimately, on how they can influence the terms and conditions of transactions in their favor.
Suppliers would prefer to sell to you at the highest price possible or provide you with no more
services than necessary. If the force is weak, then you may be able to negotiate a favorable
business deal for yourself. Conversely, if the force is strong, then you are in a weak position and
may have to pay a higher price or accept a lower level of quality or service.
Examples:
 Demand for nurses is high, supply is low
 Price rising for drugs and other medical supplies and medical equipment.
 Increased demand for personal protective equipment by the emerge of corona pandemic

 Reduce power of suppliers: We might consider forming a partnership with our supplier. This can
result in a more even distribution of power. This can be mutually beneficial for both supplier and
buyer if they can:
 Reduce inventory costs by providing just-in-time deliveries
 Enhance the value of goods and services supplied by making effective use of information abou
customer needs and preferences
 Speed the adoption of new technologies.
 Increase dependency
Porter five forces
bargaining power of buyers
 The power of buyers describes the effect that your customers have on the
profitability of your business. Many small customers acting as a group can
create a strong force. For instance, because of their size, health maintenance
organizations (HMOs) can purchase health care from hospitals and doctors
at much lower cost than can individual patients. Insurers wield substantial
power.
 Individual patients wise; the role of patients in isolation to other influencing
factors, it can be said that their ability to impact on industry players in a
negative or damaging way to shareholder interests or assets and returns is
low. Hence this element is favorable to industry members.
 Ex, patients requiring higher service quality.
 Reducing the Bargaining Power of Buyers
 You can reduce the bargaining power of your customers by increasing their
loyalty to your business through partnerships, dealing directly with
consumers/patients, or increasing the inherent- - or perceived value of a
product by adding features or branding. In addition, if you can select the
customers who have little knowledge of the market and have less power,
you can enhance your profitability.
• After finishing the external analysis, now we can
extract the opportunities and threats that facing our
hospital
Key success factors in healthcare industry

Key success factors Weight Care hospital Care hospital El Shifaa El Shifaa
rating weighted hospital hospital
score rating weighted
score

Location 0.1 5 0.5 4 0.4

Service quality 0.2 3 0.6 5 1

Infrastructure 0.2 5 1 5 1

Surgical operations 0.2 3.5 0.7 5 1

Patient satisfaction 0.2 3 1.5 4 0.8

HR capability 0.1 3 0.3 5 0.5

Total 1 4.6 4.7

 External Factor Analysis Summary (EFAS Table)
External factors Weight Rate Weighted
score
Opportunities
Improve the health care system and increase public spending on health 0,1 4 0.4

Increased population in Cairo 0,03 3 0.09

Increased number of M.S patients 0,08 5 0.4

Patients requiring higher service quality 0,04 4 0.16

Increase life expectancy for Egypt up to 75 years by 2023 0,02 2 0.04

Change in demographic pattern like aging population, migration trends, and 0,03 3 0.09
socioeconomic variable

Universal health insurance law 0,06 4 0.24

Vezeeta App 0,05 4 0.2

Threats
Limited resources 0,08 4 0.32

Possibility of Change in governance due to the ministerial change 0,06 3 0.18

Migration of health professionals 0,06 4 0.24

Demand for nurses is high, supply is low 0,07 4 0.28

Rising of energy consumption 0,03 3 0.09

Increased demand for personal protective equipment 0,07 4 0.28

National strategy to integrate technology in H.C 0,06 3 0.18

A large number of hospitals in Cairo 0,07 5 0.35

Increased air pollution in Cairo 0,02 2 0.04

The emergence of monkey pox pandemic 0,03 5 0.15

Water scarcity 0,02 2 0.04

Russian-Aukranian war 0,02 3 0.06

Total 1 3.83
• Internal scanning

Organizational structure, Functional structure

Hospital
manager

Medical Infection
Pharmacy dep. IT dep. Nursing director HR Training dep. Quality dep.
director control

Internal External
clinical outpatient
services services

general blood
MS ICU lab. E.R
surgery banks
• Internal scanning

Organizational structure, Functional structure

Hospital
manager

Medical Infection
Pharmacy dep. IT dep. Nursing director HR Training dep. Quality dep.
director control

Internal External
clinical outpatient
services services

general blood
MS ICU lab. E.R
surgery banks
• Hospital business model canvas
• Value chain analysis :

• Resources, capacity analysis of hospital based resources

Tangible resources and capabilities

Building 5 floors Well used
Financial situation Government Ability to generate internal funds
subsidizing
Hospital departments Most • Opening of new department for
specialties are burns with intensive care unit
available • Offering service for (multiple
sclerosis patients MS) diagnosis and
treatment

Number of physicians 250 Enough number , except in managerial

department
Number of nurses 270 Lacked number of nurses
Number of pharmacists 80 Working in pharmacies and in other
managerial roles
Lab and radiology technicians 20 Enough number of employees and well
Number of admission employees including 50 distributed among
departments/admission system
HR
Number of beds 110 Used at full capacity
ICU beds 30
Lab Machines /Mechanical ventilators Not very well equipped
Number of specialties 8
• Value chain analysis :

• Resources, capacity analysis of hospital based resources

Intangible resources and capabilities

Human skills • Not well performing in all departments due to the lack of
qualifications

Reputation / position • good reputation especially in the field of surgery especially

bone surgery
• The hospital has a very good location and good infrastructure
• And the only in the area providing service to MS patients

Innovation • No supportive atmosphere for new ideas

• No capacity for organizational change
• Hospital culture and value
• Quality We strive to exceed the expectations of all of our clients by
committing to deliver excellence and value in every aspect of our
work. We will enhance quality for all of our patients by educating
them on their health and empowering them to be partners in their
care.
• Compassion Our culture of caring will unmistakable in every
personal interaction: as we treat individuals, families and
colleagues with empathy, honesty and openness.
• Respect We promise to honor the dignity, individuality and rights of
everyone at Care Hospital, and to pay particular attention to
patients’ rights to privacy, confidentiality and information.
• Civil Engagement We acknowledge our vital and dynamic role in
our communities therefore we will foster growth and development
in a manner that understands and serves our society.
• Continuous improvement
• No Smoking
• Effective Communications
• Ensuring availability of treatment
• Compliance with Laws and medical policies
 After finishing the internal analysis, now we can extract the strengths and
weaknesses that is inside our hospital Internal Factor Analysis Summary (IFAS Table)
Internal factors Weight Rate Weighted
score
Strengths Weakness Strengths
Support from government 0,1 3 0.3
 Support from government  Unqualified HR staff
 Ease of access  Low lab support Ease of access 0.03 3 0.09
 Cost advantage  The lab is not well equipped Cost advantage 0.08 3 0.24
 M.S outpatient service  Absence of marketing plan
 Qualified medical staff  Lagging in technology M.S outpatient service 0.04 5 0.20
 Central location  Lacked number of nurses
Qualified medical staff 0.08 4 0.08
 Good Infrastructure  Wasting of resources in some departments
 Most medical specialties are available  Inability to attract new patients Central location 0.03 4 0.12
 Unique values  Lack of staff development
 Wide parking area  Lack of maintenance Good Infrastructure 0.06 3 0.18
 No disaster management training
Most medical specialties are available 0.05 3 0.15
 Low satisfaction score on employee survey
Wide parking area 0.02 3 0.24

Weaknesses
Unqualified HR staff 0.06 4 0.24

Low lab support 0.06 3 0.15

The lab is not well equipped 0.05 3 0.18

Absence of marketing plan 0.03 4 0.12

Lagging in technology 0.07 3 0.21

Lacked number of nurses 0.06 4 0.24

Wasting of resources in some departments 0.06 3 0.18

Inability to attract new patients 0.02 4 0.08

Lack of staff development 0.03 3 0.09

Lack of maintenance 0.02 4 0.08

No disaster management training 0.03 3 0.06

Low satisfaction score on employee survey 0.02 4 0.12

 Summary Factor Analysis (SFAS)

Weight Rate Weighted Duration

score
Opportunities
Improve the health care system and increase public 0.08 4 0.23 Medium
spending on health
Increased number of M.S patients 0.08 5 0.40 Short

Universal health insurance law 0.08 4 0.32 Medium

Threats
Limited resources 0.08 4 0.32 Short

Demand for nurses is high, supply is low 0.07 4 0.28 Medium

Internal Strengths Weakness
• Support from government • Unqualified HR staff
Migration of health professionals 0.07 4 0.28 Medium • Cost advantage • Lacked number of
External
• Qualified medical staff nurses
A large number of hospitals in Cairo 0.07 5 0.35 Short • Good Infrastructure • Wasting of resources in
some departments
Strengths • Low lab support
Support from government 0.03 3 0.09 Medium

Cost advantage 0.02 3 0.06 Short Opportuniti SO Strategies WO Strategies

 Expand M.S services  Use the government
Qualified medical staff 0.08 4 0.32 Short
es  Prepare for GAHAR and public spending
• Improve the health
accreditation on attracting new
Good Infrastructure 0.07 3 0.21 Short care system and
increase public
 Implement marketing plan to nurses
Weaknesses spending on health Attract new patients  Implement waste
• Increased number of  New outpatient services management
Unqualified HR staff 0.08 4 0.32 Medium M.S patients  Plan to be a part of UHC department
• Universal health system  Training program for
Lacked number of nurses 0.08 4 0.32 Short insurance law HR personnel
Wasting of resources in some departments 0.07 3 0.21 Short  Assign new HR
manager
Low lab support 0.04 3 0.12 Medium

Total 1 3.92
Threats ST Strategies WT Strategies
• Limited resources  Use the support of government  Offer flexible time
• Demand for nurses is in acquiring more resources schedules for nurses
high, supply is low  Use the location and  Hospital lab
• Migration of health infrastructure of the hospital as partnering with a
professionals a marketing material commercial lab
• A large number of
hospitals in Cairo
• Corporate strategy:

an organizational strategy that determines what businesses a

company is in or wants to be in, and what it wants to do with
those businesses

The new corporate strategy growth strategy

expansion into new markets (multiple sclerosis patients)

Renewal strategy a corporate strategy designed to

address declining performance. (the hospital lab)

• Business strategy:

Differentiation Offering services to M.S patients (medical,

psychological, nutritional support) which not offered by other
hospitals in the area

Cooperative strategy, gain a competitive advantage within an

industry by working with other firms, strategic alliance
between the hospital lab and a commercial lab
Vision
Leading the public health sector nationally.

Strength: forward looking

Criticism: Should state more of its future hopes
New vision:
• To continuously be the hospital of choice for patients, physicians and employees due to
our preeminent patient care and services.
To be the leading provider of quality, compassionate patient centered care that seeks physical
cures and comfort – that will lead to a peace of mind and peace at heart

Mission
Working together to promote and protect the health of
our citizens
Strength: States the main goal clearly
Criticism: Should state more of its services

New mission:
our mission is to participate in the creation of healthier lives within the community; by practicing to serve and
manage illnesses with skill and compassion.
We will improve the life of Multiple Sclerosis’ patients by empowering them through offering the best support
physically and psychologically.
Objectives
 Obtain GAHAR accreditation by the end of 2024
 Open 2 clinics for multiple sclerosis patients (nutrition and psychological clinics) by April 2023
 Enhance education and training systems to prepare health professionals and support the career
development of all health personnel, by implementing a new training system targeting all medical staff
to increase the percentage of training from 40% to 80% by the end of 2023
 Enhance communication between the medical teams inside the hospital by implementing a new
communication system
 Increase our market share by 30% by the end of 2024.
 Hospital lab partnering with a commercial lab by May 2023.
 Improve hospital maintenance system by contracting with new maintenance company in October
2022
 Attracting qualified medical practitioners working in the field of multiple sclerosis
 Open (resource management) department in dec.2022, to be responsible for resources allocation.
 Improve MS patients’ hospital stay by offering some options, (ensure the presence of TVs in the
rooms, offer healthy drinks and foods)
Strategy implementation- the sum total of all activities and choices
required for the execution of a strategic plan

Care hospital strategic action plan

Care hospital strategic action plan
Cultural transformation framework

Power

Interest
Strategy Evaluation and Control

Ensure that the hospital is achieving what it set out to accomplish by comparing performance
with desired results and taking corrective actions as needed

Balance score cards

Balance score cards

On track
At risk
Behind