Strategic Plan for Business

The business deals with the supply of health care products. A strategic plan requires putting various aspects of the business and its environment into consideration. This strategic plan begins by pointing out the business strategic intent, which incorporates the mission, vision, and values statement. This is then followed by an environmental analysis, which focuses on the business internal and external environment. The strategic plan then looks into the strategic priorities and programs. This entails the key areas that the business should focus on. The final aspect the strategic plan looks into is the business strategic goals and objectives.

Strategic Intent

• Mission

The business mission is to play a major role in improving health care by supplying quality and affordable health care products. The aim of doing so is to improve health care from the beginning of the care cycle.

• Vision

The business vision is to grow to become a world-leading supplier of quality and affordable health care products. As such, the business aims to become a reputable international business in the health care industry.

• Values

The business works towards improving lives by ensuring customer satisfaction, employee satisfaction and environmental conservation. As such, the business works towards attaining sustainable development.

Environmental Analysis

• Community Description

The business operates within the healthcare industry. Its aim is to ensure there is a continuous supply of medical equipment to hospitals, nursing homes as well as residential homes. The business has a fixed community, which it serves. The community it serves is however very sensitive. This is because it is involved in saving and improving lives. Additionally, the community it serves mainly focuses on service delivery and not profit maximization. As such, it focuses on quality more than cost.

• Market trends and implications

Over the past decade, there has been an increasing demand for quality care. Stakeholders in the healthcare industry have been pushing for total quality care management. This means ensuring that quality is observed in every step of the care process, which involves the supply of quality products (Bryson, 2011). To help mitigate the issue of cost many medical insurance companies have developed which offer different packages of cover. Medical insurance has been made compulsory. This has provided the healthcare industry with adequate resources to purchase quality products.

• Consumer profiles and demographics

The business has three categories of customers namely hospitals, nursing homes and residential homes. Each of these customers has their demands and preferences. Hospitals require complex equipment, which are expensive. Nursing homes require less complex equipment than hospitals. Of the two, hospitals tend to purchase more products than nursing homes. Residential homes on the hand only purchase simple products, which they use to constantly assess their health vitals such as blood sugar and blood pressure levels (David, 2011). Hospitals and nursing homes have fixed locations but residential homes are located all over the region.

• Health needs of the community

The community has numerous health care needs. To start with, the community needs quality health care. The first step towards satisfying this need is ensuring there is supply of quality products. The second is the need for affordable healthcare. This need is mainly for members of the community who are not insured and those with low-income. Besides, there is the need for specialized care for those with special needs such as persons with disabilities (Steiner, 2010).

• Competitor Analysis

The business faces competition from other healthcare supplies companies. The main competitors have been in the industry longer and therefore have an upper hand in terms of their relationship with the hospitals and nursing homes. They have also marketed themselves widely to the public which makes them a preferred choice. Some of these competitors have grown to become big companies which enables them to enjoy the economies of scale (Steiner, 2010). Subsequently, they are able to supply the products at a lower cost.

• Major stakeholder data and analysis

The main stakeholders of the business include the manufacturers, the government, insurance companies and the consumers. The manufacturers are the producers of the health care products. The business has to be in constant communication with the manufacturers to ensure a continuous supply. The government acts as the industry regulator. It ensures that the set policies are followed and the professional code of conduct is adhered to (David, 2011). Insurance companies are responsible for covering the medical cost of patients. The three types of consumers are the main driving force behind the business.

• Potential Technological Changes

The healthcare industry is subject to continuous technological changes. In a bid to ensure improvement in the provision of care, medical practitioners are always working towards finding advancements in healthcare provisions. The medical practitioners conduct research on how to improve the medical equipment and drugs. These improvements are achieved through technological advancements. The manufacturers ensure they use the latest technology to ensure maximum positive output. As a result, the supplies business must ensure it is flexible to accommodate the latest technology.

• Key Quality Indicators

In this business, there are five main key quality indicators. The first indicator is safety. Medical product supplied must be safe for use. They should not be potentially harmful to the consumer. The second indicator is efficiency. This means that the product should ensure the consumer obtains more output from a lesser input. The third indicator is patient and staff experience. This indicator points out that the products should have ease for use even for those who are unskilled and lack experience. The other indicator is timeliness. The product should have a clear timeframe for its use. The final key quality indicator is effectiveness. The product should be able to satisfy the intended need as required (Bryson, 2011).

• Critical Legal Regulatory Issues

The government is the main regulator in this industry through various agencies (Steiner, 2010). There are also independent bodies which operate as regulatory agencies. Additionally, there are unions within the industry which also act as regulatory bodies. These regulators are critical players in the industry. They ensure that all stakeholders abide by the law and set policies. It ensures they all perform their roles. Additionally, it protects them from being exploited. As such, the business should ensure it abides by all the legalities and maintains a close relationship with the regulatory bodies.

• SWOT analysis

The main strength of this business is quality supplies and operations. The business works under the aspect of total quality management. This distinguishes it from the competitors. The business main weakness is lack of adequate resources to expand the business to effectively compete with the competitors. The main opportunities include the many emerging health facilities within the country. The business can also market itself more to supply residential homes. The main threat is the major suppliers in the industry who have a long lasting relationship with most of the customers.

• Driving Forces

The business has various driving forces. One of the driving forces include customer satisfaction. The business works towards ensuring the products supplied meet the customers’ expectation. Another driving force is the organization culture which is clearly stipulated in the business mission, vision, and culture. Also, employee satisfaction is among the key driving forces for the business. In its operations, the business puts employees into consideration to ensure they are comfortable and satisfied so as to obtain maximum output from them. Additionally, being a business, it is driven by the desire to maximize profits (Steiner, 2010).

Strategic Priorities and Programs

Areas of key focus

There are two main areas of key focus. The first area is quality improvement (Bryson, 2011). As such, in order for the business to improve, it focuses on attaining a constant continuous improvement in operations and products supplied. The second area is customer retention and market penetration (Bryson, 2011). This works towards ensuring the business grows its customer base which will subsequently ensure the business grows.

Rationales behind these areas

As earlier pointed out, one of the consumer needs is quality health care which begins with supply of quality products. This is achieved by making use of the latest technology. Customer retention and market penetration is essential since consumers are a crucial driving force behind the business. This priority is attained by developing the business brand and using effective market penetrating techniques such as mergers and partnerships (Bryson, 2011).

Strategic Goals and Objectives

New goals and objectives

One of the new goals and objectives is to increase the company’s marketing force so as to increase the business customer base by 15% in the next one year. Another one is to work towards continuous quality improvement by sing the latest technology. This will give the business competitive advantage (David, 2011). Thirdly, the business will focus more on customer feedback so as to ensure customer satisfaction is achieved. Additionally, it will capitalize more on market penetration into new markets using various techniques such as mergers, acquisitions, and partnerships.

Individuals responsible for each activity

The Chief Executive Officer is responsible for overseeing all business operations. All other top managers report to him or her. The Chief Financial Officer is responsible for managing the business financial inflow and outflow. The head of human resource is responsible for mobilizing labor task force for the business and empowering them to gain the most out of them. The Chief Procurement Officer is responsible for all purchases by the business as well as disposals. The head of marketing is responsible for maintain good relations with the consumers, ensuring there is customer satisfaction, and expanding the business customer base.

Key Performance Indicators

There are several key performance indicators which the business can use to monitor its progress. The first is profit whose increase reflects a positive business performance (David, 2011). The second is day sales outstanding. A decrease in this ratio signifies an improvement in performance. The third is sales by region so as to determine how the business is performing in different parts of its market base. Another one is customer satisfaction and retention. Customer satisfaction and a growth in customer base portrays a positive performance for the business (David, 2011). Also, there is percentage of product defects. The lower the ration, the better the business performance. Additionally, there is cost. A reduction in cost is a positive indicator as it leads to profit maximization.

References

Bryson, J. M. (2011). Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement (Vol. 1). John Wiley & Sons.

David, F. R. (2011). Strategic management: Concepts and cases. Peaeson/Prentice Hall.

Steiner, G. A. (2010). Strategic planning. Simon and Schuster"