Business Strategy and Healthcare Services - Essay Example

Business Strategy of the of the Introduction This study will focus on nursing. The publicly traded company selected for discussion in this paper is IHH health care Berhad. The companies within the network of IHH are well positioned in order to provide full spectrum of health care related services to its clients. The health care services offered by the concerned company include primary health care clinics, tertiary and secondary hospitals and rehabilitation centers. The organization developed its business through its organic growth and acquisitions. Its main aim is to provide superior level of strategic cooperation to its health care businesses. The concerned company believes that its leading market position and increasing scale will provide significant opportunities for enhancing its profitability. Overview The mission of the concerned company is creating a difference in the lives of the people through excellent patient care services. The organization abides by the ethics and codes of conduct in offering adequate service to its customers. It plays an important and vital role in ensuring wellness of its patients. It is considered as the second largest health care service provider in terms of its market capitalization. It operates in various Asian countries which include India, Singapore, Malaysia, Hong Kong, Republic of China and turkey. It also extended its services in UAE, Vietnam and Iraq.IHH focuses on quality, revenue and cost synergies in order to generate profitability from its operations. The concerned organization will be able to generate adequate revenue from its business in the future. It mainly aims in expanding and strengthening its business operation in the home and international market. The income statement of the company reveals that the total revenue generated by the company increased in the recent years as compared to the previous years (IHH healthcare Berhad, 2012). SWOT The strength, weakness, opportunities and threats of IHH in continuing its business operation in various markets are: Strength The concerned organization uses minimum labor cost, it established its prominence in the domestic market, it experiences high growth rate, it creates barrier of entry for the new firms. Opportunities The concerned company has the ability to generate an increase in its income level at a constant rate and it is likely to experience high growth rate and profitability in the future, it can gain competitive advantage over its competitors. Weakness IHH is likely to face intense competition in future since the market is very competitive Threats The threats encountered by the company are increase in labor cost and cost of raw materials, external business risk and unexpected problems associated with it (Yoshida & Tan, 2014). Company’s strategic objectives IHH is a leading health care provider which has its operations primarily in the CEEMENA region. The group operates and maintains different brands of healthcare facilities which have a name for themselves. As a listed health care operator, the group is the 2nd largest in the world in terms of market capitalization. Each brand in which the company has invested is recognized as a premium one that operates in the home market in which it is established. The market potential for each of the health care facilities is growing. As a health care group that is present in multiple countries and that offers distinguished services the strategic objective or goal of the company is clear. The strategic goal of the company is to ensure that it is able to achieve highest levels of strategic cooperation amongst all the healthcare businesses that the group operates under different names. Plans to meet the objectives The group has grown through the years by the process of organic growth and acquisition. Each of the medical facilities and brand that operates under the group has established themselves in the field. Each of the medical facilities under the group has established their impact on the communities in terms of life saving impact that they have made (Morais, 2009). Going forward the group aims that each of their business units should emerge and be committed to playing an important role in the markets in which they are located. The company is also focused on continuing the growth in the health care sector that it has achieved through the years. The group is committed to grow its business ventures within Asia and also beyond it in the future. The company also aims to achieve better cooperation amongst its different health care facilities so that it can leverage the combined strength of the different facilities. The group also aims to increase the profitability of the business through the process of achieving synergies in terms of cost quality and revenue (IHH health care Berhad, 2015). As part of this drive the company will focus on efficient sourcing and procurement of the consumables and medical equipment, sharing the project development expertise and best practices of project management within the group, cross referrals and the consolidation of the marketing program inside the group. Contingency plan and the viability of the plan In any business risk is an integral part and this is recognized by the management of IHH. The risks that are faced by the group are in terms of threat and opportunity. In recognition of the risks that exists the group is committed towards the development of a corporate culture that is risk aware. The group manages the risks that it faces and is committed to do so through the process of integrated risk analysis, and high quality risk management practices. The group has also implemented an ERM framework at some of the business units of the companies. In order to manage the financial risk the company performs hedging techniques. In the process related to financial instruments the company faces credit, liquidity and market risk. The company faces business risk when the company ventures into new project in Greenfield area. In order to mitigate the risk the group enters in into HMA which is a low risk way that the group uses to venture into a market (Ghoshal, 2011). Evaluation of strategy The strategy of the business and the plan of the business in order to achieve the particular strategy of the business are stated in the above paragraphs. The strategy that the business has followed over these years is quite successful and has resulted in the fact that the company has been able to grow significantly over the years. The company has demonstrated the success of the strategy through the fact that the company was able to achieve collaboration in between Singapore Malaysia and Turkey operations. Recommendations In going into the future it is evident that the policies that the company follows policies that can help the company achieve the strategic goal of the company. The policies of the company are quite good and are sustainable as is evident from the success of the strategies so far. It is also evident that that the company follows certain policies that are good for the long term growth perspective of the firm. The company has certain brands that are all reputed players in their respective businesses. This is also an evidence of the success of the company. Going into the future the company has to remember that the more than anything else it is the people of the company who can contribute to its long term success. So the company can implement training facilities for the people of the company and also indulge in research and development that can contribute to lasting legacy of the company. Conclusion IHH heath care providers are considered as the leading health service provider in Asia and eastern and Central Europe. It offers wide range of services and facilities to its clients. The concerned organization experienced strong financials in the recent years which indicates that the company is operating profitably. It is considered as the highly recognized brands with superior reputation for clinical excellence. It possess the ability of attracting its customers by providing high quality doctors and supporting medical staff. It focuses on various marketing strategies and business integration programs to enhance its profitability. References Ghoshal, D., (2011). Parkway looks at India for growth. Retrieved from http://www.business-standard.com/article/companies/parkway-looks-at-india-for-growth-111101900044_1.html IHH health care Berhad., (2015). Value proposition. Retrieved from http://www.ihhhealthcare.com/about-values.php IHH healthcare Berhad. (2012). Annual report. Retrieved from: http://www.financialreport.biz/File/AR/2013/6/3/5225%20-%200120202251812.pdf. Morais, R. C., (2009). In Pictures: The Globes Best Hospitals. Retrieved from http://www.forbes.com/2009/09/11/medical-emergency-abroad-evacuation-personal-finance-hospitals_slide_3.html Yoshida, W. & Tan, C.K. (2014). Emerging markets key to hospital operators expansion, CEO says. Retrieved from: http://asia.nikkei.com/Business/AC/Emerging-markets-key-to-hospital-operator-s-expansion-CEO-says. Read More