Challenges For The Contemporary Business Organizations - Samples

Question: Disscuss about the Challenges For The Contemporary Business Organizations. Answer: The present business scenario offers huge opportunities as well as various challenges for the contemporary business organizations. One of the key opportunities that are being present to the business organizations is the internet and online marketing facility (Eid EI-Gohary, 2013). In the recent time, internet boom helps in changing the existing business scenario to the whole. More organizations are gearing up to increase their presence in the online market. In addition, numerous organizations originated which operates only based on internet. Thus, organizations having the opportunity to tap the internet facility will have huge potential in the future. Medicare is one such start up which will be primarily internet based and will provide online medical care service to their customers. In the current scenario, people have less time to go for any doctor appointment, compare the charges of various hospitals and doctor fees. Thus, Medicare will provide an online portal where people can co mpare the rates in various hospitals; can take online appointments for their chosen doctors (Solano-Lorente, Martinez-Caro Cegarra-Navarro, 2013). In addition, they can give reviews regarding the service being provided by the hospitals and the doctors. These reviews will further help other people in having the prior idea about the hospital or doctor they are choosing. Medicare aims at changing the existing scenario of providing health care to the patients by offering a holistic approach to the health care under one roof. In the initial stage, the organization will operate in the Australian regions. Sydney will be chosen for the initial pilot project. Necessary feedback gathered from the customers during the pilot project will help to modify it according the market requirement and will expand it in other Australian regions afterwards (Goetsch Davis, 2014). The healthcare industry in Australia is quite potential and emerging with increasing average spending in the healthcare. Medicare will implement a holistic approach in determining their strategies to gain more market foothold. The strategy will be the market penetration strategy. It will help to increase the market share by implementing extensive marketing activities and customer engagement schemes. The vision of the organization will be to be the leading company in providing online healthcare in the global market. Start ups naturally do not comprise of complex hierarchical structures. Thus, Medicare will implement flat and horizontal organizational structure. It will help to reduce the gap between the higher management and the employees. Further, the communication process in the internal organization will be enhanced between the higher and lower levels (Ashkenas et al., 2015). In the initial stage, the organizational structure will be divided in four main departments. One department will be responsible for the marketing and sales. They will look after the acquisitions of the client and marketing the services in the market. The second department will be responsible for financial aspect. They will look after the allocation of the financial resources in the organization and maintaining effective financial norms. The third department will look after the management of the human resources to maintain and enhance the performance of the employees (Armstrong and Taylor, 2014). The fourth department wil l be responsible for the software development. This department will look after the managing the portal effectively. The technological part will be looked after by them. These four departments will be headed by the separate department heads with all having independent decision making capability. Medicare will obviously face the external and internal environment forces that will have implications in their operations. PEST analysis will help to determine the various factors that will affect their performance. The first factor is political which refers to the government policies and stability in the region of operations (Galvaan, 2012). Political stability in Australia is favorable with having various government incentives to promote start ups. It will ease the process of gaining initial capital for operating. The next aspect is economical which refers to the condition of the economy in the particular region. Australia is a developed country and is having positive per capita expenses for health care which will help to increase the market share more rapidly. Being an industrially developed country, people will have more access to the internet and will have less personal time. Thus, it is an opportunity for Medicare to have extensive market penetration whose unique proposition is providing convenience (Barreto, 2012). The next aspect in the PEST analysis is social which refers to the social culture and structure in the society. Majority of the population in Australia is having access to mobile internet and most of them are comfortable in surfing and handling apps (Shiau Luo, 2012). Thus, it will not be a difficult task for Medicare to market their services. Technology is the last aspect which refers to the advancement of technologies in the industry. Medicare is fully based on internet and technology. Thus, they have to be technologically advanced at all stages to stay ahead in the competition. The more advance and updated technologies they will use will help them in providing more convenience to their customers. Internal environment refers to the working environment of the employees (Korzynski, 2013). One of the key internal forces is the skill sets of the employees. The more diversified and updated skill set will be with the employees, the more will be their competitive advantage. Innovation is another important criterion that will determine the effectiveness of the organization. The sector where Medicare is operating is fully innovation based. Thus, periodic innovation will help to stay ahead in the competition. According to the Robson risk management model, the first step is to perceiving the risk that can be associated with the organization. In the case of Medicare, the perceived risks can be the strategic risk. Strategic risk refers to the uncertainties regarding the change in the market perception (Frigo Anderson, 2012). The preference pattern of the customer may change which will make the particular service irrelevant. On the other hand, the more superior service being introduced by the competitors may make the service provided by Medicare obsolete. Other perceived risk may be the financial risk that is quite common for any business organization. Operational risk may also be relevant in the management of Medicare. The next process is the assessment of the risk with having evaluated the level of impact in the organization (Covello Merkhoher, 2013). Medicare will have contingency plans to reduce the impact of the risk in the business. Internal environment will be effectively managed in order to reduce the probability of the risk and its impact. To enhance the performance of the organization, measures such as human resource management will be effectively implemented in order to enhance the productivity of the employees. Medicare will implement employee welfare schemes which will help to motivate the employees in providing effective service. Job rotation and employee empowerment will be promoted to reduce the monotony of the employees and enhancing their job satisfaction. Periodical skill development training will be provided to the employees in order to equip them with diversified abilities to face the business challenges (Ji et al., 2012). The key functions of Medicare will be acquiring more client or merchant which will be displayed from the portal. In this case, client or merchant refers to the hospitals and doctors who will subscribe with Medicare. It will enable to garner more traffic in the site which will help to attract more revenue. It is a revolving and interrelated process due to the reason that, more client acqui sition will help to attract more traffic and vice versa. The more traffic it will garner from the market will help to generate more positive word of mouth and buzz among the customers. It will enable them to increase their brand identity and image. This will further help in expanding the market in the global scenario. Thus, organizational performance will get enhanced with the enhancement of the basic functions of the organizations. More traffic in the site helps to garner more revenue from the market and eventually it will help to increase the resource allocation for their various activities. Thus, the customer service and convenience will get further enhanced. Thus, it can be concluded that in the era of internet boom and online market, Medicare will create a place of its own if being managed properly. Though, healthcare is emerging as one of the most profitable sector in the Australian region, but still the area where it is willing to operate is having much less amount of competitors. Thus, Medicare will have a huge untapped market to p enetrate. If designed and organized effectively, Medicare will change the entire scenario of providing health care in the global market. References Armstrong, M., Taylor, S. 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