Current Generic Business Strategy



Identify and discuss the current generic type of business strategy of the Estia located in Australia.


Executive summary:

This report entails a strategic analysis of Etsia Health that is one of the most reputed old age care homes in Australia. The organization offers high quality of services to the customers. The management has recently planned about an innovative strategy that will enhance the target customer segment and increase the revenues significantly. The management has planned to develop and launch a mobile app that will help the residents stay connected with their family members living far away. The app will also help to record health and other data of the residents and the family members can keep track of those data or even download them for future reference. It will store and transfer health and other data of the inmates to their families which they can easily download or save in their portable devices. This app will be developed by a third-party software developer and launched in a span of three years’ time after testing and approval by Estia management. Hence, the management has conducted a feasibility analysis and found that the app and supporting functions have positive chance of becoming acceptable and profitable for the organization, its residents and their families. A feasibility analysis has been conducted and evaluation strategies have been developed using the Balanced Scorecard and Strategy Map. The results show positive market response and hence the management can go ahead with the new strategy. 


The report presents the development of one strategic initiative for one of the reputed organizations in the social care healthcare sector of Australia based on the analysis of the current business strategy of the organization. The chosen organization is Estia Health is one of the largest care providers for the old people providing its services in many places in Australia across New South Whales, Victoria and Queensland. The heritage of the company has been retained well since its inception 50 years back. Estia Health is highly dedicated to provide best in class and quality resources for the aged care services. The business leaders of the organization have been utilizing their expertise and knowledge in making the organization a much reputed and effective one. The Estia family has been gradually developed with the skills, knowledge, contributions of the employees, local residents, friend and families (estiahealth, 2018). The organization uses its local network in getting connected with the families and community as a whole. It provides luxury, comfortable and excellent quality residence to enhance the quality and capacity of care. The ambience of the residences of the organization is perfect for comfortable stay of the aged people (estiahealth, 2018). The success of the organization lies in its contributions towards vital business strategies. The analysis of the current business strategies has been done and on the basis of the findings the proposed strategic initiative has been offered for a three-year time horizon. The plan has been structured efficiently and has been discussed in details.

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Identification of current business strategy and discussion of generic type of business strategy-its value chain activities:

Estia Health provides assistance in an environment which is highly supportive and well-maintained. The ambience is highly adaptable and safe for the aged people. The residents need a comfortable home like ambience where they can enjoy excellent stay. The organization allows the entire community in the process so that the aged people can get the liberty and the chance to stay well. The homes of the organizations individually take care of the ambience and atmosphere of the home of Estia Health where the aged persons are taken ample care of and they are given the sense of belongingness and cordial ambience. The old persons also get to make new friends. The organization has built its value chain on the pillars of everyday quality living, wellbeing and lifestyle, nutritious experiences and respite care. 
The value chain analysis helps to identify the different steps operational steps through the organizations can create value in order to achieve competitive advantages. The internal processes of designing, marketing, producing, delivering and supporting the deliverables of the organizations are the parts of the framework of value chain as prescribed by Michael Porter. The value chain of any business organization is inclusive of the key and primary operations like inbound and outbound logistics, marketing, sales and service delivery. These fundamental operations of the business help the organizations to create value to the business. These all are meant for the satisfaction of the customers. The value chain also includes the employees and the entire human resource management operations. The support system activities which include the technology, procurement and development of the services are also integral part of the value chain. The value chain analysis of any organization is vital and essential. The value chain analysis not only helps the organization to identify the current strategic performance but also assists them to identify the gaps or the loopholes which need to be improved or rectified.
Estia Heath has been able to create value to itself and to its customers. It provides tailored care. The emotional and morale support that the aged people need is being provided by the organization. The organization ensures that all its operations and processes are directed towards the creation of wellbeing and lifestyle of the aged people. They are provided with nutritious experiences where professional healthcare personnel and caregivers deliver highest quality care. The clinical healthcare services of the organization are also of excellent quality and class. The organization provides every kind of medical and emotional care and support services so that the aged people do not face any issue. The inbound and outbound logistics of the company are well taken care of by the organization. The management and the executive teams of the organization take care of the efficient, reliable and effective network of supply chain operations and tend to maximise the quality. The management takes initiatives to reduce the cost of the transportation and other outbound operations (v-logistics, 2014).  The organization works with efficient supply chain partners and build cordial relationship with the suppliers. The outbound logistics is also taken well care of where the final service delivery becomes much effective and excellent. The majority of the operations in the inbound logistics are of highest quality. The organization never compromises with the quality of the services (Surbhi, 2017). 
The vertical integration is being used by the organization and that has resulted into increased supply-chain efficiency and cost-effectiveness. The management ensures the supply chain is well integrated and synchronized. The organization has also designed its marketing strategies with the help of the modern resources and technological know-how so that they could help the organization to spread the information and message to large section of target segment. The website of the organization has been designed and maintained in an effective way so as to increase its value and to enhance its competitive advantages.  The marketing strategies of the company have been formulated with the aim of reaching maximum target customers as they can. If an organization wants to increase its value chain then it has to enhance the ultimate value to its customers and to control entire operations of the organization. The Estia Health has controlled its supply chain operations so that it can reduce its costs and can make its operations efficient. The organization has taken every step in making the operations and final outcomes efficient. The value chain of the organization is contributed by its stakeholders (Ingram, 2018). The distributors, service providers, nurses, professional, manufacturers, wholesalers and the payers who are the customers influence the value chain of the organization.  The government policies and regulation being formulated by the Australian government have also significant part to play in the value chain of the organization. Estia Health has to abide by the rules and regulations of the governing bodies (Buttigieg, Schuetz and Bezzina, 2016). The policies of the government have also some impacts on the business operations of the organization. The value chain of Estia Health has been designed in such a way that it can deliver its services maintaining the same standards and by reducing the cost.
The current strategies have been studied and it has been observed that the organization has shaped its strategies of value chain based on the six-point model of Porter. The strategies are based on the following points:
•    The care is organized around the aged people not focusing the tools.
•    The outcomes of each patient are measured and the real-time outcomes are taken into consideration.
•    The care givers are paid individually for the care services they provide.
•    The entire care delivery is integrated across different facilities.
•    The local nature of the delivery of care is broken down.
•    The organization builds a suitable information technology platform (OKOYE, 2015).
The supply chain of Estia Health has been built up with many suppliers and the organization tries different designs of its products by using various materials so that in case the prices of any material gets increased the organization can shift to the other suppliers. Estia deals with the suppliers who are dedicated in providing quality wise best materials and on whom the organization can depend on. The dedicated suppliers not only supply excellent quality materials used for different products of the organization but also they assure that the cost of the materials is competitive. This is strictly followed by the organization as it takes into account the cost control so that it can provide the services and products as competitive prices and can offer some kind of discounts as demanded by the customers. The company also invests in innovation and that reduces the chances of customers taking the decision of shifting to its rivals. The new products or services are meant to meet the expectations of the customers and add value to them. The new product innovation has also helped the organization to control the bargaining power of its customers. The operations of the business are meant for the satisfaction of the customers’ needs and to achieve the strategic objectives and mission of the organization and to establish itself in a better position each day it operates (Sastry, 2014). 

One new strategic initiative of the organization: 

Estia Health is considered to be one of the most famed aged care homes in Australia that provides homely atmosphere to the residents. The motive of the organization has always been to offer the best possible care services to the people in the establishment. The elderly people who have found their homes in this institution are the ones some of whom have been neglected at their homes by the family and admitted at the care center because their families do not want to take their responsibilities any more. There are other residents also who have taken admission in this establishment on their own as they wanted to live a life free from the domination of their children and to enjoy the last few years of their lives in bliss and peace. Therefore, the basic essence of the organization is to offer empathetic, considerate and ethical care services to the elderly residents. The majority of the inmates is extremely happy and contended to live in the organization because they feel that they are loved and cared for adequately by the staffs, employees and the healthcare professionals those are associated with the enterprise. The organization has also been successful in enhancing its market share through effective growth.
Now, the management has decided to implement some new and innovative strategy that will make the services more convenient for the elderly customers those are seeking to find refuge in an organization that will offer them the care they deserve in terms of healthy and hygienic lifestyle and living that will make them feel at home though they are away from their homes. The management has planned to develop and launch a mobile app that will help the inmates of the house stay in touch with their families and interact with them though text messages, voice calls and video calls (Iyer, 2016). This is a great initiative by the management because it will make the residents feel close to their loved ones and they will be able to spend time with their near and dear ones virtually with the help of the modern IT and the ICT. The app will also enable the professionals to send health related data such as medical reports, psychological conditions, physical conditions of the residents directly to the family members on a weekly basis. The family members will also be able to use the app to get in touch with the professionals at the organization regarding any query. There will be a 24x7 online chat option where the family members can conveniently contact the customer service staffs and ask for any help they need. The app will also enable the family members of the inmates in storing their health related data such as weekly health reports like current health and emotional conditions, activities taken part in the week or any specific information that is useful. For this, the management will have to upgrade the current technological infrastructure and therefore significant investment has to be made in this sector. The directors of the organization have decided to offer the contract of app development to a reputed software firm that will undertake the activities such as developing the app with the prescribed features, offering demo to the company, launch a prototype version initially to observe and record the customer response and then finally make the launch of the app with the necessary modifications.
In the development and launch of the mobile app, the ethical, cultural and logical dimensions of the problem have been duly considered. The primary issue that has instigated the need for the development of the mobile app is that, many of the residents have wishes that they are able to stay connected with their families through the use of some modern communication technologies (SCHENKER, 2017). The management has received many such requests from many residents. The family members of the inmates have also suggested to the management in their feedbacks that they prefer to have a medium through which they can stay connected with their elderly family members residing in the house. Hence, the management has found logical justification and ethical angle in favour of developing this much demanded app for the residents as well as their family members. The cultural implications have also been considered before the plan of launching the new mobile app. This is because there is cultural diversity among the residents in the house that is the main factor for its goodwill. All the residents mix and interact with one another as one family, ignoring their racial, cultural and ethnic diversities. Hence, the strategic choice of launching the mobile app can be construed as logical, innovative, ethical and benevolent for the inmates of the house and their families.

Evaluation of suitability of the strategic initiative:

The management has evaluated the feasibility of the chosen strategic decision of launching the mobile app. It has conducted a survey with the residents of the house and also their family members in order to evaluate their observations on the need for the app (Kathooria, 2017). The majority of the residents and their families have voted in favor of the mobile app as they were happy and excited about the fact that they will be able to stay in touch with their dear ones in spite of being miles apart. Not only this, they can store their health related data on their smartphones or portable devices with the help of the app. This will help the family members stay abreast of the lifestyle and conditions of their parents of other elders residing in the house.  Hence, the management is certain about the need and perceived success of the app in ensuring enhanced customer satisfaction and thereby increases the growth and popularity in the market as the first mover in the sector to bring such an innovative idea and make it a reality. The management has conducted a SWOT Analysis that has reflected that the said proposal of the mobile app has a favorable market in this sector and can enhance the revenues and profitability of the organization manifold if the expected services are offered to the customers in terms of quality. The results of the SWOT Analysis are depicted as follows:

SWOT Analysis of proposed mobile app strategy:


•    Innovative concept that will facilitate virtual communication between the residents and family members
•    The residents will have more satisfaction and they will be happy and contended to stay for long in the house.
•    Health and other data of the inmates can be accessed by their family members and they can store such data for future reference in their smartphones or other portable devices.
•    There will be 24x7 customer service through online chat where the family members can post any query to the customer service executives.
•    The organization will gain competitive advantage in the market by becoming the first-mover with such an innovative technology.
•    The revenues and profitability will increase resulting in growth in market share.    Weaknesses
•    The concept is new and the success of the app will be uncertain.
•    It might be difficult for all the elderly residents to understand the operations of the app.
•    The cost of investment behind technological infrastructure developments will be too high.


•    The new app will offer the business opportunity to gain more customers through reputation and fame.
•    The customers will be offered with more effective and innovative services that will ensure more customer satisfaction.
•    The business might be expanded to other parts of Australia to capture more customers.    Threats
•    One of the threats can be the failure of the app in achieving its desired objectives if the majority of the residents fail to use them effectively.
•    The failure of the app will cost dear financially, as the investments would already have been made in its development
•    Changing health, social care, ethical and legal norms in the country might impact the business.
•    Rival organizations might come up with similar services and that might affect the business of the establishment.
The strengths and weaknesses are the internal factors and the opportunities and threats are the external factors impacting the strategic decision of the organization. The strength factors identified will help the organization find success with its newly proposed strategy of launching a mobile app that will help the residents of the house remain in contact with their family members. Therefore, it will lead to enhanced customer satisfaction and that will lead to growth and development of the organization and ensure competitive advantage and sustainability in the long run. The weaknesses identified consist of the probable limitations of the proposed plan which are the probability of many of the inmates not being able to use the app conveniently if the app is not extremely user-friendly. The next weakness could be the huge investment that the management has to incur to update the current state of the IT and other technological infrastructure of the organization to support the new plan. 
The new app service might offer opportunities in the form of increased revenues and profitability. It may also enhance the reputation of the organization coming up with an innovative concept that has not yet been launched by any other rival organization. This might enable the management to take decisions for expansion into other parts of Australia. The major threats those might impact the organization are the failure of the users to use the app effectively that will render the purpose of the strategic plan futile. The investments behind such app development are gargantuan and if it fails to achieve the desired outcome in terms of enhanced customer satisfaction and increased revenues, then it will be a big blunder for the organization and can affect its financial stability.
To be continued...

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