Exam Application Flashcards
Create a PESTEL analysis for EZH.
POLITICAL:
(1) General election year creates uncertainty in the political landscape
(2) Government covenant expires 2023 - stay or leave Northern Ireland?
ECONOMIC:
(1) high interest rates affecting EZH as it underwent a leveraged buy-out under Eddy (implying dept)
(2) Fiscal policies uncertainty (could affect taxation and therefore profitability)
SOCIAL-CULTURAL:
(1) AI is a new and emerging technology, which the general public are still building trust in (data privacy, ethical issues, accuracy in application of healthcare). EZH are focusing on healthcare issues common in the elderly, who are generally more cautious and less trusting of technology.
(2) increasing aging population where people are living for longer, requiring healthcare for longer.
TECHNOLOGICAL:
(1) People skill divergence. EZH requires technologically skilled individuals to be working on their products.
(2) Diffusion. AI likely to spread quickly to every household (as did mobile phones)
ENVIRONMENT:
(1) Public conscience - supply and demand implications that could arise from EZH strategic planning. Could lead to financial and repetitional damage (BP Deepwater Horizon oil spill)
(2) Sustainability. AI healthcare solutions can contribute to environmental sustainability by optimising resource use, reducing waste, and lowering the carbon footprint of healthcare operations.
LEGAL:
(1) AI industry highly regulated, but likely to be laws brought in for its use specifically in healthcare (changing legal environment)
(2) Data protection regulations that EZH must be mindful of
Create a SWOT analysis for EZH. (3 for each)
STRENGTHS:
(1) Valuable intellectual property. EZH has seen promising field results and is using open-source coding, which is likely to be a USP
(2) Government support. With grants tied to local infrastructure and skills development, EZH has government backing, which adds stability and credibility.
(3) Innovative health AI solutions. EZH focuses on cutting-edge AI technology for diagnosing and predicting health issues, such as heart disease, cancers, Parkinson’s, and dementia, giving them a strong product base in the healthcare sector.
WEAKNESSES:
(1) Culture clash. The aggressive growth strategy and cultural shift under Eddy led to staff dissatisfaction and departures.
(2) Financial position. In late 2023 cash reserves of the business were declining and fallen valuation of £4 billion by Aril 2024
(3) Dependence on a single leader. The company’s initial success was heavily tied to Niamh’s vision and leadership, highlighting a lack of diversified leadership strategy. (Risk of same thing happening to Davina)
OPPORTUNITIES:
(1) Market opportunity valued at £80 billion. Other areas of healthcare to help achieve social impact could be explored – e.g., diabetes and fertility
(2) General election – opportunities to work with NHS and funding available from government. Covenants expire in 2030, but possibilities to renew?
(3) Rebuilding Partnerships. Under new CEO Davina Rushie, there is an opportunity to rebuild relationships with universities and health partners, aligning with the original mission.
THREATS:
(1) Diminishing supply of younger people in the workforce causing people skill divergence issues
(2) Reputation risks, which could impact investor and partner confidence (e.g., Volkswagen emission scandal)
(3) Competition. The AI healthcare sector is highly competitive, with many companies vying for market share, which can impact EZH’s growth and profitability.
Apply Mintberg’s 5Ps to EZH.
Plan = EZH returning to a plan to achieve social impact.
Pattern = EZH’s testing process of the AI before market launch is a pattern. Part of building trust in a product is the familiarity and the known.
Position = EZH is based in Belfast, which is considered the ‘hub’ of AI (right time and place)
Perspective = EZH could look to other areas of healthcare, like fertility treatment and diabetes to reach a wider market and cater for other healthcare perspectives.
Ploy = EZH could paten any new products it comes out with to prevent the competition from coping success.
Apply 5 of Kanter’s 10 reasons for resistance to EZH.
(1) Loss of control = The staff brought in by Niamh will be feeling helpless, especially since their staff trust holding has reduced dramatically under Eddy’s reign. This is particularly demotivating and will have contributed to the staff threatening to leave.
(2) Excess uncertainty = Eddy liked to keep his plans and cards close to his chest, which created excess uncertainty and left staff in the dark.
(3) Surprise, surprise! = As Eddy kept most things private, the element of surprise would have come as a shock and caused many to think they do not have time to think rationally. (Hence people leaving)
(4) Everything seems different = Many of the staff brought in under Niamh were aligned to her vision of achieving social impact. Eddy taking over to deliver a profit focused aggressive growth strategy is against the values of many of the staff.
(5) Sometimes the threat is real = Eddy was pushing challenging targets and was brutally unforgiving if they weren’t met. This implies that staff may have been fired, and hence many left to find more sympathetic working conditions.
Apply Kotter’s 8 stages of change to EZH.
(1) Establish a sense of urgency = Throughout all the chaos and change of leaderships, EZH needs to get back on track fast to avoid any further disruptions.
(2) From a leading team = Davinna should ensure those in senior positions are aligned to the vision of achieving social impact so there is a tone from the top commitment, which will help better integrate change.
(3) Create a vision = Davina will need to make clear that the vision is to achieve social impact.
(4) Communicate the vision = Davina should ensure there is education of and participation from staff to communicate the vision – make sure all in the organisation are involved.
The vision should also be communicated externally to other stakeholders.
(5) Empower and involve others = Davina should ensure that others have been involved in the process to build an underlying commitment.
(6) Create short-term wins = Identify individual wins that give confidence. This could include securing the strategic partners that have begun to look elsewhere.
(7) Implement and consolidate = Develop a forward plan.
Through alteration of views and changing systems so there is better quality control and testing developing to ensure AI technology is suitable for helping the healthcare industry rather than a profit generator.
(8) Institutionalise change = Build the change process into the operating model.
Apply the 5 risk categories to EZH. (2 each)
What are the mitigation actions available?
FINANCIAL
(1) EZH is a geared company due to the leveraged buy-out that Eddy undertook (introduces debt into the funding structure)
(2) EZH facing financial difficulties and long-term viability risk
Mitigation = Strategic risk mitigation comes through sound financial planning, ensuring long-term funding is matched appropriately to long-term assets (Carillion failed to do this)
OPERATIONAL
(1) Strategic partners looking elsewhere (losing access to resources, knowledge, capabilities and competitive edge)
(2) Staff unhappy and many under Niamh left. Risk of not being able to fulfil the supply chain.
Mitigation = Implement a CRM system and ensure sensible, calculated terms with suppliers. Davina to engage with staff through focus groups, feedback surveys and 1-2-1. Davina was staff herself and has support of staff.
COMPETITION
(1) Competitors taking market share as EZH valuation has dropped
(2) Loss of trust in AI for customer preference over traditional healthcare methods
Mitigation = Greater advertising and marketing campaigns. Ensure products developed and tested properly to reduce risk
ENVIRONMENT
(1) General election leading to fiscal policy uncertainties
(2) Potential increase in legislation
Mitigation = Stay alert and monitor the situation. Bring in external consultants to unpack legal changes
PEOPLE
(1) Eddy outspoken and can cause reputational damage (e.g., CEO of Ratner group)
(2) Staff unhappy and have had public disagreements can have a negative impact on reputation
Mitigation = Davina to implement firm policy on communication and develop a culture of joint ownership. Also, engage with Eddy and other staff to help ease the situation.
