Addis Ababa University

College of Business and Economics

School of Commerce

Department of Accounting and Finance

Assignment on Strategic Management

Prepared by: Bezawit Abrham

ID No.: BEE/1370/09

Sec: E4A1

Submitted to: Instructor Ashenafi Abera

April, 2020

Addis Ababa, Ethiopia

Contents
1. Brief background of the company........................................................................................................3
1.1. Organizational Structure..................................................................................................................4
1.2. Service Offered................................................................................................................................4
2. Mission and Vision of the company....................................................................................................7
2.1. Mission............................................................................................................................................7
2.1.1. Comment.....................................................................................................................................7
2.2. Vision..............................................................................................................................................8
2.2.1. Comment.....................................................................................................................................8
3. SWOT analysis....................................................................................................................................8
3.1. Strength and Weakness....................................................................................................................8
3.1.1. Strength.......................................................................................................................................8
3.1.2. Weakness.....................................................................................................................................9
3.1.3. Questions for internal analysis.....................................................................................................9
3.2. Opportunities and Threats..............................................................................................................10
3.2.1. Opportunities.............................................................................................................................10
3.2.2. Threats.......................................................................................................................................11
3.3. PESTEL analysis...........................................................................................................................11
3.3.1. Political......................................................................................................................................11
3.3.2. Economical................................................................................................................................11
3.3.3. Social.........................................................................................................................................12
3.3.4. Technological............................................................................................................................12
3.3.5. Environmental...........................................................................................................................12
3.3.6. Legal..........................................................................................................................................12
3.3.7. Questions for external analysis..................................................................................................12
4. Strategies Formulated by the Company.............................................................................................14
4.1. Strategies for implementing the plan.............................................................................................14
5. Implementation Issues.......................................................................................................................14
6. Challenges.........................................................................................................................................16
7. Conclusion.........................................................................................................................................16
8. Recommendation...............................................................................................................................17
References.................................................................................................................................................18
 1. Brief background of the company
Ananias Mothers and Children Specialized Medical Center was established in May 1992, at Addis
Ababa, Arada Sub-city under the name '‘Ananias Mothers’ and Children's Specialty Clinic’’ in its
former name as a family business. The first medical director was Dr. Isayias Muletta, a specialist in
obstetrics and gynecology. It is to be noted from the story that the years spent in achieving the purpose
and mission it was established, there were many struggles and sacrifices. Despite the struggle, it built a
5 floors building, for medical services and re-launched his service as a center of obstetrics and
gynecology, and children under the name "Ananias Mothers and Children Specialized Medical
Center". The reason for the designation called Ananias is driven from the name of the youngest child
in the owners’ family. This is not only did its existence, but its management and staff made it a pillar
and pole for its work, encouraging it to excel at every moment. In particular, the legacy and success of
the company, which has led the company for the past several years, contributes to their success as a
part of the living legacy of their successor generations, by sacrificing their spare time, borrowing all
their assets and taking out bank loans. The majority of the hospital’s work is being done in emergency
obstetric care, maternal and newborn care, and follow-up pediatrics.

If we consider too much the history of establishment, the basis of this plan is that the owners are, as
described above, the management and employee's one-year performance and good results have been
achieved, and the success of the performance is attributed to the leadership of this executive
committee and the employee's overall involvement. Therefore, the management and staff plan the
2010 fiscal year (Physical and Financial Planning), confident that they will work together to solve the
problems they face.
 1.1. Organizational Structure
The hospital organization is designed as follows;

BOD

Auditor CEO Legal Advisor

CM CFO CNO
O (Matron)
QO
Statistician

Bio-Medical Nursing practice

OPD
Laboratory
Gyn. Obs.
Imaging Pediatrics
Inpatient
OR
Pharmacy

Accountant HR

Casher & Reception General Service

1.2. Service Offered

In-patient and Outpatient- at Anania, the doctors and other healthcare professionals provide
routine and professional service aimed at maintaining the health and well-being of the patients.
Facility offers a wide range of in-patient and outpatient services. For routine medical care, after
making an appointment with receptionist to be seen by one of the doctors, patient’s condition
will be professionally and thoroughly evaluated to determine if customer will need to be
admitted and assigned to one of our 30 comfortable beds in a warm, spacious environment.
Through the entirety of customer’s stay the patient and their family will be treated with respect
and dignity by all of caring staff.

General Practice

Family doctors provide check-ups, diagnose illnesses, and write prescriptions to aid in treatment.
If a patient presents with a condition Ananiya MCH is unable to treat or further care is needed,
Anania has wide network of well-known, trusted partner specialists that will be able to treat the
patient.

Gynecology

Routine gynecological exams and preventative screenings such as Pap Smears are vital to the
health of every woman. With this in mind, the gynecologists will work with the patient’s to
identify any abnormalities and keep them aware of any complications and teach them how to
prevent themselves in the future.

Pediatrics

The medical staff has several pediatric specialists to attend to customer’s child’s medical needs.
They have everything from an on-call cardiologist to preventative screening specialists for
infants and children to ensure a healthy future for the leaders of tomorrow.

Prenatal Care

Pregnancy and motherhood is different for everyone and Anania’s staff recognizes that all
patients have different needs. That is why the doctors are always available for consultations and
medical supervision for prenatal care to closely monitor both mother and baby’s health
throughout the pregnancy.

Family Planning and Counseling

Planning is an important part of the journey into motherhood. Ananiya MCH has trained
counselors that provide a tailored service to each family that helps plan according to thier
lifestyle.

Emergency Delivery and Maternal Care

Ananiya MCH has recognized that every patient and their needs during pregnancy are unique.
Not all deliveries can be planned. That is why they specialize in and provide on-call maternal
care and are prepared for emergency deliveries 24 hours, 7 days a week, with a fully equipped
and knowledgeable staff.

Neonatal ICU

In the unlikely event of complications during delivery, Anania has a full-equipped Neonatal
Intensive Care Unit. The neonatal professionals will use the best equipment available such as;
infant incubator, CPAP equipment, and phototherapy machines to provide love and care for the
tiniest patients.

X-Ray

New to their facility is an on-site x-ray machine with a digital monitor to aid in in-depth
diagnosis and to follow the patients’ progress and recovery from previous treatment.

Ultrasound

Anania is proud to offer ultrasounds using the latest available technology to provide patients with
the first look at their new baby. The doctors will check the age, position, and monitor your
baby’s growth and development. They also offer routine prenatal ultrasounds screening for fetal
abnormalities.

Laboratory Service

On-site lab is fully equipped with the latest devices to determine patients’ diagnosis with
accuracy so that the doctor may proceed with the best possible treatment, regardless of condition.

Pharmacy Service

On-site pharmacy is stocked with both over-the-counter and prescription medications to ensure
customers’’ receive the best and most thorough treatment. A visit to their pharmacy is very
efficient and they provide counseling on new medications, as well as drug information services.

Ambulance Service
Anania has emergency services on stand-by 24 hours, 7 days a week should customers’ require
immediate transport.

2. Mission and Vision of the company

2.1. Mission
 By the principle of the Ministry of health that a mother should not die during childbirth;
Providing and contributing to the development of maternal and child health through the
establishment of an effective reproduction and monitoring system;
 By introducing other services alongside providing comprehensive treatment services to
the community in all areas by adjusting the organization and meeting the inputs.
 Lastly, because the company is a profit making organization, it has a mission to achieve
the revenue and profit maximization of its customers while effectively accomplishing the
aforementioned missions.
2.1.1. Comment
The mission of the AMCH is clearly stated and it describes the values and priorities
(Providing and contributing to the development of maternal and child health) of an
organization also it broadly charts the future direction of an organization and its
concern for survival, growth and profitability (it has a mission to achieve the revenue
and profit maximization of its customers while effectively accomplishing the
aforementioned missions). In addition we can see from the mission statement that
Ananiya MCH has put a distinctive competitive advantage (introducing other services
alongside providing comprehensive treatment services to the community in all areas
by adjusting the organization and meeting the inputs.). Besides the mission statement
has a concern for public image as it stated for the community to providing
comprehensive treatment services to the community in all areas. However as a
mission statement it would be better if it includes where Ananiya MCH located for its
market, the latest technological infrastructures that uses, indicate that the employees
are valuable assets. Even if it stated a basic belief of the firm it would be better to add

aspirations for customers like “በጤና ተቋም ሲወልዱ እናት ደህና ልጅም ጤና”.
2.2. Vision
 Our vision is to always be at the forefront of women's and children's healthcare by
providing quality and innovative service to all of our patients and to increase Anania's
capacity in order to make a significant impact on the future of Ethiopia. And Anania
Mothers and Children Specialized Medical Center; it is now up to 2015 to see it as a
fully-fledged general hospital.
2.2.1. Comment
For a vision statement it would be effective if it provides future direction (up to 2015
to see it as a fully-fledged general hospital), express a consumer benefit (always be at
the forefront of women's and children's healthcare by providing quality and
innovative service to all of our patients), motivated (to make a significant impact on
the future of Ethiopia) and fully communicated (as we can see everybody can
understand the vision statement) in such ways the vision statement is effective. But it
is difficult to comment if it is realistic and if it consistently followed and measured.

3. SWOT analysis

3.1. Strength and Weakness

3.1.1. Strength
 Increasing the number of customers more than it was previously in 2008;
 Establish a quality system based on modern technology and management of information
technology;
 Creating a more up-to-date system that is more efficient than the registration and
management of finance and accounting;
 Performed fixed asset inventory and recognized for the purpose of permanent asset
counting;
 Ensure that the hiring and recruitment of human resources is used as evidence-based and
responsive;
 Prepared for the first time, an annual performance report showing the activities of the
2009 business year;
 The employee; having a proper understanding of their rights and obligations and having
basic computer training and the salary and benefit requests being analyzed;
 There is a situation in which the management committee of the Center has jointly
consulted on major issues over the years;

3.1.2. Weakness
 The effort to develop the center's financial capacity is limited and, in particular, the lack
of a strong source of revenue to address this problem permanently.
 Whether the two sister companies should be kept separate when the financials are to be
seized;
 The Center failed to mobilize an annual plan and program that included full and active
participation of its leadership and staff to lead the organization in an organized manner.
 Research-based labor wage structure (e.g. equal pay for equal work), which has put a
significant strain on the performance process;
 Attempts to accommodate customer comments and adjustments that need to be adjusted;
 These can be considered weaknesses, such as a lack of adequate forum to create
conducive working environment to resolve criticisms and disputes between staff and
management.

3.1.3. Questions for internal analysis

I. Does the company identify strengths and weaknesses? If so, do you think the
assessment is in-depth, and include adequate factors?
 Yes, it has identified strength and weakness. In my point of view the assessment is in
depth, it includes adequate factors. Strengths are those positive aspects or unique features
or competencies that deliver a substantial competitive advantage that the organization can
build on. As we can see from the stated strength in the analysis the company indicates the
present market position that the number of customers is rising, the intangible resources
that the company established quality system based on modern technology and is creating
more up to date system.
Weaknesses are negative aspects in the organization; for example, deficiencies in the
present competencies or resources, or its image or reputation, which limit its
 effectiveness and which need to be corrected. The financial constraints, employees’
complaints which have put significant strain on the performance process, customers
complaints to be adjusted and lack of adequate forum to create conducive working
environment between staff and management are factors that limits the effectiveness of the
organization so this indicates that the assessment uses adequate factors.
II. What were core competencies and capabilities identified by internal assessment?
 Values
 Performed fixed asset inventory and recognized for the purpose of permanent asset
counting;
 Ensure that the hiring and recruitment of human resources is used as evidence-based and
responsive;
 Prepared for the first time, an annual performance report showing the activities of the
2009 business year;
 The employee; having a proper understanding of their rights and obligations and having
basic computer training and the salary and benefit requests being analyzed;
 Rarity(they can be seen as capability)
 Establish a quality system based on modern technology and management of information
technology;
 Creating a more up-to-date system that is more efficient than the registration and
management of finance and accounting;
 Non- sustainability
 There is a situation in which the management committee of the Center has jointly
consulted on major issues over the years.

3.2. Opportunities and Threats

3.2.1. Opportunities
 The establishment of a condominium building that is conducive to modern hospital
services and free of rent.
 A procurement system for medical devices and other inputs;
 Improving the organization and operation of the hospital day-to-day activity;
  By the end of the fiscal year, the hospital performance evaluation report produced by the
FMAHCA supervisors has been very encouraging;
 A situation where the management and staff are creating consensus and the
administrative system is strengthened;
 Having the opportunity to work with the support of the two sister companies (Health and
Business Center);
 Impact of relevant governmental and nongovernmental organizations (Ministry of
Health, AA Office, FMAHCA, Drug Enforcement Agency, Private Importers, Health
Organizations, Banks, Infrastructure Providers / Water Lighting Telephone / Media / etc.
... are the main ones.

3.2.2. Threats
 The incompatibility of the needs of the customers and employee to the organization;
 Price inflation and market fluctuation in purchasing of goods and services;
 Market competition among peer organizations;
 The absence of senior doctors in the market and their unlimited demand of Salary and
benefits;

3.3. PESTEL analysis

3.3.1. Political
 Political stability and significance of medical sector in the country's economy
 Taxation
 Import-export regulation/restrictions

3.3.2. Economical
 increasing interest rate
 Exchange rate
 Availability of credit
 reduced buying power of consumers
 Skill level of workforce in medical industry
  Inflation rate
 Labor costs and productivity in the economy
 Lack of resource for expansion

3.3.3. Social
 Culture (gender roles, social conventions etc.)
 aging population
 reduced fertility
 Attitudes (health, environmental consciousness, etc.)
 Quality before cost preference

3.3.4. Technological
 Technological awareness
 Internet infrastructure
 Life cycle of technology

3.3.5. Environmental
 Waste management in medical sector
 Increasing rate of air pollution

3.3.6. Legal
 Anti-trust law in Medical industry and overall in the country.
 Health and safety law
 Employment law

3.3.7. Questions for external analysis

i. Do they identify Opportunities and threats after analyzing the external environment?
If so, do you think the assessment is in-depth, and use adequate information sources?
 Yes, the company identifies opportunities and threats. Opportunities are favorable
conditions that usually arise from the nature of changes in the external
environment; for example, new markets, improved economic factors or a failure
of competitors. These kinds of opportunities are identified as we can see from the
opportunity statement and also it includes the adequate factor.
Threats are the opposites of opportunities and also arise from external
developments. Examples include unfavorable changes in legislation, the
introduction of radically new product by competitor, political or economic unrest,
changing social conditions or the actions of pressure group. As we can see from
the above threat statement factors like price inflation, market inflation, market
competition and absence of senior doctors so we can understand from this the
external analysis is made upon including adequate factors.
ii. Does the company conduct competitive analysis?
No. Competitive analysis should be viewed as an ongoing process whereby your
company continues to understand the strengths, weaknesses, opportunities and
threats in relation to your competition. Conducting competitive advantage has a
benefit for a company like:
 Understanding the market
 Better targeting customers
 Market potential forecasting
 Economic climate tracking
 Competitor product tracking
 Competitor pricing
 Tertiary market possibilities
 Customer acquisition
 4. Strategies Formulated by the Company

4.1. Strategies for implementing the plan

 Attracting prominent specialist physicians to the organization; Formulating an
employee who can provide efficient and courteous hospitality; and Advertising
through the media:
 Consolidate the services being provided and launch new services;
 Strengthen the practice by working with and supporting organizations that follow the
Electronic Medical Record System;
 Assign the appropriate professional to quality control and receive training on the
process and the detailed implementation;
 Creating and working collaboratively with F-M-Haka;
 Establish a system for working with the Federal Drug and Medical Equipment Supply
Agency;
 Carry out a market analysis with a view to capacity needs and set up a procurement
system for the procurement;
 Promote the Electronics and Printing Media Service by, where necessary, Planning
Performance

5. Implementation Issues
First let discuss the main purpose of the plan
The main purpose of the Strategic plan is to identify and address the core problems of the
center, especially by providing key resources (personnel, finance, medical equipment, drugs,
and other inputs) and developing a cohesive relationship between the Management Committee
and Staff, increasing the reach of the Center and providing customer satisfaction, increasing the
number of customers ensuring profitability.
 Specific objectives
 Expand the center's scope of service and make it accessible to the customers.
 Increase professional support for staff.
 Increase employee satisfaction and increase engagement.
 Increase both customer satisfaction and numbers.
  Ultimately, it is to increase profitability from the service.
 The basics initiatives of the plan
 Ensuring their continuity to a level that will never go back, further strengthening
achievements over the years.
 Increasing their performance through the introduction of unfinished hospital referral
works launched last year and by establishing a monitoring and support system.
 Perform tasks that will be applied to the center's plan by using center staff.
 Encourage employees to have the insight they need to be able to fulfill their roles and
enable them to become competent and active.
 To obtain and support the Government by providing quality health services required by
the Center, using the incentive to work with government and non-governmental
organizations; they are the main ones.
 The key function of the plan, the purpose of the key function, goals and key functions
 Key Activity: establish a problem-solving system based on service thinking and carry
out project and formal activities.
 The purpose of the key function is: starting the launch of the Electronic Medical
Record Software, paying particular attention to its work and striving to operate the
data-based and cost-effective way.
 The overall goal of the key function is: the centralization of the center into the
information management system is to enable all services to go through the system and
to maximize the service that the center provides to its customers by addressing data
management and delays.
 Goals and main activities:
- Goals: creating ways to increase revenue and maximize profits by looking
for relevant options for the job;
 Implementation Issues
 The Reporting Monitoring and Evaluation system will be implemented to allow the
Center Board to regularly monitor whether the fiscal year plan is in the right direction.
 The department heads review their plan performance each month and make
adjustments.
  The project manager will submit a quarterly performance report to the Board members
within two weeks of the quarter.
 The Central Board of Management convenes within one week of receiving the
quarterly performance report and evaluates its performance report and takes corrective
measures.

6. Challenges
 Lack of commitment of the staff to discharge their duties and responsibilities- this is is
the main threat for the survival of the organization as a loss of competent employee is
a loss of competitive advantage for the organization.
 Owner’s resistance for the change- so many businesses are struggling in today’s
economic times, Most small business leaders have the best intentions in mind and may
not even be aware of their inability to implement change and its direct effect on the
businesses.
 Suppliers in consistency in time quality, quantity and cost- business are dependent
upon the ability of suppliers to provide consistent, on-time supply of quality raw
materials.
 Exaggerated demand of customers- it is known that “the customer is always right”
comes at the core of their approach to customer service. There will always be
opportunists, so managers need to be aware of this and how to handle them. More
importantly companies need to be aware they are not helpless in the face of outlandish
claims by outraged customers.

7. Conclusion
To sum up, it should be recalled in the 18 years since the hospital’s inception, Ananiya MCH has
established to be one of the leading comprehensive medical service providers for women and
children. But now is suffering due to financial constraints. Let’s identify strengths and
weaknesses (gaps) of the company in terms of strategic management practices by discussing the
strategies one by one:
1. For the first strategy it only stated attracting prominent specialists’, physicians to the
organization it does not state how they are going to attract them for e.g. attractive payment
and benefits. Similarly on formulating an employee who can provide efficient and well-
mannered hospitality, it does not indicate how they are accomplishing this strategy. Such
methods can be used; by giving training and motivating employees in different ways.
2. Advertising through the media helps them to advertise their brand name.
3. There is no clear path to how to strengthen the services being provided; for example,
strengthening the services by supporting financial, professional and logistical.
4. Electro-Medical Record system, following companies and organizations experience sharing
and operational working to systematize and strengthen is possible and very good method.
This strategy can help to achieve the 3rd mission stated in the mission statement.
5. what I think is Work control is appropriate in a professional setting aside general hospital
made the change to bring about a more robust business process permits to allow the
suggested method very good. In addition, I believe, shelving assignment process and the
details of the implementation of training the professional make the strategy under control.
This strategy enables them to achieve the second mission stated in the mission statement.
6. Working with the Federal medicine and medical equipment to supply the agency is good
method to make the hospital quality and standard and secure service provider. This strategy
enables them to achieve the second mission stated in the mission statement.
7. Market research for the presumption of capacity to cater for the purchase engage in will also
be the organization’s biggest rescues.
Therefore from these we can conclude Ananiya MCH’s strategy can achieve its mission, it is
manageable, considers all feasible alternatives and also the strategy performs the input tools
to quantify subjectivity during formulation besides it matches external and internal critical
success factors like TOWS matrix.

8. Recommendation
1. Some countries have moved faster than others in addressing equal pay. By Taking into
account employee complaints addressing equal pay it is necessary to improve
performance process.
2. Preparing separate financial records for the two sister companies in order to know the
financial position of the hospital ( Ananiya MCH has a sister company called Ananiya
business center).
3. Include an alternative solution in the next strategic plan that will provide a permanent
solution for the financial crisis.
4. Accommodate customers comment and make adjustments that need to be adjusted.
5. Include strategies that can resolve criticism and dispute between staff and management.
6. Conduct a competitive advantage that enables the company to understand the market.
7. Bring more strategies that are clear and manageable for the next strategic plan.
References
Strategic Handout , Ashenafi Abera

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https://en.wikipedia.org/wiki/Equal_pay_for_equal_work#:~:text=Equal%20pay%20for
%20equal%20work%20is%20the%20concept%20of%20labour,to%20the%20gender%20pay
%20gap.&text=Some%20countries%20have%20moved%20faster%20than%20others%20in
%20addressing%20equal%20pay.

Retrieved from:

https://www.mymoneycoach.ca/blog/how-to-overcome-financial-problems-
difficulties#:~:text=Create%20a%20Budget%20%2D%20Spend%20Money,spending%20plan
%20for%20your%20money.

Retrieved from:

https://thinkbusiness.nus.edu.sg/article/dealing-with-opportunistic-customers/

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https://www.ukessays.com/essays/management/lack-of-employee-commitment-management-
essay.php

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https://myassignmenthelp.com/free-samples/strategic-management-of-coca-cola

Retrieved from:

https://www.academia.edu/7055342/Strategic_Management_Analysis_Tools

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