Strategic Management 2022 Report

STRATEGIC MANAGEMENT

Contents
Introduction...........................................................................................................................................4
Background of Regis healthcare limited................................................................................................4
Company products and brands...........................................................................................................4
Macro-environmental analysis...............................................................................................................4
Porter`s five forces model......................................................................................................................9
Conclusion...........................................................................................................................................11
References...........................................................................................................................................13

Introduction
This report brings out a discussion on Regis healthcare limited. The main aim is to identify
many strategic options to examine the current situation of the Regis, which will show the
impact of industrial governing forces on industry. For the analysis, the report has used two
macroeconomic frameworks such as PESTLE Analysis, and Porter 5 forces model. PESTLE
is a tool, which has been used to examine the influence of external reasons on the business.
Background of Regis healthcare limited
Regis healthcare limited (RHL) is amongst the important aged healthcare availers, which
deliver highest quality of services to community, retirement, residential and other home
settings. Regis healthcare limited is Australian aged care worker, which is registered on ASX
with the estimated market of 2.5 percent and currently it works with a idea to remain vibrant,
creative, and innovative lead by availing premium quality services as aged care service with
the help of dedicated management team (IBIS World, 2019a).
Company products and brands
Currently, the company employs nearly 7500 people, which derive revenue from operations
of the retirement and other residential aged care facilities. The company operate quantity of
services and centres such as retirement, homecare, Day therapy, and day Respite. This would
include health-based activities, podiatry services, and support for cares, centre based, in-
house care services, and rehabilitation (IBIS World, 2019b).

Macro-environmental analysis
Factors (or
issues)
Opportunities
or threats
Impact of the
future
industry
growth
Key driver of
change (Yes/No)
and references
used
Political Political
stability
Trade barriers
protect the
healthcare
limited by
preventing
exports (IBIS
World, 2019a).
Community care
projects and
government
funding’s are
encouraged by
the Australian
government
This
opportunity
can benefit the
industry by
maintaining
and running
subsidiaries to
maintain the
quality of care
it offers.
Market
opportunities as
potential reforms are
the driving change
post Royal
Commission.
Economic Economic
Growth
Purchasing
power of
people
The healthcare
sector is
estimated to
grow 6 percent
for 2016-2021
that would
suggest that
companies and
other healthcare
The
opportunity
suggests that
higher is the
purchasing
power of
people
developing the
industry.
This opportunity
will lead to higher
sales, which is a
driving factor.

organisations
would flourish.
Australia is a
developed
nation with
GDP of $1.24
trillion in 2017,
1,420.05 billion
US in 2018, and
$1.376 trillion
in 2019 (IBIS
World, 2019b).
Social and
cultural
Proportion of
immigrants
and old aged
people
There is a shift
in demography
of Australians
because the
proportion of
retired people
and immigrants
will need better
healthcare
facilities for
aged people
(Regis
healthcare
This
retirement
leads to
catering of
services for
aged people.
Aging population is
the driving factor.

limited, 2020).
Technological Availability of
28
technological
products, Paro
technology,
and Google
Analytics
(Regis
healthcare
limited, 2020)
Australia is
technologically
advanced
nation, which
use better
healthcare
equipment for
the patients.
Introduction
to new
technologies
can increase
the growth of
this industry.
Medicines and
doctor can add
quality to the life.
Ecological Majority of the
healthcare
companies can
follow and
practise
sustainable
practises.
Sustainability
is the best way
to recognise
and explore
activities
related to
impact on
environment.
This can minimise
negative impact on
environment.

Legal Government
policies are
quite strict and
extensive
policies in the
facility
accreditation.
Intellectual
property,
protecting
patents are the
best way to
protect.
This can act as a
barrier for managing
change in company.
3. Overall
conclusion
Macro-
environmental
factors have
high influence
on Business
level strategy.
Threats and
opportunities
can either lead
the business to
grow or lean it
down.
Increasing
disposable
income,
retirement,
ageing factor,
and trade
barriers can
lead to growth
in the
industry.
Improvements in
employee
engagement and
support will lead to
cultural diversity
and mental health
support.
Business level strategy
The company creates various development programs to achieve business performance, cost
discipline, and maintain excellent residential care standards.
Reviewing opportunities can lead to market pressures, thinking of diversification and
sufficient licencing for starting the business. Strategically review or pausing other aged care

developments, which industrial conditions are quite unfavourable. The program under gives
an opportunity to Regis healthcare to attain a competitive advantage-
(Source: Regis healthcare, 2020)
Porter`s five forces model
Porter five forces model is a universal strategy, which take strategic decision to analyse
present competition. Regis limited can create a sustainable competitive advantage in
healthcare department (Wambua, and Munyoki, 2017).
Threat of new participants-
New players can fetch innovation, and other new way of committing possessions can exert
force on Regis healthcare limited. Regis can manage challenges and make real obstacles to
defend its control. The organisation could cope up with new applicants by dropping the fixed
costs per unit; expend money on department of research and development. This can
significantly reduce extraordinary profits (O'Hara et al., 2017).
Bargaining control of customers-
Bargaining influence of customers is moderate to weak as healthcare facility is one of the
basic necessity of human`s life. In addition to this, product differentiation in industry is high

because buyers do not have any alternate organisation producing the same product.
Furthermore, Australian government strives to fund its healthcare sector by funding the
organisation. This can be handled by focusing on innovation and distinction, which can
fascinate new purchasers. In order to reduce the force and cater healthcare services, Regis
healthcare can take benefit of economies of scale to create cost competitive advantage and
then sell low price to the low-income and needy people (Pourmohammadi et al., 2020).
Bargaining power of suppliers-
All the companies in healthcare sector can obtain raw material from several dealers. Suppliers
have dominant position, which decreases margin of Regis healthcare in reducing profits.
Powerful suppliers can negotiate power while extracting upper prices from the organisation in
healthcare services. The entire impact of higher bargaining power of supplier can reduce
overall profits (Walsh, Bhagavatheeswaran, and Roma, 2019).
The company will be able to achieve lower pressure from suppliers by creating well-
organized supply chain with varied dealers. Creating dedicated supplier on which business
depends on organisation (Walsh, Bhagavatheeswaran, and Roma, 2019). One of the
important lesson to be learnt will depend on Nike and Walmart`s strategy of how developed
party manufacturers can solely depends in creating a circumstance where third party
producers are less dependent in creating and manufacturing less bargaining power to Nike
(Regis healthcare, 2020).
Threat of competitive rivalry-
Some of the important competitors include Ryman healthcare limited, RSL care RDNS
limited, BUPA ANZ healthcare ltd, DAC finance, Japara healthcare, and Anglican
community services. In order to combat the competitive risks, the company maintains
excellent resident care standards by maintaining occupancy and efficiency focus

(Pourmohammadi et al., 2020). Although, the number of competitors in this industry us quite
few, which makes rivalry as a weak force to affect its share in the market (Pourmohammadi
et al., 2020). This mean to engage in competitive action in order to gain position and then
become market leaders. To standalone amongst all the competitors, one has to create
sustainable differentiation, creating scale to compete improved; team up with competitors that
can upsurge the market share and competing in the small market (Izquierdo, Rodríguez, and
Ribes, 2016).
Threat of substitution-
The threat of substitution meet same purchaser needs in unlike ways where business profits
will suffer. The risk of substitute goods is great as it deals value proposition, which is
dissimilar from present contributions. For instance- Dropbox and Google drive are the
alternatives to store hardware efforts. When new product and service accomplish customer
needs diverse conducts then the profits of the industry will suffer (Regis healthcare, 2020).
With understanding, it is important to identify the basic needs of customer rather than
focusing on what the client has been purchasing. In order to handle Regis healthcare limited,
the company can provide greater quality of products, which as a result can choose the
products to avail greater quality at higher price (Alharbi, Atkins, and Stanier, 2017).
Conclusion
From the above conclusion, it is seen that examining five forces competitive analysis can
focus on Regis healthcare complete picture of how profitability of the company affects
healthcare industry. This can recognize game fluctuating developments, which can retort to
exploiting emerging prospects with the sympathetic of Porter five power model can shape
these forces. As it is one of the leading Australian organisation in healthcare sector then it has
refined its way of conducting business and winning competitive edge over its competitors.

Furthermore, there is a need to introduce new development programs to comply it with the
business level strategies so that the company can minimise the risks of external factors and
external risks associated with the country. As the company will be accountable in
implementing the policy to avail them resources and other objectives.

References
Alharbi, F., Atkins, A. and Stanier, C., 2017, September. Holistic strategic assessment and
evaluation of cloud computing adoption: Insights from Saudi Healthcare Organisations.
In 2017 Internet Technologies and Applications (ITA) (pp. 75-80). IEEE.
IBIS World, 2019a. Regis Healthcare Limited - Australian Company Profile. Available on:
https://www.ibisworld.com.au/australian-company-research-reports/health-care-social-
assistance/regis-healthcare-limited-company.html [Accessed on: 12/04/2020]
IBIS World, 2019b. Regis Healthcare Limited. Available on:
file:///C:/Users/SYSTEM~1/AppData/Local/Temp/Rar$DIa5900.33985/4026327_66755955_
RegisHealthcareLimitedIBISWorl.pdf [Accessed on: 12/04/2020]
Moreno-Izquierdo, L., Ramón-Rodríguez, A.B. and Perles-Ribes, J.F., 2016. Pricing
strategies of the European low-cost carriers explained using Porter's Five Forces
Model. Tourism Economics, 22(2), pp.293-310.
O'Hara, N.N., Nophale, L.E., O'Hara, L.M., Marra, C.A. and Spiegel, J.M., 2017.
Tuberculosis testing for healthcare workers in South Africa: A health service analysis using
Porter's Five Forces Framework. International Journal of Healthcare Management, 10(1),
pp.49-56.
Pourmohammadi, K., Bastani, P., Shojaei, P., Hatam, N. and Salehi, A., 2020. A
comprehensive environmental scanning and strategic analysis of Iranian Public Hospitals: a
prospective approach. BMC Research Notes, 13(1), pp.1-7.
Regis healthcare limited, 2020. Environmental sustainability statement. Available on:
https://www.regis.com.au/ess/ [Accessed on: 12/04/2020]

Regis healthcare, 2020. 1H FY20 FINANCIAL RESULT. Available on:
file:///C:/Users/SYSTEM~1/AppData/Local/Temp/Rar$DIa5900.23578/4026328_157692158
0_Regisshalf-yearreport26Feb2020.pdf [Accessed on: 12/04/2020]
Walsh, K., Bhagavatheeswaran, L. and Roma, E., 2019. E-learning in healthcare professional
education: an analysis of political, economic, social, technological, legal and environmental
(PESTLE) factors. MedEdPublish, 8.
Wambua, T.M. and Munyoki, P., 2017. Strategic responses by ngos in the health sector in
nairobi to challenges in the external environment. International Journal of Business
Strategies, 1(2), pp.83-106.