DISCUSSION
Running head: BUSINESS MODEL AND STRATEGIC PLAN PART 1 1Strategic Plan Part 1: Existing Business or New Business Division; Vision, Mission, and Value Proposition Vanessa Gerring Integrated Business Topics / BUS475
April 10, 2017
Ramzy Noel
New Service Development
DoctorsRUs has decided to create a new division of the company focusing on customer service and providing convenient healthcare to the local population. DoctorsRUs will create a home-based healthcare division that will send medical doctors directly to your home for basic medical care and treatment of minor medical conditions. Home-based medical services will replace traditional doctors’ offices for treatment of minor illnesses (cough, colds, flu, earaches, etc.), minor injuries (tick bites, minor burns and cuts, etc.), health screenings and monitoring (cholesterol checks, blood pressure monitoring, glucose screenings, etc.), skin conditions (rashes, ringworm, lice, etc.), vaccinations (flu, pneumonia, etc), and physicals (camp, sports, etc.).
DoctorsRUs’ home-based division’s mission statement is to provide children and adults with a doctor and a nurse who specialize in family healthcare via home-based appointments. DoctorsRUs will come to you when you are feeling unwell and will provide a diagnoses and basic treatment in your home. If the doctor feels your illness is severe and warrants a trip to the emergency room or urgent care center, they will facilitate getting you where you need to be for the next steps in the healthcare process. DoctorsRUs has agreements in place with local emergency rooms and urgent care center as well as on-call ambulance staff who can transport the patient to the nearest hospital or center to get the escalated care the patient needs.
Customer Needs and Competitive Advantage
The creation of the home-based healthcare division will directly address customer and patients’ needs for medical treatment from the comfort of their homes. When you don’t feel well the last thing you want to do is take a shower, get dressed and drive to the doctor’s office to wait for an appointment or the availability of your doctor. Home-based healthcare will take the stress out of the doctor’s visit and puts the driving in the hands of well-rested and healthy doctors and nurses. Privacy is also important to both the doctor and patient, and with the advancements in technology, our doctors can bring your medical records with them to your home via laptop and VPN technology. The VPN technology will allow the doctor to access your medical records from a safe and secure location in a datacenter while being able to provide the care and attention the patient deserves.
The key differentiator and competitive advantage DoctorsRUs sets to achieve is with their cost structure. Without the overhead costs of a brick and mortar doctor’s office, DoctorsRUs can keep costs low and in competition with local urgent care facilities. The cost would be more than a typical office visit but much less than a trip to the local emergency room.
Vision and Business Model
DoctorsRUs’ vision for the future is to expand our services from our initial location to locations across the United States. To get us there, DoctorsRUs has created the following business model and pricing structure to ensure a decent gross profit while maintaining our company’s mission to provide cost-effective healthcare. The monthly cost for providing our home-based services are shown in the table below:
| Monthly Costs for each Home-Based Doctor / Nurse Team | |
| Doctor’s Salary | $13,000.00 |
| Nurse’s Salary | $5,600.00 |
| Car Payment | $250.00 |
| Car Insurance | $80.00 |
| Malpractice Insurance | $1,000.00 |
| Gas | $250.00 |
| Medical Supplies | $200.00 |
| Vehicle Maintenance | $100.00 |
| Lab Fees / Equipment | $1,400.00 |
| Ambulatory Outsourcing | $1,000.00 |
| TOTAL: | $22,880.00 |
The costs for our home-based medical services each month shows that we will have an outflow of $22,880.00 every month. To offset these costs, DoctorsRUs has created the pricing structure below which is equal to or less than the amount changed by local urgent care centers:
| Price List for Medical Services Provided (per occurrence) | |
| Minor Illnesses | $229.00 |
| Minor Injuries | $229.00 |
| Health Screenings | $229.00 |
| Health Monitoring’s | $150.00 |
| Skin Conditions | $229.00 |
| Vaccinations | $200.00 |
| Physicals | $229.00 |
| Lab Test – A1C | $45.00 |
| Lab Test – Pink Eye | $35.00 |
| Lab Test – Blood Sugar | $35.00 |
| Lab Test – Flu | $45.00 |
| Lab Test – Lipid Panel | $45.00 |
| Lab Test – Mono | $35.00 |
| Lab Test – Pregnancy | $35.00 |
| Lab Test – Strep | $45.00 |
| Lab Test – Urine | $45.00 |
| AVERAGE COST: | $213.50 + per visit |
As shown in the data in the Price List table, the average cost of each visit will be $213.50 plus any Lab test costs incurred. If each doctor/nurse team performs eight home-based visits per day for a total of 160 home-based visits per month, the average income that would be brought in each month is $34,160.00, resulting in a monthly profit of $11,280.00.
Aligning with the Company’s Mission and Vision
As stated previously, DoctorsRUs’ home-based division’s mission statement is to provide children and adults with a doctor and a nurse who specialize in family healthcare via home-based appointments. This mission statement is in direct confluence with the company’s overarching mission statement to improve the health of the diverse community we serve, through excellence in patient care, customer service, and convenient access.
Guide to Strategic Business Direction
Portfolio management ensures that only projects that are a good fit for an organization are selected for implementation and that those projects meet the businesses established strategic goals and objectives (Kerzner, 2013). A company’s mission statement is a declaration of why a business exists and what goals it plans to achieve. The goals of the mission statement must be mirrored by the company’s Project Management Office (PMO) or the group that manages a company’s portfolio.
DoctorsRUs’ portfolio managers within their PMO understand the direction the company is heading and knows all of the factors that should be considered when creating a new service division. The DoctorsRUs’ homes-based division met the business objectives of the company and as was demonstrated in the Vision and Business Model section, will generate a lucrative financial return on investment.
DoctorsRUs’ new home-based division will ensure the company’s continued success, as we understand the importance of portfolio management and how it ties into the company’s mission statement. If the new home-based division didn’t meet the company’s missions statement, business goals and objectives we would not be where we are today, announcing our new service.
Guiding Principles and Values
DoctorsRUs is committed to providing world-class healthcare by demonstrating a culture rich in positivity, respect, and courtesy. To achieve the level of excellence, we transpire to reach we will exceed the expectations of our patients, embrace our cultural differences, own our actions, treat our colleagues with professionalism and bring pride to the DoctorsRUs name.
DoctorsRUs believes that it is our social responsibility to provide healthcare to everyone who needs it. The company also believes in implementing best practices to ensure a better tomorrow such as limiting waste and conserving natural resources. DoctorsRUs uses recycled materials when allowed and recycles all waste products. Electric cars are also used by our doctors and nurses to reduce pollution caused by gasoline consuming vehicles.
Ethics is of vital importance to DoctorsRUs. DoctorsRUs’ code of ethics demonstrates the principles of ethical behavior that will be followed in the workplace. All employees will practice with empathy and kindness while respecting the rights and wellbeing of others. Employees will provide quality patient care regardless of the patient’s race, religion, age, sex, ethnicity, disability, or sexual orientation. Employees will preserve and protect the confidentiality of privileged information and will not, share, reproduce, or publish the information in any form. Employees will comply with all applicable local, state, federal laws, and any state healthcare practice acts.
Conclusion
As demonstrated throughout this strategic plan, DoctorsRUs has decided to create a new division supporting their healthcare practice. DoctorsRUs’ new division will provide home-based healthcare to people in the local area. DoctorsRUs’ home-based division’s mission statement is to provide children and adults with a doctor and a nurse who specialize in family healthcare via home-based appointments which is in line with their company’s mission statement. Customers want convenient healthcare, and DoctorsRUs is in a position to provide it. DoctorsRUs competitive advantage is in their price structure, and there is a monthly profit of $11,280.00 to be gained. DoctorsRUs strategic business direction is managed by their PMO and portfolio managers who understand the direction the company is going. The new home-based healthcare service is in direct harmony with the overall goals and objectives of the company. DoctorsRUs has created an environment steeped in positivity, respect, and courtesy and takes their social responsibility and ethics to heart.
References
Kerzner, H. (2013). Project Management A Systems Approach to Planning, Scheduling and Controlling (11th ed.). Hoboken, NJ: John Wiley & Sons. The Crux of Corporate Strategy Building an Advantaged Portfolio
