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Operational Plan Essay

2138 words - 9 pages

Operational Plan
Summary and Analysis
No business is immune from globalization. Although MÀJEN is not a multinational organization, it has a diverse multicultural customer base (Powers, & Jones, 2001). The recent changes in our national and global economy have affected the customer base through decreased reimbursement resulting in rationing of resources. Additionally, the slower economy has resulted in less employee turnover and thus a decrease need for new hire training and certification.
Future impact of the global economy on ALFs and SLAs are both positive and negative. This industry has a range of organizational size from small businesses, those who own a home and rent rooms, to large national corporations. Payment for services is predominately-private pay with less than 10% subsidized through state, federal, or insurance payers (www.alfa.org). As the downturn in the global economy negatively affects stock options and retirement funds, individuals will not be able to pay for services. Providers will then need to cut expenses and may minimize training. Providers will also be continually motivated to find less expensive options, which may motivate them to “in source” their training. This equates to decreased volume and revenue for MÀJEN.
Conversely, with the elderly population growing and an overall concern of rising medical costs increases, ALF and SLAs are a progressively more attractive option. This community-based care is 50% less expensive than skill nursing care (www.alfa.org). Through increasing population growth and motivation of governments to decrease medical spending, the industry may experience a boom. This would equate to an increased demand for training services and increased revenue for MÀJEN.
Strategies and tactics for competing in a global economy include leadership skills focused on the global marketplace, adaptation of the organization, and a strategic growth plan. Most companies are not prepared to move into the global marketplace due to lack of leadership skill and knowledge (Powers, & Jones, 2001). Through obtaining an advanced degree in business, the owner will be able to overcome this barrier. MÀJEN will use an adaptation strategy to move into the national marketplace and then consider expanding globally (Ghemawat, 2007). As “output productivity” and resource conservation becomes more important in the global economy (Beinhocker, Davis, & Mendonca, 2009), the need for innovative solutions to meeting regulatory requirements and training competent staff effectively and efficiently becomes increasingly necessary (White & Bruton, 2007). MÀJEN will offer a solution through online technology to provide this education and fill this gap in the industry (2007).
The growing amount of government stimulus package small business loans may be a rare opportunity to accelerate this expansion plan (Beinhocker, Davis, & Mendonca, 2009). Additionally, MÀJEN needs to expand to meet the expected demands due to the growth in the...

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