- Executive summary:
- Identification of current business strategy and discussion of generic type of business strategy-its value chain activities:
- One new strategic initiative of the organization:
- Evaluation of suitability of the strategic initiative:
- SWOT Analysis of proposed mobile app strategy:
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Identification of current business strategy and discussion of generic type of business strategy-its value chain activities:
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:
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:
SWOT Analysis of proposed mobile app strategy:
• 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 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 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.