Amato Home Health Essay

SOCIOCULTURAL Change in lifestyle that has seen people live longer More single-survivor family situations that encourage development of home care service
POLITICAL New regime to restrict care comfort service standards Political risks
LEGAL New government rules of affecting nursing care services
Price limits
New government rules of affecting nursing care services
Price limits
REGULATORY Change in government rules affecting provision of home care services
ECONOMIC Low prices form competitors Ability to acquire less professional labor cheaply
AHH services are more expensive
TECHNOLOGICAL Space to advance computer systems Competitors with better computer systems
COMPETITIVE Possibility of prices reduction below present competitor levels New market entrants
Existing providers with better and cheaper home care services
INFRASTRUCTURE High fixed costs could result in the closure of the office
EVENTS more dual-career families and more single-parent households
GEOGRAPHICS City location encouraging the entrance of competitors
DEMOGRAPHICS Increased population leading to increased demand for home care services Increased population leading to increased demand for home care services. This threatens present operations
PSYCHOGRAPHICS People feel home care services are better People disregarding nursing services and preferring home care services
MISSION/IMAGE Improving image Experiencing a poor image under previous CEO
GOALS/STRATEGIES Several people with no means to pay for their health issues No funds to cater for individuals who cannot cater for their nursing bill
No extra cash
ORGANIZATION/CAPACITY Able computer system
Large professional work force
Home care service more appealing
RESOURCES Huge client base(doctors, discharge offices and self-referrals
PRODUCT Can be expanded to include care and comfort Nursing services losing popularity
PRICE Possibility of undercutting the prices further Competitors offering lower prices
PLACE Huge number of immediate customers for home care services Existences of close competitors
New staff can be hired
Existing staff to oversee operations
A number of professional staff to be laid off.

Section 1: External Environment
Amato has perceived the need for Amato Home Health to extend its services to home care services rather than its present nursing services due to reduced revenue. However, its operations are faced by a number of elements in its external environment1. First, there are legal hurdles that include change in rules of rendering nursing services and pre-set payment limits. These act as threats since a slight negative change from the present state could drive AHH out of business. However, if changes are favorable it could act as an opportunity. Secondly, AHH is faced by economic opportunities. For instance, the fact that competitors make a profit while charging low prices implies the prices can be undercut further to make them more affordable. There is also the opportunity to higher trainable employees who could charge much lower than the professional nurses.
Competitive forces that threaten its operations include entrance of new service providers and the provision of better and cheaper services by the existing service providers.
There are also events that have avail opportunities for provision of home care services. For instance, more dual-career families and more single-parent households increase the need for home care services. Also, the fact that hospitals are sending their patients home more often has contributed immensely to the increased demand for the home care services. Finally, the geographical location of AHH has encouraged the development of competitors offering both nursing services and less-skilled home care and comfort services.
Section 2: Internal Environment
There are elements of internal environment that influence the future operations of AHH1. Among these, there are several strengths involved. First, the organization has a goal of providing services for people who cannot pay. It does so by relying on funding from local United Way to raise 10 percent of the funding. The rest it acquires from claim institutions like health maintenance organizations. AHH also receives requests from doctors and discharge offers and self-referral clients. It can build on these contacts to transition from provision of nursing services into a home care service provider.
The organization is also faced by a number of weaknesses. It is experiencing a negative image following the leadership of the previous CEO. This has led to reduction in the customer base of the organization. Similarly, it has posted slight growth and huge fixed costs leading to a reduction in the amount of cash available for the organization to provide the required services.
Section 3: Problem identification
AHH is faced by the problem of being out competed in the provision of nursing services due to the increased demand for home care services and provision of the same by the new market entrants. It, therefore, seeks a solution to help it remain profitable.
Section 4: Generation of alternative
To solve its situation, AHH is faced by has two alternative. First, It could expand its services to include provision of care and comfort services which are in high demand and risky providing risk offering less- professional services. Alternatively, it could proceed with provision of nursing services and seek for more clients to foot the huge fixed expenses it incurs. This way it will still provide professional services.
Section 5: Selection of alternative
The most suitable alternative is to expand its services and include provision of care and comfort services. This will imply hiring less qualified individual whose actions are overseen by the professional in charge.
Section 6: Defense of proposition
This alternative will be the most suitable for a number of reasons. First there is ready demand for care and comfort services in the immediate market. Secondly, employing less qualified staff will cut down its fixed costs substantially. To reduce the risk of providing less-professional services, AHH should ensure all the services are supervised by a professional nurse.
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