Strategic Management Report 2022

Running Head : STRATEGIC MANAGEMENT
Strategic Management
Name of the Student
Name of the University
Author Note

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Introduction
The report is aimed at conducting the strategic analysis of the Australian public listed
company Regis Healthcare having focused on the business of the residential aged care. This
discussion further incorporates a short description of the department in terms of their mission,
their vision and the facilities, the staffs and the client types (Baugh Littlejohns et al., 2019). The
Macro environmental analysis of Australian Aged care industry in which the organization
operates will also be demonstrated in the report. The competitive analysis of the industry will be
conducted having used the model of Porter’ five forces for outlining the organizational
capabilities.
A brief description of the selected organization
The Regis ages care service actually provides the clients with huge support that is
required for the living life in a smooth way. The services include the respite care, the ageing-in-
place, the palliative care and the specialist dementia. They further have aged care facilities 63 in
number across the whole Australia. It is offering necessary support to the students with different
care needs. Also, at Regis, they offer a particular number of the aged care for those who want
short stays, the respite care at different levels of the personal services . Regis has more than 25
years of the experience in the field of aged care and they are quite proud of their special services
complementing their superior aged care support in locations such as Queensland, South
Australia, Victoria, New South Wales, Northern Territory, Tasmania and the Western Australia.
The residential aged care department of Regis is considered as one of the best departments of the
organization. Each of the aged care residence is content with people who are ready to go out and
make patients happy. It provides the tailor-made attention and care from the experienced aged
care professionals (Regis.com.au 2020). These are the people who are ready to take time in

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understanding the likes and dislikes of the patients, how they like to sleep, eat, their physical
abilities, hobbies, emotional needs and interests too. Regis has developed a significant number of
unique services that are considered as the benchmark in the aged care field. A person is cared by
some of the best professionals in this business. A special person is hired who can ensure they
have proper time in focusing on the individual aspects of care. They work really hard to keep the
aged clients connected with the welcoming faces of the community with same interests and being
part of new stories.
Macro environmental analysis
The Regis healthcare Ltd is one most well-known aged are operator that is listed in the
Australian Securities Exchange. The Macro environmental factors leave impact on the operations
of the Regis residential aged are department. As per the class lectures and, it is found that the
PESTEL framework used for the identification of the key drivers along with the issues leading to
the understanding of the opportunities and threats. The PSETEL framework is further useful in
analyzing the implications to the growth of the industry.
The political factors
It is found that in Australia, health care is actually a joint responsibility of the federal
government and the state and it is quite true that the political framework of the healthcare sector
is in a condition of unrest. The capacity of cooperative arrangements between the federal
government and the healthcare organizations is being destroyed by the budget results
representing a huge shift in the costs to the states. The condition of the political environment is
being influenced by shift in the arrangement of commonwealth ending the traditional form since
these are being exposed to the sovereign hazards (Brunetto et al., 2018). The operations in the

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healthcare organizations such as Regis are greatly impacted by the political situation of
Australia. The cost enhancement of the government can easily reduce the access of the
healthcare organizations to the funding of the government.
The economic factors
The healthcare sector is found to be the highest performing sector as far as economic
condition is concerned. The growth of the healthcare sector is bigger than the entire industry of
the healthcare sector of the country. This industry is huge in terms of the private and public
partnership along with the ability of the healthcare sector for attracting the talents out of the
country. In this regard, Australia is regarded as the top third country in the whole world Butler-
(Henderson et al., 2020). It can be further said that the Australian healthcare companies must
realize their responsibilities and the public demands from them having reduced the useless
expenditures and boosted on the potential of research and development. The aged care
organizations should be aimed at contributing to the betterment of the Australian people.
The social and cultural factors
Two primary changes in the social and the cultural environments can leave huge impact
on the operations of the healthcare organizations. The ageing population is undoubtedly the
foremost factor along with the second factor being the sociological shift which influence the
residents for moving to the individualize care. The aged care systems in the Australian context
need some drastic change because of the prevalence of unsustainability (Delany et al. 2016). The
leadership in Regis aged care is further affected by the educational level and culture of the
Australian residents. Hence, it is quite essential for Regis to modify the strategies in terms of
enhancing the medical expenses to acquire some stable customer base.

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The technological factors
It is for sure that the advancement of the world of modern technologies has significant
impact on Australian healthcare industry. It has an enhanced scope for expansion and the usage
of technologies which will bring visible variations in terms of the cost-effectiveness of the
organizations. The growth of income, the acceleration of the ageing population, the expectations
of the communities, the subsidized price of consumers will place some enhanced pressure on the
private and public health system resulting from the technological advances with developing
service demand which are driven are likely to the make one potential mix. In the current years,
the medical technological advancements have become one major driver of the enhanced health
contributing to the increased spending reflecting on a considerable increase in number of people
coming for treatment.
The environmental factors
Since the healthcare sector of Australia is most well developed industry, it is establishing
examples for the coordinated and patient care. The income of the other healthcare providers is
being threatened by the shift of preference. It complying of the environmental laws along with
the organizations will support to reduce the carbon emissions drawing many health benefits for
people. The organizations which operate in the aged care industry, must comply with the
environmental standards and laws.
The legal factors
The business and the operations in the aged care industry is quit influenced by the
region’ legal factors where the organization is actually working. There are some laws which
impact on the organization such as the copyright, the antitrust law, the discrimination law, the

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data protection law and others. The healthcare practitioner is further needed to comply with all
such privacy policies (Brunetto et al. 2018). Australia’ privacy act has developed the principles
which are applicable to the private and the public healthcare service providers. Any such hiring
of the talent in the field of healthcare must have appropriate disclosure and the practitioners are
quite obliged for making patients’ confidentiality.
Competitive analysis using Porter’ five force
The residential aged care is completed by applying Porter’ Five Forces. It is one such tool
for the strategic management and understanding the level of the competitive forces in the
industry. According to the lecture notes and the study materials, the Porter’ Five force analysis is
done for defining the attractiveness of the sectors and the industries in order to identify the
potential for the change.

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Bargaining power of suppliers
For the health organizations as Regis, the bargaining power of the suppliers is quite
critical. It is learnt from the lecture notes that there are most of the organizations that buy the
equipment from many suppliers and when the suppliers are in power, the earned margins are cut
down. The dominant suppliers in the industry can easily extract high prices from organizations
that help in lowering the profitability positions (Butler-Henderson et al. 2020).
Bargaining power of buyers

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The bargaining power of the buyers is limited in this aged acre field due to the fact that
they look out for best quality care from the health organizations. The buyers do not enjoy high
bargaining power since there are few good service providers in the industry. Making large
customer base can help in reducing customer power and making rapid innovations.
Threat of Substitutes
The organizational profits are extremely impacted by different services offered by the
healthcare organizations. In the industry, the threat of substitutes begins from low to the medium.
If the value proposition that is offered by the organization is different considerably from the
present offering in the health industry, the threat of the substitute is high then.
Threat of the rivalry
There is definitely an increased demand for the health services which are driven by the
growing and ageing population of Australia. Regis residential aged care is facing an intense
competition in the industry where it operates due to the increasing healthcare players (Delany et
al. 2016). The increasing number of players in the healthcare players in the industry can be
attributed to the access of fund providers, the economies of scope along with the usage of some
effective methods of cost controlling. The profitability of the whole company is reduced because
of the prevalence of industry players.
Threat of new –entrants
The new entrants in the aged care industry are aimed at bringing innovation in the, some
new ways of operations and putting pressure on Regis healthcare to lower the strategy of pricing,
reducing the costs and providing some value propositions to the customers (Smith, Crawford and

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Signal 2016). The Regis healthcare should manage all of the challenges and establish some
effective barriers for safeguarding the competitive edge.
Conclusion
On a concluding note, it can be said that the report has aimed at conducting the strategic
analysis of the Australian public listed company Regis Healthcare having focused on the
business of the residential aged care. The Macro environmental analysis of Australian Aged care
industry in which the organization operates has also been demonstrated in the report. The
competitive analysis of the industry has been conducted having used the model of Porter’ five
forces

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References
Baugh Littlejohns, L., Baum, F., Lawless, A. and Freeman, T., 2019. Disappearing health system
building blocks in the health promotion policy context in South Australia (2003–2013). Critical
Public Health, 29(2), pp.228-240.
Brunetto, Y., Xerri, M., Trinchero, E., Beattie, R., Shacklock, K., Farr-Wharton, R. and
Borgonovi, E., 2018. Comparing the impact of management on public and private sector nurses
in the UK, Italy, and Australia. Public Management Review, 20(4), pp.525-544.
Butler-Henderson, K., Gray, K., Day, K. and Grainger, R., 2020, February. Defining the Health
Information Technology discipline: results from the 2018 Australian and New Zealand censuses.
In Proceedings of the Australasian Computer Science Week Multiconference (pp. 1-6).
Delany, T., Lawless, A., Baum, F., Popay, J., Jones, L., McDermott, D., Harris, E., Broderick, D.
and Marmot, M., 2016. Health in All Policies in South Australia: what has supported early
implementation?. Health promotion international, 31(4), pp.888-898.
Regis.com.au (2020). Aged Care | Why Regis Aged Care? | One of Australia's Largest Aged
Care Providers. [online] Regis Aged Care. Available at: https://www.regis.com.au/aged-care-
facilities/aged-care-services-why-regis/ [Accessed 22 Feb. 2020].
Smith, J.A., Crawford, G. and Signal, L., 2016. The case of national health promotion policy in
Australia: where to now?. Health Promotion Journal of Australia, 27(1), pp.61-65.

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