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Decision-Matrix Technique

A selective matrix allows making a decision from the variety of options on the basis of several criteria. The list of options has to be primarily prioritized to the best appropriate ones. Decision matrix enables user to solve a problem through evaluating, rating and comparing the different solutions. (Technology Evaluation Centers 2015.)

The main advantage of using selective matrix is that, besides the basic evaluation of options according to the criteria, the final decision considers significance of each criterion for a case problem. That is exactly what the research problematic needs.

In this research, a COWS method of decision-matrix will be used. COWS stand for information that has to be obtained for a final decision-making – Criteria (required for selection), Options (decision alternatives), Weights (put based on its importance for the final decision), and Scores (rate for each option according to criterion). (Technology Evaluation Centers 2015.)

After criteria and options are chosen, the importance of each criteria for foreign market entry mode selection is evaluated (weights are put). Further, the alternatives are assessed in accordance with each criteria using 0-10 scale (rates are put). After that the score is calcuated by multiplying rating on weight (Score = Rating x Weight) and then the final decision is made in accordance with the total score (Total Score = SUM(Scores)). The higher the total score – the better is the option for a specific case. (Technology Evaluation Centers 2015.)

To ensure the accuracy of the final choice, selection matrix will be filled by different experts of the healthcare market. Final results together with experts’ remarks will be combined to make a final decision on the best appropriate Russian healthcare market entry mode.

 

Interview Template

General Questions:

1. How do you see the current situation of the private medical market of St. Petersburg?

2. What do you think of the future development of healthcare services provided in St. Petersburg?

3. In which direction you think private healthcare services providers will develop in 5-10 years? (clinics will become more consolidated, or specialized, competition will grow)

4. Is the medical business still profitable in conditions of crisis?

5. Is it worthwhile to start a new business today?

 

Wholly Owned Subsidiary:

1. What is the approximate time needed for a company to start the actual operations in healthcare services after the beginning of license obtainment procedures?

2. How bureaucratic are those procedures?

3. What is the approximate investment required to start a new clinic and how long is the payback period?

4. Are there significant difficulties with hiring staff today?

5. How long does it take from the beginning to build a working network of clinics-partners, suppliers, customers?

Merger & Acquisition:

1. What do you think is the appropriate share to be acquired from the practical point of view? (how it normally happens on the St. Petersburg healthcare market)



2. What share of the company is interesting for keeping by old shareholders in case of M&A of their medical company?

3. What is the financial prognoses (in terms of payback period and returns) of investing let’s say ˆ 5 million in acquiring shares of a profitable multi-functional clinic?

4. What kind of contractual commitments should be included to make the acquired company operate in a regular way (to retain the quality of healthcare services provided, to keep the staff on board)?

5. How to avoid fail in Merger & Acquisition strategy on St. Petersburg healthcare market?

As another part of the interview, experts will be asked to express their opinion on importance of the criteria for foreign market entry mode selection (put weights to criteria), and after to evaluate the alternatives in accordance with each criteria using 0-10 scale (put ratings). After that the score is calcuated by multiplying rating on weight (Score = Rating x Weight) and then the final decision is made in accordance with the total score (Total Score = SUM(Scores)).

 

 

  Wholly Owned Subsidiary Merger & Acquisition
  Criteria Weight Rating Score Rating Score
Time Related Speed of Operational Start          
Sufficient Payback Period          
Reasonable Amount of Administrative Procedures          
Money Related Initial Investment Required          
Cost Sharing          
Returns          
Quality Related Operational Integration          
Control          
Networking Opportunities          
General Feasible Barriers to Entry          
Satisfactory Risk Level          
Stability          
Long-term Objectives          


Date: 2015-12-17; view: 909


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