Business Analysis in Psychological Centre - Case Study Example

COLLEGE OF HEALTH AND SCIENCE SCHOOL OF BIOLOGICAL AND HEALTH SCIENCE Student Name: Mohammed Almuhaini Student Number: 16674413 Unit Name and Number: 400845 Health Financial Management Tutorial day and time: Spring 2011 Lecturer/Tutor: Wes Baker Title of assignment: Business case in Psychological Centre Word Limit: 3085 Date Due: Date Submitted: Campus Enrollment: Parramatta Declaration:  I hold a copy of this assignment if the original is lost or damaged. Yes  I hereby certify that no part of this assignment or product has been copied from any other student’s work, my other assignments or from any other source except where due acknowledgement is made in the assignment. Yes  No part of the assignment/product has been written / produced for me by any other person except where collaboration has been authorised by the unit lecturer/tutor concerned. Yes  I am aware that this work may be reproduced and submitted to plagiarism detection software programs for the purpose of detecting possible plagiarism (which may retain a copy on its database for future plagiarism checking). Yes  I have attached a copy of the Turnitin report for this assignment. Yes Signature: _________________ Mohammed Almuhaini _____________________________ Note: Your lecturer or tutor has the right to not mark this assignment if the above declaration has not been signed by you. Table of Contents 1.0. Executive Summary……………………………………………………………4 2.0. Introduction……………………………………………………………………6 3.0. Benefits...............................................................................................................7 4.0. Objectives………………………………………………………………………8 5.0. Start-up Requirements…………………………………………………………..8 6.0. Start-up Assets…………………………………………………………………..9 7.0. Non quantifiable factors…………………………………………………………9 8.0. The benefits……………………………………………………………………...9 9.0. Break even Analysis……………………………………………………………...9 10.0. Risk………………………………………………………………………………10 11.0. Implementation of the proposal ………………………………………………….10 12.0. The sales strategy…………………………………………………………………11 13.0. The proposition of value…………………………………………………………11 14.0. The competitive edge…………………………………………………………….11 15.0. The marketing strategy…………………………………………………………..12 16.0. Positioning statement………………………………………………………………12 17.0. Pricing strategy…………………………………………………………………….13 18.0. The formation of strategic alliances………………………………………………..13 19.0. Management structure………………………………………………………………13 20.0. References and Appendices…………………………………………………………14-16 1.0. Executive Summary Good Will Psychological Centre intends to be multidisciplinary health care facility whose prime aim will be to offer health related services mainly to the elderly. However, Hobart, Tasmania’s capital having a population count of approximately 0.2 million people, caring mainly for the elderly may not help Good Will Psychological Centre realise its full potential. It therefore intends to stretch its services to the larger percentage of the Hobart residence. While in Hobart, another aim will be to diligently provide cost effective, high quality treatment mainly for the elderly and the rest of the residence. Our mission will be to achieve maximum customer satisfaction through promotion, creation and maintenance of highly esteemed professionalism so as to realise good customer-worker relationship. To further realise its aims and missions, it seeks to employ a total of 24 persons on permanent basis. As a basic factor to be considered, the firm will realise its competitive environment and to deal with this, it will deliver a managed care in addition to the other innovative care models but offer referrals on other identified higher complicated cases. The consideration of the elderly in the city will go a long way since the firm will incorporate advice from existing retired experts so as to help in realisation as well as implementation of the State’s vision 2025 (Gehl, 2010). The implementation the firm will adopt arose from the Inner City Development Plan (ICDP). The ICDP itself was devised from community consultations made in 2005. Another consideration will be to work closely with mentally challenged and drug addicts. However, as stated earlier, the elderly will be our top priority because of the neglect they face. Good Will Psychological Centre is expected to be run on a self sustaining model that is, being run on self generating profits. However, the costs to fund the proposal will be my personal assets, companies that have expressed the will to finance, contribution from the community around, loans from banks, and well wishers who have pledged towards the goal among other friends. The risk associated with the proposal can be of three broad aspects; financial, social and environmental. To begin with, the financial burden the proposal may not wish to incur is the bad debts incurred when bills are not settled. It is clear to us that the main target group, elderly is sometimes neglected by the society hence leading to unsettled bill(s). On the other hand, these elderly could be belonging to a family of low economic status which may in turn hinder the payments of bills accrued. Socially, the risk associated with the proposal is the challenge related to the ever growing elderly population. The health center may strain to meet the demands of the patients thus compromising on the quality of services rendered. Lastly, there will be environmental challenge associated with this proposal. Though there are no clear waste disposal mechanisms suggested by the proposal that will ensure environmental friendly project, elaborate plan will be initiated to install modern facilities to the effect once the firm is settled. 2.0. Introduction The firm’s objective will be to strengthen the health centre’s commitment so as to improve health standards of the elderly as well as those of Hobart’s residence at large. It will strive to achieve this objective through enhancement of unique customer service to the clients and to be ever ready at always in developing, maintaining and strengthening the quality of services to be offered by the centre. The impacts of the proposal will be to follow from the planned social, environmental and economical sustainable results (Dyllick & Hockerts, 2002). This will be so because our budget has factored in over ten employees we will recruit from the same residence who will see their economical statuses change. Due to eminent environmental challenges that will be faced, the firm will acquire latest medical waste disposal equipments which will ensure that the environment is well thought of and never polluted, thus caring for it now and even for the future generations. Socially, it will assist in reducing the burden of the elderly relatives by increasing the number of health care facilities available for them. The population growth will ever have a facility to cater for the elderly and since it is expected to grow, it will have the capability of even employing a greater work force. Technologically, it will provide market for appliances and machines needed thus contributing positively to the economy of Tasmania State and Australia as a whole. These too can be accountable for, as part of the public expectation (Beckham, 2000). This proposal sets to benefit the society at large and the government whom we are expected to pay tax revenue to. Service management and delivery will be offered by professionals specialized in working in health facilities. To ensure quality provision of services, client’s opinion towards the offered services will be monitored and appropriate measures taken towards the concerned departments. Regular training sessions will be provided on world- class handling of our clients for the best results (Vetter, Carden, Wilkinson, 2001). The Good Will Psychological Centre will offer a wide range of the best psychological health care. This will include but not limited to mental status and addiction problems. Our services will lay it focus on the above related services due chronic problems associated with Hobart. While youths have been mostly affected by drugs and substance abuse, elderly face much neglect from their relative thus affecting psychologically. And it is from these problems that Good Will Psychological Centre will base its services. Precisely, services will be psychopharmacology, psychotherapy, addiction- relieve programmes, and mental health services. 3.0. Benefits Good Will Psychological Centre will be beneficial to the community and the whole country at large. Any patient from any part of the country will be welcome to seek treatment and medical consultations from this centre. The centre will be even of great benefit to the directly affected people as well as those associated with them. For example, parents with children who are addicts will not get medical advice but treatments where possible. Is short, the centre will act as an opportunity for a second chance in life since patients will get treatment and have another chance of living a normal life. With the centre operating, the community will have hope for an upright society (Rakich, 2000). Since the centre will be a privately owned business, the stake holders have accepted the proposal. They are seeking all sorts of support from the community and the government. The stakeholders will also need to have several approvals from different boards concerned with putting up a medical centre. Our mandate will be to ensure thorough development approvals with the proposal. Another consideration will be ensuring that buildings and structures associated with the firm get approvals from the authorities concerned. Lastly, there will be mechanisms to ensure that we have obtained licence for our staff and operating this private hospital. 4.0. Objectives To maintain development, strength and improving services from the Center, below are the stated objectives of Good Will Psychological Heal Centre: Stabilizing what will be the present payer mix by retaining and maintaining relationships with five major psychological health care ventures. Identify and maintain good relationship with three community humanitarian and addiction centers. Establish a network with five community medical group practices. Employ staff two months prior commencing date. Establish and carry out a billing system two months prior commencing date. Ensure patient care by training the staff to satisfactorily attend to the client. Regular performance appraisal. Do a follow up of the client to check on progress. 5.0. Start-up Requirements Legal fee $1,500, Stationery etc. $300 Insurance $350 Rent $1000 renovation and decor $2,000 Staff orientation $1,500, other $600. Total Start-up Expenses $7250 6.0. Start-up Assets Cash Required $100,000, Other Current Assets $5,000 Long-term Assets $250 Total Assets $105, 250, Total Requirements $115,000. See full budget description in the Appendix 5.0. 7.0. Non quantifiable factors Though the centre is expected to experience negative environmental effects such undesirable stigmatisation from the neighbouring communities, which of course may hinder the development application, it is expected to improve health care services to the community. 8.0. The benefits The main aim of the centre is to offer mental and body health care to the community. It is therefore expected that the people in the society will be reached by this services and benefit from them. The centre is expected to make profits which will help in the development of the centre (Levinson, 1984). 9.0. Break even Analysis To come up with the breakeven point we need to identify the fixed costs, selling price per unit and variable costs. Fixed costs - Legal fee $ 1500+ insurance $350+ rent $1000 + salary$600 = 3450 Selling price per service- $4000 Variable costs-stationary $300+ renovation and décor $2000+staff orientation $1500=3800 Breakeven point- Fixed cost/ (selling price- variable costs) 3450/ (4000-3800) = 17.25 10.0. Risk The center conducted a market analysis in order to identify the risks. The firm identified four main target clients all who had specific needs. This included the referral sources, families and individuals, the vendors, the managed companies in addition to the vendors. The center also analyzed the market trends as well as the market growth. This was in addition to the needs assessments, analysis of the business services and that of the main competitors. The firm noticed that the competitors in the market will pose the highest risk. The management of the project has to ensure they use the relevant marketing strategies in order to attract the clients to the center. In addition, the strategies employed by the firm may be a risk factor as they may not be able to yield the set objectives (Johnson, Scholes & Whittington, 2008). The firm needs to analyze the market to come up with the best price package and service provisions that are able to meet the pricing they will quote. Another risk factor that should be of great concern is their location. The location of the center may not be adequate as it is placed far from the target group. A lot of marketing and campaigns are to be put in place to have the center’s location to be identified and accessed easily. Lastly, the center faces risk in the identification of the elderly-target group as well as the utilization of youth friendly services in order to target these elderly who are the most vulnerable (Johnson, Scholes & Whittington, 2008). 11.0. Implementation of the proposal The psychological center is to focus its activities in the Hobart, Tasmania’s capital. The center will seek to employ a total of 24 persons in the various departments as stipulated in the personnel plan. The center will aim to provide psychopharmacology, psychotherapy and addiction and substance abuse services. It will mainly target the consumers who require the mental age services. This will include the old age couples, families, individuals and other needy groups. The larger share however will consist of the old aged persons who will comprise of approximately 45 percent of the total population that will be targeted (Levinson, 1984). 12.0. The sales strategy The firm will target the referral sources and the potential purchasers of the services that will be offered by the center in its sales strategy. This will include the companies that are involved in the managed care, preferred provider organizations, community agencies and other medical groups as well as the clients/consumers. The centers niche approach in marketing will be linked to the sales strategies that are to be applied (Rakich, 2000). 13.0. The proposition of value The center will define its value added benefits for it to compete effectively in the market. The project will aspire to surpass the needs of its clients, staff and its associates and the other referral sources. The needs of the customer or the clients will be able to drive the project’s philosophy of value added provisions of services and its marketing strategy (Rakich, 2000). 14.0. The competitive edge The associates and the staff affiliations will be the competitive edge of the center as they will be in charge of spreading the company’s proposition which will be to meet and exceed the expectations of the clients. The affiliation with the care givers including the leading hospitals in Hobart will give us an upper edge for the referral cases that will come our way. The competitive edge is further influenced by factors which include the quality services, experience, accessibility and customer satisfaction among the other factors. The project has also established an effective customer service desk that is able to listen to the clients need and address them in time (entrepreneurmag.com). 15.0. The marketing strategy The marketing strategies that the center plans to employ include the emphasis of the quality customer driven services, building on business relationships, the focus on the five payers of behavioral health as well as the establishment and building of a niche market. The center will utilize the direct mails, audio and print advertisements as well as the public address system in selling its products. The firm also realizes the growth in the digital world and will purpose to use the social network sites in marketing its products. The firm will develop a website that will be used by any online client to access the services and products that are provided by the firm. The website will also bear in mind the needs of the visually impaired persons by providing voiced options on the websites thus, they will easily be provided with the information about the project through audio technology (entrepreneurmag.com). 16.0. Positioning statement The center will employ multiple strategies to promote its activities which will aim at creating positioning awareness. This will include the participation in the activities that are aimed at creating awareness on the treated disorders, like the National depression Screening Day. Secondly, media advertisements will also be used in this stage since it can easily reach many people. As a third strategy, the center will be able to give informational services to the public through organized workshops and printed articles in collaboration with the media (Rakich, 2000). 17.0. Pricing strategy The project will conduct a survey to identify the charges given by the other competitor service providers. The charges that will be given will slightly be below the charges given by the other service providers. However, the services provided will be effective strategies in an attempt to attract clients who may find the center favorable (Rakich, 2000). 18.0. The formation of strategic alliances The strategic alliances are a critical mode through which the center is to achieve its formulated goals. The center will form this through selling of its services while at the same time strengthening the already existing customer and referral center relationships. 19.0. Management structure The center will provide an organizational structure that will reveal all the existing positions and their functions. A complete form of the organizational structure and the personnel plan is provided in the Appendix 6.0 and 6.1 respectively (Eck, 2000). Reference Lists Beckham, J. (2000), Strategy: what it is how it works, why it fails? Health Forum J; 43 (6):55–9. Dyllick, T., Hockerts, K. (2002), Beyond the Business Case for Corporate Sustainability. John Willey and Sons, Ltd and ERP Environment (www.interscience.willey.com) Eck C. A. (2000), Strategic Endeavor in Business Planning-an oncology perspective. Semin Nurse Manage; 8(2):70–5. Gehl, J. (2010), Public Spaces and Public Life: A City with People in Mind; http://www.hobardcity.com Johnson, G., Scholes, K., Whittington, R., (2008), Exploring Corporate Strategy, 8th Edition FT Prentice Hall, Essex. Levinson, J. (1984), Guerrilla Marketing, Secrets for making big profits from your small business: Houghton Muffin Co. New York. Rakich, J. 2000, Strategic quality planning. Hosp Top; 78(2):5–11. Vetter, L.P., Carden R., Wilkinson, D (2001), Strategic planning in a clinical environment Clinical Leadership Management Rev 2001; 15(1):34–8. “Entrepreneuremag”, (2011, September 2011), (www.entrepreneuremag.com), available: http://www.entrepreneuremag.com Appendices: appendix 5.0 Start-up requirements Legal fee 1500 Stationery 300 Insurance 350 Rent 1,000 Renovation and décor 2,000 Staff orientation 1,500 Other 600 Total start-up expenses 7,250 Start-up Assets Cash required 100,000 Other current assets 5,000 Long term assets 250 Total assets 105,250 Total requirements 225,000 Appendix: 6.1. Read More