Organizational Operations and Strategies Blue Cross and Blue Shield Association

ORGANIZATIONAL OPERATIONS AND STRATEGIES 1

OrganizationalOperations and Strategies: Blue Cross and Blue Shield Association

Abstract

Organizationsmakes products and delivers, either for profit or not for profit,depend on the process of handling goods and services. Operations aregeared towards ensuring the company or organization in questionremains relevant in its quest to deliver goods and services to theclients. Strategies refer to the operational tools in an organizationthat helps define and illustrate methods used to produce and delivergoods and services to the customers. The BCBS Association is aninsurance company. The company’s operations will be studied withthe focus shifting on the factors that their operations. Thesefactors include technology and information systems, industryenvironment factors, and strategic and short-term planning issue.Corporate and business strategies in the paper will study thecompany’s (BCBS) mission and goals, portfolio of investments thatcharacterizes the insurer’s operations and services, the company’sstrategy, functional strategies, and structure and control. Thesefactors will be wired to explain how the association operates in theindustry.

Organizational Operations and Strategies: Blue Cross and Blue ShieldAssociation

CurrentCompany Operations

Blue Cross andBlue Shield Association is an insurance company, in which it acts asthe licensees, was traditionally separated, and independent of itsoperations. Currently, it offers insurance plans for well-definedregions within either one or both their brands. According to Heneman(2000), Blue Cross and Blue Shield is an insurer offering healthinsurance coverage in the majority of the states in the U.S. Theyalso act as Medicare administrators in several states. Additionally,these insurers provide health coverage to state employees and federalemployees under the Federal Employees Health Benefit coverage plan.

Technologyand information systems: The technology and information systemcurrently employed by the company is the Technology Evaluation andCoverage (TEC) program. The systems wired under these systems are toprovide trade association, financial, medical, and administrativeconsultation ease in handling the company`s operations (Powell,2013). The information systems are structured in the form of a TECprogram for purposes of providing advice to the company`s plans,which assist in determining emerging technologies. The technologiesapplied are the support system, device, and medical and surgicalprocedures.

Industryenvironment factors: The association is faced with some of theenvironmental factors that would threaten the organization`scompetitive success. Legislative issues would affect both thecompany`s life or health and property insurance, which include thederegulation of the banking sector, changes in the industry`s federaltax system, and elimination of the current anti-trust exemption(Powell, 2013). These environment industry factors are likely toaffect the legislation put in place, for example, and thus affect thecompetitiveness of the industry. Again, these factors would fail torecognize the investment income, which would determine the insurancerates offered by the industry. The industry competitiveness,regarding deregulation of banking, would prevent future operations byeither allowing or blocking insurance products in the market.

Strategic or short-term planning issue: The issue pertinentto the study is based on the organization having a strong competitiveedge. The BCBS planning, either strategic or short-term, is based oncollectively providing health care coverage to over 50 millionAmericans (NAME, YEAR). The issue regarding the study is wired uponthe current system, which presents a challenge. For a short-termplanning, the insurer plans to have a BCBS health care reform thatcould help challenge the issue of transparency and having fullpremium taxes and financial disclosure. These practices will helpkeep the health insurances level of costs more affordable, bycreating a more dynamic insurance environment.

Corporateand Business Strategies

Mission andgoals: BCBS commits to being their customers` trusted partner byoffering affordable and innovation insurance products towardsimproving their health and care (Newton &amp Chrochetière, 2007).The company aspires to be simple and clear targeted at helping itscustomers to make the right and sound decisions regarding theirhealth, valuable coverage, and assist with quality health care toloved ones.

BCBS goals areassociated with their social mission. The insurer goals are toincrease access to cheap and affordable care, enhance the patients`quality care received, and improve the country`s health making iteasily accessible to the citizens and the entire community. Theirgoals also include maintaining the status of being the leading andmost affordable health insurance company across the region. To focuson personal care for its customers by obtaining high customerstandard services by maintaining the corporation`s sound financialstability.

RelatedBusiness Lines or Portfolio of Investments: The business linesfor BCBS are not related, but are only a portfolio of investments.Portfolio of investments for the BCBS includes collaboration withEntira, Allina, Northern Health Alliance, and the Sanford Health,which promotes innovation and health care advancement, quality, andaffordability. The portfolio of investments also includes AccountableCommunity for Health and Southern Community Care (SCC) in Prairie.

Companystrategy: The Company follows a business unrelateddiversification strategy, which helps in the creation of scale.Murray (2007) noted that since the early 80s, Blue Cross launcheddiversification strategies that oversee other subsidiary companies,which would offer other product and services unrelated to healthinsurance. These include life insurance subsidiaries, medical tourismnetwork provider, casualty and property insurance, and data servicesand behavioral benefits. The strategy also involved taking the levelof expertise the company developed earlier in the arena ofgovernmental programs. This was meant to spin all the separatedcompanies to build the business lines. By creating this scale, thecompany is placed in a more stable position to dictate itsadministrative costs, maintain the stability of its finances, andleverage on technical capabilities.

Functionalstrategies: The BCBS`s functional strategies are customized tosuit an insurance industry, and are used to support other businessand corporate strategies. The BCBS operates in a changingenvironment, which is unpredictable and turbulent. According toMartin (2008), there is a necessity for an insurance company to takeadvantage and implement set plans in their changing industry. One ofthe strategies includes marketing strategic planning, which ismanagement technique more preferable for health and insurance arenas.The strategy allows the marketing team to focus on pushing thecompany`s products to reach its customers. The marketing strategy isaimed at ensuring the insurance products are innovative and ofquality, which would allow base customer responsiveness.

Structureand control: BCBS`s company control system and structure supportthe corporate business strategies. The company`s structure andcontrol system prove to be effective for low-income earners in theregion. The structure is targeted at low-income individuals, whichsupports the business strategy that consciously and intentionallychooses to place itself as the health insurance provider of qualityproducts and services (Heneman, 2000). The company`s system supportsbusiness strategy by having a niche-focused strategy, which willtarget group consumers whose insurance product is targeted atgenerating interest from the group. Additionally, the company alsotargets the mass market, which will attempt to support the corporatestrategy by having a broader consumer market.

and Conclusion

Blue Cross andBlue Shield Association is an insurance company that providesinsurance covers in the United States. Some of its operations, asdiscussed above, are technology and information systems. The companyemploys these systems as part of their operations to provide qualityproducts and services. The company`s operations are influenced byenvironmental factors and marketing planning methods. The paperidentified the company`s corporate and business strategies to includemission and goals, which was closely associated with quality andaffordable health care services. Other strategies include portfolioinvestments, functional strategies, and structure and control.

References

Heneman, R. L. (2000). Business-driven compensation policies:Integrating compensation systems with corporate business strategies.New York: Amacom.

Martin, D. (2008). Managing risk in extreme environments:Front-line business lessons for corporates and financialinstitutions. London: Kogan Page.

Murray, J. E. (2007). Origins of American health insurance: Ahistory of industrial sickness funds. New Haven: Yale UniversityPress.

Newton, D. J., &amp Chrochetière, C. (2007). Crossing thecenturies, committed to care: Blue Cross and Blue Shield in USA,1933-2008. Chapel Hill, N.C: Blue Cross and Blue Shield of NorthCarolina.

Powell, L. S. (2013). Risky Business: Insurance Markets andRegulation. Chicago: Independent Institute.

ORGANIZATIONAL OPERATIONS AND STRATEGIES 1

OrganizationalOperations and Strategies: Blue Cross and Blue Shield Association

Abstract

Organizationsmakes products and delivers, either for profit or not for profit,depend on the process of handling goods and services. Operations aregeared towards ensuring the company or organization in questionremains relevant in its quest to deliver goods and services to theclients. Strategies refer to the operational tools in an organizationthat helps define and illustrate methods used to produce and delivergoods and services to the customers. The BCBS Association is aninsurance company. The company’s operations will be studied withthe focus shifting on the factors that their operations. Thesefactors include technology and information systems, industryenvironment factors, and strategic and short-term planning issue.Corporate and business strategies in the paper will study thecompany’s (BCBS) mission and goals, portfolio of investments thatcharacterizes the insurer’s operations and services, the company’sstrategy, functional strategies, and structure and control. Thesefactors will be wired to explain how the association operates in theindustry.

Organizational Operations and Strategies: Blue Cross and Blue ShieldAssociation

CurrentCompany Operations

Blue Cross andBlue Shield Association is an insurance company, in which it acts asthe licensees, was traditionally separated, and independent of itsoperations. Currently, it offers insurance plans for well-definedregions within either one or both their brands. According to Heneman(2000), Blue Cross and Blue Shield is an insurer offering healthinsurance coverage in the majority of the states in the U.S. Theyalso act as Medicare administrators in several states. Additionally,these insurers provide health coverage to state employees and federalemployees under the Federal Employees Health Benefit coverage plan.

Technologyand information systems: The technology and information systemcurrently employed by the company is the Technology Evaluation andCoverage (TEC) program. The systems wired under these systems are toprovide trade association, financial, medical, and administrativeconsultation ease in handling the company`s operations (Powell,2013). The information systems are structured in the form of a TECprogram for purposes of providing advice to the company`s plans,which assist in determining emerging technologies. The technologiesapplied are the support system, device, and medical and surgicalprocedures.

Industryenvironment factors: The association is faced with some of theenvironmental factors that would threaten the organization`scompetitive success. Legislative issues would affect both thecompany`s life or health and property insurance, which include thederegulation of the banking sector, changes in the industry`s federaltax system, and elimination of the current anti-trust exemption(Powell, 2013). These environment industry factors are likely toaffect the legislation put in place, for example, and thus affect thecompetitiveness of the industry. Again, these factors would fail torecognize the investment income, which would determine the insurancerates offered by the industry. The industry competitiveness,regarding deregulation of banking, would prevent future operations byeither allowing or blocking insurance products in the market.

Strategic or short-term planning issue: The issue pertinentto the study is based on the organization having a strong competitiveedge. The BCBS planning, either strategic or short-term, is based oncollectively providing health care coverage to over 50 millionAmericans (NAME, YEAR). The issue regarding the study is wired uponthe current system, which presents a challenge. For a short-termplanning, the insurer plans to have a BCBS health care reform thatcould help challenge the issue of transparency and having fullpremium taxes and financial disclosure. These practices will helpkeep the health insurances level of costs more affordable, bycreating a more dynamic insurance environment.

Corporateand Business Strategies

Mission andgoals: BCBS commits to being their customers` trusted partner byoffering affordable and innovation insurance products towardsimproving their health and care (Newton &amp Chrochetière, 2007).The company aspires to be simple and clear targeted at helping itscustomers to make the right and sound decisions regarding theirhealth, valuable coverage, and assist with quality health care toloved ones.

BCBS goals areassociated with their social mission. The insurer goals are toincrease access to cheap and affordable care, enhance the patients`quality care received, and improve the country`s health making iteasily accessible to the citizens and the entire community. Theirgoals also include maintaining the status of being the leading andmost affordable health insurance company across the region. To focuson personal care for its customers by obtaining high customerstandard services by maintaining the corporation`s sound financialstability.

RelatedBusiness Lines or Portfolio of Investments: The business linesfor BCBS are not related, but are only a portfolio of investments.Portfolio of investments for the BCBS includes collaboration withEntira, Allina, Northern Health Alliance, and the Sanford Health,which promotes innovation and health care advancement, quality, andaffordability. The portfolio of investments also includes AccountableCommunity for Health and Southern Community Care (SCC) in Prairie.

Companystrategy: The Company follows a business unrelateddiversification strategy, which helps in the creation of scale.Murray (2007) noted that since the early 80s, Blue Cross launcheddiversification strategies that oversee other subsidiary companies,which would offer other product and services unrelated to healthinsurance. These include life insurance subsidiaries, medical tourismnetwork provider, casualty and property insurance, and data servicesand behavioral benefits. The strategy also involved taking the levelof expertise the company developed earlier in the arena ofgovernmental programs. This was meant to spin all the separatedcompanies to build the business lines. By creating this scale, thecompany is placed in a more stable position to dictate itsadministrative costs, maintain the stability of its finances, andleverage on technical capabilities.

Functionalstrategies: The BCBS`s functional strategies are customized tosuit an insurance industry, and are used to support other businessand corporate strategies. The BCBS operates in a changingenvironment, which is unpredictable and turbulent. According toMartin (2008), there is a necessity for an insurance company to takeadvantage and implement set plans in their changing industry. One ofthe strategies includes marketing strategic planning, which ismanagement technique more preferable for health and insurance arenas.The strategy allows the marketing team to focus on pushing thecompany`s products to reach its customers. The marketing strategy isaimed at ensuring the insurance products are innovative and ofquality, which would allow base customer responsiveness.

Structureand control: BCBS`s company control system and structure supportthe corporate business strategies. The company`s structure andcontrol system prove to be effective for low-income earners in theregion. The structure is targeted at low-income individuals, whichsupports the business strategy that consciously and intentionallychooses to place itself as the health insurance provider of qualityproducts and services (Heneman, 2000). The company`s system supportsbusiness strategy by having a niche-focused strategy, which willtarget group consumers whose insurance product is targeted atgenerating interest from the group. Additionally, the company alsotargets the mass market, which will attempt to support the corporatestrategy by having a broader consumer market.

and Conclusion

Blue Cross andBlue Shield Association is an insurance company that providesinsurance covers in the United States. Some of its operations, asdiscussed above, are technology and information systems. The companyemploys these systems as part of their operations to provide qualityproducts and services. The company`s operations are influenced byenvironmental factors and marketing planning methods. The paperidentified the company`s corporate and business strategies to includemission and goals, which was closely associated with quality andaffordable health care services. Other strategies include portfolioinvestments, functional strategies, and structure and control.

References

Heneman, R. L. (2000). Business-driven compensation policies:Integrating compensation systems with corporate business strategies.New York: Amacom.

Martin, D. (2008). Managing risk in extreme environments:Front-line business lessons for corporates and financialinstitutions. London: Kogan Page.

Murray, J. E. (2007). Origins of American health insurance: Ahistory of industrial sickness funds. New Haven: Yale UniversityPress.

Newton, D. J., &amp Chrochetière, C. (2007). Crossing thecenturies, committed to care: Blue Cross and Blue Shield in USA,1933-2008. Chapel Hill, N.C: Blue Cross and Blue Shield of NorthCarolina.

Powell, L. S. (2013). Risky Business: Insurance Markets andRegulation. Chicago: Independent Institute.