Sample Case Study On Autumn Leaves Aged Care Inc.

The political environment in which the business functions is an important macro-environmental input to consider as it directly influences the operations of the aged care services facility in different ways that result in opportunities and threats to the establishment. Equally important is the internal political environment of the business. This is of particular importance when it comes to the decision-making process. There are different parties and management levels involved to make an informed decision and in most cases results to bureaucracy. When Autumn Leaves Aged Care Inc. was established in 2006, the chief financial officer, Ced Pearce had done a PEST analysis and arrived at conclusion that the political environment was favorable for Indian Ocean Developments (IOD) to diversify its investments to aged care. He has observed that the government the government was luring private investors to invest in aged care facilities thereby shifting the burden to them. It was offering attractive tax concession to private investors.
Ced had much control of the internal political environment given his senior managerial position. He was also able to convince the board of directors that investing in aged care was the way to go, had all facts to support his proposition and clear concerns raised.
Ced’s approach to leadership as CEO of autumn leaves aged care Inc. was probably the first downfall of an organization that hadn’t kicked off. It would have been more prudent for him to first study the details and the aged care market before going ahead borrow funds to rapidly expand the business. This way he would have realized that the business was not as lucrative as he thought before committing more funds. Secondly, the amendment in the country’s fiscal policy also affected the operation of Autumn Leaves aged Care Inc. because the tax concession was abolished by the government.