Portfolio Analysis of Mayo Clinic



Portfolio Analysis of Mayo Clinic

Introduction

The study intends to analyze the market position of Mayo Healthcare Clinic in order to evaluate its market share as well as growth rate. The paper attempts to highlight the products and services of Mayo Clinic through the Boston Consulting Growth Matrix. Wherein, the services of Mayo Clinic will be grouped under the four categories of BCG Matrix which include cash cows, stars, question mark, and dogs. However, the reasons and rationales for placing the services under each category will also be indicated in order to provide the comprehensive understanding.

A portfolio analysis evaluates the market position of the health care organization pertinent to its growth rate and the market share. The portfolio analysis basically examines the overall businesses of the organization that include its entire portfolio where it analyzes the performance of each products and services against the goals. According to Hunger and Weelen (2007) the portfolio analysis is also termed as the strategic formulation process where the organizations actively use the portfolio analysis to view their product and service lines as well as strategic business units to analyze where to make series of investments from which the organization expects to get a profitable return. In short, the portfolio analysis looks at the entire business and the position of the organization and then allocates the resources to best benefit the organization. There are two types of portfolio analysis approaches where the first one is 'Boston Consulting Group (BCG) Growth Share Matrix' and the second one is the 'GE Business Screen'. However, the paper will only use the BCG matrix to indicate the profitable products and services of Mayo Clinic.

Discussion

Portfolio analysis helps in identifying the likeliness of products and services and their success rate. It evaluates the overall return on each product and service of the organization, analyzes the requirements for the further investments on the profitable services, elimination of unprofitable products and services, and supportable questionable service lines to convert them into the profitable lines (Hunger and Wheelen, 2007). Hence, the primary objective of portfolio analysis is to facilitate organizations to understand their businesses and at the same time, it provides useful information to introduce changes (Riley, 2010). The health care organizations can use the portfolio analysis to identify that which of their service units should receive more resources. As in the hospital setting, the portfolio analysis examines which labs, units, and departments are profitable, which units require more resources to expand, and which units are useless and need to be dissolved (Hunger and Weelen, 2007).

Mayo Clinic and Portfolio Analysis

Mayo Clinic is the non-profit medical organization and research group which is based in Minnesota, United States. It is the first largest non-profit medical organization throughout the world. It also comes under the list of best hospitals for more than twenty years (US News and World Report, 2013). Mayo Clinic is renowned for its quality of services and other provisions such as product on health care ...