A good financial strategy can always be improved. Having knowledge of your organizations finances provides the leverage to make decisions that affect the outlook and goals of t
Part1
A good financial strategy can always be improved. Having knowledge of your organization’s finances provides the leverage to make decisions that affect the outlook and goals of the company. This assignment gives you an opportunity to examine company practices from a financial lens, which provides you with insight into what drives financial decisions for a health care system.
Obtain a recent financial statement for your organization, detailing expenses and revenues (This can be from within the last year. You may need to work with your supervisor to obtain a financial statement.).
Note: If you cannot access a financial statement, discuss it with your faculty member.
Write a 1,225- 1,550-word report on the major trends in your organization’s expenses and revenues. Include the following points:
Analyze any trends in expenses and revenue that you see. Are they on target to meet budget goals?
How can your organization contain or reduce expenses without damaging services and quality of care?
Can your organization’s reimbursement strategy be improved to increase revenue? If so, what would it be, and how would it be implemented?
How can your organization use its financial performance to build its brand?
Cite any references to support your assignment.
Format your citations according to APA guidelines.
Part 2
Respond to both responses with 50 words minimum and a reference for each response.
R1
The word reimbursement refers to repayment of money to a person who has lost or spent money . The Value based purchasing refers to a payment model in which incentive is given to the physician , nurses doctors and other medical staff according to their performance .
Value based performance or value based purchasing is highly successful.Because value based purchase is based on performance that is comes after treatment of patient . Patients are satisfied and it is also less expensive. Patients are highly satisfied because doctors and nurses do their best to achieve higher income. Types of reimbursement : 1) Fee for service : This model is solely based on what performance doctors give. For example 20 minute consultation etc.. Capitation : capitation is a payment received by a service provider for a specified population for a period .
Capitation provides incentive to doctors or other staff by increasing their income. Out of the three mode of payment the best one is payment based purchase because through this doctors can provide more satisfactory services to patients . This all is less expensive and poor patients can also get best services.
R2
Value-based purchasing (VBP) is financial incentives programs that aid healthcare providers with the quality treatment provided to patients. These incentives are linked to the provider's performance on a set of defined measures to achieve quality healthcare rather than quantity. VBP focuses on better personal care, population health, and lower costs (CMS' Value-Based Programs, 2022). Measuring the success of these programs is difficult. I don't think the last ten years have provided enough evidence to prove any one program has caused a significant improvement in healthcare costs. According to an NIH article, only two studies with weak designs have been found that showed cost savings and a positive return on investment (Damberg et al., 2014). The article also talks about six direct studies to measure CMS payments. It found that, the studies were concluded in a short period and a lack of comparison group, and could not come to a conclusion at the end of the research.
References
CMS' Value-Based Programs. (2022, March 31). CMS. Retrieved August 20, 2022, from https://www.cms.gov/Medicare/Quality-Initiatives-Patient-Assessment-Instruments/Value-Based-Programs/Value-Based-Programs
Damberg, C. L., Sorbero, M. E., Lovejoy, S. L., Raaen, L., & Mandel, D. (2014, December 30). Measuring Success in Health Care Value-Based Purchasing Programs: Findings from an Environmental Scan, Literature Review, and Expe
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Starbuck SWOT Report
Student’s Name
Institution Affiliation
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Professor’s Name
Date
Starbuck SWOT Report
Part 1
Starbucks, the world’s largest American coffeehouse chain, operates more than 6,000 Starbucks locations in more than 100 different countries (Gupta, 2022). It began as a small Seattle coffee shop business in the early 1980s and expanded quickly in the 1990s. With the inspiring vision of Howard Schultz, it evolved beyond a coffee shop to become a meeting spot in-between places to work and live.
Some Starbuck opportunities include; Globalization in developing nations like China, India, and even parts of Africa might present the organization with excellent opportunities. In order to increase prospects for overall income growth, it can diversify its business operations even further. Additionally, creating items based on consumer preferences in a particular target market is a lucrative possibility. Co-branding always has advantages. Starbucks has the chance to form alliances and partnerships with significant large companies. Partnerships would increase its market share and presence. There is still room for growth even though Starbucks is at the forefront of cutting-edge coffee technology cite. The newest coffee trends and technologies offer countless opportunities, from best foam technology to snap-chilling, return to black, and RSI-reducing gadgets (Gupta, 2022). Several coffee shops rapidly expand their customer base by providing standard and premium coffee to appeal to diverse social strata. Starbucks may sell cheaper regular coffee to the middle class while selling its more expensive variation as premium. Starbucks can improve its online sales channels to get more clients to pickup locations or curbside coffee pickup. Currently, clients who want Starbucks coffee delivered use Uber Eats, Grubhub, and Postmates. To provide a better customer experience, Starbucks should launch its coffee delivery service (Gupta, 2022).
Threats include; Competition from retailers selling inexpensive coffee. Several coffee shops sell coffee for reasonable prices. The stability of Starbucks, which charges higher pricing, may be threatened by this. Rivalry with significant retailers, Its market position may be threatened by aggressive rivalry with large corporations like Dunkin' Donuts and McDonald's.
Starbucks' supply chain comprises numerous third-party vendors and stakeholders, making it challenging to manage the entire chain properly. In addition, Starbucks has numerous social threats. These sociocultural movements promote modest, independent businesses and local cafés and resist the growth of sizable international franchises. In March 2018, Starbucks and other businesses were ordered to label all of their coffee products with warnings. The warning had to do with stopping the misuse of chemicals that might result in cancer. With a shift in consumer behavior, the pandemic will keep altering consumer behavior and reducing discretionary expenditure.
Additionally, Starbucks' development plans and operations may be negatively impacted by the downturn of the restaurant business and other macroeconomic issues. Increasing costs for coffee Beans Arabica, Starbucks has seen a sharp spike in price during the pandemic due to worries about its scarcity, hoarding, and disruptions in the supply chain. Any additional money used to buy unroasted coffee beans at a higher cost decreases Starbucks' profitability.
The significant economic trends in the coffee house industry include; targeting younger audiences, new coffee brewing methods, custom ordering trends, Artisan coffee and specialty drinks, and coffee tasting (Diaz,2021). According to economics, people always respond to incentives. Thus, coffee tasting will increase consumers. These trends would benefit Starbucks' strategic goals, which are to grow its international retail business to increase market share by building outlets in new or supplemental markets on a limited basis and increasing and retaining customer loyalty. According to the Starbucks report (2019), it intends to open 1,050 of its 1,100 net new locations abroad in fiscal 2021.
The economy in the market presents opportunities and threats for Starbucks. The scarcity, demand, and supply of coffee beans in the coffee house industry could be an opportunity for Starbucks. The government's response to the coronavirus severely impacted the entire sector. However, while small local competitors were frequently driven out of business because they lacked the financial reserves to survive prolonged closure or the digital infrastructure to sell coffee in bulk curbside, large chains like Starbucks had the resources to survive the disruption (Hunt, 2021). After that, Starbucks came in to satisfy the increased demand brought on by the closure of neighborhood coffee shops. The main external economic driver for Starbucks is the ongoing global economic recession. This element, as already indicated, hurt Starbucks' profitability customers, and it has switched to less expensive alternatives. The business must contend with increasing labor and operating expenditures. There is much tension due to the rising cost of living and declining profitability. Other economic variables that may have an impact on Starbucks include: Exchange rates for local currencies, Local economic conditions in various markets, Taxation rates Economic factors' effects on Starbucks'
According to National Coffee Association (NCA), in 2015, the coffee industry in the US had a $225.2 billion economic impact; the consumers spent $74.2 billion on coffee. In the US economy, the coffee business supports 1,694,710 employees. Nearly $28 billion in taxes are generated by the coffee business (including ancillary goods). Starbucks's strategy to support low-income communities by adding more local jobs, creating space for events, and featuring local artwork can influence the economy in my area through economic developments like taxes payment and job creation.
References
Diaz, M. (2021, November 8). Coffee shop trends: 10 trends to watch in 2022. Cloud-Based iPad & Android Point-of-Sale (POS) System | Poster POS. https://joinposter.com/en/post/coffee-shop-trends
Gupta, S. (2022, March 26). Starbucks SWOT 2022 | SWOT analysis of Starbucks. Business Strategy Hub. https://bstrategyhub.com/swot-analysis-of-starbucks-starbucks-swot/
Hunt, R. (2021, July 26). Why Starbucks could emerge from the coffee shortage even stronger. The Motley Fool. https://www.fool.com/investing/2021/07/26/why-starbucks-could-emerge-from-coffee-shortage/
Part 2
Official federal health care policy for the past 40 years has focused on market solutions, underlining the reliance on competition to improve quality and access and reduce costs; this economic policy has not been successful. The American healthcare system is redundant, unsustainable, and extremely expensive. According to a study by Shrank (2021), America's uninsured population is high; health care affordability is declining, and racism contributes to unacceptable inequities. Many of these flaws were evident during the (COVID-19) pandemic, which added unprecedented stress to an already overburdened system (Shrank,2021). In other industries, competition boosts innovation, raises quality and efficiency, and lowers prices. Healthcare should not be an exception. Health care payers and providers should cease opposing the formation of a competitive health care market and instead focus their approach on competing on value (Leemore& Thomas, 2016). In some situations, competition is a viable strategy for boosting effectiveness, productivity, and health standards. Competition has critical importance in determining how market forces may be able to enhance the healthcare system.
References
Leemore S. and Thomas H. (2016, December 1). How to bring real competition to the health care industry. (2016, December 1). Harvard Business Review. https://hbr.org/2016/12/health-care-needs-real-competition
Shrank, W. H., DeParle, N. A., Gottlieb, S., Jain, S. H., Orszag, P., Powers, B. W., & Wilensky, G. R. (2021). Health Costs And Financing: Challenges And Strategies For A New Administration: Commentary recommends health costs, financing, and other priorities for a new US administration. Health Affairs, 40(2), 235-242.
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SWOT Analysis
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Strengths |
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What does the organization do well? |
Starbucks' profitability has risen to 14% in recent years. It also outperforms its competition with a 24.54 percent ROI and a 29.16 percent ROE. Starbucks is known for its high-quality coffee and friendly service. Starbucks reinvests money in new sites. Its effective operations and strategic decisions have benefited the company greatly. Starbuck's reward program keeps people hooked on coffee. For every $1, you get 3 stars. Collect 150 stars for a free drink. Rewards members also get mobile payment, pre-order, and free birthday drinks. |
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What unique resources can the organization draw on? |
Its $4 billion brand is the most valuable in the coffeehouse industry. Starbucks' customer service is one of its major features, with precisely blended coffee, premium music, helpful personnel, and a nice atmosphere. Starbucks has implemented gender-neutral restrooms to safeguard the LGBT community from persecution. It's in response to anti-LGBTQ measures that target transgender persons. |
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What do other organizations see as strengths? |
It has over 20,000 coffeehouses in 60 countries, making it the world's largest coffeehouse network. The company offers a wide range of advantages and a greater salary than competitors. Employees hired between July 2021 and October 2021 had their hourly pay increase by 5%. Starbucks' tenured employees will also see a 6% pay rise. |
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Weaknesses |
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What could the organization improve? |
Starbucks' profitability and coffee price are heavily reliant on the price of coffee beans, which is a commodity. Starbucks doesn't have the most unique offerings. This makes copying products easier for competitors. McDonalds McCafe and Dunkin Donuts provide nearly identical items. . It was criticized for its tax evasion in the UK. Reuters discovered it had not paid tax on £1.3 billion in sales for three years prior to 2012. |
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Where does the organization have fewer resources than others? |
Starbucks can't predict the price of this coffee or the company's profitability due to hedge funds and weather. Starbucks provides amazing coffee and customer service at a hefty cost. Environmentalists and social activists slammed the company's unscrupulous procurement practices They claimed it buys coffee from poor third-world growers. It's also accused of breaking "Fair Coffee Trade" rules. |
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What are other organizations likely to see as weaknesses? |
Compared to 3 Starbucks coffee, McCafe premium coffee was cheaper and better assessed. The corporation is constantly criticized for its lack of environmental initiatives, tax avoidance, and mistreatment of some suppliers. According to a Mashed poll, almost 21% of coffee drinkers despise Starbucks' "Iced Latte." Starbucks introduced it as a Christmas drink. Sadly, the drink was a bummer. Many consumers complained Starbucks' iced latte was excessively sugary and not worth the hefty price. |
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Opportunities |
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What opportunities are available to the organization? What trends could the organization take advantage of? |
Starbucks cannot cultivate its own coffee beans and must purchase them from suppliers based in South America, Arabia, or Africa. Starbucks needs to expand its supplier network to assure vital supplies for its Asian operations, minimize reliance on harvests in Africa and South America, and reduce shipping costs. There are several chances for coffeehouses in China, and they can diversify their businesses to increase overall revenue. Developing items based on customer preferences in a certain market is also profitable. |
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How can the organization turn strengths into opportunities? |
India, where Starbucks operates a small number of outlets. The company may increase the number of coffeehouses that serve wine and beer, add additional goods, and reach a larger audience. Its products are sold by various stores as well as by its own coffeehouses and franchisees. It should develop additional partnerships and sell its coffee in supermarkets, for example. Some coffee shops are rapidly expanding their clientele by serving both normal and premium coffee. Starbucks can sell cheaper normal coffee to the middle class while still selling its costly premium coffee. |
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Threats |
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What threats could harm the organization? |
The chain is heavily reliant on coffee and dairy prices that Starbucks cannot control or anticipate. Starbucks is frequently involved in costly trademark infringement cases. Local cafes might provide reduced prices and better menu options. Starbucks' supply chain is complicated by numerous third-party contractors and stakeholders. Starbucks coffee shops in the Midwest faced shortages in 2019 due to a strike by a key supplier. |
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What is the competition doing? |
Big coffeehouse chains specialize to avoid competing with Starbucks. Starbucks faces fierce competition in both cases and loses market share. Experts expect the epidemic will continue to change customer behavior and constrain discretionary expenditure in wealthy economies. Also, the restaurant industry's collapse and other macroeconomic issues may impact Starbucks' development plans and operations. |
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What threats to the organization expose weakness? |
Starbucks will struggle in these markets. Starbucks may face supply delays due to political, economic, and weather factors. Dietary racism entails enticing BIPOC (Black, Indigenous, and People of Color) communities to buy unhealthy foods by lowering prices. The hoax, according to Switch4Good, effectively called out Starbucks' methods. |
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References At least 3 reference is required |
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1. 1. Starbucks Was A Complete Failure In Australia (Business Insider Australia, 2013) Starbucks Was A Complete Failure In Australia (businessinsider.com.au) |
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2. Starbucks in Australia: Where did it go wrong? (ABC News, 2010) |
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3. The Australian 2014, New Owners For Starbucks Australia. |
Summary Analysis
Starbucks is a global coffee shop brand with over 6,000 stores in over 100 countries. Founded in the early 1980s as a modest Seattle coffee shop chain, they grew rapidly in the 1990s. They now own 5,689 cafes in 28 countries. Howard Schultz (Chairman and Chief Global Strategist), Howard Behar (Head of North American Operations), and Orion Smith (Chairman and Chief Operating Officer of Starbucks) make up the H2O executive team (CEO). Despite its phenomenal expansion since going public in 1991, the company has faced various challenges. Its problems had escalated in both the US and worldwide. The company says the baby boomers helped it succeed in the 1990s, but the environment no longer appeals to Generation X, and the younger generation feels out of place in the coffee shop, especially when the coffee seems pricey to them. Starbucks faced three major threats in the US market. One was the oversaturated market (USA).
Due to the limited product variety, the firm may grow slowly, and clients may lose interest, causing them to seek other possibilities. The US and Canada have more concentrated markets. Starbucks started with 17 coffee shops in Seattle 15 years ago and has grown to over 16,000 stores in 44 countries, including over 11,000 in the US and Canada, with only eight states without a Starbucks. Starbucks is based in Seattle. Amazingly, there are currently 4,247 stores across the US and Canada. Seattle has one outlet per 9,400 persons. And the corporate thinks this is the peak of coffee shop saturation. Another risk is client loss due to limited customer selections. In business, corporate strategy refers to an organization's overall scope and direction, as well as how its various business processes work together to achieve specific goals. Modern business strategies usually emphasize the development of global brands and products. They see this as an opportunity to quickly dominate the local market, increasing overall income and market share (Holmes et al, 2002).
They claim that while it first costs the preceding store money, it ultimately makes more profit than a single store could generate. However, due to market saturation in the US and Canada as well as the present recession, the company has had to close certain locations while increasing the number of outlets in other regions of the world. Previously, Starbucks was only available in eight states. In this case, however, Starbucks should only open new outlets in places where it does not already have a presence. This will prevent the company from stealing market share from the previous retailer and allow it to create a new market niche. Second, Starbuck's values employee training and appreciation. Baristas and store managers are recruited and trained here, as well as partner awards and training programs. However, real estate, retail design, planning, and 5 building are all linked.
Finally, the "everything matters" approach and uniform assessment help improve retail ambience. Starbucks provides superior customer service, setting them apart from their competition. And qualified employees are essential to accomplish perfection. The way personnel greet and serve clients directly impacts their whole experience. However, maintaining this process is costly. Because Starbucks' products and services are more expensive than equivalent ones, further price hikes may harm the company's business. Customer service is considered as one of the most important parts of any firm. These personnel are a company's most valuable asset. That means providing high-quality products, as well as training and motivating all personnel to give exceptional customer service.
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