Strategic Development Frameworks for BME Luxury Care Home in the UK

This report provides a detailed analysis of strategic planning and performance improvement within the context of BME Luxury Care Home, a registered business in England. The study begins with an executive summary that highlights the importance of performance and management in the health and social care sector. The report then delves into an internal memo discussing the benefits and drawbacks of strategic development frameworks, specifically focusing on PESTEL and SWOT analyses. The PESTEL analysis examines political, economic, social, technological, environmental, and legal factors impacting the care home. The SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. The report aims to provide a comprehensive overview of how these strategic planning tools can be applied to improve the care home's operations, address challenges, and capitalize on opportunities in the evolving healthcare landscape. The report explores the practical implications of these analyses, offering insights into how BME Luxury Care Home can enhance its performance and achieve its strategic objectives.

Performance Improvement
and Management in Health
and Social Care

EXECUTIVE SUMMARY
Performance and management are two very significant separate practices for all sectors like
health and social care, construction, utility, etc. In order to maximize and maintain
efficiency, both organizational and administrative tasks should be well coordinated by
companies. Controlling and tracking are often very relevant for this reason in which
managers evaluate success and performance of all companies while deciding on the
implementation of appropriate management strategies. BME Luxury Care Home - a
registered business operating in England is selected in the project report. The study deals
with many aspects, including a thorough review of strategic planning frameworks,
efficiency, financial ration estimates and residual profit etc. In addition, this task often
provides gains from the usage of economic added value and crucial assessment of non-
financial and complex success improvement frameworks.
TASK 1 is an Internal Memo
Internal Memo
To: Directors
From: Management team
Re:
Date:
Question 1 (LO 1)
BME luxury care home is a registered business that operates in United Kingdom. The company
wants to invest in a private owned nursing home. The reason of this proposal is that in the United
Kingdom population of aged people is increasing. The Directors' opinion is that in a homelike
setting they reach the best possible degree of personal attention. Long-term treatment covers
medical and non-medical care for people who need help in their everyday activities. To that
purpose, the organization's executive officer is expected to draw up an internal stakeholder report
describing the benefits and disadvantages of the strategic development frameworks appropriate

for the care home in England. The two strategic planning models are mentioned below in such
manner:
Strategic planning models- Strategic planning is used to establish an organization's long-term
goals and expectations. A business strategy is a structured text detailing these priorities.
PESTEL analysis- A PESTEL analysis is a promoters' system or method used for study and
surveillance of the macro - environmental influences (external marketing) that affect an
organization. Analysis of PEST or PESTEL is an easy and productive way in which the main
external (macro) factors which may influence an entity are defined during the scenario study.
These forces can offer an organization both chances and threats (Mone, London and Mone,
2018).
In order to determine the value of a specific sector, a PEST analysis is often carried out. The rule
is that the more negative forces that influence the market; the more difficult it is to do business.
The challenges that have to be resolved dramatically decrease the opportunity for income and the
business will clearly conclude no operations on this sector.
Political factor- Under political factors different types of aspects are included that can impact to
companies. These could include: economic financial, financial continuity or uncertainty in
certain countries, international exchange policies, monetary policy, labour laws, the rule on the
climate, export controls, etc. From the above list it is evident that political considerations also
influence organizations and their actions (Aguinis, 2019). Organizations must be prepared to
adjust and change their communications strategy appropriately to existing and expected laws of
the future. Due to this factor, health care sector also get affected. It is so because if policies of
government will change this may be difficult for health care homes like BME luxury care home
to sustain. Hence, it is essential for BME luxury care to coordinate with these political factors.

Economical factor- Economic factors have an enormous impact on whether and how successful a
company does business. The considerations include economic activity, interest rates, exchange
levels, prices, household and business disposable income etc. The macroeconomic and
microeconomic factors may further break down those factors. In any particular economy,
macroeconomic considerations discuss the control of production (Altin, Koseoglu, M.A and
Riasi, 2018). Governments using their key instruments in this respect being interest rate
regulation, monetary policy and budget spending. The way people invest their money is more
about micro-economic considerations. This has a huge influence in particular on B2C
organizations. All these factors are essential for BME luxury care home to consider because it
can affect on financial performance. For instance if interest rate fluctuates then this may be
difficult for them to acquire funds at lower cost.
Social factor- The areas affecting the common beliefs and behaviours of the company are often
recognized as socio-cultural influences. These include – demographic increase, spread of age,
health literacy, attitudes to a job etc. Such variables are of special concern as they specifically
influence the way advertisers perceive and motivate consumers. BME luxury care home must
consider all social factors in their policies like how is the culture of their nearest environment,
what is the age group of people who are living. If they will do so then it will be beneficial for
them to sustain in competitive environment.
Technological factor- This is a kinds of factor that is linked to implementation of new and
advanced technologies in the operations of companies. It is essential for companies to apply to
implement vital range of methods regards to updated technology so that they can sustain in
competitive environment. In the absence of applying new and advanced techniques this may
become difficult for companies to attract more number of customers as well as to generate higher
sales. In the BME luxury care home, new and advanced technology needs to be implemented so
that they can provide best quality of service to their customers.
Environmental factor- Over the past 15 years, certain aspects have only just risen to the fore.
They are becoming significant because of the increasing raw material shortages, pollution
targets, and business activities as ethical and sustainable enterprises, carbon footprint targets
established by governments. These are just two of the issues that advertisers encounter. Now and

more consumers expect that they ethically and where necessary from a renewable environment
manufacture the goods they purchase. This factor can affect BME luxury care home because if
environment of United Kingdom will not in the favour then they may be affected negatively.
Such as any natural disaster or any worldwide dieses can impact badly to all health care
industries.
Legal factor- Legal factors include-health and welfare, equality of access, advertising
requirements, market protection regulation, labelling of goods and the safety of food (Birdsall,
2018). It is obvious, in order to exchange effectively, companies must recognize what is and
what is not lawful. When a company is dealing around the globe, it is very difficult to do the best
thing because the various nations have their own set of laws. In the BME luxury care, all
legislation and rules must be followed in accordance of health acts of United Kingdom. If they
will do so then they will be able to serve their clients more effectively.
Advantages and disadvantages:
Advantages-
Provides a simple and user-friendly research system. Such as BME luxury care home can
research easily about potential impact of external factors on their performance.
Helps that the organization's influence and consequences of future risks. Same as in the above
care home they can assess future risks which can affect their performance.
Support and promote the advancement of the organization's strategic thought. In the BME luxury
care home, they can become able to promote their visions and missions to the customers.
Offers a method for finding and leveraging potential possibilities for the company. By help of
this, above care home can find out their positive possibilities which are exist in the external
environment.
Enables companies to determine both domestically and internationally the consequences of
reaching new markets. By help of this tool, BME luxury care home can assess all those elements
which can contribute them in finding new market areas.
Disadvantages-
The details used to make judgments can be oversimplified by consumers. Same as for above care
home, their customers can misuse the analysed information in accordance of own perspectives.

The procedure must be carried out frequently and companies sometimes have little
expenditures. For BME luxury care home, this is not possible to apply it on regular base
because it consumes too much time and cost.
In situations where users gather so much knowledge, they must not excel in 'paralysis by
examination' and overlook that the purpose of this method is to locate issues such that
interventions will occur. In the above care home they may face this issue due to complexity of
too much factors of this tool.
Users also have restricted exposure to public content details as a consequence of the costs and
time taken to obtain it. Same as in the BME luxury care home they may face higher cost if they
will apply it.
SWOT analysis- A strategic planning methodology designed to help an individual or company
recognize capabilities, vulnerabilities, resources and risks relevant to competitiveness or project
planning. This is established to be included in the early stage and may be used as a method to
determine the competitive role of the region or entity. It is a policy formulation technique
employed in the preparation of decision taking processes. To the degree the operating climate of
the organization coincides with the external world, the principle of strategic compatibility is
articulated. It is necessary to define the SWOT as they will advise more preparation measures in
order to achieve the target. First of all, in view of the SWOTs, decision makers should consider
whether the target is attainable. If the goal is not attainable, a different target should be selected
and the process repeated. In the aspect of above BME luxury care home, this method can be
applied in order to find out key strengths, weaknesses, opportunities and threats. Below
description of this tool is done below in such manner:
Strength- Strengths are intrinsic strengths or places that the organization sticks out, typically
compared to the rivals (Adler, 2018). Take into consideration the company's benefits relative to
the rivals, which is more than any other company that making the business special. Press the
clients what their weaknesses are and help them figure out or validate what they claim to be. The
strengths can include delivering a commodity of the highest standard, and at the lowest price,
having excellent client knowledge or skills which no other organization possesses. The key
strength of BME luxury care home is that they have a systematic process for management. Due

to which they are able to serve all customers who come in their care home. As well as they have
enough range of staff this is also strength for them.
Weakness- Weaknesses are the opposite way of strength. Business will develop the business in
these regions. The abilities of the rivals can be a source of weakness. One of the ways the
business may perform better yet is to analyze consumer service or speak to the clients. Poor
brand position or credibility, loyalty on a few primary staff, lack of executive expertise, and poor
cash reserves can be vulnerability. The main weakness of above BME luxury care home is that
they are unable to keep their operational cost. It is so because they are more focused on non
financial aspects due to which expenses are not managed.
Opportunity- Opportunities are areas where the business can excellently focus or devote more
resources to them. It might be important to analyze the strengths to find how to best leverage
them or recognise the shortcomings of the rivals and to find a means of allowing greater use of
them. New goods or services, new industries or a particular company category can provide
opportunities than they currently have. BME luxury care home has key opportunity to expand
their facilities all around the United Kingdom. They can raise funds from financial institutions
and can grow their market share.
Threats- External factors and developments in the market are threats that may threaten the
business' continued progress. Political regulation, a combination between two main rival groups
or a market move towards emerging technologies you are currently not selling, may be a risk.
The leaders of businesses will evaluate the danger of any hazard and create a strategy for
mitigating or resolving high risk threats. The threat for above BME luxury care home is that in
United Kingdom, there are too many aged people due to which they may face difficulties in
future as they have limited space at their care home.
Advantages and disadvantages of SWOT analysis:
Advantages: In strategy formulation and selection, SWOT analysis is important. This is a strong
tool, but it involves a significant subjectivity (Alexander, 2018). It is better seen as a reference,
rather than a medication. Productive organizations are building on their assets, fixing their
shortcomings and defending against internal and external challenges. They also monitor their
overall business environment and realize and take advantage of new opportunities more quickly
than their competing companies. For above BME luxury care home, this tool can be useful for

analyzing all internal aspects which may lead them in future to make strong policies and
strategies.
Disadvantages: SWOT Analysis is not unrestricted. This can make it very simple for
organizations to view the circumstances because organizations can ignore some key strategic
contacts. Moreover, it may be rather difficult to identify factors as strengths, disadvantages,
opportunities and risks because business volatility is strong. SWOT Analysis highlights the
significance of these four factors but fails to tell whether an individual should recognize them.
Same as in the above BME luxury care home, they may these issues of SWOT analysis. It is so
because under this only four aspects are assessed which do not cover all elements of market.
Recommendation- On the basis of above mentioned tools; this can be recommended that BME
luxury care home should apply PESTLE analysis. This is so because by help of it, they can make
proper analysis of external environment factors and their potential impact on their policies.
Justification- The reason of applying PESTLE analysis is that under it wide range of area or
factors are included. On the basis of it companies can make suitable decisions. While SWOT
analysis is suitable for small or internal analysis. Companies cannot rely on this tool for major
decisions. Same as the above BME luxury care home cannot depend on SWOT analysis model
because it cannot be useful for making long term policies and plans.
Task 2
Du Pont Analysis to shareholders
Primary performance analysis can be performed using the DuPont method. It is found that the
appropriate technique for the breakdown of the different drivers is used to estimate the return on
equity for a company (Mueller-Hanson and Pulakos, 2018). These drivers include asset turnover,
net profit margins and cash reserves. This allows investors to distinguish between shortcomings
and abilities while keeping a emphasis on the financial results cycle. It shows the increase of
company for shareholders to analyze their performance. The organisation needs to consider the
points for understanding the Return of Equity, and they are:
 Higher levels of net profit margins can affect the development of ROE.
 Organizations need to make efficient use of assets to boost sales levels.

 Maintaining good greater rates of financial flexibility.
The formula for DuPont Analysis:
DuPont analysis=Net Profit Margin x Asset Turnover x Equity Multiplier
Total Margin: It assesses the economic health of the organization that can be approximated via
financial data from the financial reports of the health systems. It is the revenue acquired by
deducting operating expenses, taxes and participation from the income of the healthcare
organization.
Total Margin=Net Profit for the year /Revenue x 100
¿ 57,881
3,269,404 x 100
¿ 0.0177 x 100=1.77 %
Total Asset Turnover: This ratio measures the efficiency of the companies with respect to the
utilization of the commodity to sustain the amount of revenue of the company. The higher
income margin supports low asset turnover and vice versa:
Total Asset Turnover=Revenue /total Asset
¿ 3,269,404
2,502,992 =1.306

REFERENCES
Books and journal:
Mone, E.M., London, M. and Mone, E.M., 2018. Employee engagement through effective
performance management: A practical guide for managers. Routledge.
Aguinis, H., 2019. Performance Management For Dummies. John Wiley & Sons.
Altin, M., Koseoglu, M.A., Yu, X. and Riasi, A., 2018. Performance measurement and
management research in the hospitality and tourism industry. International Journal of
Contemporary Hospitality Management.
Birdsall, C., 2018. Performance management in public higher education: Unintended
consequences and the implications of organizational diversity. Public Performance &
Management Review, 41(4), pp.669-695.
Adler, R.W., 2018. Strategic performance management: Accounting for organizational control.
Taylor & Francis.
Alexander, J., 2018. Financial planning & analysis and performance management. John Wiley
& Sons.
Mueller-Hanson, R.A. and Pulakos, E.D., 2018. Transforming performance management to drive
performance: An evidence-based roadmap. Routledge.