A Case Study Of Zenith Healthcare And Jerry Stevenson Business Essay


Managing business enterprises is very useful towards making the organization successful. This becomes the best approach that will lead to better and efficient management of any health care institution. This paper is an analysis of a case study that focuses on business activities of Jerry Stevenson, a 38-year old medical doctor who inherited a large legacy from his grandfather. The paper also answers a set of questions that are relevant to the case study, and offers recommendations to a number of issues affecting the business enterprise.


In any kind of organization, all dimensions of business management are quite significant since they play a major role towards the overall achievement of the given business or organization (Mahadevan, 2008, p 26).When the issue of management is being discussed about in a given business or any other kind of organization, it is very important to think of the manner in which the operation will be coordinated and thus employ the necessary personnel and practices which shall promote the performance of the organization.

Question number one:

Business start up

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In business, it is mandatory to come up with a plan. A business plan is a useful tool used to guide the operations and moves of the business especially when starting one .In the event of starting a business; one is required to have a business idea that enables one to manage his business activities effectively. In regard to Jerry Stevenson, his business idea is to start a locum agency and his ambition is facilitated by a large legacy he inherited from his grandfather. His new business idea shall be able to come up with services which have the ability of providing Individualized health care and Practice. The issue of sustainability with a clinic business is very elemental and it's something worth considering. In that case, the proposed business will come up with ways and approaches through which all materials used in the business shall be properly handled so that they do not compromise the plan (Schneider, Brief & Guzzo, 1996, p 38)

Has a renowned business executive, I would advise Jerry to prepare a business plan that would see his business concepts become incorporated into practice. This kind of approach is necessary and shall ensure there is the provision of the best of services and thus gain of reputation in the kind of business engaged in.

Jerry should create a Locum agency model which would establish his business structures, mode of operations and activities. The business model graph represents the necessary approaches capable of improving the business performance. The first thing to consider when operating a Locum agency (health care clinic) business is the inputs and risks related to this business.

Once the above has been analyzed as presented in the model, the next thing is to devise the unique strategies to be applied in the business. There are several strategies to be addressed during this stage. These include marketing, human resource, customer service, and financial management. The marketing approach of the business should be clearly defined and organized. Financial allocation or management is also needed at this stage and should be done in the right manner. A health care complex is capable of incurring a lot of operational costs and needs. Has the owner of the business, Jerry should therefore be in a position of monitoring the operations of the business. In relation to management and financial plan, the business will be managed by Jerry himself. The company or business will earn its revenue from sale of its services which include health care services, counseling and any other service related to provision of health care.

When starting the business, any other unique strategy like decision making and managerial operations should be appropriately coordinated. Good customer-worker relationship should as well be encouraged. Once the above business approaches have been properly coordinated and performed, the next important thing is to weigh the effectiveness of the outcome (Porter, 1980, p 34).As it is said, 'the end should reflect the means,' it will be necessary to examine the business performance or outcome. Any gains will be noted and areas that need improvement will have to be addressed. The final gains will determine the need of going back to the start and work out things from scratch for the benefit of the business. Feedback is necessary to improve the major areas that are non-responsive to the performance of the clinic business. For a health care clinic start-up, the business model can be applied to take the business places and improve profits gain.

Question number Two

Performance review of Zenith healthcare

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Once the business is established and operating effectively, individuals at times may be inclined to let business operations run the way they are. Nevertheless, this is actually the appropriate time to plan again. Businesses organizations are required to be reviewed regularly to establish the progress of the business and to indentify how the institution can make the most of the market position they have established for themselves, and to decide where to take the business next. During the first review of his business - ZENITH HEALTHCARE , profit wise Jerry' business tend to be doing well, though they are some issues that need attention.

The approach for jerry business review will involve analysis of finances of the company, whereby the organization financial information will be analyzed and evaluated using income tax returns on historical basis, for the period the business has been on operation. Secondly, the business will be reviewed by analyzing the organization liquidity ratio whereby the institution operating cash flow and liquidity ratio would be analyzed.

At the moment the company's turnover is £2.5 million and it's projected to double in the next twenty four months. With this figures, the company has been able to pay its staff an annual salary of between £40,000 to £50,000 per annum each. These figures show that the business has potential of growing even more. With entry of foreign healthcare companies that have begun to express interest in entering the UK hospital sector, this business may also benefit from management concepts provided by these healthcare establishments: where they recruit, staff, and manage medical personnel, and are responsible for the operation of the medical facilities they manage.

With the analysis, I would review the business has with potential of growth and if to remain competitive in the business, they should address the issue of failed management especially on financial management, unwarranted high salaries to the unqualified staff ,and check on education level of its staff.

Question no three

Zenith healthcare strengths, weaknesses, opportunities and threats (SWOT analysis)

Towards the realization of the stated goals and objectives, the institution strengths and weaknesses are of great importance in determining the business development. The concept of SWOT analysis is used to establish the business profitability, whereby it assists in indentifying the business Strengths, Weakness, Threats and Opportunities. This kind of analysis and plan is necessary in ensuring that appropriate engagements have been put in place, which provides necessary engagements that make it possible to realize appropriate management and performances within the business (Sioukas, 2003, p 16).

After analysis, the institution strengths where established to be: - Strong local recognition, tremendous customer service, vast private care offerings, and rapid service deployment center. The health clinic is synonymous with health care provision and remains the largest player in the local market. Another important strength of the business is that it's managed by a health care practitioner who has more than 15 years experience.

The business has a few weaknesses including ineffective management, slowdowns in revenue growth, and heavy reliant on U.K. market. Despite global expansion, the clinic is still too reliant on the U.K based clients for much of their business. Another weakness indentified in the business is that majority of employees do not have any formal higher academic qualifications. Also the business workload has increased significantly hence the existing staff feel that there are being overworked hence there is need for additional manpower.

Zenith Healthcare also posses several threats that include: - increased competition; economic downturn; inflation; new or changing laws, and innovative services. Increased competition can threaten the business success and this is enshrined by entrance of foreign American companies that specializes in health care privatization. Another inherent threat of the business is the idea of employees toying with the concept of share options. Since the business is a sole proprietorship, any idea of partnership will eventually affect the company's strategies in relation to growth and development, and the company might not be in position to meet it goals and objectives. Another threat relate to sensitivity to health of the economy. While there are some promising signs of economic recovery, fears remain about a double-dip recession or a cascade effect of economic troubles emanating from Europe. As a U.K institution, any effect on the economy as a whole will be immediately felt at the business.

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The most inherent opportunity for the business is on expansion. At a local party, Jerry was offered a chance by a venture capitalist (VC) to acquire a business similar to Zenith healthcare or sell it. The business also has several opportunities that include potential increase in client number, offer unique health care services, exploit social media, and differentiate further. With rapid growth in health care systems and health care reforms, need for health care in the country has increased tremendously and opened an opportunity for Zenith Healthcare (Schneider, Brief & Guzzo, 1996, p 59).

Question number four

Strategic plan that will capitalize on the company's strengths, and overcome its weaknesses

For Zenith healthcare, a strategic plan is very vital in that it acts as a blueprint that helps the business to meet its goals and objectives. The adequacy of the business strategic plan is only determined by the goals it helps to achieve for the organization. The plan should derive a reputable foundation and framework for the business's performance. For the success of Zenith Healthcare, there should be the need of establishing a workable and achievable strategic plan which would capitalize on the company's strengths, and overcome its weaknesses.

Zenith Health care can initiate a plan that increases the business local presence by both organic and inorganic expansion through leveraging brand-recognition and reducing threats of smaller competition. The business can gain greater market presence through acquisition of local, smaller clinics and increased competitive dexterity with primary competitors.

Another strategic plan that the business can adopt is the alternative of increasing manpower and customer base (Stokes, Wilson & Wilson, 2000, p 23).This concept can increase competitiveness in opposition to large competitors and inflate market allocation resulting from diversified and larger customer base. Conversely, Zenith Healthcare could see weaknesses such having unqualified staff, poor management and over reliance of local market getting reduced. With an expectation of a reasonable financial recovery, the activities of the business should concentrate on keeping expenditures to a minimum and selling the business or expansion should not be given much of attention at the moment since in the long run it will affect that focus. . If the plan fails to help achieve positive performance in the company, it means that it is inappropriate and needs amendments or improvements. Therefore, some of the possible recommendations include making the plan attainable and realistic, focusing on matter of importance to the business and also making sure the plan is reviewed from time to time.

Question number five

Whys in which the existing performance could be maintained and strengthened

The current business performance and operations can be maintained and strengthened by adopting the strategic plan that would be line with the company's goals and objectives. This can be maintained by managing quality and performance strategies.

Performance can also be strengthened by adopting appropriate engagement and study which gives the topmost approaches capable of improving performance and making realization of goals much possible. This concept enhance information derivation and give possible opinions and solutions which have the capacity of improving business performance and making realization of goals and objectives much possible (Mahadevan, 2008, p 44). For a business enterprise like Zenith Healthcare, the presentation of such kind of strategic plans is appropriate as it set the place for necessary approach which has the capability of improving performance and making realization of goals much possible. This also brings out an establishment on the major problems which have been faced within the business and also present possible solutions through which such problems will have to be addressed.

So as to be able to provide the best of performance in the business, there is something known as performance management which should be given the biggest consideration and such would be necessary as it will be able to present the best of approach which will lead to the best of performance within the operations of the business. Performance can also be maintained by hiring highly qualified employees, providing transparent rewards structure, and providing a policy on career progression (Schneider, Brief & Guzzo, 1996, p 98).

Question number six

New areas in which the business could be expanded

With diverse customer base and services, the business can be expanded by engaging in other activities that are worthwhile such as health consultancy services. As a renowned surgeon, Jerry can offer consultancy services to patients at a fee. Also the business can gain greater market presence through acquisition of local, smaller clinics which provide opportunity for stable competitive advantage. With assistance from a venture capitalist (VC), Jerry can also open other establishments similar to Zenith healthcare.

The business venture can also develop e-business services. An e-business model will allow Zenith Healthcare to grow its local as well as it international customer base. This eliminates a weakness of slowdown in growth and enables the business to provide innovative services that minimize competition. The business can also be expanded by opening satellite clinics which offers services that are in line with the overall business goals and objectives.

Question number seven

Areas that need attention

Despite the fact that the business is doing well in term of revenue generation, there are other areas that need immediate attention. Jerry does not give the business full attention it deserves, also the business has more than 5 permanent employees, but there is no one officially in charge of the daily operations. Sales increases alone do not mean anything much when it's not inline with cash (in) flow, because most of the time it leads to severe strain on the company's overdraft.

Jerry still works full-time for the NHS as Consultant in General Surgery and this affects his role as the proprietor of Zenith Healthcare. If unable to handle the operations of the business, Jerry should hire and administrator who should be charged with the responsibility of manning the business in day to day activities. Regarding the possibility of floating shares, Jerry should view this prospect he regard as an issue,as an opportunity for growth and expansion for the reason that ,high operating capital will provide highly quality services and products.

Another area that need attention relate to delegation of duties in respect to ones qualifications and experience. Analysis shows that most the staff available do not have specific duties and they work as a team, where they specialize in marketing and sales, operations: recruitment, credentialing, scheduling, making presentations, Service Level Agreements, after-sales, client-account management, and site visits. In any business enterprise, delegation of duties is vital in that it promote professionalism and responsibility (Porter, 1980, p 44).

Question number eight

Business plan and incorporation of appropriate changes

Generally the main aim of any given business venture is to generate profits by serving customers and clients in an appropriate manner. Several procedures are usually applied to make sure such goals are realized. Business plan can be changed from time to time to conform to changes in the business world. In regard to Jerry business plan, changes done will incorporate all the corrected issue affecting the business (Mahadevan, 2008, p 24).

It's through the concepts of business planning where all the individuals in the institution or organization will be mentored towards such change development.

The rate of change in the business field has increased in recent years, and this rapid development is as a result of frequent innovations and advances in science and technology. Development in science and technology has made many health care clinics, including Zenith Healthcare to change old ways of dealing with health matters. The business plan should be redrafted in such a way that it include the changes made in the business for the entire period it has been on operation.

It is also necessary for Zenith Healthcare to carry out SWOT analysis to ensure both internal and external factors influencing the business performance have been assessed. Also, the new plan should include an attainable new mission, a realistic vision, and a genuine philosophy. Strategies, goals, programs and objectives should also be well defined in the plan (Sioukas, 2003, p 729).Once these measures are taken into consideration; definitely the business will achieve all its business objectives and goals.

Question number nine.

Action plans to implement changes

In the business field there are very many concepts that businessmen can adopt to make their business better. One common way is through an action plan. When implementing changes in the business, it's very important to analyze the present state of the business. Regardless of the reason for change, specific elements need to be in position to implement those changes successfully (Stokes, Wilson & Wilson, 2000, p 24).

Changes in organization are implemented following a laid down procedure that include:-drafting of changes and passing them over to employees. This strategy helps employees to know the progress of the business. The second procedure of implementing change involves choosing individuals that will steer ahead the changes. The third procedure entails developing and designing a comprehensive plan of action. This stage is critical in change process in that it determine the specific changes that ought to be implemented. The exact timing of this process is very significant to the overall growth and development of the business. The final procedure of implementation of change involves the process of follow -up, which analyze results.

Effective implementation of changes brings about transformations in the company culture, systems and strategy. Effective implementation increase performance and productivity thus the organization is able to see majority of the employees getting the greatest benefits from the very efficient management in the organization. Action plans in relation to changes in the organization should be optimistically mentored so as to augment cohesive groups while promoting partnering. This will be the best approach towards ensuring that the both the employees and employer benefit from the working experience offered in the business.

Question number ten

Impact of changes on the business

If an organization adopts new behavior or idea, it is said to have gone through an organizational change. Definitively, organization change simply refers to transformations that occur in a business or organization. In technical terms it relates to situations where companies systems are disturbed by either internal or external forces. As a process, it involves adjustments of the organization structure or processes which at times can be good or bad. The concept of Change generally entails innovation, which involves the basic idea of introducing something new into the organization (Sioukas, 2003, p 76).

Change in an organization is very significant in that it ensures efficient and effective methods, and techniques are used in achieving the business goals and objectives. Changes in organizations assists the management to identify and rearrange their priorities hence ensure proper methods are effected to address them. The untimely stages of a good organization change establish effective strategic planning that entails review of organization's mission and objectives. This concept provides significant basis for future analysis and planning. Eventually, it also spells out the organization responsibility and what ought to be done to fulfill them. Changes in business enable the organization management to carry out controlled modifications that brings out the current performance culture that is in line with global requirements. Changes also help the organization to produce products and services that are compatible with global markets, customer needs and requirements, and that meet global standards (Stokes, Wilson & Wilson, 2000, p, 45).

Question number eleven

Concepts of change management

In order to promote efficient management of any given institution, the best approach will be in coming up with ways of managing organizational change and performance. The concept of Change generally entails innovation, which involves the basic idea of introducing something new into the organization. Organizational change concentrates on improving existing structures and entails activities that are focused on strengthening and developing the organization productivity and sustaining its subsistence (Porter, 1980, p 64).

Knowledge and Understanding of elements of change within an organization, is integral to administration of change initiative. For success of any change implementation, the following critical success factors must be there, leadership commitment and team work; development of clear vision and strategy, effective communication between the management and the employees, employee involvement and recognition and employees' development.

Managing change tends to get employees to reconcile personal goals and objectives with those of the organization. It also helps an organization to turn marginal business around and increases profitability and productivity of any organization. A concrete development of clear vision and strategy encourage successful implementation of change. Given that most organizations understand the definitive objective of business is to increase its value over time, it makes sense for them to establish a management system and strategy that embraces that key objective that is enshrined to build company value. Effective visions and strategies makes organization changes successful and build business value by increasing cash flows while reducing risks through teamwork and workers working together

Another factor that promotes successful implementation of organizational change is the concrete aspect of awareness of norms (Ohmae, 1988, P 79). The process of allowing employees to participate in the creation and development of new standards promote a sense of wellbeing and respect in the part of the employee and this encourage positive development of organization change. The issues of Industrial and organizational Psychology in relation to organizational change improve Group cohesiveness and promote effective administration of duties and there is delegation of duties hence workers are not over burden to do a particular piece of work .Due to this concept, employees tend to concentrate on jobs in which they have technical skills or which they are experts.

The concept of involvement, recognition and respect for one another is also very important factor. No employee or employer would like to associate or want to work with an individual that is insensitive and rude towards everyone in the workplace. People being able to show professionalism and discipline in workplaces can provide essential considerations that can help the work environment run efficiently and promote effective implementation organizational change (Mahadevan, 2008, p 56).

Question number twelve

Issues of change and possible solutions

Workplaces consist of employees from all walks of life and being of such diversities, problems are set to emerge especially during layoffs and transition to organizational changes. Majority of these issues relate to interaction between the employees and the management and others between employees themselves (Eisenhardt & Kathleen, 1997, p 34).

The concept of motivation is important in achieving effective organizational change, when this is lacking in an organization, the organization is unable to fulfill its functions. Other problems that prevent organization from undertaking smooth organization changes include the issue of Unrealistic expectations where the management implement certain policies and fail to meet the organizational goals and objectives. Lack of clear direction and authority from the management makes it impossible to implement organizational changes. The perception of change plan is essential after application quality concepts. In most situations, people don't like change because they always don't like changed (Eccles, Robert, & Nitin, 1996, p 56).

When the concepts of change come into view, fear and resistance to change follow - often despite its obvious benefits. People fight against the concepts of change because they: fear to lose something of great importance, or they don't understand the concepts of change and their implications or they don't find the concepts making sense to them or they find it difficult to cope with speed or level of change.

Resistance to change can be averted via: Commitment: From the CEO to the janitor, all workers should be committed to the change plan. Change should not be debatable. With tender esteem it must be made clear to every employee that that change is not an alternative, it is a requirement. Input: people affected by the changes should be given chances to air their opinions. Accountability: Every individual in the organization should be held responsible for applying his or her personal change activity. Not meeting the responsibility must carry or recognition. The organization should put mechanisms that honor the successful implementation of the change plan as well. Evaluation: the management should examine the success of implementation at designed intervals Denison, 1990, p 78).


In order to promote efficient management of any given institution, the best approach will be in coming up with ways of managing organizational change and performance through which all the individuals in the institution or organization will be mentored towards such a development. This will end up increasing performance and productivity thus being able to see majority of the employees getting the greatest benefits from the very efficient management in the organization. In conclusion, Jerry's business is destined for success if he adopts the strategies mentioned above.