Essays on Fisher and Paykel Healthcare: Just add Water Case Study

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Introduction Fisher and Paykel Healthcare: Just add Water (FPH) is a New Zealand business that was established in 1934. Since its establishment, the company has become a powerful global player that specializes in making diverse range of appliances in the health sector. The company remains optimistic that growth should be its platform of operation in the world and in the medical equipment sector. In 2006, Michael Danielle, Fisher and Paykel Healthcare: Just add Water CEO, surveyed the competitive landscape and established that there were more opportunities the company can exploit in the market.

For instance, new applications for humidification beyond their intensive care stronghold were developing all the time. Also, the obstructive sleep apnoea (OSA) indicated chances of growth in future given the massive awareness campaigns being conducted. While this remains relevant in the minds of the CEO, the biggest question that remains unresolved is how and which proper ways to initiate in order to realise growth. Therefore, the case analysis details the current business environment that Fisher and Paykel Healthcare: Just add Water is exposed to, and the visible future potentials.

Drawing from the findings, the cases analysis evaluates the strategic decisions or pathways the company needs to undertake. The company Fisher and Paykel Healthcare: Just add Water CEO, Michael Danielle, observes that growth strategy for the company is inevitable, but the way to do it is what remains challenging and confusing. Fisher and Paykel Healthcare: Just add Water prospects for growth are manifested by increasing financial growth of the company in terms of profits, wherein 2006; it grew by about 17.2%. Also, the market opportunities OSA are prospective, with future growth trends linked to increasing population of aging people, health awareness campaigns, and more patients seeking healthcare products.

Therefore, as a company that has future growth prospects as well as desires for competitive advantage, Fisher and Paykel Healthcare: Just add Water has no better alternative than conducting strategic assessment of the wider business environment it operates in so as to identify the opportunities available and how to exploit such opportunities. Subsequent sections are therefore used to presents summary of analysis of the business environment Fisher and Paykel Healthcare: Just add Water operates in. Macro-environment analysis Macro environmental analysis involves studying about and understanding external and wider outside business environment a business operates in (Muller, 2009).

The process in most cases is facilitated by the use of analytical tool known as PESTEL (Gorgenlander, 2011). PESTEL Analysis involves making strategic decisions based on evaluating external business environment in order to identify and evaluate critical factors that affect or influence operation of business activities (Gorgenlander, 2011). PESTEL is acronym for Political, Economical, Socio-cultural, Technological, Environmental, and Legal factors (Williams & Green, 1997). These aspects are important for any business organisation with a vision establishing and implementing a successful strategic plan.

Also, these external factors usually affect the performance of a company and planning process, and are not within the control of a company. Analysis of the macro-environment of Paykel Healthcare: Just add Water shows that operations of the company across the countries it has established presence are not threatened by political instability such as violence or wars. As a result, the confidence of the company in international market remains intact. Bureaucratic systems of Medicare, Medicaid, Health Insurance, and regulatory regime of FDA in USA tend to have impact on the growth strategy of the company in the market, especially when it is considered that USA is one of the largest markets for the company.

On overall, prospects of the company regarding the macro-environment are reflected in the political-legal barriers that are reducing in many countries, hence giving the FPH opportunity to expand its market base internationally. Besides, the regulatory regimes across countries is becoming flexible, changes in global demographic aspects, especially in western industrialised world are being realized, and emerging new markets in different countries in Europe, Asia, North America, and Latin America.

The essence is that the wider macro-environment for FPH looks bright with more opportunities as compared to threats.


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