1887

Chapter 3 : Relevant Economic and Business Concepts

MyBook is a cheap paperback edition of the original book and will be sold at uniform, low price.

Ebook: Choose a downloadable PDF or ePub file. Chapter is a downloadable PDF file. File must be downloaded within 48 hours of purchase

Buy this Chapter
Digital (?) $30.00

Preview this chapter:
Zoom in
Zoomout

Relevant Economic and Business Concepts, Page 1 of 2

| /docserver/preview/fulltext/10.1128/9781555817695/9781555812799_Chap03-1.gif /docserver/preview/fulltext/10.1128/9781555817695/9781555812799_Chap03-2.gif

Abstract:

The development of a strategic business plan begins with a market assessment of consumer needs. Before a product or service reaches the consumer, the development strategies should be evaluated against four environmental variables: legal (regulatory), competitive, economic, and societal environments. These four variables influence both the business development strategies and the consumer’s perceptions about product value. The goals established for product and service delivery should be innovative and visionary. The competitive environment is created by interaction among businesses that offer similar products and services. There are two main categories of economics. Microeconomics focuses on individual behavior and the interaction of companies. Macroeconomics examines the interaction of income, employment, and inflation on the economy as a whole. Many economists argue that society can avoid future depression by intelligent utilization of economic and fiscal policies. In the current market, consumers (linked by geography, employer group, or managed-care plan) have increased the demand for cooperation among the stakeholders, setting the stage for the unprecedented wave of consolidations, mergers, acquisitions, and partnerships witnessed in the past decade. Healthcare providers realize that the patient is the client and consumer. They now recognize the importance of including the patient in the development of the care plan and the decision-making process. The efficacy, safety, cost-effectiveness, and clinical outcomes of diagnostic and treatment strategies link utilization of resources and economics.

Citation: Harris A. 2004. Relevant Economic and Business Concepts, p 41-66. In Garcia L, Baselski V, Burke M, Schwab D, Sewell D, Steele J, Weissfeld A, Wilkinson D, Winn W (ed), Clinical Laboratory Management. ASM Press, Washington, DC. doi: 10.1128/9781555817695.ch3

Key Concept Ranking

Magnetic Resonance Imaging
0.55
0.55
Highlighted Text: Show | Hide
Loading full text...

Full text loading...

Figures

Image of Figure 3.1
Figure 3.1

Strategic business planning. The four key strategies (pricing, production, marketing, and service) serve as the cornerstones in the framework for the development of a successful business plan. The strategies must be carefully weighed against the influences of the four variable environmental factors and the market research information on consumer needs for the products and services.

Citation: Harris A. 2004. Relevant Economic and Business Concepts, p 41-66. In Garcia L, Baselski V, Burke M, Schwab D, Sewell D, Steele J, Weissfeld A, Wilkinson D, Winn W (ed), Clinical Laboratory Management. ASM Press, Washington, DC. doi: 10.1128/9781555817695.ch3
Permissions and Reprints Request Permissions
Download as Powerpoint
Image of Figure 3.2
Figure 3.2

The four stages of the economy. The economy is cyclic and progresses through four stages. There are cycles when the economic environment supports the move from recession directly to recovery, bypassing an economic depression.

Citation: Harris A. 2004. Relevant Economic and Business Concepts, p 41-66. In Garcia L, Baselski V, Burke M, Schwab D, Sewell D, Steele J, Weissfeld A, Wilkinson D, Winn W (ed), Clinical Laboratory Management. ASM Press, Washington, DC. doi: 10.1128/9781555817695.ch3
Permissions and Reprints Request Permissions
Download as Powerpoint
Image of Figure 3.3
Figure 3.3

Product price is a result of the interaction of supply and demand. Products and services are not sold until the buyer and seller agree on a price. Equilibrium price is the price at which buyers are willing to buy the same quantity as suppliers are willing to supply. Adapted from http://tfc-charts.w2d.com/learning/supply_and_ demand.html from material provided by Keystone Marketing Services (site last accessed April 2003).

Citation: Harris A. 2004. Relevant Economic and Business Concepts, p 41-66. In Garcia L, Baselski V, Burke M, Schwab D, Sewell D, Steele J, Weissfeld A, Wilkinson D, Winn W (ed), Clinical Laboratory Management. ASM Press, Washington, DC. doi: 10.1128/9781555817695.ch3
Permissions and Reprints Request Permissions
Download as Powerpoint

References

/content/book/10.1128/9781555817695.chap3
1. Aaron, H. E. 1995. Physician practice mergers: part I. The merger process. Va. Med. Q. 122:194197.
2. Barker, R. F. 1971. Are profits and social concern incompatible? Pittsburgh Bus. Rev. 1971:2.
3. Beckham, J.D. 2001.What to watch for in the next three years as Internet transforms the healthcare landscape. Clin. Leadersh. Manag. Rev. 15:107113.
4. Beckwith, D. G.,, and B. Rokus. 1997. Creating win-win partnerships. Adv. Admin. Lab. 6(8): 6471.
5. Boone, L.,, and D. Kurtz,. 1977. The economic environment, p. 29. In P. Kotler, and P. E. Green (ed.), Contemporary Marketing, 2nd ed. The Dryden Press, Hinsdale, Ill.
6. Boone, L.,, and D. Kurtz,. 1977. The marketing process: an overview, p. 19. In P. Kotler, and P. E. Green (ed.), Contemporary Marketing, 2nd ed. The Dryden Press, Hinsdale, Ill.
7. Boone, L.,, and D. Kurtz,. 1977. The marketing process, p. 6. In P. Kotler, and P. E. Green (ed.), Contemporary Marketing, 2nd ed. The Dryden Press, Hinsdale, Ill.
8. Boone, L.,, and D. Kurtz,. 1977. The economic environment, p. 4748. In P. Kotler, and P. E. Green (ed.), Contemporary Marketing, 2nd ed. The Dryden Press, Hinsdale, Ill.
9. Boone, L.,, and D. Kurtz,. 1977. The elements of product strategy, p. 202205. In P. Kotler, and P. E. Green (ed.), Contemporary Marketing, 2nd ed. The Dryden Press, Hinsdale, Ill.
10. Boone, L.,, and D. Kurtz,. 1977. The elements of product strategy, p. 221225. In P. Kotler, and P. E. Green (ed.), Contemporary Marketing, 2nd ed. The Dryden Press, Hinsdale, Ill.
11. Bregman, M.,, and R. Greene. 1980.You and your job. Careers in industrial marketing research. Chem. Eng. 12:6163.
12. Butros, F. 1997. The manager’s financial handbook, laboratory administration-capital budgeting. Clin. Lab.Manag. Rev. 11:410411.
13. Coile, R. 1997. Probe, Module 4: Laboratory Networks and Alliances, p. 78. CLMA,Wayne, Pa.
14. Counts, J. M. 2001.Washington Clinical Laboratory Initiative: a vision for collaboration and strategic planning for an integrated laboratory system. Clin. Leadersh.Manag. Rev. 15:9799.
15. DeBower, L. 1996. High technology industries: from courtship to union: making a strategic alliance work. Knowledge Line. Solutions for Business. Client newsletter, Coopers L.L.P. (now PricewaterhouseCoopers), New York, N.Y.
16. Diehl, C. 2001. The role of the laboratory in the integrated health-care system. Presented at the CLMA Leadership in Clinical Systems Management Annual Convention and Exhibition, St. Louis,Mo.
17. Drucker, P. F. 1997. The global economy and the nation-state. Foreign Aff. 76(5):17.
18. Dye, J. 2002. Template topics. Business planning: a template for success. Clin. Leadersh.Manag. Rev. 16:3943.
19. Eckhart, J. 2002. Best practices in customer service report cards. Clin. Leadersh.Manag. Rev. 16:98100.
20. Fantus, J. E. 1996. Cost-Based Pricing Strategies for Clinical Laboratories—An Interactive Financial Guide, p. 103107.Washington G-2 Reports,Washington, D.C.
21. Fantus, J. E. 1997. Laboratory Industry Report, p. 14.Washington G-2 Reports,Washington, D.C.
22. Hoerger, T. J.,, J. L. Eggleston,, R. C. Lindroth,, and E. Basker. 1997. Background Report on the Clinical Laboratory Industry, p. 1105. Center for Economics Research, Research Triangle Park, N.C.
23. Klipp, J., 2000. Overview of clinical laboratory industry trends, p. 15. In D. J. Curren (ed.), Laboratory Industry Strategic Outlook 2000 Market Trends & Analysis. Washington G-2 Reports,Washington, D.C.
24. Klipp, J., 2000. Hospitals: laboratory outreach programs, networks and partnerships, p. 111139. In D. J. Curren (ed.), Laboratory Industry Strategic Outlook 2000 Market Trends & Analysis. Washington G-2 Reports,Washington, D.C.
25.Learning International, Inc. 1983. Xerox Professional Skills III. Learning International, Inc., Stamford, Conn.
26. McNealy, R. M. 1996. Making Customer Service Happen, p. ixxii, 23. Chapman and Hall, London, United Kingdom.
27. McNealy, R. M. 1996. Making Customer Service Happen, p. 26. Chapman and Hall, London, United Kingdom.
28. McNealy, R. M. 1996. Making Customer Service Happen, p. 4547. Chapman and Hall, London, United Kingdom.
29. McNealy, R. M. 1996. Making Customer Service Happen, p. 6175. Chapman and Hall, London, United Kingdom.
30. Mieling, T.,, and J. Keshner. 1996. Accessing capital for integrated delivery systems. Health. Financ.Manag. 1:3235.
31. Miller, R.,, S. Heiman,, and T. Tuleja. 1985. Strategic Selling, p. 6999.Warner Books, New York, N.Y.
32. Monahan, C. 1997. It’s a done deal: the changing role of traditional medicine, what is a network. Clin. Lab. Manag. Rev. 11:276283.
33. Nigon, D. 1998. Marketing in Your Laboratory, 2nd ed., p. 2543. Clinical Laboratory Management Association, Inc.,Wayne, Pa.
34. Nigon, D. 1998. Marketing in Your Laboratory, 2nd ed., p. 170. Clinical Laboratory Management Association, Inc.,Wayne, Pa.
35. Nigon, D. 1998. Marketing in Your Laboratory, 2nd ed., p. 133. Clinical Laboratory Management Association, Inc.,Wayne, Pa.
36. Nigon, D. 1998. Marketing in Your Laboratory, 2nd ed., p. 130131. Clinical Laboratory Management Association, Inc.,Wayne, Pa.
37. Nigon, D.,, L. Shaw,, and J. Barnes. 2000. A case study in laboratory outreach program development. Clin. Leadersh. Manag. Rev. 14:97108.
38. Otto, C. 2002. Utility scores for dimensions of clinical laboratory testing services from two purchaser perspectives. Clin. Leadersh. Manag. Rev. 16:7076.
39. Quevedo, R. 1991. Quality, waste, and value in white collar environments. Qual. Prog. 1991(1):3337.
40. Reichheld, F.,, and W. E. Sasser, Jr. 1990. Zero defections: quality comes to services. Harv. Bus. Rev. 1990(9/10):105111.
41. Sewell, C.,, and P. Brown. 1990. Customers for Life, p. xixxx. Pocketbooks, a Division of Simon & Schuster, Inc., New York, N.Y.
42. Sewell, C.,, and P. Brown. 1990. Customers for Life, p. 6, 23, 17, 34, 11, 60, 32, 55, 118, 126, 147. Pocketbooks, a Division of Simon & Schuster, Inc., New York, N.Y.
43. Shepard, D. 1995. Strategic restructuring for healthcare organizations: choosing a business structure. Prognosis 1995(11):111.
44. Smythe, M. H. 1997.Management in action. Low cost, high payoff solutions! Clin. Lab.Manag. Rev. 11:236242.
45. Snyder, J. R.,, and M. Best. 1997. Managing human resources in a changing healthcare environment. Clin. Lab. Manag. Rev. 11:285289.
46. Treacy, P. 2000. Ideas to help your business. Effective Customer Relationship Management, p. 15. QuickBooks.com Newsletter, November 2000.
47. Wilkinson, I. 1999. Dollar$ and $en$e: part II, the cost of adding value. Clin. Lab.Manag. Rev. 13:219222.
48. Wisler, P. W. 1997. Module 2: money and finance: strategic planning consideration in a dynamic marketplace by Coopers and Lybrand L.L.P. Presented at The Dark Report’s Strategic Business Plans for Laboratory/Pathology Consolidation and Restructuring, New Orleans, La.
49.Xerox Learning Systems. 1976. Xerox Corporation, Stamford, Conn.
50. Besley, S.,, and E. F. Brigham. 2003. Principles of Finance, 2nd ed. Southwestern Publishing/Thomson Learning,Mason, Ohio.
51. Block, S.B.,, and G. A. Hirt. 2002. Foundations of Financial Management, 10th ed.McGraw-Hill, New York, N.Y.
52. Clinical Leadership and Management Review. 2001. Template Topics. Calculating costs. Clin. Leadersh.Manag. Rev. 15:124127.
53. Degrote, L. 2002. Lowering bad debt in healthcare: the cure is easier than you think. Clin. Leadersh.Manag. Rev. 16:5962.
54. Emery, D. R.,, J.D. Finnerty,, and J.D. Stowe. 2004. Corporate Financial Management, 2nd ed. Prentice-Hall, Englewood Cliffs, N.J.
55. Fantus, J. E. 1999. Business strategies for hospital outreach programs. Clin. Lab.Manag. Rev. 13:188196.
56. Hanford, W. C. 1997. Financial skills for the non-financial manager. Breakout session VI. Clinical Laboratory Management Association Annual Conference and Exhibit, Toronto, Ontario, Canada.
57. Nigon, D. 2000. Evaluating your laboratory outreach program. Clin. Leadersh.Manag. Rev. 14:153159.
58. Paxton, A. 2001. In the news—bean counting basics for laboratories, using ABC to show cost savings. CAP Today at http://www.cap.org/captoday/archive/2001 (last accessed August 2002).
59. Porter, M. 1996.What is strategy? Harv. Bus. Rev.
60. Seybold, P. B.,, R. T. Marshak,, and J. M. Lewis. 2001. The Customer Revolution: How To Thrive When Customers Are in Control. Crown Business, New York, N.Y.
61. Seybold, P. B.,, and R. T. Marshak. 1998. Consumers.com: How To Create a Profitable Business Strategy for the Internet and Beyond. Crown Business, New York, N.Y.
62. Statland, B. 1995. The commercialization of lab services. . .or make no mistake about it, lab testing is big business. MLO Med. Lab. Obs. 27(10):3337.
63. Van Horne, J. 2002. Financial Management and Policy, 12th ed. Prentice-Hall, Englewood Cliffs, N.J.
64. Wilkinson, I. 1995. Economics 101: exploring the land of costs. MLO Med. Lab. Obs. 27(12):3943.
65. Ziegler, B. 1997. Will history repeat itself ? Vantage Point 1(20/21):15.

Tables

Generic image for table
Table 3.1

Change drivers during the 1990s

CLIA '88, Clinical Laboratory Improvement Amendments of 1988.

See reference 24.

Citation: Harris A. 2004. Relevant Economic and Business Concepts, p 41-66. In Garcia L, Baselski V, Burke M, Schwab D, Sewell D, Steele J, Weissfeld A, Wilkinson D, Winn W (ed), Clinical Laboratory Management. ASM Press, Washington, DC. doi: 10.1128/9781555817695.ch3
Generic image for table
Table 3.2

Industry trends during the past decade

Citation: Harris A. 2004. Relevant Economic and Business Concepts, p 41-66. In Garcia L, Baselski V, Burke M, Schwab D, Sewell D, Steele J, Weissfeld A, Wilkinson D, Winn W (ed), Clinical Laboratory Management. ASM Press, Washington, DC. doi: 10.1128/9781555817695.ch3
Generic image for table
Table 3.3

Emerging network models

See reference 13.

Citation: Harris A. 2004. Relevant Economic and Business Concepts, p 41-66. In Garcia L, Baselski V, Burke M, Schwab D, Sewell D, Steele J, Weissfeld A, Wilkinson D, Winn W (ed), Clinical Laboratory Management. ASM Press, Washington, DC. doi: 10.1128/9781555817695.ch3
Generic image for table
Table 3.4

Commonly used terms in cost and price analysis

See reference 20.

Citation: Harris A. 2004. Relevant Economic and Business Concepts, p 41-66. In Garcia L, Baselski V, Burke M, Schwab D, Sewell D, Steele J, Weissfeld A, Wilkinson D, Winn W (ed), Clinical Laboratory Management. ASM Press, Washington, DC. doi: 10.1128/9781555817695.ch3
Generic image for table
Table 3.5

Tools and techniques used in developing pricing strategies

Citation: Harris A. 2004. Relevant Economic and Business Concepts, p 41-66. In Garcia L, Baselski V, Burke M, Schwab D, Sewell D, Steele J, Weissfeld A, Wilkinson D, Winn W (ed), Clinical Laboratory Management. ASM Press, Washington, DC. doi: 10.1128/9781555817695.ch3
Generic image for table
Table 3.6

Buying motivators (hot buttons)

Citation: Harris A. 2004. Relevant Economic and Business Concepts, p 41-66. In Garcia L, Baselski V, Burke M, Schwab D, Sewell D, Steele J, Weissfeld A, Wilkinson D, Winn W (ed), Clinical Laboratory Management. ASM Press, Washington, DC. doi: 10.1128/9781555817695.ch3
Generic image for table
Table 3.7

Target market segments for clinical laboratories

Citation: Harris A. 2004. Relevant Economic and Business Concepts, p 41-66. In Garcia L, Baselski V, Burke M, Schwab D, Sewell D, Steele J, Weissfeld A, Wilkinson D, Winn W (ed), Clinical Laboratory Management. ASM Press, Washington, DC. doi: 10.1128/9781555817695.ch3
Generic image for table
Table 3.8

Rule of 78

This formula is based on the premise that when a new account is sold in the first month of the fiscal year, it will add revenue for 12 months. An account that is brought on board in the second month will only add revenue for 11 months and so on. 12 + 11 + 10 + 9 + 8 + 7 + 6 + 5 + 4 + 3 + 2 + 1 =78.

Citation: Harris A. 2004. Relevant Economic and Business Concepts, p 41-66. In Garcia L, Baselski V, Burke M, Schwab D, Sewell D, Steele J, Weissfeld A, Wilkinson D, Winn W (ed), Clinical Laboratory Management. ASM Press, Washington, DC. doi: 10.1128/9781555817695.ch3
Generic image for table
Table 3.9

Steps of call preparation and rehearsal

Citation: Harris A. 2004. Relevant Economic and Business Concepts, p 41-66. In Garcia L, Baselski V, Burke M, Schwab D, Sewell D, Steele J, Weissfeld A, Wilkinson D, Winn W (ed), Clinical Laboratory Management. ASM Press, Washington, DC. doi: 10.1128/9781555817695.ch3
Generic image for table
Table 3.10

The cold call: information gathering

Citation: Harris A. 2004. Relevant Economic and Business Concepts, p 41-66. In Garcia L, Baselski V, Burke M, Schwab D, Sewell D, Steele J, Weissfeld A, Wilkinson D, Winn W (ed), Clinical Laboratory Management. ASM Press, Washington, DC. doi: 10.1128/9781555817695.ch3
Generic image for table
Table 3.11

Marketing publication and advertising needs

Citation: Harris A. 2004. Relevant Economic and Business Concepts, p 41-66. In Garcia L, Baselski V, Burke M, Schwab D, Sewell D, Steele J, Weissfeld A, Wilkinson D, Winn W (ed), Clinical Laboratory Management. ASM Press, Washington, DC. doi: 10.1128/9781555817695.ch3
Generic image for table
Table 3.12

Who is the customer?

See reference 26.

Citation: Harris A. 2004. Relevant Economic and Business Concepts, p 41-66. In Garcia L, Baselski V, Burke M, Schwab D, Sewell D, Steele J, Weissfeld A, Wilkinson D, Winn W (ed), Clinical Laboratory Management. ASM Press, Washington, DC. doi: 10.1128/9781555817695.ch3
Generic image for table
Table 3.13

Customer attitudes

See references 25 and 49.

Citation: Harris A. 2004. Relevant Economic and Business Concepts, p 41-66. In Garcia L, Baselski V, Burke M, Schwab D, Sewell D, Steele J, Weissfeld A, Wilkinson D, Winn W (ed), Clinical Laboratory Management. ASM Press, Washington, DC. doi: 10.1128/9781555817695.ch3

This is a required field
Please enter a valid email address
Please check the format of the address you have entered.
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error