Advantages and Disadvantages of Strategic Planning Models in the Care Sector

Learning Outcomes:

After completing the module, you should be able to:

1. Analyse, evaluate and apply a range of strategic planning models.
2. Calculate, interpret and critique a range of financial strategic performance measures such as Return on Investment (ROI) Residual Income (RI) and Economic Value Added (EVA).
3. Evaluate the use of problem-solving and investment appraisal models.
4. Critically evaluate the use of non-financial and multidimensional models of performance management.

Graduate attributes:

Discipline Expertise: Knowledge and understanding of chosen field. Possess a range of skills to operate within this sector, have a keen awareness of current developments in working practice being well-positioned to respond to change. Maximum word count:

Please note that exceeding the word count by over 10% will result in a reduction in grade by the same percentage that the word count is exceeded.

You must not include your name in your submission because Arden University operates anonymous marking, which means that markers should not be aware of the identity of the student. However, please do not forget to include your STU number.

Assessment Task

Read the following case study and answer all the questions that follow.

As a manager of BME Luxury Care Home - a registered business operating in England, the directors have asked you to consider the viability of investing in a privately owned and managed nursing home. This is due to an ever-increasing demand for such services among an ageing population in England. Moreover to enable the organisation to fulfil its mission statement is: “a commitment to excellence in long-term support and care”. The plan is to, expand over time, to a network of at least five luxury facilities in London.

The vision of the directors is to achieve the highest possible level of person-centred care in a home-like environment. Long-term care includes medical and non-medical care for individuals who need support with their activities of daily living. Many of the service users would be self-funding but some would be eligible for social care funding. Users may have a range of complex needs and/or disability that may challenge their ability to carry out certain activities of daily living.

Task 1:

Prepare a 1500-word internal memorandum for the directors of the care home, critically discussing the advantages and disadvantages of at least two strategic planning models appropriate to the care sector in England. The directors expect a recommendation as to which model you propose for business growth and why?

Task 2:

The word count for 2a and 2b should not exceed 1000 words in total.

Briefly discuss the usefulness of a Du Pont analysis to shareholders and then apply it to BME Luxury Care Home using the financial statements above as a basis for your calculations. You must discuss the purpose of each formula, and each step in your calculations to make sure you have not made any errors.

Discuss your findings in the context of the following industry averages:

Calculate and interpret the following ratios. You must explain the purpose of each formula, and each step in each calculation. Discuss your findings in the context of the following industry averages

Task 3:

Critically evaluate the use of non-financial and multidimensional models of performance management in preparation for a discussion with your management team. Choose the Balanced Scorecard or the Performance Pyramid as a basis for your discussion.