Introduction
Seniors’ care is International is a Canadian corporation that is traded on the Toronto Stock exchange under the acronym SCI. The company’s market capitalization is estimated to be $ 154 million. It operates its business under three distinct divisions; homes division, the products division and the services division. The function of the Homes division is to operate homes for senior citizens. The product division on the other hand its function is to develop, manufacture and sell medical products to the senior population. The service division simply provides services to the seniors.
Strengths of SC
Various general strengths are associated with the company. First the company is known to have a superior relationship with banks and credit ratings are at second highest level. G. Farber who is the vice president in charge of, finance, CFO and treasurer has gone ahead to bargain for a new borrowing arrangement with a consortium of banks led by Majestic to allow SC to borrow money based on the current value of 80%. BMC Inc. has estimated the company’s rating level to be at the second highest level. The company is known to carry out clean audit reports; SC has been audited by credible organizations like the BCSG LLP and public accountants for eleven years. It has been proved from these audits that financial statements are prepared in conformity with GAAP. 1.34% of the company’s shares are owned by the management team. This staff is highly trained in different areas of specialization. The company has been in business for 20 years; the company is trading on the Toronto Stock Exchange. Under the Homes Division Strengths are many; the division has an elaborate advertisement policy. First all the residences have been colored by beautiful billboards to attract the attention of potential customers. The firm has also gone ahead to launch a free senior’s magazine; a web has been devised to tap potential investors and regular promotional activities to sell the company are undertaken. The income statements have indicated that occupancy rates vary from 89%-98%. As a matter of priority every senior home has been equipped by a mechanical wheelchair for the seniors. The CEO’s experience is a plus to the company for she has vast experience for she has climbed through the ranks to become the CEO of the company. The products division has been impressive in its work. It is a very innovative division for it has produced blood pressure monitors with inbuilt stethoscopes to suit the needs of the seniors. The firm produces affordable walkers and mechanical wheelchairs that are of good quality. The division has been built using the latest technology and manufactures products with little known defects that are sold only to two distributors. In the service division SC has solicited the services of consultants who are required to undergo a two week training program at the corporate office. The geriatric consultants play a significant role in the firm for after assessing potential clients they refer them to SC. SC residences have spacious kitchens that are used to provide specialized, healthy and wholesome meals required by the seniors.
Weaknesses of SC
One of the major undoing of the company is its media scandals that have portrayed the image of the company negatively. These scandals have implicated Slimos who is part of the company’s management; he has been reported by a colleague for inflating travel expenses and has been linked to suspicious high credit card charges. In October 2008 Slimos was incriminated in the kickback allegations by a media journalist. Analysts have emphasized that the firm should focus on the senior’s homes. In addition the company is carrying too much cash and that it is making very little profit and revenue generated is inadequate. There are some flaws in the homes division. First, the firm does not charge for additional dressing costs. To make more profits the firm, firm in its operations has focused on employing a few number of nurses and care workers. The situation is further made worse for bonuses of the directors are based on how much profits they generate for the company. This has in turn led to workers being overworked and delivery of poor services in the long run. 80% of the workers are under the Federated Care Workers Union. The union does not allow for hiring of part time workers and this compromises service delivery. There have been negative media reports of some nurses administering illegal medication and patients being left in a dirty environment. In particular quality of service delivery at Glenbrook has been reported to be of poor quality. The president of the homes division has been criticized for giving too many unnecessary directives that are difficult to comply with. The performance of the company has lagged when compared to its competitors. Its competitors have also increased value of their stock but SC has not improved.
Although the products division has its strengths it has reported some of weaknesses in its operations. Although there have been innovations most products are not different from those of competitors. The division only targets seniors with financial resources it does not put into consideration the needs of those seniors who may be financially handicapped. Promotion targets medical equipment stores that buy the equipments in bulk; but little efforts have been done market the products to the end consumers.
In the service division there is a major flaw for, the division is reaping where it has not sown. The homes division foots all the costs of producing food but the service division gets all the profits. Emergency medical assistance is difficult for the home care assistants are not trained as medical practitioners or nurses. It has been reported that needs of the wealthy are given priority.
Opportunities
There are major opportunities for the firm; it is estimated that by the year 2026 the senior population will increase to 8.0 million from the current 4.3 million. There is therefore need to plan for the aging population. An increase in the disposable income will encourage the families of the seniors to spend more in the institutional care of the seniors. The number of seniors over the age of 80 is expected to multiply consequently there will be an increased need for the seniors in this age bracket to be given 24 hour health care and residential assistance. Institutional health care provides opportunities for most of the facilities taking care of the elderly are run by private institutions. Long term growth is expected for there is an opportunity for government funded institution.
There are a few opportunities in the homes division that the company can tap. There is a banking arrangement to assist the SC construct more seniors’ residences. SC is also expanding into the market of those seniors’ who neither speak French nor English. Seniors used to ethnic diet or do not speak the above languages can find life very easy at seniors residence. There are also prospects of SC entering into long term arrangement with the government to offer housing services adapted to the seniors’ specific needs.
In the products division there is an increased need for wheelchairs for reports are indicating an increase in the incidences of falls and accidents that lead to injuries; resulting to an increased demand of the wheelchairs. Blood pressure monitors developed at SC have created opportunities for doctors recommend that patients monitor their blood pressure at home leading to more people purchasing the gadget.
The service division on the other hand provides opportunities; currently the firm is providing supper to senior residents in the neighborhoods who live alone but there is a need for the firm to provide breakfast and lunch to the same residents.
Threats
SC is faced by some threats in its operations. In some instances the firm has been implicated in Lawsuits against it for compromising the health of the senior residents. Long term healthcare is under threat for it is partly funded by the government. In case there is shortage of funds the patients’ healthcare of the patients is going to be compromised. There has been negative publicity in the media especially in the homes division; it has been reported that the company has locked out a senior resident out in the cold. There has been spread of information about the nurse’s negligence where they administer illegal drugs. RCA has withdrawn the membership of SC. RCA fights of its member homes and their residents and it cooperates with other professional bodies to attend to issues affecting the seniors. Hence losing RCA membership is a major setback, not to mention that the company faces the threat of losing its provincial license that may put it out of business. Most workers of the union are under the Federated Care Workers Union. There is an imminent strike, for the union has demanded a wage increase for its members and 80% of SC workers are represented by the union. The operations of the seniors’ homes are governed by various provincial regulations that check the labor and food standards; if there is a breach in this standards then the license of the firm can be withdrawn.
The products division faces threats from the Asian market that is exporting directly into North America and the quality of their products is of low quality hence low prices. This has put pressure on the firm to reduce its prices. In addition there have been cases of counterfeit equipments labeled with the SC trademark.
SC has been known to provide quality senior health care but there are threats from dishonest competitors providing healthcare to the seniors and their families. This is a dangerous trend to SC and there is need for regulation. Without regulations the name of the industry may be flawed there spoiling its reputation.
Conclusion
In matters of health the Firm is faced with increased incidences of Alzheimer’s disease that has no cure statistics indicate that one out of every three people over the age of 85 suffers from this disease. Politics also play a central role in the operations of the SC. There are two political Acts that the firm has to comply with; the Nursing Home Act and a Home for the Aged Act. Neither of the two acts is insured which causes a major problem to the firm. To make sure that the firm complies with these laws the MOH carries out annual inspections. Other Acts that come into play are, Landlord and Tenants act, Rent and Control act and Residential Tenancies acts. It is requirement that all seniors home must abide the municipal regulations. In today’s society not so many people are ready to take care of the elderly, many families are taking seniors to senior care institutions, and it is also not many people who are comfortable working with the seniors. There is an increase in the number of people in need of institutional healthcare but there is a shortage of the three types of institutions; independent, long term care and assisted living. There is an increase in the number of people above the age of 85. The government needs to come into play and fund the private facilities in provision of long term healthcare due to an increased need of these institutions.