Total word count: 5,707

1
Strategic Management

Equity of Contribution Statement

We, the undersigned, agree to the terms and conditions in the Equity of Contribution
document.

Tutor’s name: Thomas Lim Kim Seah

Tutorial time (e.g. 12:30- 2:30 Tuesday): 8.30am – 11.30am (Monday)

∕
We each contributed an equal amount and wish to each receive the same grade: YES

OR

We have negotiated with the tutor to have the assignment marked individually (this
option is only available IF you have met with your tutor and it has been agreed at least
5 business days before the assignment is due) and evidence of this fact is attached.

Names Student RMIT Email Summary % Signature

Number of Work
done
Chua Contribute
Wan 380885 s3808850@student.rmit.edu. d to
25%
Xin 0 au Report
Cindy Creation
Contribute
Le Yee 377337 s3772277@student.rmit.edu. d to
25%
Mon 7 au Report
Creation
The 377212 s3772123@student.rmit.edu. Contribute 25%
Kay 3 au d to

2
 Report
Khine
Creation
Siti
Noor Contribute
Mahera 383409 s3834099@student.rmit.edu. d to
25%
h Bte 9 au Report
Muhd Creation
Noor
TOTAL 100
%

3
Table of Content
Executive Summary
1. Assignment 1 (Summary)
1.1. Macro-Environment Analysis
1.1.1. Political and Legal
1.1.2. Economic
1.1.3. Social
1.1.4. Technological
1.1.5. Environment
1.2. Industry Analysis
1.2.1. Threat of Entry
1.2.2. Threat of Substitutes
1.2.3. Bargaining Power of Buyers
1.2.4. Bargaining Power of Suppliers
1.2.5. Rivalry between Competitors
2. Internal Analysis
2.1. Resources and Capabilities
2.1.1. Brand Recognition and Credibility
2.1.2. Financial Resources
2.1.3. Relationship with Government and Investors
2.1.4. Employee Benefits
2.1.5. Corporate Social Responsibility
2.2. VRIO
2.2.1. Strategic Capabilities
3. Current Generic Business Strategy
3.1. Strategy Statement
3.2. Value Chain Activities
3.2.1. Primary Activities
3.2.1.1. Operations
3.2.1.2. Marketing and Sales
3.2.1.2.1. Segmentation

4
 3.2.1.2.2. Targeting
3.2.1.3. Service
3.2.2. Support Activities
3.2.2.1. Firm Infrastructure
3.2.2.2. Human Resource Management
3.2.2.3. Procurement
3.2.2.4. Technology
4. Strategic Initiative Proposed
4.1. GE–McKinsey Directional Policy Matrix
4.1.1. Suggestions based on GE-McKinsey Directional Policy Matrix
4.2. TOWS Matrix
4.2.1. Strengths and Opportunities (SO)
4.2.2. Strengths and Threats (ST)
4.2.3. Weaknesses and Opportunities (WO)
4.2.4. Weaknesses and Threats (WT)
4.3. Suitability of Strategic Initiative Proposed
4.3.1. Scaled Agile Framework (SAFe)
5. Implementation of Strategy
5.1. Types of Change situation
5.1.1. Change Kaleidoscope
5.1.1.1. Readiness
5.1.1.2. Scope
5.1.1.3. Capacity
5.1.2. Change Leadership
6. Evaluation of Strategic Initiative Proposed
6.1. Balance Scorecard
7. Conclusion
8. References
9. Appendixes

5
Executive Summary
In this report, we will cover the strategic capability of Regis Aged Care, where we will
further analyse the pros and cons of them. We will adopt internal and external analysis
to make better judgement. We have identified that the current generic type of business
strategy adopted by Regis is Differentiation Strategy. We would then tap on their current
business strategy by proposing the training scheme for temporary employees.

Based on the strategic initiative proposed, we analysed it with the help of GE-McKinsey
Directional Policy Matrix and TOWS Matrix. In order to further analyse the suitability, we
would adopt the help of Scaled Agile Framework (SAFe). It has then been concluded
that it is suitable, acceptable and feasible.

To successfully implement the changes, we suggest a change in kaleidoscope of

readiness, scope and capacity and change in leadership, which would make a
difference when it comes to the assistance required for the scheme to run. To tabulate
the usefulness of the strategic initiative proposed, we would follow up with the use of
Balance Scorecard. This is an important measure for any organisation by evaluating the
performance from various perspectives. In conclusion, we hope to assist Regis Aged
Care by boosting sustainable competitive advantages.

1. Assignment 1 (Summary)
1.1. Macro-Environment Analysis
Regis aged healthcare macro-environment will be analysed via PESTEL which consist
of political, economic, social, technological legal and environmental factors.

By looking into these factors, the organization will be able to make decisions by taking
necessary steps to take advantage of any opportunities and minimize threats.

6
1.1.1. Political and legal

Political refers to political stability stance. Legal refers to regulations and law
implemented to the business industry. As such, both factors will be present together as
both are interrelated.

Australian government regulates the aging care system in Australia where the approved
healthcare providers are responsible for the services they provide. If there were any
issues relating to quality of care, they will be held responsible. Governments also
ensure that these medical products comply with regulation and processes by constantly
auditing and setting standards to prevent any crisis or complaints.

Australian government also implemented a mandatory public insurance scheme

(Medicare) in Australia where it provides basic coverage for citizens at a lower cost with
a variety of range of health care services. Medicare is taken from the tax dollars of 1.5%
from an individual's income or 2.5% of the total income threshold.

1.1.2. Economic

Australian economy experienced a decline in economic growth with a 0.4% growth in

the third quarter of 2019 as compared to a 0.6% growth in the previous quarter.

Figure 1: Economic Growth (Trading Economics,2018)

7
Due to the decline, consumers will then have a lower purchasing power. This creates a
negative impact as it discourages consumers from purchasing goods and services
which includes aged care services. This will also lead to a higher unemployment rate.

1.1.3. Social

With an increase in Australia’s ageing population, it influences the demand for age
cared services. The baby boom generation born between 1946 and 1965 increased
rapidly from 12.3% to 15.9% once they turned 65. In the previous quarter, there was an
increase in 3.2% which outpace the population growth in older age groups.

Figure 2: Population aged 65 years and older (Abs Australian Domestic Statistics,
2019)

In comparison to baby boomers, the number of people aged 85 years and older
increased by 2.5% where there were more females than males, which reflects that
women lives longer than men.

Based on trends, Australia’s life expectancy is higher due to the advanced technologies
and constant upgrade of facilities in the healthcare industry.

8
Figure 3: Life expectancy in Australia based on year of birth (Thach Finder, 2017)

Australia is projected that people will live longer by five to six years than presently,
resulting in stronger demand in aged care services. As such, there are constant aged
care services in the industry.

1.1.4. Technological

With the advanced technology, it creates job opportunities for the country's growth and
allows upgrading an individual life’s skills such as taking care of aged care sectors since
there’s a prediction of higher life expectancy. It also allows the employees to be well-
equipped with knowledge and latest technology to assist in their employment in taking
care of the aged consumers. In addition, technology can assist in enhancing quality of
goods and services. It also improves the productivity of its services, operations, facilities
and ensures that these facilities are updated with the latest technology, allowing to fix
any issues faced.

1.1.5 Environment

Global warming can be caused by unpredictable climate changes. Australia recently

had a massive bushfire in December 2019. With the fire smoke, it can create air
pollution where it affects people’s health (e.g. unable to breathe properly) and pushing
them to stay at home instead leading to low productivity. Aged care services are able to

9
overcome these issues by providing different alternatives in services such as home-
care.

1.2. Industry Analysis

1.2.1 Threat of entry

With Australian government having a stringent rule, approved providers are constantly
reviewed by the Australian Aged Care Quality Agency (AACQA). This will be a lower
threat due to stricter standards to adhere, posing as an obstacle for new entrants to
enter. With the implementation of Medicare, it will be a lower threat as Medicare has no
coverage for residential aged care services.

1.2.2 Threat of substitutes

With the increase in baby boom generations and higher life expectancy, other aged care
service providers will take the initiative to provide home-care services. As Regis only
focuses on quality and variety of services, this form as a high threat since it can be
easily replaced by other substitutes. With the current inflation in the economy, other
substitutes who provide cheaper and better quality can easily replace Regis.

1.2.3 Bargaining power of buyers

There are a variety of aged care services in Australia which allows consumers to have
higher bargaining power to choose the provider that best fits their requirement. While
there are a variety of aged care services in Australia, there is an increase in baby
booming generation with higher life expectancy. This causes consumers to have lower
bargaining power as this is a demand.

1.2.4 Bargaining power of suppliers

Residential aged care services are dependent on suppliers including doctors, nurses
and medical suppliers. With higher life expectancy in baby booming generation, there
will be an increase in future demand for suppliers. Though there is high unemployment
in Australia, the bargaining power of suppliers will be high since there will be shortages

10
due to increase in aged care services providers and the cost of switching is high (e.g.
training).

1.2.5 Rivalry between competitors

With the implementation of having a stringent rule, the threat of rivalry between
competitors is high due to the strength in the approved providers. There are smaller
providers who sold their facilities to seek aggressively and join the bigger and
performing service providers in the larger market. In addition, barriers to exit are
medium as approved providers such as Allity are tied with factors such as investment
due to its strategic approach. If Allity were to exit, Allity would suffer a higher fixed cost.

2. Internal Analysis
2.1. Resources and Capabilities
Namratha Mohan (2018) described the capabilities of an individual as skills or
experiences and resources as the asset that the firms possess. The combination of
these two factors would then assist in the generation of suitable strategy. According to
the Age Care Standard of Australian government, the standard aged care firm should
have some quality resources and capabilities to implement the consumers-directed care
strategy (Alex Grove, 2016).

2.1.1 Brand Recognition and Credibility

Regis Aged Care is recommended as one of the best age care facilities which operates
numerous services for old aged people across Australia. This is a common challenge
within this industry, and for instance Benetas and ECH tried to promote their innovative
strategies like home-care services and residential accommodation services to
outperform the Regis. On the other hand, there are some micro enterprises which are
trying to follow the existing operational framework. Regis are keeping their lead within
industry with the brand recognition and applying it to become a dynamic industry leader
with premium age-care packages.

11
2.1.2 Financial Resources

Financial Resources are considered as the part of organizations' assets which is a

necessity for a firm’s effective operation. As new entrants are trying to mimic the
existing framework, financial issues will become the biggest barrier for them due to the
great gap in terms of financial resources. Regis being one of the leading organisation in
industry is capable of having financial related war to deter new entrant. According to the
Financial report of Regis, their existing operational framework has brought about
remarkable results (Regis Healthcare Annual Report, 2019).

2.1.3 Relationship with government and investors

Regis has been a leading firm in the aged-care industry and its transparency about their
financial and operation to their investors and government marked them as big
corporations across Australia. Regis has a stable cash flow as a result of integrated
business models, provisions to wide range of services and their expansion capital
structure attracts long-term investors. According to Regis’ Annual Financial Report
(2019), their history of outstanding operating systems was initially funded by the
government. Which later gained significant service result and earning over a five years
span.

2.1.4 Corporate Social Responsibility

Regis has always been developing and fulfilling its sustainability commitments. Regis
introduced its sustainability program in 2018 and formed a Sustainability Steering
Committee to manage Regis’ sustainability performance. Regis treasures the
opportunity to openly communicate its sustainability development and performance in
order to provide best care for residents, employees and return for stakeholders and
environments. Regis reduce its environment footprints through participating in many
sustainability projects like minimizing carbon footprint by replacing LED lighting and
solar installations across 35 Regis Facilities, collaborate with Royal Botanic Gardens
Victoria (RBGV) supporting the importance of nature for the wellbeing of senior
Australians and focused on linking employee value proposition with sustainability
through a number of behavioural change initiatives (Regis Sustainability Report, 2019).

12
According to Regis Sustainability Report (2019), Regis finalize their sustainability
processes and action plan and it enhances Regis brand and image are more likely to be
socially accepted.

2.2. VRIO
The VRIO analysis is an internal analysis tool that is used to classify an organization's
resources and it allows organizations to identify the organization's resources which are
competitive advantages (Smith and Joe, 2019). There are four measurements in this
analysis which are value, rear, inimitable and organizational support.

2.2.1. Strategic Capabilities

Regis has made substantial investment in its employees’ development programs to

become professionals care providers by leveraging Firm’s financial resources to meet
the customers’ expectations. Regis strategic capabilities is their premium professional
care -providers with their enthusiasm about the aged care industry and as a pioneer firm
they are offering premium quality health and aged care services with the most
convenience payment plans. With those professional care providers and their unique
programs, the ability of their strategic capabilities has increased significantly over past
years Among other aged- care firms. Only big firms like Benetas and ECH in the
industry could operate that kind of strategic investment in employee development and
training programs since it’s required financial support and career-oriented people. So,
we would consider it as rare. Moreover, their successful history in the industry and 63
aged-care properties Australia wide are impossible for other firms to imitate.

The growing number of aged care facilities Across Australia as the government new
systems in the aged-care sector allows small firms to be able to develop by government
funds and supports. Regis understands that there will be some competitions in the
industry. Regis implement their facilities as ideal retirement places for old age with the
best aged-care programs. By leveraging brand recognition and value they try to make
corporate responsibility initiatives as they participate in activities such as environment

13
sustainability and minimizing carbon footprint, proving as a socially responsible
organization.

Figure 4: VRIO Analysis for Regis Aged Care (Regis Aged Care, n.d.)

3. Current Generic Business Strategy

3.1. Strategy Statement
Strategy statement is widely known as the long-term goal and objectives of an
organisation, which then decides their organisational strategies. In the case of Regis
Aged Care, their strategy has been mentioned in the Regis Healthcare Annual Report
(2019). Regis being one of the largest age care providers in Australia is committed to
shape the future workforce, attracting and retaining the best suitable candidate with the
help of their Diversity Policy. The company has Vision, Mission and Philosophy in place
to set their objectives straight.

To be a dynamic, innovative and creative industry

leader and provide premium quality aged care
Vision
services, through effective management by a
dedicated professional team.
Mission Our mission is to promote and enhance the quality
of life of residents entrusted into our care by making
our residents the focus of everything we do. This

14
 will be achieved in an environment which fosters
empowerment, sense of belonging, respect and
dignity. We strive to create a reputation within the
aged care industry for delivering a high standard of
care that has as its core focus continuous quality
improvement.

Figure 5: Regis Healthcare Vision and Mission (Regis Aged Care, n.d.)

Their vision statement emphasised on their approach and direction which the
organisation takes in order to achieve their mission of being reputable in the aged care
industry.

The mission statement provided us a clear view of Regis’ objective of achieving high
quality experience for the residents by making them the priority in every way. In return
obtaining a reputable position in the aged care industry.

3.2. Value Chain Activities

Value chain activities increase the chance of an organisation outdoing their rivals
(Porter, 1985). This is possible by making full use of their capability to sustain
competitive advantages (Porter, 1985).

15
Figure 6: Porter’s Value Chain Model (Porter, 1985)

The value chain analysis breaks down the organisation’s activities into strategic parts,
which makes it easier for organisations to make amendments when required based on a
specific part (Razak, Vattikoti, 2018).

Porter’s Value Chain analysis comprises Primary activities and Supporting activities.
Primary activities include Inbound Logistics, Operations, Outbound Logistics, Marketing
and Sales and Services. These are the activities which are directly involved in the
process from input to output, sales and after sales (Razak, Vattikoti, 2018). Supporting
activities include, Firm Infrastructure, Human Resource Management, Procurement and
Technology. These are activities which exist to support the process of Primary activities
(Razak, Vattikoti, 2018). In the case of Regis Aged Care, they are a service provider,
hence we will be focused on their operation, marketing and sales and services for the
primary activities.

3.2.1. Primary Activities

3.2.1.1. Operations

Based on Porter’s Value Chain (1985), operation is the conversion process from input to
output. For a service provider like Regis, it is important for them to be productive and

16
efficient in order to have competitive advantage. The increase in productivity and
efficiency would boost their position in the industry which is beneficial in achieving their
mission.

Figure 7: Regis Executive Organisation Chart (Regis Healthcare Annual Report, 2019)

With reference to Figure 3, Regis have a wholesome and complete operational team
which acts as a support for their operation in their respective roles.

3.2.1.2. Marketing and Sales

Based on Porter’s Value Chain (1985), in Marketing and Sales final goods or services
are ready for consumer’s consumption. In the case of Regis, this is a stage where they
convince potential consumers to purchase their services.

Marketing is when the organisation promotes their services. Regis market mainly based
on word-of-mouth. With their immense amount of geographic diversified portfolios in
terms of the optimum location, high quality facilities and care, it effectively markets
Regis Aged Care’s services (Regis Healthcare, n.d.).

17
3.2.1.2.1 Segmentation

Regis adopts Geographic Segmentation by dividing the entire demand of Aged Care
into various Geographical regions within Australia. Based on these states, Regis will be
able to fully utilise their specialisation in Aged Care to form ‘Niche Strategy’.

Figure 8: Regis Caretakers Diversity by State (Regis Healthcare Annual Report, 2019)

With reference to Figure 4, Regis is operated in various states of Australia, which would
also boost their brand exposure. Hence an increase of brand recognition.

3.2.1.2.2 Targeting

Regis targets the aging population of the various states and provides respective
services for their target population. In order to attract the attention of their targeted
population, Regis adopts traditional methods with the use of print advertisement.

3.2.1.3. Service
Based on Porter’s Value Chain (1985), services are the maintenance of the goods or
services sold. In the case of Regis, the service available includes, Dementia Care,
Residential Care, Home Care, Community Care, Transitional Care, Respite Care and

18
Palliative Care. These services are also coupled with high quality services and facilities.
To further improve on their existing services standard, Regis also made constant
investments on well-being programmes to help their various clients (Regis Healthcare
Annual Report, 2019).

Part of the effort in improving their service quality, Regis also launched a new Graduate
Nurse Programme to support fresh graduates by equipping them with the specialised
skills required in Regis Aged Care (Regis Healthcare Annual Report, 2019).

3.2.2. Support Activities

3.2.2.1. Firm Infrastructure

Firm infrastructure comprises planning, quality management, finance and general

management. Regis is such a superior aged care contributor; they expect to manage
with a high and great standard aged care service for their residents and customers. On
the other hand, they are running more to increase and promote the highest quality of
resident life to be invested into their aged care service and further growth for their
organization. Moreover, Regis organizes and maintains a friendly working environment,
a positive image for providing standard aged care for everyone who is trusted in Regis
aged care services and new facilities are including the best obtainable across Australia
(Regis Aged Care, 2020).

3.2.2.2. Human Resource Management

As Regis is one of Australia’s largest aged care service providers, it recruits the right
people with the company's diversity policy and professional development programs.
Only the special kind of person can work as the healthcare provider career at Regis,
Regis aged care also values the remarkable work that their employee did. Regis’s
employee value proposition (EVP) emphasis 3 keys employee welfare which express
the obligating reasons employees join and stay at Regis (Regis Healthcare Annual
Report, 2019). The employees are recognized and appreciated care and effort for their
best services and Regis gives encouragement by sharing among individuals, teams and

19
departments. Regis offers opportunities and meaningful career paths for their
employees within the organization such as giving employees the moment, wall of
thanks, team events and service milestones. The great teamwork among the
organization builds the powerful community of harmonious people who takes care of the
residents and gives the best service quality every day. According to Regis Annual
Report (2019), their employee’s engagement and the culture of workplace safety have
been improving and focusing as a key organizational power (Regis Healthcare Annual
Report, 2019).

3.2.2.3. Procurement

Regis is one of the main providers which provides the biggest engaged procurement
stakeholders community, professionals, education and information to procurement
throughout Australia. Many kinds of aged care service have been supported and
available from government funding and that aged care provides home care, information
on residential care and further to support people on the aged care journey.

3.2.2.4. Technology

Technology today plays an essential role to support the sustainability of the aged care
industry. It benefits the development and service systems by providing coordinated and
efficient workflow, which boost the service quality. The electronic records collected from
the residents would not be possible without the use of technology. This helps Regis with
the efficiency of retrieving data, hence reducing the possibility of error in terms of
service. Regis launched the Remind Me Care (ReMe) technology program, an online
care planning system that intended to reminisce and family gatherings. Regis provides
residents’ preferences such as games, music, videos and pictures that rely on what they
are interested in. By using this ReMe program technology, Regis has received positive
feedback from their residents who have gladly engaged with their family. And the family
members are also intensely involved to be able to keep in touch daily with their beloved
ones who cannot stay in the same town (Regis Aged Care News, 2017).

20
 4. Strategic Initiative Proposed
In this section, we will be proposing a strategic initiative for Regis Aged care. The
strategy selected has been proposed after our group thoroughly thought through the
issues Regis is facing. Among all other issues, we decided that the important issue to
be solved would be understaffing. Understaffing is a common issue in the Age Care
industry, which would affect the operation of Regis. The current generic type of
business strategy adopted by Regis is Differentiation Strategy. Based on this, we will be
using the GE–McKinsey Directional Policy Matrix and TOWS Matrix to further elaborate
on the issue.

We proposed for Regis to train temporary employees to fill in positions when required
so as to reduce the demand and stress for existing permanent employees. This will then
help in reducing their employee turnover rate, which keeps staffing at healthy rage.

4.1. GE–McKinsey Directional Policy Matrix

Industry Business Unit Strength

Attractiv   High Medium Low

21
e-ness High Protect Invest to build Build Selectively
company’s  Build  Specialize
position selectively in
 Focus on on limitations
maintainin strengths of
g strength  strengths
 Challenge
leadership  Finding
to retain ways to
employees overcome
weakness
es (hiring
more,
focusing
on welfare
etc)

Mediu Build Selectively Managing Harvest

m  Overcomin programs &  Expanding
g earnings without
manpower  Continue any risk
issues  existing involveme
program  nt
 Invest in
hiring more  Focus on  Implement
specialized positive ing
manpower reviews on training &
programs quality
 Buildup in
as this developm
strength to
boost ent to
prevent
profitability minimise
threats
risk

22
  Minimising  Rationaliz
of risks e
(eliminating operations 
threats)

Low Protect & Managing Divest

refocus Earnings  Remain
 Concentrat  Using competitiv
e on strengths e (price) 
quality and and
 Support
improving opportuniti
managem
to be the es to
ent
best aged remain
care profitable   Consider
services  exiting 
 Upgrade
 Specializat quality
ion services 

 Offering
premium
services 

Figure 9: GE–McKinsey Directional Policy Matrix

Business Industry Attractiveness

Unit   High Medium Low
Strength
High Benetas

Medium Regis Anglican Care

23
 Low   Greenway Bupa Aged Care
Gardens

Figure 10: GE–McKinsey Directional Policy Matrix for Aged Care Services

4.1.1 Suggestions based on GE-McKinsey Directional Policy Matrix

Based on this strategy, we have determined that Regis is high in industry attractiveness
with medium business unit strength. We propose Regis to focus on overcoming its
manpower issues to boost its reputation. By training temporary manpower, it eliminates
the high turnover rate as it minimises employee’s tension and employees are able to
rest without having to work over-time during high demand season. This is Regis’s
biggest challenge in order to be the top aged care services in Australia.

4.2. TOWS Matrix

Externa Internal Factors

l
Strengths Weaknesses
Factors
 Variety of  Lack of manpower
services  Lack of welfare
 Package to suit  Abusing of
economy needs manpower 
 Largest aged  High turnover rate
care providers in  High stress
Australia environment
 Lack of work life
balance
 Only focuses on
variety services

Opportunities Strengths/Opportuniti Weaknesses/Opportuniti

 Utilizing high es es

24
 unemployme  With variety of  Creating new
nt rate to hire services, Regis management style
more people can hire more  Improving welfare 
manpower to be  Implement support
specialized in structure
every service  Working with HR for
 Ability to address increment of pay to
consumer’s match their skills
needs profile
 Meet company’s
expectations

Threats Strengths/Threats Weaknesses/Threats

 Easily  AACQA  High turnover rate
replaced by regulations  whereby
better quality experienced staff
aged care will head to their
services competitors who
 Services cost treat them better
is high as  Implement training
compared to and quality
its department for
competitors  regular audits
 Staff
requirement

Figure 11: TOWS Matrix for Regis Aged Care

4.2.1 Strengths and Opportunities (SO)

Regis can use its strength to take advantage of its opportunities. As Regis has a variety
of strengths, Regis can consider hiring more since there’s already a high unemployment

25
rate in Australia. By doing so, Regis can address and recognize individual’s needs and
meet the company’s expectations. This then boosted Regis’s reputation and became
the best aged care services.

4.2.2 Strengths and Threats (ST)

Regis can use its strength to overcome any political issues faced and threats in the
market. With Australian government having a stringent rule, approved providers are
constantly reviewed by the Australian Aged Care Quality Agency (AACQA). This will be
a threat due to stricter standards to adhere, posing as an obstacle for new entrants to
enter. Since Regis has a variety of services and it’s the largest care providers in
Australia, Regis will have no issues in meeting AACQA requirements.

4.2.3 Weaknesses and Opportunities (WO)

Regis can use minimise weaknesses by taking advantage of its opportunities. Regis can
overcome its welfare issues by ensuring that their employees’ concern has been
addressed by having constant reviews and ensuring that there’s two-way
communication. As Regis has a high turnover rate, Regis can overcome this by working
with its human resource (HR) to ensure that they have special benefits to retain their
employees.

4.2.4 Weaknesses and Threats (WT)

Regis can minimise weaknesses by avoiding any potential threats. Since there is a high
turnover rate which may be caused by lack of welfare, Regis may lose potential
employees which may join other competitors since their benefits are better. This is only
possible if there isn’t any restriction in terms of staff requirement. As Regis only focuses
on a variety of services, it may neglect the overall quality as an organization. This can
be overcome if Regis implements a training and quality development department to
facilitate regular audits and ensure that it meets the organization’s standard of
expectations.

26
4.3. Suitability of Strategic Initiative Proposed
The strategic initiative proposed would significantly help Regis in their long-run
competitive advantage by providing better and sustainable service quality. To better
evaluate the suitability of the strategic initiative proposed, we will be evaluating using
the Scaled Agile Framework (SAFe).

4.3.1. Scaled Agile Framework (SAFe)

SAFe Training Temporary Employees

Framework

Suitability Yes, this is suitable.

By training temporary employees, Regis would be able to meet the

high demand in certain periods. Not only the demand that has been
met, they could also provide standardized service in terms of
quality and efficiency as these temporary employees have been
specially trained.

Acceptability Yes, this will be acceptable.

The introduction of the scheme to train temporary employees would

be acceptable even though there could be an increase in variable
cost. In exchange of the increase in variable cost, Regis would see
an increase in operation stability whereby understaffing can be
resolved. 

Employees with the passion but would not like to hold the job
permanently can also contribute in this case, hence better quality of
service. This would also mean that Regis will be in a better
competitive advantage in terms of staffing and quality of service.

27
Feasibility Yes, this is feasible. 

This strategic initiative proposed would have the potential of being

financed and would not bring about any other cost. This strategy is
a boost to the existing aged care workforce, which resources
required would be almost the same as the existing. 

Figure 12: SAFe Framework for Strategic Initiative Proposed

In conclusion for the suitability, our strategic initiative proposed is suitable, acceptable
and feasible at the same time. We believe that this strategic initiative would bring about
competitive advantages which benefits Regis Aged Care.

5. Implementation of Strategy
When a new strategy is drawn up plan to accustom to the changing environment,
implementation of strategy is required a huge scale of changes to make routine
activities which relates with recent development in processes and to ease this changing
process effectively. Implementation of strategy also could be made as a process of
retaining coherence with changing environments across the organizational change
management that is concerned to formulate the strategy. According to Piotr Markiewicz,
the implementation of the strategy process emphasizes on development in the base of
own resource and organization’s internal improvement (Markiewicz, 2011). Based on
this case, we have adopted a mainly efficient way to “change kaleidoscope” to
investigate this change and implementation benefits as our diagnostic method.

28
5.1. Type of change situation

Figure 13: Types of Change for Regis (Managing strategic change, n.d.)

As we implement the strategic initiative proposed, Regis Aged Care will be undergoing
a phase of Adaptation strategic change. There will be minimal change while abiding to
the existing operational procedures.

29
5.1.1. Change Kaleidoscope

Figure 14: Change Kaleidoscope (Balogun & Hailey, 2002)

Change Kaleidoscope has 8 factors in place to assist individuals in better understanding

of the context of any changes (Balogun & Hailey, 2002).

5.1.1.1. Readiness

Readiness refers to the awareness and ability to accommodate to any changes made
(Rowden, 2001). Hence, one of the main factors in the change process is readiness of
the employees. Readiness would hinder changes during the implementation process
(Balogun & Hailey, 2002). In the case of Regis, there would be higher readiness during
the implementation process as there would not have much changes to the existing
operation procedures.

30
5.1.1.2. Scope

Implementation of the recommendation will cause a sensible change in the Regis Aged
Care service quality. With reference to the Strategic Initiative Proposed, there would not
be much changes to the existing permanent employee. Temporary employees will be
train specially to fit into Regis current operation procedure. Hence, the only change that
would be expected will be the increase in new care providers.

5.1.1.3. Capacity

Currently, Regis have various investment in staff well-being and additional trainings to
mitigate the organization threats. As a company that focuses on training, little additional
resources will be required to support the training of Temporary employees.
Furthermore, Regis being one of the leaders in this industry definitely has sufficient
financial resources to support trainings of these Temporary employees.

5.2. 3-year implementation plan

Year Elaboration
1. Propose Training Scheme of Temporary Care Provider to
the Regis Board of director for approval
2. Raise employee awareness of the upcoming Training
1 Scheme
3. Advertise on the upcoming Training Scheme of Temporary
Care Provider
4. Gather at least 10 applicant and launch Training Sessions
1. Get Trained Temporary Care Providers to work with
Senior Care Providers
2. Check on both existing and new care providers’
2
development and adaptability
3. Conduct staff feedbacks on the new scheme
4. Make adjustment in Training Programmes if required

31
 1. Conduct evaluation on the effectiveness of the scheme in
mitigating the issue of understaffing
3
2. Determine if implemented strategic initiatives’ relevancy to
the industry and organisational demand

Figure 15: Three years Implementation Plan of Regis

Year 1
The first year of the implementation plan is address the issue of understaffing to Regis’
Board of Directors while providing them with the detailed proposal of how the Training
Scheme would come about. Training scheme will be based on feedbacks from existing
employees to ensure effective and specialised training is provided for those Temporary
employees. Meanwhile, they should also be notified on the upcoming changes. Most
importantly, there must also be a minimum application in order to run Training sessions
more cost effectively.

Year 2
Accomplishing the training stage of temporary employees will be a part of
implementation in the second year. Then the temporary employees could apply their
new skills and ability while working with senior employees to achieve On-The-Job (OTJ)
training. This can help in adaptation of these temporary employees, which concurrently
reduce the turnover rate of these new employees due to stressfulness. By monitoring
these employees, Regis would be able to roughly know the effectiveness and
acceptance of this new initiative.

Year 3
By the third year, Regis will be evaluating on the effectiveness of the implemented
strategic initiative while also evaluating the relevance of this scheme by then. a

6. Evaluation of Strategic Initiative Proposed

32
The evaluation is an essential step for the organisation, so as to have a better
understanding of the effectiveness of Strategic Initiative Proposed. We will be using the
Balance Scorecard as a tool for the evaluation process.

6.1. Balance Scorecard

To propose the new strategic initiative of Regis, we set out to use a balanced scorecard
(BSC) to measure future performance. The balanced scorecard was a set of drivers
containing lag and lead indicator attained from athe firm’s vision and strategy to
measure the firm’s future performance. The balanced scorecard supplemented
traditional financial measures with operational measures from three additional
perspectives- customers, internal business processes, and learning and growth. It
enabled companies to track financial results while continuously managing progress in
building the capabilities and acquiring the intangible assets the company would need for
future growth. (Kaplan & Norton 1992).

Figure 16: The balanced scorecard and four strategies (Free management book,
2018)

33
 Goal Measurement Target

● Increase net profit / ● Profit margin ● Solid performance

revenue ● Annual report through each year
● Increase on funding and to increase 10%
government funding financing by after 3 years
Financial and support aged-care ● Operational
Performance ● Increase external authority. Strategies followed
stakeholders ● Annual donation by government
funding reports aged-care
(contribution from standards.
resident)

● Excellent ● Customer ● 70% of customer

performance satisfaction satisfaction
exceeding index
customers’
Customers satisfaction and
expectation ● Increase market
● Improve Brand ● Market shares share by 7% in
reputation 2021

Internal ● Decrease ● Employee job ● Increase 10% in

business employee turnover satisfaction employee job
process rate reports. satisfaction by
focusing on their
welfare.
● Number of new ● Increase 40% of
● Increase employee skilled new professional
value employees provider after
implementing new
strategy

34
 ● Increase
permanent manpower

● Advance training ● Number of ● Within the first

for existing trainees as a 6months of
employees skilful care- implementation
provider
Learning and ● Number new ● Increase new care
Growth ● New scheme for employee’s rate providers after
temporary implementing
employees to strategy
improve better
service

Figure 17: The Balanced Scorecard for Regis

Financial

Regis being in an Aged Care industry, will require a substantial amount of Financial
resources. While according to Milton Friedman (1970), the social responsibility of a
business is to increase profit. Therefore, financial measure is one of the key point
business are looking into during evaluation. With our new strategic initiative in place,
there will be an increase in specialised care provider. This would mean service quality
will be better and more consistent as operation flows. This will directly affect the number
of people choosing Regis over the other competitors.

Customer

For every business, especially in the service industry, customer is the priority.
Customers are the ones that bring in revenue for the organisation. It is very important to
get feedbacks from the customer about their experiences after the implemented

35
initiative, as the improvement of quality would reduce cost (Kaplan & Norton, 2001). Our
objective of implementing Training scheme for temporary employee is to reduce the
employee turnover rate as well as increase service quality. Based on feedbacks from
customers, we will be able to evaluate the changes in service quality.

Internal Process

As mentioned, one of the reasons to implement the initiative is to reduce employee

turnover rate. Internal processes assist in monitoring changes within the organisation.
For the internal process, we hope the implementation of training and recruiting new
employees will contribute 10 %increase in job satisfaction for employees as they will be
rewarded and appreciated for their best effort to the organization and 40% increase in
new skillful employees. Based on the customers’ feedback, we can make necessary
adjustment to the operation flow. (Kaplan & Norton, 2001).

Learning & Growth

The same as internal process, learning & growth is an important factor affecting finance
and customer’s factor (Kaplan & Norton, 2001). Learning & Growth is a factor which
assist individuals in attaining greater knowledge. Specialised and knowledgeable
individuals are intangible assets to the organisation (Jelenie, 2011). The purpose of
evaluating this section is to find out if the new initiative has the potential to increase the
organisational profit in the long run with the increase of specialised individual. By
evaluating the customer’s prospective and financial returns, Regis would be able to
measure the cost and benefits of the strategic initiative proposed.
We set a 6month- program under Learning and growth to upgrade the existing
employee skills and to recruit the new employees. According to the program, there will
be a learning/training period for both existing employees and temporary/new employees
to polish their skills to deliver the best services. During this program, each of the
employees will be given different opportunities to promote to a higher position. After this

36
6 month implementation, there will be an increase in both more skillful professionals and
new competent trainees.

37
6.2 Strategy mapping

Figure 18: Strategic Mapping of Regis based on BSC

38
The strategy mapping describes the link between different performance indicators within
the BSC and objectives in cause and effect relationships to track the progress of
achieving objectives. (Buytendijk, Hatch & Micheli, 2010).

7. Conclusion

In conclusion, Regis will be able to achieve better competitive advantage in the long run
is the strategic initiative proposed is adopted. The Training scheme for Temporary
Employees would attract passionate service provider which are holding other position or
gig economy workers. Service quality will increase as the operational flow is smooth
once understaffing issue have been mitigated.

39
8.Reference
● Abs.gov.au. (n.d.). 3101.0 - Australian Demographic Statistics, Jun 2019. [online]
[Accessed 24 March 2020].
● Agedcarereviews.com.au. n.d. Aged Care Reviews and Online Guide - Australia.
[online] Available at: <https://agedcarereviews.com.au/> [Accessed 25 March
2020].
● Agedcarereviews.com.au. n.d. Anglican Care | Aged Care Reviews. [online]
[Accessed 25 March 2020].
● Agedcarereviews.com.au. n.d. Benetas | Aged Care Reviews. [online] [Accessed
25 March 2020].
● Allity.com.au. (2020), Aged Care | Allity. [online] [Accessed 22 March. 2020].
● Anglican Care. n.d. Anglican Aged Care Newcastle | Dementia Care | Nursing
Homes. [online] [Accessed 25 March 2020].
● Australian Government Department of Health. (2020). Regulation and
compliance. [online] [Accessed 24 March 2020].
● Australian Government Department of Health. (2020, March 4). Delivering quality
aged care services. Retrieved March 22, 2020, from
https://www.health.gov.au/health-topics/aged-care/providing-aged-care-
services/delivering-quality-aged-care-services

● Buytendijk, Hatch and Micheli, (2010). Scenario-based strategy maps. Business

Horizons, 53(4), pp.335–347. [Accessed 26 March 2020].

● Dixit, S. and Sambasivan, M. (2018). A review of the Australian healthcare

system: A policy perspective. SAGE Open Medicine, 6, p.205031211876921.
● Friedman, M. (1970). The Social Responsibility of Business is to Increase its
Profits. The New York Times Magazine. [Accessed on: 24 March 2020]
● Hailey, V., & Balogun, J. (2002). Devising context sensitive approaches to
change: The example of glaxo wellcome. Long Range Planning, 35(2), 153-178.
Available on: Elsevier ScienceDirect Journals [Accessed on: 23 March 2020]

40
● Jelenie, D. (2011) The importance of knowledge management in organisations –
with the emphasis on the balance scorecard learning and growth perspective.
[Accessed 25 March 2020]
● Jurevicius, O., n.d. How to Invest In A Great Portfolio With GE-Mckinsey. [online]
Strategic Management Insight. [Accessed 22 March 2020].
● Kaplan, R and Norton, D 1992, ‘The balanced scorecard: measures that drive
performance’, Harvard Business Review, vol. 70, no. 1, pp. 71-79.
● Kaplan, Robert S., & Norton, David P. (2001). Transforming the Balanced
Scorecard from Performance Measurement to Strategic Management: Part II.
Accounting Horizons, 15(2), 147-160.
● Managing strategic change. (n.d.). Retrieved March 22, 2020, from
https://kfknowledgebank.kaplan.co.uk/business-strategy/strategy-into-
action/managing-strategic-change
● Matrix, G., n.d. GE-Mckinsey Matrix. [online] [Accessed 23 March 2020].
● Mohan, N., 2018. Resources and Capabilities Analysis: The Human Resource
Perspective. [Online] Available at: https://www.saviom.com/blog/resources-
capabilities-analysis-human-resource-perspective/?
fbclid=IwAR2oVyG_KwqjxM4dX7xinwI7UEw26DXhweIIM5W08yY-
eBV9oc80fmOm3_4 [Accessed 20 March 2020].
● Porter, M. (1985). Competitive advantage: Creating and sustaining superior
performance. New York: London: Free Press; Collier Macmillan. [Accessed on 21
March 2020]
● Privatehealth.gov.au. (n.d.). What is covered by Medicare? [online] [Accessed 24
March. 2020].
● ProductReview.com.au. n.d. Bupa Aged Care. [online] Available at:
<https://www.productreview.com.au/listings/bupa-aged-care> [Accessed 25
March 2020]. Thach, M. (n.d.). Life Expectancy in Australia: Are we living longer?
| finder.com.au. [online] [Accessed 24 March 2020].
● Razak, A., and Vattikoti, K. (2018). Critical Evaluation of Value Chain Analysis
For Assessing Competitive Advantage-a Study On Select Companies Of E-tailing

41
 Industry, Academy Of Strategic Management Journal, 17(6), 1-14. Available On:
Proquest Central [Accessed On 22 March 2020]
● Rowden, R. W. (2001). The learning organization and strategic change: Quarterly
journal. S.A.M.Advanced Management Journal, 66(3), 11-16. Retrieved from
https://search.proquest.com/docview/231253620?accountid=196406 Markiewicz,
P 2011, Change Management In The Strategy Implementation Process,
Intellectual Economics, Vol. 5, No. 2(10), P. 257–267.
● Smith, R., and Joe. (2019). Explaining the VRIO Framework (With A Real-Life
Example). Retrieved March 21, 2020, from
https://www.clearpointstrategy.com/vrio-framework/
● Teece, D. (2010). Business Models, Business Strategy and Innovation, Long
Range Planning, 43(2), 172-194. Available on: Elsevier ScienceDirect Journals
[Accessed on 20 March 2020]
● Tradingeconomics.com. (n.d.). Australia Unemployment Rate | 1978-2020 Data |
2021-2022 Forecast | Calendar. [online] [Accessed 24 March 2020].

42
9. Appendix

Figure 1: Economic Growth (Trading Economics,2018)

Figure 2: Population aged 65 years and older (Abs Australian Domestic Statistics,
2019)

43
Figure 3: Life expectancy in Australia based on year of birth (Thach Finder, 2017)

Figure 4: VRIO Analysis for Regis Aged Care (Regis Aged Care, n.d.)

44
Figure 5: Regis Healthcare Vision and Mission (Regis Aged Care, n.d.)

Figure 6: Porter’s Value Chain Model (Porter, 1985)

45
Figure 7: Regis Executive Organisation Chart (Regis Healthcare Annual Report, 2019)

Figure 8: Regis Caretakers Diversity by State (Regis Healthcare Annual Report, 2019)

46
Figure 9: GE–McKinsey Directional Policy Matrix

47
Figure 10: GE–McKinsey Directional Policy Matrix

48
Figure 11: TOWS Matrix for Regis Aged Care

49
Figure 12: SAFe Framework for Strategic Initiative Proposed

Figure 13: Types of Change for Regis (Managing strategic change, n.d.)

50
 Figure 14. Change Kaleidoscope (Balogun and Hope-Hailey, 2002)

Year Elaboration
1. Propose Training Scheme of Temporary Care Provider
to the Regis Board of director for approval
2. Raise employee awareness of the upcoming Training
Scheme
1
3. Advertise on the upcoming Training Scheme of
Temporary Care Provider
4. Gather at least 10 applicant and launch Training
Sessions
1. Get Trained Temporary Care Providers to work with
Senior Care Providers
2. Check on both existing and new care providers’
2
development and adaptability
3. Conduct staff feedbacks on the new scheme
4. Make adjustment in Training Programmes if required

3 1. Conduct evaluation on the effectiveness of the scheme

51
 in mitigating the issue of understaffing
2. Determine if implemented strategic initiatives’
relevancy to the industry and organisational demand

Figure 15: Three years Implementation Plan of Regis

Figure 16: The balanced scorecard and four strategies (Free management book, 2018)

Goal Measurement Target

● Increase net profit / ● Profit margin ● Solid performance

revenue ● Annual report through each year
● Increase on funding and to increase 10%
government funding financing by after 3 years
Financial and support aged-care ● Operational
Performance ● Increase external authority. Strategies followed
stakeholders ● Annual donation by government
funding reports aged-care
(contribution from standards.
resident)

52
 ● Excellent ● Customer ● 70% of customer
performance satisfaction satisfaction
exceeding index ● Increase market
customers’ ● Market shares share by 7% in
Customers
satisfaction 2021
● Improve Brand
reputation

● Decrease ● Employee job ● Increase 10% in

employee turnover satisfaction employee job
rate reports. satisfaction by
● Increase ● Number of new focusing on their
Internal permanent skilled welfare.
business employees’ rate employees ● Increase 40% of
process new professional
provider after
implementing new
strategy

● Advance training ● Number of ● Within the first

for existing trainees as a 6months of
employees skilful care- implementation
Learning and ● New scheme for provider ● Increase new care
Growth temporary ● Number new providers after
employees to employee’s rate implementing
improve better strategy
service

Figure 17: The Balanced Scorecard for Regis

53
Figure 18: Strategic Mapping of Regis based on BSC

54