Strategic Management for Estia Health Aged Care in Australia

Running head: Strategic Management 1
Strategic Management

Strategic Management 2
Contents
Introduction......................................................................................................................................3
Background information about the organization.............................................................................4
Macro environmental analysis.........................................................................................................5
Porter’s 5 model...............................................................................................................................6
VRIO analysis..................................................................................................................................8
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

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Introduction
The role of strategic management is vital for the organization because it ensures that goals of the
organization are set and internal environment is set for attaining the objectives. More and more
organizations have become aware about the strategic planning which is the fundamentals aspect
in successfully facilitating them by an kind of contingencies either internally or externally,
organizations have initiated to attract strategy management initiating from the most basic
administration levels (Freeman, 2010). The report will be described about the Estia Health Aged
Care, Australia. Macro environmental analysis will be mentioned in this report to define the
Pestle analysis of the chosen organization. Porter has recognized five competitive forces that
provide the shape to every industry. These forces decide the strength of the competition. VRIO
framework analysis will be helpful to determine the capabilities of the organization. It is
considered as an analytical technique to evaluate the resources of the company and thus the
competitive advantages. It is a short form from the starting of the names of the evaluation
dimensions such as Value, Rareness, Imitability and Organization.

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Background information about the organization
Estia Health Aged Care was formed in 2005 and now it is one of the well known residential aged
care providers in Australia with 68 facilities, more than 5500 operating places and 7,000
employees across Queensland, South Australia and Victoria. The main reason behind the rapid
growth of this industry is upon the consolidation in July 2014 of three residential aged care
businesses. All of them have strong positions and modern facilities. The aim of Estia is to
provide the high rate aged care services to its customers in an innovative and supportive way.
The staff of this organization has trained and educated which underpinned with a committed and
skilled workforce. The operational efficiency of Estia is to deliver results by using its corporate
centre in Melbourne. This organization has the proud heritage of giving the quality aged care
across Australia for nearly 50 years. The business scope of the organization is to expand its
business globally by providing efficient services to the aged people. It has been evaluated that
there are certain reasons to choose Estia Health such as everyday living, wellbeing and lifestyle,
a nutritious experience, quality clinical healthcare and respite care (Estia Health, 2018).
In the context of everyday living, it provides help with everyday living in well maintained
environments that are protective and adaptable to the individuals needs. People are not wanted to
get bound with the rules and strictness, they are looking for places to call home that permit them
to live their life in free way but provide support, security and stable. Hobbies and interest of
people are focused by this organization to make them realize that they are valuable. Under
wellbeing and lifestyle, an organization understands the need of the people at any stage of life.
People are eager to maintain the balance an inspiring life with one that permits time for personal
understanding and space. This organization has trust on equality and provides the health nutrients

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food to the residents of health aged home. The chefs of this organization are encouraged to make
interesting options that show the personal preferences of residents. The nurses are qualified in
this organization and clinical care is an ongoing process that involves constant reviews. It
involves daily medication, specialist dementia care, medical services such as dental, pharmacy,
podiatry and physiotherapy. The major market of this organization is in South Australia,
Queensland, New South Wales and Victoria. Each home shows the unique and individual
personalities of the residents that are effective. It has been cleared that Estia has the strength in
the form of effective staff and polices which is followed by the staff of this organization.
Residents of this Aged care home are satisfied due to effective services (Estia Health, 2018).

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Macro environmental analysis
Macro environmental analysis will be effective for the organization to understand the
opportunities and threats for the organization by evaluating the various terms such as political,
economical, social, technological, legal and environmental. Pestle analysis will be mentioned
below with clear understanding that which aspect can put the impact into the environment of the
company.
Political
Political factors have the ability to determine the factors that can influence the long term
profitability for Estia Health Limited in a certain country or market. Estia Health limited is
running its business in aged care services in number of countries and reveal itself to various kind
of political environmental and system risk. In Australia, these industries need to analyze the
various political terms and tax policies. Estia should analyze various factors such as political
stability, reduced costs, skilled government and international trade agreements in the context of
Australia (Buysse and Verbeke, 2003). These industries need to analyze the taxation, wage
legislation and mandatory employee benefits of Australia. It has been analyzed that the
healthcare expenditures shows 9% GDP, near to the OECD median which is less than the United
States.
Economical
There are numerous macro environmental factors such as saving rates, inflation rates, foreign
exchange rate and interest rate which determine the aggregate investment in an economy. Micro
environmental factor is focused on the competitive advantages of the firm (Clemens, 2009). Estia