External Analysis of XYZ Aged Care - Case Study Example

Table of Contents External Analysis 2 PESTEL Analysis 2 Industry Environment 7 Stakeholders 8 Anticipated changes 9 Key Success Factor 11 Internal Analysis 11 References 13 External Analysis Understanding the external analysis of XYZ Aged Care will help to understand the manner in which the external environment influences the working of the organization in the industry and strategies that XYZ Aged Care needs to formulate to ensure proper growth of the organization. This will help to draw an understanding of the different areas that influences the working of XYZ Aged Care and working on which the performance can be further improved. PESTEL Analysis The PESTEL analysis is a form of external analysis which will help to understand the influence of external factors on the working of an organization and the strategies that have been crafted to deal with those (Chew, Cheng & Petrovic-Lazarevic, 2006). The PESTEL analysis is as follows Political Australia has a stable government in the centre which has permitted different businesses to flourish. Stability of the government has resulted in abundant time for the reforms to be passed and put in place. Also, having a democratic form of government has ensured that the people are heard and the government has ensured special previleges for the elderly. The government has ensured safety and proper health facilities as one of the core constituents and looked towards developing their facilities accordingly. The September 11 terrorist attacks have raised concerns and made the government more circumspect on different activities which are operating around the country but strong policies to counter check those has ensured that the government is able to take vital decisions. The government has also looked towards making rules and opening the economies which has ensured more foreign investment flows into the country and has ensured better health care facilities for the elderly. Strong government and the ability to take tough decisions have helped the economy to flourish and special consideration being given to the elderly has helped to ensure rules drawn in favor of them (Chew, Cheng & Petrovic-Lazarevic, 2006). Economic Australia has been recently hit down by the economic recession but is slowly recovering from the present scenario. This has affected the purchasing power of the population and the social customs in Australia where people look to live independently away from their parents have increased the risk for the elderly. Already, the present economic condition is making people loose job and in addition to it ensure that the elderly are provided with the required meal have made more people look towards aged care facilities so that the burden can be passed away. The problem has been further increased due to rising inflation which has resulted in reduced bargaining power of money and made people postpone or alters their eating habits (Cateora, Mary & Graham, 2009). This has made families take decisions where the elderly are being shifted to aged care facilities. The present economic conditions have made it difficult for families and have thereby affected the manner in which business was conducted and has affected the way in which work was carried out. Social Australia is witnessing a change in social outlook as people in this generation believe in nuclear families and wants to live independently. Both the male and female partners are working and looking for some private space between their livings. This has altered the life style and made people look towards a different set of principles. The change in the outlook has also affected the purchasing habits and has made the population follow a modern outlook (Czinkota & Ronkainen, 2004). The change in social outlook is further witnessed by the growth of Y generation which looks to follow the modern lifestyle and look towards trendier products and different lifestyle. This has thereby resulted people looking towards a different set of principles which has increased the growth of old age homes. This has been compounded by the change in the mind set of the people. The change in the mind set and the outlook of people has brought about a change in the living standard and has increased the dependance on old age home for the elderly. Technological Australia has witnessed wide spread radical changes on the front of technological changes. The country has been able to absorb and accept the changes readily which has thereby helped and ensured that better facilities are provided to the elderly. Better technology has ensured better supply and demand of products which has helped different industries to flourish and gain the required momentum in the market. The widespread changes on the technology front have resulted in better development of facilities and have helped the old age homes to flourish. Technological advancement has helped to bring major changes in the way in which business was carried out. This has helped to bring major changes in the way in which the old age care facilities performed. Development of technology has ensured that the elderly people are provided more comfort and by ensuring a mix of technology and human involvement the effect for elderly increases. This has made more and more old age home come up in Australia and the manner in which the social outlook is changing it will result in better opportunity for business in this sector. Technology has permitted that the elderly living in old age homes are looked after. This has ensured that the best in house facilities are provided which ensures comfort and an opportunity to ensure safety. Technology has also developed on the front of safety and has ensured that the old home facilities have better safety measures. This has helped to save life of many elderly people living in the old age houses and has ensured a proper integration of technology with the living culture. Environmental This is an area where Australia has looked towards developing their business environment and ensuring that all businesses houses look after the environment has ensured better home care facilities and improving environment. Old age home have a huge role in this matter as the old age home are constructed where the place is conducive for growing more trees. Also, the elderly looks towards performing their basic functions and after that looks towards planting different sapling so that the environment is protected. It has also been noticed that the old home care looks to make it a point that the elderly looks after the environment both by planting trees and keeping the surrounding environment clean. This has helped to develop a strategy where people belonging to the upper segment of the age contributes towards the environment and looks after the society. This is an area where Australia has laid emphasis on and by delivering on the required standard set by the government will help to improve the basic care facilities for people. This will ensure that all the different parts of the society contribute towards the society and help in the improvement of the society and preserves the environment. Legal The Australian government has framed rules and regulations which all players performing in the industry have to adhere to. The government has different rules and license agreements for different business but it is mandatory to ensure that the business follows the prescribed rules and regulations (Korey, 2006). The importance of this magnifies when human life is involved as having a proper legal environment ensures that the organization performs according to the set standards. The government has framed rules for the old age homes. In addition to it the government has ensured that some of the basic amenities which are required for living is provided. Food and shelter has been laid stress upon and measures have been taken to ensure that it matches international standards. Along with it the government has looked to ensure that the old age home have the required license and are involve in a proper paper work which highlights that the elderly people are being looked after and utmost care has been taken with regard to health, food and sanitation. This has ensured that the legal formalities are followed to and has helped the different businesses to be able to maintain the required standards. Industry Environment The old age care industry is growing rapidly and with ageing population the growth rate is bound to grow. With people ageing the demand for old age care facilities is bound to grow as people today believe in nuclear families and look to live all alone. The magnitude of the problem magnifies as both men and female members of the family are working which has thereby increased the demand for old age homes and will further grow. Different reports also present the fact that the population of the elderly is bound to grow and Australia as a country will have a higher section of their population ageing in the next 20 years (ACSA, 2012). This will transform into an opportunity for the different provider to start new venture in this direction as 40% of the old age care facilities working in Australia were profitable (Aged Care, 2012). The share of percentage is bound to grow in the coming years as more ageing population will ensure a better opportunity to cash in. This is witnessed by a finding which states that the elderly population is the age bracket of more than 40 will constitute around 25.3% by 2047 and the percentage of population in the age bracket of more than 80 will be 5.6% (Age, 2012). This shows that the growth rate in the population of elderly is very high and will make more and more new old age care facilities develop. This will result in a large section of the Australian population to be ageing and will thereby increase the importance of the government in ensuring that proper facilities are provided so that the ageing workforce can be accommodated. The problem compounds for Australia as it has been identified in 2007 that one out of seven people aged 65 years and above are Australian and this is further bound to leap forward due to more people from different ethinic community are going to follow soon (Age, 2012). The following table helps to sum up the projection growth rate and population of the elderly in Australia (Age, 2012) This highlights that the elderly population of Australia is bound to grow and will provide an opportunity for the different old age home provider to bank on. Since, growth in population will translate into competition and higher profits it provides an opportunity for the different home care provider for the elderly to improve their service and brand image so that more and more elderly look towards them. Stakeholders The key stakeholders in the old age home involve the families of people who have their elderly people staying in the old age homes. The stakeholders due to increasing independence and nuclear families looks towards ensuring that the old home care looks to provide the best care facilities. The stakeholders anticipate that in the future due to growing demand for more old age home the facilities provided will be better and old age homes will compete with each other based on service. The stakeholders anticipate that along with the basic facilities of food, shelter, sanitations, health and safety their family members will be provided with some sort of recreational activities (Jeannet & Hennessey, 2004). The stakeholders also expect that the elderly living will be exerted minimum pressure and will be allowed to carry on their daily activities in a proper way. Along with it the elderly won’t be harassed and will be provided with the basic comfort for the price which has been paid by the families. The stakeholders look towards a commitment from the old age homes that their family members residing at their place will be provide a comfortable living and if any problem arises then they will be contacted at the earliest. Further, the stakeholders want that the old and elderly are provided the required respect and treated with dignity so that they can spend their rest of the life comfortably. Thus, the stakeholders look towards having the basic amenities and safety for their loved and beloved ones. Anticipated changes The growth in the population of the elderly population provides the widespread changes the aged care providers have to deal with. The growing population shows that the population of ethnic community is bound to grow faster and with 25% of the world population ageing and being in the age bracket of more than 40 years will require that the provider of health care facilities revolve and make the timely changes. The changes are also bound to be witnessed in the direction of the service provided to the elderly people living in the old age home as increasing competition will make it important to differentiate oneself based on service (Kramar, Bartram, Cieri, Noe, Hollenbeck, Gerhart & Wright, 2011). This will make service a priority and organizations that are able to match it will be able to ensure profit from the business. This has been highlighted in the anticipated changes in revenue and growth of elderly people in Australia which has been shown below (Age, 2012) The growth in the population of the elderly highlights that the expenditure both for the government and the other health care facilities is bound to grow. This will have to be matched by the changes in service and proper facilities so that the elderly person finds the comfort of their house and are ready to spend the rest of their life in the health care facility. This makes it important that the facilities are improved and at the same time the manner in which the elderly population is growing is anticipated so that there are no gaps and the government is able to provide the basic amenities to all. Key Success Factor The key success factor for old age home is to provide quality service and ensure proper food, shelter, sanitation, health and safety to the old and elderly people. Since, people are involved in the old age industry and the different players need to provide proper service so that the old and elderly people residing at the old age home are happy. This makes it important that service is laid importance to as growing competition and increase in the people belonging to the old age bracket has made it one of the key success factors which the different players need to look into (Khoury, 2004). Further, since different people look to measure different service based on different parameter so the old age home needs to ensure that the service rendered matches the global standard. This makes service as the most important parameter and organizations that are able to deliver quality service are able to grow and ensure better opportunities of business in the future. Internal Analysis XYZ Aged Care has a strong resource base and has been performing since over 32 years has enabled them to bank on their core capabilities to ensure better services. Since, the aged care facility is aimed at ethnic community and the population of the elderly in the aged group is increasing which thereby ensure that they will be able to use their resources effectively in providing quality service. XYZ Aged Care has a strong base of internal employees capable of providing quality service and developing an organizational culture in such a way that it results in maximum efficiency for the workforce. Having a long term association in the field of aged care facility and providing quality service has ensured that the firm has used its capabilities and resources in the most effective way. This confronts with the key success factor of the organization which is to provide quality service. Since, it involves human so providing maximum satisfaction and ensuring proper health care, fooding and other facilities will ensure that they are able to meet with the key success factor and deliver quality performance to the elderly people. XYZ Aged Care thus has ensured that they have merged the key success factor with the capabilities and resources of the business. This have ensured that XYZ Aged Care have worked on their strengths and identified the different areas that they need to work on so that they are able to ensure proper services and achieve the purpose with which the business was started. References Age. 2012. Future Demand for Aged Care Facilities. Retrieved on February 28, 2012 from http://www.pc.gov.au/__data/assets/pdf_file/0010/83386/05-chapter3.pdf Aged Care. 2012. Aged Care. Department of Health & Ageing, Australian Government, Australia ACSA. 2012. ACSA National Report. Retrieved on February 28, 2012 from http://www.agedcare.org.au/news/acsa-national-report Chew, M.M.M., Cheng, J.S.L. & S. Petrovic-Lazarevic, 2006. Managers’ Role in Implementing Organizational Change, Journal of Global Business and Technology, Vol. 2, No. 1 Cateora, P.R. & Mary, C. G. & Graham, J.L. 2009. International Marketing, 14th edn. Irwin:McGraw-Hill Czinkota, M.R. & Ronkainen, I. A. 2004. International Marketing, 7th edn. South-WesternPublishing:Australia. Jeannet, J-P., and Hennessey, H. D. 2004. Global Marketing Strategies. 6th Edition, New York, Houghton Mifflin Company Korey, G. 2006. Multilateral Perspectives in International Marketing Dynamics. European Journal of Marketing, 20 (7), pp 34-42 Khoury, S.J. 2004. Countertrade: Forms, Motives, Pitfalls and Negotiation Requisites. Journal of Business Research, 12, pp 257-270 Kramar, R., Bartram, T., De Cieri, H., Noe, R., Hollenbeck., J, Gerhart., B, and Wright, P. 2011. Human Resource Management: Strategy, People, Performance, McGraw Hill: Sydney. Read More