Some key areas of theory that you may wish to investigate (although you may decide not to use them) include:

1. Horizontaland/orverticalintegration
   b. Relatedand/orunrelateddiversification
2. Describe how the organization will implement the strategic plan. Focus specifically on:
3. a) the fit between any core competencies and skills that the organization has and that they can leverage to further effect
4. b) or indicate which ones are currently missing and outline a plan for acquiring or developing (the buy/make decision) those core competencies.

5.Explain how the organization will measure and evaluate the success (or otherwise) of your recommendations. You must use analytical tools/frameworks that have been published in recognised scholarly publications.

                                                                  SAMPLE SOLUTION

Following the high pace at which Australian population turn 65 years and over, there has been an increased growth in age care industry including the Government’s Living Longer Living Better foundation as a result of the rising demand for the aged care service. According to Nay Garratt & Fetherstonhaugh (2013), the progressively rising demand for services has placed pressure on many care providers making it difficult to sustain quality services. The researchers further argue that the increased demand has also brought about longer waiting lists for elderly clients considered as having low care needs. This indicates the need for stakeholders of Baptcare (the residential and community care facility for older people) to engage in a critical decision in improving the design of the establishment and strategize for future demands. Some quality practices that Baptcare may embrace to remain competent in the industry and be a leader in care provision are discussed below

Strategic outsourcing and insourcing

Strategic sourcing refers to a collaborative and structured procedure that an organization adopts to facilitate critical analysis of its spending and using such information in making decisions about the most efficient ways of acquiring goods and services. Through outsourcing Baptcare will be able to have some of its job functions such as case management done outside the organization as opposed to the in-house department this will not only bring quality goods and services closer the people but also guarantee quality operations. According to McIvor (2005), many organizations are forced to outsource so as to improve certain aspects of the business.  Additionally, the company will realize much progress through insourcing. That is, by delegating some operational services to experts within the company. This will help to reduce high costs often incurred when hiring expertise from outside.