Strategic Choice & Evaluation Paper
March 17, 2014
The University of New Mexico Medical Group, Inc. (UNMMG) was created in 2007 under the University Research Park and Economic Development Act in Albuquerque, New Mexico. UNMMG is classified as a not-for-profit corporation. UNMMG currently employs 900 clinical practitioners, represents 152 specialties who are exclusive caregivers to the state’s only academic medical center – University of New Mexico Hospital (UNMH) ("Review Of University Of New Mexico Medical Group, Inc. Operations", 2013). UNMMG is a multi-specialty group practice that operates 11 clinics in addition to ...view middle of the document...
Customer intimacy companies focus on delivering what the customers specifically want and cultivate relationships with their customers. They specialize in satisfying unique needs of the customer ("Three Value Disciplines - Which One Defines Your Company?", 2001-2014). Operational excellence organizations do not provide one to one relationships with their customers and are not primarily service or product innovators. They provide middle of the market products at the best price with the least convenience. Their proposition to customers is low price and hassle free services such that of Wal-Mart. Product leadership companies concentrate on offering products that push performance boundaries. Like Nike and Intel, product leadership companies offer customers the best product period.
There are four generic strategies that strategic businesses utilize to maintain competitive advantages. They are: cost differentiation, leadership, focus strategies and integrated cost leadership-differentiation strategies. The differentiation strategy is utilized by organizations that provide distinctive products and services that are valued by customers. The organizations attract customers because they set themselves apart from their competition. Organizations that utilize the cost leadership strategy compete for customers via price. Cost leadership works well when products and services are standardized so that the organization can sell their services and products at the lowest prices. Wal-Mart is a good example for this type of strategy ("Four Generic Strategies That Strategic Business Units Use", 2014).
The focus strategy has organizations concentrating on particular customers, product line, geographical market, market niche, and etc. The goal of the strategy is to serve a limited group of customers better than the competition who serves a broader range of customers. This type of strategy works well with a small but aggressive organization and helps to make your organization stand out within a specific market sector. Organizations that utilize the integrated cost leadership-differentiation strategy produce products that are less distinctive than differentiators and costs are not as low as the cost leader, but they combine advantages of both approaches ("Four Generic Strategies That Strategic Business Units Use", 2014).
Grand strategies are strategies that shape the course of an organization. They are focused on long-term goals of a business and depending on the organization; strategies that include product development to liquidation have to be considered. There are four strategies of grand strategies, they are: market growth, product development, turnaround, and liquidation.
Market growth is a low-risk strategy compared to other, more encompassing, and strategies. Instead of investing in research and development to create new product offerings, the market-growth strategy focuses on growing the market for a current product or...