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As an experienced business executive, what advise would you give Jerry, eg: a systematic approach to starting up a new business, structure,
etc. (1a)
Being an experienced business executive, I can see that the business demands huge efforts for success. In case one wishes to gain more, the
best way is to start a business. Although job has fixed income for fixed work, increased efforts in business can result in huge benefits.
Therefore, to carry on the business, it is necessary to put extra efforts for success. For Jerry, it is suggested that he should not continue his job
further; else it may affect his business growth. The risk management strategy shall be made use of for success and growth (Lam, 2003).
He should put his efforts in his business and make use of the experience he gained while working for others. These practices shall be put by
Jerry in his own organization. He should strategically manage his staff on a regular basis. This would help him in making optimal use of his
human resource assets. Additionally, the lack of capability of administration department could also be improved through this approach. It is
a common concept, that greater the rate of risk, greater is the rate of return (Pakroo & Pakroo, 2008). So leaving a job, Jerry would though
take a risky step; it might result in his long term success.
Additionally, Jerry has a good back up of money that he got from his grandfather. Money matter notably for a business in inception stage
(Boyett & Boyett, 2001), therefore Jerry needs to devote more and more time for the business, without the greed of having job along with the
business.
Answer
For any organization to be successful, it regularly needs to review its strengths and weaknesses (Pakroo & Pakroo, 2008). These factors can
help the organization attain better results due to the clear description of areas that need improvement, and the strength areas. The following
discusses about the strength and weaknesses of Zenith Healthcare.
As far as the strengths associated with Zenith healthcare are concerned the organization has an experienced person, Jerry as its owner.
Therefore, there is a huge potential with the organization. Right use of strategy can result in growth and success. The sales of Zenith are
growing in spite of lack of control by the owner. Therefore, there still persists huge potential in the organization. The optimal use of their staff
is still to be done, which can result in increased benefits for the organization.
On looking at the weaknesses of Zenith Healthcare, first thing noticed is the lack of time given by Jerry to carry on the business operations.
There is no official in charge to look after the work activities of 5 staff members. The organization has to also note the point of its lack of
growth of cash inflows in spite of the increased sales. The administration department is not given due care to carry out business operations.
Jerry also needs to note the point that the competition in his industry is raising at a great pace and results in increased mergers and
acquisitions.
There is the need to have a proper check on the root cause for no increase in cash inflows in spite of increased customer base. Thus, there
exists some flaw in the operational management operations of the organization, which needs improvement. These need to be taken with due
care to result in success for long term.
Answer
Looking at the description of the business status, it can be noted that Zenith Healthcare is doing well in spite of the lack of focus laid by Jerry.
He is not devoting much of his time for business due to his job. He shall leave the job to focus completely on the business.
Health care organizations are increasingly migrating towards UK. The competition is rising with time due to these competitors belonging to
local region as well as from abroad such as USA. Therefore, Zenith Healthcare needs to take steps in this regard. The organization shall then
make efforts to expand further as this is the right stage for growth and expansion. The organization shall work aggressively to capture a good
share of market before new entrants capture the whole market. Therefore, at the instance of an offer from Venture Capitalist (As discussed in
the case study) shall be taken with due care. The best way is to thoroughly analyse the synergy that would be created if the organization is
acquired (Hunt, 2009). This would help in better valuation of the acquisition. In case the acquisition results in increased synergy which is
beneficial for the organization, Jerry shall move forward for the deal.
However, in case there is not much scope noted for this deal, there are number of options available for the organization. They shall make use
of joint ventures thereon to work in collaboration with giant foreign players. These giants would help in having a better control over the
process of recruitment and selection, staff and medical personnel management, and better operational strategies (Heim et al., 2003; Institute
of Medicine, 1990). Thus, the synergy can help in faster pace of success for the organization.
For any business to be successful, it is quite crucial to make clear objectives of the business. Unclear business goals and objectives can result
in divergence of the approach to gain outcomes. Therefore, Jerry should have a clear point about the business statistics he has for growth and
expansion.
Therefore, the aim of his business organization, named as Zenith healthcare should be to make efforts to help the patients get rid of various
diseases. Health services demand the basic need to have strong relations with patients by providing them support in a thorough manner.
Therefore, the approach can help the business grow by having stronger customer relationship management. There would be more control
over business practices.
Thus, the business shall have the objectives in mind that are clear in terms of concept and plan. The operations of Jerry shall however include
due focus to be laid on the service users. This should entail strong relationship building and making an effort to create brand of the
organization in the competitive market. This would help the organization stand well in the competitive scenario (Pinson, 2008). Jerry shall
leave his job to help the organization attain his aims and objectives, as the competitive market demands more and more efforts. Lack of
efforts can however result in consolidation of business due to rapidly growing competitive market, else survival would become an issue for
the organization.
Action Plan
Aims and Objectives are the first stage of any action plan. The aim of Zenith Health care organization is to make an effort to help the patients
get rid of various diseases. Health services have the basic need to build strong relations with patients by providing them support in a
thorough manner. The approach is expected to help the business grow by having stronger customer relationship management. Through this
strategy, there would be more control over business practices.
Suggested actions at this stage are to first of all valuate the offer at hand for acquisition of other organization, which is similar in size (George
et al., 2009). This was the offer made by a venture capitalist in a cocktail party. Thereafter, if the proposal seems to add to the benefits of the
organization, the deal should be made. This should then be followed by the search for joint venture with an organization from abroad, which
is looking to expand here. This shall further help in promotion and brand building. Furthermore, the organization shall make efforts to
promote more and more through various magazines, newspapers etc. This would help in creating awareness of the services provided by
Zenith Health care, and would increase the chances of attracting more and more people, looking for health related services. Therefore, the
strong marketing would help in establishing brand value in the market (James, 1995). This shall further be followed by proper evaluation of
the suggested strategies so as to update them on a regular basis, based on the market and changing needs.
contribution of individuals towards organization's success. Thus, Jerry shall need to use evaluation technique to analyse the outcomes of the
approach. This would result in overall success of organizational goals and objectives.