Turning Vision into Reality - Essay Example

ment of Opportunity We will provide high quality provider based delivery services at competitive costs to all our s through a highly qualified and trained staff. Turning Vision into Reality In order to succeed into a fast and competitive business environment, it is necessary that the organizations must grow and evolve over the period of time. This therefore requires that organization must bring in change in them. This organizational change can be brought into various ways and meas. Organizations can fundamentally changed the way they were doing business in the past including redefining its relationships with customers, suppliers, employees, competitors and various other stakeholders in the business. This can also result into the changes in the organizational structures of the company itself also. In order to transform vision into opportunity, it is necessary that that vision is first transformed to the functional level because it would otherwise be difficult to gather and motivate employees if something is forced onto them from the top. (Kotelnikov). Thus in order to convert the vision into opportunity, first thing which must be taken into account is the fact that whether the proposed change would be acceptable down the line and if not then what top management of the organization have to make it acceptable within the organization. The administrator’s decision to turn vision into opportunity is what leaders are known for. A good manager and a good leader always create opportunities. Since the competitive environment where low cost service providers are already there with good market penetration, it takes a lot of courage to turn the competitive threats into the opportunities for the organization. For a flexible organization, the strength of the organization is in the fact that how swiftly and quickly it can convert its vision into opportunities and opportunities into real time business actions to derive value for the organization. “The structure of an organization is the manner in which various sub-units are arranged and inter-related.” (FAO) Therefore considering the above action of the administrator to covert the vision into opportunity is going to have a strong impact on the organizational structure. There are various organizational structures ranging from line structures to more complex organic structures of the organizations. From the given information, it seems that the organization has a functional structure and it is going to have most impact with the decision of the administrator to go for the provider based services. Since this kind of organization has to rely on the technical skills of its various staff therefore a functional structure would be most affected. In order to assess the impact of that decision, it is very important that we must also understand the internal dynamics of the business. From the given information it does not seem that the organization is too complicated and has many organizational layers in it. However, it must be noted that given the complexity of the competition, the organization may need to change its organizational structures in order to be more flexible and adaptive in nature. Environmental Factors In order to assess the environmental factors including the competition and various risks that business may face, it is very important that we must take into account various important variables which directly and indirectly have the impact on the organization. Firstly, we need to understand our market. The population of our area is increasing with more employers are also relocating to this area providing a good opportunity to provide services which are of high quality. However, the increased demand through above two factors also need to be corroborated with the fact that whether the customers i.e. patients are willing to avail high cost portable services or whether they would stick to the low cost service providers in the area? As discussed in the case that there has been efforts to reduce the payments for the MRI and focus in on the cost reduction. In the view of the above, it seems that the general trends in the market are towards low cost and the competition is also directed at providing low cost services to patients. However, since this company is aiming to provide high cost services which is backed up by high quality services therefore company has to create its further Unique Selling Proposition points in order to successfully lure the patients towards using their services. This is important in the sense that we are unsure whether the company will be able to withstand the low cost service providers or whether the company in order to compete would also start to serve the customers at low cost and probably low quality? The above fact becomes more complicated especially with the fact that center has to hire highly trained staff and considering the constraints on the availability of qualified staff, it is very likely that the qualified staff and doctors would be hired at high cost raising the overall cost of conducting the transaction for the patient. This is very important consideration because since the quality of the services is too high therefore the overall cost of delivering the services would increase which would put pressures on the company to either go for cost cutting measures or compromise on the quality of the services rendered by it. The most important benefits which organization is going to enjoy out of the proposed plan would be to dominate the market in terms of providing quality services. Secondly the organization would be able to attract good human resource to its centre which could prove a unique selling proposition for it however there is also a flip side to the same as retaining the highly skilled employees ca be a difficult task for the center. Overall, competition, high cost human resources and the consumer preferences would push the center to go for the low cost services In the future. Human Resource Initiatives In order to capitalize on the opportunity, the center needs to attract highly skilled staff in order to successfully provide this service. For doing so, first they need to revise and upgrade their compensation system in order to attract the qualified staff. Further this is also important due to the fact that the organization in order to retain those employees will need to regularly upgrade its incentive schemes so that it do not face high employee turnover. Further, in order to capitalize on the existing opportunity, center need to impart on training to its existing employees so that it must have a readily available pool of human resources who not only can meet emergency services but also can prove a suitable back up in case the other staff leaves the center. This will not create motivation into the existing employees but will also serve as a strategic move for the organization to retain and have trained internal staff to meet the increasing work requirements. Further organization also need to understand that it is up against a low cost competition therefore putting in strategic HR practices into place, it can greatly retain and attract qualified staff however, it also need to check in the HR costs as it may render it out of the competition if went high. Budget Profiles Line Budget for Personnel Cost Position Amount Radiologist $ 500,000/- Additional staff $ 60,000/- _______________ Total $ 560,000/ (Including cost per FTE) Functional Budget Description Amount Radiologist $ 500,000/- Maintaince & Warranty $ 30,000/- Rent (20x5000) $ 100,000/- Additional staff $ 60,000/- Other Operating Expense $ 50,000/- ______________________ Total $740,000/- Total MRI Procedures 10,000 Total per MRI Procedure = $74 per procedure Total Clinic Budget Total functional budget = $ 740,000/- Cost of Machinery = $ 1,200,000/ ______________ Total $ 1,940,000/- References FAO. "Structure of an organization." 2008. FAO. 22 May 2008 . Kotelnikov, Vadim. " Corporate Vision, Mission, Goals and Strategies: Traditional and New Approaches to Corporate Vision and Strategic Intent Formulation and Use." 2008. www.1000ventures.com. 21 May 2008 . Read More