Premium Essay

Augustine Medical

In: Business and Management

Submitted By olgavlad
Words 1297
Pages 6
The issue at this time is the determination of the list price to hospitals for the heater/blower unit and the plastic blanket. The price set for the Bair Hugger Patient Warming System would influence the rate at which prospective buyers would purchase the system since the market was price-sensitive to alternative methods. Also, price and volume together would influence the cash flow position of the company. Before the company prices this system, several considerations are required in terms of organizational objectives, demand for the product, customer value perception and buyer price sensitivity, the price of competitive offering, and direct variable costs. The estimate of total potential market for heater/blower unit is 2737 units and 2737000 units for blankets. The direct cost of the heater/blower unit would be $380 and $0.85 per blanket. The initial investment, $500,000, for this system would cover the fixed cost of the company during first year of operation. Based on this information and other considerations, I will discuss the company’s pricing strategy for both products.
Company Background
Dr. Scott Augustine, an anesthesiologist , founded Augustine Medical, Inc. in Minnesota in July 1987. In early 1988, Augustine developed the Bair Hugger Patient Warming System to warm post- surgical patients. The targeted market for this system is the hospital operating rooms and postoperative recovery rooms. The system is designed to treat hypothermia which is a condition found in 60-80 percent of all postop patients where the body temperature is below 36 degrees Centigrade or 96 degrees Fahrenheit which is the result of the patient’s exposure to cold operating room temperatures, heat loss due to evaporation of fluids used to scrub patients, evaporation from the exposed bowel and breathing of dry anesthetic gases.

Competition, Hospital market and Industry
There...

Similar Documents

Premium Essay

Augustine Medical, Inc.

...Augustine Medical, Inc. The Bair Hugger® Patient Warming System Problem: August Medical, Inc. was incorporated as a Minnesota corporation to develop and market products for hospital operating rooms and postoperative recovery rooms. And the main problem of Bair Hugger patient Warming System is how to price this system and how to compete to other competitors. SWOT Analysis: Strength | weakness | 1. The system has a good structure design.2. Warm air makes patients feel warm and stop shivering.3. The system cannot cause burns and water leaks around electrical equipment are not a problem, as they are with water-circulating blankets.4. The disposable blankets eliminate the potential for cross-contamination among patients.5. The system does not require that the patient be lifted or rolled.6. A large initial capitalization for the system to research and development.7. The product is easy access for nurses and doctors | 1. There is no patent protection for the heater blower unit.2. The disposable cover will result in more inventories and cost.3. The warming time per patient is about two hours, this is a long time.4. It has high margin paid. | opportunities | threats | 1. About 21 million surgical operation are performed annually in the United States, or 84000 operations per average eight-hour work day. So this market potential is big.2. The responses for the physicians and nurses are very good. | 1. The respondents express the system is price-sensitive to alternative......

Words: 1033 - Pages: 5

Premium Essay

Augustine Medical Case Analysis

...AUGUSTINE MEDICAL, INC. CASE ANALYSIS THE BAIR HUGGER PATIENT WARMING SYSTEM I. Factual Summary: * The United States does not currently have an established warm-air technology blanket market. * The Bair Hugger Patient Warming System product is not a consumer device. The main users of this product consist of businesses and hospitals. * Hospitals will always be provided funding necessary to prevent hypothermia and other diseases; as a result a demand will consistently be common. * Augustine Medical, Inc. is using a push strategy. They are relying on distributors to push their products on to their prospective buyers. * Approximately there are 5,500 hospitals that have operating rooms and postoperative recovery rooms. * The target market for the product is hospitals with seven or more recovery room beds. The target market makes up 80% of all surgical operations in the United States (26,155 recovery beds). * It was stated that there are 21,000,000 surgical operations per year in the United States which 60 to 80 percent of these become hypothermic. Thus, on an average, 14,700,000 patients (21,000,000*70%) suffer from postoperative hypothermia. * The firm projected that one system would be sold for every eight postoperative recovery room beds. According to the firm’s research, the market could allow around of 3,269 heater/blower units to be sold (26,155 recovery beds/8). * By subcontracting the heater/blower unit, the company......

Words: 1762 - Pages: 8

Premium Essay

Ethics

...the new company anyway. To incorporate the good vs. evil on this case is simple, because the good or what should be, is her staying with her current newspaper chain, making less money and complying with her morality, and evil would be her first instinct, and also what actually happens, in many cases, is the columnist going with the other chain, the chain that pays more money, even if it means she isn’t being morally correct. I believe both Augustine and Aquinas would decide against the columnist living her current newspaper chain, because the both believe that ethic is doing what is morally correct, fighting against human nature, or adapting human nature to what is correct, and also being conscious of our decisions. “Conscience is where Thomas Aquinas began to depart from theological ethics through the discovery of reason as Aristotle used it. Aquinas observed that conscience operates in all cultures and without direct connection to the religious faith of a troubled person” (Lecture for Week 2) An airline pilot goes for his regular medical checkup. The doctor discovers that he has developed a heart murmur. The pilot only has a month to go before he is eligible for retirement. The doctor knows this and wonders whether, under these unusual circumstances, she is justified in...

Words: 672 - Pages: 3

Free Essay

20th Century Philosophy

...ethics to a more “holistic” way. Nussbaum argues something that many philosophers before her built their philosophies on, the idea of “justice” and how one should go about living a “good” life. For Augustine in particular living a completely just life goes hand in hand with having complete order in your life. Nussbaum argues that the “good life” in a way makes people oblivious and vulnerable to what the world truly has in store and could negate their “human flourishing”. Augustine’s’ philosophy takes account of Nussbaum’s ideas the most because he basically objects to any notions of the good life, Augustine recognized that no object can be good or bad, but our will as humans is what takes a good thing and then makes them bad. He believes that the reason evil even exists is because humans are not perfect. Augustine of Hippo also known as St. Augustine was an early philosopher who’s philosophy paved the way for what is now Western Christianity, one if his most important pieces of work, “City of God” is still read widely today. He influenced Western Christianity greatly because he believed that all Christians should be pacifists but at the same time he also asserted that one should always defend themselves and others especially if authorized by a legitimate authority aka God. Augustine is a strong believer in Natural Theology which is the idea that nature is created by God and all things in nature are good because God only creates good things, but that is when you get the......

Words: 872 - Pages: 4

Free Essay

Test

...Like the psalmist, we wait for God to heal our broken hearts and anguished souls. We wait for God to mend broken relationships and ignite new relationships. We wait for God to enter into our earthly situations and alter them so that we have more happiness and peace. We wait for God to rescue us from our trials and tribulations. We wait for God to save us from ourselves. You might consider: what are you waiting for God to do in your life? St. Augustine (354-430), who is arguably the most influential Christian theologian in the history of Western Christianity, writing over 400 letters, books, and sermons, and serving as a Bishop in an influential part of northern Africa during early Christiandom was waiting for God to change his heart. Before he became a great spiritual leader, when Augustine was a young man, he was a very successful orator, and he loved the praise and admiration he received from the people. He also loved women and caroused in many illicit affairs. God’s Spirit was at work in him though because on the one hand, Augustine loved women and praise and debauchery, and on the other hand, he did not feel good about his behavior and he wanted to make...

Words: 1290 - Pages: 6

Free Essay

Thomas Aquinas

...THOMAS AQUINAS Introduction Saint Thomas Aquinas is one of the most famous saints of the Catholic Church. He is called a 'Doctor of the Church' and was a theologian, and philosopher. His parents sent him to a monastery when he was five years old and his teachers were surprised by how quickly he learned and his great faith. But when Thomas announced that he wanted to become a Dominican, his family tried to stop him. His brothers captured him and locked him up in a castle. His mother, sister and brothers kept him there for two years. Thomas was a very big man with a kind and humble manner. Because he didn't talk very much, people thought he was stupid and therefore called him 'the ox.' When they heard him preach, however, everyone realized how wise Thomas really was. After he became a priest, Thomas studied in Paris and taught at universities in many cities of Europe. He wrote more than 40 books and several beautiful hymns. All of his work praises God and helped many people understand faith better. At the end of his life, Saint Thomas stopped writing and he had a vision of Heaven. Because of this experience, Thomas decided that compared to the great glory of God, his writing was 'like straw.' Three months later, on his way to see the Pope, he died. Thomas Aquinas’ Early Life and Eduacation He was born in Italy in 1225, the son of a count. When he was five years old, his parents send him to study with the Benedictines of Monte Casino. There, and later at the......

Words: 2468 - Pages: 10

Premium Essay

Bible

...Academia Adventista del Oeste Is Jesus really just a copy of pagan myths? Andres D. Laboy Bible Class September 2, 2015 Introduction A lot of people criticize the Bible, Jesus and Christians, they speak blasphemies and every one of those people are wrong. I’ll be here saying what I think of the video, I’ll do it because it’s sad that they don’t accept the truth and look for other things. They twist things around. Body So is Jesus really just a copy of pagan Myths? No, of course not, Jesus is the real thing. There is history, there is proof that he existed. Pagan myths are myths for a reason. Myths aren’t real. People relate Jesus with pagan myths because they are similar but they aren’t accurate, they are not real. Like one of the pagan gods that people relate to Jesus is Krishna. The myth goes that Krishna was born of a virgin, but her parents had children before her and so the myth goes on. These myths just contradict themselves and different cultures have different views of them. Not like Jesus, Jesus is seen like himself, like a true person. Another pagan god that is similarised with Jesus is Horus. Saying that Horus has the same story, that he was born from a virgin and was baptized. That he became savior of humanity. Horus story maybe similar to Jesus but, its just not real; again myths are myths for as reason. There isn’t any proof he actually existed, there isn’t any actual evidence, but Jesus does.......

Words: 364 - Pages: 2

Premium Essay

How Convincing Are Butlers Claims That People Have an Innate Sense of Right and Wrong?

...How convincing are Butler’s claims that people have an innate sense of right and wrong? Joseph Butler was a bishop in the Church of England. He believed, similarly to Aquinas, that we have a God given ability to reason through the use of our conscience. Benevolence is, according to Butler, the natural tendency of all human beings. In dramatic contrast to what Freud would say from a modern perspective, Butler would argue that we are all essentially good. This is the foundation for Butler’s argument that we have an innate sense of right and wrong from our god given conscience. Hence, since we say that we are all essentially good self-love comes as one of the many ways to show such goodness as highlighted by Butler in his book “15 Sermons Preached at the Rolls Chapel”. We as innately benevolent people will want to help others as one of the many ways to show goodness. Butler also believed that human beings have two rational guides to behaviour: enlightened self-interest and conscience. Conscience helps the selfish human become virtuous and so provides a balance between these two tendencies. Butler, although believes we are essentially good people, doesn’t deny the fact that we have feelings and passions but says that it is our conscience and its god given sense of right and wrong judges between these passions as the “moral approving and disapproving faculty” and we therefore act proportionately according to our conscience. Overall Butler argues that each human has a direct......

Words: 639 - Pages: 3

Free Essay

Apologetic Methods

...According to Groothuis, various apologetic systems have proved useful, even though the best apologetic method must squarely face its limits. Even though a thorough and wide ranging apologetic is surely needed today, apologetics is bounded by at least three realities. [1] First, the Bible is a long, ancient and sometimes perplexing book for contemporary people. Defending what the Bible teaches is not a simple task and it certainly does not admit of a formula. We should realize that all our intellectual endeavors, especially those dealing with the broadest and deepest questions of life’s meaning, will be dogged to some degree by misunderstand, ignorance and intellectual disappointment. To hold that the Christian worldview is the best rational explanation for the things that matter most does not imply that we have a lock on all the best arguments or have attained all the truths we need. [2] Second, apologetics is limited not only by the difficulty of the subject itself, but by the weaknesses of the subjects who practice it which is us. We commend and defend Christianity through our speech, our writing and our demeanor. If we fall short as apologists, this does not mean that Christianity is untrue or irrational, or that all our efforts are vain. Our job is to faithfully give the best arguments possible from the purest heart possible. [3] Then lastly, apologetics must be understood within the framework of God’s secret councils. God often does not tell us how or why......

Words: 335 - Pages: 2

Premium Essay

Aquina and Augustine

...Aquinas and Augustine Essay Individuals have their personal view of human nature and the ability to know “the good” and do “the good.” Augustine and Aquinas have their philosophy on human nature and the ability to know “the good” and do “the good.” Human nature is how we perceive the life of a human being and the characteristics that” make up” an individual. The ability to do well and know good depends on the individual and the goodness of God. Thomas Aquinas was one of the most important world Christian theologians that lived in the middle ages. He created his philosophy of human nature. Within his perception of human nature, he considered the true perception of human nature. In Aquinas’s Summa Theologian, he expresses what it’s like to be human or the essential features. Based on his views he used characters of human being to define humans. Character exist in all human beings. According to Aquinas, to be a human being has physical and mental unit factors. This means that to be human there must be a body and soul. A human is not made up of more of each factor, it is equally united to form a human being based on Aquinas perception. Soul is considered to be the principle of life in a human being. All humans have a soul and a body but none are alike. Although some of them are similar. Before Aquinas made his perception of human nature, he took in consideration Aristotelian conception of souls. This means that Aquinas considers a soul to be “the first principle of life in...

Words: 858 - Pages: 4

Free Essay

Dealing with Death

...Augustine Dealing with Death “A Friend’s Death” in the book “Confessions,” written in Hippo in 397, pretty clearly identifies what this portion of the text encompasses. The excerpt begins with Augustine’s recurrence of confusion with God; watching his friend suffer so intensely makes him wonder why God doesn’t divinely intervene to end his misery. This leads to a reflection on his recent dark days and more ambiguity with God’s presence. While unconscious, Augustine’s friend receives a baptism that Augustine is sure he would not have preferred if mentally present. With this in mind, Augustine pokes fun of it when his friend comes to, which is seen as repulsively unforgiveable, and threatens to end their friendship. Not long afterwards, the friend passes, which leaves no time for reconciliation for the two. This leads Augustine descending into a deep depression where constantly reminders of his loss lie and ultimately his only relief is found through weeping. Although this time period was extremely devastating to Augustine in the moment, do you think the reborn St. Augustine looks back on this memory as more of a weight off of his shoulders than a devastating loss while writing the selection? In the beginning sentences of the selection, Augustine goes into detail about the diminishing condition of his ailing friend. He goes into depth when describing his friend’s pain, stating that he was “convulsed with fever, lying insensible in a lethal sweat and given up for......

Words: 1007 - Pages: 5

Premium Essay

Encouragement of Bible Verses

...Be courageous in the Lord – Walk with Him Joshua 1:9 “…Have I not commanded you? Be strong and courageous. Do not be frightened, and do not be dismayed, for the Lord your God is with you wherever you go.” 1 Kings 8:57 The Lord our God be with us, as he was with our fathers. May he not leave us or forsake us Psalms 25:1-5 O you, O Lord, I lift up my soul. 2 O my God, in you I trust; let me not be put to shame; let not my enemies exult over me. 3 Indeed, none who wait for you shall be put to shame; they shall be ashamed who are wantonly treacherous. 4 Make me to know your ways, O Lord; teach me your paths. 5 Lead me in your truth and teach me, for you are the God of my salvation; for you I wait all the day long. 1 Corinthians 15:57-58 But thanks be to God, who gives us the victory through our Lord Jesus Christ. 58 Therefore, my beloved brothers, be steadfast, immovable, always abounding in the work of the Lord, knowing that in the Lord your labor is not in vain. Ephesians 2:10 For we are his workmanship, created in Christ Jesus for good works, which God prepared beforehand, that we should walk in them. Philippians 1:6 And I am sure of this, that he who began a good work in you will bring it to completion at the day of Jesus Christ. Remember to let your light shine Psalms 1:1-3 Blessed is the man who walks not in the counsel of the wicked, nor stands in the way of sinners, nor sits in the seat of scoffers; 2 but his delight is in the law of the Lord, and on his law he......

Words: 1979 - Pages: 8

Premium Essay

Augustine Of Hippo Religion

...Augustine of Hippo, around 410 AD, created a work to explain to us why earth will never be able to live up to the heavens. He sets up two cities, an earthly city, modeled after Rome, and a heavenly city. In the earthly city, the people are always uneasy even though they have achieved much. “The rich man is anxious with fears, pining with discontent, burning with covetousness, never secure, always, panting from the perpetual strife of his enemies, adding to his patrimony indeed by these miseries to an immense degree, and by these additions also heaping up most bitter cares.”(362) In the heavenly city though the people have little, they have peace and family. “That other man of moderate wealth is contented with a small and compact estate, most...

Words: 1001 - Pages: 5

Premium Essay

Manichaeism Research Paper

...Finding the Truth: Manichaeism and Augustine Manichaeism was a common religion in the time when Augustine was alive (from 354-430 A.D). The religion was founded by Mani (216-276 A.D.), a Persian philosopher who taught his followers about gnostic based cosmological dualism and self-enlightenment that had certain Christian aspects. Augustine, in pursuit of religion and ultimately meaning in his life, started practicing with the Manichees. Augustine was a susceptible target of the teachings of Manichaeism. A philosophical gnosticism like Manichaeism was so appealing to Augustine because it offered a new found wisdom that was centered around self fulfillment and wisdom, whereas Christianity deterred him because it emphasized humility and self-sacrifice....

Words: 1211 - Pages: 5

Premium Essay

John Calvin's Predestination Theory

...John Calvin John Calvin was born in 1509 and he died in 1564. He sought salvation through intense theological study, and at some point he experienced a sudden conversion and grasped Protestantism. He came up with the term predestination. According to John Calvin, predestination was the doctrine which attempts to describe justification as the decision and act of God alone--an act based upon no external determinants, but only on God's own, divine decision. John Calvin also defined his doctrine of predestination in opposition to differing views held by his contemporaries. First, Calvin took up the view that God predestines people according to his foreknowledge of their works. Second, Calvin took up the view that God elects some but condemns none. I would have to agree to John Calvin’s predestination theory. I would agree with John Calvin because since the blood of Christ covers all sin, then predestination, in the sense of being chosen by God to be his people only by his grace and not by works, applies, through Christ, to everyone. It is received and enjoyed only by those who accept it in faith, but it applies to everyone. When it comes to assurance of salvation, we trust in God who justifies the ungodly, which we are. We are saved by grace alone, not by our works, so our assurance rests in the sure word of the God of free grace. Here is what we know, then, by the testimony of Jesus Christ, to be certain: God loves us, and we do not have to fear that we won’t be saved. He saves......

Words: 529 - Pages: 3