Introduction Aetna is one of the nation’s leading diversified health care benefits companies, serving an estimated 44 million people with information and resources to help them make better informed decisions about their health care. The assignment given is about Strategic Management and Strategic Competitiveness for which the author has chosen Aetna. The author is required to assess how globalization and technology changes have impacted the Corporation. Secondly, to apply the industrial organization model and the resource-based model to determine how the corporation could earn above-average returns. Furthermore, to assess how the vision statement and mission statement of the corporation influence its overall success. In addition, to …show more content…
According to Business Dictionary, (2017), technology is the purposeful application of information in the design, production, and utilization of good and services, and in the organization of human activities. It is significantly altering the hypercompetition. Technology has assisted Aetna to purchase bswift is a technology company that offers an online shopping platform for employee benefits. Aetna made this buy to advance their consumer vision as well as to transform the health benefits industry to a retail model that is consumer-centric, affordable and convenient.
Apply the industrial organization model and the resource-based model to determine how your corporation could earn above-average returns.
There are two models for which Aetna uses to assess their earning ability for the corporation. The first model which will be looked at is the Resource based model. This is one strategy that may enable a company to transform or develop its resources and capabilities into core competencies is to organise itself to take advantage of them through firm-specific patterns of combinations of its human resources. Using these resources companies may be able to better utilise their managerial competencies to better organise and manage diverse, complex operations, develop and communicate a strategic intent and
Aetna responded to North Texas’ demand for $2.7M in underpayments by offering increase to all fixed and percentage commercial rates by 0.8% for one-year. Based on Aetna’s projection of volume for North Texas, it determined that North Texas would recover the full amount of its alleged damages during that period. However, because North Texas believed that Aetna was greatly overstating the likely business volume, the parties were not able to agree on a fixed time period for the temporary rate increase. Ultimately, the parties agreed that the temporary rate increase would last for whatever period of time was necessary for North Texas to actually recover additional payments of $2.7M.
The technology is the revolution to all industries it takes a wide variety of services into every industry in one way or the other, from cell phone service to software services, to medical services such as imaging to electronically medical records are just to name a few items on how technology has expanded and used every day.
It is necessary for a firm to expand in order to gain profits or leverage in a market place. One of the ways firms can do this is by executing a merger. There are two types of mergers, horizontal and vertical mergers. There are many incentives for companies to perform either type of merger; however, both types of mergers will always raise suspicion when being executed because they are usually perceived as anticompetitive. In order to prevent an anticompetitive environment, our government established a federal agency called the Federal Trade Commission. Their job is to review the activity of any given firm and decide whether or not to allow them to continue. Presently, CVS and Etna are currently undergoing a vertical merger to gain profits and
Selecting the most appropriate strategic plan is essential for an organizations continuous growth and development. Specifically, looking at the health care industry, Cedars-Sinai Medical Center is a world renowned medical facility, that provides high quality health care services to their patients. This consists of everything from direct patient care to research studies. As a non-profit organization, Cedars-Sinai Medical Center is still a revenue generating business. With that being said, as a business they are required to analyze various tendencies in order to make the best decision that is most beneficial for the organization, the patients and all other stakeholder’s. By identifying Cedars-Sinai Medical Center’s
Knowing the importance of a strategic vision, every company undertakes a complete analysis periodically. In order to create a strategic plan the parties involved must know every aspect of the industry and the company at hand. The purpose of this paper is to describe and analyze the retail drugstore industry and then focus on Walgreens, the industry leader in terms of sales. As part of the in-depth analysis of Walgreens, its major competitors will also be described and analyzed. The retail drugstore industry consists of all those stores that contain a pharmacy and sell prescription drugs. It also includes businesses that sell prescription drugs online and through the mail. Most retail drugstores also offer other
Our business strategy involves providing customers with differentiated, easy to use, secure products and solutions that leverage information to meet customer needs. The types of technology and levels of service that are acceptable to customers and members today will not necessarily be acceptable in the future, requiring us to anticipate and meet marketplace demands for technology. (Aetna Inc., 2014, p.65) Even with this chosen strategy, company’s still need to be competitive on cost.
The major issue that companies have is competitive both advantage and sustained, the difference is that competitiveness with any IT alignment is that competitive advantage can be attained while and sustained was described as a luxury for most businesses but is now viewed as essential for corporations in the industry to that want to keep up with the current trend and still continue to maintain their status in this continuous changing market. As the healthcare business endures the most key conversions to their systems, the advantages for verifying the suitable IT assets in doing this it will give the company longer productive ((Bradley, Pratt, Byrd, Outlay, & Wynn, 2012). As changes to the IT innovation in the healthcare system, the people and organizations who have invested have the chance to take part in debates as to what is operating and what is not performing as designed ( Frisse, 2009).
Technology refers in how Tesco adopt online shopping to attract customer, to purchase goods and services from the business. Another technology might be the introduction of
Executive Summary.……………………………………………………………….2 Problem Statement ………………………………………………………………...2 Situational Description and Strategic Analyses …………………………………...3 Strategic Analysis Overview & History.……………………………………………..3 External Environment.……………………………………………6 Internal Environment.…………………………………………….6 Intellectual Assets.……………………………………………......9 Strategic Formulation Business Level
Vanguard Health Systems is a leading operator of regionally-focused integrated health care delivery networks. The company has a significant presence in several large and attractive markets (Vanguard 2012 Annual Report). The company recorded $5.9 billion in revenues in 2012, up 29.8% from $4.5 billion the year previous. The 2012 net income of $57.3 million is a significant improvement over the $12 million loss the year previous. The company maintains that it is still on a growth trajectory, including via acquisition, and this is an important part of corporate strategy. This paper will analyze the different elements of the corporate strategy at Vanguard.
Selecting a business strategy that details valuable resources and distinctive competencies, strategizing all resources and capabilities and ensuring they are all employed and exploited, and building and regenerating valuable resources and distinctive competencies is key. The analysis of resources, capabilities and core competencies describes the external environment which is subject to change quickly. Based off this information a firm has to be prepared and know its internal resources and capabilities and offer a more secure strategy. Furthermore, resources and capabilities are the primary source of profitability. Resources entail intangible, tangible, and human resources.
Aetna healthcare services is a gathering of an assorted wellbeing related offices that give medicinal services to the general public. It is committed in making the life of the general public better by creating more advantageous situations. This is an unmistakable sign that Standard human services center to make the best for society. Flag human services is one of the real medicinal services gathers that emphasis on giving medical advantage and scope administrations to the general public. This is the biggest single medicinal services administration supplier in US that endeavors to create and give quality administrations to all countries. This exposition examines the association availability in tending to human services needs of the general population in the following decade and their key arrangements in the issues of the system development, asset administration, medical caretaker staffing, and quiet fulfillment.
This refers to the means and the methods used to produce the product or the service supplied (Worthington and Britton, 2009). Although this involves more than information technology, IT is becoming increasingly important. An organisation needs to know what technologies are being used by its competitors in order to remain in the market and not fall behind. To make its product more accessible to customers, a firm must also know what technologies are being used by them and how these technologies affect the firm's procedures. In a time where customers can read information on or buy products from firms around the globe, business conduct must adapt to technologies. This is discussed in Iammarino and Michie's article (1998), which also states that 'technology, computing, telecommunications, broadcasting and so on have opened up the world economy'.
Over the past few years technology has caused significant changes in the way enterprises conduct business.
Over the years, technology has become a major part for a business and for an individual as well. Technology has become so advance that it has made a major effect for the staff as well as for the customers. New technology has helped in many areas such as data and information storage, advertising, transportation and communication.