Strategic Management Report: Care UK's Business Strategy Analysis

This report provides a comprehensive analysis of Care UK's strategic management practices. It begins with an introduction to strategic management and its importance, followed by an evaluation of Care UK's approach to business strategy development and implementation. The report identifies the outcomes of Porter's Generic strategy model as applied by Care UK, highlighting its benefits in terms of cost leadership, diversification, and service quality. It then delves into the identification of strategic direction, including an analysis of Care UK's vision, SWOT analysis, and the development of a future-oriented strategy combining cost leadership and differentiation. The report further examines the implementation challenges faced by Care UK, such as social challenges, the design of the healthcare system, the quality of services, and government policies. Finally, it offers recommendations to overcome these challenges, including training for health and social care workers, the implementation of a QIPP program, and the adoption of flexible organizational policies. The report concludes with a summary of key findings and actionable measures for Care UK to enhance its strategic management and achieve its organizational goals.

Strategic Management
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Table of Contents
INTRODUCTION ...............................................................................................................................3
TASK 1.................................................................................................................................................3
1.1 Critically evaluation of Care UK's approach to business strategy development and
implementation................................................................................................................................3
1.2 Identification of outcomes of Porter's Generic strategy model..................................................4
TASK 2 ................................................................................................................................................5
2.1 Identification of strategic direction ...........................................................................................5
2.2 Justifications of actions..............................................................................................................6
TASK 3 ................................................................................................................................................7
3.1 Implementation challenges facing by the Care UK...................................................................7
3.2 Recommendations......................................................................................................................7
CONCLUSION....................................................................................................................................8
References............................................................................................................................................9
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INTRODUCTION
Strategic Management is a process of identifying and developing strategies to achieve the
organisational goals and objectives. It is a bundle of actions and decisions which are taken by the
strategic managers for improving the performance of the firm. The development and
implementation of strategies results in increasing firm's profitability and its brand image (Strategic
Management- Meaning and important concepts, 2016).
In the present study Care UK, a health and social care firm of UK is taken into
consideration. This file consists of concepts, techniques, strategies, decision making process, and
importance of strategies. Along with these points, file also consists of identification and
implementation of the strategies in respect to culture and other factors. In the end, whole study is
concluded with the key findings and effective measures.
TASK 1
1.1 Critically evaluation of Care UK's approach to business strategy development and
implementation
Care UK is a health and social care organisation which is working for those people who are
suffering from learning disabilities and various mental health problems. Firm develops and
implements the strategies for improving performance and quality of services. Swayne, Duncan and
Ginter, 2012, have said that “Strategy development is an analytical process which involves study of
market structure, competitive strengths and weaknesses, customer expectations and factors for
market growth (Swayne, Duncan and Ginter, 2012). As per this statement, Care UK conducts
various researches and surveys from time to time for knowing the market trends and client’s
expectations. This helps the firm to apply changes in its working environment for providing quality
services to the patients. On the other hand, Stilwell and et.al., 2004 , have stated that “Effective
strategy development and implementation depends upon tools and techniques used by the company
” (Stilwell and et.al., 2004). In respect to this statement, Care UK uses enterprise resource planning
(ERP) system for gathering information related to the strategy development. This system gives all
the information about the work performance of doctors, nurses, their working status, number of
patients admitted in the firm, their recovery status and many types of other information.
Ferlie and et.al., 2016, have found that “It is important to use a particular method or model
for better and effective strategy development and implementation” (Ferlie and et.al., 2016).
Similarly Eden and Ackermann, 2013, have concluded that “By using appropriate strategy model
organisations can develop and implement appropriate strategies as per their requirement” (Eden and
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Ackermann, 2013). In favour to these statements, Care UK uses porter's Generic strategy model for
developing their strategies as per the expectations of patients and employees. This strategy also
helps social care firm to achieve its objective and goals in the best possible manner.
Kapferer, 2012, has demonstrated that “Successful strategic implementation is more
important than strategic development” (Kapferer, 2012). As per this statement, social care firm
believes in implementing strategies effectively and successfully for achieving quality performance
and good market position. Proper implementation of strategies results in making the Care UK as
one of the popular and leading social care organisation (What is porter's generic strategies analysis,
2016).
1.2 Identification of outcomes of Porter's Generic strategy model
Porter's Generic strategy model is providing various benefits to the Care UK. By using this
strategy, care firm is reducing its prices for increasing the number of patients and old age people. It
is focusing on providing various quality services to the patients in affordable prices. This cost
leadership strategy make service users to prefer Care UK which results in increasing its
profitability. The firm also follows diversification strategy of Generic strategy model which results
to invite patients of mental and learning disable diseases along with old age people. This strategy
also helps the social care firm in implementing new machines and equipment for the better
treatment of patients. It provides home care, community and residential care to the service users
(Siddiqui and Mansoor, 2015).
By focusing on market trends and customer expectations, Care UK is providing treatment,
GP, prison health, out of hours support services, etc. These quality services results to build loyalty
and trust among the patients which directly increases the market position of the firm. Health care
organisation also takes a new step in delivering quality services to the patients who are living far
from the firm. This strategy model helps in enhancing the business by opening more than 110 care
homes around the UK. These homes are providing 111 quality services to the patients and helping
them in recovery. The firm takes feedback from the service users and employees for developing
their action plans and for improving their shortcomings. Firm hires people for providing quality
treatments to the patients. Proper strategy formation and implementation has resulted in Care UK to
win various awards in the field of specialization, performance and services (Evans, Stonehouse and
Campbell, 2012).
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TASK 2
2.1 Identification of strategic direction
Strategic direction is creating a route of planning and organising that will enable the
company to achieve its goals and objectives (Millar, Hall and Miller, 2013). Steps are formulated in
the process of strategic direction so as to find appropriate directions for planning. Strategic direction
helps Care UK in formulating strategies that will assist in achieving future goals and targets of the
organisation.
 Step 1: Analysing Vision
The health care organisation focuses on providing quality services to its customers (Ferlie
and et.al., 2016). The main vision is to provide health care services to the maximum patients who
needs urgent help and diagonals. The long tern objective is to enhance quality of services provided
in the organisation in order to attract more service users towards the organisation.
 Step 2: Performing SWOT analysis
In order to create a strategic direction plan for Care UK first and SWOT analysis must be
performed on the company to identify its strengths, weakness, opportunities and threats (Engelmann
and et.al., 2013). SWOT analysis will help the organisation to identify its present capabilities and
potential. This will further help in setting future targets and objectives while formulating strategies.
Strengths Weakness
 Skilled and experienced professionals
 History of becoming a leading care
provider (Breivik, Eisenberg and
O’Brien, 2013)

 Excellent in diagnosis and treatment
facility.
 Communication problems between
nurses and service user.
 Slow rate of services
 Less voluntary association of the
staff with patients.
Opportunities Threats
 Improve patients participation in
organisation
 Increase in employee participation
 raise patients traffic by attracting
them
 Competitors rival strategies
 Successful patients coercion (Ferlie
and et.al., 2016)

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 Step 3: Identifying Future directions
After analysis the SWOT of Care UK, It was found that the organization requires strategic
direction to plan for a new strategy to overcome competition (Kapferer, 2012). In order to achieve
competitive advantage in the market the company must formulate new strategy designed
specifically to achieve the target. The company has to raise its consumer base by creating strategy
that will target in increasing potentials of the organisation.
 Step 4: Developing a strategy for future directions
As per the future requirement Care UK must make a strategy who's target is to achieve
competitive advantage over companies competitors. For this the company must use combination of
cost leadership and differentiation strategy to achieve its target and objectives (Ferlie and et.al.,
2016). Cost leadership strategy states that an organisation can make use of its resources in a cheaper
easy and develop products and services with low cost advantage. The market size of this strategy is
based and thus low cost products are able to achieve a large markets hare. In differentiation strategy
the organization can develop its product and service with innovation. By developing it's product
organization can increase its sale and achieve a large market share from its competitors. Adhering
to this company can use of combination of these strategies.
Thus Care UK have formulated a strategy to provide premium service in low cost. The
services will be of high premium quality but the price will be low as per the cost leadership strategy.
By adopting this strategy company can reduce cost by writing off usage of unnecessary resources.
Reduction in the cost of the product will help in achieving cost advantage over it's competitors
(Millar, Hall and Miller, 2013). Differentiation advantage that will be generated by targeting low
earning group segment will help the company in achieving better market share over its competitors.
2.2 Justifications of actions
After formulation of appropriate strategy the organization must also analyse appropriate
justification to the same., The use of both strategy is feasible to the monetary aspect of the
organisation. Care UK can reduce its cost by reducing few elements and this will help the
organisation in increasing revenue and income (Rosenberg Hansen and Ferlie, 2014). The strategy
is viable as the products and services are developed to provide premium quality services to the
customers. Thus it will be appropriate for the organisation to develop its product an d services and
to lower its cost expenses to achieve cost leadership in the market.
TASK 3
3.1 Implementation challenges facing by the Care UK
Care UK is facing various implementation challenges in its working environment
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which are explained below. Social challenges: Care UK is facing challenges in fulfilling changing expectations and
demands of the service users. Old people have long terms and conditions which results in
increasing the complexity in providing appropriate care. It also faces problem in dealing
with the unhealthy life style of the younger patients as it force them to change their services.
it makes firm to change their services for them (Rosenberg Hansen and Ferlie, 2014). Design of health and social care firm: Social care firm face challenges in designing proper
system for providing high-quality services to the patients. The biggest challenge of the firm
is to integrate health, social care and support organisations properly (Care UK Group. 2016). Quality of services: Care UK faces challenges in delivering high-quality services as per the
available resources. They also face challenges in selecting the appropriate tool and technique
for improving their quality and performance.
 Government Policies: Changes in government policies and procedures with respect to the
health care organisations affects the working of Care UK. These changes leads makes social
care firm to modify their working as per new policies which results in loss of time, money
and resources (Breivik, Eisenberg and O’Brien, 2013).
3.2 Recommendations
In order to implement the strategy Care UK will face different challenges. Thus few
recommendation's are proposed to overcome these challenges. Training to health and social care workers- The staff and employees at Care UK must be
provided with training development programmes to improve their skills and abilities
(Evans, Stonehouse and Campbell, 2012). This will inspire them to work better and
achieving better targets to improve productivity of the care provider. They must be trained
to treat service users with compassion, dignity and respect. Conducting Quality Innovation, Productivity and Prevention (QIPP) Programme-
Care UK must bring technological advancements in the technology used in present by the
organization (Ferlie and et.al., 2016). The employees and staff must be motivated to use
latest techniques and treatment methods. By shifting focus towards prevention and well
being professionals can guide service user to use preventional methods. The QIPP program
will help in achieving better traffic of service users.
 Flexible social care organization's policies and procedures- The policies of the
organization must be flexible enough to abide by the rules and regulations of the
government (Swayne, Duncan and Ginter, 2012). The policies must be made keeping in
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mind the respective legal policies designed by the legal framework of UK. The strategies
must be easily acceptable to reduce chances of employee de-motivation.
CONCLUSION
From the above study it is concluded that, strategy management plays important role in
achieving organisational objectives and goals. By effective implementing strategies, firms can
improve their quality of performance and market reputation. It is based on the decisions taken by
the doctors, financial staff, nurses and other health care workers. Care UK is one of the leading
social care organisations of UK which provides various services to the service users. For developing
and implementing appropriate strategies firm is using Porter's Generic strategy model which results
in increasing number of patients and market position. There are various challenges faced by the firm
which it needs to solve by using appropriate solutions. These improvement helps firm in
introducing new machines and equipments for better treatment of service users.
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REFERENCES
Books and Journals
Breivik, H., Eisenberg, E. and O’Brien, T., 2013. The individual and societal burden of chronic pain
in Europe: the case for strategic prioritisation and action to improve knowledge and
availability of appropriate care. BMC Public Health. 13(1). p.1229.
Eden, C. and Ackermann, F., 2013. Making strategy: The journey of strategic management. Sage.
Engelmann, J.M. and et.al., 2013. Young children care more about their reputation with ingroup
members and potential reciprocators. Developmental science. 16(6). pp.952-958.
Evans, N., Stonehouse, G. and Campbell, D., 2012. Strategic management for travel and tourism.
Taylor & Francis.
Ferlie, E. and et.al., 2016. Strategic Management in the Healthcare Sector: The Debate About the
Resource-Based View Flourishes in Response to Recent Commentaries. Int J Health Policy
Manag. 5(2). pp.145-146.
Kapferer, J.N., 2012. The new strategic brand management: Advanced insights and strategic
thinking. Kogan page publishers.
Millar, R., Hall, K. and Miller, R., 2013. A story of strategic change: becoming a social enterprise in
English health and social care. Journal of Social Entrepreneurship. 4(1). pp.4-22.
Rosenberg Hansen, J. and Ferlie, E., 2014. Applying strategic management theories in public sector
organizations: Developing a Typology. Public Management Review, (ahead-of-print). pp.1-
19.
Siddiqui, N. and Mansoor, M., 2015. Strategic Management of Australia’s Primary Health
Networks: Learning from Horvath’s Review. Australian Academy of Business and
Economics Review. 1(1). pp.85-100.
Stilwell, B. and et.al., 2004. Migration of health-care workers from developing countries: strategic
approaches to its management. Bulletin of the World health Organizatio. 82(8). pp.595-600.
Swayne, L.E., Duncan, W.J. and Ginter, P.M., 2012. Strategic management of health care
organizations. John Wiley & Sons.
Online
Care UK Group. 2016. [Online]. Available Through : <http://www.careukgroup.com/what-quality-
means-to-us>. [Accessed on 21st January 2016]
Strategic Management- Meaning and important concepts. 2016. [Online]. Available Through :
<http://managementstudyguide.com/strategic-management.htm>. [Accessed on 21st January
2016]
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What is porter's generic strategies analysis. 2016. [Online]. Available Through :
<http://www.coursework4you.co.uk/essays-and-dissertations/porter-generic-strategies.php>.
[Accessed on 21st January 2016]
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