Introduction:
The followed reflective essay is focused on creating a critical thinking by the fusion and consolidation of different subjects provided in the MBA KBS School.The main objective is to demonstrate that these subjects are able to help the dynamic decisions of the managers, the area involve is the health care .The mixture of selected theories by the subjects named before, with the aim to solve challenges in the daily business environment, which with globalisation, it is evolving faster and faster.
Four subjects have been interrelated to get a strategic effectiveness and to bring up to date solutions. The value chain focused in health care processes will be centralized and over it will be applicated the followed subjects and theories. GB570:Managing Value Chain, identifying the tools of the value chain and their interactions, transforming these processes in sustainable value. These value chain process will be mixed by other ‘forces’ GB580: Strategic Management, what strategies have to be developed by a sustainable value chain, the analysis of resources and capabilities, which methods have been used to measure the performance of this strategies, adding value for stakeholders, additionally. These Value chain has to be measure and therefore create a decision process, too. The GB519: Measurement and Decision Making is other tool to evaluate the performance and help in sustainability business. In addition, an ethical frame provided by the subject MBA402-Governance, Ethics and Sustainability, measuring the risk management, providing a corporate reportin, where the value chain is evaluated and the importance of the ethic in the value chain.
The theories applicated in this essay comprehend, Value chain and his sustainability, strategic in Management,competitive advantage, and PESTEL analysis.
A theoretical skills
In the millenians era, the customers are the main engine of the value chain.
Source: Kaplan Business School- GB570:Managing Value Chain
GB570:Managing Value Chain
As a definition the value chain
During the last decade the concept ‘value chain ‘created by Michael Porter, has suffered gross modifications continually in regard to the impact of the globalisation evolution. The value chain has been divided by Porter into different categories and is linked together. The joint of these categories the market, the production, the delivering, support, and so on produce an integrated system. It was clear that enterprises have not the same features; even though, are in the same branch industry their value chains are different. Therefore, the globalisation, which is a phenomenon that becomes fashion since the internet appeared, have changed the concept of the value chain in ‘Global value chain'. It has affected the speed of the trading, the communications and as a consequence the customers' behaviour.
GB580
Subject Name: Strategic Management
• Successful strategic planning requires accurate forecasts of future products and markets directing and strengthening an organisation in its competition with other organisations should be a central consideration for all organisations
An important objective of strategic management is to create differentiation between the organization and its competitors or the other entities operating in its space.
The planned components of strategic management involve the following seven aspects: • The external environment • The internal characteristics of the organisation • The setting of objectives • The crafting of strategies • Implementation of change • Performance measurement • Plan adjustment
PESTEL analysis • PESTEL analysis is one of the most popular and useful tool (or perspective) for analysing the external macro environment • It includes the analysis of political, economic, social, technological, and legal environments of an organisation • PESTEL involves an evaluation framework that helps to identify the features of the macro environment that may affect the organization
Comparative advantage refer to the advantage gained by production of a product or service in one region over another due to local external conditions such as skill levels. It does not apply to specific organisational capabilities. Comparative advantage always concerns nations, not companies.
GB519
Subject Name: Measurement and Decision Making
The purposes of performance measurement • Allow managers to track their own performance against targets and take corrective action • Evaluate subordinates’ performance, and provide rewards • Guide senior managers in developing future strategies and operations
cost volume profit (CVP) analysis • A technique used to determine the effects of changes in an organisation’s sales volume on its costs, revenue and profit • Can provide answers to a series of short-term changes – a quick tool to determine the impact on revenue and costs • Can be used in profit-seeking organisations and not-for-profit organisations
The break- even point • The volume of sales where the total revenues and costs are equal, and the operation breaks even • At this level of sales, there is no profit or loss • The break-even point can be calculated for an entire organisation or for individual projects or activities
A model of the decision-making process The seven steps involved are: 1.Clarify the problem 2.Specify the decision criterion 3.Identify alternative courses of action 4.Collect information about relevant costs and benefits 5.Compare the costs and benefits of each alternative course of action 6.Select a course of action 7.Evaluate the effectiveness of the decision
MBA402
Subject Tittle Governance, Ethics and Sustainability
Corporate ethics examines the moral and ethical problems that arise in a business environment and is relevant to the conduct of individuals and entire companies.
Acting ethically and responsibly is about more than meeting legal obligations and involves acting with honesty, integrity and in a manner that is consistent with the reasonable expectations of investors and the broader community.
Code of Conduct •
Good corporate
Ethical and Responsible Action
Environmental Practices. •
Corporate Culture
Recognise and manage risk
Global Reporting Initiative :The GRI Standards represent global best practice for reporting publicly on a range of economic, environmental and social impacts.
Sustainability reporting based on the GRI
Being part of the "green line" implies that every worker must believe in the viability of this type of project, so the process of selecting personnel is much more exhaustive than for a "classic" company.
carry out constant tests that certify that their products and installations do not harm the environment and are even a contribution to the environment.
applied skills, practical skills, and reflective skills
In conclusion, the manage of value chain in health care is a hard challenge because the ageing of the population, the millenians are one of the last customers next generations, however the ageing population is increaser over the new births. A new strategic management has to rise , evaluation the performance of the health care system or company.
The sustainability of a well being politic in health care (into systemsv companies , public health) would be affected because there is a low number of effective strategies in the mid-term related to the cost increases. the health market become a burden for the governments.It is time to react ethically. Over the cost , a big change in public politics has tio be created.
PARTE B
Value chain
The value chain is a theoretical model that allows to demonstrate the internal and external development of an organization or economic entity generating a value to the final client, theory developed by Michael Porter in his work
Competitive Advantage in value chain: Creating and Sustaining Superior Performance.
The value chain of an organization identifies, therefore, the main activities
Which create value for customers and related support activities.
The chain also identifies the different costs incurred by a
Organization through the different activities that make up their production process,
Therefore an indispensable element in determining the structure
Of a company's costs. Each activity in the value chain incurs
In costs and limits assets, to achieve their due analysis and consideration allow
Improve the techno-economic efficiency of a company, a group of companies or
Of a particular industrial sector.
From the strategic point of view also, the value chain of a
And the way in which each activity performs reflects the evolution of its
Own business and its internal operations; Strategy, the approaches it uses
In its execution and the fundamental economy of the activities themselves. In consecuense
It is normal that the heat chains of the rival companies differ, as
Rather, a condition that complicates the task of evaluating positions
Of relative cost of rivals.
The importance and importance of this analysis lies in creating Strategic ideas that generate competitive advantages.achieveng
Performance of the different economic agents.
5 Porter Forces – Key to Company Success
Porter's 5 forces are essentially a great business concept through which you can maximize resources and outperform competition, and therefore create value in the value chain. the development of a competent strategy is not only a survival mechanism but also also gives you access to an important position within a company and get closer to getting everything you dreamed.
The internal dynamics of the company and the speed and manner in which the environment moves, have to be treated as a whole at the time of analysis, which will reveal the strategies to be followed to be competitive in an increasingly larger market And with the difficult demands of meeting the ever increasing expectations of customers and increasingly minimizing the resources disbursed, in order to maximize the benefits. For this it is indispensable to take into account that the internal results of the company depend, in a high percentage, of the characteristics of the environment in which it moves and of the capacity that it has to assimilate this environment and to manage it efficiently.
It begins by developing the vision of the company, establishing then the strategy necessary to fulfill the vision of the company. It must be taken into account from quantitative and qualitative factors to the most abstract such as power and hierarchy within a company.
The vision. The mission. The values. Only after defining these three concepts can you begin to formulate a strategy, according to Porter. Having these points already gives you a competitive advantage in the business world, because it allows you to direct your efforts and always start with an end in mind.
"Competitive Strategy" tells us about the five forces model which teaches us that a company is surrounded by five fundamental factors within an industry and we must learn to control them very well to survive in the market .
The model of competitive advantage is carried out through competitive strategies that allow taking offensive actions to overcome other companies of the same category and obtain a position beneficial and defensible in an industry.
Michael Porter calls the competitive advantage as the differential value that a company creates for its customers, either in the form of prices lower than the competition or product differentiation, that is, any characteristic created by a company to distinguish itself from the rest and Places it in a superior position to compete.
The value chain is directed affected by all these theories and health care area is not exempted.
Sustainability
Sustainability Company is referring to a science based on measurable actions that should generate a positive impact for the social, environmental and economic environment and, undoubtedly, is currently one of the most powerful tools to achieve competitive advantages in our environment and their commitment to the social and economic development of a country.
Advantages of being a sustainable company
Leading organizations in sustainable practices gain important competitive advantages, as they access a huge spill of benefits such as:
• Facilities that favor the survival of the business through the responsible management of natural resources
• Maintaining positive relationships with society
Carry out an evaluation of the life cycle of your products and / or services, with which you will know in which stages they generate more pollutant emissions. Then look for the best mitigation strategies that go hand in hand with business strategies.
The issue underlying them all is how to make healthcare sustainable and responsive. We need a system built to last, and flexible for patients. It has to be sustainable for the long term . At present we don't know how we'll create this responsiveness
Part C
Despite healthcare's value chain being unique, it is important that innovation takes place.
Porter's Five Forces provides a useful framework to analyze company strategies but a practical benefit is that it can be used to identify factors that public health systems need to understand if they are to become effective commissioners.
The evaluation of the performance produced in the provision of a service dedicated to the "Health" or "Health Care" good, is commonly based on the theoretical framework that provides analysis from classical economics, welfare theory and analyzing the efficiency of health spending.
Based on the theory of consumer behavior with its preferences to be consumed and the producer who must analyze how much is going to be consumed by converting productive factors into products, that extend the efficiency in the allocation of resources under the normative principles of quality, utility and equity.
Professor Jeffrey Braithwaite said ‘It has to be sustainable for the long term. To achieve that on our limited budget, we need a far better idea of how the existing system works – how it succeeds, how it fails, and how technology can improve it. That is the challenge for today's health administrators.’(SMH.2016)
Its true value consists in communicating and articulating the chosen strategies.
http://www.smh.com.au/comment/with-an-ageing-population-is-healthcare-sustainable-20160319-gnm98t.html