Clermont Health Facility Feasibility Analysis

Feasibility Analysis

Melissa Checa

Yesenia Diaz

Julio Valle

Emmanuel Clermont

Aylin Mejia

Course ID: MAN 4900

Miami – Dade College

Instructor Name: Dr. M. Milena Loubeau

January 24, 2017

Table of Content

Introduction ……………………………………………………………………………………..   3

Executive Summary……………………………………………………………………………… 4

Industry and Market Analysis ………………………………………………………………….... 5

        Pestle Analysis ……………………………………………………...………………... 5 - 6

        Porter’s Five Forces ………………………………………………………………….. 7 - 8

        SWOT Analysis …………………………………………………………………………. 9

Product or Service Analysis ……………………………………………………….……..... 10 - 11

Financial Analysis …………………………………………………………………..…..…. 11 - 12

References ………………………………………………………………….…………….…….. 13

Appendix …………………………………………………………………………………….…. 14

Introduction

The purpose of this feasibility analysis is to explain the industry, market, product, service, and financial analysis of Clermont Health Facility.

Executive Summary

Clermont will be a nonprofit organization, dedicated to help the needy and the downtrodden section of the society. Also, helping the US community, including the sick people with no financial help and no income; who are also denied the treatment elsewhere. The business plan has been developed after a rigorous industry analysis. Our industry analysis finds that there is a significant scope of growth of a nonprofit business organization as our long-term care facility.

        Various socio-political, economic, and technological developments have given us the idea of this organization. These developments include growing political influences on healthcare advances, global government influence on healthcare cost, government control of Medicaid, Medicare funding, increased average age of the population, growing demand for reducing the carbon footprint of the business, etc.

        We used Porte’s Model for conducting industry analysis. We studied the following using Porter’s model: Competitive Rivalry, Threat of New Entrants, Substitute Products, Bargaining Power of Customers, and Bargaining Power of the Supplier.

        We also conducted SWOT analysis to gauge the very specific for Clermont and will evaluate its core Strength, Weakness, Opportunities and Threats of faced by the organization.  Furthermore what environment is offering it, and what is the risk it is posing. Our Industry mapping, financial feasibility, in addition SWOT analysis show us that our business model has a significant probability of bearing a success.

Industry and Market Analysis

Pestle analysis, is a concept in marketing principles. This concept is used as a tool by companies to track the environment they’re operating in or are planning to launch a new project/product/service etc. Pestle is a mnemonic which in its expanded form denotes P for Political, E for Economic, S for Social, T for Technological, L for Legal and E for Environmental.

Political factors determine the extent to which a government may influence the economy or a certain industry. Some issues facing Clermont are growing political influence, global government influence on healthcare, government control on Medicaid funding.

Economic factors are determinants of an economy’s performance that directly impacts a company and have resonating long term effects. Issues we may face are increase cost of living, cost of insurance prices, technology and rise in interest rates.

Social factors scrutinize the social environment of the market, and gauge determinants like cultural trends, demographics, population analytics etc. Increase average age of population, patient expectations increase and demographics constantly changing.

Technological factors pertain to innovations in technology that may affect the operations of the industry and the market favorably or unfavorably, the demand on new medical treatments, customized treatments, and advance facilities.

Legal factors have both external and internal sides. There are certain laws that affect the business environment in a certain country while there are certain policies that companies maintain for themselves. There is constant change to drug regulations and consumer laws as well as health and safety regulations.

Environmental factors include all those that influence or are determined by the surrounding environment. Developing green business and having good environmental agenda.

Pestle Analysis Chart

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Porters Five Forces

Porter's Five Forces model, named after Michael E. Porter, identifies and analyzes five competitive forces that shape every industry, and helps determine an industry's weaknesses and strengths. The forces effecting Clermont are the competition in the industry; Growth opportunity for healthcare companies are expected to grow in the next few years. There is also an increase in new revolutionary drugs both in and outside of the US.

Also, the facility can be affected by the potential of new entrants into the health industry; strict government regulations which make it difficult to keep up due to constant change and huge startup cost. The Power of suppliers play an important role, the medical suppliers have a large pricing power. Bargaining power of physicians and nurses is huge because of large hospital benefits.

On the other hand we have the Power of customers that have significant impact on the industry. Generic drugs offered at large discount to consumer, less customized healthcare facility with lower housing costs, several facilities offering similar services. The Threat of substitute products can definitely harm us. The Threat Clermont faces with the large substitution of product and service at lower cost for the patients, and that larger hospitals have greater purchase power and are always more attractive to the consumer.