Report on On Medicare: A New Business Venture in the Healthcare Sector

This report analyzes the On Medicare business venture, an e-pharmacy operating in Malaysia's healthcare sector. It begins with an introduction outlining the report's scope, which includes the business canvas model, PESTEL analysis, HRM practices, and key success factors. The report details the business canvas model for the venture, highlighting key partners, activities, resources, channels, customer relationships, customer segments, value propositions, cost structures, and revenue streams. A PESTEL analysis assesses the external factors impacting the business, considering political, economic, social, technological, environmental, and legal factors. Strategies for sustainability are discussed, along with the importance of human resource management, including recruitment and training. The report also identifies key success factors for the venture, concluding with a summary of the findings and references used.

Managing Human Capital
and Entrepreneurship -
MBA
TABLE OF CONTENT

INTRODUCTION.................................................................................................................................3
Task 1....................................................................................................................................................3
Task 2....................................................................................................................................................6
Sustainability of business..................................................................................................................6
TASK 3.................................................................................................................................................9
Strategies, sustainability and requirement of human resource...........................................................9
Task 4..................................................................................................................................................11
Key success factors..........................................................................................................................11
CONCLUSION...................................................................................................................................12
REFERENCES....................................................................................................................................13

INTRODUCTION
Business environment is a sum of different internal and external factors that put a role
in the operations of company. This report is based on the case study on new business venture
launch. The new business venture is named as On Medicare. Company is engaged in serving
online delivery of medicines in the health care sector of Malaysia. In this report different
factors related to launching a new business venture will be discussed. Henceforth, report will
emphasis on impact of different external factors that put an impact over the business
operations of company. Business model suitable for the new business website will be
discussed in this report. Different HRM practices will be discussed that play a role in the
business operations of new business venture. Different success factors of company will be
discussed.
Task 1
The new venture name is “Own Care”. it is a e-pharmacy business that offers medicines
through online new media. The main goal of the Own Care is to offer desirable products such
as medicines to the customer on time and gain good brand positioning in the Malaysia
market. For successfully establishing business uses business canvas model as per the view of
healthcare sector in Malaysia.
Business canvas model
Business canvas model supports new start up business to display all major elements of
the model to simplify discussion over the strategies and also represents relationship among
different elements of the model (Joyceand Paquin, 2016). This canvas model supports this
new Own-Care to described all business activity on a single page.
Key Partners
 Pharmaceutical
manufacturers,
distributors,
sponsors such
as Dabur, One
Touch,
Himalaya,
Key Activities
 Online
marketing of
medicines,
order
fulfilment,
online home
delivery
Value
Proposition
 Currently
customer
unable to go
outside for
buying
medicine due
Customer
Relationships
 Customer does
not have to
look for third
person because
it follows B2C
model
Customer
Segments
 All online
shoppers
and
purchase
behaviour
customers

Sugar free etc.
are the major
key partners of
the new
venture.
 These key
partners help
to invest huge
funds in the
business that
will support to
expand
business in the
healthcare
sector.
 Investors such
as
manufacturer,
distributors are
the key
partners of the
Own-Care
business.
services,
warehouse
management
etc. Key
activities that
are
undertaken
by Own-
Care.
 These
activities
helps to build
good brand
image in the
E-commerce
market.
 Requires
high
experience
about
medicines
and
knowledge of
online
medicine
retailing that
will help to
conduct all
key activities
effectively.
to pandemic.
In this state
Own-Care
will provide
online
medicine
services. thus,
it will resolve
all customer
issues.
 This new
venture will
provide
various
benefits such
as customers
does not need
to go outside
in this
pandemic. It
posses’ all
branded
medicines
related to
different
disease so
customer can
order number
of medicines.
Prescription
(Business to
Customer).
 Direct
marketing
facilities offers
by Own-Care
to the
customer.
 Own-care
provides own
official app
whereas
customers can
buy large
number of
medicines as
per the
prescription
and can give
review about
supplier
services by
commenting
on shopping
experience
icon.
are the
targeted
audience of
the Own-
Care
company.
 These are
the
important
customer of
the new
venture.

reading
services also
offers to the
customers.
Key Resources
 Order
fulfilment,
customer
service,
digital
marketing
and e-
commerce
platform &
website itself
are the key
resources of
the Own-
Care whereas
needs to
operate
business
effectively.
 Ecommerce
marketing,
customer
services and
order
Channels
 Own website
is the main
channel of the
Own-Care to
attracts large
number of
users and
transform them
into customers
by gaining
faith of them
on it’s website.
 Promotion on
e-commerce
site such as
social media
through
sponsors that
will build
customer trust
on the brand.

fulfilment are
the important
key
resources.
Cost Structure
 All new expenses and shipping fees
 Licensing fees of running online website
and platforms are quite costly.
Revenue Streams
 Own-Care has involved several sponsors
such as Dabur, Himalaya, GNC wellness,
Hamdard etc. for influencing awareness
in customer about it’s official websites.
These key sponsors will support to
control all cost effectively (Keane,
Cormican and Sheahan, 2018).
Task 2
Sustainability of business
Sustainability is defined as running business of company for long time. In order to
sustain the business it becomes crucial for the company to take competitive advantages in the
market. External factors of business environment support company in taking competitive
advantages in the market.
PESTEL Analysis
PESTEL Analysis is a wide tool used to assess about different external factors of
business environment that put an impact over the business operations of company. On
Medicare is a new business ventures. It becomes more important for the venture to take
competitive advantages from the strategies of the new business ventures. This tool covers all
different external factors like political, economical, social, technological, environment and
legal factors part of the external business environment.
Political factor: Political factor involve different external factors like policies framed by
government to support the growth and development of companies. In recent times companies
play a significant role in boosting up economic growth of the Malaysia. The contributions of

the corporate sector in the economic growth of the country have allowed government to give
specific attention to develop the corporate sector in Malaysia. The increased interest of
Malaysian government in the growth of the companies has created a positive culture for the
new business ventures to come and invest for achieving the high business success in
Malaysia. In recent time government has also provided licences and created easy norms for
the health care sector that has also boosted the growth of the sector (Liu and Wang, 2018).
This has created a hike in the health care market. On Medicare is a health care sector
organisation engaged in supplying medicines online. Due to government support new
business venture has a great chances to sustain and growth in the health care sector of
Malaysia. Political stability is alsoa crucial factor that creates a positive atmosphere for the
companies to come and invest in the market. In Malaysia government has a strong political
support that has allowed government to make long term policies and planning for the growth
of different companies and sector. Health care is one of the prime sector involve in the
business environment of Malaysia. All the different aspects related to the health care sector in
Malaysia will allow the new business venture to sustain and grow in the market.
Economic factor: Economic factor is among the crucial factor part of the business
environment. This factor involves different factors like economic position of Malaysia,
currency exchange rate, foreign currency exchange rate and many other economic aspects.
This is one of the major external factors that put an impact over the business operations of
company. Economic factor play a huge role for the company in engaging an effective sales in
the market. On Medicare is a new business venture. It becomes important for the new
business venture that the market the organisation is pursuing to meet up all different business
objectives cater the perfect economic situation which can allow the organisation to grow at a
reasonable growth rate. Strong economic position of the Malaysia will support the On
Medicare to growth in the market (Njau, Mwenda and Wachira, 2019). Economic factor
comprises with all different economic aspect and per capita income of people in Malaysia
would be a strong economic factor influence the business of company. On Medicare caters
different kinds of tablets at the affordable prices by reducing the profit margins. This low cost
strategy of company will play a huge role in attracting the purchasing decision making of all
potential customers in Malaysia. This would further target to all economic background
peoples based in Malaysia.
Social factor: Social factor involve different social values the market is associated with. The
health care sector get involve with all kinds of social values and cultural values. On Medicare

is a part of the health care which will allow company to cater the needs of all kinds of social
background peoples based in Malaysia. Social factor also involve trends in the market. In
Malaysia peoples are keen to order products they need over internet. Company will serve its
services over internet which will allow the people of Malaysia to order different medicines
over the company’s website (Younger and Fisher, 2020). Social factors in Malaysia look very
supportive for the On Medicare to deliver its business objectives successfully. Company can
also involve in differently public engagingcampaigns to gain the public support. Company
will also follow the practice of giving suitable discounts on every booking over On Medicare
website. This strategy would also support the company in generating demands of the
company in the market.
Technological factor: Technological factor is among the key external business environment
factor part of the external business environment. Technological factor would involve all the
technological development and advancement associated with the Malaysia. On Medicare will
sale its products over internet which will also drive company to utilise the technological
advancement in serving services of company (Suzuki and Vinocur, 2018). Company will also
channelize its promotion activities over internet at different social media and digital mediums
to promote the brand in market. In Malaysia mobile users and internet users are really high
people are very educated in Malaysia this will support company in channelizing strong brand
image even at the initial years of the launching this new business venture. Technology would
support company enhancing the business potential.
Environment factor: Environment factor involve different aspects like eco friendly products
and services. This is a recent development of business environment after the emergence of
using the eco friendly products and services (Broekhuizen, Bakker and Postma, 2018). On
Medicare is involved in selling medicines over internet that indicate that company is engaged
with all environment protection norms. Company will also involve in many social
responsibilities as a part of the corporate social responsibility to improve the brand value of
company. Environment factor allow company to channelizepositive brand image of company
in the market. This will support the new business venture to entertain profits even at the
initial years of the business venture.
Legal Factor: Legal factor involve all legal aspects of the business. Company needs to take
license and make contract in the initial stage of business to operate all its services. Company
will require to cope up with all different laws and regulations issues by government top

channelizes the business operations (Venkataraman and et.al., 2017). Coping up with the
regulations of all different laws play a crucial role for the company in achieving the long term
sustainability of business venture. Different laws like equality, anti discrimination and many
other laws new business venture needs have follow to sustain the operations efficiently.
The above, mentioned factors are different external factors involve in business
environment that play a huge role for the companies in channelizing business operations. All
these external factors directly involve in the business operations of company.
TASK 3
Strategies, sustainability and requirement of human resource
Recruitment
It is very important for the business to know the requirement and expectations which
they have from the employees would be matching the companies demand and needs for a
longer run. The employees have to be trained but they need to know and have the right
knowledge about the industry so that there would be better functioning. The company is new
which is why there are going to be inexperienced employees which would be coming in for
interviews and from that taking out the best is very important. The company will have to
analyse them and filter them through the different recruitment methods and processes so that
there would be better functioning and understanding (Kasemsap, 2017). On care is an
inexperienced organization which is why getting in the right human resource is very
important who are going to help the company be able to achieve the objectives and get a large
market share so that there is going to be a strong growth. There have to be right promotions
and information for getting the right candidates in the organization so that the operations can
be maintained. This is a new unique service which On Care is starting which is why the
company will have to be even more careful because there is a lot of risks which the company
is already taking and they have to analyse the customers effectively if the services and
products will be able to function in the market for a longer run and higher profitability.
Selecting: Human resource management can follow the best practices of selection to recruit
the best possible talents for different designated positions in organisation. Selection of
employees would be based on different stages involve in recruitments like aptitude test, group
discussion round, personal interview and the performance of candidate in all these stages.

Employees are among the key resources associated with the organisation. On Medicare can
meet up all its objectives with the support of efficient and skilled human resources.
Training and development: Training and development can support the employee’s part of
the organisation in enhancing the skills and capabilities of employees part of the organisation
(Sobaih, Ibrahim and Gabry, 2019). Employee training is the best practice company can
implement in process to enhance the growth of employee’s part of the organisation. This
practice would support employees in company to improve the growth potential not just at
internal level but externally as well.
Performance management: Performance management is an important practice On Medicare
Company can use in the operation management approach. This is the practice that involve
monitoring and controlling the productivity of employee’s part of the organisation. This
would involve proper monitoring over the productivity of each employee associated with the
On Medicare Company. In the initial time On Medicare can implement the 360 degree
performance management tool (Hong, Zhao and Stanley Snell, 2019). This would guide
employees to monitor the performance along with it would suggest in improving the growth
potential of employees. Proper monitoring on employee performance would suggest the
possible areas that can be developed by employee’s part of the organisation.
Motivation of employees: Employee motivation is another practice human resource
department can follow to enhance the growth of the On Medicare Company. Employee
motivation would support company in achieving all different growth objectives of company
even at the initial stage of the business. Following the concepts of Maslow Need Hierarchy
Model would support the organisation in meeting up different needs and requirements of
employee’s part of the organisation in order to motivate such employees. Motivation is
among the key tool that can support the organisation in achieving all different business
objectives.
The above mentioned HRM practices would drive the On Medicare i achieving all
different objectives part of the business organization.

Task 4
Key success factors
Success factors are all such factors and tools that indicate the success of company.
Following are the factors that indicate about the growth and success of company.
Profitability: Profitability is among the most prominent tool that project about the success of
company in market. With the support of profitability analysis On Medicare can assess the
growth and success of company (Hassan and Mahmood, 2016). Every business venture aims
to earn profits out of the business operations it has undertaken. Profitability is the outcome of
all the inputs management has put over the growth and success of company. If the profits of
company are raising that indicate that company is on a right track.
Market share: Market share is another critical indicator that project how successful the
company is in the market. Market share project how the presence of company is in the
market. Management of On Medicare can analysis the market share of company to assess the
growth and success of company in market. This is a key success indicator company can
channelizes to assess how much the company succeed in the market.
Growth rate: Growth rate of company can also be analysed to assess the success of company
in market. After the launching of the business On Medicare Company can assess the growth
rate of company. This will portrait the exact success or failure of company. Growth rate of
company is the perfect indicator that project how the company is growing in the market.
Brand value: Brand value of company is another key success indicator company can use to
monitor the success and failures of the organisation. On Medicare Company can assess the
brand value of company to evaluate about the success and failure of company. In order to
conduct the business operations and entertain growth company also requires coping up
effectively with all competitors in the market. By polishing the brand value of company with
the support of different marketing and branding campaigns company can boost its growth
rate.
CONCLUSION
This report has projected the business model like business canvas model. The model
comprises with all the stakeholders company get to engaged with in order to conduct the
business operations. Different external factors like political, economical, social,

technological, environment and legal factors will affect the business operations of company.
HR can follow the proper practices for recruitment, selection, training, performance
management to improve the growth of company.