Strategic Improvement Plan for ExecHealth Corporation - Example

mраny Rероrt Name Course: Tutor: Institution: Date: Abstract The report develops a strategic improvement plan for ExecHealth Corporation, an organization seeking to increase its customer base, market influence, and profitability. In this case, the report develops and recommends four strategic approaches through which the corporation can achieve its strategic goals. The discussed approaches include market segmentation, operations management, human resource management change, as well as financial decision-making structure change. In its analysis, the report establishes that a joint application of these strategic approaches will enhance increased business performance, customer satisfaction, retention, and market goodwill. Consequently, the report establishes that ExecHealth is a viable business partner that has the potential for future expansion and competitiveness in the fitness industry. Table of Contents Abstract 2 Table of Contents 3 1.0 Background 4 2.0 Implementation plan 4 2.1 Operations Management 4 2.2 Marketing Segmentation 6 2.3 Human Resource Management 8 2.4 Financial Decision-making Structure Change 10 3.0 Conclusion 12 References 14 1.0 Background ExecHealth Corporation is a fitness club offering a range of diverse fitness services. Such range from physical exercise services, through healthy dieting to professional consultations on fitness. Mainly, the organization targets the corporate world hedged on recent studies that employee physical fitness influences their productivity. As a result, organizations have resolved to develop employee fitness programs to facilitate their increased productivity; this presents a market opportunity for the company. Despite the market challenges and increasing fitness industry competition in the UK, the corporation is bound to succeed and improve its market performance. In this case, the corporation developed a strategic management plan to increase its membership, improve service quality, and increase profitability. However, the current organizational analysis reveals challenges towards the achievement of these objectives. Such challenges include unstable human resource management function, operations management challenges, customer base structure, and financial decision-making challenges (Sims, 2007, p.5). This report, in the view of the company as a viable business partner, develops a strategic plan implementation framework through which the corporation can overcome the enumerated challenges and achieve its strategic goals. 2.0 Implementation plan 2.1 Operations Management Operations management is an organizational function charged with the responsibility of ensuring seamless of flow of organizational activities on a regular basis. In this case, operations management serves an important role in the operationalisation of organizational tactical decisions that collectively contribute towards strategic objectives achievement. Diverse clients, both corporate and individual base ExecHealth corporation activities on numerous projects. In particular, the corporate clients, of whom the club highly targets, contract the club to train and involve their employees in physical exercises to boost physical fitness. Such requests are contractual and last in the period between short and long run. As such, in order to nature operations efficiency, the club needs project management expertise to manage the respective projects efficiently. Diverse clients possess different needs, expectation and satisfaction levels. Consequently, ExecHealth needs to manage the respective projects differently. The organization, through its newly acquired high tech equipments, has both the capacity and ability to manage multi projects and attend to diverse clients simultaneously through appropriate project management skills. This can be achieved through the stratification of the respective clients, each as a definite project. One-step towards ExecHealth effective management of the projects is the development of a client’s needs list. From a programs onset, the corporation should develop a list of the client’s needs and expectations from the project. In developing such a list, the project managers should consult with the clients, and directly establish the project deliverables the clients expect. It is upon the development of these deliverables that such projects can be managed effectively. Upon the establishment of project deliverables, the organizational project managers should develop a project scope. This is the point at which the concept of operations management intervenes. In this case, the organization should establish the project requirements necessary to meet and exceed the clients’ needs. This includes the decision on appropriate locations, activities, as well as timelines. Location influences highly on accessibility and convenience. The choice of accessible locations enhances ease of access and increased satisfaction to participants. Consequently, such corporate members are likely to develop loyalty to ExecHealth. On the other hand, the nature and activities are determined on not only the expected deliverables but also the involved participants. Thus through operations management, the organization will be able to establish any unique participants characteristics that could necessitate unique activities, or negate the rationale for others. In addition, operations management through project management enhances appropriate costing and budgetary allocations (Tonnquist, 2009, p.141). Through efficient management, ExecHealth would accurately determine and forecasting respective project costs. As such, the organization would appropriately budget for such activities Moreover, accurate estimations enable rightful costing and pricing of the respective projects. As such, ExecHealth would enhance its increased profitability through appropriate costing of its projects. Moreover, this would enhance project success rates that subsequently translate into increased customer satisfaction. Conducting successive successful projects would enhance the corporation’s reputation increase. Consequently, customer retention rates would increase. In the long run, this approach would attract more customers into the organization, this achieving its strategic objective of increasing its customer base. 2.2 Marketing Segmentation As identified in ExecHealth strategic plan, the club targets to diversify its membership proportion representation. In this case, the club seeks to establish gender equality, as well as diversification in the age and social status and background representation in its membership structure. This implies that the club intends to attract members from diverse backgrounds and social status. As such, it ought to develop a strategic approach that is appealing to all these groups. Cant (2006, p.105) argued that an appropriate strategic approach for corporations that seek to attract a diverse customer base with different market needs and interests. The author established that for organizations to attract such a customer base, they should segment the market. Market segmentation allows for the grouping of customers with shared characteristics together for ease of addressing of their needs. In this case, organizations target each segment at a time. Market segmentation is based on customer analysis and grouping. Consequently, the first strategic approach under segmentation is conducting a market analysis. ExecHealth should analyze its customer base based on both demographic and psychographic factors on their age, gender, social strata as membership type. However, in this analysis the corporation should restrain form over segmentation of the market. Over-segmentation in an organization leads to a diverse customer base leading to reduced targeting as the organization fails to address the needs of each segment adequately; this is the basis for the demerits of diversification strategies in organizations (Cant, 2006, p.107). In the case of ExecHealth Company, over-segmentation-based o the diverse membership structures would lead to a diverse customer base, making it unviable to address them all. As such, the company should group customer stratus that has related characteristics. Such include the establishment of two broad segments based on membership type both corporate and individual. Through this approach, the club will have enough resources to focus on the two categories. Strategic management is a long-term business process that is perpetual similar to the business ventures under question. Therefore, its success is hedged on the breakdown of such strategic plans into operational tactics achievable in the short run. ExecHealth should break down its customer segmentation strategic plan down into stages, starting with the identified categories in the short run. Once the club achieves the desired representation balance of 80% for corporate members and 20% individual members, it should then proceed onto the next stage of ensuring diversity and equal representation under each of the two segments. Through such an approach, the organization will ensure efficiency through appropriate resource allocations and reduced constraint. In order to attract the two segments appropriately, the club should establish an appropriate communication approach. In marketing communication, organizations develop marketing strategies, unique selling points as well as approach strategies. In this case, over the years, ExecHealth has established a reputation for its services diversity to members as well as a trained workforce. Therefore, the company has its unique selling point in service's diversity. The club, in its marketing, should use this to distinguish from competitors. In communicating to its clientele, the organization should use the media to reach out to the individual members. On the other hand, it should use industry specific journals, professional magazines, industry forums as well as specific organizations forums and workshops to reach out to the corporate members. 2.3 Human Resource Management Human resource is an important organizational asset that aid in the planning, allocation, administration, and control of organizational resources. Tansky and Heneman (2006, p.14) argue that organizational human resource enhances organizational success. In this case, the authors stated that employees serve as a factor of production through labour provision. For production to occur in the supply chain, all the four factors should be optimally present. Therefore, a lack of any of these factors halts the production process. Therefore, the study concluded that the human resource is an essential factor of production, of which its absence disrupts supply chain activities. ExecHealth is mainly a service provision organization. In this case, unlike for goods, services are inseparable from their providers. Thus, the organizations workforce forms an important base for its operations and success in the industry. On one and, in order for an organization to increase its reputation, it should enhance members’ retention. Through this, the organization should ensure the provision of high quality services to boost satisfaction and increase members’ retention rates. In doing this, it will need the services of its employees. On one hand, in order to provide quality services, the organization should invest in employee training and development. While it would be hard to acquire ideal employees at recruitment, the organization can nurture the required skills through organizational based training programs. In this case, employees should be trained and directed towards the organizational objective of increasing its membership representation. Thus, through this approach, the employees should be trained on the organizational culture and approach to customers. Consequently, these will increase satisfaction in the long run as well as boost market reputation in the long run. Through the adoption of the training approach, the organization will eventually develop the desired nature and workforce structure. The organization should use a team management approach in its employee training programs. Team management incorporates the concept of team building and working in teams. The choice of this training approach for ExecHealth is hedged on its merits. One among them is the establishment of a team working culture in the organization. Current market competition calls for collective responsibility in enhancing organizational success. In this case, organizations need to group their workforce into a large community with a shared vision and mission for increased success probability. In this regard, organizations develop teams. A team approach in corporations enhances increased supplementarity among employees, where they collectively reinforce strengths while overcoming personal weaknesses. Through such an approach, ExecHealth will ensure uniform quality provision across its diversified services provision. In the execution of this plan, ExecHealth should develop an operations plan through which such tams would be guided, establish the responsibility of each team member as well s those of the respective teams. This would enhance increased communication flow, reduced confusion, and increased management efficiency because of decreased workforce conflicts. 2.4 Financial Decision-making Structure Change Organizational processes are all hedged on a financial funding. In this case, for ExecHealth to achieve its strategic improvement plans on human resource management, operations management, and market segmentation, it requires the development of an efficient and cost effective financial strategy. A company financial analysis reveals that the corporation is highly profitable and has sufficient cash flows to funds its short-term operational activities and liabilities (Baker and Powell, 2005, p.48). This implies that the corporation has the potential to fund the discussed strategic options towards its strategic success. Nevertheless, weaknesses identified in its financial analysis need be addressed in order to enhance its efficiency. Such identified weaknesses include low current ratio, acid ratio, and high stocks holding. On one hand, the organizations current ratios are lower than those of the industry are. This implies that an ExecHealth corporation and its competitor’s comparison establish that the competitors have the ability to meet their short-term obligations more than the company does. Consequently, this implies that they are more competitive in the long run. A further analysis on the organizational, financial statements reveals the reason behind the low current ratios. This is evidenced under the gearing and acid ratios deficiencies. ExecHealth has a gearing ratio 4% higher than the industry. This implies that the organization relies majorly on external funding to manage its projects. This is because of overstocking as evidenced by the low turnover ratios. Therefore, in light of these facts, the corporation should streamline its operations in order to enhance efficiency and develop enough funds to fiancé the alternative strategic plans discussed above. On one hand, the corporation should reduce on its accounts receivable period. These periods indicate the time span at which the corporation waits prior to its debtors clearing credit transactions. Through a reduced receivables time, the corporation will increase its current ratios considerably. Consequently, this would increase its cash flows as well as the ability by the corporation to meet its financial obligations such as the project management needs, employee training costs as well as marketing and promotion needs. Through meeting of these strategic needs, the corporations will enhance efficiency and the success of each respective approach. The combined success of the three strategies will considerably increase the organizations chances for the achievement of its strategic objectives (Vasigh, Fleming and Mackay, 2010, p.175). On the other hand, the corporation should reduce on its gearing ratios. Although it is not economically viable for corporations to fully rely on shareholders' equity to fund their projects, it is similarly unviable for corporations to rely on external funding such as loans to fund their operations. Despite the fact that reliance on external funding increases organizational working capital, it exposes such organizations to risks in the face of increasing inflation and reducing profitability margins. Therefore, the over reliance on external funding exhibited by ExecHealth should be curtailed. The organization can achieve this through the institution of a range of corrective measures, one among them reduced over stocking. Through overstocking, ExecHealth health ties much of its funds on the stocks leaving minimal working capital for use towards strategic objectives needs. Thus, for ExecHealth to achieve its strategic objectives, through the identified strategic plan approaches, it must resolve its financial challenges. 3.0 Conclusion Conclusively, the report, based on a prior organizational analysis, develops a strategic plan framework through which the organization can achieve its strategic objectives. Tin the long run, besides retaining market competitiveness, the organization seeks to expand its customer base, as well as increase its profitability margins. In this case, the report concludes that to achieve these objectives, the organization, as it is currently, needs to improve and establish better systems under its operations management, human resource management, marketing approach, as well as its financial decision making system. On one hand, the report lays a framework towards operations management improvement. The plan incorporates the stratification of corporate customers into respective projects and subsequently managing each team as per the project management criterion discussed. On the other hand, in order to achieve human n resource productivity increase, the report recommends team building and team training as a road map towards such needed achievement. Further, in order to enhance increased market influence, the study recommends market segmentation. However, the report is quick to caution against over segmentation. In this case, it recommends market segmentation based on customer type, both individual and corporate customer segments. In this case, the report states that once the organization achieves the desired proportion for these two segments, it can submerge into ensuring that other desired customer characteristics are achieved in the respective segments. Finally, the report acknowledges the role of financial funding in the execution and achievement of these strategic plan approaches. To enhance this, it recommends a change in the financial decision making to allow for increased liquidity, reduced gearing ratios, and reduced accounts receivable times. The report thus concludes that through a combination of the four strategic approaches fronted, ExecHealth will achieve its strategic objectives. Thus, if the organization is willing to invest in the recommendation, it forms a viable business partner with expected future increased profitability and expansion. References Sims, R. 2007, Human Resource Management: Contemporary Issues, Challenges and Opportunities, Information Age Publishers, Greenwich, Conn. Tonnquist, B. 2009, Project Management: A Complete Guide, Academica, Aarhus. Baker, H, & Powell, G 2005, Understanding Financial Management a Practical Guide, Blackwell Publishers, Oxford. Vasigh, B., Fleming, K., & Mackay, L 2010, Foundations of Airline Finance: Methodology and Practice, Ashgate Publishers, Farham Surrey. Tansky, J, & Heneman, R 2006, Human Resource Strategies for the High Growth Entrepreneurial Firm, Information Age Publishing, Greenwich, Conn. Cant, M. 2006, Marketing Management, Juta, Cape Town, South Africa. Read More