Performance Improvement And Management In Hsc

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PERFORMANCE IMPROVEMENT AND MANAGEMENT IN HSC
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Question 1
Memo
To: The board of shareholders CareTech Holdings PLC
From: The Operations manager CareTech Holdings PLC
Subject: Recommendation of the strategic planning models
It is a well-known fact that strategic planning is an essential element for the success of any
business undertaking. This report enlists two particular models for strategic planning, which
could be of use in terms of the development of CareTech Holdings PLC and the overall
healthcare sector in the UK. In this memo, SWOT analysis and Porters’ five forces models
are chosen as the strategic planning models appropriate to the care sector in England and
necessary for applicability with CareTech Holdings PLC (Rumelt, 2011). Focus is put on a
critical evaluation of the advantages and disadvantages of the two models. It is further
recommended to the shareholders that the porters five forces model should be implemented at
CareTech Holdings PLC because of its comprehensiveness and applicability. Naturally, the
healthcare industry in the UK is deemed to be highly complex. The continuous enhancement
in terms of human knowledge and technology has continued to aid discoveries and
continuous innovations within the healthcare sector (Michael, 2018). To be in a position of
dealing with all the complexities associated with the management of the healthcare sector,
SWOT analysis, and Porter Five Forces are explained in this memo.
Porter’s five forces
Porter’s five forces is an essential strategic management tool designed to provide an analysis
of the healthcare industry as well as conceptualize the underlying levels of company
profitability. The model can be used in efforts aimed at understanding how the five
competitive forces impact profitability (Max, 2012). The results attained can be used to
develop or initiate a strategy for the enhancement of Healthcare, Inc. Michael Porter did
observe five force and explained how significantly they impact on the profitability of the firm
within the industry. Porter’s five forces include
The threat of new entrants

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The suppliers’ bargaining power
The buyers' Bargaining Power
The threat posed by substitute services and products
Competition among the current players.
Advantages associated with porters five forces model
The model is beneficial in terms of gauging the competition. The model helps managers to be
able to measure the industrial competition faced by the company. That's important because if
the company has full knowledge of the industrial competition in which it operates, it will
develop a pricing plan which is appropriate for the company to make profits. The company
will be in a position of establishing which pricing strategies to adopt based on the competitive
nature of the industry in which it operates.
The model aids or facilitates planning. The healthcare industry is complex and usually
necessitates enormous investments. The complexity associated with running companies such
as CareTech Holdings PLC is that the company cannot backtrack ounce it has invested.
Doing a porter analysis, the company will be in a position of identifying the industries where
the threat of new entrants and substitutes are not much. Through Porter's five forces analysis,
the company will be able to locate the kind of industry where it is easy for new players to
enter. The threat of substitutes for the company’s products lowers the industrial’s pricing
power as a whole. In that sense, by undertaking Porter's five forces analysis model, the
company can make plans to operate in ways which eliminate the threats as mentioned above
from the industry (Spaniol, and Rowland, 2018).
Porter's five forces are helpful in instances when the company is dealing with both suppliers
and buyers. Porter's forces model helps the company to plan in a way that it can only operate
within an industry or market situation where it has more bargaining power than both the
buyers and suppliers. Such type of planning puts the company at a dual advantage. The
company can acquire production raw materials at reasonable rates because of the massive
competition between the suppliers to supply their documents to the company. In the same
manner, the buyer's bargaining power is weak which the case is usually when the company
uses the porter's five forces model to plan its pricing strategies (Kiechel, 2010). The planning
is done in a way that the company products tend to be more inelastic than the price. This
usually ensures that the company operates as a price maker as opposed to being a price taker.

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Disadvantages of using Porter's five forces
The model ignores other factors. This is one of the biggest problems associated with Porter's
five forces model. The model’s tendency of ignoring other factors could have a bearing on
the environment in which the company operates. The model is rendered irrelevant in
instances where all the five elements associated with the five forces model do not apply
(Kwok, 2009).
There is also realistically no chance that any industry can be a perfect fit. The model assumes
that a particular sector will have all the positive points. In that sense, should a company go by
Porter's five forces model and expect to find a specific industry with all the positive aspects,
it then finds it hard to do any business( Ingram, 2015). This is a significant shortcoming of
the model since there is no industry with all the positive traits. The mode's orientation to
ignore these apparent weaknesses and focus on pouncing on only the opportunities makes it
limited as a strategic management model (Pignataro, 2013).
The model is also not applicable to all types of industries. The model cannot be relevant to
some sectors such as fashion or technology. The model may not be able to bring about the
chosen results. It is therefore hard to apply the model universally to all industries.
SWOT Analysis
The second strategic planning model chosen for analysis in this memo is the SWOT analysis.
This is a critically essential and equally high-level model applicable at the commencement of
the organization's strategic planning process. SWOT is an acronym for the strengths, the
weaknesses, the opportunities as well as threats. The company’s strengths and weaknesses are
deemed to be internal factors. On the other hand, opportunities, as well as risks, are defined
as external factors. Through the application of the SWOT analysis in an organization's
strategic planning process, it can identify where it’s doing well and also establish aspects
where it needs to improve.
Benefits of SWOT analysis
The most significant advantage that comes with the use of the SWOT analysis model is that it
has a very less cost and in some cases, no cost at all. It is easy for anyone that knows the
business or the industry to conduct a SWOT analysis. SWOT analysis is also less time
consuming and can, therefore, be used to plan and execute highly complex situations in the
shortest time possible. This, therefore, means that the company can undertake steps to