The value chain is a useful tool for identifying and assessing how health care organizations create value. A value is the amount of satisfaction received relative to the price and the expected outcome or results. The value chain utilizes a system approach, it may be created in the service delivery upper portion and use support activities …show more content…
This will contain situational analysis, strategy formulation and planning the implementation. (Peter M.Ginter, 2013, p. 14). Situational analysis will give suggest about what the organization should do? What organization can do? And what organization wants to do? After getting these in place, they will provide step-by-step process for creating strategy, what need to be done, how is going to be done, who is responsible for each task, and when. When all are in place, managers will evaluate service delivery strategies to determine whether management has correctly defined the role of these strategies in supporting the organization’s overall strategy. Strategic plan actions are well integrated and support one another using these …show more content…
They will be able to find a weakness part, they have a plan of action, and then they will evaluate a value chain. In my opinions, once they get everything together and find a solution, they need to check again after a few months to see how it is progressing. To prevent a same problem in future, they need to work together and find a problem as soon as they notice any changed because this made them to lose reputation in the community, lose resident and money. They may use the porter’s five forces, which are Intensity of rivalry, threat of new entrants, treat of substitutes, bargaining power of customers, and bargaining power of suppliers. (Peter M.Ginter, 2013, pp. 97-108) For intensity of rivalry, Brookdale can offer discount for residents to gain attention on the market for example, it can give a $300 discount for the resident’s first month. It needs to find out if it has everything require to be on the market and put on scale its cost with other assisted living cost. Also, managers need to make sure rooms are very clean, foods are well prepared, employees are trained and have all requirements. Porter’s five forces will help them to stay in competition and gain more residents, also it will help them to keep the organization