...this is a project that will require more option for a new look in order to continue with the projected look of the new facility. Trinity hospital must open up the options to thinking of the advantages and disadvantages of buying, building or leasing a property around the current area or to the current facility. Every option comes with their advantages and disadvantages when dealing with the financials, possible upcoming development, desired space, and compatible with current standing orthopedic services centers. The option of building the Physical Therapy center should be examined first. Recently the CFO of Trinity Hospital sent an email stating that the construction cost would be $120 per square foot for the 5,000 square feet needed for the center. In total this amount is estimated to the cost of 600,000 in order to build on the property. This option has the advantage to be the sole owner of the property giving them all the rights to daily operations without anyone overseeing them and making sudden changes. The hospital would be totally responsible for everything versus leasing the property. One of the key disadvantages and risks is that the CFO explains that the facility has run out of space to extend on the site of the facility. This option may not be the best option but the risk and benefits must be considered in order to determine the best option to recommend. The next option is for the hospital to buy and put the center adjunct to the hospital. The CFO has stated...
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...Acquisitions (M&A) 2 Exporting • Advantages – Avoids the substantial costs of establishing operations in the host country – Achieve experience curve and location economies • Disadvantages – High transportation costs, esp. for bulk products – Tariffs – Divided loyalties of local agents 3 Licensing • An arrangement whereby a licensor grants the rights to intangible property to another entity (the licensee) for a specific period, in return, the licensor receives a royalty fee from the licensee. • Intangible property: patents, inventions, formulas, processes, designs, copyrights, and trademarks • Advantages – Licensing firm does not need to bear the development costs and risks – Make use of intangible property that a firm possesses that they do not want to develop itself 4 • Disadvantages – Does not give a firm tight control – Limits a firm’s ability to coordinate strategic moves across countries – Difficult to control its technological know-how— Opportunistic Behaviour of Licensee 5 Franchising • Similar to licensing, but franchising involves longer term commitment and insisting strict rules on licensees • Franchiser assists franchisee to run the business on an on-going basis. • Franchiser receives royalty payment, which amounts to some percentage of the franchisee’s revenues 6 • Advantages – Relieved of many costs and risks – Bearing of costs and risk gives incentive to franchisee to build...
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...consists of tangible assets such as investment in real property, precious metal, gems, antiques, stamps, coins and work of arts. Real Asset vs Financial Assets Types | REAL ASSETS | FINANCIAL ASSET | Characteristics | Tangible asset/physical capital that generate income | Claims of organization sell in order to finance their financial needs t | Advantages | * It can be used to produce goods and service s * Owning a real tangible asset that has both investment and aesthetic value | * It has an efficient market for trading * High liquidity * Easy to transfer ownership | Disadvantage | * Lack of an efficient and limited market * Hard liquidate * High commission charged | * Must go through broker (middleman) to get access into the market | Example | * Real property ( house, land, machine, gold, antiques) | * Shares, bonds, certificate of deposit ,unit trust, commodity, derivative instruments | Savings * Form of fixed investment where principal amount and terminal amount is known. ADVANTAGES | DISADVANTAGES | * Provide security * Earn interest on savings * High liquidity | * Earn low income * Hard to maintain the savings because too easy to withdraw | Unit Trusts * An investment institutions that was set up to raise funds from small investors who are interested in participating in the security market. ADVANTAGES | DISADVANTAGES | * Small capital * Less risk * High liquidity * Need not to worry about managing...
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...friend, where length of loan, interest rate on loan and any other terms of the loan must be negotiated between parties. Advantages of a loan from family/friends is lower interest rates and more flexible repayment terms. Disadvantages of a loan from family/friends is lack of clarity with amount borrowed (the interest rate and the required payment terms) and also borrowing from friends and family can fracture relationships on a personal level Suitability Good Long or Short term finance option as terms of loan are decided between parties Interest rates are decided by parties Could be suitable source for Douglas Pty Ltd if family or friends have suitable amount of money for business and terms can be decided without affecting relationship. Bank Overdraft: Loan made by a bank in which the customer can withdraw more money from his or her bank account than has been deposited in the account. Advantages of bank overdraft is that it is a quick and flexible source of finance. They are easy and quick to arrange, with little fuss and It allows you to make essential payments when you need to borrow money. Disadvantages of bank overdraft are the costs as overdrafts carry interest (often at much higher than loans), Recall, the bank can recall the entire overdraft at any time. Security for overdrafts may need to be secured against your business assets, which put them at risk if you cannot meet repayments. Suitability Suitable for short term finance to pay back small amounts of money such...
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...operations. What are the advantages and disadvantages of each method? The strategies PrimeCo considered to enter the international market are the following along with the corresponding advantages and disadvantages of each strategy. a. Exporting – defined as the marketing of goods produced in one country to another. It is considered to be the easiest way of entering foreign markets. Exporting can be either indirect or direct. In general, the advantages of exporting are: i) manufacturing is home based, hence it is less risky that overseas based, ii) gives an opportunity to “learn” overseas markets before investing in bricks and mortar, and iii) reduces potential risks of operating overseas (FAO, 1997). Some of the disadvantages are: i) limited profit potential, ii) company gains no market information, or experience in new markets, iii) plants may not be located in low cost locations, iv) high transport costs, v) tariffs tend to be highest on finished goods, and vi) loss of control as markets are distant form production (http://uwf.edu/rsjoland/12%20Market%20Entry%20Strategies%20as%20Used%2004%201.pdf). b. Licensing – method of foreign operation whereby a firm in one country agrees to permit a company in another country to use the manufacturing, processing, trademark, know-how or some other skill provided by the licensor. The following are the advantages and disadvantages of this strategy. Advantages | Disadvantages | 1. Provides opportunity to low risk manufacturing relationships...
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...must have the support of the directors for any major overseas venture. What arguments can she offer to explain why SewTex should become active in the international markets? She understands that making a commitment is important but what does that really mean? SEWTEX exports about 5 percent of its production of industrial machine, of which, the most sophisticated industrial machines go to German & Swiss textile firms, whiles its earlier models are sent to India, Pakistan & Brazil. There is currently some concern about the US Textile industry which has been slowly declining. In this case, the objective is to increase the company’s turnover, which means SEWTEX has to exports more & be the main actor on foreign market. Major commercial advantages for SEWTEX to be active in the international market: * First, it is an opportunity to dramatically increase their sales. * Increase profitability, the extent of the export price which can generate sufficient margin and the profits will grow. * Gain of notoriety worldwide * Better understanding of the competition * Better using of their production capacity. For example if SEWTEX is not working at full capacity and if its facilities are under-utilized, it will increase its production through exports * Boost business * Exporting can bring a breath of fresh air in the business and allow to leave behind any bad habits and improve on new strategies, thus, positive consequences will be saved in the working methods...
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...Running head: SERVICE LINE DEVELOPMENT Business Summary for Trinity Community Hospital Orthopedic Service Line Development Background Information Trinity Community Hospital, a 150-bed hospital with 20 operating rooms and an emergency department on a 25-acre campus, is a community-owned hospital located in a growing community in the southeastern U.S. with a population of 400,000 people in the city and 900,000 in the county. The community is made up of high tech business and industry as well as retirees. It is home to several colleges and a university. The hospital is 25 years old and the campus is comprised of the main hospital with four medical office buildings (MOBs). There are two primary competitors within a 10-mile radius of Trinity which are both private, not-for-profit medical centers. Also, there is a nationally recognized medical center approximately 60 miles from Trinity however this facility is not considered a competitive threat. Numerous specialties with a broad range of medical/surgical services are represented on the hospital staff and all physicians are board certificated. Trinity Community Hospital also boosts of its full Joint Commission accreditation, newly remodeled, modern patient rooms, award-winning dietary department, expert nursing staff, and the highest patient satisfaction scores in the region. Trinity Community Hospital is governed by a six-member Board of Trustees. The board members come from diverse backgrounds but each has a vested interest in the...
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...Running head: PURCHASING A HOUSE RISK PAPER Purchasing a House Risk Paper Keller Graduate School of Management Project Risk Management PROJ 595 Dr. Susan Orr August 04, 2013 Purchasing a House Risk Paper INTRODUCTION The many advantages to owning a home have been well publicized. However, the above satistics make it clear that owning a home is not without risk. To form a complete picture, you, the prospective buyer, need to consider the potential risks and disadvantages of home ownership as well. Understanding these disadvantages beforehand will give you a better chance of minimizing their impact and avoiding the fate suffered by these homeowners. RISKS IDENTIFICATION There are many risks in buying a new house such as: • The opportunity cost of investing in an alternative investment is very high because the entire cash and future income stream is tied up into one asset a home, which may or may not appreciate. • The house is an undiversified investment, so if the market tanks as it has, game over. • Knowing that we do not own our home, the bank does. • A lot of cost connected to home ownership, such as repairs and insurance and fees and potential hazards I have not considered. • If I lose my job, game over, this will put a lot of stress on me. • There is a chance that your new home will lose value. Luckily, in general, the longer you own your home, the less likely a loss becomes. Loss of value is typically a short-term problem, possibly due to the local...
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...Amt Task1 Service Line Development Running head: SERVICE LINE DEVELOPMENT Business Summary for Trinity Community Hospital Orthopedic Service Line Development Background Information Trinity Community Hospital, a 150-bed hospital with 20 operating rooms and an emergency department on a 25-acre campus, is a community-owned hospital located in a growing community in the southeastern U.S. with a population of 400,000 people in the city and 900,000 in the county. The community is made up of high tech business and industry as well as retirees. It is home to several colleges and a university. The hospital is 25 years old and the campus is comprised of the main hospital with four medical office buildings (MOBs). There are two primary competitors within a 10-mile radius of Trinity which are both private, not-for-profit medical centers. Also, there is a nationally recognized medical center approximately 60 miles from Trinity however this facility is not considered a competitive threat. Numerous specialties with a broad range of medical/surgical services are represented on the hospital staff and all physicians are board certificated. Trinity Community Hospital also boosts of its full Joint Commission accreditation, newly remodeled, modern patient rooms, award-winning dietary department, expert nursing staff, and the highest patient satisfaction scores in the region. Trinity Community Hospital is governed by a six-member Board of Trustees. The board members come from diverse backgrounds but...
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...biotechnology. The business and technology each sector possesses has both unique characteristics and similar characteristics. Examining five of these sectors: Vertically integrated biotechnology company, biotechnology start-up company, Contract Research/Manufacturing Organizations (CRO/CMO), Fuel biotechnology and Agri-biotechnology we can see what the unique properties each of these sectors have and what they share with each other. Vertically Integrated Biotechnology Company Vertical integration is the replacement of transactions in the marketplace with internal transactions within the company. Vertical integration is the result of mergers acquisitions of other companies that once supplied the parent company. It allows the company to control the economy of its products. The use of this business model has led to many advantages and disadvantages within the biotechnology industry. Vertical integration of biotech companies has offered many advantages to the growth of not only the business but also the growth of the technology offered by the company. However, growth through integration can also have many disadvantages. By examining both we can see how vertical integration plays a part in the growth of a biotechnology company. The vertical integration model has been around for many decades. Biotechnology companies apply this business model to grow and strengthen the business of the company. Vertical integration allows companies to control products from raw materials to...
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...1. What are the major differences between capitalism, communism, and socialism? The mayor differences between these type of economies are that, capitalism is a free market system, were most of the factor of production and distribution are privately owned. Although government get involved into some issues and decide minimum wages and such. “People under free-market capitalism have four basic rights: 1) The right to private property, 2) the right to own a business and to keep all of that business’s profits, 3) the right to freedom of competition and 4) the right to freedom of choice (Nickels, pg. 35, 36)”. Socialism is an economic system where basic business should be owned by the government, in that way profits are distributed evenly on society. Even though the socialist system has more equality, taxes are higher, so usually bright and hard work people leave that society for a capitalistic one. Taxes are so high that most of the times is hardly any profit left. Communism is a politic and economic system where the government has control of the economy and the factors of productions. Basically, communism control almost every single aspect of people life. People, under this kind of system, is not motivated to work hard because government take almost all of their profits. 2. Discuss the three major economic indicators and how they are indicative of our current economic climate. The three major economic indicators are: Gross domestic product is the total value of final goods...
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...RAMT Task 1 Kristina Compton Service Line Development Trinity Community Hospital New Orthopedic Line Business Summary The following is a summary of advantages and disadvantages of building, buying and leasing space for the new orthopedic line at Trinity Community Hospital. Included in this summary, is the option I recommend and my basis for this choice. When considering building, buying or leasing space for the new orthopedic service line, one must consider current trends in healthcare. Hospital construction continues to struggle to recover from years of unfavorable economic news. As hospital building activity has spend the last few years under the shadows of Wall Street’s financial meltdown and Capitol Hill’s health reform debate, industry planning, design and construction professionals found themselves riding out an extended down market (Hrickiewicz, 2010). Construction costs for building the space is estimated at $600,000 (5,000 square feet @ $120 per square foot). The advantage to this option is the potential for the building to increase in value resulting in increased equity for the hospital. Additionally, the hospital would retain total control of design and modifications to the building. In a leasing scenario, any modifications would require landlord approval. Also, Trinity Community Hospital would have the ability to lease any excess space within the building to others to generate additional revenue. Costs for purchasing the...
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...export may trigger protectionism. The main characteristic of direct exports entry model is that there are no intermediaries. Advantages: * Control over selection of foreign markets and choice of foreign representative companies * Good information feedback from target market, developing better relationships with the buyers * Better protection of trademarks, patents, goodwill, and other intangible property * Potentially greater sales, and therefore greater profit, than with indirect exporting. Disadvantages: * Higher start-up costs and higher risks as opposed to indirect exporting * Requires higher investments of time, resources and personnel and also organizational changes * Greater information requirements * Longer time-to-market as opposed to indirect exporting * Indirect exports Indirect export is the process of exporting through domestically based export intermediaries. The exporter has no control over its products in the foreign market. Types: Export trading companies (ETCs), Export management companies (EMCs), Export merchants, Confirming houses, Nonconforming purchasing agents Advantages * Fast market access * Concentration of resources towards production * Little or no financial commitment as the clients' exports usually covers most expenses associated with international sales. * Low risk...
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... Share issue is the stock that the company sells publicly, in order to generate capital and it can also be the stock given to insiders as part of their compensation package. The amount of shares issued can be all or part of the total amount of authorised shares of the corporation. Hire purchase, is where monthly payments are made for use of equipment such as a car. Hired equipment is owned by the buyer after the final payment Leasing, is when monthly payments are made for use of equipment such as property. Leased equipment is rented and not owned by the buyer. A mortgage is a special type of loan for buying property, where monthly payments are spread over a number of years. Trade credits, this where suppliers deliver goods now and are willing to wait for a number of days before payment. MARGET JOBE Grants from charities or the government to help businesses get started, especially in areas of high unemployment. It does not have to be paid back. MARGET JOBE ADVANTAGES OF EXTERNAL FUNDING THROUGH: Bank loans/ over...
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...Account Options> SOLE PROPRIETORSHIP: A sole proprietorship is best defined as an unincorporated business that is owned by only one person, this is the most common and simplest business to create. There are several advantages to a sole proprietorship these include that all of the management and decisions rest with one individual, all of the profits belong the business owner and the owner can utilize these profits as deemed necessary without consulting any other party and that all of the income is taxed as personal, so the owner only has to worry about one tax liability. Along with the advantages there are also several disadvantages these can include limited financial and professional resources along with unlimited liability for debts related to the business. • LIABILITY – With a sole proprietorship the business owner is responsible for all of the assets and debts of the business. In the event of a failure creditors can come after both personal and business assets. • INCOME TAXATION – The business owner and business are taxed as one entity, all of the profits are treated as personal income. The business owner can reduce some of the taxable income by writing it off as a business expense. • LONGEVITY – Without adequate planning the business could cease to exist with the death of the business owner. There must be extensive legal and financial planning for a business to survive in the event of the owner’s death. • MANAGEMENT – The owner has full control over all...
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