Australian Unity Home Care Services And Insurance: A Review

Overview of the Home Care Service Sector

Question:

Discuss about the Industry Placement for Strength and Weaknesses.

The home care sector is a commercial industry that has since been growing over the years. With people spending less time at home, they need care services for their family members who need extra care. The home care service sector provides assistance for people with disability and those who are old. It ensures that this populace has better living standards and gives support to family members who take care of them. New product packages in the industry provide help for even those who prefer independent living conditions. As such, this industry placement paper will focus on Australian Unity which offers home care services.

Australian Unity is a home care provider that operates in approximately eighteen communities all around Australia. The home care provider concentrates on providing care to people in old age, those with disability and aboriginal home care services. It also focuses on providing insurance scheme for people with disability. The home care service provides solutions to better-living conditions. For the old people, the Australian Unity offers necessities and assistance. It also extends its care provision to young people who are recovering from an operation. Additionally, Australian Unity is the largest provider of specialized and culturally appropriate services for Aboriginal people in Australia. It provides services that are flexible for the client ("Home Services | Australian Unity", 2017). Health care clients require high quality services at a 24/7 hour system; this kind of flexibility is required to enhance growth.

Apart from providing home care services, Australian Unity has diversified its portfolio into achieving financial sustainability. Its primary focus is providing medical and retirement insurance services to a diverse target market ("financial-advice", 2017). Besides, the organization has invested in various in real estate to provide financial capital that it channels towards delivering better home care services. Effective capital management enhances financial stability to the health care industry in the nation. Following an analysis of Australian Unity, the company has the potential for growth as the industry gets assistance from the government. Particularly for Australian Unity, the company has the opportunities to diversify its portfolio to reduce business risks and increase its profitability ("Home Services | Australian Unity", 2017).

Australian Unity operates in an industry that has high market entry barrier. The home care service sector does not entirely provide financial sustainability. Also, most of the clients prefer a home package. It is for this reason that Australian Unity draws a strength over its competitors. The sector has market entry barriers. Besides, Australian Unity enjoys government funding. The home sector is part of the medical insurance and retirement programs provided by the federal administration. Australian Unity has gained government backing over the years as it offered quality home care services. Alternatively, Australian Unity has opportunities to diversify its products to suit its clients. The industry shows potential in growth and people’s income levels are gradually increasing ("Australian Unity - SWOT analysis. Strength, Weaknesses, Opportunities, Threats for over 40,000+ companies and industries", 2017).

Australian Unity: A Leading Home Care Provider

Conversely, due to the expansion of its products, Australian Unity has acquired some weaknesses. Its brand portfolio is diversified in a manner that does not minimize industrial risks. Besides, as technology advances, the company has to adopt various technology systems to increase its efficiencies. It high dependence on government funding provides a high business risk in case such funding is delayed or regulated. On the other hand, Australian Unity has to deal with business threats that arise from its external environment and technology issues. Though highly praised for its employee efficiency, Australian Unity faces a significant threat from employee turnover. The company has replaced its staff regularly thus incurring costs in recruiting and training new employees. Besides, on the customer-base front, it needs to acquire a stable and broad customer base to stabilize its profits and ensure financial sustainability (McMurray, 2017).

The home care sector gains financing from the government and other sources of funds for private-owned businesses. The government provides funding for the home sector as the industry is an extension of medical care. Besides, inadequate care provided to the old people by their families and abandonment of people with disability increase the chances of this population to drop into poverty. Thus in an aim to reduce poverty, the Australian government provides sponsorship to organizations in the home sector services. Australian Unity is one of such companies which is known for the aboriginal disability care services ("Home Care Packages | Home Care Services | Australian Unity", 2017).

As a leading firm in-home care service, Australian Unity gains financing from the government and internal sources. The company provides insurance services for its clientele that covers medical and retirement cases. It prices its products based on the financial background and the health condition of its customers. Before applying for home care services at Australian Unity, one has to fill a form that allows the company to screen the client based on their case and price the service ("Funding eligibility for home services | Australian Unity", 2017). It also allows the company to customize the product to suit the client. Similarly, like other insurance companies, Australian Unity provides insurance policies based on the health condition, age, financial background among other factors. It uses client information to price its premiums and makes insurance payments in case the insured risks are incurred. For the retirement package, Australian Unity ensures that the families of retirees maintain their lifestyle through retirement insurance services ("Aged care costs explained | Australian Unity", 2017). Besides, Australian Unity portfolio focuses on provided advisory services on the type of insurance to take and the best home care package for old and people with disabilities.

Diversification of Australian Unity's Portfolio

It is imperative to note that, unlike other sectors, the home sector is highly controlled by the government. Since the government pays for a significant portion of the home care services, individuals who seek the product have to be deemed eligible by the Aged Care Assessment Team. It is a government body that screens individuals who apply for home care services. During the application, the person chooses the provider they wish to give the care services. Once one is approved for home care, then Australian Unity may take the pricing of the services based on the type of care that the applicant requires. As such, pricing of home care is based on government eligibility approval and the kind of assistance needed by the client ("Funding eligibility for home services | Australian Unity", 2017).

Australian Unity operates in various communities and has established home care facilities to assist the old and those with a disability. Like many home care facilities, overcrowding is an issue. However, Australian Unity has dealt with the problem by constructing large establishments to provide adequate space for its clients. Additionally, the home care sector is shifting towards giving flexible assistance services that allow the customers with a disability to live independently. This trend has enabled Australian Unity to deal with overcrowding ("Home Care Packages | Home Care Services | Australian Unity", 2017).  Overcrowding in the health care facilities makes customers feel uncomfortable and industrial placement has narrowed this gap by alleviating the menace.

Following the case of Australian Unity, its main issues and threats arise from its portfolio and the instability of its consumer base. Australian Unity faces business risks in the insurance industry. This risk may provide financial costs to the company. Besides, the volatility of its clientele base threatens its sustainability. Thus, Australian Unity should focus on establishing a brand that aims towards retaining customers through increased customer satisfaction. Besides, minimizing business risks and hedging its portfolio reduces financial costs ("Australian Unity Group increases first half revenue by 43 percent, profit by 16 percent", 2017).

Australian Unity would be an ideal company for my industrial placement. The corporation centers on providing home care services and insurance coverage for the old people and those with disabilities. Its diversified portfolio allows the company to sustain its financial viability but also includes business risks. Working at Australian Unity would provide avenues for professional growth and exposure. Professional exposure would put Australia as a nation at an optimal point over which explosion of the country’s maximum potential would be met. Financial stability creates viability of projects execution as well as their completion and this is another critical aim for industrial placement in Australia. Industrial placement therefore needs to get encouraged in order to enhance professional exposure, growth, development, and sustainability in the entire nation.

References

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Australian Unity Group increases first half revenue by 43 percent, profit by 16 percent. (2017).

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Australian Unity - SWOT analysis. Strength, Weaknesses, Opportunities, Threats for over

40,000+ companies and industries. (2017). Swot.advisorgate.com. Retrieved 10 November 2017, from https://swot.advisorgate.com/swot-a/4002-swot-analysis-australian-unity.html

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https://www.australianunity.com.au/pfs/personal-risk-insurance

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Home Care Packages | Home Care Services | Australian Unity. (2017). Australianunity.com.au.

Retrieved 10 November 2017, from https://www.australianunity.com.au/home-services/home-care-packages   

McMurray, B. (2017). Qualtrics Helps Australian Unity Improve Its Voice Of The Customer

Program - B&T. B&T. Retrieved 10 November 2017, from https://www.bandt.com.au/marketing/qualtrics-helps-australian-unity-improve-voice-customer-program