Report on the Organization’s SWOT Charmayne Henry University of Phoenix MHA/598 Dianna Lobst 11/10/2022 2 Report on the Organization’s SWOT There are numerous opportunities that the organization encounters; these opportunities include; getting assistance on its projects, having working groups, the ability to create a team that can work on ideas, and having employees who are experts in different fields, which helps in promoting and retaining talent in the organization. Talent enables an employee to be satisfied with the job they have to do; thus, they do not discriminate against jobs (Irabor & Okolie, 2019). These opportunities enhance the possibility for growth whereby inflation can lead to maximization of demand for the organization’s products when the economic condition is improving and more investors start to invest, creating new jobs and increasing salaries. Inflation enables an organization to have low price margins since it leads to rises in prices; thus, the organization tends to increase its profit margin through price increases rather than cost cuts. Therefore, due to opportunities in the organization, competitors are attracted by employees because of their labor. However, various threats face the organization; these threats include; supply chain problems, which are affected by a shortage of material (Tjahjono et al., 2017), Increase in cost of transportation and operation costs, shifts in market prerequisite, organization recession and shortage of recruits which affects the business not to be fully productive hence reducing outputs and leading to low profits. Organizational recession involves a decline in economic activity, which occur after every two years. At this moment, unemployment tends to increase, thus affecting the purchasing power of an economy by reducing it, and hence there is competition for jobs. Also, clients do not spend money which prompts to lowering in sales. Therefore, such threats enable other organizations to have and utilize their competitive advantage over this organization. 3 Major Economic Trends Major trends in the market are unemployment, inflation, and interest rates. Unemployment enables people to spend and consume less, and people are accrued debts. This economic trend affects the organization’s market since no one is buying its products; instead, they are borrowing, thus making its business not thrive and get established. Secondly, inflation, which is an uneven increase in prices, inevitably prompts consumers to reduce their purchasing power. Therefore, my products tend to get spoiled in my store or wasted, leading to losses in the organization (Martono, 2019). Inflation rates affect both the organization and consumers; when interest rates increase, every sector tends to cut back on spending, and therefore it causes profits to fall and stock prices to drop; on the other hand, when interest rates reduce, both business and consumers tend to spend more which leads to increase of profits and stock prices. Lastly, technology enables the organization to save more time during production and when delivering products to consumers. Technology enhances a business to be fully productive, thus increasing profits. Therefore, this major economic trend has enabled the organization to thrive and get established. Evaluation of economic trends The organization’s economic trends tend to benefit and harm its strategic goals. When it comes to unemployment, it negatively affects it since many people are unable to buy its products, and therefore, the organization’s goals are affected; whereby one of the goals is to increase profits, but in the market, people are unemployed (Quoquab et al., 2017). Still, it can be beneficial whereby operation costs for the organization will reduce, and hence some money is 4 saved. Secondly, inflation also benefits the organization’s goals whereby when the prices hike, the business tends to get more profits which afterward leads to abnormal profits. Still, inflation is harmful since it reduces the purchasing power of consumers and hence products tend to get wasted in the store, prompting the business to undergo losses. Technology affects the business in a beneficial way, whereby the organization’s goals are formed based on the technology the organization owns, leading to increased products. On the other hand, technology can cause trouble in the organization in case of accidents in the line of duty. Lastly, interest rates affect the business by reducing its operation once the interest rates are high. On the other hand, once the interest rates are low, the organization tends to increase its operation during production. Whether the economy in the market presents opportunities or threats in my organization The economy in the market presents both opportunities and threats for the organization; these opportunities include room for expansion in the organization and having considerable experts who are trained in different fields, whereas the threats include; supply chain problems, shortage of recruits, and shortage of raw materials. All these opportunities and threats are affected by the economy in the market. Unemployment would determine whether the organization would grow or not because once people are unemployed, they are unable to purchase its products, and therefore, the organization is unable to grow and expand. Still, unemployment would lead to supply chain problems whereby the products are no longer supplied at a high rate since people have no money (Hobbs, 2020). Secondly, technology prompts the organization opportunities whereby the organization is able to identify expertise in different fields, creating a competitive advantage. Still, technology leads to threats like the shortage of recruits, whereby if employees are not conversant with the technology, they end up being fired, destroying the organization’s reputation. Thirdly, inflation prompts opportunities and 5 threats; for example, the organization can identify experts who have majored in finance due to inflation to determine and make better financial decisions. Still, inflation leads to specific threats like shortage of raw materials whereby the organization is unable or reduces the raw materials since they are costly. Lastly, interest rates also determine the opportunities and threats in the organization, whereby when interest rates are high, the organization tends to cut back hence preventing the growth of the business. At the same time, on the other hand, when interest rates are low, the supply chain also tends to be short and hence hindering the business from thriving. Whether my organization can influence the economics in my area The economy in my area can be influenced by the organization, which can be done through observance of the opportunities and threats in the organization. Having many experts in different fields in the organization could lead to high production, which would affect the economy, whereby more technology will have to be used. Still, different expertise will prevent threats such as shortage of supply chain and shortage of raw materials since for there to be more production, there should be more raw materials. Secondly, when the organization expands or grows, it will prompt the creation of jobs which would cause many people to be employed, affecting the economy. These opportunities will enable people to have salary and wages, which will prompt them to have high purchasing power, thus increasing the supply chain, and its products will be in demand. Lastly, a shortage of recruits in the organization would affect the economy, whereby technology will not be used fully; hence it will lead to low production in the organization, and therefore few products will be supplied to consumers (Waples & Brachle, 2020). Therefore, such opportunities and threats can affect the economy to the extent of leading to inflation since there is a supply chain shortage, whereby due to low production, prices of products tend to increase since they are in demand, causing inflation. 6 References Hobbs, J. E. (2020). Food supply chains during the COVID‐19 pandemic. Canadian Journal of Agricultural Economics/Revue canadienne d’agroeconomie, 68(2), 171-176. Irabor, I. E., & Okolie, U. C. (2019). A review of employees’ job satisfaction and its affect on their retention. Annals of Spiru Haret University. Economic Series, 19(2), 93-114. Martono, B. (2019). Dinar and Dirham As One Alternative Inflation Control Solution in Indonesia. Quoquab, F., Pahlevan, S., Mohammad, J., & Thurasamy, R. (2017). Factors affecting consumers’ intention to purchase counterfeit product: empirical study in the Malaysian market. Asia Pacific Journal of Marketing and Logistics. Tjahjono, B., Esplugues, C., Ares, E., & Pelaez, G. (2017). What does industry 4.0 mean to supply chain?. Procedia manufacturing, 13, 1175-1182. Waples, C. J., & Brachle, B. J. (2020). Recruiting millennials: Exploring the impact of CSR involvement and pay signaling on organizational attractiveness. Corporate Social Responsibility and Environmental Management, 27(2), 870-880. 1 Health Care Accounting Charmayne Henry University of Phoenix Dianna Lobst MHA/598 11/14/2022 2 The Joint Chiropractic Company My choice of organization is the Joint Corp, a joint Chiropractic franchisor clinic operating on cash-based and non-insurance models. The company manages, owns, develops, and supports chiropractic clinics via direct franchising, management arrangements, regional developers, and direct ownership. Joint Chiropractic has its headquarters in Scottsdale, Arizona. It aims to revolutionize access to chiropractic care by making ongoing treatment approachable, accessible, and affordable. Statistics show that 80% of the American population has suffered a back pain problem at some point in life (Kiwalkar et al., 2022). Highly trained chiropractic doctors are responsible for developing individualized treatment approaches to relieve patients suffering and deliver consistent preventive services. Joint corp has over seven hundred clinics operating across thirty-seven states. Additionally, it is still seeking franchise owners and new investors since it’s a growing franchise. Joint Corp recently published its financial statements for the first financial year quarter of 2022. Its revenue grew by 28% compared to the previous quarter; system-wide comp and system-wide sales grew by 15% and 27%, respectively. The Joint also experienced an expansion, opening thirty-one new clinics, including twenty-seven franchised, which is the best expansion rate among all recorded quarters. It also made the history of a hundred portfolio clinics achieving a milestone and bringing the total to 736. The results reported for the quarter ending 31st march 2022 are as follows. It recorded a $206,000 net loss compared to the previous $2.3 million net income, and its revenue grew by 28% to $22.4 million, reporting an EBITDA adjustment of $1.8 million contrary to the previous $3.5 million. The Joint also reported a sales increase of systemwide comp by 15% and system-wide sales to $98.8 million, a 27% increase. 3 The company’s fiscal quarter financial report shows the company driving positive growth with the milestone of opening a hundred corporate clinics, which was recorded as the highest ever in any fiscal quarter in the company’s history. Despite the company experiencing increased turnover and labor costs affecting the general system’s baseline, the corporate clinic revenue growth pace was also influenced by the increasing capacity and momentum of corporate portfolio expansion. The joint corp manager commented that the company is committed to delivering a long-term development strategy, including operational support to transform the corporate portfolio to its solid and positive trajectory and implementing methods of addressing the current market (Schwartz et al., 2019). The manager’s comments about the company’s financial statements indicate that despite the increased revenues, the joint still suffers some setbacks in incurring expenses. Increased total selling, administrative and general expenses from $13,746,205 to $20,295,287 reflect how much the expenses hinder the company from making more significant earnings. The management updated adjusted EBITDA and revenue, reflecting the impact of increased expenses and the macroeconomic environment. The company targets an increased revenue between $98 and $102 million compared to the previous year’s $80.9 million. Adjusted EBITDA is expected to be between $12 ann$14.0 million, contrary to the last periods of $12.6 million. The recent financial statements point out that the company is on the right track toward achieving its budget goals; however, there is a need to cut expenses and other risks associated with earnings. The company has to find ways to reduce or contain the incurred expenses. However, they must consider delivering quality services in their expense reduction approaches. Several costcutting strategies in the healthcare industry can be implemented to reduce costs without affecting the client’s outcome and satisfaction(Lv et al., 2020). The organization can incorporate a bundle 4 and standardized contract in its health cost reduction approach. Companies focused on reduced expenses see standardization as a huge opportunity due to the rapid pace of market consolidation. The Joint should outsource activities that are not the core objectives to other organizations specialized in such operations, focusing only on the major operations, thus reducing unnecessary costs. Having too many protocols and vendors wastes a significant amount of money, undermining and negatively impacting client satisfaction. Single-partner service standardization results to lower general costs and customer satisfaction. (Wasserman et al., 2019)The organization should find partners who align operationally and culturally for easier administration and establish a strong governance model. Another approach is taking a closer look at the organization’s staff. However, it doe not refer to layoffs but instead should focus on aspects of associate retention, training, recognition programs, and minimizing overtime in a cost-cutting approach. Data shows that 40% of workers with no appropriate job development and training never last past a year in that job (Lv et al., 2020). Therefore, appropriate development and training of employees act like incentives for associates to stay, thus contributing to better ling term reduced costs. The organization can choose to focus on retaining associates and decreasing turnover. Resource use in hiring new workers is time-consuming and expensive. Ensuring proper and enough breaks between shifts will increase employee satisfaction due to the positive work environment, therefore, more quality services. Every company has room for improvement, and the healthcare industry is not different since these companies also need improvement in health revenue cycle management. Cutting costs is one of them; however, there is still the need to implement strategies to improve the company’s earnings. Such reimbursement strategies include leveraging data, automating prior authorizations, and collecting payments through up-front and back-end functions. The back-end 5 revenue strategy involves final patient fiscal responsibility, medical billing, denials, and claims management. The front-end earnings cycle is patient based, and the front-end employees collect information from patients, register new patients, and confirm insurance coverage and its eligibility(Gomez et al., 2019). When combined, the back-end and front-end revenue cycle employees perform specific tasks, bringing complete healthcare earnings. The organization can optimize its profit cycle by separating the back-end and front-end responsibilities. It will ensure a profitable journey through the earnings cycle hence more reimbursement. Joint corp should use data to benchmark their earnings cycle performance since no one can manage what they cannot measure. There is a need for healthcare institutions to implement a data-driven earnings cycle since data points out the financial health of the company, and with an efficient performing staff, the accuracy of the data and its implementation results in accurate reimbursement (Lv et al., 2020). The organization should use its clinical and financial data to track its key performance indicators(KPIs) (Gomez et al., 2019). These keys are advantageous since it lets the company quickly notice the trendline if it is progressing in the right direction. In case of a wrong-directed trendline, methods and policies can be implemented to ensure its progress. There are five financial healthcare KPIs: cash collection as a net percentage of patient services earnings, final denial writeoff, accounts receivables net days, claim denial rate, and collecting cost. The data insights and KPI data should be presented to nonclinical staff and health providers to encourage them to improve efficiency ad spending. A change in the organization’s health position requires a well-crafted story based on the available data to motivate the workforce and communicate the organization’s objectives and realistic targets. Joint corp should practice upfront collecting of patient financial responsibility. Underpaid and late patient financial obligations slow revenues. (Gomez et al., 2019) 6 Organizations face the risk of never getting a full payment and also incur extra costs when the staff use organizational resources to contact and collect the owed payments. The organization should offer patients with financial estimates pre and post-service. Lastly is to automate prior eligibility and authorization. Increased coverage eligibility and prior authorization requirements by payers help cut unnecessary costs. An example is increased costs due to an organization using manual processes to check eligibility and prior authorizations. Switching to electronic options saves unnecessary costs hence increased reimbursement. Any company’s brand is usually developed through advertisement and various promotion activities to the general public, especially to the target audience. However, the organization can use its financial performance as a marketing tool. Joint corp are always on the move for expansion, looking for new franchise owners and investors; therefore, using financial statements is a significant move toward its goal. Investors and franchisers will always be attracted to an organization that performs well; thus, financial statements indicating positive revenues will ultimately promote the organization (Schwartz et al., 2019). Once the organization continues expanding through new franchises and new investors managing to start so many clinics across the country, its image and brand will automatically shoot toward greatness. 7 References Gomez, L. E., & Bernet, P. (2019). Diversity improves performance and outcomes. Journal of the National Medical Association, 111(4), 383-392. Kiwalkar, S., Bhalerao, S., Nguyen, K. P., Quinn, R., Perham, D., Malatestinic, W., … & Deodhar, A. (2022). POS0984 PREVALENCE OF axSpA IN PATIENTS TREATED FOR CHRONIC BACK PAIN IN CHIROPRACTIC CLINICS: THE OREGON CHIROPRACTIC AXIAL SPONDYLOARTHRITIS STUDY (ORCAS)–AN INTERIM ANALYSIS. Lv, Z., & Qiao, L. (2020). Analysis of healthcare big data. Future Generation Computer Systems, 109, 103-110. Schwartz, L. M., & Woloshin, S. (2019). Medical marketing in the United States, 19972016. Jama, 321(1), 80-96. Wasserman, J., Palmer, R. C., Gomez, M. M., Berzon, R., Ibrahim, S. A., & Ayanian, J. Z. (2019). Advancing health services research to eliminate health care disparities. American journal of public health, 109(S1), S64-S69.