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Reflect on your experience in this class. Identify key topics that you learned in the course, and develop a plan to incorporate them into your future career. Consider how the information you learned in this course will help you in your future classes.
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Case Study One: Cottage Senior Living
Dania Atieh
Southern New Hamphsire University
Final Project
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Introduction
Serving the requirements of elderly and disabled people who need daily support, Cottage
Senior Living operates in the dynamic long-term care and assisted living market. Several urgent
issues, such as decreased resident satisfaction, increased employee turnover rates, and heightened
competition, are facing this sector. Given the industry’s predicted growth, fueled by an aging
Baby Boomer generation and longer life expectancies among older people, these challenges are
of the utmost importance. This paper summarizes the challenges, interpretation of the mission,
vision, and values, and their impacts on the challenges faced.
Summary Of the Circumstances and The Problems
Cottage Senior Living is a part of the more significant long-term care and assisted living
sector, which includes a variety of healthcare and residential service providers for elderly and
disabled people in need of help with daily life. The organization faces falling resident
satisfaction, increased staff turnover, and increased competition in the assisted care market.
These concerns are critical given the industry’s anticipated growth, predominantly fueled by the
aging Baby Boomer demographic and rising life expectancy among older people. In addition,
Cottage Senior Living operates in a competitive market where private payers account for a
sizeable portion of revenue and the four top industry providers hold a meager 13 percent of the
market. It is essential to comprehend the demographics of senior living communities, the variety
of care services provided, and the advent of cutting-edge models like continuing care residential
communities (CCRCs) and memory care institutions to address these issues. Despite Medicaid’s
significance to the sector, the organization made the strategic decision not to advertise to or
accept Medicaid recipients, which gives its situation a unique twist (“Cottage Senior Living,
n.d.).
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Interpretation of the Mission, Vision, and Values of Cottage Senior Living
In the context of the long-term care and assisted living industries, Cottage Senior Living’s
mission, vision, and values come together to provide a guiding framework that determines the
organization’s identity and purpose. The mission statement highlights the organization’s
commitment to improving the quality of life for senior citizens by putting their safety, care, and
comfort first. It reflects a dedication to offering all-encompassing support, considering a person’s
physical, emotional, and social needs. The organization’s daily operations are guided by this
objective, which places a premium on resident pleasure and general welfare. The vision
statement outlines Cottage Senior aspirational aim of becoming the top option for senior living.
It focuses on the pursuit of excellent care and conveys a dedication to going above and beyond
what is expected in the field. The organization’s commitment to adapting to changing healthcare
trends and resident expectations is shown by including “innovation” in the mission statement
(“Cottage Senior Living, n.d.).
These values of compassion, integrity, respect, and quality provide Cottage Senior
Living’s ethical and practical compass. “Compassion” highlights the organization’s commitment
to empathic and sincere care for residents, fostering a supportive and trusting environment.
Reiterating the value of moral behavior and openness, “integrity” ensures all stakeholders can
believe in the organization’s decisions. Regarding inhabitants’ requirements and preferences,
“respect” directs how they are treated decently. “Excellence” establishes a benchmark for
continual progress and motivates the business to offer the best possible care and services. When
taken as a whole, these values foster an organizational culture that aligns with the organization’s
mission and vision, fostering a setting where residents receive exceptional care and staff
members are committed to their jobs (“Cottage Senior Living, n.d.).
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Impact Of the Mission, Vision, And Values on Organizational Circumstances
How Cottage Senior Living interprets its goal, vision, and values is crucial to how it
responds to its difficulties. The mission establishes high standards for well-being and guides care
on residents’ needs to overcome diminishing satisfaction. The organization is inspired to stand
out and effectively engage with the community since the vision’s emphasis on outstanding
service and innovation aligns with the competitive landscape. The organization’s principles also
foster a supportive workplace culture, which addresses staff turnover issues by encouraging
employee engagement and happiness. According to Fuertes et al. (2020), these guiding principles
give Cottage Senior Living a framework for making strategic decisions that will improve
resident satisfaction, keep it competitive, and increase staff retention while adhering to its
mission to offer great care in a loving and secure environment (“Cottage Senior Living, n.d.).
Conclusion
In the constantly changing environment of the long-term care and assisted living
industries, Cottage Senior Living faces some complex problems. These difficulties include
dwindling resident satisfaction, rising staff turnover, and intensified competition. However, the
organization’s apparent interpretation of its goal, vision, and values provides a strong foundation
for tackling these difficulties. Cottage Senior Living can seek to improve the quality of life for its
residents, excel in the delivery of care, and establish a welcoming workplace that benefits
residents and staff by aligning its actions with these guiding principles. Although the path ahead
may be difficult, the company’s dedication to its goal, vision, and values guide it through these
difficulties, ultimately securing its long-term success and reputation as a top choice for senior
living.
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Cottage Senior Living specializes in long-term care, among other things. The
administrative center of the business is located in Huntsville, Alabama. Cottage Senior Living
runs three different senior living residences. The Assisted Living, Memory Care, and Active
Adult homes offer long-term care services. As a result, significant changes have been made to
the company’s customer service philosophy and strategy. The current study incorporates market
characteristics to define the three strategic approaches contributing to the firm’s growth and
performance. This case study analysis evaluates the applicability of strategic analysis to identify
the problems the company has and potential remedies.
The Organization’s Approach
Senior Cottage Living is a well-structured organization that aims to help the elderly. Cliff
White, the company’s president, underlined the need to pay particular attention to the interests of
the elderly clients in his speech. Their mission statement states that they want to ensure that
elderly individuals are treated with dignity and compassion. This indicates how the business
bases its strategic decision-making on its target market’s wants and needs (Ginter et al., 2018).
The business has a clear plan for the future, which includes assessing where it is now in terms of
growth and contrasting it with where it needs to be.
The president has divided their expansion into three phases by asking only three
questions regarding the organization’s future development: what, why, and how regarding
location and capacity for growth. The focus on “service offerings” in the vision demonstrates that
Cottage Senior Living is considering a range of services in addition to housing to support
members’ preferred way of life. This all-encompassing approach can be a component of their
master plan to differentiate themselves from the competitors (Harrington et al., 2016). Providing
residents with amenities and services that encourage ongoing physical and social engagement is
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certainly one of their long-term goals. The company’s president also discussed how serving nonsubsidized, private-pay clients in tertiary markets sets it apart from rivals (“Cottage Senior
Living, n.d.).
The Major Issue Identified From the Case Study
The case study has brought to light a significant need for methods of growth and
expansion. The president of the company presented information showing the company’s aim to
expand into nearby towns, which might be a huge growth engine but is only as good and
effective as the management of the organization (“Cottage Senior Living, n.d.). It is vital to
assess the situation first before moving forward. In each location, franchisees also own the land
on which their businesses are built, which might make it difficult to hire and keep a large enough
pool of qualified workers. However, all business-related tasks, such as hiring staff and running
advertisements, fall within the purview of the Cottage Senior Living corporate office. As a result,
the firm must create an expansion plan that complies with all relevant regulations. An assessment
of present patterns and changes can be used to make predictions about how it will operate in the
future. It will be crucial to assess critical directions for improving a framework for flexible
change in the future (Harrington et al., 2016). The rising proportion of patients with Medicaid
insurance—which is already over 60%—is one of the current trends. Cottage Senior Living does
not currently accept Medicaid patients.
Strategic Planning Concerns
The leadership of the company has pledged its efforts to organize the development
resources of the company to enable it to realize its vision statement. The organization’s goal is to
offer people housing and services that encourage an active, sociable, and involved way of life.
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This suggests that creating a distinctive way of life for its residents has been a significant priority
of their strategic planning (Ginter et al., 2018).
The Role of Healthcare Manager
Senior Cottage Living is a corporate entity that focuses on assisting the senior population.
Within this organization, a healthcare manager assumes a significant responsibility in ensuring
the provision of high-quality healthcare services to align with the company’s goal and vision
(Ginter et al., 2018). The cottages are categorized according to the specific requirements of the
clientele, namely Assisted Living, Memory Care, and Active Adult (“Cottage Senior Living,
n.d.). Hence, a healthcare manager plays a crucial role in evaluating the suitability of potential
locations for establishing healthcare entities and providing recommendations by the regulatory
framework governing the industry’s corporate operations.
Stakeholders
Customers stand to gain the most from the company’s agenda, as their patronage is
crucial to the success of the enterprise. The growth of the organization is dependent on the
participation of seniors, regardless of their demands. The growth of the business has been
segmented into three areas so that all of its resources can be devoted to serving the needs of the
elderly. As a result, customer satisfaction has become a focal point in the company’s efforts to
serve the community and realize its goals in that regard (Harrington et al., 2016).
Conclusion
Based on the case study, the organization has established its advantages and barriers
related to growth and development, which is its major agenda. From a personal standpoint,
strategic planning is based on a company’s ability to identify its limitations and address them as
growth opportunities. Since Senior Cottage Housing has recognized “empty nesters” as a key
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demographic within the senior housing industry, the company has devised a plan to expand into
neighboring communities to meet their needs. By using this segmentation strategy, they may
now cater their products and services to this specific demographic.
Companies seek new ways to stand out in competitive marketplaces in today’s fastchanging business environment. Cottage Senior Living (CSL), a tertiary senior home provider
that targets non-subsidized, private-pay users, is one such company that has established itself
effectively. Cottage Senior Living (CSL) seeks expansion while addressing regulatory issues in
tertiary areas to provide specialized elder care.
Brief Summary of the Case Study
The focus of the case study is Cottage Senior Living (CSL), a provider of senior housing
with its main office in Huntsville, Alabama. CSL’s 1980s founding by Peg Thompson and Wade
White introduced a groundbreaking assisted living service framework (“Cottage Senior Living,”
n.d.). The company targets non-subsidized, private-pay consumers in tertiary markets. CSL’s
extensive elder care portfolio includes independent living (IL), assisted living (AL), memory
care (MC), and skilled nursing facility (SNF) choices. The franchise-like CSL structure allows
each facility to operate as a legal company. They pay CSL a management fee to unify operations
and branding throughout the firm (“Cottage Senior Living,” n.d.). CSL aims to exclude Medicaid
beneficiaries to focus on private-pay consumers.
Policies Addressing the Issue
Cottage Senior Living (CSL) deliberately addresses the challenge of supplying nonsubsidized, private-pay consumers in tertiary markets. Medicaid exclusion is a crucial policy that
fits CSL’s overall plan (“Cottage Senior Living,” n.d.). CSL controls its consumer base by
avoiding Medicaid and focusing on private-pay clients, ensuring its services meet its target
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market. CSL’s franchise-like structure, with each facility as a legal company, pays CSL a
management fee. This structure requires organization-wide branding uniformity, operational
standards, and management fee agreements. In addition, the extensive array of senior care
services offered by CSL, including independent living, assisted living, memory care, and skilled
nursing, strongly supports standards to guarantee quality and compliance for each service
category.
Alignment with Mission and Vision
Cottage Senior Living (CSL) aligns its strategic planning with its mission and vision to
serve non-subsidized, private-pay consumers in tertiary markets. Several factors support this
alignment. First, CSL’s objective is to provide specialized elder care, and its ambition is to
provide high-quality care in tertiary markets (“Cottage Senior Living,” n.d.). By targeting
private-pay consumers, CSL’s strategic strategy carefully follows its objective and vision.
Medicaid enrollees are excluded to ensure CSL’s services target its target market. As stated in its
mission and vision, CSL provides specialized treatment to private-pay customers, ensuring
service quality. CSL may fulfill its mission by entering less crowded areas and offering
specialized treatment. Furthermore, the franchise-like structure in the case standardizes
operations and branding among CSL sites (Crawford-Spencer & Cantatore, 2016).
Standardization fits the organization’s objective of providing specialized services consistently
and a vision of high-quality care across its operations.
SWOT Analysis
Strengths
Specialization in Private-Pay Market: Cottage Senior Living (CSL) excels in serving
non-subsidized, private-pay consumers. CSL differentiates itself in the elder living sector by
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servicing private-pay consumers and setting pricing structures that reflect its dedication to highquality, specialized care.
Comprehensive Senior Care Portfolio: CSL excels in independent living, assisted living,
memory care, and skilled nursing. This complete solution enables CSL to meet older population
demands, improving its market presence and agility.
Standardized Operations: In CSL’s franchise-like organization, maintaining service
quality and brand awareness requires standardization. For instance, all CSL facilities provide
consistent care, amenities, and experiences, building confidence and loyalty.
Weaknesses
Limited Market Reach: CSL’s strategy concentration on tertiary markets may restrict its
market reach and development prospects. Serving sparsely inhabited regions may reduce
earnings due to a limited number of private-pay consumers.
Revenue Source Limits: CSL may encounter revenue source limits by rejecting Medicaid
clients. In recessions or when prospective inhabitants are low-income, relying only on privatepay consumers is dangerous.
Opportunities
Growth in Tertiary Markets: CSL can benefit from the tertiary markets’ potential for
development. Seniors may require specialized care in tertiary areas, allowing CSL to grow its
client base.
Expansion into New Regions: CSL may reach more private-pay clients by expanding into
new locations. To succeed in new areas, however, extensive market analysis and demographic
adaptation are essential.
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Service Diversification: CSL may get a competitive edge by diversifying its services to
fulfill consumer demands. Innovative elder care services, wellness initiatives, and technologydriven solutions may expand the consumer base and income. CSL’s specialized treatment makes
it ideal for these chances.
Threats
Competition from Larger Players: CSL confronts significant competition from more
extensive elder living facilities. Established companies may have more significant resources,
marketing strength, and brand awareness.
Economic Fluctuations: Economic downturns threaten CSL’s sole reliance on private-pay
consumers. Seniors may need help to afford private-pay elder care during downturns.
Environmental Factors and Impact on Care Delivery
The environmental elements discovered via the SWOT analysis are crucial in
determining how CSL delivers care and significantly impact its daily operations. CSL’s capacity
to serve private-pay consumers may be affected by healthcare regulatory changes, particularly
Medicaid and Medicare laws. To comply with changing legislation, CSL must be flexible and
explore changing its business strategy, such as partnering with government programs or
diversifying income streams. CSL’s target clientele—private-pay seniors may be affected by
economic downturns. CSL should prepare to help prospective residents overcome financial
difficulties during economic downturns to boost occupancy rates. The senior living market,
where CSL competes, is very competitive and dominated by more prominent firms. In this
context, CSL must spend on marketing, branding, and service quality to stand apart.
Additionally, technology allows CSL to improve care and efficiency. Telemedicine, EHRs, and
smart home technology may enhance treatment and resident experiences.
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In conclusion, Cottage Senior Living’s mission, vision, and strategic planning fit a
changing healthcare sector well. Depending on regulations, the company’s concentration on
private-pay consumers in tertiary markets may be a strength or weakness. CSL’s strategic
planning focuses on specialized, high-quality elder care, matching its purpose and vision.
Demographic changes and wellness trends provide development potential, while regulatory
uncertainty and economic swings represent dangers. CSL must be flexible and imaginative to
provide excellent care while tackling new problems and capitalizing on elder living sector
expansion.
Cottage Senior Living (CSL) has clear rules for its elder care and assisted living services.
Regulatory compliance, resident well-being, and fiscal responsibility depend on these personnel,
healthcare, facility, and financial management rules. As the elder care business changes, CSL
must adjust its internal rules to accommodate new difficulties and possibilities.
Summary of Current Policies
CSL provides elder care and assisted living. CSL has policies covering its operations and
services. Organizational policies include personnel, healthcare, facilities requirements, and
financial management. CSL’s staffing standards mandate LPNs and RNs and specific staffing
ratios to guarantee that residents get proper care (Cottage Senior Living,” n.d.). These rules
comply with state assisted living and memory care standards, showing CSL’s regulatory
compliance. Healthcare policies may ensure that residents get proper medicine delivery,
evaluations, and care plan adherence (Bombard et al., 2018). These policies promote resident
well-being and excellent healthcare. CSL also has safety, construction, and food service rules
(“Cottage Senior Living,” n.d.). These standards guarantee that CSL’s facilities satisfy
regulations and are safe and pleasant for inhabitants.
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Current Organizational Policies
CSL policies address specific environmental or external issues. These policies emphasize
regulatory compliance and resident well-being, notably in personnel, healthcare, and facility
requirements. CSL’s employment practices maintain state compliance, which is vital in an
industry where regulatory changes may drastically affect operations (“Cottage Senior Living,”
n.d.). In addition, healthcare service policies include medicine delivery and evaluation methods
to protect residents’ health. Facility standards and regulations follow regulatory rules to ensure
resident safety and comfort. However, CSL should frequently evaluate and amend these rules in
order to adequately respond to the evolving eldercare sector.
Internal Policy Changes
I believe that CSL needs particular internal policy modifications and new policies to meet
its issues and potential better. First, CSL should create market growth rules that define how to
penetrate new locations, especially college towns. These strategies should handle state regulatory
differences and establish market research and feasibility evaluations. Second, CSL should
establish technology and innovation strategies that promote ongoing improvement and
technological integration. These policies should describe how to find and adopt new technologies
that improve resident care, operational efficiency, and data-driven decision-making. Third, to
manage growth and financial sustainability, the company should use financial flexibility policies
(Fischer et al., 2019). Finally, CSL should emphasize outreach to residents, their families, and
local communities in its community participation and feedback policy. Regular surveys,
feedback, and resident participation in decision-making should be encouraged by these rules.
Role of Healthcare Manager
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Healthcare managers are crucial leaders who connect strategy objectives to policy
execution. In an organization like CSL, a healthcare manager’s involvement in directing strategic
planning processes around policy revision or development is crucial. Healthcare managers
should lead policy modification and development strategy planning. This job is crucial owing to
their healthcare policy, regulatory, and industry trends knowledge. Healthcare managers should
be policy specialists, keeping up with changes in legislation and rules to ensure policies meet
industry standards (Huebner & Flessa, 2022). They must also actively engage in strategic
planning to align policies with CSL’s goal and vision. Healthcare administrators should openly
communicate with stakeholders to seek input and resolve policy change concerns. They should
monitor policy implementation, liaising with appropriate departments to guarantee compliance
and resolve issues. Healthcare managers can also promote continuous improvement by assessing
policy efficacy and pushing for changes to adapt to changing external conditions.
Influence of Key Stakeholders
The strategic planning process of policy change or development within an organization
like CSL is significantly influenced by key stakeholders. These stakeholders include residents,
their relatives, employees, regulators, and the community. Residents and their families are
critical partners in policy change and planning. Their tastes, experiences, and comments
influence policy. Since resident happiness and well-being are paramount, CSL must consider
their needs and expectations while creating or amending policies. Staff, healthcare professionals,
and administrators also have significant effects. They understand how policies affect everyday
operations. Staff involvement in planning provides knowledge and encourages ownership and
commitment to policy execution. The elder care business relies on government and regulatory
authorities (Mosadeghrad, 2014). Compliance with these standards is mandatory, and regulatory
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changes typically require policy modifications. To avoid fines, CSL must continuously monitor
and respond to changing regulatory demands. Local authorities and neighbors might impact
strategic planning. Support or disagreement from the local community might affect CSL’s
capacity to develop or adopt new policies.
In conclusion, Cottage Senior Living must adjust to elder care sector changes. CSL
should revise its internal policies to meet its strategic goals and provide high-quality care to
residents. Leading this process and ensuring that policies stay applicable and efficient in a
changing healthcare environment are crucial duties played by the healthcare manager and other
important stakeholders.
The primary issues facing Cottage Senior Living are its readiness to expand into new
markets for private-pay customers for its range of services and the impacts of changing policies
on assisted living facilities. Also, these core issues represent the organization’s leaders’ concerns
about the appropriateness of its current business model and staffing plan to support its expansion
goals. Similarly, Cottage Senior Living is facing the issues of competition for its franchising
model, a major staffing shortage that is affecting the entire industry, and a highly dynamic
regulatory and legal environment at both federal and state levels While the organization’s
strengths as a leader in the non-subsidized and private-pay senior living market plus
comprehensive care portfolios helps it to deliver consistent quality services to its customers, the
issues remain the focus of its strategic plans. Therefore, the healthcare manager must include
specific actions in the strategic plan to enable the organization to achieve its expansion and
growth objectives.
Recommended Course of Action
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The analysis of the different courses of action to address the elements of the expansion
issues facing Cottage Senior Living indicated that the healthcare manager should advise the
organization to expand to locations with the right demographics and demand for its services. As
a company that is reputed for serving private-pay consumers efficiently and effectively through
its franchise and staffing models, it has the capacity to expand into these locations successfully.
Also, this approach would enable the organization to leverage the favorable regulations and legal
requirements in these new locations to attract the empty nesters who want to live an active,
vibrant, and engaging lifestyle (Cornell, Zhang, & Thomas, 2020). Although getting land and
spaces that are reasonably priced and located in appropriate locations for its service offerings
might act as barriers, it is recommended that the healthcare manager should leverage the positive
aspects and benefits of CSL’s current franchise and staffing models to overcome the stumbling
blocks to the actualization of the strategic plan to expand the organization’s business into these
new locations. The final aspects of the recommended course of action for the healthcare manager
are the provision of training and competitive pay to attract the right employees in these new
locations (Cornell et al., 2020), individualized memory support services for the growing
population of dementia and Alzheimer’s disease patients across the country (Lam & Covinsky,
2022), and use of technology to lower operational cost, optimize staffing, and maintain service
quality (Poh, Tan, & Lim, 2021). Hence, these recommended courses of action are suitable for
addressing the organization’s concerns regarding its capacity to expand and grow in new
locations across and deal with challenges in the external environment, including competition,
regulations, and legislation.
Driving Key Stakeholders
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The leaders of Cottage Senior Living (CSL) are the major stakeholders who must drive
all elements of the recommended strategic plan to its successful actualization. In this regard, it is
recommended that the leaders and healthcare managers communicate the importance of the
expansion plan to the organization’s mission, vision, and sustainable growth statements to the
employees and provide the required resources for determining the suitable locations for the new
plan. According to Zimmerman et al. (2022), organizational leaders who drive the elements of its
strategic plan ensures the issues and challenges to its attainment are addressed through policies
and actions that motivate other stakeholder such as the employees to commit to the processes
that require their skills and delivery of their work functions. For example, the use of innovative
technology requires the active involvement of the employees in the design and implementation
aspects of the strategic plan. Therefore, the active involvement of these key stakeholders is vital
to the different components of the strategic plan and the attainment of its overall objectives.
Alignment of Strategic Plan with Policy Processes
Finally, Cottage Senior Living must align its strategic plans and policy processes with its
overall mission and vision to achieve its expansion and growth objectives. One of the approaches
for ensuring better alignment of mission and strategic plans is the inclusion of service offerings
in the new tertiary markets that meet the needs of private-pay customers for quality specialized
assisted living care. The other approach for ensuring alignment between the policy processes and
CSL’s mission and vision is the maintenance of the franchise structure and staffing model, which
has helped the organization sustain brand uniformity and reputation in the tertiary assisted living
market. As Zimmerman et al. (2022) stated, organizational policies that support standardized
operations and brand uniformity are necessary for organizations to strive towards the attainment
of their mission and vision statement of delivering high-quality specialized services to private-
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pay customers. For example, the use of technology to support the staffing model and lower
operational costs must be made easily accessible to the target consumers and attract the right
staff in the new locations without diminishing the quality of the services. In summary, Cottage
Senior Living must include appropriate specialized assisted living services for its target
customers in its strategic plan and adhere to its policy processes that support the effective use of
its franchise-like structure and staffing models successfully to better align these components of
its business with its mission and vision statements.
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References
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