Financial Analysis - ExecHealth - Essay Example

Financial Analysis Executive Summary The strategic planning process of a business aims at navigating a business in the strategically right direction.The strategic planning process involves the design of the strategic planning and the implementation of the strategic planning activities. The strategic planning implementation of ExecHealth which is a healthcare club is discussed in the report. The requirements for supporting the implementation of these strategies in the business are identified and explained. The steps involved in the implementation process are discussed along with the corporate strategies required to facilitate the development of proper planning for the health club. The report is concluded with suitable conclusion about the strategic planning process in ExecHealth and recommendations given to ensure that ExecHealth can become successful in the proper incorporation of the strategic planning in the business. Contents Executive Summary 2 Contents 3 Introduction 4 Discussion 4 Conclusion 10 Recommendation 10 References 12 Introduction Strategic planning involves identifying a varying range of organization processes that should be implemented in the organization to set the direction for the organization and take decisions according to these future plans. The strategic planning process provides a map for the organization referring to how the organization can achieve its goals and objectives in its functioning in the future. The strategic planning process involves deciding the future direction of the business, development of proper organizational strategies for the business, making decisions related to these strategies and implementing these strategies and decisions in the working of the organization at all levels. The development and implementation of strategic planning is critical in the healthcare industry, especially in the evolving global economic perspective. Discussion Implementation of the strategic plan is the most critical and complex part involved in the strategic planning process. ExecHealth should focus extensively on different aspects of implementation of the strategic plan as devised by the club. Proper corporate planning would be much necessary for the successful implementation of the strategic plan (The Pennsylvania State University 2004: 4). The corporate planning process of ExecHealth should consider all the different factors like Human Resources of the organization, resources and capabilities of the organization, needs and demands of the corporate clients, the existing competition level in the market, The company should endure that it has a far sighted vision related to the implementation of the strategic plan and it does not lose sight of the ultimate vision at any phase of the implementation process (Tracy 2000: 44). The strategic plan of ExecHealth includes achieving more number of corporate clients in their membership base. This plan has been made on the basis of the fact that the different companies across all industries are becoming more concerned about the health of their employees. The well-being of the employees has been identified as a major supporting factor in improving the financial and operational position of the corporates. ExecHealth wants to focus on this fact and acquire various corporate clients who would appoint ExecHealth as the company to look after the health and wellness of the employees. The corporates are trying to manage their human resources effectively. Among the various benefits provided by the corporates, the benefits of healthcare support and guidance are also provided to the employees (Zuckerman 2005: 412). This is in recognition of the fact that the human resource base is the most powerful asset of the corporate companies. Therefore, ExecHealth should focus on increasing the awareness of the different corporates across various industries about the importance of providing healthcare and medical benefits to their employees (Hambrick and Fredrickson 2005: 51-62). ExecHealth should also focus on the development of proper infrastructure, equipment and gymnasium and other facilities to ensure that they maintain a competitive edge over the other health and leisure clubs located in the area. ExecHealth has already established a fully equipped gymnasium with latest machineries and equipment for exercises. The company should also focus on the recruitment of proper personnel for handling and monitoring the different activities in the gymnasium. ExecHealth should also appoint efficient trainers who are well recognized in the industry. Apart from these, ExecHealth should also appoint dieticians and medical practitioners to guide their clients properly and effectively. The use of standard equipment in the gymnasium and proper trainers and training methods should be done in order to implement the strategic plan of ExecHealth to tap in more number of corporate clients. In order to increase the number of memberships in the health and leisure club, it is critical for the club to maintain efficient and well trained staff as well as proper internal management of the club. ExecHealth should focus on appointing the right people for the right jobs and ensure that the club operates smoothly and provides maximum support to the customer base. Also, the staff should be motivated to put in a high level performance to acquire more clients. The setting up of the brand reputation in the corporate world would ensure that more clients come to know about ExecHealth and become interested to provide their employees with the benefit of joining this health and leisure club as a part of their job benefits package. The company should measure and monitor the strategic plan regularly to ensure the successful implementation of the plan in the business processes (Argenti 1999: 90). ExecHealth should measure the level of implementation of the strategic plan by assessing the key financial indicators from time to time. These key indicators of the progress in the strategic plan implementation process include the number of customers attained, the percentage margin, market share, return on investment, employee satisfaction, customer satisfaction, employee morale, annual revenue and so on. The most applicable key indicators should be used to understand the viability of the strategic plan (Lorenzen 2006: 22-29). ExecHealth should also monitor and evaluate the strategic plan implementation on a periodic basis. The level of activity should be monitored on the basis of monthly or quarterly progress reports. Also, ExecHealth should ensure holding strategic management meetings including the management and the employees to understand if the company is in the right direction in implementing the strategic plan and achieving the strategic objectives (Patrick, Burkhar and Reuss 1993: 214-216). . The company should also use effective sales and marketing tools to communicate the values and objectives of the health club to its corporate clients and other members. The review of the feedbacks taken from the customers and from the clients would ensure that the company can evaluate the process of implementation of the strategic plan within the business processes (Kono 1994: 212). ExecHealth should also start maintaining milestone achievements in the strategic plan implementation and create suitable awards and recognition system for the achievement of objectives and for focusing on the implementing the strategies (Lusch 1997: 80). Using strategy reviews and a recommendation system by the senior management and the employees would ensure that the implementation process of the strategic plan is properly reloaded and reviewed (Argenti 2004: 116). Linking the strategic plan with the daily operational activities of the business and tracking the progress and effectiveness of the strategic plan is also critical to ensure that the implementation of the plan is done smoothly in the business of ExecHealth. The strategic planning process is critical in this stage of the business of ExecHealth. The revamping of the gymnasium and the investment in new equipment has impacted the financial position of the organization and ExecHealth is in need of a partner for its aim to expand the operations of the business (Hanes 2004: 68-70). Therefore, it is critical for ExecHealth to align its strategic changes to the financial resources and capabilities of the company as well. The decision making process regarding the implementation of the strategic plan should be done on the basis of the organizational and financial position of the business (Allison and Kaye 2005: 119). The company should use effective decision making and implementation tools to ensure that the strategic objectives and vision of the company are achieved. Implementation of the strategic plans is critical as it is difficult to introduce new techniques and strategies in the business process (Holterhoff 2013: 14-16). The business and the employees as well as the senior management should develop enough flexibility and adaptability to absorb the new strategies and planning for the business. ExecHealth aims to change the attitudes of the people towards corporate fitness by providing attractive packages for the corporate clients. Therefore, ExecHealth should focus on employing efficient personnel in the frontline management (Ginter, Swayne and Duncan 2012: 60-62). Also, ExecHealth plans to implement the strategy of inviting the corporate clients to come to the gymnasium and club and view the facilities provided in the club so that they are motivated to avail membership of ExecHealth. To ensure that the corporate clients are impressed by the facilities, personnel and equipment provide by the health and leisure club, ExecHealth should train the employees properly, communicate the goals and strategies to the employees clearly, build proper setups for the gymnasium and other areas of the club so that a very good image of the club is created on the minds of the corporate clients who come to visit the club (Olsen 2012: 56). Motivating the employees and create effective performance management systems would critical for the successful implementation of the strategic plan (Mckeown 2012: 180-184). The strategic plan encompasses the acquisition of major corporate clients in the West Midlands area. Therefore, ExecHealth should focus on building an efficient team to communicate effectively with the corporate clients. Increasing the value creation for the customers and providing a high level of service would be critical in deciding the proper implementation of the strategies of the company. The company should focus on inspiring and motivating the different employees of the club including the trainers and frontline employees and amply incentivize them so that the employees are oriented towards implementing the different strategies in the business as devised in the strategic plan of the business (Steiner 2008: 20-21). To ensure that the employees try to implement the different strategies into the day to day activities of the health and leisure club, the senior management should clearly communicate the strategic vision and goals as set in the strategic plan. A proper level of transparency and communication is mandatory to make the employees actively participate in the strategic planning implementation process (Bradford and Duncan 2000: 46). The participation of the employees is one of the most vital factors which if implemented properly would ensure the success of the strategic plan. The company should find creative methods to motivate and inspire the employees. The company should try to create an impact on the mind of the employees regarding the fact that strategies are a priority for the organization. Therefore, ExecHealth should employ steps for positive and negative consequences for the employees regarding the implementation of the strategies in their daily business activities (Fahey and Narayman 2006: 45). ExecHealth should also make attempts to share the strategic plan within the business as well as outside of the business to all the stakeholders. The sharing of the strategic plan should be done on the basis of detailed plan of action, brochures and the internet. The information should be updated during the implementation process to understand the progress of the implementation process. The implementation of the strategic plan needs the implementation of change within the business. Therefore, ExecHealth should try to engage more number of employees to ensure better adoption of the strategies in the business activities. The involvement of the employees would ensure that the employees feel more motivated and empowered to implement the business strategies as devised in the strategic plan. ExecHealth should initiate proper training and development of the employees to build up the internal operations of the business based on different skillsets with an objective to achieve the core values and vision of the business. ExecHealth should do a proper employee succession planning to understand the viability of the implementation process of the strategic management plan for the health and leisure club. Also, examining the organizational structure, capabilities and resources to understand how they would support the strategic planning of the business is a significant step in the implementation of the strategic plan (Fogg 2004: 451-452). Conclusion The process of implementation of the strategic business involves a number of key steps like effective communication, milestone setting, alignment of business processes, periodically monitoring and reviewing the implementation process and engaging the employees in the implementation process. ExecHealth should focus on all these key aspects to implement the plan successfully in the business which will help it to expand its business through both organic and inorganic expansion processes. The development and implementation of a robust strategic plan would help ExecHealth to create and implement necessary techniques and processes for improving the future business, coordinating and allocating the resources optimally, prioritizing the goals and objectives and maintain sustainability and viability of the business in future. Recommendation ExecHealth should focus on aligning the strategic planning process with the existing resources and capabilities within the business. The financial viability of the strategic plan should be considered along with the streamlining of the strategic plan with the corporate objectives and strategies of the business. The management of the people resources in the business should be done carefully to motivate and inspire the employees of ExecHealth to strive for the excellent incorporation of the strategies within the day to day activities of the business. The implementation of a strategic plan in the business should be considered as a continuous process and monitored and reviewed on a periodic basis to understand the level of achievement attained by ExecHealth in the proper implementation of the plan within the business. Also, setting milestones and communicating with the different stakeholders of the business are key drivers that would influence the successful incorporation of the strategic plan in the business. References Allison, M & Kaye, J. (2005). Strategic Planning for Organizations, Second Edition. New York: John Wiley and Sons. Argenti, J. (1999). Corporate Planning - A Practical Guide. NSW: Allen & Unwin. Argenti, J. (2004). Systematic Corporate Planning. New York: Wiley. Bradford, K. & Duncan, V. (2000). Simplified Strategic Planning. Sydney: Chandler House. Fahey, L. & Narayman, K. (2006). Macro environmental Analysis for Strategic Management. London: Routledge. Fogg, C. D. (2004). 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