Essay Instructions: The subject of the assignment is India's Apollo Hospitals Group. The written paper should include a succinct executive summary and conclusion to improve readability, double spaced Calibri font size 11 with corresponding chart and graphs to correspond to financial projections for strategic marketing plan.
Analysis of the organization's situation forward to present day, identifying and assessing the strategic alternatives facing the current Apollo Hospitals group organization as of September 2014.
Use Porter's Five Forces, Resource Based and SWOT analysis.
Strategic Alternative Identification & Fit Assessment
Prepare environmental analysis of Indian domestic & global healthcare industries.
? Identify threats facing Apollo
? Assess Apollo?s current competitive position, capabilities, and deficiencies
? Identify strategic alternatives facing Apollo and which are most viable to pursue
Strategic Choice & Strategy formation
Describe and defend our choice(s) as the best way for Apollo Group to grow and/or protect its current competitive positions(s).
? What business strategy(s) will we pursue as a result?
? Make sure not only to identify which current organization capabilities we want to leverage, but also future capabilities Apollo needs to develop in order to execute our strategic recommendations effectively.
? Explain why these capabilities (current & future) are important and why/how the organization is realistically positioned to leverage or develop these, and,
? Exploit the opportunity(s) we have identified or will mitigate the threat(s) facing Apollo.
Consider different models of healthcare delivery and payment systems. How might the design/nature of these systems in the relevant markets influence the nature of the strategic choices facing the firm? NOTE: review the rubric questions as well.
What other strategic recommendations should Apollo?s leaders make in regard to management, governance, and future strategic decisions? (Consider what is needed from the top management.; suggest and defend an appropriate structure (formal/informal) to accommodate our choice, and explain our choices and initiatives and why we believe we are advocating for will position Apollo?s brand for the years ahead.
Finance Questions:
Provide financial support for your strategic recommendation(s) including .xls file, supporting charts and graphs. More specifically, estimate the costs and benefits (after-tax cash flows) that will occur based on your long-term strategic choice(s) and then determine if the strategic choice(s) is/are expected to be value enhancing (based on the estimation of various performance measures). Estimate inflows infinitely, and outflows out 10 years.
Provide clear assumptions in .xls file, estimate discount rate, WACC, Cash flows, performance measures and risk assessment.
? Application of at least one risk assessment tool is expected with a discussion of the implications the results have regarding the risks associated with your strategic choice(s). Clear presentation of your assumptions is required and justification for these assumptions is useful whenever possible.
Economics Questions
When explaining and defending the strategic opportunity (or opportunities) the firm should pursue, be sure to include an economic analysis of your position. Specifically, the following questions should be addressed:
? Explain the factors affecting Apollo?s pricing decisions:
o Categorize the major costs tied to your strategy as either fixed or variable and explain how this contributes to your pricing strategy if at all.
o Would you anticipate a competitive, monopolistic, oligopolistic, or monopolistically competitive market structure for your product or service?
How does this impact your overall strategic choices if at all?
How does this impact your pricing strategy? Please note that this analysis should also tie into the marketing section?s questions about how you will differentiate your offerings.
o Are the goods and services provided to the customers inelastic or elastic? How does this impact your pricing strategy if at all?
o When discussing pricing strategies, actual numbers are not necessary. Please discuss, however, whether prices would be higher, lower or similar to current substitutes and/or past prices that have been used. Also, please be sure to also include a discussion of how the potential customers will pay for the goods and services (e.g., out of pocket, government health program and/or private insurance programs).
?Is this good or service subject to any market failures (such as positive/negative externalities, monopolies, asymmetric information, etc.)? If so, would you expect the Indian government or other government entities to become involved? Would you perceive this involvement to help or hinder your success?
Health Systems Questions
? As you analyze the barriers and opportunities within and outside of India?s health care industry, consider the models of care that may be financially beneficial to Apollo. In particular, what opportunities are available to Apollo that may not exist in the U.S. because of regulatory systems or other barriers? What are the gaps in the current Apollo approach to providing services?
? What is the comparative effectiveness of India?s health care system and the western countries Apollo may target for medical tourism?
? How can Apollo design a health care delivery system that effectively balances profitability with their mission to bring quality health care ?within the reach of every individual? in a country where 33% of the population earns less than $1.25 per day?
What resources does the firm have, and have they built out? what are the product line extensions? what can they be best positioned to exploit, in line with their enterprise strategy? Make a recommendation to be a leader in teaching hospitals, with recruitment of large scale fortune 500 companies.
Sending case files and additional information.
