Davita Case Study

1176 Words 5 Pages


Reshma Shivdasani- 1053319

I. Discuss DaVita 's business strategy in light of internal and external factors that we have been discussing in class, and be sure to do a SWOT analysis. The attached industry report and your own research may provide relevant data.
Vision of the company: Building the greatest dialysis company the world has ever seen.
Business Objective:
1. Leader in providing kidney dialysis services.
2. Strong leadership.
3. Proven track record for turnaround.
4. Company reputation of being the most admired company.
5. Company has become financially strong with revenues of $ 7.53 billion and net income of $ 641 million.
6. Strong infrastructure
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Their vision is to be the building the greatest dialysis company the world has ever seen. Following are the few HRM practices adopted in order to achieve the business strategy.
1. Kent Thiry 1st strategy was to focus on creating a culture of trust, mutual respect and commitment to the employees, company and patients. Employees are referred as teammates, the CEO as Mayor and the company as a village. This is a very unique process of creating a sense of belonging within the employees.
2. Restructuring the company by moving employees to the appropriate departments, hiring the right skill sets and letting go of non-performers. Hiring people “who can get stuff done” which is also one the company’s core values.
3. Empowering the employees, taking their opinion in consideration and taking the decisions impacting the company as a whole. For example, the name change form Total Renal Care to Davita was done with employees voting for the name.
4. Focusing on Davita quality of Index which represented how well the patients have been looked after. It helped the employees directly see the positive outcome of their hard work such as the company being the care provider in the industry. It also helped them recruiting and
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Recommend HRM practices that may be necessary to achieve the business strategy
Since Davita is operating in a saturated market such as United States the company has to adopt multiple steps to achieve its business strategy.
• A combination of a couple of strategies such as market penetration, horizontal integration and market development. The merger with Healthcare partners will enable the company to take advantage of the country’s healthcare movements. It will give them new customer base and entry to a related industry i.e. health care services.
• Another strategy will be market development by starting new line of services of home dialysis training stations and ambulatory dialysis services. This will help them gain an entire new customer segment.
• Upgrading technology in billing and collections will help comply with the regulatory requirements, and collect data under the new law Medicare Improvements for patients and providers Act (MIPPA).
• Affiliations with nursing schools providing apprentice programs will provide the company a constant availability of resource. The talent and capability can be observed to choose the best talent for the company. This is will reduce the scarcity of labor needs for

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