Long-Term Strategies of Brookdale Senior Living, Inc – Case Study Example
The paper "Long-Term Strategies of Brookdale Senior Living, Inc." is a good example of a case study on business. Brookdale has adopted various long term strategies to achieve in areas of its operations, marketing and ensuring financial stability. With the primary growth objectives of growing its revenue, Brookdale has adopted organic growth in its core business that includes realizing economies of scale and expense control (Brookdale Senior Living, Inc., 8). The management of the organization has the plan to increase the revenues or financial position of the organization so that to grow on the existing operations. Thus, the company entails increasing the service fees received monthly and occupancy growth combination (Brookdale Senior Living, Inc., 8). All these efforts will allow the company to organically realize the growth in the core business it carries out of providing living services to senior residents. At the same time, as the occupancy and rates continue to grow, Brookdale will further focus on this growth. This is possible if the company improves on its current operations, marketing execution, and sales. Capital allocation is another long strategy that Brookdale has adopted in a move that will see operations and finance improve. The organization will deploy capital so that the value of existing assets is increased and allow the adding of the new business lines and communities (Brookdale Senior Living, Inc., 9). The business has adopted the program max initiative through which they will redevelop, expand, and reposition some communities owned especially in areas that are economically robust (Lynn, David, and Tim, 40). The affected communities will automatically benefit from the capital additions as well as expansions. The market will expand since the increased needs of the customers will be well- addressed. Brookdale has adopted market growth strategies that aim at increasing the level of the market that the company wants to achieve. This is indicated by the recent steps the organization has taken to realize centralization and to modernize the function and programs of marketing. The engine behind adopting these changed marketing strategies is to allow the company to meets the changing manner that potential consumers, friends, and families make their buying decision (Brookdale Senior Living, Inc., 9). In a further move to achieve a more extensive market, the company created an approach that depicts multi-layered marketing. This approach makes efficient use of the internet and utilizes the mechanisms to give a response such as centralized call centers. Likewise, in a similar move to achieve marketing, Brookdale launched its branding initiative in 2013 upon which the current marketing approach is centered. Upgrading and renovation of communities by the continuous investment of huge capitals in the portfolio will drive towards greater occupancy and higher rates. This will positively ensure market share expansion hence financial growth. Brookdale Senior Living has been focusing on innovating product offerings such as Brookdale Ancillary Services programs in what can be seen as a move to increase revenue. Other than meeting the increasing needs and expectations of consumers, the step to the innovation of product offerings will allow the company grows its revenue level. For instance, the organization has a plan of continuing to roll out hospice services in the market (Brookdale Senior Living, Inc., 9). The hospice services number of markets increased to eleven in 2013, and the company expects to add more markets in the coming years (Brookdale Senior Living, Inc., 9). The organization has also considered the seniors who would like to stay at home and therefore moved to leverage services currently offered to residents in the buildings (Eichholtz, Piet, Nils, and Bartosch, 211). The ancillary services program provided by the organization allows it to provide health, therapy, and hospice among other such services in addition to wellness and education. As the company continues, it looks into expanding the services in the homes of the seniors other than the available communities. The expansion will increase cash intake at the same time improve the quality of services offered that will allow Brookdale Senior Living to compete successfully with others (Lynn, David, and Tim, 40). Acquisitions, an active strategy that Brookdale has built on and continue to embrace as it aims at operations, marketing, and financial expansion. The company has been taking advantage of the senior living sector that is currently fragmented to carry out acquisitions which can be described as selective and accretive (Orr, 7). For instance, two transactions were closed in 2007 as the acquisition strategy the business uses continues (Brookdale Senior Living, Inc., 9). More importantly, while acquiring, the company focuses on business lines it is sure of achieving improved service delivery, high cash flow, and occupancy rates (Brookdale Senior Living, Inc., 9). This is in addition to acquiring a free interest in the communities where the company manages or leases in their current business. Thus, the use of acquisition strategy by Brookdale Senior Living is intended to achieve the general expansion of the business. Existing communities’ market expansion is another long term strategy that is effective for the company to use to realize growth in operation, marketing, and finance. As at the year 2013, Brookdale Senior living had already identified at least 60 communities that had stabilized the occupancies (Brookdale Senior Living, Inc., 9). These very communities had excess demand in some markets. Thus, the company’s found need to have the existing communities expand to benefit from the capacity that has been increasing since then. The expansion has involved the addition of service levels for the residents. So far, following the need to achieve expansion, several projects have been rolled, and the company has been increasing its operations, market, and financial status. Examples of these projects include; branding initiative that was launched in 2013 to redefine marketing approach, the program max initiative to redevelop, expand, and reposition some communities, and rolling out hospice services in the market (Brookdale Senior Living, Inc., 9).