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Performance management at vitality health enterprises, inc. description.

Vitality Health Enterprises, a medium-sized firm that manufactures health and personal care products, has experienced six straight quarters of strong revenue growth. James Hoffman, the new Senior Vice President of Human Resources, fears that the chain of success is shifting the company's focus away from effective performance management. Recently, Vitality has been faced with increasing turnover among the company's talented research scientists that may be due to a performance management system that leaves top performing employees slighted by the practice of uniform ratings. In an effort to retain top employees, the company institutes a forced distribution model of performance rankings, moving from an absolute ranking system to a relative one. Hoffman and his performance management evaluation team must assess the practical and strategic effectiveness of the new system and present their findings and recommendations to the Board.

Case Description Performance Management at Vitality Health Enterprises, Inc.

Strategic managment tools used in case study analysis of performance management at vitality health enterprises, inc., step 1. problem identification in performance management at vitality health enterprises, inc. case study, step 2. external environment analysis - pestel / pest / step analysis of performance management at vitality health enterprises, inc. case study, step 3. industry specific / porter five forces analysis of performance management at vitality health enterprises, inc. case study, step 4. evaluating alternatives / swot analysis of performance management at vitality health enterprises, inc. case study, step 5. porter value chain analysis / vrio / vrin analysis performance management at vitality health enterprises, inc. case study, step 6. recommendations performance management at vitality health enterprises, inc. case study, step 7. basis of recommendations for performance management at vitality health enterprises, inc. case study, quality & on time delivery.

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Case Analysis of Performance Management at Vitality Health Enterprises, Inc.

Performance Management at Vitality Health Enterprises, Inc. is a Harvard Business (HBR) Case Study on Leadership & Managing People , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Performance Management at Vitality Health Enterprises, Inc. is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Performance Management at Vitality Health Enterprises, Inc. case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Performance Management at Vitality Health Enterprises, Inc. will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Performance Management at Vitality Health Enterprises, Inc. case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Leadership & Managing People, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Performance Management at Vitality Health Enterprises, Inc., is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Performance Management at Vitality Health Enterprises, Inc. case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Leadership & Managing People Solutions

In the Texas Business School, Performance Management at Vitality Health Enterprises, Inc. case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis. We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Performance Management at Vitality Health Enterprises, Inc.

Step 1 – Problem Identification of Performance Management at Vitality Health Enterprises, Inc. - Harvard Business School Case Study

The first step to solve HBR Performance Management at Vitality Health Enterprises, Inc. case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Vitality Hoffman is facing right now. Even though the problem statement is essentially – “Leadership & Managing People” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Vitality Hoffman, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Performance Management at Vitality Health Enterprises, Inc.. The external environment analysis of Performance Management at Vitality Health Enterprises, Inc. will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Performance Management at Vitality Health Enterprises, Inc. case study. PESTEL analysis of " Performance Management at Vitality Health Enterprises, Inc." can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Performance Management at Vitality Health Enterprises, Inc. macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Performance Management at Vitality Health Enterprises, Inc.

To do comprehensive PESTEL analysis of case study – Performance Management at Vitality Health Enterprises, Inc. , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Performance Management at Vitality Health Enterprises, Inc.

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Government policies have significant impact on the business environment of any country. The firm in “ Performance Management at Vitality Health Enterprises, Inc. ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Vitality Hoffman is operating, firms are required to store customer data within the premises of the country. Vitality Hoffman needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Performance Management at Vitality Health Enterprises, Inc. has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Vitality Hoffman in case study Performance Management at Vitality Health Enterprises, Inc." should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Vitality Hoffman in case study “ Performance Management at Vitality Health Enterprises, Inc. ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Vitality Hoffman in case study “ Performance Management at Vitality Health Enterprises, Inc. ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Performance Management at Vitality Health Enterprises, Inc. ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Vitality Hoffman can compete against other competitors.

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Performance Management at Vitality Health Enterprises, Inc. case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Vitality Hoffman needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Performance Management at Vitality Health Enterprises, Inc.

Social factors that impact performance management at vitality health enterprises, inc., technological factors that impact performance management at vitality health enterprises, inc., environmental factors that impact performance management at vitality health enterprises, inc., legal factors that impact performance management at vitality health enterprises, inc., step 3 – industry specific analysis, what is porter five forces analysis, step 4 – swot analysis / internal environment analysis, step 5 – porter value chain / vrio / vrin analysis, step 6 – evaluating alternatives & recommendations, step 7 – basis for recommendations, references :: performance management at vitality health enterprises, inc. case study solution.

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Performance Management at Vitality Health Enterprises, Inc.

By: John B. Bingham, Michael Beer

Vitality Health Enterprises, a medium-sized firm that manufactures health and personal care products, has experienced six straight quarters of strong revenue growth. James Hoffman, the new Senior…

  • Length: 14 page(s)
  • Publication Date: Jul 12, 2012
  • Discipline: Human Resource Management
  • Product #: 913501-PDF-ENG

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Vitality Health Enterprises, a medium-sized firm that manufactures health and personal care products, has experienced six straight quarters of strong revenue growth. James Hoffman, the new Senior Vice President of Human Resources, fears that the chain of success is shifting the company's focus away from effective performance management. Recently, Vitality has been faced with increasing turnover among the company's talented research scientists that may be due to a performance management system that leaves top performing employees slighted by the practice of uniform ratings. In an effort to retain top employees, the company institutes a forced distribution model of performance rankings, moving from an absolute ranking system to a relative one. Hoffman and his performance management evaluation team must assess the practical and strategic effectiveness of the new system and present their findings and recommendations to the Board.

Learning Objectives

Explore essential elements of a performance management system in a broad organizational context, specifically regarding the identification and reward of top performers.

Acquaint students with the challenges associated with designing, evaluating, and refining a performance management system as new evidence is gathered about employee performance and motivation.

Evaluate the pros and cons of forced distribution performance rating systems in contrast with absolute performance management systems.

Jul 12, 2012

Discipline:

Human Resource Management

HBS Brief Cases

913501-PDF-ENG

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performance management at vitality health enterprises inc case study solution

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Performance Management Vitality Health, Case Study Example

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Question 1:

Due to disappointing earnings in the first quarter of 2009, Williams started looking at the current system they had in place. She organized the Performance Management Evaluation Team that evaluated the performance management system including employee reward system, and other factors. (Bingham, Beer, 2012) In evaluating the old system the PMET discovered the system was a serious problem for Vitality Healthcare 2500 employees including scientists, staff, and other personnel. Vitality Healthcare Enterprises old system contained 13 various rating levels which made them susceptible to the mangers’ biases, a major problem with performance management systems.(Lawler, 2012)

The 13 rating levels ranged from A to E and pluses and minuses. The managers often tended to give homogeneous ratings to maintain the feeling of equality among the employees. Within the old system the managers did not want to offend employees, so they only rarely gave E’s, a few D’s or A’s, but instead handed B and C ratings to employees. (Bingham, Beer, 2012) The rating system was consistently abused by managerial staff that would manipulate the system for their own benefit. The way that the rating system was running was an inconsistent way of evaluating the performance of employees that were actually doing their job and the employees that were not.(OPM.GOV, n.d)

Upon further evaluation of managers rating, since managers rarely gave A ratings because they did not want to upset the environment in the workplace. Because of fear of upsetting the status quo of the teams in R&D, it left the top employees feeling slighted and not deserving of the merit based wage and rewards systems that they were entitled to.(Bingham, Beer, 2012) The employees either low or high performing were all judge on the same level, which tended to frustrate rather than encourage employees to be productive. The rating levels were contributed to the company point system used for determining salary calculation and raises. The formula was calculated by “Pay Policy line= Base Salary + (Job Evaluation Points *Increase per Point)” (Bingham, Beer, 2012) Based on their base salary for 2009, “f(x) = $2900 + (Job Evaluation Points * $9.06). (Bingham, Beer, 2012) In addition employee salaries were also formulated based on comparative ratio of individual performance within the company. The compensations figures were 7%-8% higher than the competition. (Bingham, Beer, 2012) Although the workers did not complain the way that the system was set up left the top employees without the due credit and the firing of the low employees difficult that was in essence harming the company instead of helping it.

The biggest difference seems to be that the old system would only correctly compensate someone for their efforts the first time they produce well. After that, their compensation increases at a slower rate than peers regardless of their effectiveness. Even though, people were paid 7-8% over the industry averages, the structure of the compensation made people feel undervalued and eventually led many to devalue the marginal contribution to the company. The new system is an attempt to focus the pay on performance measurements and eliminate free-riding by underperforming employees. By increasing the correlation of performance to compensation, the marginal efforts of an employee becomes more valuable to them. (Billikop, n,s)Top employees that were frustrated with the lack of recognition then left the company, leaving the company not being able to hold onto top prospects, scientists, and engineers.

The root cause of the problems was the managers, they had the free will in order to oversee the system without a second checkup of employee performances.(Lawler, 2012) They abused the system out of fear of the employees disliking them, an interruption in the work flow, and less productivity, however since they were not another system in place that provided a second set of eyes top employees were left frustrated due to the nature of the salary, a raise based system. Another root cause was that were too many contributing factors to the salary.(WPI, n.d) There were three factors that determine the salary of workers and the rewards systems, instead of a sure way of guaranteeing a rewards system.

Question 2:

After the PMT evaluation of the old system, Williams stepped into gear and implemented a new system that would replace the old system with improved performance management system with a better distribution model of performance rankings. The absolute ranking system that was in place was switched to a relative one that employees would be measured not only on “predetermined standards in which “everyone could win,” employees were now rated with respect to one another.”(Bingham, Beer, 2012) In implementing the new system they eliminated on of the key problem of the managers giving all employees high grades even when the department the employees were working in failed to meet their productivity output. The ranking categories instead of the A-E system there were based on four options that were made more visible of the performances of employees.

The new system replaced the excessive 13 level point scale with a more practical 5 point categories, that easily fit employees of ; Tip Achievers, Achievers, Low Achievers, and Unacceptable categories. While a fifth category was made for employees that were new to the company and not yet rated. (Bingham, Beer, 2012) In the new system not only were the employees evaluated on their performance of achieving goals outlined by their job, but the managers are also evaluated on their performance of meeting the needs of their staff, the effects of training of the employees, employee relations, communication methods, and implementation of the company initiatives.

The new system also differed from the old system as part of its performance review of employees by conducting reviews and reporting results at the start of each calendar year, in efforts to align with the company’s performance reviews in order to better measure collaborative efforts and reduce the impact of outside factors on relative rankings. (Bingham, Beer, 2012) The new system was able to change the performance based compensation and wage increase structure that included changing to performance short and long term cash and equity bonuses.(Incentive Research Foundation, n.d) This was put in place to keep top talent, and leaving the workers that deserve the recognition with feeling confident in their work. A change that was made also was that it limited the options of stock available to the managers and executives as an incentive.

In the breakdown of the change of the old system to the new system was the rankings in which the employees were originally graded, scaling down the 13 point system to a modest visible 5 category system. A clearer rating criteria that took into account both the performance of fellow employees and the meeting of job specific goals. The new system not only rated the employee performances but also the managers as well that lead to more reliable ratings, and a restructure of the performance based incentives for compensation in order to keep the top performing employees.

However, the new system was not without its problems as, seen with the new performance based incentive compensation system, the employees became more defensive of their ratings and were not as open to coaching in order to improve. The managers felt they could not discussed the employee’s performance due to the closeness of the merit based incentives. The system reviewed performance based on goals that were specific to the job, employees were stuck doing tasks that were only laid out in their goals, and unwilling to step outside of that because they would not be rewarded. Since the managers were also evaluated their new system, managers felt that the system required much more of their time, and they felt they were not adequately rewarded. Another problem was that the managers felt that the distribution system was to “rigid”.(Bingham, Beer, 2012) The new system did not account for the group having a good year there would still be top achievers and poor performers. Mangers were still able to manipulate the system for veteran employees as they decided to give the “not rated” ranking to them in order for them to keep their high rankings. They still submitted rankings they felt would not differiate between employees, they would lie to the employees by telling them they received a specific ranking but did not, and rotated higher rankings in order to not put in much effort in reviewing performances of employees. (Bingham, Beer, 2012) All of these factors lead to inaccurate rankings that still harmed the company, and the employees did not like the feeling of pitted against each other.

Question 3:

Recommendations for the Vitality Health in going forward with their system is to change the performance reviews from annually to quarterly. This allows for a better use of the reviews in alliance throughout the year while performing the tasks, and taking pressure off the tightly schedule of the merit based incentive and the reviews. What the new system did not change is the comparative ration that contributes to salary as well, instead of the using the model the base pay of the employees can be closely related to the market. This also is a recommendation of changing the entire formula by changing the percentage of basic pay that should be based on the level of employment instead of securely on job performance that have been found to be an unreliable source of measurement.

In the new system the ratings categories are broken down into 5 clear options, for each review in each team there are top achievers and there are poor performers. However, as pointed out earlier if an entire team has an impressive year, the team members that were not as up to part but still a top achiever would most likely be ranked as a poor performer. It is an unfair assessment as those ranked as a poor performer get a lower pay than the top achievers in the same impressive team. Instead, the pay should be based not only on the team effort or performance but also the individual performance ratings so that workers will not be group together as like the old system and the current system. This way the team and employees feel mutually responsible for a positive outcome, and nobody takes the blame if the team is to receive a poor rating. This not only solves the problem of the rigidness of the system but also the manager’s feelings of not being able to approach the employees with their performances.

Another recommendation to change the want of employees to do work outside of their job requirements is incorporating collaboration of other departments apart of the goals that laid out in their job so that all work that they do is adequately rewarded. In order for employees to not feel as if they are being pitted against each other is to not make the system around comparing employees to each other. One solution is to set up job goals that are objective that each employee must achieve in order to obtain their salary pay. This way all the employees would be able to set out the time to reach the extra goals if they wanted to receive the extra compensation of the merit based incentive system. This would ensure that compensation is based on each individual’s effort, rather than how they compare to other employees. All employees would be compensated fairly and productivity would remain high.

Bingham, John, Beer, Michael. 2012. Performance Management a Vitality Health Enterprises, Inc. Harvard Business Cases.

Billikop, Gregorio. N.d .. Incentive Pay (pay for performance ). University of California. Retrieved from http://nature.berkeley.edu/ucce50/ag-labor/7labor/08.htm

Heathfield, S.M . Performance Management Process Checklist Step-by-step to a Performance Management System . About.Com. Retrieved from http://humanresources.about.com/od/performancemanagement/a/perfmgmt.htm

Incentive Research Foundation.2008. Incentives, Motivation & Workplace Performance . Incentive Performance Center. Retrieved from http://www.incentivecentral.org/employees/whitepapers/incentives_motivation_workplace_performance.1824.html

Lawler, E. III. 2012. Performance Appraisals Are Dead, Long Live Performance Management. Forbe s . Retrieved from http://www.forbes.com/sites/edwardlawler/2012/07/12/performance-appraisals-are-dead-long-live-performance-management/

Management Study Guide n.d. Performance Appraisal Tools and Techniques . Retrieved from http://www.managementstudyguide.com/performance-appraisal-tools.htm

OPM.GOV. n.d. Performance Management Performance Management Cycle. Retrieved from https://www.opm.gov/policy-data-oversight/performance-management/performance-management-cycle/

WPI. N.d . Performance Appraisal Process . Retrieved from http://www.wpi.edu/Admin/HR/performance-appraisal.html

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Performance Management at Vitality Health Enterprises Inc Case Analysis and Case Solution

Posted by Peter Williams on Aug-09-2018

Introduction of Performance Management at Vitality Health Enterprises Inc Case Solution

The Performance Management at Vitality Health Enterprises Inc case study is a Harvard Business Review case study, which presents a simulated practical experience to the reader allowing them to learn about real life problems in the business world. The Performance Management at Vitality Health Enterprises Inc case consisted of a central issue to the organization, which had to be identified, analysed and creative solutions had to be drawn to tackle the issue. This paper presents the solved Performance Management at Vitality Health Enterprises Inc case analysis and case solution. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution.

The case solution first identifies the central issue to the Performance Management at Vitality Health Enterprises Inc case study, and the relevant stakeholders affected by this issue. This is known as the problem identification stage. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. The tools used in identifying the solution consist of the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis. The solution consists of recommended strategies to overcome this central issue. It is a good idea to also propose alternative case study solutions, because if the main solution is not found feasible, then the alternative solutions could be implemented. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. This shows how through a step-by-step procedure as to how the central issue can be resolved.

Problem Identification of Performance Management at Vitality Health Enterprises Inc Case Solution

Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. In the problem identification stage, the problem faced by Performance Management at Vitality Health Enterprises Inc is identified through reading of the case. This could be mentioned at the start of the reading, the middle or the end. At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. At other times, finding the issue is the job of the person analysing the case. It is also important to understand what stakeholders are affected by the problem and how. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these.

Analysis of the Performance Management at Vitality Health Enterprises Inc HBR Case Study

The objective of the case should be focused on. This is doing the Performance Management at Vitality Health Enterprises Inc Case Solution. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found.

  • In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. These can usually be developed using the company history is provided in the case. Company history is helpful in a Business Case study as it helps one understand what the scope of the solutions will be for the case study.
  • The next step is of understanding the company; its people, their priorities and the overall culture. This can be done by using company history. It can also be done by looking at anecdotal instances of managers or employees that are usually included in an HBR case study description to give the reader a real feel of the situation.
  • Lastly, a timeline of the issues and events in the case needs to be made. Arranging events in a timeline allows one to predict the next few events that are likely to take place. It also helps one in developing the case study solutions. The timeline also helps in understanding the continuous challenges that are being faced by the organisation.

SWOT analysis of Performance Management at Vitality Health Enterprises Inc

An important tool that helps in addressing the central issue of the case and coming up with Performance Management at Vitality Health Enterprises Inc HBR case solution is the SWOT analysis.

  • The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. It helps in the strategic analysis of Performance Management at Vitality Health Enterprises Inc.
  • Once this listing has been done, a clearer picture can be developed in regards to how strategies will be formed to address the main problem. For example, strengths will be used as an advantage in solving the issue.

Therefore, the SWOT analysis is a helpful tool in coming up with the Performance Management at Vitality Health Enterprises Inc Case Study answers. One does not need to remain restricted to using the traditional SWOT analysis, but the advanced TOWS matrix or weighted average SWOT analysis can also be used.

Porter Five Forces Analysis for Performance Management at Vitality Health Enterprises Inc

Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. This is also a strategic tool that is used to analyse the competitive environment of the industry in which Performance Management at Vitality Health Enterprises Inc operates in. Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business environment of the industry that they operate in. Harvard Business case studies represent real-life situations, and therefore, an analysis of the industry's competitive environment needs to be carried out to come up with more holistic case study solutions. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions.

  • These are the threats that the industry faces due to new entrants.
  • It includes the threat of substitute products.
  • It includes the bargaining power of buyers in the industry.
  • It includes the bargaining power of suppliers in an industry.
  • Lastly, the overall rivalry or competition within the industry is analysed.

This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. Actionable and practical solutions can then be developed by keeping these factors into perspective.

PESTEL Analysis of Performance Management at Vitality Health Enterprises Inc

Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. This also looks at the external business environment of the organisation helps in finding case study Analysis to real-life business issues as in HBR cases.

  • The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry.
  • Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question.
  • These factors are also responsible for the future growth and challenges within the industry. Hence, they should be taken into consideration when coming up with the Performance Management at Vitality Health Enterprises Inc case solution.

VRIO Analysis of Performance Management at Vitality Health Enterprises Inc

This is an analysis carried out to know about the internal strengths and capabilities of Performance Management at Vitality Health Enterprises Inc. Under the VRIO analysis, the following steps are carried out:

  • The internal resources of Performance Management at Vitality Health Enterprises Inc are listed down.
  • Each of these resources are assessed in terms of the value it brings to the organization.
  • Each resource is assessed in terms of how rare it is. A rare resource is one that is not commonly used by competitors.
  • Each resource is assessed whether it could be imitated by competition easily or not.
  • Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not.

The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. If a resource is high on all of these 4, then it brings long-term competitive advantage. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. If a resource is only valuable, then it’s a competitive parity. If it’s none, then it can be regarded as a competitive disadvantage.

Value Chain Analysis of Performance Management at Vitality Health Enterprises Inc

The Value chain analysis of Performance Management at Vitality Health Enterprises Inc helps in identifying the activities of an organization, and how these add value in terms of cost reduction and differentiation. This tool is used in the case study analysis as follows:

  • The firm’s primary and support activities are listed down.
  • Identifying the importance of these activities in the cost of the product and the differentiation they produce.
  • Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities.

Recognizing value creating activities and enhancing the value that they create allow Performance Management at Vitality Health Enterprises Inc to increase its competitive advantage.

BCG Matrix of Performance Management at Vitality Health Enterprises Inc

The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. The steps to be followed in this analysis is as follows:

  • Identify the relative market share of each strategic business unit.
  • Identify the market growth of each strategic business unit.
  • Place these strategic business units in one of four categories. Question Marks are those strategic business units with high market share and low market growth rate. Stars are those strategic business units with high market share and high market growth rate. Cash Cows are those strategic business units with high market share and low market growth rate. Dogs are those strategic business units with low market share and low growth rate.
  • Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix.

The strategies identified from the Performance Management at Vitality Health Enterprises Inc BCG matrix and included in the case pdf. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting.

Ansoff Matrix of Performance Management at Vitality Health Enterprises Inc

Ansoff Matrix is an important strategic tool to come up with future strategies for Performance Management at Vitality Health Enterprises Inc in the case solution. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products.

  • The organization can penetrate into existing markets with its existing products. This is known as market penetration strategy.
  • The organization can develop new products for the existing market. This is known as product development strategy.
  • The organization can enter new markets with its existing products. This is known as market development strategy.
  • The organization can enter into new markets with new products. This is known as a diversification strategy.

The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take.

Marketing Mix of Performance Management at Vitality Health Enterprises Inc

Performance Management at Vitality Health Enterprises Inc needs to bring out certain responses from the market that it targets. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. The 4 elements of the marketing mix are Product, Price, Place and Promotions. The following steps are required to carry out a marketing mix analysis and include this in the case study analysis.

  • Analyse the company’s products and devise strategies to improve the product offering of the company.
  • Analyse the company’s price points and devise strategies that could be based on competition, value or cost.
  • Analyse the company’s promotion mix. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. Strategies will be devised which makes use of a few or all of these elements.
  • Analyse the company’s distribution and reach. Strategies can be devised to improve the availability of the company’s products.

Performance Management at Vitality Health Enterprises Inc Blue Ocean Strategy

The strategies devised and included in the Performance Management at Vitality Health Enterprises Inc case memo should have a blue ocean strategy. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. It involves coming up with new and unique products or ideas through innovation. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy.

Competitors analysis of Performance Management at Vitality Health Enterprises Inc

The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. The Competitors analysis of Performance Management at Vitality Health Enterprises Inc looks at the direct and indirect competitors within the industry that it operates in.

  • This involves a detailed analysis of their actions and how these would affect the future strategies of Performance Management at Vitality Health Enterprises Inc.
  • It involves looking at the current market share of the company and its competitors.
  • It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc.
  • It also should look at the potential opportunities and threats that these competitors pose on the company.

Organisation of the Analysis into Performance Management at Vitality Health Enterprises Inc Case Study Solution

Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. These solutions will also be the Performance Management at Vitality Health Enterprises Inc case answers. These are usually in the form of strategies that the organisation can adopt. The following step-by-step procedure can be used to organise the Harvard Business case solution and recommendations:

  • The first step of the solution is to come up with a corporate level strategy for the organisation. This part consists of solutions that address issues faced by the organisation on a strategic level. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. It can include recommendations on how the organisation can work towards achieving these strategic objectives. Furthermore, it needs to be explained how the stated recommendations will help in solving the main issue mentioned in the case and where the company will stand in the future as a result of these.
  • The second step of the solution is to come up with a business level strategy. The HBR case studies may present issues faced by a part of the organisation. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Therefore, the strategic objectives of this business unit (Marketing) will be laid down in the solutions and recommendations will be made as to how to achieve these objectives. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. For example, if one suggests the organisation to focus on differentiation for competitive advantage as a corporate level strategy, then it can't be recommended for the Performance Management at Vitality Health Enterprises Inc Case Study Solution that the business unit should focus on costs.
  • The third step is not compulsory but depends from case to case. In some HBR case studies, one may be required to analyse an issue at a department. This issue may be analysed for a manager or employee as well. In these cases, recommendations need to be made for these people. The solution may state that objectives that these people need to achieve and how these objectives would be achieved.

The case study analysis and solution, and Performance Management at Vitality Health Enterprises Inc case answers should be written down in the Performance Management at Vitality Health Enterprises Inc case memo, clearly identifying which part shows what. The Performance Management at Vitality Health Enterprises Inc case should be in a professional format, presenting points clearly that are well understood by the reader.

Alternate solution to the Performance Management at Vitality Health Enterprises Inc HBR case study

It is important to have more than one solution to the case study. This is the alternate solution that would be implemented if the original proposed solution is found infeasible or impossible due to a change in circumstances. The alternate solution for Performance Management at Vitality Health Enterprises Inc is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations.

Implementation of Performance Management at Vitality Health Enterprises Inc Case Solution

The case study does not end at just providing recommendations to the issues at hand. One is also required to provide how these recommendations would be implemented. This is shown through a proper implementation framework. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. It also lays down the changes needed to be made as well as the assumptions in the process.

  • A proper implementation framework shows that one has clearly understood the case study and the main issue within it.
  • It shows that one has been clarified with the HBR fundamentals on the topic.
  • It shows that the details provided in the case have been properly analysed.
  • It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented.
  • The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Therefore, the implementation framework ensures that the solution to the Performance Management at Vitality Health Enterprises Inc Harvard case is complete and properly answered.

Recommendations and Action Plan for Performance Management at Vitality Health Enterprises Inc case analysis

For Performance Management at Vitality Health Enterprises Inc, based on the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis, the recommendations and action plan are as follows:

  • Performance Management at Vitality Health Enterprises Inc should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL.
  • Performance Management at Vitality Health Enterprises Inc should enhance the value creating activities within its value chain.
  • Performance Management at Vitality Health Enterprises Inc should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis.
  • To achieve its overall corporate and business level objectives, it should make use of the marketing mix tools to obtain desired results from its target market.

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Introduction to case study solution

EMBA Pro case study solution for Performance Management at Vitality Health Enterprises, Inc. case study

At EMBA PRO , we provide corporate level professional case study solution. Performance Management at Vitality Health Enterprises, Inc. case study is a Harvard Business School (HBR) case study written by John B. Bingham, Michael Beer. The Performance Management at Vitality Health Enterprises, Inc. (referred as “Vitality Hoffman” from here on) case study provides evaluation & decision scenario in field of Leadership & Managing People. It also touches upon business topics such as - Value proposition, Branding, Collaboration, Executive compensation, Financial analysis, Health, Manufacturing, Motivating people, Performance measurement, Personnel policies, Product development, Social responsibility, Talent management. Our immersive learning methodology from – case study discussions to simulations tools help MBA and EMBA professionals to - gain new insight, deepen their knowledge of the Leadership & Managing People field, and broaden their skill set.

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Case Description of Performance Management at Vitality Health Enterprises, Inc. Case Study

Vitality Health Enterprises, a medium-sized firm that manufactures health and personal care products, has experienced six straight quarters of strong revenue growth. James Hoffman, the new Senior Vice President of Human Resources, fears that the chain of success is shifting the company's focus away from effective performance management. Recently, Vitality has been faced with increasing turnover among the company's talented research scientists that may be due to a performance management system that leaves top performing employees slighted by the practice of uniform ratings. In an effort to retain top employees, the company institutes a forced distribution model of performance rankings, moving from an absolute ranking system to a relative one. Hoffman and his performance management evaluation team must assess the practical and strategic effectiveness of the new system and present their findings and recommendations to the Board.

Case Authors : John B. Bingham, Michael Beer

Topic : leadership & managing people, related areas : branding, collaboration, executive compensation, financial analysis, health, manufacturing, motivating people, performance measurement, personnel policies, product development, social responsibility, talent management, what is the case study method how can you use it to write case solution for performance management at vitality health enterprises, inc. case study.

Almost all of the case studies contain well defined situations. MBA and EMBA professional can take advantage of these situations to - apply theoretical framework, recommend new processes, and use quantitative methods to suggest course of action. Awareness of the common situations can help MBA & EMBA professionals read the case study more efficiently, discuss it more effectively among the team members, narrow down the options, and write cogently.

Case Study Solution Approaches

Three Step Approach to Performance Management at Vitality Health Enterprises, Inc. Case Study Solution

The three step case study solution approach comprises – Conclusions – MBA & EMBA professionals should state their conclusions at the very start. It helps in communicating the points directly and the direction one took. Reasons – At the second stage provide the reasons for the conclusions. Why you choose one course of action over the other. For example why the change effort failed in the case and what can be done to rectify it. Or how the marketing budget can be better spent using social media rather than traditional media. Evidences – Finally you should provide evidences to support your reasons. It has to come from the data provided within the case study rather than data from outside world. Evidences should be both compelling and consistent. In case study method there is ‘no right’ answer, just how effectively you analyzed the situation based on incomplete information and multiple scenarios.

Case Study Solution of Performance Management at Vitality Health Enterprises, Inc.

We write Performance Management at Vitality Health Enterprises, Inc. case study solution using Harvard Business Review case writing framework & HBR Leadership & Managing People learning notes. We try to cover all the bases in the field of Leadership & Managing People, Branding, Collaboration, Executive compensation, Financial analysis, Health, Manufacturing, Motivating people, Performance measurement, Personnel policies, Product development, Social responsibility, Talent management and other related areas.

Objectives of using various frameworks in Performance Management at Vitality Health Enterprises, Inc. case study solution

By using the above frameworks for Performance Management at Vitality Health Enterprises, Inc. case study solutions, you can clearly draw conclusions on the following areas – What are the strength and weaknesses of Vitality Hoffman (SWOT Analysis) What are external factors that are impacting the business environment (PESTEL Analysis) Should Vitality Hoffman enter new market or launch new product (Opportunities & Threats from SWOT Analysis) What will be the expected profitability of the new products or services (Porter Five Forces Analysis) How it can improve the profitability in a given industry (Porter Value Chain Analysis) What are the resources needed to increase profitability (VRIO Analysis) Finally which business to continue, where to invest further and from which to get out (BCG Growth Share Analysis)

SWOT Analysis of Performance Management at Vitality Health Enterprises, Inc.

SWOT analysis stands for – Strengths, Weaknesses, Opportunities and Threats. Strengths and Weaknesses are result of Vitality Hoffman internal factors, while opportunities and threats arise from developments in external environment in which Vitality Hoffman operates. SWOT analysis will help us in not only getting a better insight into Vitality Hoffman present competitive advantage but also help us in how things have to evolve to maintain and consolidate the competitive advantage.

- Strong Balance Sheet – The financial statement of Vitality Hoffman looks strong and will help the company going forward.

- High customer loyalty & repeat purchase among existing customers – Vitality Hoffman old customers are still loyal to the firm even though it has limited success with millennial. I believe that Vitality Hoffman can make a transition even by keeping these people on board.

- Vitality Hoffman business model can be easily replicated by competitors – According to John B. Bingham, Michael Beer , the business model of Vitality Hoffman can be easily replicated by players in the industry.

- Little experience of international market – Even though it is a major player in local market, Vitality Hoffman has little experience in international market. According to John B. Bingham, Michael Beer , Vitality Hoffman needs international talent to penetrate into developing markets.

Opportunities

- Developments in Artificial Intelligence – Vitality Hoffman can use developments in artificial intelligence to better predict consumer demand, cater to niche segments, and make better recommendation engines.

- Increase in Consumer Disposable Income – Vitality Hoffman can use the increasing disposable income to build a new business model where customers start paying progressively for using its products. According to John B. Bingham, Michael Beer of Performance Management at Vitality Health Enterprises, Inc. case study, Vitality Hoffman can use this trend to expand in adjacent areas Branding, Collaboration, Executive compensation, Financial analysis, Health, Manufacturing, Motivating people, Performance measurement, Personnel policies, Product development, Social responsibility, Talent management.

- Age and life-cycle segmentation of Vitality Hoffman shows that the company still hasn’t able to penetrate the millennial market.

- Growing dominance of digital players such as Amazon, Google, Microsoft etc can reduce the manoeuvring space for Vitality Hoffman and put upward pressure on marketing budget.

Once all the factors mentioned in the Performance Management at Vitality Health Enterprises, Inc. case study are organized based on SWOT analysis, just remove the non essential factors. This will help you in building a weighted SWOT analysis which reflects the real importance of factors rather than just tabulation of all the factors mentioned in the case.

What is PESTEL Analysis

PESTEL /PEST / STEP Analysis of Performance Management at Vitality Health Enterprises, Inc. Case Study

PESTEL stands for – Political, Economic, Social, Technological, Environmental, and Legal factors that impact the macro environment in which Vitality Hoffman operates in. John B. Bingham, Michael Beer provides extensive information about PESTEL factors in Performance Management at Vitality Health Enterprises, Inc. case study.

Political Factors

- Political and Legal Structure – The political system seems stable and there is consistency in both economic policies and foreign policies.

- Political consensus among various parties regarding taxation rate and investment policies. Over the years the country has progressively worked to lower the entry of barrier and streamline the tax structure.

Economic Factors

- Inflation rate is one of the key criteria to consider for Vitality Hoffman before entering into a new market.

- According to John B. Bingham, Michael Beer . Vitality Hoffman should closely monitor consumer disposable income level, household debt level, and level of efficiency of local financial markets.

Social Factors

- Consumer buying behavior and consumer buying process – Vitality Hoffman should closely follow the dynamics of why and how the consumers are buying the products both in existing categories and in segments that Vitality Hoffman wants to enter.

- Demographic shifts in the economy are also a good social indicator for Vitality Hoffman to predict not only overall trend in market but also demand for Vitality Hoffman product among its core customer segments.

Technological Factors

- Proliferation of mobile phones has created a generation whose primary tool of entertainment and information consumption is mobile phone. Vitality Hoffman needs to adjust its marketing strategy accordingly.

- 5G has potential to transform the business environment especially in terms of marketing and promotion for Vitality Hoffman.

Environmental Factors

- Consumer activism is significantly impacting Vitality Hoffman branding, marketing and corporate social responsibility (CSR) initiatives.

- Environmental regulations can impact the cost structure of Vitality Hoffman. It can further impact the cost of doing business in certain markets.

Legal Factors

- Health and safety norms in number of markets that Vitality Hoffman operates in are lax thus impact the competition playing field.

- Property rights are also an area of concern for Vitality Hoffman as it needs to make significant Branding, Collaboration, Executive compensation, Financial analysis, Health, Manufacturing, Motivating people, Performance measurement, Personnel policies, Product development, Social responsibility, Talent management infrastructure investment just to enter new market.

What are Porter Five Forces

Porter Five Forces Analysis of Performance Management at Vitality Health Enterprises, Inc.

Competition among existing players, bargaining power of suppliers, bargaining power of buyers, threat of new entrants, and threat of substitutes.

What is VRIO Analysis

VRIO Analysis of Performance Management at Vitality Health Enterprises, Inc.

VRIO stands for – Value of the resource that Vitality Hoffman possess, Rareness of those resource, Imitation Risk that competitors pose, and Organizational Competence of Vitality Hoffman. VRIO and VRIN analysis can help the firm.

What is Porter Value Chain

Porter Value Chain Analysis of Performance Management at Vitality Health Enterprises, Inc.

As the name suggests Value Chain framework is developed by Michael Porter in 1980’s and it is primarily used for analyzing Vitality Hoffman relative cost and value structure. Managers can use Porter Value Chain framework to disaggregate various processes and their relative costs in the Vitality Hoffman. This will help in answering – the related costs and various sources of competitive advantages of Vitality Hoffman in the markets it operates in. The process can also be done to competitors to understand their competitive advantages and competitive strategies. According to Michael Porter – Competitive Advantage is a relative term and has to be understood in the context of rivalry within an industry. So Value Chain competitive benchmarking should be done based on industry structure and bottlenecks.

What is BCG Growth Share Matrix

BCG Growth Share Matrix of Performance Management at Vitality Health Enterprises, Inc.

BCG Growth Share Matrix is very valuable tool to analyze Vitality Hoffman strategic positioning in various sectors that it operates in and strategic options that are available to it. Product Market segmentation in BCG Growth Share matrix should be done with great care as there can be a scenario where Vitality Hoffman can be market leader in the industry without being a dominant player or segment leader in any of the segment. BCG analysis should comprise not only growth share of industry & Vitality Hoffman business unit but also Vitality Hoffman - overall profitability, level of debt, debt paying capacity, growth potential, expansion expertise, dividend requirements from shareholders, and overall competitive strength. Two key considerations while using BCG Growth Share Matrix for Performance Management at Vitality Health Enterprises, Inc. case study solution - How to calculate Weighted Average Market Share using BCG Growth Share Matrix Relative Weighted Average Market Share Vs Largest Competitor

5C Marketing Analysis of Performance Management at Vitality Health Enterprises, Inc.

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John B. Bingham, Michael Beer (2018) , "Performance Management at Vitality Health Enterprises, Inc. Harvard Business Review Case Study. Published by HBR Publications.

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Performance Management at Vitality Health Enterprises Inc

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Performance Management at Vitality Health Enterprises Inc Case Study Solution & Analysis

In most courses studied at Harvard Business schools, students are provided with a case study. Major HBR cases concerns on a whole industry, a whole organization or some part of organization; profitable or non-profitable organizations. Student’s role is to analyze the case and diagnose the situation, identify the problem and then give appropriate recommendations and steps to be taken.

To make a detailed case analysis, student should follow these steps:

STEP 1: Reading Up Harvard Case Study Method Guide:

Case study method guide is provided to students which determine the aspects of problem needed to be considered while analyzing a case study. It is very important to have a thorough reading and understanding of guidelines provided. However, poor guide reading will lead to misunderstanding of case and failure of analyses. It is recommended to read guidelines before and after reading the case to understand what is asked and how the questions are to be answered. Therefore, in-depth understanding f case guidelines is very important.

Harvard Case Study Solutions

STEP 2: Reading The Performance Management at Vitality Health Enterprises Inc Harvard Case Study:

To have a complete understanding of the case, one should focus on case reading. It is said that case should be read two times. Initially, fast reading without taking notes and underlines should be done. Initial reading is to get a rough idea of what information is provided for the analyses. Then, a very careful reading should be done at second time reading of the case. This time, highlighting the important point and mark the necessary information provided in the case. In addition, the quantitative data in case, and its relations with other quantitative or qualitative variables should be given more importance. Also, manipulating different data and combining with other information available will give a new insight. However, all of the information provided is not reliable and relevant.

When having a fast reading, following points should be noted:

  • Nature of organization
  • Nature if industry in which organization operates.
  • External environment that is effecting organization
  • Problems being faced by management
  • Identification of communication strategies.
  • Any relevant strategy that can be added.
  • Control and out-of-control situations.

When reading the case for second time, following points should be considered:

  • Decisions needed to be made and the responsible Person to make decision.
  • Objectives of the organization and key players in this case.
  • The compatibility of objectives. if not, their reconciliations and necessary redefinition.
  • Sources and constraints of organization from meeting its objectives.

After reading the case and guidelines thoroughly, reader should go forward and start the analyses of the case.

STEP 3: Doing The Case Analysis Of Performance Management at Vitality Health Enterprises Inc:

To make an appropriate case analyses, firstly, reader should mark the important problems that are happening in the organization. There may be multiple problems that can be faced by any organization. Secondly, after identifying problems in the company, identify the most concerned and important problem that needed to be focused.

Firstly, the introduction is written. After having a clear idea of what is defined in the case, we deliver it to the reader. It is better to start the introduction from any historical or social context. The challenging diagnosis for Performance Management at Vitality Health Enterprises Inc and the management of information is needed to be provided. However, introduction should not be longer than 6-7 lines in a paragraph. As the most important objective is to convey the most important message for to the reader.

After introduction, problem statement is defined. In the problem statement, the company’s most important problem and constraints to solve these problems should be define clearly. However, the problem should be concisely define in no more than a paragraph. After defining the problems and constraints, analysis of the case study is begin.

STEP 4: SWOT Analysis of the Performance Management at Vitality Health Enterprises Inc HBR Case Solution:

SWOT analysis helps the business to identify its strengths and weaknesses, as well as understanding of opportunity that can be availed and the threat that the company is facing. SWOT for Performance Management at Vitality Health Enterprises Inc is a powerful tool of analysis as it provide a thought to uncover and exploit the opportunities that can be used to increase and enhance company’s operations. In addition, it also identifies the weaknesses of the organization that will help to be eliminated and manage the threats that would catch the attention of the management.

This strategy helps the company to make any strategy that would differentiate the company from competitors, so that the organization can compete successfully in the industry. The strengths and weaknesses are obtained from internal organization. Whereas, the opportunities and threats are generally related from external environment of organization. Moreover, it is also called Internal-External Analysis.

In the strengths, management should identify the following points exists in the organization:

  • Advantages of the organization
  • Activities of the company better than competitors.
  • Unique resources and low cost resources company have.
  • Activities and resources market sees as the company’s strength.
  • Unique selling proposition of the company.

WEAKNESSES:

  • Improvement that could be done.
  • Activities that can be avoided for Performance Management at Vitality Health Enterprises Inc.
  • Activities that can be determined as your weakness in the market.
  • Factors that can reduce the sales.
  • Competitor’s activities that can be seen as your weakness.

OPPORTUNITIES:

  • Good opportunities that can be spotted.
  • Interesting trends of industry.
  • Change in technology and market strategies
  • Government policy changes that is related to the company’s field
  • Changes in social patterns and lifestyles.
  • Local events.

Following points can be identified as a threat to company:

  • Company’s facing obstacles.
  • Activities of competitors.
  • Product and services quality standards
  • Threat from changing technologies
  • Financial/cash flow problems
  • Weakness that threaten the business.

Following points should be considered when applying SWOT to the analysis:

  • Precise and verifiable phrases should be sued.
  • Prioritize the points under each head, so that management can identify which step has to be taken first.
  • Apply the analyses at proposed level. Clear yourself first that on what basis you have to apply SWOT matrix.
  • Make sure that points identified should carry itself with strategy formulation process.
  • Use particular terms (like USP, Core Competencies Analyses etc.) to get a comprehensive picture of analyses.

STEP 5: PESTEL/ PEST Analysis of Performance Management at Vitality Health Enterprises Inc Case Solution:

Pest analyses is a widely used tool to analyze the Political, Economic, Socio-cultural, Technological, Environmental and legal situations which can provide great and new opportunities to the company as well as these factors can also threat the company, to be dangerous in future.

Pest analysis is very important and informative.  It is used for the purpose of identifying business opportunities and advance threat warning. Moreover, it also helps to the extent to which change is useful for the company and also guide the direction for the change. In addition, it also helps to avoid activities and actions that will be harmful for the company in future, including projects and strategies.

To analyze the business objective and its opportunities and threats, following steps should be followed:

  • Brainstorm and assumption the changes that should be made to organization. Answer the necessary questions that are related to specific needs of organization
  • Analyze the opportunities that would be happen due to the change.
  • Analyze the threats and issues that would be caused due to change.
  • Perform cost benefit analyses and take the appropriate action.

Pest analysis

PEST FACTORS:

  • Next political elections and changes that will happen in the country due to these elections
  • Strong and powerful political person, his point of view on business policies and their effect on the organization.
  • Strength of property rights and law rules. And its ratio with corruption and organized crimes. Changes in these situation and its effects.
  • Change in Legislation and taxation effects on the company
  • Trend of regulations and deregulations. Effects of change in business regulations
  • Timescale of legislative change.
  • Other political factors likely to change for Performance Management at Vitality Health Enterprises Inc.

ECONOMICAL:

  • Position and current economy trend i.e. growing, stagnant or declining.
  • Exchange rates fluctuations and its relation with company.
  • Change in Level of customer’s disposable income and its effect.
  • Fluctuation in unemployment rate and its effect on hiring of skilled employees
  • Access to credit and loans. And its effects on company
  • Effect of globalization on economic environment
  • Considerations on other economic factors

SOCIO-CULTURAL:

  • Change in population growth rate and age factors, and its impacts on organization.
  • Effect on organization due to Change in attitudes and generational shifts.
  • Standards of health, education and social mobility levels. Its changes and effects on company.
  • Employment patterns, job market trend and attitude towards work according to different age groups.

case study solutions

  • Social attitudes and social trends, change in socio culture an dits effects.
  • Religious believers and life styles and its effects on organization
  • Other socio culture factors and its impacts.

TECHNOLOGICAL:

  • Any new technology that company is using
  • Any new technology in market that could affect the work, organization or industry
  • Access of competitors to the new technologies and its impact on their product development/better services.
  • Research areas of government and education institutes in which the company can make any efforts
  • Changes in infra-structure and its effects on work flow
  • Existing technology that can facilitate the company
  • Other technological factors and their impacts on company and industry

These headings and analyses would help the company to consider these factors and make a “big picture” of company’s characteristics. This will help the manager to take the decision and drawing conclusion about the forces that would create a big impact on company and its resources.

STEP 6: Porter’s Five Forces/ Strategic Analysis Of The Performance Management at Vitality Health Enterprises Inc Case Study:

To analyze the structure of a company and its corporate strategy, Porter’s five forces model is used. In this model, five forces have been identified which play an important part in shaping the market and industry. These forces are used to measure competition intensity and profitability of an industry and market.

porter’s five forces model

These forces refers to micro environment and the company ability to serve its customers and make a profit. These five forces includes three forces from horizontal competition and two forces from vertical competition. The five forces are discussed below:

  • THREAT OF NEW ENTRANTS:
  • as the industry have high profits, many new entrants will try to enter into the market. However, the new entrants will eventually cause decrease in overall industry profits. Therefore, it is necessary to block the new entrants in the industry. following factors is describing the level of threat to new entrants:
  • Barriers to entry that includes copy rights and patents.
  • High capital requirement
  • Government restricted policies
  • Switching cost
  • Access to suppliers and distributions
  • Customer loyalty to established brands.
  • THREAT OF SUBSTITUTES:
  • this describes the threat to company. If the goods and services are not up to the standard, consumers can use substitutes and alternatives that do not need any extra effort and do not make a major difference. For example, using Aquafina in substitution of tap water, Pepsi in alternative of Coca Cola. The potential factors that made customer shift to substitutes are as follows:
  • Price performance of substitute
  • Switching costs of buyer
  • Products substitute available in the market
  • Reduction of quality
  • Close substitution are available
  • DEGREE OF INDUSTRY RIVALRY:
  • the lesser money and resources are required to enter into any industry, the higher there will be new competitors and be an effective competitor. It will also weaken the company’s position. Following are the potential factors that will influence the company’s competition:
  • Competitive advantage
  • Continuous innovation
  • Sustainable position in competitive advantage
  • Level of advertising
  • Competitive strategy
  • BARGAINING POWER OF BUYERS:
  • it deals with the ability of customers to take down the prices. It mainly consists the importance of a customer and the level of cost if a customer will switch from one product to another. The buyer power is high if there are too many alternatives available. And the buyer power is low if there are lesser options of alternatives and switching. Following factors will influence the buying power of customers:
  • Bargaining leverage
  • Switching cost of a buyer
  • Buyer price sensitivity
  • Competitive advantage of company’s product
  • BARGAINING POWER OF SUPPLIERS:
  • this refers to the supplier’s ability of increasing and decreasing prices. If there are few alternatives o supplier available, this will threat the company and it would have to purchase its raw material in supplier’s terms. However, if there are many suppliers alternative, suppliers have low bargaining power and company do not have to face high switching cost. The potential factors that effects bargaining power of suppliers are the following:
  • Input differentiation
  • Impact of cost on differentiation
  • Strength of distribution centers
  • Input substitute’s availability.

STEP 7: VRIO Analysis of Performance Management at Vitality Health Enterprises Inc:

Vrio analysis for Performance Management at Vitality Health Enterprises Inc case study identified the four main attributes which helps the organization to gain a competitive advantages. The author of this theory suggests that firm must be valuable, rare, imperfectly imitable and perfectly non sustainable. Therefore there must be some resources and capabilities in an organization that can facilitate the competitive advantage to company. The four components of VRIO analysis are described below: VALUABLE: the company must have some resources or strategies that can exploit opportunities and defend the company from major threats. If the company holds some value then answer is yes. Resources are also valuable if they provide customer satisfaction and increase customer value. This value may create by increasing differentiation in existing product or decrease its price. Is these conditions are not met, company may lead to competitive disadvantage. Therefore, it is necessary to continually review the Performance Management at Vitality Health Enterprises Inc company’s activities and resources values. RARE: the resources of the Performance Management at Vitality Health Enterprises Inc company that are not used by any other company are known as rare. Rare and valuable resources grant much competitive advantages to the firm. However, when more than one few companies uses the same resources and provide competitive parity are also known as rare resources. Even, the competitive parity is not desired position, but the company should not lose its valuable resources, even they are common. COSTLY TO IMITATE : the resources are costly to imitate, if other organizations cannot imitate it. However, imitation is done in two ways. One is duplicating that is direct imitation and the other one is substituting that is indirect imitation.  Any firm who has valuable and rare resources, and these resources are costly to imitate, have achieved their competitive advantage. However, resources should also be perfectly non sustainable. The reasons that resource imitation is costly are historical conditions, casual ambiguity and social complexity. ORGANIZED TO CAPTURE VALUE : resources, itself, cannot provide advantages to organization until it is organized and exploit to do so. A firm (like Performance Management at Vitality Health Enterprises Inc)  must organize its management systems, processes, policies and strategies to fully utilize the resource’s potential to be valuable, rare and costly to imitate.

STEP 8: Generating Alternatives For Performance Management at Vitality Health Enterprises Inc Case Solution:

After completing the analyses of the company, its opportunities and threats, it is important to generate a solution of the problem and the alternatives a company can apply in order to solve its problems. To generate the alternative of problem, following things must to be kept in mind:

  • Realistic solution should be identified that can be operated in the company, with all its constraints and opportunities.
  • as the problem and its solution cannot occur at the same time, it should be described as mutually exclusive
  • it is not possible for a company to not to take any action, therefore, the alternative of doing nothing is not viable.
  • Student should provide more than one decent solution. Providing two undesirable alternatives to make the other one attractive is not acceptable.

Once the alternatives have been generated, student should evaluate the options and select the appropriate and viable solution for the company.

STEP 9: Selection Of Alternatives For Performance Management at Vitality Health Enterprises Inc Case Solution:

It is very important to select the alternatives and then evaluate the best one as the company have limited choices and constraints. Therefore to select the best alternative, there are many factors that is needed to be kept in mind. The criteria’s on which business decisions are to be selected areas under:

  • Improve profitability
  • Increase sales, market shares, return on investments
  • Customer satisfaction
  • Brand image
  • Corporate mission, vision and strategy
  • Resources and capabilities

Alternatives should be measures that which alternative will perform better than other one and the valid reasons. In addition, alternatives should be related to the problem statements and issues described in the case study.

STEP 10: Evaluation Of Alternatives For Performance Management at Vitality Health Enterprises Inc Case Solution:

If the selected alternative is fulfilling the above criteria, the decision should be taken straightforwardly. Best alternative should be selected must be the best when evaluating it on the decision criteria. Another method used to evaluate the alternatives are the list of pros and cons of each alternative and one who has more pros than cons and can be workable under organizational constraints.

STEP 11: Recommendations For Performance Management at Vitality Health Enterprises Inc Case Study (Solution):

There should be only one recommendation to enhance the company’s operations and its growth or solving its problems. The decision that is being taken should be justified and viable for solving the problems.

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Performance Management at Vitality Health Enterprises, Inc. (Brief Case)

  • Format: Print
  • | Language: English
  • | Pages: 14

About The Author

performance management at vitality health enterprises inc case study solution

Michael Beer

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Performance Management at Vitality Health Enterprises, Inc.

Case solution.

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Performance Management at Vitality Health Enterprises, Inc. is a Harvard Business (HBR) Case Study on Leadership & Managing People , Fern Fort University provides HBR case study assignment help for just $11. Our case solution is based on Case Study Method expertise & our global insights.

Leadership & Managing People Case Study | Authors :: John B. Bingham, Michael Beer

Case study description.

Vitality Health Enterprises, a medium-sized firm that manufactures health and personal care products, has experienced six straight quarters of strong revenue growth. James Hoffman, the new Senior Vice President of Human Resources, fears that the chain of success is shifting the company's focus away from effective performance management. Recently, Vitality has been faced with increasing turnover among the company's talented research scientists that may be due to a performance management system that leaves top performing employees slighted by the practice of uniform ratings. In an effort to retain top employees, the company institutes a forced distribution model of performance rankings, moving from an absolute ranking system to a relative one. Hoffman and his performance management evaluation team must assess the practical and strategic effectiveness of the new system and present their findings and recommendations to the Board.

Branding, Collaboration, Executive compensation, Financial analysis, Health, Manufacturing, Motivating people, Performance measurement, Personnel policies, Product development, Social responsibility, Talent management

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[10 Steps] Case Study Analysis & Solution

Step 1 - reading up harvard business review fundamentals on the leadership & managing people.

Even before you start reading a business case study just make sure that you have brushed up the Harvard Business Review (HBR) fundamentals on the Leadership & Managing People. Brushing up HBR fundamentals will provide a strong base for investigative reading. Often readers scan through the business case study without having a clear map in mind. This leads to unstructured learning process resulting in missed details and at worse wrong conclusions. Reading up the HBR fundamentals helps in sketching out business case study analysis and solution roadmap even before you start reading the case study. It also provides starting ideas as fundamentals often provide insight into some of the aspects that may not be covered in the business case study itself.

Step 2 - Reading the Performance Management at Vitality Health Enterprises, Inc. HBR Case Study

To write an emphatic case study analysis and provide pragmatic and actionable solutions, you must have a strong grasps of the facts and the central problem of the HBR case study. Begin slowly - underline the details and sketch out the business case study description map. In some cases you will able to find the central problem in the beginning itself while in others it may be in the end in form of questions. Business case study paragraph by paragraph mapping will help you in organizing the information correctly and provide a clear guide to go back to the case study if you need further information. My case study strategy involves -

  • Marking out the protagonist and key players in the case study from the very start.
  • Drawing a motivation chart of the key players and their priorities from the case study description.
  • Refine the central problem the protagonist is facing in the case and how it relates to the HBR fundamentals on the topic.
  • Evaluate each detail in the case study in light of the HBR case study analysis core ideas.

Step 3 - Performance Management at Vitality Health Enterprises, Inc. Case Study Analysis

Once you are comfortable with the details and objective of the business case study proceed forward to put some details into the analysis template. You can do business case study analysis by following Fern Fort University step by step instructions -

  • Company history is provided in the first half of the case. You can use this history to draw a growth path and illustrate vision, mission and strategic objectives of the organization. Often history is provided in the case not only to provide a background to the problem but also provide the scope of the solution that you can write for the case study.
  • HBR case studies provide anecdotal instances from managers and employees in the organization to give a feel of real situation on the ground. Use these instances and opinions to mark out the organization's culture, its people priorities & inhibitions.
  • Make a time line of the events and issues in the case study. Time line can provide the clue for the next step in organization's journey. Time line also provides an insight into the progressive challenges the company is facing in the case study.

Step 4 - SWOT Analysis of Performance Management at Vitality Health Enterprises, Inc.

Once you finished the case analysis, time line of the events and other critical details. Focus on the following -

  • Zero down on the central problem and two to five related problems in the case study.
  • Do the SWOT analysis of the Performance Management at Vitality Health Enterprises, Inc. . SWOT analysis is a strategic tool to map out the strengths, weakness, opportunities and threats that a firm is facing.
  • SWOT analysis and SWOT Matrix will help you to clearly mark out - Strengths Weakness Opportunities & Threats that the organization or manager is facing in the Performance Management at Vitality Health Enterprises, Inc.
  • SWOT analysis will also provide a priority list of problem to be solved.
  • You can also do a weighted SWOT analysis of Performance Management at Vitality Health Enterprises, Inc. HBR case study.

Step 5 - Porter 5 Forces / Strategic Analysis of Industry Analysis Performance Management at Vitality Health Enterprises, Inc.

In our live classes we often come across business managers who pinpoint one problem in the case and build a case study analysis and solution around that singular point. Business environments are often complex and require holistic solutions. You should try to understand not only the organization but also the industry which the business operates in. Porter Five Forces is a strategic analysis tool that will help you in understanding the relative powers of the key players in the business case study and what sort of pragmatic and actionable case study solution is viable in the light of given facts.

Step 6 - PESTEL, PEST / STEP Analysis of Performance Management at Vitality Health Enterprises, Inc.

Another way of understanding the external environment of the firm in Performance Management at Vitality Health Enterprises, Inc. is to do a PESTEL - Political, Economic, Social, Technological, Environmental & Legal analysis of the environment the firm operates in. You should make a list of factors that have significant impact on the organization and factors that drive growth in the industry. You can even identify the source of firm's competitive advantage based on PESTEL analysis and Organization's Core Competencies.

Step 7 - Organizing & Prioritizing the Analysis into Performance Management at Vitality Health Enterprises, Inc. Case Study Solution

Once you have developed multipronged approach and work out various suggestions based on the strategic tools. The next step is organizing the solution based on the requirement of the case. You can use the following strategy to organize the findings and suggestions.

  • Build a corporate level strategy - organizing your findings and recommendations in a way to answer the larger strategic objective of the firm. It include using the analysis to answer the company's vision, mission and key objectives , and how your suggestions will take the company to next level in achieving those goals.
  • Business Unit Level Solution - The case study may put you in a position of a marketing manager of a small brand. So instead of providing recommendations for overall company you need to specify the marketing objectives of that particular brand. You have to recommend business unit level recommendations. The scope of the recommendations will be limited to the particular unit but you have to take care of the fact that your recommendations are don't directly contradict the company's overall strategy. For example you can recommend a low cost strategy but the company core competency is design differentiation.
  • Case study solutions can also provide recommendation for the business manager or leader described in the business case study.

Step 8 -Implementation Framework

The goal of the business case study is not only to identify problems and recommend solutions but also to provide a framework to implement those case study solutions. Implementation framework differentiates good case study solutions from great case study solutions. If you able to provide a detailed implementation framework then you have successfully achieved the following objectives -

  • Detailed understanding of the case,
  • Clarity of HBR case study fundamentals,
  • Analyzed case details based on those fundamentals and
  • Developed an ability to prioritize recommendations based on probability of their successful implementation.

Implementation framework helps in weeding out non actionable recommendations, resulting in awesome Performance Management at Vitality Health Enterprises, Inc. case study solution.

Step 9 - Take a Break

Once you finished the case study implementation framework. Take a small break, grab a cup of coffee or whatever you like, go for a walk or just shoot some hoops.

Step 10 - Critically Examine Performance Management at Vitality Health Enterprises, Inc. case study solution

After refreshing your mind, read your case study solution critically. When we are writing case study solution we often have details on our screen as well as in our head. This leads to either missing details or poor sentence structures. Once refreshed go through the case solution again - improve sentence structures and grammar, double check the numbers provided in your analysis and question your recommendations. Be very slow with this process as rushing through it leads to missing key details. Once done it is time to hit the attach button.

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Leadership & Managing People

Performance Management at Vitality Health Enterprises, Inc. ^ 913501

Performance Management at Vitality Health Enterprises, Inc.

performance management at vitality health enterprises inc case study solution

Performance Management at Vitality Health Enterprises, Inc. ^ 913501

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Publication Date: July 12, 2012

Vitality Health Enterprises, a medium-sized firm that manufactures health and personal care products, has experienced six straight quarters of strong revenue growth. James Hoffman, the new Senior Vice President of Human Resources, fears that the chain of success is shifting the company's focus away from effective performance management. Recently, Vitality has been faced with increasing turnover among the company's talented research scientists that may be due to a performance management system that leaves top performing employees slighted by the practice of uniform ratings. In an effort to retain top employees, the company institutes a forced distribution model of performance rankings, moving from an absolute ranking system to a relative one. Hoffman and his performance management evaluation team must assess the practical and strategic effectiveness of the new system and present their findings and recommendations to the Board.

performance management at vitality health enterprises inc case study solution

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