Assignment 2019.docx

1a. The unique selling position of FBH the non profit community service organization in Mexico city facilities has proven itself to be one of the best business models of its type within the social assistance field in Mexico. The foundation provides people a better life throughout the different stages of living by preparing to present alternative market strategies to the board of directors for the three senior citizen homes run by the foundation in Las magnolias, San Francisco and Teodoro Gildred. The business focused both internally and externally letting the staff, government organisations and volunteers know why the FBH facility is different. This unique selling position of the FBH serves as a central theme for marketing campaigns and motivate business decisions and sets this business apart turning it into a competitive advantage. The main objective of this foundation is to create, sustain and manage residences with welfare or non profit objects that meet a social need , contribute to the development and maintenance of the foundations essential works .A consulting team to research the services and marketing of each home as well as the external environment like the demographic shifts in the Mexican population which projected to drastic need for senior living facilities which have not yet decided to meet the need are the challenges to be faced to compile information into a convincing recommendation. FBH in order to create promote and operate establishment for the benefits of children , youth and adults for their education and well being follows guiding principles in everything they do a. Commitment and quality with a high level of service b. Tork team and effort in fulfilling goals c. Open , honest and constant communication Competitive advantage is about superior performance , operating at lower costs commanding a premium price or doing both. Thus on a whole to summarize the competitive advantage of the three FBH facilities by emphasizing the organization mission and operating values is “ to treat each person with dignity and encourage a holistic approach to develop the individual through personalized care and a loving touch”.

1 b. FBH served unique population in terms of both geographically and socio economic group. Almost half the residents across the three facilities RSF,RLF,RTG, were between the ages 80 to 89 with varying medical and

assistance needs. San Francisco targeted the mid upper economic sector of the city and surrounding areas. There were also residents who received subsidized or free room and board as part of the mission FBH. On average the residents in RSF lived for 6 years with an average resident age 83. The Las Magnolias was purchased by FBH in 1997 though the location is beautiful and landscaped to perfection the location was quite isolated from high socio economic sector neighbourhoods and while RSF was rather difficult to access because of heavy traffic and narrow streets. This situation negatively affected the appeal of the residence having the lowest utilization rate compared to the remaining facilities. The volunteers were less compared to other facilities though the services offered are all same in RLF and RSF. The common areas in RLF were larger with newer construction . The residents room were bigger with various floor plan options including dining room , master suites, a gymnasium, a peeking garage and guest room. No resident had ever left facility because of disappointment with service or facility quality. The RTG association serve the needs of the growing aged population in lower socio economic sector of the capital with the same dignity and quality offered to those from wealthier sectors. Since the residents at this facility were from lower socio economic sector of Mexican economy , there were no extra charges for services such as personal laundry . The Roman catholic nuns who live in the premises are the volunteers who are excellent mediators if issues arose .Each nun was in charge of one area of residence. The facility covered 40% of its costs from residents which was lower than the other two facilities. The remaining costs were covered by the foundation and surpluses from other facilities. Because of different socio economic situation RTG residents frequently arrived with no possessions beyond clothing and personal items while those in other facilities were in process of downsizing from larger homes to residency apartments. Irrespective of the social economic and marketing gaps all the residents in the three facilities of FBH are all treated with same dignity and quality offered to those from wealthier sectors.

2. Like any process or tool there are both advantages and disadvantages to a process. Unfortunately disadvantage are because of inappropriate application. ADVANTAGES:

a. Financial resources of FBH serving the needs of Mexican senior citizens are highly valuable as these help in investing into external opportunities that arise and helps combating external threats. b. Its local food products are valuable resource as these are highly differentiated . This makes the perceived value for these by customers high. c. Employees are valuable resource to the foundation as they are highly trained which leads to productive output for the organisation. The employees are loyal and the retention levels for the organisation are high. d. Its patents are a valuable resource as these allow the firm to sell its products without competitive interference ,this results in greater revenue for FBH. e. Distribution network is a valuable resource as it helps in reaching out more customers .this is because competitors would require a lot of investment and time to come up with better distribution network than FBH.

DISADVANTAGE : a. Cost structure is not a valuable resource because the methods of production lead to greater loss than that of competition which affects overall profits of the foundation. b. Research and development costs more than the benefits it provides in the form of innovation . therefore it’s a competitive disadvantage. The Patrons can use the VRIO analysis to analyse the internal strengths and capabilities of FBH serving the needs of Mexican senior citizens .since each of the resources are assessed in term of value it brings to the organization is explained ,and each resource is assessed whether it could be imitated by competition easily or not is explained and lastly in terms of whether the organization can use it to an advantage or not is also explained . Analysis done on the four dimensions value, rareness, imitability, and organization . If a resource is high on all of these then it brings long term competitive advantage.

3. The VRIO analysis of FBH serving the needs of Mexican senior citizens will look at each its internal resources one by one to assess whether these provide

sustained competitive advantage. Analysis also mentions at each stage whether these resources could be improved to provide a greater competitive advantage. Lastly ,the resources analysed are summarised as to whether they offer sustained competitive advantage , temporary competitive advantage ,competitive parity or competitive disadvantage. VALUABLE: a. The local food products are a valuable resource as these are highly differentiated. This makes the perceived value for these by customers high. These are also valued more than the competition by customers due to differentiation in these products. b. Employees are valuable resource which leads to productive output of organisation. They are loyal and retention levels for organisation are high. All this translates into greater value for the end consumers of FBH products. c. Patents are valuable as they allow the firm to sell its products without competitive interference. This results in greater revenue for FBH. These patents also provide FBH with licensing revenue when it licenses these patents out to other manufacturers. d. Distribution network helps in reaching out more and more customers. This ensures greater revenues for FBH. It also ensures that promotion activities translate sales as the products are easily available. e. Cost structure is not a valuable resource because it leads to greater costs than that of competition, which affects overall profits. Therefore cost structure is a disadvantage. f. Research and development costs more than the benefits it provides in the form of innovation. Therefore this also an disadvantage. RARE: a. The financial resources of FBH are found to be rare according to VRIO ANALYSIS of FBH. Strong financial resources are possessed by only few companies. b. Local food products are found to be not rare as identified by FBH. These are easily provided making resulting in competitive parity by FBH.as this resource is valuable FBH can still use this. c. Employees well trained is a rare case ,which is not in case of other firms. d. Patents are not easily available and are not possessed by competitors e. Distribution possessed by very few firms in the industry

IMITABLE: a. Financial resources are costly to imitate as identified by FBH. These resources have been acquired by company through prolonged profits over the years. b. The local food products are not that costly to imitate. This can acquired by competitors as well if they invest a significant amount. c. The employees are not costly to imitate as identified because other firms can also train their employees to improve their skills. Can also hire them by offering better compensation packages, work environment etc. this makes employees temporary advantage. d. Patents are difficult to imitate because it is not legally allowed to imitate a patented product. e. Distribution network is also very costly to imitate ass competitors have ti invest significant amount if they are to imitate a similar distribution system ORGANISATION: a. Financial resources of FBH are organised to capture value as per the analysis. These resources are used to invest in right places therefore this resources prove to be competitive advantage. b. The patents of FBH are not well organised as identified by FBH which means the organisation is not using the patents to full potential. An unused competitive advantage. c. The distribution network of FBH is organised ,FBH uses this network to reach out to its customers by ensuring products are available at all outlets. From the VRIO analysis it is identified that cost structure and research and development is a competitive disadvantage, patents unused competitive advantage employees are temporary advantage, financial and distribution are sustained competitive advantage.

4a. Mexico’s population makes it highest populated Spanish speaking country. The country’s population has seen a steady growth in the 20th century . In past half decade the population has stalled, registering less than a 1% annual population growth rate. The global population of those aged 60 and more are estimated about 770 million in 2010 and the number estimated to reach billion by 2040. With the trends projected through coming decades Mexico would find

itself moving into the third stage of demographic transition marked by rising life expectancy , falling birth rates, higher urbanization, increased participation of women in higher education and improved access to contraception. Thus the Mexican aging population with improving life expectancy together with the trend toward smaller households and more dual income families, left fewer young people to tend to the elderly. Challenges for family members dealing with the health issues that arise with aging pointed to a need for more skilled nursing care throughout Mexico. However the cultural shift in attitudes toward caring for the aged was not moving as fast as the demographic changes. A survey conducted in 2012 showed 72% of Mexicans who did not save for old age or retirement, when asked the reason 62% replied god will provide the resources for my retirement and remaining expected their children should supplement when they are retired.

4b. The demographic trends shaping the US : a. Millennials are projected to outnumber baby boomers next year. Millennials are already the largest generation in U.S. labor force , making up 35% of the total. Although boomers formed majority of labor force they made up just 25%in 2017, as many older members of this generation reached retirement age. In the political arena the number of millennials who are eligible to vote in the U.S. is approaching that of boomers. b. One in five Americans live in a multigenerational household. A recorded number of Americans live in multigenerational households , part of a broader trend toward more shred living. c. Half of U.S. adults are married today. The institution of marriage continues to change. d. After decades of decline motherhood and family size are ticking up in the U.S.it has increased from 80 % in 2000 to 86%in 2016 e. Sub Saharan African countries trailed only Syria in growth of emigrant populations worldwide,2010-2017. There are more then 250 million migrants worldwide . f. New refugee arrivals are down in the U.S. and their religious composition has changed. The number of refugees declined after 2016. As global refugee the population got increased .

g. International arrivals to U.S. have risen among some groups. New foreign student enrolment at U.S. colleges has been doubled between 2008 to 2016.there also increase in immigrants to the U.S. naturalization rates are up among the immigrant groups.