MNG3702 Assignment 1 Semester 1 2024 (Solutions)

MNG3702 Assignment 1 Semester 1 2024 (Solutions) ASSIGNMENT 1, SEMESTER 1 Read the Netcare case study thoroughly to answer the questions that follow. All the questions are based on the case study. Please ensure that you read the questions carefully before you commence answering. In addition, please take the mark allocation of each question into consideration when answering the questions. Please use your own words, understanding and interpretation of the theory and application thereof to the case. PLEASE NOTE No emailed submissions will be accepted. No late submissions will be accepted. Netcare Netcare Limited is a South African investment holding company. They operate through several subsidiaries. Netcare offers a unique and comprehensive range of private healthcare services and products across the healthcare spectrum, throughout South Africa. The Netcare Group invests in growing and continually improving their capabilities and capacity, and in partnering with the public sector in South Africa, to support the effectiveness of the national healthcare systems in which they operate. Netcare’s continuous investment in the latest medical technologies and high-level professional expertise and its commitment to caring for patients, make them a leading healthcare provider. The company’s ordinary shares have been listed on the Johannesburg Stock Exchange in South Africa since December 1996, when the company operated four hospitals. Currently, the company has 51 hospitals, two public–private partnership hospitals, 10 605 registered hospital beds, 422 theatres, 10 cancer care centres, 63 renal dialysis units with 860 dialysis stations, 95 primary healthcare centres, 15 Medicross day theatres, 79 Netcare 911 emergency sites, 7 training campuses, 21 763 employees, and 12 mental health and psychiatric clinics with 841 beds. In South Africa, Netcare operates the largest private hospital, primary healthcare, emergency medical services and renal care networks. In addition to its world-class hospital services, the Group offers primary healthcare, sub-acute care, day surgery, occupational health and employee wellness services through Medicross, emergency medical services through Netcare 911, renal dialysis through National Renal Care and mental health and psychiatric services through Akeso. Netcare also has the distinction of being a leading private trainer of emergency medical and nursing personnel in the country. Netcare’s core purpose is to provide the best and safest patient care. Their vision is to: • develop and implement solutions to provide quality healthcare by inspiring their people, encouraging innovation and optimising their operations to deliver value for all stakeholders; • strive for consistent and excellent patient care delivered by people who are passionate about the sanctity of life, personal respect and dignity; • grow their investments in people, infrastructure and technology and develop lasting relationships with healthcare professionals; and • be a leading corporate citizen, proud of their heritage and what they contribute to society. Netcare’s core value is care. They care about the dignity of their patients and all members of the Netcare family. They care about the participation of their people and partners in everything that they do. They care about truth in all their actions. They engage everyone with empathy and respond with acts of compassion in all their interactions with patients and their families. To attain the core purpose, Netcare’s strategy responds decisively to the changing healthcare environment and will create sustainable competitive advantage for the Group. It reinvents how they deliver health and care, moving away from the siloed and episodic approach typical of traditional healthcare provision. It will enable them to provide seamless and integrated services across all their platforms, enabled by digitisation and informed by rich data. As they accelerate its implementation over the medium term (three to five years), they expect to achieve a care offering that is highly differentiated in South Africa, driving above market growth, and earning enhanced returns for the Group. These are the outcomes against which all our strategic initiatives are evaluated and measured. This process is illustrated on the next page: Core purpose Provide best and safest care to patients Netcare’s Strategy Answers the three global healthcare megatrends of consumer centricity, digitization, and data Leverages off unique ecosystem of assets and services Delivers personcentred health and care that is digitally enabled, and data driven How Netcare will achieve person-centred health and care Digitize patient health records across all Netcare service platforms Apply rich data analytics to inform clinical decisions and outcomes Create a customer engagement platform that provides an interface for patients to access their health and care data over their entire lifetime Allows patients to take co-responsibility for their health and wellness Longitudinal records of healthcare during periods of recovery and wellness Netcare’s strategy rests on six pillars, each with clearly defined objectives, plans and projects that in combination will drive the outcomes their strategy is designed to achieve. These pillars are depicted in the figure below and described in more detail on the following page: Person-centred health and care, digitally enabled and data driven Investment Consistency of care Disruptive innovation Transformation of our society Organic growth Integration Each of the above pillars is directly linked to the remuneration of employees. Netcare ensures a balanced approach to growth, profitability and value creation for all stakeholders while generating competitive returns for their shareholders over the long term. In South Africa, they are implementing a systems leadership model where managers are encouraged to use their energy, ideas, and skills to drive innovation across the organisation. Through this approach, Netcare aims to co-create a sustainable future by finding collective solutions to operational challenges and for those in the healthcare system they serve. Netcare’s sustainability strategy is based on three pillars, namely, transformation, reporting on clinical outcomes and environmental sustainability: • Transformation: Netcare is committed to making a positive difference and the transformational culture in Netcare is evidenced by the Group’s sustained progress in transformation. They focus on enhancing Netcare’s black ownership and the race and gender diversity of their leadership. • Quality of care reporting: The Netcare quality management system is designed to provide assurance of the highest quality of care in all Netcare facilities by adopting a multi-dimensional quality framework that includes more than 300 measures of quality. • Environmental sustainability: Environmental sustainability is an integral part of their strategy. In 2013, Netcare received a R500 million loan from Nedbank Corporate Bank in association with the French Development Agency, having set themselves the goal of reducing their energy intensity by 30% within 10 years. Their environmental sustainability programme focuses on ensuring a sustainable supply of energy and water, efficiently managing the use and cost of utilities, and Consistency of care •Delivering consistently excellent clinical services, ensuring best and safest person-centred care Disruptive innovation •Implementing medical technologies, digitisation and data solutions for the benefits of the business and patients driving sustainability Tranformation of our society •Continuing to invest in and develop their workforce and communities Orgnic growth •Driving strategic engagements with doctors and funders, investing to maintain the quality of their facilities and developing new products and services to promote inclusivity and access Integration •Creating strategic and synergistics partnerships between all service platforms and functions Investment •Creating economic value and optimising capacity utlisation recycling and controlling waste. They have strategic partnerships with Energy Management SA and Energy Partners and provide their employees with training and awareness on utility conservation. Sources: Netcare Limited. 2023. Who we are. Available online: Netcare Limited Annual integrated report 2020. Available online QUESTIONS Question 1 (10 marks) ‘The Netcare Group invests in growing and continually improving their capabilities and capacity.’ Make a judgement with regards to the absorptive capacity of Netcare. In your answer, you need to explain the meaning of absorptive capacity and apply the dimensions thereof to Netcare’s systems and processes. (10 marks, of which 2 marks will be awarded to the explanation of absorptive capacity, and 8 marks to the application of the dimensions thereof to Netcare’s systems and processes. PLEASE NOTE, you need to explain each dimension first and then apply it to Netcare. Question 2 (12 marks) Netcare’s vision is to develop and implement medical solutions to provide quality healthcare by inspiring their people, encouraging innovation and optimising their operations to deliver value for all stakeholders; strive for consistent and excellent patient care delivered by people who are passionate about the sanctity of life, personal respect and dignity; grow their investments in people, infrastructure technology and develop lasting relationships with healthcare professionals; and be a leading corporate citizen, proud of their heritage and what they contribute to society. Draw a strategic map for Netcare by specifying strategic objectives for each element of the Balanced Scorecard developed by Kaplan and Norton. (12 marks, of which 1 mark will be awarded to each element of the Balanced Scorecard and 2 marks for the two strategic objectives for Netcare specified for each element. PLEASE NOTE: you may present the strategic map as a table in your answer) Question 3 (14 marks) The alignment between the core purpose, vision, and objectives of Netcare is vital. Explain tools that Netcare can implement to align individual behaviour with its strategic direction. In your answer, you need to explain these tools and then identify two examples of the application of these tools at Netcare. (14 marks, of which 2 will be awarded to each tool correctly explained and 1 mark for each of the two examples at Netcare) Question 4 (12 marks) Every business has its own unique culture. Apply the layers of business culture to Netcare. In your answer, you need to explain each layer first, and then apply it to Netcare. (12 marks, of which 3 marks will be awarded to the first layer, 5 marks to the second layer, and 4 marks to the third layer) Question 5 (14 marks) Businesses need to assess their culture to attract and retain talent to support and implement their strategies. Explain an approach to assess the business culture and apply this approach to Netcare. (14 marks) Question 6 (8 marks) Businesses will benefit from considering a variety of indicators that provide a dashboard of its culture and various subcultures. Explain any four of these culture indicators. In your answer, you need to first explain the culture indicator and then apply it to Netcare. (8 marks). TOTAL MARKS FOR THE ASSIGNMENT 70 mark