BUS123 Strategic Management Report: Regis Healthcare Analysis

This report provides a comprehensive strategic management analysis of Regis Healthcare Ltd., an aged care provider in Australia. It begins with an executive summary highlighting key challenges and opportunities within the industry. The report then delves into the external environment using PESTLE analysis, examining political, economic, social, technological, legal, and environmental factors. It assesses the competitive landscape, identifying major competitors like Bupa, Opal, and others, and analyzes their strategies and resources. An internal analysis, employing the VRIO framework, evaluates Regis Healthcare's resources, capabilities, and core competencies, emphasizing its financial resources and human resources. The report concludes by summarizing key findings and offering insights into the company's strategic position and future directions within the dynamic aged care sector.

STRATEGIC
MANAGEMENT

1
Executive Summary
Aged Care business is facing many kinds of challenges and at the same time they have large
numbers of opportunities available with them. This report is going to analyse the external
environment of Regis Healthcare Ltd. where it is seen that political and legal environment of
the company is not so much supportive to the business hence they will have to take special
care to these factors. This report also provides the industry’s competitive environment which
also illustrates the fact that competitive is increasing at much faster rate and some of the
major competitors of the company are Bupa, Allity, Estia, Japara and Opal. In the last section
of the report there is illustration of the internal analysis which illustrates about the fact that
the capability of the company is its numbers of facilities at different places while its core
capability lies in its human resource and financial resources
Content

2
s
Introduction...........................................................................................................................................2
External environment............................................................................................................................2
Industry competitive environment.........................................................................................................3
Internal analysis.....................................................................................................................................6
Conclusion.............................................................................................................................................7
References.............................................................................................................................................8

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Introduction
Aged care business in Australia is expanding. This is because of the facts that families do not
have time for taking care of the aged people due to their day-to-day activities. It is seen that
families leaves aged people at such care houses. The industry is facing many types of
challenges and has opportunities (Radford, Shacklock and Bradley, 2015). Regis Healthcare
Ltd is such an Aged care provider and it is listed on the Australian Security Exchange. This
company has generated revenue of $647.1m in the financial year of 2018. It is having 7,078
operational places providing 63 facilities. In this report there will be description of external
environment. This report will also do competitor’s analysis. In the last section of the report
internal analysis of the industry is done.
External environment
In order to understand the external environment the model that can be used is PESTLE
analysis:
 Political: The political instability in Australia in last few years has not shown serious
impact on the growth of this sector. The major reason for it is the fact that policies of
the governments have been supporting such care houses especially in terms of tax
benefits. Regis also received additional federal government funding.
 Economic: In the past few years when the growth of the Australian economy in the
shadows of global economic downturn has been slow. This has impact on the
government’s spending on providing aid to such aged care facility providers
(Australian Institute of Health, 2012). However the internal cash flow of Regis
Healthcare limited is excellent.
 Social: People are not getting time to provide the care to the old age people to the
level they need. It is due to this that admissions at such cares have increased.
 Technology: Technology has supported companies in this industry to perform
efficiently. The data technologies and the use of advance care oriented technological
equipment have helped care providers to provide holistic care. However the costs of
these technologies are high which is adding to additional expenses of the company.
 Legal: Legalities against the abuse of old age people as well as improper handling of
these people have become strict. The Aged Care Act 1997 states some rules and every

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organisation have to follow it in order to avoid any kinds of legal compliances. Regis
in the year 2018 lost sixth of its value when the government announced a public
inquiry against misconduct of aged people (Isherwood and King, 2017).
 Environment: Aged care organisations also have to look at each and every aspect of
the environmental laws at the time of providing the care.
Industry competitive environment
Industry competitive environment suggests that most of the companies are moving towards
the technology oriented business. The industry’s rivalry has become intense and it is
increasing with numbers of aged care units in different parts of Australia. This can be
understood by the framework illustrated below:
Competitor’s objective: To become the leader in the industry.
 Competitor’s strategies: They are concentrating on improving the quality of care with
the help of technology that is available with them as well as improving the skills of
the human resource they have. There is an intense marketing done by the rivals in
order to stay ahead.
 Competitor’s resources: There are many competitors who are being aided by
government and hence they have huge amount of financial resources. They have huge
technology backup and at the same time higher amount of skilled workforce
(Sluggett, et al 2017).
Competitors of Regis Healthcare Ltd. are:
 Bupa: It is the biggest for-profit aged care provider in Australia and has generated
revenue of $7.5 billion.
 Opal: They are one of the biggest residential care providers with more than 6500
residents (Parvazian, et al 2014).
 Allity: This Company operates in the NSW, South Australia and Victoria with 44
homes.

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 Estia: They are also getting similar aids from government as Regis. This company is
valued at $725 million with 69 facilities in Australia (Towart, 2017).
 Japara: They have more than 5000 dedicate staffs serving more than 3500 people.
This company also operates in all parts of Australia.
Customer Satisfaction
Bupa
Opal
Japara Regis
Quality of Care
Allity
Estia
Fig: Perceptual Map of Aged Care in Australia

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Internal analysis
In order to analyse the internal resources of the firm the use of VRIO analysis can be
effective.
Resources Valuable Rare Inimitable Organised Competitive
advantage
Facilities at
numbers of
locations
Yes No Yes yes Temporary
competitive
advantage
Human
resources
Yes Yes Yes Yes Sustainable
Competitive
advantage
Technology
use
Yes No No Yes Partly
competitive
Financial
resources
Yes No Yes Yes It provides
competitive
advantage
The financial resource of the company is its core competency. This firm not only have good
amount of financial resources but they also have financial support of the government which
allows them to invest in a proper manner. The core competencies also include their customer
relationship management team (Regis, 2020). This is the major reason why this company has
been able to maintain its name even when the government has initiated a public enquiry
against the company.
Its capabilities include the numbers of types of services they are providing as a part of the
aged care services. Their trained professionals are able to provide the health facilities to the
aged people who are facing different kinds of diseases and majorly include dementia. They
are operational more than 7000 operational places in Australia (Regis, 2020). This is also
possible because of the fact that in the design of their services they include the people as well
for whom they are serving.

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Conclusion
From the above based report it can be concluded that external environment of the Regis
Healthcare Limited is changing at much faster rate. The political and legal factors need to be
monitored carefully so that it does fall into any kinds of legal compliances. The internal
industry competition is very higher as there are large numbers of international and national
aged care homes that are coming up. Some of the competitors like Bupa has larger market
share. The capabilities of the company include such larger numbers of locations at which they
are working with 63 facilities. Their core competency lies in its human resource that it has
and the financial base that they have.

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References
Australian Institute of Health, 2012. Residential Aged Care in Australia 2010-11: A
Statistical Overview (No. 36). AIHW.
Isherwood, L. and King, D., 2017. Targeting workforce strategies: understanding intra-group
differences between Asian migrants in the Australian aged care workforce. International
Journal of Care and Caring, 1(2), pp.191-207.
Parvazian, S., Charlesworth, S., King, D. and Skinner, N., 2014. Developing job quality
benchmarks in Australian aged care services. Centre for Work+ Life, University of South
Australia.
Radford, K., Shacklock, K. and Bradley, G., 2015. Personal care workers in Australian aged
care: Retention and turnover intentions. Journal of nursing management, 23(5), pp.557-566.
Regis, 2020. Aged-care-facilities. [Online] Available at: https://www.regis.com.au/aged-care-
facilities. [Accessed on 16th Feb 2020]
Regis, 2020. Regis aged care. [Online] Available at: https://www.regis.com.au/. [Accessed on
16th Feb 2020]
Sluggett, J.K., Ilomäki, J., Seaman, K.L., Corlis, M. and Bell, J.S., 2017. Medication
management policy, practice and research in Australian residential aged care: current and
future directions. Pharmacological research, 116, pp.20-28.
Towart, L., 2017. Australian retirement living & aged care investment performance.
In Pacific Rim Real Estate Society Conference.