KPJ Healthcare Berhad - Internal Analysis

Topics: Corporate governance, Management, Cash flow Pages: 10 (3006 words) Published: December 4, 2013
Question 2: The analysis of the internal environment of KPJ Healthcare Berhad that affecting supplies chain drivers of company.

Assessment
Diagnosis
Recommendation
1. Shortage of qualified staff
Some of the staff is still under training but they provide service such as nurses. This maybe will damage the reputation of the hospital among its competitors. Currently, there are critical needs for experienced nurses in the operating room, critical care, and neonatal care arenas. Also some of their doctors they are fresh graduated and need some professional training.

KPJ to ensure all their staff nurse have finished their training first to deliver quality work more efficient. It thus able to attract customers trust for the service they offer. In addition, doctors also need at least have the experience more than five years before deploying as one of the KPJ 2. High cost of operations

The running cost of health care industry may be high compare to the income. This has happen in a lot of organization before which has resulted in organization collapse. Managing productivity of their physicians.

ensured that nursing and paramedical teams get to play a more active reduce expences.
3. Weak operating cash flows

Any business needs good income to continue in their business, KPJ has many branches around Malaysia but some of the branches they have weak income and this maybe will force the company to close these branches. 1. Goods

Examining the data from the sales staff on the regular basis 2. Information
KPJ must have visibility of their product shipments
3. Fund
Doing customer credit check
Offering term discount
Asking customer to pay by cash or credit card
Charging late fees
4. Corporate governance risk
KPJ Healthcare Berhad does engage in related-party transaction with companies under the Johor Corp umbrella since they are ultimately owned by the state of Johor. They may have used any advance national agenda to detriment of minority stakeholders.

Oversight of risk management is a clear duty of the board
Aware of risk management and incentive system

1. Shortage of qualified staff
The world has entered a critical period for human resources for health. The scarcity of qualified health personnel, including nurses, is being highlighted as one of the biggest obstacles to achieving health system effectiveness. Nurses are the main professional component of the ‘front line’ staff in most health systems, and their contribution is recognized as essential to meeting development goals and delivering safe and effective care. Shortage of qualified staff nurse will decrease quality of patient care. Staff shortages caused by nursing turnover are associated with significant decreases in the general quality of patient care, increases in the length of patient stays within hospitals.

Some of the staff is still under training but they provide service such as nurses. This maybe will damage the reputation of the hospital among its competitors. Also some of their doctors they are fresh graduated and need some professional training. Currently, there are critical needs for experienced nurses in the operating room, critical care, and neonatal care arenas. 

To overcome these issues, KPJ to ensure all employees have finished their training first to deliver quality work more efficient. It thus able to attract customers trust for the service they offer. Other than that, hospitals are reintroducing intensive training programs for nurses in these specialties. This helps to retain nurses who are looking for a transfer opportunity as well as to recruit new staff. It also builds a career development path for staff. These training programs are not inexpensive and nursing leaders must be prepared to justify the required budget. Given the cost of temporary staff, this should be a logical solution for the organization's leadership to endorse. In addition, doctors also need at least have the experience more than five years...
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