Most recently it is a fact that because of the current trends and practices implemented in the business practice, the application of these well tested management techniques has likewise been adopted in many health care institutes to sustain their own future in the healthcare industry.
Strategic management according to Shortell and Kaluzny (2000) involves both internal and external functions of management where it oversees the formulation, implementation, and monitoring of strategy (p. 398). Furthermore, 10 schools of thought have been conceptualized by Mintzberg (1990) that advances the theory of strategic management, of which only three most relevant ones shall be mentioned in congruence with the central them to be discussed. The first would be prescriptive schools that involve design, planning, and positioning. The second descriptive school of thought entails entrepreneurial, cognitive, learning, political, cultural, environmental, and configurational. It is noteworthy that each set of schools has a different process. The third strategy formulation may be conceptual, formal, analytical, visionary, mental, emergent, power, ideological, passive, or episodic (Shortell & Kaluzny, 2000, p. 399). The rising cost of health care coupled with technological advances purports the idea of a managed in the American health care system where this program allowed private employers to limit the choices provided to their employees in terms of healthcare coverage and benefits. This managed care system allowed each organization to introspect on upon the need to employ strategies to boost their internal capacities for a quality performance to answer to the increasing competition. Likewise to resort to merger in response to current trends and issues such as the shortage of health care providers and most importantly the constant demand to improve the quality of service amidst the increasing cost. Al these aspects necessitated the employment of strategic management techniques, through developed quality scale to assess the implications of quality-based performance. Successful health care organizations develop a strategic quality orientation from the management level all the way down to its subordinate. It support the pursuit of quality at the contact level of which have already been a client at one point in time, as well as monitor external customers' perceptions of quality of service provision.
The use of SWOT, otherwise known as the identification of Strength, Weakness, Opportunity and Threats are now of common sop (Standard Operating Procedure) in the health care industry whereby both internal and external strengths are identified along with the supposition that should their be a need to booster its strength in response to the weakness and threats identified with out much opportunity from improvement. Using this techniques allow the company to work with in its scale for an effective decision making. When working on the internal capabilities and performance, it is very important that the management strength as well as that of its workers