The company and staff follow all state laws and regulations required within the home health industry. The home health industry is comprised of two types of care companies: Those that offer medical which is considered home health and the others are considered in-home care and they offer non-medical services. Harrows is a licensed home health and in-home care company which offers medical and non-Medical Services. Harrow’s is able to offer both types of services due to the licensed staff we employ as well as being a licensed home health company in the state of California.
The most dominant economic feature is market growth rate. The home health industry is one that is fast-growing due to the extended ages of the population as ell the potential profits of these companies based upon the current ones of the baby boomers. Home health companies generally cater to clients and the families of clients 70 years and higher. As the baby boomers age the need of services grow. Families have a choice between smaller local companies and larger national ones to care for their families. (AY) Driving forces: Changing societal concerns attitudes and life-styles .
With physical fitness, healthy life-styles and overall nutritional information increasing has led to people living longer. Our families are always important however we do not always have he ability nor time to care for our disabled child, disabled adult loved one or our aging parents so services that offer assistance to this demographic group are a commodity and in high demand. Most of us lack the skill and time to assist our ailing family members and care for them as we would desire them to be cared for. With this said the importance of companies such as Harrow’s and the services they offer are in demand and a high commodity.
Industry growth: Once again with individuals living longer and the complexity of our lives today the need for companies to assist our ailing family members are going to continue o grow moving forward. Regulatory changes: With the importance of caring for our elders, disabled children and disabled adults the government has seen the opportunity that those who would take advantage of the demographic group could come into play; And has seen fit to move towards stricter adherence to laws with regards to home health care in those companies that offer such services.
These are the reasons that will keep Harrow’s moving forward with positive growth in the future. (AAA) Explain how you provide for that force in your strategic plan: Harrow’s plans to make sure their employees are all well trained and versed in all deader and state guidelines for the care of their clients. Harrow’s can easily adapt to any new regulations that come about by continuing training and refreshers for their staff to keep them abreast of any and all industry changes and requirements.
As the company grows and gets busier they will continue to hire and train new employees to assure to adhere to compliance in order to maintain quality care and services for their clients this will help with the overall customer service and regulatory aspects of the business. As well as ensure that Harrow’s can continue to hire well-qualified employees. Harrow’s can partner with local vocational institutions this way they will have access to students before they can be hired by the competition in addition to this Harrow’s will continue to pay each employee a competitive salary based upon the current marketplace. AY) Differentiating competitive characteristics of your industry: Price: this is always a major differentiating characteristic in the home health industry. Many companies that charge a cheap rate may not take quality care of their clients based upon those employees no being licensed nor qualified to care for your family members. They also may not have the knowledge needed when certain situations arise to assure the safety of your family member. Saving money with regards to caring for your family may create undue hardship on the family members that need care.
Quality: Companies that simply tried to take on as many clients as they can simply to be profitable without regard for staffing concerns cannot provide quality care stretching their employees beyond their means to provide quality care. So when companies such as Harrow’s who maintain the proper ratio between clients and staffing can provide safe as well as quality care. This is a characteristic that continues to affect home healthcare because those fly-by-night and unqualified companies continue to try to get rich quick. AAA) Analyze where you want your company situated on a strategic group map that you draw using these differentiating competitive characteristics. The Strategic Map for Harrows Help at Home in its current marketplace is group against four categories of companies National Companies and Franchises (NAT. ), Regional Companies(ERG. ), Mom & Pop Shops(M/P) and Independents (MIND. ). The Competitive Characteristics that are being considered are Quality and Price. The usual standards for the National companies are usually considered High or Good Quality of Care However a is being paid for it.
The National Companies that play a role in the Sacrament o area are “Accent Care” and “Home Instead” The Regional Companies such as “Adds Care” and “Golden Years In home Care” also generally offer a Good level of care for a better price; however their prices can still be considered on the higher side of the marketplace. Then comes the Mom and Pop Companies which Harrows would actually be classified as along with “Visiting Angels”. The Mom and Pop Companies are known more for the Cost Savings then they are known for High Quality Care.
This is where Harrows has been able to excel, they offer a higher quality that is better than the larger Regional Care providers and just a notch below the National Entities. Finally we have the last group which are the independent and freelance care providers which are simply known for inexpensive care but can be considered high iris as well when it comes to safety and liability. Harrows position in the market and on the map is one that has been on the rise and is moving towards becoming a regional company which it can become in the next 3-areas on its current course ND strategic plan. AY)Key factors that will impact your company success. Cost: in order to reassure that we separate ourselves from the other competitors in our marketplace; we provide quality care with licensed and certified employees. Our pricing is very competitive for the services we provide we will continue to stay that way. We also offer incentives for both prepaid services as well as price reductions for longer contract terms. Online presence: Harrow’s continues to offer an online presence that helps clients and their families to access scheduling and servicing information to adjust care plans whenever necessary.
Also the strong online presence helps keep overall advertising costs low and visibility high especially considering that traditional advertising such as Yellow Pages, radio and Television ads can be especially costly. This helps Harrow’s gain and keep a competitive marketing edge by targeting its niche audience. Online advertising enables Harrow’s to also advertise on other sites such as scraggliest and the pay per click Group offers. Technology: With all the new legislation and current HIPPY laws it’s important that Harrow’s stays current with the software that it Uses.
The software program allows privacy of its clients as well as the ability to keep detailed and extensive records for both the employees as well the customers themselves with the laws that are in place detailed records are mandated to be saved for a minimum of 7 years. The software programs also assist the company in keeping their costs low and efficient since it helps with scheduling, payroll services and the running of reports to see where the company is currently at with costs, expenses and profits.
The Software also helps with issues such as if a caregiver cannot make heir appointment for care services it has the ability to scan the company’s roster to see others that can possibly fill that void that had been left. (AY) Analyze the impact that each of the five types of competitive forces will have on competition in your industry. Rivalry: Harrow’s is competing for for in-home care services of disabled children, disabled adults and seniors in the Sacramento area. Competitors include both licensed and unlicensed private caregivers, senior care homes and national franchises.
Harrow’s is extremely competitive in price because of its reduced overhead with he help of the existing software programs as well as the limited need for an oversized brick and mortar location and no franchise fees. With this said there is extreme flexibility that allows quick decision-making as well is the ability to price services appropriately. Entry barriers: Currently the entry into home health and in-home care is extremely difficult based upon the new and changing legislation. Even with the current growth of the marketplace the ability to go through licensing qualifications is almost impossible in the state of California.
Bargaining power of buyers: With the families of baby boomers looking to try to save as much as they can while not losing the quality of care for their families it sometimes can lead to slow or reduced client pool with most insurance companies who provide long-term care policies strictly wanting to place the baby boomers into care skilled nursing facilities versus allowing them to stay home with in homemade providers. Substitute Products: With the competition being what it is in this Lucrative industry there is always the lure of “easy money ‘ considering it seems from the outside simply a “babysitting’ type job.
However this is the furthest from the truth, this is a industry of care for those whom have a special need and at times complex ones. There are those whom try to get into the industry without doing the due diligence that is required. These are essentially the “non licensed” companies/agencies that try to advertise as “compassionate or elder day care” type. By trying to enter the industry under this guise they try to circumvent the requirements and try to work for less than the standard care costs based upon industry standards and thusly would be considered a “substitute product.
This so called competition is strictly price driven and not actual care quality based upon the actual services these type of companies provide. Supplier Bargaining power: This industry is tied to “care services” so not the typical supplier so to speak. However Harrows is a “Supplier of Care Services” as are the other competitors. Strength of Suppliers in this case are at their highest when specialized services may be required, or if they are middleman because it is felt by the clients that there are no substitutes for their services, which drives up the cost for services hat Harrows may charge their clients.
These are but 2 simple examples of Supplier Bargaining power. (“Porter five forces analysis,” 2015) (Bal )Vision Statement To administer and manage the highest degree of quality comprehensive patient and family centered care to all patients within the confines of available resources and services in order to attain and/or maintain the patient’s highest level of wellness. (BE)Mission Statement The mission of Harrow’s Help At Home, Inc. Is with high ethical standards, principles and heart, a commitment to provide clients with the best in-home care possible.
We believe that our patients deserve compassionate, honest, and reliable care from only the top home care professionals, who go the extra mile to provide it. (83) Develop a distinctive competency to distinguish your company from competitors. Competition for in-home health care comes from multiple sources, skilled nursing facilities, independent contractors, national franchises and the mom- and-pop local companies. Harrow’s intent to maintain its market share and continue to grow despite being considered a “local mom-and-pop shop” is based upon the more than 15 years of service at a high standard.
This 15 years of service has gained recognition and respect in the region. Harrow’s will continue to separate themselves from the competition by focusing on providing quality care, personal service and a better overall customer experience then that of its competition. What a Harrow’s does to maintain its distinctive competency and the uniqueness of what we do best is the quality of customer intimacy and superior service that we offer even with the low cost which keeps us more they competitive in our local marketplace. This makes us the best fit for our customers and clients.
Simply put we offer premium services in our local marketplace at almost a wholesale price point. (Jung & Polyps, 2014) (BE) Describe an Example of how the Company could Capitalize on a Market opportunity. Most market research indicates that baby boomers prefer to use local services that come with strong word-of-mouth recommendations, they prefer to deal with people they know and trust as well as requiring competitive pricing. Harrow’s is a perfect example of this since they use a ‘best cost provider” strategy. This hybrid strategy gives Harrow’s clients the best costs for top-of-the- nine care and services.
Even with in-home health be considered a niche service they can receive top-flight care and modest pricing. One reason Harrow’s can Capitalize on its Strategy of being a “best cost provider” is because Most, if not All of the competition have large overhead expenses. The National Companies/ Franchises have higher office expenses in part due to the cost of Franchise fees, Office Spaces and Larger Salaries based upon what the Franchise pay on averages-Some of these are also apparent for the Regional Companies as well with regard to the high cost of the office space.
Harrow’s currently is being run out of an office that was build off of the owners home. This has allowed at least the overhead expense to be a non factor as well as Harrow’s not have any Franchise fees or larger than average salaries based upon a national corporation. Another aspect that Harrow’s can capitalize on is offering “live-in services” for their clients. Currently there are no other companies that offer “live-in” services based upon it not being cost effective for the larger companies with their current expense structure.
Harrow’s current expense structure allows them this opportunity; which allows one care giver to offer these services versus the larger companies need to use 3 different care givers to fulfill this function. (Armrest, 2013) (85) Analyze one External threat to the Company. One of the largest threats for in home healthcare clients are elderly abuse and fraud. These threats can sometimes come under the guise of well-meaning caregivers whom are truly predators; and without the strict protocols and criteria in place to assure that the proper background checks are run to protect our clients and family members.
Harrow’s will not allow any caregiver to start service or the company without proper references and all necessary background checks to be complete and put in place. Part of the services and protocols would consist of making the proper authorities aware if anyone were to cross that line and step out of bounds. Harrow’s has field managers that do periodic drop in on clients to reassure them that they are important and that there needs are of paramount importance. These observational visits help maintain a checks and balance so as to protect the client as well is the company’s interests. Merrill, 2011) (BE)Propose one business-level financial objective that fits the Company and Situation. The definition of a Financial Objective is “An objective set by a company in which the target state is measured in monetary terms, such as a certain amount of profits, or a certain percentage increase in profits over a period of time. ” For Harrow’s the Objective is Revenue Growth; The current share of the market that Harrows holds currently is Approximately 5% and the Goal in the upcoming year is to improve that to 10% and then by year Two be at 15% .
This increase of clients and share in the market is a 300% overall increase going into year 3; and this overall improvement can both give an increase revenue without having drop in quality of care. Also the increase in clients brings increased revenue which also equates to increased profitability. Measure Success/Achievement: This can be measured by simply comparing the company’s profitability from last year to this. The Performance metrics that will be used to assist in evaluating this plan will include profit margin, number of cases staff, the number of clients, number of assessments, the number of trained staff and gross revenues.
The profit margin will be used to evaluate how the company is performing with regards to cutting expenses and also increasing its revenue. Having the number of cases staff along with a number of assessments done are also important to help with regards to evaluating the growth of the marketplace obviously larger numbers of clients equate to increased market share acquired by the company the the overall increase in revenue. Strategy: Increased marketing of the business and advertising is the main strategy.
By marketing at senior centers as well as with conservatories and fiduciaries, these help reach out to baby boomers current network and comforts zones. As well as having an online presence this will also improve with overall advertising and give he possibility of connection with the families of those who need care whom are the more “connected” generation. Once again online advertising expenses are minimal compared to traditional media and print and cost far less than television and radio advertising.
This gives the business the ability to gain a competitive marketing edge by targeting its niche audience as well as the online presence can also advertise on sites that only charge on a pay per click basis which keeps costs low and revenues high. (Ingram, n. D. ) (BE) Propose one Functional-level strategic objective that fits the Company and situation. Functional level strategic objective are “Functional business strategies Ithacan help smaller businesses to evaluate the effects of plans and goals specific to the industry they operate within. This business strategy is often used by small businesses such as Harrow’s to help focus on and manage the business’s constituents parts. By developing individual goals and objectives for the company helps with specific functions in the company, so that the owners and managers can assign the right people and resources to the right tasks. This is extremely important Harrow’s and how they continually want to maintain ND increase customer satisfaction and loyalty. Currently Harrow does not track satisfaction and loyalty outside of monitoring and maintaining its client base.
In order to accomplish this task with regard to customer loyalty Harrow’s plans on issuing referral credits and loyalty discounts to any new business that has been referred and for those clients that have been with them for extended periods of time. The start date of this program will be October 1, 2015 and the kickoff will include one free week of care for each referral that goes to start. Depending on he type of care the client requires this can be a $500 value.
This program can incentive customers and their families to refer business to Harrow’s. Notices will be sent out to the customers and their families in August 2015 advising of the program. The initial goal will start at 25% of the existing client base would be able to provide a referral that can go to start of care. Harrow’s also intends to start sending short customer satisfaction surveys to the families and fiduciaries as well is the customers to assist in monitoring the overall performance of Harrow staff and the company itself.
Harrow’s has recently upgraded its software system that is used for scheduling payroll client logs and care plans however in addition to these services the software helps set reminders for birthdays anniversaries and important dates to the clients and their families which allows Harrow’s to maintain a more personal touch to their business. This type of stay in touch software allows reports to be printed and faxed or emailed to care staff allowing them to maintain excellent client service. (Bradley, n. D. (C 1) Explain how each of the following 10 principal managerial components can e used in the strategy execution process. Building the organizational capabilities required for successful strategy execution means hiring a Staff for the organization with managers & employees capable of executing the strategy well. This aspect is crucial, Harrow’s will ensure that they have managers as well as employees with diverse skill sets. This allows for the creation of a team that is more than capable of executing the company strategy incorporation of diverse skill sets enables those individuals to bring valuable asset to the company.
It will be important for the management team and impotently trained team members to be at the forefront to execute the strategy properly. Institute policies and procedures which facilitate strategy execution. Harrows will continue to review current policies and protocols to ensure that there are minimal, to no ambiguous policies as well as provide clear communication and guidance that control procedures. The care staff needs a clear direction which allows them to act within the set boundaries and parameters they are given and held accountable for.
Adopt best practices in business processes that drive continuous strategy execution activities. Harrows will continue to invest in training and continuing education for the care staff on a monthly basis to ensure they meet California State requirements to ensure they meet and maintain their current licenses. As well as maintaining strict internal code of conduct to ensure that employees are complying with environmental health and safety standards such as OSHA regulations and HIPPY laws. Allocate a sufficient budget towards resources toward strategy execution.
Harrow’s will continue to invest in employee development through continuing education and training assisting lower-level associates such as certified home lath Associates and certified nurses assistants towards their goals to elevate their position be it a EACH becoming a CAN or a CAN becoming a licensed vocational nurse or LEVY. This investment in their employees by helping them grow and excel helps Harrow’s retain staff and strengthen their current position through education and loyalty. This program of employee investment also helps minimize lower performers and helps them promote from within.
Having a staff that continues to grow educationally also gives Harrow’s a leg up in executing their strategy as well is grow the business. Install information and operating systems that enable the company personnel to carry out their strategic roles proficiently with regards to technology and in-home care as aforementioned the software programs allow management staff to match caregiver to client based upon need it also allows comprehensive documentation to be reviewed and notated for each client and lastly allows schedules to be met through unavailability of caregivers staff matched up with clients needing assistance.
Tie rewards and incentives directly towards the achievement of strategic and financial targets. Harrow’s has developed an incentive and rewards program for their staff that is directly tied towards the achievement of both financial and strategic goals the company has set forth. Instill a corporate culture that promotes good strategy execution. Harrows continues to encourage and foster a culture organizationally that is positive and that also empowers its team members as well as encourages them to contribute towards the company’s decisions.
Through this culture it creates unity, partnership and plain old teamwork through hard work. Exercise strong leadership needed to propel strategy implementation. Managements job is to consistently manage daily operations and closely monitor staffing in client needs. They will maintain the daily review of care plans by client “drop inn’s” and “check-in” calls with caregivers. This reassures that caregivers will execute client care plan strategies as well as achieve operating excellence daily.
Overall expectations are that corrective actions will occur on an as needed basis to maintain and achieve strategy execution and performance results. Which insures that all of the company’s efforts match with Harrow’s overall mission. Harrow’s as a company along with its strategy will continue to evolve as isolations and laws also evolve towards the betterment of its industry. As clients expectations and needs change so will Harrow’s strategy if need be.
Harrow’s will continue all its efforts and activities to stay in line with their customers needs and its overall mission as a company. (Houghton&Mifflin&Harcourt, n. D,) (CO) Illustrate the actions you would take to closely align the entire company’s effort to the company’s mission. Mission Statement The mission of Harrows Help At Home, Inc. Is with high ethical standards, provide it. Harrows intends on creating and maintaining an environment of high ethical tankards and compassion.