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Str 581 Week 1

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Introduction Life Cares is a skilled care company established in 1970 by Forrest Preston. There are over 250 facilities across the United States with the furthest set of facilities located in Hawaii. The headquarters is located in Cleveland, TN and Forrest Preston is still the CEO of the company. As of 2014 the company built 5 new facilities and is still growing with an additional five more opening between 2015 and 2016. LCCA is a for profit business and depends mainly on reimbursements from Medicare, Medicaid and private insurance. Approximately 10% of the company’s resident population is private pay, but this population is dwindling rapidly due to the amount of disposable income available to those potential residents.
Best Value Principle
The concept “best value disciplines” refer to a model of disciplines by Michael Treacy and Fred Wierseman. These three discipline – operational excellence, product leadership and customer intimacy – are key to a company’s success and they must choose at least one to focus on. Life Cares best value discipline is customer intimacy. Customer intimacy focuses on the customer’s attention and providing exceptional customer service. This is a logical approach for LC specifically because the company is a part of the service industry. Throughout the year there are meeting held a the facility, divisional, regional and corporate level which provides training and support on strengthening customer services and customer outcomes as it relates to inpatient and outpatient services.
Generic Strategy According to businessstrategy.com, the generic strategy is a basic approach to strategic planning that can be adopted by any firm in any market or industry to improve its competitive performance. The three fundamental marketing strategies are differentiation, focus, and low cost strategy. Life Cares generic strategy is focus. In the long term care industry, the rates are set by the federal government so the only flexibility lies within the private rates for residents. Due to this the company focuses on the customer and crating facilities that have the feel of home with room service. Life Cares has a special dining program where each facility has hired a Chef to prepare exquisite meals daily, they offer activities based on the abilities of the resident and the facility grounds and structural design are some of the best in the nation. By having this focus, the company remains to be one of the top 5 largest nursing home company’s in the U.S.
Grand Strategy Grand strategy is a long-term plan of essential actions by which a company plans to achieve its major objectives. Key factors of this strategy include market, product, and/or organizational development through acquisition, divestiture, diversification, joint ventures, or strategic alliances. Life Cares is a privately owned company whose sole grand strategy is to be the facility of choice in every community in which a facility exists. This is a very powerful statement and the company has successful met the expectation of the statement. The grand strategy is easily accomplished when you combine the best value principle and generic strategy with the grand strategy. All three fit perfectly together.
Conclusion
As I have stated in my previous papers, there will always be a need in the healthcare industry. Whether the need is urgent care centers, hospitals, doctor's offices or nursing home care the business of healthcare is here to stay. Life Cares is a force to be reckoned with in the long term care industry. All three strategies put together show a company whose focus is the customer and providing exceptional care in a beautiful environment has been LCs key to success.
References
Pearce, II, J. A., & Robinson, R. B. (2012). Strategic Management: Planning for Domestic &
Global Competition (13th ed.). Retrieved from The University of Phoenix eBook
Collection database.
Grand Strategy. (). Retrieved from http://www.businessdictionary.com/definition/grand- strategy.html Basic Strategy. (). Retrieved from http://www.businessdictionary.com/definition/basic-
strategy.html

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