Individual Assignment 2

In: Business and Management

Submitted By kaiba
Words 653
Pages 3
BKAM3073 ES

INDIVIDUAL ASSIGNMENT 2

CASE 1 NAH is a privately owned unlisted company which runs 20 residential care homes for the elderly. A residential care home for the elderly is a building where a number of older people live and receive care (that is their physical needs are provided for), normally on a full-time basis. The elderly residents may pay the care home fees themsleves or they may be paid by their relatives or by the local government authority. The elderly residents of NAH’s care homes are all capable of making decisions for themsleves. All of NAH’s care homes are located in and around two cities both located in the south of country X. NAH employs around 400 staff in the care homes, some of whom work part-time and a small team of highly experienced administrators. NAH’s care homes all have modern facilities and their staff are highly trained and dedicated. NAH has always been a profitable business, even though its care homes normally have a small amount of spare capacity. NAH has approximately 25% market share in the south of country X. The remainder of the market is shared by a small number of local government funded and operated care homes and some other small private businesses. Due to the rising costs of operating care homes as a result of increased regulation and the general economic environment, a number of small privately owned care homes in the region have recently closed. The owners of some other privately owned care homes are considering closing or selling them. NAH is also aware that this trend is occurring nationally across country X.

A national shift in the demographics of the population in the last 30 years has resulted in a significant rise in the proportion of elderly members of society. Added to this, the increased social movement of families has resulted in an increasing demand for care home places for the elderly. NAH…...

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