IE Business School Executive MBA Application

1. Executive MBA Application
Question H
June 2014
By George Chua

2. 1 1
What do you believe are the greatest
challenges facing the sector or
industry you would like to specialize in
at IE? What role do you hope to be
able to play in this sector or industry in
the medium term?

3. 2
Introduction – Care for The Aging in Developed
Countries
Care for The Aging:
 Post-retirement age, a person goes
through many stages and needs –
from celebration of retirement to
healthcare needs at later stage
 Various level of cares is required at
different stages of post-retirement
stages
 Care ranges from low-touch social
needs to high-touch dependable
sickness related needs

4. 3
 Higher life expectancy
 Longer total retirement years
 Higher income in general
 More urban, sophisticated, exciting post
retirement lifestyle
 Smaller family, no children or single
 No or less dependant on family for care
 More mobile and open to move outside
own city or county
 More countries with ballooning aging
society
Now to the Future
 Lower life expectancy
 Short total retirement years
 Lower income in general
 More rural, simply, sedated post
retirement lifestyle
 Larger family with many children
 Dependant on large family for care
 Less mobile and preference to live
within community or city
 Only few countries with aging society
Before
Demographic Change in Developed Countries
Aging society has undergone much changes around the world last decades.
Comparisons as below:

5. 4
Characteristics at Various Stages
Post Retirement Fully Dependant
Stages of The Aging
Partial Dependant
Adjustment to Changes
• Fully adjusted to retirement
life. Next adjustment is
physical condition changes,
may have some ailments
• Slower lifestyle and less
mobile
• Some anxiety of physical
changes
• Depleting savings
• Start to need medical and
psychology support
Active Lifestyle
• Adjustment to retirement life
from active working life
• Looking forward to new
lifestyle, including new
friends, holiday, etc
• Healthy physically and
mobile
• Some anxiety or excitement
of new stage of life
• Have disposable income or
savings, but worry how to
stretch through retirement
stage
High Level Needs
• Need full medical and
nursing attention
• Family may play an active
part to take care
• Anxiety about remaining
years, legacy, family, etc
• Depleting savings, may be
dependant on family

6. 5
Challenges for Aging in Developed Countries
• Most of developed countries
faces high wages for
healthcare workers or aging
lifestyle provider
• Real estate in developed
countries are high, making
nursing home, healthcare
center few and small in size
• For retirees, with higher life
expectancy, many do not
have the opportunity to enjoy
active retirement life or high
standard of medical facilities
• Family do face financial
pressure from retirees as
well
Cost
• Many developed
countries faces shrinking
workforce, impacting pool
of skilled workers
• Most workers in
developed countries
perceives healthcare
work as manual,
preferring other industries
• Immigration restrictions
prevents skilled
healthcare workers from
working in developed
countries
Availability of Resources
• Many governments do
not have solution to
address high number of
aging population
• Government facilities are
not adequate to support
this population
• Most government are
facing financial pressure
and building retirement,
nursing homes are not
priority
Government Support
With the ballooning aging population rapid growth, this demographic shift has pose
much challenges to individuals and governments throughout the world. Challenges
include below:
Consequence of these challenges is that retirees face lower quality of life, putting strain on
next generations and government around the world

7. 6
Opportunity and Solution
However, this demographic shift and challenge pose great opportunity for government
and companies in some countries. The key proposal is to set up centres catering to
aging population in lower cost countries. Below are some countries suitable for set up
of these centres, with target markets.
Malaysia
Thailand
Philippines
Japan
Taiwan
Hong
Kong
Australia
Singapore
United
Kingdom
USA
Legend:
Target Market
Aging Centres
South Korea

8. 7
Business Opportunities
Post Retirement Fully Dependant
Stages of Aged
Partial Dependant
Adjustment to ChangesActive Lifestyle High Level Needs
Linking back to slide on characteristics at different stages of aging life. Below are
opportunities that government or companies can tap into this large market:
Real Estate – Building of Retirement
Villages with specification similar to
home country, example Japan
Village
Lifestyle Vacations – Example Club
Med for Aging or Active Lifestyle
Vacation Packages conducted in
Korean
Specialized Medical Services –
Including language and skill to cater
for specific culture
Government and private companies need to build an integrated ecosystem of
services and homes similar to home country to attract retirees
Maid or Nursing Service - To cater
for specific needs example dialysis
Real Estate – Centralized Nursing
Home for Aged
Maid or Nursing Service - For aged
and fully dependent
Auxiliary Services – including
Banking, Transportation, Restaurant,
Lifestyle that caters to specific
culture needs
Auxiliary Services – including special
dietary, geriatric and psychology
needs
Centralized Aging Home – Building
of Aging homes with specification
similar to home country

9. 8
Key Steps for Success
• Opportunity will be for
both developed and low
cost countries
companies. However, a
Joint Venture between
both ends of companies
is recommended
• There needs to be
specialized services in
developed countries
including marketing,
understanding trends
and in low cost
countries to handle local
barriers
Joint Venture
• Human resources need
to be trained in
language specialized
skills (nursing, medical,
auxiliary services, etc)
• Soft skills including
learning to be culturally
adjusted to a new
culture needs to be
researched and trained
Training and Human
Resource
• Low cost countries have
started to see the
potential of this market
with support of medical
tourism, long stay visas
etc. However, more
support is needed to
grow further the
ecosystem
• Government support is
needed in removing
red-tapes to make it
hassle-free and
attractive for aging
market
Government Support
Below are some key drivers to successfully tap this huge potential market:
With this, Aging group from Developed Countries view this as a great
proposition to seamlessly shift to next phase of life with better quality of life
(Larger Real Estate, Support System, etc)

10. 9
Conclusion
Care for The Aging:
 This proposal address challenges
faced by developed countries with
easing of government’s financial
burden
 Low cost countries reaps the benefit
of increased inflow of income,
consumer spending and employment
 Aging retirees sees the benefit of
better quality of life and look forward
to a new lease of life