Nurse leadership is an essential ability for healthcare professionals that improves cooperative work to achieve common goals. It is accompanied by developing necessary qualities for the job: compassion, integrity, communication, emotional intelligence, respect, team-building, and open-mindedness. The authoritative and confident medical professionals obtain an eight-week course dedicated to revealing their passion for caring for patients, improving necessary behaviors, and positively impacting the healthcare world.
Every week the nurse studies material and practices on patients to enhance the effectiveness of the medicine. During the first week, professionals focus on the significant core competency, patient-centered care (Finkelman, 2019). No wonder, nurses work with patients from different backgrounds who demand high-quality care. Thus, nurses learn to identify and respect patients’ differences, values, and preferences when helping them. Each trainee works with two patients and tries to justify treatment with a person’s individuality. Finally, the nurse situates himself in a patient-centered organization, engaging in dialogue with the patient.
The following week, nurses learn to develop positivity towards their work through the Appreciative Inquiry education model. This model discovers the positive potential of organizations and develops it. Nurses are asked to design a perfect workplace, hospital, or community. They work on an appreciative mindset for how positive leadership might operate in different contexts within healthcare (Waterworth & Jacobs, 2021). They aim to move from inconclusive attempts to correct things to focus on positive outcomes. Thus, AI teaches them to reflect on decisions and stimulate their work.
With their round-the-clock care, nurses should also have mental health therapies to heal after work. The third week of the course concentrates on teaching nurses how to relieve their stress. As a report by the International Centre on Nurse Migration figures out, many nurses have heavy workloads (Raso et al., 2022). Consequently, they experience stress and burnout. Moreover, the fact that they were at higher risk of being infected with COVID-19 is also stressful. Thus, after completing this week’s tasks, they are expected to learn to relax after long-term workloads.
Nurses in the healthcare system must constantly reinforce knowledge about medications and treatments. In the following two weeks, they briefly but clearly, analyze all the systems in the body, their connection, and the treatment of each disease. Primarily, they pay attention to urgent cases, such as global pandemics. As a result of these lessons, they refresh empirical knowledge that will help them during accreditation. They pass the test, including diagnosis and planning, to evaluate their progress.
The goal of the next two weeks is to enhance team care for the patients and teach nurses to transmit knowledge. For example, they train nursing assistants for walking rounds during shift change and demonstrate their knowledge of a simulated patient (Bakerjian, 2022). It strengthens the role of a nurse as a medical leader in developing the healthcare system. A nursing assistant, his mentee, rates each professional’s work.
In the final stage, nurses share their experiences with patients. They accurately explain their diseases and encourage the person in their treatment. Improving nurse-patient dialogue to share knowledge and promote healthcare in the community is essential. If a patient starts to communicate with professionals in an open manner easily, then the nurse achieves his goal of team-building and communication. This process checks the nurse’s understanding of the course and increases the patient’s acceptance.
During the eight-week course, nurses improve their roles as counselors, managers, educators, providers of care, and researchers. They expand their medical knowledge, engage in a constructive dialogue with patients, and pass through mental health therapies. Their work is evaluated by peers, patients, and mentees. Moreover, they complete the tests to show a comprehensive understanding of the course. This eight-week course significantly improves the healthcare system through the highly prepared nurse leaders.
Introduction to the APN Professional Business Plan
Business concepts and business development are rarely included in nursing education. The elements are missing both at the undergraduate and at the Masters level (Buppert, 2011). For a business venture to succeed, it is important for one to formulate a plan for it. Planning is crucial to any venture regardless of the field. The plan addresses, among others, aspects to do with the assessment, identification, and initiation of interventions. In addition, implementation and evaluation are equally significant in any business plan, especially for a clinical nurse practitioner (Buppert, 2011).
The current paper is written against this background. In the paper, the author proposes how an Advanced Practice Nursing (APN) practitioner can develop a business plan. The plan is intended for a Family Nurse Practitioner (FNP). The author of this paper will identify the various elements of a conventional plan, both in the business and in the healthcare field. It will encompass identification of relevant principles stipulated in any strategic plan. They include vision statements, mission statement, and market analysis. The proposal will also entail industry analysis and marketing strategy. Operation plans, anticipated registrations, and financial cash flows will form the foundation of this business proposal. The name of the proposed business is Middle Town Family Care.
Profile of the Proposed Business
MiddleTown Family Care (MTF), an Iowa limited liability corporation (LLC), will engage in offering healthcare services in the community. It will provide both primary and educational healthcare services. Time will be a critical aspect in this business. Depending on the level of services required, each client will be attended to for at least 30 minutes. Unlike normal healthcare centers, which allocate 10-20 minutes per client, MTF will make sure that the patients are fully assisted.
The clinic will be involved in the provision of services that include differential diagnosis, treatment, prevention, intervention, and therapeutic measures. The services will be availed in a holistic manner, taking into consideration the client’s cultural background and other unique traits. Education is a key component in APN practice. To this end, the clinic will provide education on self-care to individuals who want to know about their personal health status. They will be helped to make the necessary changes in their lives (Garoll & Mulley, 2009).
The practitioner will spend most of their time educating clients and their families. They will engage in the provision of psychosocial and physical care, laboratory work, prescription, as well as examinations. There are other services provided by APNs, and these will be catered for in the proposed practice. Annual examinations, childcare, female health, and school healthcare programs will be initiated. Screening services and management of diseases are also part of the proposed venture. The services will be affordable and will suit different lifestyles of the people living in Iowa.
Under normal circumstances, nurses are not trained to become entrepreneurs. They are not intended to start and run their own businesses. The situation notwithstanding, Buppert (2011) identifies over 56 business concepts that are vital in the management of primary care practices. Some nursing colleges offer elective courses to students in efforts to attain their entrepreneurial potential. There are very few core courses that address the issue of business plans. The elective courses offered in colleges include budgeting, marketing, and development of business plans. However, these subjects are not offered in all colleges, creating disparities in APN business knowledge. According to Buppert (2011), it is paramount for the APN to have substantial knowledge on healthcare finances and accounting. The proprietor of the proposed business will take advantage of the elective courses they took in college to manage the new venture.
DeNisco and Barker (2013) are of the opinion that nursing skills are easily transferable between this profession and business ventures. The skills can be used to transform entrepreneurial undertakings. DeNisco and Barker are of the opinion that nurses operate in troubled environments in most cases. As a result of this, most APNs have developed considerable customer handling skills. The attributes are very fundamental in business management. The skills learnt in class will be used to run the proposed practice.
Proposed Vision Statement
The vision statement of the MTF Nursing Center is:
To provide high quality and world class healthcare services to the residents of Iowa and surrounding areas.
The nursing center will be a leading provider of medical care in Southeastern Iowa. It will set new standards in offering compassionate and responsive care to the clients. The vision statement captures the desire to administer comprehensive primary healthcare services to individuals from infancy to adulthood. The FNPs to be employed are equipped with the knowledge to manage various illnesses like obesity, bronchitis, high blood pressure, and other chronic maladies (DeNisco & Barker, 2013).
The practice will offer educational services that include information on disease management and prevention. According to the American Psychological Association [APA] (2010), FNPs make significant contributions to the healthcare system by offering services to the under-served population. The clinic will do this to the residents of Iowa.
Proposed Mission Statement
The following is the mission statement for the proposed practice:
To improve the health of Iowa residents through the provision of excellent patient care and medical innovation services.
In collaboration with the client, the FNP will provide healthcare services that are informative and accessible to people of all ages. To achieve this, the management will value the time, skills, and expertise of members of staff. The management will provide fair living wages for the employees (APA, 2010).
Key to Success
The following are the aspirations that will guide the proposed business:
To offer family oriented medical care.
To provide fair pay and an elaborate staff structure to reduce dissatisfaction increase client turnover.
To hire skilled staff and equip the facility to offer continued medical services, especially with regards to intensive care
Proposed Process of obtaining all the Anticipated Registrations
There will be various legal certifications needed for the business to start operating. They include Central Contractor Registration (CCR). The license requires all organizations to do business with the federal government. Acquiring this certification ensures that any initiative from the federal government is communicated to small businesses.
Clinical Laboratory Improvement Amendment (CLIA) certification will be acquired immediately before the business starts to operate. The aim is to maintain the recommended laboratory standards. The MTF will also acquire the Marketing Partner Identification Number (MPIN). The number will facilitate collaboration with other organizations operating in this field. The National Provider Identifier (NPI) and Taxonomy Registration North American Industry Classification System (NAICS) will be acquired on a contractual basis. They will be renewed after every two years. Commercial and Government Entity (CAGE), Dun and Bradstreet Number (DUNS), and Employer Identification Number (EIN) will be acquired after the first year of MFT’s operations.
Proposed Service Delivery Charter
Marketing Plan
The target group will be the family community in Iowa. Since the group is very small, the market strategy should be very specific. Advertising using media like television is not applicable. The reason is that this medium is expensive. In addition, residents of a given area may come from diverse backgrounds, making it hard to provide messages that are specific to the heterogeneous group using television. To address this problem, print media will be used.
Billboards will be displayed in strategic positions. Advertisements will also be placed on local dailies. Weekly newspapers will be used to promote the FNP business. Some gas stations permit business owners to advertise in their premises. The proposed business will take advantage of this. In addition, the practice will sponsor a weekly column in the newspaper to promote public health. The articles contained in these columns will act as additional promotional measures.
In the first fiscal year, MFT operations will be funded using loans and personal investments. Additional funds will be acquired from government grants. In the long term, the business will sustain itself.
Proposed Staffing
The business will acquire 6 trained FNPs, a CEO, 3 cleaners, 1 messenger, and a receptionist. The management will include Advanced Practice Registered Nurses (APRN), an FNP, and a Certified Nurse’s Assistant (CAN). The board of governors will include qualified practitioners from community and state hospitals. Legal and certified accountants will be acquired on contractual terms.
Marketing Plan, Economic Feasibility Analysis, and Business Strategy
In most cases, healthcare systems focus on the provision of treatment services. Prevention services are availed in the peripheries. Garoll and Mulley (2009) have developed guidelines and objectives for healthcare organizations. According to Garoll and Mulley, some objectives include educating the public on diabetes and other chronic conditions. The proposed business will exploit these opportunities.
In Iowa, reported cases of obesity and other life threatening conditions have been on the rise. In some counties, it is approximated that over 10,000 individuals are suffering from diabetes (APA, 2010). In spite of this, there are very few certified diabetic practitioners in the country (Garoll & Mulley, 2009).
Management and Operational Plan with Proposed Organizational Chart
The APN entity is viewed as a limited liability corporation. Based on this, the proposed business will enjoy the benefits associated with tax waivers. In addition, the business entity can accommodate more partners in the future. The Chief Executive Officer (CEO) will be charged with the responsibility of making decisions. As already indicated, there will be an APN provider. The following is the envisaged organizational structure:
Figure 1. Proposed organizational structure for Middle Town Family Care.
The hospital will be housed on a space of about 600 square feet. An additional space of 300 square feet will be acquired with time. The structural design will require a ramp for wheelchairs. The doors will be wide enough to enhance movements. The spaces should be adequate for the navigation of wheelchairs. The facility needs to have adjustable furniture to accommodate the height of the CEO and other employees.
Operational goals and objectives are very important for the success of the proposed business. Long term objectives include the provision of healthcare services to families in the region. Short term goals will help in the achievement of long term aspirations (Porter-O’Grady & Malloch, 2011).
Conclusion
In this paper, a business plan for MiddleTown Family Care was provided. Background information was provided to enhance the success of the proposed venture. A nursing practice is just like any other business. As such, planning for such an undertaking will require one to take into consideration the various elements involved in running a conventional business. The elements were identified and analyzed in relation to the proposed practice.
References
American Psychological Association. (2010). Publication manual of the American psychological association (6th ed.). Washington, DC: Government Print.
Buppert, C. (2011). Nurse practitioner’s business practice and legal guide (4th ed.). New York: Jones and Bartlett Publishers.
DeNisco, S., & Barker, A. (2013). Advanced practice nursing: Evolving roles for the transformation of the profession (2nd ed.). New York: Jones and Bartlett Publishers.
Garoll, A., & Mulley, A. (2009). Primary care medicine: Office evaluation and management of the adult patient (6th ed.). Philadelphia, PA: Lippincott Williams and Wilkins.
Porter-O’Grady, T., & Malloch, K. (2011). Quantum leadership: Advancing innovation, transforming health care (3rd ed.). Sudbury, MA: Jones and Bartlett.
This is a business plan for a 300-bed community hospital with a hundred physicians and twenty surgeons. There is a new space in the hospital that will be turned into an outpatient surgery center. This business plan explores how this outpatient surgery center can be designed and the number of patients it will take and its strengths, weaknesses, threats, and operations.
Market Analysis
The main marketing mix for this center includes people who need surgery. This can include people who have traumas such as broken bones or lacerations from emergencies (Ambulatory Surgery Centers in the US…, 2016). It can also include orthopedic and cataract surgery and other surgical procedures such as tumor removal (Ambulatory Surgery Centers in the US…, 2016). The center will be able to handle the surgical needs of many patients with its twenty surgeons and other employees in place for nursing, sterilization, and rehabilitation. Many of these patients will be referred by the hospital, allowing for the patient flow to include patients that the hospital does not have the time to care for.
Trends
The outpatient surgery center is a perspective direction of modern medicine. Plenty of operations that previously required a long hospital treatment are now done in outpatient conditions for one or several days. The popularity of ambulatory surgery centers is huge (Boodman, 2014).
They have been rising in popularity since the 1970s (Ambulatory Surgery Centers in the US…, 2016). But there are many concerns about the legitimacy and safety of such centers following the death of Joan Rivers, who was undergoing treatment at such a center in Manhattan (Boodman, 2014). These safety concerns can be assuaged by proper certification for the center as well as highly qualified staff overseen by the hospital’s large surgery staff of twenty surgeons. The supervising staff can prevent violations of accreditation that led to Joan Rivers’s death (Boodman, 2014).
The paramount mission of the center for outpatient surgery is the extension of health care opportunities for patients providing surgical treatment quickly, efficiently, and in a comfortable environment. The reduction of the time and cost of the treatment occurs due to the use of high-tech equipment and minimally invasive techniques (Al-Amin & Housman, 2012). Therefore, the center for outpatient surgery is an effective clinical and organizational direction of development for modern medicine and public health. The patient flow should be optimized by minimizing the waits and delays.
Licensing
Any medical activity is subject to compulsory licensing. To obtain a license, the potential outpatient surgery center should have an appropriate space, a list of necessary medical equipment, and staff with valid certificates (Mercier & Philip, 2009). The consideration of the application takes place within two months. The license applies only to a specific address. The difficulty lies in the fact that each health care service requires a separate license. A specially created registry can maintain the necessary documentation, registration, in particular, temporary disability materials, regulate the flow of the primary flow of patients, receive calls as well as manage the implementation of hospitalization and the solution of transportation issues.
Employees
Employees needed per operating room include one RN, one scrub tech, four pre-op RNs, four post-op RNs, two registration clerks, one custodian, two sterilization clerks, and a receptionist with knowledge of medical billing and coding. All employees must have proper training and licenses in their fields (Accreditation Organizations, 2016). The center itself must maintain standards set by the American Association of Accreditation for Ambulatory Surgery Facilities, HFAP, and Accreditation Association for Ambulatory Health Care (Accreditation Organizations, 2016).
The American Association of Accreditation for Ambulatory Surgery Facilities measures and monitors medical competence, Accreditation Association for Ambulatory Health Care uses peer-based measurements to accredit facilities, and HFAP surveys hospitals for quality of care and medical competence (Accreditation Organizations, 2016). The outpatient center must provide care and have certified and licensed employees able to provide the quality of care needed for these organizations to approve the center for accreditation so that it can be a trusted and safe source of healthcare.
Aspects of meeting physician needs on both the surgery center’s performance and that of the main operating room in the hospital should also be thoroughly considered. To avoid any misunderstanding, it is essential to provide investigations and elaborate on a uniform standard of health care provision.
Training and Certification
Advances in technology, globalization, and constant organizational transformation are forcing medical centers and their employees to learn and acquire new skills in developing new business models to work with new technologies. In order not to lose their competitive edge, medical centers have to constantly increase the pace of acquisition of necessary knowledge and skills. Such a need pushes the center’s management with a dilemma: on the one hand, employees need more training hours, but in the framework of constant change, the number of hours devoted to training is strictly limited. In this connection, the surgical learning is the best solution to the problem.
Using this approach, the maximum efficiency will be achieved through the training of specialists empowering the development and implementation of short and narrowly focused lessons that are required for surgeons and employees.
The basic idea of surgical training in this business plan is based on the fact that employees do not need comprehensive training concerning the new technology or program (Maruthappu, Duclos, Lipsitz, Orgill, & Carty, 2015). However, they need to learn more specific aspects related to the current operation. The reduced content should be transformed into short courses that are fast to develop and easy to use. Short training programs are more easily integrated into the working schedule of the staff. The attendance of training courses will be increased by the fact that the programs are short and more interesting. As a result, one will receive the progressive ambulatory surgical center with trained and certified staff.
Construction
Construction factors are another large consideration. Constructing a new space will include the cost of construction. But it will also include zoning and bringing the building up to code according to city requirements. The design of the building must make it very handicap accessible since many patients may be in wheelchairs or will be after surgery. Parking should be ample and easy to access for patients (Boodman, 2014). The design of the outpatient surgery center should follow the overall design of the hospital as a part of it. All the rooms should be equipped with special chairs and other utilities necessary for the pre- and post-operation periods.
The number of operating rooms should be approximately seven to provide timely surgeries. At the same time, the center should include physician space, in other words, changing rooms, workspace for paperwork and staff space such as changing rooms. It is also important to point out that the creation of a break room for relaxation will reduce the stress level of employees. Its design should be performed in green as such color contributes to the pacification and comfort.
The billing system should be organized appropriately to guarantee the calculating costs of medical services queries to the insurance companies and their processing. The center should be attached to the hospital to ensure timely health care services and control of the post-operational period.
Equipment
The equipment of the center for outpatient surgery will allow providing virtually the entire spectrum of surgical operations from the day surgery category. In particular, the following equipment is necessary to provide the appropriate treatment:
endoscopic equipment for endosurgery;
holmium laser that was previously inaccessible under the conditions of ambulatory operations to treat diseases of the bladder wall using it as a laser scalpel;
ultrasound devices in both the operating and observation rooms;
medical facilities including apparatus for RFA and EVLT, heart monitor and/or a pulse ox meter, blood pressure monitors, ventilation apparatus, defibrillator, operating table, medical couch;
consumables: disposable kits for the operating field, intravenous catheters, gloves, etc.;
sterilization equipment;
medicines according to the profile of the medical center;
anesthetic equipment, equipment tracking, monitors, and others will ensure the high-quality of operations using all the possible kinds of general and local anesthesia. For example, equipment installed for the anesthesiologist and expert classes will include the anesthesia-breathing apparatus of Draeger.
Daycare chambers will be equipped with functional beds, Ventilator Puritan Bennett 560, and oxygen concentrators. The installed equipment will allow monitoring the condition of the patient transmitted from the operating room and to react promptly to any deviation from the norm.
Expenses
The main costs for the implementation of the business plan will relate to equipment and facilities as well as the medicine purchase. When planning costs, the fact that the center will be inactive during the licensing period should also be taken into account. Staff costs related to wages include the monthly labor costs of personnel and tax rates. Capital expenditures include the following expenses:
The building of premises for the outpatient surgery center, design, and repair facilities;
Licensing;
Equipment, furniture, air-conditioning, and ventilation system.
Fixed costs related to the work of the center will comprise:
Production costs include the cost of materials for the surgery complex, repair costs, clothing for staff;
Administrative and office expenses such as utilities, current expenses for office supplies and materials for office equipment, security alarm);
The total labor costs;
Constant marketing costs.
Also, electricity, thermal energy, and other resources should be considered while planning costs.
SWOT
Strengths
A significant strength would be its attachment to the hospital. Many patients express misgivings about going to ambulatory surgery centers because they are not “real hospitals,” like the fears expressed by Wendy Salo (Boodman, 2014). Being attached to a hospital with such a reputable staff of surgeons can help ease the concern of some patients. It can also provide more outpatient services with a hospital affiliation (Ambulatory Surgery Centers in the US, 2016).
One of the most important advantages is the unloading of hospital beds by transferring part of routine surgical interventions in terms of health centers, which operates in the hospital structure. At the same time, the organization of early discharge of patients from the hospital with subsequent follow-up care in the clinic would benefit both the center and patients (Merrill & Laur, 2010). All patients will be placed in the superior chambers equipped with modern facilities and are under round the clock supervision of qualified medical staff so that they will feel comfortable and calm. Moreover, the postoperative complications in the surgical day hospitals are on average less than 1 percent (Carey, Burgess, & Young, 2011).
The quality of operations in the outpatient surgery center is defined by experienced surgeons and nurses. Comparing volumes of the main operation room with those of the outpatient environment, one might note the increased capacity of the latter.
What is more, one might note such advantages as follows:
reduction of wait times of patients. Outpatient surgery centers have shorter wait times and fewer budgetary constraints (Ambulatory Surgery Centers in the US, 2016);
the release of specialized surgical hospital beds for the treatment of clinically complex patients;
the same surgeon holds the complete continuity of the examination and treatment of patients – preoperative preparation, surgery, postoperative treatment until the patient’s hospital discharge;
patients stay at home in a habitual environment (Grisel & Arjmand, 2009);
active lifestyle contributes to the rapid recovery;
reducing the probability of in-hospital infections and thromboembolic complications in patients;
significant financial savings (ASCs: A Positive Trend in Health Care, n.d.).
Weaknesses
The primary weakness is its affiliation with a hospital. While this is a strength, it doubles as a weakness. Another weakness is the need for the center to be constructed. Construction costs, zoning, and time are all involved in the construction process, which can be a weakness for the center.
Operations
The content of operations of the ambulatory surgery center is determined by the variety of forms of its activity:
The outpatient center is part of the overall hospital, but it will be its separate entity (Pickles, 2015). This means that the center will have its financial statements. It also requires a deep understanding of the regional health care delivery system to provide legally and ethically sound care (Pickles, 2015).
Selection of patients with surgical diseases among the population including the workers and employees of industrial enterprises, institutions, and other organizations;
Implementation of permanent relationships with the clinics and dispensaries;
Clinical diagnostic study of supervised patients using modern methods and equipment;
Consultative reception of patients of surgical clinics and dispensaries for the selection of patients requiring surgical treatment; definition of the indications for surgery, preoperative examination, the scope of the operation, and capabilities;
Diagnostic use of invasive techniques, the performance of operations according to the approved list, the observation of patients operated on in the next few hours after surgery in the recovery room of the hospital, day surgery follow-up treatment at home;
Comprehensive treatment of patients with surgical diseases including drug and infusion treatment, the use of extended wear bandages, physiotherapy, plasmapheresis, medication blockade, and the necessary range of rehabilitation measures (Starr, 2012);
Organization of follow-up care for operated patients for timely implementation of the necessary therapeutic and preventive measures to prevent disability and reduce its period. Research and comprehensive assessment of the short- and long-term results of the surgical treatment and the development of evidence-based recommendations.
Further training of surgeons and nursing, training of graduates of medical institutions.
Threats
The main threats include competition with other hospitals and other centers. This can especially be an issue with a large amount of distrust people feel for outpatient surgery centers (Boodman, 2014). Competing with other organizations can entail providing the best care possible. It can also involve providing a more comfortable and compassionate environment that will be memorable to patients in their difficult and often scary times of receiving surgery.
Initial capital requirements are one of the biggest threats facing ASCs (Ambulatory Surgery Centers in the US: Market Research Report, 2016). Being part of a hospital can help this center establish the capital needed to get started. Still, it will be a major financial endeavor.
One of the other project risks is associated with possible changes in the financial situation in the country due to the influence of internal or external factors. One more threat category may include a possible increase in costs and timing on the establishment of the center’s services or a possible reduction or increase in prices for services.
The probable management risks are related primarily to the inability of managers or a team to implement the project objectives and to achieve goals set in the business plan. The reduction of this type of risk is largely determined by the effective selection of personnel. To reduce this type of risk, it is possible to use the potential of an employment agency as well as the use of the resource business consultants, who have extensive experience in implementing projects.
Other risks include all kinds of risks of natural disasters, other force majeure related to property damage, and clients’ lawsuits in connection with human error. The above risks are easily minimized through insurance mechanisms. Based on the foregoing, all of the project risks can be regarded as moderate which is quite acceptable for the successful implementation of this business plan. Finally, taking into account all the above issues, it seems possible to implement the business plan within half a year.
References
Accreditation Organizations. (2016). Ambulatory Surgery Center Association. Web.
Al-Amin, M., & Housman, M. (2012). Ambulatory surgery center and general hospital competition. Health Care Management Review, 37(3), 223-234.
Carey, K., Burgess, J. F., & Young, G. J. (2011). Hospital competition and financial performance: The effects of ambulatory surgery centers. Health Economics, 20(5), 571-581.
Grisel, J., & Arjmand, E. (2009). Comparing quality at an ambulatory surgery center and a hospital-based facility: Preliminary findings. Otolaryngology – Head and Neck Surgery, 141(6), 701-709.
Maruthappu, M., Duclos, A., Lipsitz, S. R., Orgill, D., & Carty, M. J. (2015). Surgical learning curves and operative efficiency: A cross-specialty observational study. BMJ Open, 5(1), 1-7.
Mercier, D., & Philip, M. (2009). Is Your Ambulatory Surgery Center Licensed, Accredited or Certified? ASA Monitor, 72(8), 10-14.
Merrill, D. G., & Laur, J. J. (2010). Management by Outcomes: Efficiency and Operational Success in the Ambulatory Surgery Center. Anesthesiology Clinics, 28(2), 329-351.
Pickles, V. (2015). Strategic Planning for Your Surgery Center. Ophthalmology Management.
The type of event that our event management company would like to organize is a connoisseur’s collection of oil paintings on nature by the celebrated global artist, of Indian origin, Maqbul Fida Husain on contemporary natural scenic beauty. The concept would be based on places in India and abroad renowned for their picturesque scenery. M. F. Husain ranks as one of the top grade painters not only in India but in the world. “One of the most celebrated and internationally recognized Indian artists of the 20th century; he has also received recognition as a printmaker, photographer, and filmmaker” (Maqubal Fida Husain 1915).
Name of Event
The name of this exhibition would be Indian Picasso on Natural Scenic Beauty. The dates for this exhibition would be from April 01, 2010, through April 30, 2010, at the Grand Gallery in IL Bottaccio, London between 10.00 AM to 6.00 PM. This Grand Gallery is one of the hugest rooms in IL Bottaccio. It is a 300 sq/m room with amazing white walls and large windows that is known due to the famous exhibitions of Giorgio Morandi, Arturo Martini, and Gio Pomodoro (Grand Gallery). All invited people get a wonderful chance to enjoy the beauty of the exhibition and the building itself. Proper lighting, magnificent ornamentation, and high ceilings – all this helps to attract visitors’ attention and make them memorize this event forever.
Essentials Concerning the Budget
Nature
Description
Amount (£)
Send
Install
Return
A.
Artist/curator/consultants costs, travel, and expenses
Loan, licensing, and reproduction fees
Equipment servicing
Packing materials
Art transportation
B. 1. Installation and construction 2. Acoustical materials and installation 3. Electricals and lighting 4. Graphics 5. Documentation and photography
The target audience would be the intelligentsia of London’s population who have some knowledge about fine arts and paintings and who could interpret the richly woven tapestry paintings of M.F. Husain. The target audience would also be people who have dabbled themselves with paint and brush and are among the lesser-known yet aspirant painters in this country. Thus all famous and popular people not only in the fine arts but also others who wish to imbibe some pleasant moments regarding Husain’s work would be invited. Besides, there would be admission fees for visiting this art exhibition and it is expected to host a large turnout during the 30-day tenure of this exhibition in London. Concerning the celebrity artists in London, it is also proposed to invite them and other famous dignitaries including leading political figures who could spend their time on this exhibition. This exhibition would be widely publicized through the local media, television channels, newsletters, and the British Council in London. Also, handouts would be made available to the local populace through the Public Distribution System. It is believed that the distinguished painter himself would be available at the inaugural ceremony and would also have a Meet the Press session on April 1, 2010, at the venue. During these interactions, Husain would discuss his paintings with the media, press, distinguished artists, and the general public. People would be able to establish a firsthand communication system in person or video-conferring with this great painter and celebrity.
Besides, the British Council in London could also offer its services for promoting this exhibition in this country. The main goal of this project is to depict the paintings of this great artist in its pure sense. This event will enhance the commercial growth for its promoters and organizers through the sale of such paintings and also make the event highly successful in terms of turnout. It is expected that during this exhibition at least 1.5 million people would visit this gallery and view the paintings exhibited there. The theme is uncontroversial and is suggestive only about scenic beauty in art, the goal of this project could be met with sustained publicity, information to the public and the invitees about the Art Exhibition and its content value, and finally, driving home the point regarding the artistic and connoisseur value of Husain’s works and impact on the art-loving people of London.
Marketing Campaign
The marketing campaign for reaching the target audience for this art exhibition would be as follows:
Appointment of a marketing consultant for overseeing the publicity and advertisement of this show so that it reaches the length and breadth of this country.
Issue of posters and flyers in public places at least 14 days before the event takes place.
Use of public shows like stage theatres, cinema houses, and other art-related public places for creating awareness regarding this show.
Planning distribution of invitations to special invitees, guests, and VVIP’s to gain their support for this cause. Discussions and deliberations with publicity agents and marketing consultants on how the entry for the public could be co-ordinated and well-structured to accommodate people coming for this exhibition.
Gain the help of the British Council and other like-minded groups for creating favorable support for this show. Notices in the BC and other public locations could also be made.
The Internet could also be used for mobilizing support for this show. Invitations to selected people could also be done through the internet and web-enabled services.
Promotional campaigns in selected public gathering places like hotels, restaurants, chain food stores, etc could also help in creating favorable conditions for this show and its eventual success through mass appeal.
Targeted Community
A certain portion of the proceeds from this exhibition could be used for charitable purposes and this could generate better mass appeal for it. Besides, if this art exhibition of Husain also seeks the audience of other world-renowned artists to honor this show with their presence, it would be good. This would also, to a certain extent, remove the competitive elements that may threaten to vitiate the good relations between these eminent artists among themselves. Besides, while this could be seen as a solo event of this maestro, in the future this could underpin major joint works of such famous artists.
Logistics Design
The entire logistics strategy for the event would be in terms of the following:
Selecting the venue and arrangement for the paintings to be transported safely to this place
Arrangement of the display, ease, and convenience of the viewers to see the images
Security for the costly paintings and security personnel to maintain the premises around the clock
Need for knowledge guides who could discuss and negotiate prices for these paintings
Arranging for insurance of these work of arts and proper security measured during the period of insurance.
“Allow delivered work to remain in packing materials for 24 hours to adjust to the museum’s climate. Do a careful condition report on each piece as it is unpacked. Arrange for additional security guards if needed” (How to organize an exhibition 2010).
After the exhibition is completed, the pieces must be returned in excellent condition. It is also necessary that the costs should be borne according to the covenant and agreed on principles.
Safety Regulations
The main risks would be through acts of vandalism or destruction of these precious works of art. There are also fears that the originals may be removed and cheap imitations are put in its place. Besides, losses caused by fires, storms, and natural calamities cannot be ruled out.
By far the most important aspect would be about thieves and criminals breaking into the premises and stealing the valued objects de-arts. To prevent this, 24-hour-round-the-clock protection to these paintings must be done. Besides, visitors should not be allowed to touch these oil paintings, which may damage them, also the threats of vandals and terrorist attacks cannot be ruled out.
All entrants must undergo a security check at the entrance.
The paintings should be strategically placed so that visitors cannot handle them.
Guides and security should be available along with these works.
Only authorized personnel would be allowed to have direct access and handle these paintings.
Proper documentation of paintings coming in, going out, transit security arrangements, and handling should be ensured.
Contingency Plan
A Contingency Plan is developed for a particular situation when things could go incorrect. Contingency Plans are developed commonly by the government or the business. Contingency Plans include strategies and actions for a certain transaction with precise variances to assumptions resulting in a situation, or emergency incidents. In event management the contingency plan has 3 main benefits, they mainly identify the risk involved, categorize the measuring tools, and analyses the roles, responsibilities, and goals of the individual and group. “A plan was drawn up in advance to ensure a positive and rapid response to a changing situation. A contingency plan often results from scenario planning and may form part of an organization’s disaster management strategy” (Business definition for contingency plan 2010).
Event Contingency Plan for Art Exhibition
DATE: 01.04.2010
START TIME: 10 AM
END TIME: 6 PM
VENUE: Grand Gallery in IL Bottaccio, London
Introduction
The art exhibition that is conducted in the Grand Gallery of IL Bottaccio, London
The oil paintings by renowned artists are exhibited.
Command and control
The command is done by the manager named Mr. Smith; he has the command over all the events that are done in the art gallery.
Safety Officer
The safety officer is hired for 1 month to take care of the safety measures and to install the fire protection systems.
First Aid Co-ordinator
The first aid coordinator is hired from the nearby dispensary, the coordinator is hired as a precaution measure from any accidents.
Police
The police have a vital role in the international level exhibition in case of any chaos by the mob or any theft is done in the exhibition hall.
Communication
The proper communication has to be done between the employees, organizers, and the coordinators, the communication should be so effective to make the event a success.
Traffic management Plan
The traffic police are very necessary to give different directions to the car parking and to avoid the traffic block.
Media
The media plays a vital role in communication and in providing vast coverage to the public; worldwide.
Legal Framework
The events must have broad public liability insurance and legal advice. Depending on the event, duration, location, and timings the planning schedule have to be needed under the local governing authorities. The discussion with the local governing body includes the planning to be conducted in the early stage and to consider the necessity of the planning permit, about the license issued and the fee required, the discussion with the stakeholders. The conveners are generally to discuss the proposal with the nearby business or any affected parties before lodging the permit application.
The event planning, hosting, approving, and implementation involves the support and the cooperation from the stakeholders to the organizing committee to the sporting association to the local government and the other consent authorities including the police departments and the legal rights organizations. The support from the local government can be obtained in terms of the social, economic, and environmental benefits, in the promotion of the business and the creation and development of the infrastructure development. The local governing body for the performing right was established and the rights of the artists and composers were given much care. It is the mere responsibility of the event co-coordinator or the authorized person in the performance to keep in touch with the licensing authority to get the license or the permission for the conducting of the events. The licenses that are issued by the governing bodies differ depending on the type of event that is conducted.
The event that is conducted consists of the sale of the tickets with a license fee imposed, which can be increased depending on the total ticket sales. The event for the art exhibition is entry free, the license for such free events do not require any additional fees, once the initial license has been calculated.
Audience Feedback
Event planning starts with the strategies, goals, and specific objectives about the event. “First off, several questions must be answered. What is the vision and purpose of the event? What are some ways you can accomplish your goal? When is the best time to hold this event? How many people do you want to attend? Where can you accommodate the number of people at the time you want to hold the event? How much money will the event cost? How much money is available, and from where will it come? These are all questions that must be answered, but by taking them one step at a time, an effective successful event can be planned” (How to plan an event 2010). The plan of the event comes from new ideas and the vision that has stuck in the mind and from the insights. A proper analysis should be made to test the feasibility of the idea and if the idea is found feasible the legal policy and the agreements have to be checked with the local bodies. The budgeting of the event has to be considered and the fundraisers have to be identified. Finally, the proper resources required are to be allocated.
The organizing of the event should first choose the co-ordinator, who plays a vital role in the event, The co-ordinator is the important decision-maker in the event, The key areas that he should concentrate on is on the committees, sponsorship, and the program design. “Try to design your event so that it will catch people’s interest. Include an interesting speaker; a film or video; something fun such as an outdoor activity; maybe a potluck; a “gimmick” or symbolic action; etc” (How to organize & promote an event or meeting n.d.). The organizing committee has to appoint the committee members and each of the members should be given a certain task. Each member should be responsible for the task assigned to them. The organizing committee is responsible for fixing the date and time. They should be keen on fixing the date as it should not clash with any other important events. The venue should be fixed by the organizing committee and it should be at a convenient location for the public. The mailing list and the list of the invitees have to be made and the media that have to be included in the exhibition are considered. The list of the ancillary items which are to be kept in reserve has to be found out. Also, the organizing committee must take care of the travel, comparing, catering, volunteers, gifts, directions, security, and name tags.
The hosting of the event is to publicize the successful event in flying colors. The main idea behind the hosting is the publicizing of the event. The event has to get the attention of the public in all means; to make it a big success. The hosting of an eye-opening event is the way to give the chance to the general public about the efficiency in the planning and the organizing. The credit for hosting the successful event is to the organizers and the committee members.
The feedback is essential for any event that is conducted. The feedback helps the organizer in knowing about the events and how the event was effective and the certain areas that needed improvement. The event management has provided feedback from the people during the exit. They have to fill a form; where the form will consist of the majority of the close ended questions where you rate the event management, on the following: “circle the appropriate number that reflects your opinion. 1 indicating excellent and 5 Indicating poor” (Event management feedback from- town center management- Brunel tower n.d.).
Peculiarities of the Event: Waste, Efficiency, Impact
The process can be measured by certain methods and techniques. The common methods of evaluating the success are by gaining qualified event leads and boosting up the product and service awareness. The new technique used in the quantifying approach is clearly defined and the main intention is to create the strategies that deal with the questions like when what, where, and which.
Other methods in measuring the success are by the online event solution, the measurements will be able to deliver the precise opportunities of the event. The online event management solutions ensure the capturing of the event data and measuring the success of the company.
The Rate of Interest calculations (ROI) and the expense to revenue are also useful in measuring the performance of the event. The Business to Business (B2B) plays a major role in getting feedback from the people through different sources like emails, advertisements, websites, and calls. The kind of response from the public helps to know the success of the event conducted.
The implementation of sustainable practices in the event can reduce the impact of the events in various activities, making the event much sustainable and beneficial. The events can be made more sustainable by the reduction of the expenses to a greater extend. By reducing the paperwork; many of the expenses can be reduced and the documentation can be done by electronic means.
The sustainable event emphasis the organization’s values and it gives intimation about the impacts of the environment and the ability to take action. With a proper plan; sustainable initiatives like the No Waste policy creation, the impacts can be reduced by the energy directly consumed. On the planned event, the exhibitions can play a major role in the success of the event. The different guidelines can be provided by the event that encourages the sustainability factors by reducing wastage.
In the promotional methods, mainly electronic advertising has to be encouraged. Banners, cards, etc are to be made from the recycled materials. Send the different confirmations electronically. The onsite materials and other accessories can be purchased from a nearby place to reduce transportation costs. The catering service has to be keen on sourcing locally grown organic food products, to avoid the packed drinking water, the disposal of the plastic containers, and to promote the use of renewable containers. The food containers should be recyclable.
Reference List
Business definition for a contingency plan, 2010. BNET. Web.
Event management feedback from- town center management- Brunel tower, n.d. Web.
Education is not what it used to be. Quantum leaps in technology have made current teaching methods redundant and ineffective. Like everything else, automation and artificial intelligence is replacing and enhancing the traditional student-teacher model rapidly. Smart Education is breaking new ground in providing an entirely new unique educational methodology and safe environment. In “Smart Education” a specially developed intelligent software system could be used for a new teaching methodology and artificial/machine intelligence. This methodology will require no private tutoring as it will provide a dynamic learning environment that automatically tailors itself to the life-long development of each individual pupil. Classrooms will be individually designed with a class size of 12 pupils. Each class would be served by a highly experienced, specially trained teacher assisted by a dedicated teacher helper. All classrooms will be equipped with a computer work-desk for each student, a local area network, multimedia projection and a CCTV system. Smart Education is not meant for academics only. It will also provide children access to the world’s most advanced, child-safe electronics lab system, music room, dramatics, yoga, karate, football, basketball and other physical training aids. Smart Education will provide parents with a 24 hours asynchronous contact with their child’s progress, the supervisors, the co-supervisors, their teachers and other supervisory staff over the Internet. You can even see your child working in the class at any time over the internet or an internet enabled mobile phone. Thus the word ‘Smart ’ in this context comes from the rapidly developing technologies termed as Artificial Intelligence and Machine Intelligence. Therefore the adjective ‘Smart’ implies a computer assisted system capable of observing, recording, and using experiences to improve performance and learn continuously.
Description of Venture
Mission: “To lay the foundation for the next generation, the scientists and the decision-makers are fully equipped with the knowledge and paradigm of 21st century yet equally policy aware and knowledgeable of their proud heritage of culture and tradition. Thorough this combination they must regain the coveted central position in human society, which their ancestors once possessed.”
The curriculum will be entirely different. The most important component of the new curriculum will be software and teaching materials which would be prepared specially for the Smart School students. Thus all the required materials used in the educational process of the school will be provided to every pupil from the school, the cost of which will be already included. This material will be a combination of books, some specially designed material for computer training and a large number of software containing lessons and tutorials etc.
On average, the cost of this specially prepared material is estimated at $100/- per student per month. In addition to this, each student will have unlimited access over the internet to all the major libraries (e.g. American Congress Library, Washington) from which they will be able to directly access and download materials in addition to what is provided in the school.
A very important function of a teacher in Smart School is to train the pupils in locating and utilizing information on the internet. This access to teaching materials, lessons, the internet will not only be confined to the class room, every pupil (and his and her parents) of the Smart School will be connected 24 hours to a virtual school provided over a virtual private network using a dial-up facility or a cable network.
In virtual school facilities, additional access is provided to lessons, tutorials, performance-statistics of students and direct contact to the class teacher. The pupils and their parents of the Smart School will remain in touch with the school constantly for 24 hours a day.
An equally important part of the operational plan for the curriculum would be to develop personality traits through intellectual activities as well as physical sports. Students will be encouraged to take part in sports as well as debates, chess competitions, intellectual quizzes etc.
The class environment planned for the Smart School would be completely different than that of a conventional school. Each pupil of Smart School will work on a specially designed workstation which will be equipped with a complete multimedia facilities, i.e. computer, sound system, projection system, wireless LAN, optical mouse, etc.
Special care would be taken to design these workstations to meet various economic and physical requirements. For example, “anti-radiation” flat screen monitors will be used to protect and safeguard the child.
A camera fitted on every workstation will always keep each child in focus and will be transmitting this picture over the LAN. Thus the class teacher, the principal and even the parents of the child may view what a particular child is doing at any point in time during school hours.
In addition to this, the teacher workstation will be equipped with special software which would be specifically designed to continuously monitor the progress of each child along with the class statistics. Each class room will be equipped with an overhead projection system through which the teacher will be able to address all the children simultaneously to tutor all of them into a particular task or program. It is to be highlighted here that by very design of the Smart School, each pupil in the class will learn at his/her own speed where artificial intelligence built into the software will continue to motivate them individually to perform better. Thus no direct comparison between the individual students will be made or announced inside the class.
This will ensure that each child is able to follow his or her own “natural learning curve” without any stigma or undue pressure as happens in a conventional class room. This environment will also provide for the teacher to act simultaneously as a personal tutor to each pupil instead of a single class teacher addressing the entire class.
Most important classes would consist of a teacher and a teaching assistant. The average size of the class planned for the Smart School would be 15 students per class. This is to ensure that adequate personal attention is given to each student. In addition to normal classes, special classes will occur for special activities like arts, hobbies, hand-writing skills, music, debating etc.
The two top key school administrators will be (i) School supervisor, and (ii) The Academic Coordinator. Both these would be individuals with very high qualifications (from abroad) as well as experts in teaching methods overseas. The Academic Coordinator will be assisted by head teachers, special subject teachers and class teachers, etc.
Industry Analysis
Smart systems have been developed in almost all fields to assist and enhance the performance of a purely human system many times over. Robotics, medical diagnosis, surgery, genetics, astrophysics are a few examples where smart programs are becoming a common place.
To connect with various listeners, increase access to the collections of data and services, providing leadership, and adding value to the services through effective resource management Smart Education will provide evidence to be as a system developed to progress and impart education at levels that would have been simply not possible in existing conventional schools.
There are several examples in the recorded history that show a genius branded as a ‘dunce’ in his early childhood school. Elbert Einstein, Winston Churchill and Graham Bell survived educational stigma in early childhood to become people of historic abilities. A vast majority of such children have quite normal and sometimes, above normal capabilities which a classical school education system simply fails to detect or discover, thus relegating such children to the wilderness of “mediocrity’ or under-performers for the rest of their lives.
What is the main cause of this early stigmatization of children? How can one protect one’s dear one from such a destiny?
The main cause could be simply a large variance in the shape of the learning curves of individuals. Penrose, R. & Gardner, M. (1989) argued that some children learn simple things faster than others, but may not have above average capability to learn and master complex things. On the other hand some children take a lot of time and patience to grasp a very simple piece of knowledge.
Two effects could ensue whenever a child with a learning disability would sit in a conventional class where the teacher had covered the subject matter at an ‘assumed’ average rate of learning.
First the child begins to develop an inferiority complex leading to disinterested, and disruptive behavior. Secondly, the teacher completely misinterprets this ‘couldn’t careless’ attitude as a sign of inadequate learning capacity. The teacher often responds to such behavior with negative reinforcement. This self perpetuating degeneration ultimately results in serious consequences for the child leading to a permanent stigma. Thus one requires (i) a highly trained teacher who could detect the early symptoms of intellectual disinterest in a pupil and (ii) a system of teaching learning which could proceed at different rates. A smart school will be designed to achieve both of these objectives. In a smart school a computer takes over the role of a teacher whereas the teacher takes over the role of a facilitator.
Marketing plan
The heavy investment will be planned for the launching and promotion of the school e.g., $3.6 million for the very first year, followed by similar amounts in each subsequent year. These budgets will be used for publishing special supplements, regular articles containing a detailed introduction of a smart school as compared to a conventional school.
Major supplements will be planned for important dailies such as: “New York Times”, and other leading news papers. These supplements will also carry special messages from important personalities, e.g. President, Governors, Secretary of State etc.
In addition to this, supplements will carry informatory articles on different aspects of a smart school. An aggressive promotion will be planned through cable TV and other publications. These promotions will carry substantial informatory articles to prepare a child for the future and protects the academic career of the child against an early stigma and neglect which is a major problem in every conventional school.
A few seminars/symposiums would also be planned in the city where parents would be invited to the school premises, would be shown and demonstrated the difference between a conventional school and a smart school.
Operational Plan
The Smart School will certainly be of unique nature and will be the first of its kind. Therefore special care and planning would be required for its launching and promotion.
The plan prepared for this purpose will emphasize educating prospective parents on the advantages of the Smart School over a conventional school as well as reassure them that the Smart School will prepare their children for standard examination.
The second essential aspect of the operational plan would be the curriculum that has been designed for the school. The important aspect of this was stated by Scholkopf, B. and Smola, A. J. (1999) that in designing the curriculum, the most imperative item to remember is that the school plans to follow exactly the same syllabus which has been proposed by the state standards in the country.
However, the difference would be in the method of delivery and tutoring of the students. The smart school will have dimensions in education that would not be present in a conventional school curriculum.
Similarly the class environment planned for the Smart School would be very different than what exists for a conventional school.
Whereby emphasis of the class room environment of conventional school is imparting and retention of knowledge, the main emphasis in a smart school would be (i) the development of analytical capabilities, (ii) the training and education for gathering of information on a global basis and (iii) synthesis of all the gathered information/data.
Therefore, the Smart School’s basic aim will be to prepare scientists, managers and decision makers of the future. Finally, the staffing of the Smart School will have many aspects of the school which will be quite familiar, but at the same time would be quite different from a conventional school.
Firstly, all the teaching staff will make use of a computer on everyday applications such as (i) internet browsing, (ii) email, (iii) word-processing, (iv) spread sheet analysis, (iv) project planning etc.
Thus the background of the teachers per necessity would be such that they have acquired their own education in a commensurate environment, e.g. engineering, business management, accountancy, etc. The salaries and the conditions of services planned are commensurate with what is usually earned by such professionals at early stage of their careers.
Organizational Plan
In order to introduce the format proposed for a Smart School System, that is able to successfully capture the opportunities discussed above, it would perhaps be useful to show how it would be compared and differ from an existing conventional elite school. Waterman, D. A. (1986) provides an excellent insight into how scientific revolutions lead to paradigm shifts that completely alter the way human society behaves and works.
The Physical Environment envisaged for the proposed school system will consist of a fully air-conditioned classroom with one fully computerized workstation for each student. A computerized instruction-station would be occupied by the teacher and that each instruction/work station within the school will be connected to each other through an intranet. The school Intranet will be connected to the Internet. The instruction-station will be able to duplicate and view any workstation’s screen at will. The classroom will also be equipped with a digital Scratch pad, and an overhead Data Show facility. In addition to that each student will be required to possess a computer at home.
The School Intranet will also contain teacher portals and adequate ISP facilities.
Teaching Environment Envisaged for the proposed School System:
A teacher with at least a post-graduate or a professional (engineering etc.) degree, trained specialists in the use of computers as a medium of instruction. Inquiry based teaching methodology making extensive use of the Internet. Development of computer-based collaborative working skills.
Specific software acquired or developed specifically to impart instructions in a specific subject. An excellent and detailed treatment of the full impact and scenarios of the emergence of IT on human society is argued by Jang, J.S.R., Sun, C.T., and Mizutani, E. (1997).
Research by Waldrop, M. M. (1987) maintained that several research studies were evidence because computer-using students develop a much higher skill for critical thinking and problem solving Completely computer based instruction except for the development of handwriting skills.
Continuous evaluation and display of performance for the benefit of the parent through the web. Maintenance of comprehensive portals for students as well as for parents Student’s portals is designed to help student teacher contact after school hours. Parent’s portal is designed to maximize parent’s contact with teachers and school management as well as the ability of the parents to track and monitor their child’s progress in school contact with other schools on an International basis to cultivate and promote contacts between pupils of different schools over the Internet.
References
Scholkopf, B. and Smola, A. J (1999). Learn in with Kernels. Support Vector Machines. The MIT Press.
Waterman, D. A. (1986). A guide to Expert Systems: Addison- Wesley Reading, MA.
Jang, J.S.R., Sun, C.T., & Mizutani, E. (1997). Neuro-Fizzy and soft Computing: MATLAB Curriculum Series, Prentice Hall.
Waldrop M. M. (1987) Man-made minds: The Promise of Artificial Intelligence. New York.
Penrose, R. & Gardner, M. (1989). The Emperor’s New Mind: Concerning Computers, Minds, and the Laws of Physics (Popular Science): Oxford University Press.
The GCC society experiences an increase in the number of children with special needs. It is following such pressure that HKCSN feels the need to provide these individuals with the opportunity to exploit their talents. The initiative provides a partnership chance where brands can contribute to society through cultural learning and artistic programs. HKCSN is a Dubai based initiative, which targets children and families from different nationalities.
HKCSN is the first-of-its-kind entertainment and learning center in the GCC, and it offers a wide variety of services to children with special needs using modern technologies. Today, in less than a year since its inception, HKCSN has registered more than 500 members and delivered care to over more than a thousand clients, generating millions in revenues. With rapid demands, HKCSN intends to hire more specialists and improve the quality of services. This strategy is intended to position HKCSN as the number one brand in the GCC region for all nationalities and in support of Dubai as the therapeutic city by 2012.
Problem/Opportunity
For most families, entertainment, learning, and recreational facilities are the stuff of delightful childhood reminiscences, for instance, the first rollercoaster plunge. However, these facilities can also come with disappointment to many families, for instance, due to height or age requirements.
For children in the United Arab Emirates (UAE) with a disability or special needs, a visit to an entertainment or learning center or an amusement park may present more disappointments. Facilities for children in the UAE, including Children’s City and other public facilities, are not fully accessible to children with special needs, others with rare conditions, or others with mental or physical disabilities.
Nearly no facilities for children, for instance, rides are equipped with a special wheelchair for disabled children. Additionally, some kids with special illnesses may have more challenges with long queues or crowded areas, which are common instances in these recreational centers and learning facilities.
The idea for Happy Knowledge Centre for Special Needs (HKCSN) came about after looking across the UAE for facilities and places in which other special needs children could learn, interact, have fun, exploit their talents, and get the treatment they needed in childhood. HKCSN established that there was not much in the country. Although Dubai Park strives to be friendly for populations with disabilities, the facilities are not customized to meet diverse specific needs of users (Al Serkal 2014).
Some workplaces, parking lots, offices, buildings, or school areas in Dubai are at least somewhat friendly to adults with disabilities, but not for children with disabilities or special needs. Further, the same extent of consideration for offices and other areas has not been adopted into entertainment, recreational, and learning facilities for children with disabilities. For example, an inclusion program may be in place in some schools, but there are no teachers, and schools are not equipped to cater for such disabled children (El Sawy 2016).
HKCSN decided to offer solutions by providing a center where children with disabilities could learn, get entertained, and use their talent. They are accommodated and acknowledged by everyone. HKCSN is fully accessible to children with or without disabilities or special needs.
HKCSN opened in 2017 in Dubai, and it is the first and only facility in the Gulf region, which is 100 percent accessible to children with special needs and disabilities. HKCSN is equipped with facilities to meet the diverse needs of its target customers. Staff members possess their right skills to accommodate and be patient with users. The thinking was that a child in a wheelchair should have a similar experience as a walking child would have.
HKCSN recognized that a huge market exists in the Gulf region for this kind of experience. While it remains unclear how many children with special needs are in the UAE due to lack of statistics, numerous anecdotal accounts have shown that children with special needs are many in the UAE and their parents and guardians are gradually seeking for help from specialized facilities.
HKCSN understands that having a special needs child can take a toll on parents and guardians, and costs associated with raising such children is relatively higher than raising normal kids.
While the constitution protects all persons, many children with disabilities have been rejected across many facilities in Dubai with the claims of inadequate space or no specialists.
HKCSN strives to provide the best facilities to facilitate physical accessibility and usability. The facility is equipped with the best technologies, equipment, and qualified staff. Rules are generally favorable to enhance usability while offering maximum safety. The intention is to allow special needs children to interact freely, play freely, and with ease in a user-friendly environment. That is, HKCSN is a place where parents can take their special needs children because everyone comprehends what takes place with regard to learning, play, and interaction.
Dubai’s Vision 2021 is to be a therapeutic tourist city for all visitors and residents, and HKCSN wants to be a part of this vision by acknowledging several issues.
HKSCN recognizes children with special needs as part of the community. It prioritizes investing in them.
It sees entertainment and learning services as the rights of these children with special needs.
The initiative provides the opportunity to maximize the potential of the children with special needs.
Many people and organizations, including the Special Olympics, have engaged in providing various opportunities for the child with special needs.
Unfair Advantage
HKCSN derives it competitive advantage from its resources. That is, facility equipment, technology, and qualified staff.
At HKCSN, we believe any child’s unique abilities should be identified, developed, and celebrated. The facility is equipped with a wide range of equipment to support unique needs of children with disabilities and other chronic conditions. Every program has activities that are developed and tailored to meet the needs of every child served by altering strategies to accountant for all children, irrespective of their physical, cognitive, emotional, or developmental drawbacks. HKCSN designs these programs with the thinking that every child will take part, learn new skills, get entertained, and take on many more new challenges by concentrating on what every child can accomplish, rather than their weaknesses.
HKCSN relies on evidence-based practices to observe and aid certain targeted goals and objectives acknowledged by parents, caregivers, physicians, and/or teachers that are classified within the four domains. These areas include social activities and interaction, health, and hygiene skills, activities involving daily living and self-care and/or behavior strategies.
Some of the equipment currently installed at the facility include adaptive classroom seating; strollers; therapy systems; swings, special needs; bolsters/rolls; universal accessories; seating; balance bikes; bicycles and tricycles, special needs; gait trainers; standers; toileting / commodes; gross motor; and fine motor among others. Additionally, HKCSN has developed various activities, such as team building; arts and crafts; horseback riding; talent shows; parties; sports and games; guest presenters and entertainers; and nature programs. Further, all other outdoor equipment are also disabled friendly.
In creative programs, kids are encouraged to engage their natural instinct for invention. As such, HKCSN fosters adventuring in artistic world with a range of dynamic media, from clay, to paints, to crayons to paper, pencil, and glue among others.
For better outcomes, HKCSN offers a special needs child therapy derived from recreational therapy and sensory integration theory. The therapy uses recreation and other activity-based approaches to enhance cognitive, physical, social and emotional developments in children with special needs, such as autism, down syndrome, sensory processing disorders (SPD), pervasive development disorder (PDD), ADD/ADHD, and children with hypotonic (low muscle tone), and emotional and mental behavioral issues. HKCSN has also developed an intervention for kids who require individualized attention.
This unique intervention ensures one on one child to therapist ratio, while utilizing the user-friendly indoor playgrounds with other kids and families, resulting in a unique inclusive environment. The gym is particularly customized for therapeutic intervention for core strengthening, enhancing coordination, and development of gross and fine motor skills, as well as improving movement and gravitational challenges and sensory issues.
Some of the assistive technologies used at HKCSN include audio players and recorders; timers; reading guides; inflatable seat cushions; frequency modulation (FM) systems; writing support systems; and graphic organizers among others.
HKCSN staff members receive intensive training to offer a supportive environment where children with special needs feel both physically and mentally safe to take part in any activity. By ensuring a low child to specialist of 5:1 or better, HKCSN concentrates on every child’s strengths and abilities.
The specialists ensure that kids achieve important developmental, behavioral, functional gains, which they can acquire and apply across many settings. Children truly acquire a sense of belonging and identify that HKCSN is a special place for them. HKCSN specialists include special needs children teachers, recreational therapists, occupational therapists, physical therapists, speech therapists, and psychological therapists.
Parents can play too! HKCSN encourages parent involve and interaction with their kids during open happy hour. While HKCSN provides different programs and experts to offer guidance and assistance, it appreciates that there is nothing more rewarding for a parent as observing first-hand and engaging in their kid’s experience, discovery, and development.
In addition to an amazing play center, HKCSN strives for excellence.
HKSCN is the first specialized entertainment Centre in Dubai for children with special needs.
It offers therapies for kids with special needs and developmental delays.
HKCSN provides learning opportunities to children with special needs.
The company’s core values help to drive the unfair advantage.
Core values: Aspiration, belonging, courage, creativity, joy, authenticity, care, excellence, and openness.
Sales and Marketing
Main marketing messages are directed to the entire target customers, all parents with children with special needs in the GCC. They are simple, straightforward statements, which all customers comprehend.
HKCSN is an innovation center dedicated to entertaining and developing skills of children with special needs using modern equipment and technologies. The first-of-its-kind center in the GCC allows hundreds of children with different disabilities across the region to realize their potential and prove their abilities in society.
Positioning
This marketing strategy positions HKCSN and ensures it is promoted, marketed, and sold more than other competing brands. In addition, this marketing plan will reposition the product as modern, versatile, easy to use, and highly effective through creating an advertisement campaign for the intended consumers.
The main objective of this sales and marketing plan is to create and increase HKCSN brand awareness among consumers by 50% and realize 70% in sales within one year.
Target population and demographics
HKCSN targets all parents and guardians of all ages with special needs children across Dubai.
The 4Ps
In a market where consumer attention is increasingly becoming hard to get due to various messages from diverse media, the most effective strategy lies in the 4Ps of marketing (price, product, place, and promotion), which have been tested and proven.
Pricing Strategy
HKCSN recognizes the financial strains associated with raising children with disabilities. For instance, it now costs AED200 per hour to enroll an autistic child and another AED500 per hour for therapy charges (Nazzal 2013). Hence, HKCSN wants to remove this burden from parents through low pricing strategy. HKCSN charges AED100 per hour for services and AED300 per visit for all therapies.
Product Strategy
HKCSN is the first-of-its-kind entertainment and learning center in the GCC, and it offers a wide variety of services to children with special needs using modern technologies. These services include therapies, learning, parties, building; arts and crafts; horseback riding; talent shows; sports and games; guest presenters and entertainers; and nature programs. This product strategy strives to attract all children with various developmental challenges. Learning takes place through robots, smart boards, smart books and screens, a 3-D printer, and other interactive equipment to ensure creative and change in kids with disabilities.
Place or Distribution Strategy
HKCSN is located in AlKhawaneej, Dubai, United Arab Emirates, which has a huge population in the UAE, and it accounts for a significant number of expatriates. HKCSN works with the related organizations, such as the Autism Trust Foundation (ATF) in Dubai, the Government, several mainstream schools that have made a sustained effort to integrate special needs children, but lack capacities, and the Knowledge and Human Development Authority and Abu Dhabi Education Council of enhance inclusion. HKCSN intends to open other centers in Abu Dhabi within the second year of operation.
Promotional Strategy
HKCSN uses both modern and traditional media to promote its brand. Notably, HKCSN has significant exposure following the reality TV talk shows and working with parents of children with special needs. HKCSN has also placed its services on the Internet. Additionally, direct visits to various centers and care facilities by key leaders of the company have also promoted the brand. Further, personal promotion adopted puts HKCSN as a caring, welcoming center where every child is cared for and understood through individualized attention. Personal contacts have been heavily used to get in touch with parents to come, tour the facility, and then make their decisions. As such, the strategy delivers the HKCSN’s message, shows the uniqueness, and builds stronger relationships with current and potential clients.
Sales promotions and public relations have been significantly integrated as promotional strategies. For example, HKCSN dedicates the Month of Giving every year to encourage special needs children from various backgrounds to experience the facility.
Channels
Omni-channel approach is recommended for the company (Piotrowicz and Cuthbertson 5; Fabio 23).
Out-of-home promotions
Billboard campaigns along the major roads and city spaces in Dubai with clear messages about HKCSN
Radio
Radio promotions highlight facilities at HKCSN. The following radio channels are popular:
Dubai FM;
Emarat FM;
Abu Dhabi FM;
Pravasi Bharathi 810 AM;
Al Oula.
Television
Dubai TV;
MBC Drama;
Dubai News Channel;
Emirates Channel;
MBC;
Al Aan TV;
Al Jazirah TV.
Additionally, TV ads should also appear at the periods when majorities watch at home, perhaps, in the morning and late night.
Social Media
HKCSN uses YouTube to stream online videos about HKCSN and available services.
Facebook offers a platform for majorities in the UAE and beyond in a cost-effective manner.
Instagram photos are used to convey possible messages about HKCSN.
Internet
HKCSN usually launches a more persuasive Internet promotions and interviews for the target audience. The company’s main page is clean, carefully classified, and easy to navigate. Here, visitors to the site can explore various services, facilities, and technical expertise of the staff. Additionally, YouTube promotions, newsletters, interviews, evidence-based studies, and other useful materials are available for presentation for users.
Competition
HKCSN is certainly not alone in this market. There were at least 70 special needs centers, mainly schools, across the UAE in 2015. Additionally, some parents also insist that nannies must accompany their children with special needs because they are relatively affordable compared to trained teachers or care providers (Pennington 2017). Thus, competition is both formal and informal.
Some of the major competitors include Al Noor Centre for Children with Special Needs, Autism Trust Foundation School Dubai, British Institute for Learning Development, Child Early Intervention Medical Center, Greenfield Community School, Yellow Brick Road Nursery, and SNF Children Development Center among others (DubaiFAQs 2015).
HKCSN applies SWOT (strengths and weaknesses and opportunities and threats) analysis to understand its position relative to the competition. The management team often makes strategic decisions and takes actions to support organizational growth (Oreski 2012). SWOT is a commonly used analytical tool to account for both internal and external factors influence the environment in which a firm operates.
Strengths
The first-of-its-kind center in the region that integrates entertainment and learning
A low cost strategy approach (most institutions charge relatively higher to offer similar services)
Long hours for operations
A modern facility with the state-of-the-art assistive technologies and well trained personnel
Excellent customer service
Adequate space for more than 800 children at any given moment
Weaknesses
A relatively new entrant with a slow pace of creating brand awareness
Found in only one location
Opportunities
Regional expansion across the GCC region
Introducing additional assistive technologies to enhance outcomes
Reach out to more parents who have isolated their children because of stigma
Partnership with other related organizations
Applying evidence-based practices to enhance outcomes
Threats
Well established competition, including some equipped public facilities
Parents shunning well trained teachers for optional nannies
Some parents or guardians do not wish to enroll their children with special needs due to stigma
For competitors, HKCSN has noted that some publicly available facilities are unwilling to accept children with special needs, and they suffer a shortage in qualified staff and charge high costs for services. Further, some competitors, such as Safe Center, have limited capacity for less than 100 children. Hence, majorities are on the waiting list.
HKCSN continuously utilizes its strengths to improve on the weaknesses, exploit opportunities, and counter threats to establish the mainstream center for children with special needs.
Business Model
To generate revenues, HKCSN has adopted membership and enrolment charges and fees for services ordered (Goldman 2012).
Initiation and enrolment fees are charged. HKCSN charges an enrolment fee of AED50 per child enrolled at the facility. This fee allows them access to the facility, in addition to the membership fee, which is AED1,200 per annum for families. Membership fees allow members to gain access to the facility throughout the year for entertainment services, get discounts on service charges and free resource materials published by HKCSN.
Fees are the largest sources of revenues for HKCSN. HKCSN charges extremely lower costs for services offered. For instance, all services offered except therapies cost AED100 per hour per child while therapies cost AED300 per visit per child.
For families with economic hardship, HKCSN has developed special fees for them to ensure that the Center does not exclude children with special needs who lack better facilities.
HKCSN recognizes the need to generate more revenues from sources other than membership. User expectation is met based on the services they pay for and expectations for their children. HKCSN is a year-round business focused on inclusion and excellent services for customers.
Forecast
HKCSN recognizes that the forecast section is an important aspect of the business plan. It directly reflects the market analysis conditions, competitive edge, marketing plan and pricing strategies. HKCSN uses a low pricing strategy to generate more revenues. The company’s revenue is projected to grow at the rate ranging between 5% and 15% across the five projected fiscal years. HKCSN strives to maintain the growth in expenses below 10% each year in order to grow the profits year-over-year. The increase in expenses will result from additional workforce, while more revenue is expected from therapy services. Only a small fraction of the revenue is generated from initiation and membership fees.
These figures are most likely to increase further over the years because HKCSN has a capacity to handle more than 2,000 service requests to customers. Moreover, it will increase the capacity to meet the rising market demands.
Figure 1: Summary of the Projections.
Team
A team of professionals led by the CEO runs HKCSN. It strives to acquire the best talents in the region where such professionals are usually difficult to hire and retain.
The CEO, Shaikha: Shaikha is an investor, educator, and behavior analyst, with over 15 years of experience working with children with special needs of different ages and abilities, focusing on kids with autism spectrum disorders. As a therapist and behavior analyst, Shaikha recognizes the daily struggle of children with disabilities and strain on their families. The CEO intends to build the best learning and entertainment facilities in the region for special needs kids.
Marketing and operations specialist, Al Fayah: Al Fayah graduated from the State College with a Bachelor of Science in Psychology in 20005. After graduating, Al Fayah has worked in special needs center for kids for eight years. Additionally, Al Fayah worked in the marketing department for more than three years as a market analyst and researcher. At HKCSN, Al Fayah is responsible for much of the operational management, as well as meeting visitors and organizing classes and therapies.
Occupational Therapist, Amina: Amina has worked with diverse clients including adolescents with mental health disorders, accident victims of spinal cord injuries, and other patients with orthopedic injuries. Amina’s favorite client is the pediatrics. She uses a client-centered approach and emphasizes the role of the family in developing and implementing the intervention plan that accounts for social interactions, cognitive and physical development, and enhancing independent daily living.
Recreational Therapist, Samina: Samina is a certified recreational therapist with over 12 years of experience. Samina’s work is seen as innovative, resourceful, and highly effective. Samina observes that kids learn most when they consider learning as a part of playing. Thus, all therapeutic interventions tend to be fun, involving, and slightly challenging enough to assist children to realize their developmental goals and potentials.
Speech therapist, Alima: Alima has over 15 years of work experience with children who have communication disorders, including expressive disorders, such as apraxia, grammar, and phonologic, as well as receptive e.g., auditory processing. In addition, she is a language development, feeding and swallowing disorders, and attention, behavioral and sensory specialist.
Financial analyst, Godana: Godana has worked with a multinational firm in Dubai for seven years as a financial analyst. At HKCSN, he is responsible for analyzing financial data to show HKCSN’s financial status, performing cost and benchmarking analyzes, preparing budget reports, advising senior management team on financial planning, and forecast possible financial performance.
Status and Milestones
HKSCN is in its first year of operation and, thus, not much has been realized. Nonetheless, some fundamental contributions have been noted.
HKSCN successfully negotiated with the government for a tax waiver for a period of ten years to encourage growth and investment in the company to enhance inclusion and capacity.
HKSCN is currently engaged in brand awareness campaigns. It intends to expect over 50% increment in brand awareness.
The company has observed that much of its revenue emanates from therapy service fees and only a small fraction comes from membership fees. As such, HKSCN wants to enhance service quality and hire more professionals to meet the rising demands. HKSCN has decided to improve value as a more relevant strategy than short-term revenues. Thus, the current investment targets increased value for special needs kids and their families (Kaiser & Lee 2015).
There are no any plans for expansion or acquisition in the current fiscal year.
Piotrowicz, W & Cuthbertson, R 2014, ‘Introduction to the special issue: information technology in retail: toward omnichannel retailing’, International Journal of Electronic Commerce, vol. 18, no. 4, pp. 5-16.
Education, one of the most important sectors in the UAE, attracts 21% of the government budget. The Ministry of Education governs the school education in the country. The government provides public schools, which the students can attend free of cost if they are citizens of the country. School education in the UAE is divided into four stages. This business plan looks into the first cycle i.e. the preschool or nursery education.
UAE, a country that boasts of a 90% literacy rate, has a preschool enrollment of 107% (Duncan 2012). There has been a growing demand for private schools in the region that follows an international standard. According to the Knowledge and Human Development Authority (KDHA), the demand for private schools has increased phenomenally. In 2003, 88% of the school students in Dubai were enrolled in the 153 private schools (Given the exploding demand for education 2013).
There has been a spurt in the enrollment in private schools in Dubai since 2003 and the demand for the same has increasingly grown both among local and expatriate students. Hence, the rising demand for private schools presents a unique opportunity in the education industry of the UAE. Further, there is a high demand for private preschools in the region (Duncan 2012). Given this high demand for private preschools in the region, the preschool industry in UAE provides unique opportunities for entrepreneurs. This report is a business proposal for a preschool startup in Dubai, UAE.
Description of the Business
The preschool will be a privately owned chain of schools for children within the age group of 1 to 4. The schools will operate in Dubai. The school aims at proving a learning and colorful environment for the toddlers to grow, learn, and play. The school will aim to inculcate interest in education and tap the potential talent of the children. The studies will be arranged in such a way that the toddlers do not face any pressure to become early learners and yet may develop areas that interest them. The business will aim to provide educational prospects that will help them cope with their future education. The preschool will provide a safe and conducive environment for the children to grow, play, and learn.
The company will be privately owned in the UAE. The chain will take the aid of venture capitalists to generate the initial capital required for the initial investment.
Product & Services
The preschool will cater to toddlers from the age group of 1 to 4. This is the age that children are not yet eligible for primary school, which starts at the age of 5 and yet parents feel it is essential to start some form of educational activity. Learning early is considered, one of the best ways to stimulate the young brain, and children at a very early age show their natural inclinations. The services that the school will provide are as follows:
Schooling for toddlers where they will be taught through music, singing, dancing, painting, and other activities.
The school will provide a proper playground adhering to the safety norms of the education board to offer a proper environment to play and develop motor and social skills.
Provide a nice atmosphere that facilitates interaction among children and help in their learning process.
The timing of the school will be from 8 am to 1 pm. However, the school will operate as a daycare facility for the students if such services are requested at higher fees.
Market Analysis
The demographic profile of the target market for UAE demonstrates that in 2010, 6.4% of the total population was within the age group of 1 to 4. In 2015, the percentage of toddlers in the population would increase to 7%. Therefore, the total market that the preschool industry targets are 7% of the total population, which comes to 670,000 (see Appendix, Table 1) (World Population Prospects 2012). The population of Dubai within the age group of 0 to 4 has been 48,354 in 2000, 54,693 in 2005, and 82,547 in 2013 (Population by Sex and Age Groups 2014). Therefore, there has been a definite increase in population within the target age group from 2000 t0 2013 (Population by Sex and Age Groups 2014).
The business plan concentrates more on the market of preschool in Dubai where the preschool will operate. Data shows a large market in the city for the industry. The population of children within the age group of 0 to 4 in the city is shown in table 2 in the appendix. The high number of the expatriate population in Dubai indicates a larger pool of children who will be willing to enroll in the private schools as expatriate children are not eligible for free education in UAE (Nereim 2013).
Competition is intense in the private preschool industry in Dubai (Bennett 2009). In 1980, the Ministry of Education first established a nursery section in the schooling system of the country. Today more than 90 percent of the children are enrolled in preschools in Dubai indicating a growing demand for nursery education.
The preschool industry faces tough competition from a growing number of private preschools. Another impediment to the growth is the general attitude of Emirati mothers towards daycare, preschools, and crèches (Given the exploding demand for education 2013). As traditional attitudes and beliefs become a predominant part of the upbringing of the children, many mothers prefer home education for children to schools. However, due to the higher population of expatriates in the city, the demand for preschools has increased, as expatriates usually prefer sending their children to preschools (Enrollment in Education 2014).
There were 311 nurseries in the UAE in 2012 (Duncan 2012). The number of nurseries is not very high compared to the institutes of secondary and higher education. Therefore, it can be concluded that competition in the preschool industry is not very high.
Sales & Revenue
Initially, the company will open a single school in Dubai and start with an enrollment of a maximum of 150 students. This is a conservative number for a new nursery. This section will provide the cost for opening and the cost of running a preschool. Then a projected revenue earning will be shown along with the possible time required by the business to breakeven. The cost for a nursery start-up ranges from $500,000 to $750,000 (Duncan 2012).
The revenue earned by the school will be from two sources
enrollment fee
monthly fees.
The annual fee is set at $1000 in the first year and increases to $2000 in the fifth year. The monthly fees will be $500 initially and then increase to $1000 in the fifth year. The enrolment projection shows that the number of students expected to enroll in year 1 is 50, which will gradually increase to 70, 90, 110, and 130 in years 2, 3, 4, and 5 respectively. However, in this calculation, we have not included the fee structure that will be followed for the daycare. The fee structure is shown in table 5 (in the Appendix). The monthly fees will change depending on the hours of service required for the child.
Financials
This section will provide a Pro-forma balance sheet and financials for the preschool for the first five years of its operations. According to KDHA, start-up schools need to obtain a license from the Ministry of Education to open a nursery. Further, a proposal of the finances has to be presented to the KHDA (Open a school in Dubai 2014). The financial planning for the nursery is provided in the Appendix (Table 4).
The rental information for Dubai shows that property is very expensive in a good locality and may cost up to $250000 per annum (Flanagan 2015). According to salary comparison websites, the primary teachers receive an annual salary of AED 70,750, which amounts to $1600 (Average Salary for all K-12 Teachers 2015). Hence, the salary given to the preschool teachers in the first year is $2000, increased annually. The teacher to student ratio is taken to be 1:10 and 10 other staff are engaged, dedicated to looking after the children. In the first year, the school is expected to enroll 50 students. The startup cost is calculated to be $62000 and operational expenditure comes to $418000. The company will incur losses in the first two years and break-even in the third year (see table 3 in the Appendix).
Organization
The preschool will be a privately owned company. Initially, the company will open only one preschool in Dubai. The organizational structure of the preschool is shown in figure 1 (Appendix). The Principal, who will be the operational head of the institution, will have the teachers, other staff, accountants, and security people under him. If the demand for the school exceeds expectations then the company will venture into franchising its operations in other cities of UAE. Regular maintenance of the school is essential as strict government inspections have closed schools that do not meet set standards (Nereim 2013). Thus, maintenance and safety regulations must be checked to avoid danger to children.
Exit Plan
The initial investment in building a school is very high. Hence, exiting the business may result in incurring a lot of loss. However, if the projected numbers of students are not enrolled by the fifth year, and the company still does not break-even, it would be wise to exit the business. Further, the best possible exit plan will be to sell the business to someone else to regain as much as possible on the initial investment.
Business financing has become a challenge for those aspiring to expand an existing business or start a business. Thus, this reflective treatise attempts to explicitly review the sources of funding options available for the nonprofit Texas Religious Music Promotion Company. Besides, the treatise explores cost aspects of each source of business financing and the importance of financial planning.
Internal Sources
The internal financing options available for the company include personal sources such as retained profits and share capital. Basically, the retained profit is the funds generated by the initial business when it profitably trades. Considering the duration that the company has taken, the shared profits will substantially contribute to the funding for the Texas Religious Music Promotion Company.
Reflectively, retained profits is necessary is financing further expansion of the company since the business has the potential of making consistent sales. Besides, the company has the option of acquiring funding from the share capital which has been the main source of funding for the start up (Vance, 2003). Through share capital, the owner will be in a position to retain full control and ownership of the company, especially if he or she is the sole contributor.
External Funding Sources
Among the most viable external funding sources available for the Texas Religious Music Promotion Company include loan capital in the form of bank overdraft or bank loan, engaging external investors and convincing business angels to be part of the company.
Bank loan/Overdraft
Under a bank loan option, the company will be in a position to receive funding that is fixed over a period of time. The loan(s) will attract different interest rates, depending on the type and amount that the business will borrow. Reflectively, bank loans are repaid over a longer period of time and repayment schedules is fixed. Besides the bank loan, the company has the option of acquiring financing through bank overdraft. Basically, bank overdraft is a short term loan.
Bank overdrafts are a very flexible source of business financing since they can be used to handle temporary cash flow fluctuations in the company (Haber, 2004). Besides, bank overdrafts may offer the company a lifeline when it experiences temporary cash flow challenges.
Share Capital from Outside Investors
Another source of financing available for the company is the use of funds from outside investors such as contributions from family, friends, and interested investors who will be given shares in the company according to their contribution (Atrill, 2009). The fund contributors will be allocated shares in line with the total capital that the company requires for the expansion of the business.
Payback Period
Payback period is the duration required by the business to fully recover the costs of its start up. A business manager may use discounted payback period so as to take care of time value of money. The decision criterion is to accept a business with a shorter payback period (Sirman, Hitt & Ireland, 2003). This approach is useful because it tells the duration which a business ties capital. Payback period is obtained through a division of the initial investment cost by the annual cash flows.
Initial investment outlay $491,000
Annual cash flow $90,000
Therefore, the payback period is 491,000/90,000 = 5.4 years at a flat interest rate.
Cash Flow Projections
Cash flow projections are critical in estimating the net present value of the business against future projections. This is indicated in the table below.
Total revenue (P * Q) = total cost [Variable (C *Q) + fixed cost]
Price per unit (P) = $112.5
Units produced (Q) = to be estimated
Total fixed cost = $34,000 (as shown in the table below)
Item
Annual costs (000 $)
Fixed costs
Salaries and wages
21,000
Advertising
10,000
Administration
3,000
Total fixed costs
34,000
Net present value for the business
Year
Cost ($)
Benefits ($)
Net benefits ($)
Discount rate at 12% ($)
Net present value ($)
0
120,000
0
(120,000)
1
-120,000
1
25,000
80,000
55,000
0.8929
49,109.5
2
25,000
80,000
55,000
0.7972
43,846
3
25,000
80,000
55,000
0.7118
39,149
Total
195,000
240,000
45,000
12,104.5
The table below shows the marginal cost statement at the break-even units of output.
Financial Projections
Before deducting expenses
Texas Religious Music Promotion Company. Balance sheet statement As at 31 December 2014
Amount ($)
Current assets
256,000
Long term assets
235,000
Total assets
491,000
Total current liabilities
180,000
Stockholders’ equity
Additional paid up capital
160,000
Retained earnings
151,000
Total stockholders’ equity
310,000
Total liabilities and stockholders’ equity
491,000
Texas Religious Music Promotion Company. Income statement. As at 31 December 2014
Amount ($)
Net sales
353,717
Cost of sales
239,083
Gross profit
114,634
Net profit
114,634
After deducting expenses
Texas Religious Music Promotion Company. Balance sheet statement. As at 31 December 2014
Amount ($)
Current assets
265,416
Long term assets
235,000
Total assets
500,416
Total current liabilities
170,000
Stockholders’ equity
Ordinary common stock
1,000
Additional paid up capital
160,000
Retained earnings
150,000
Total stockholders’ equity
330,416
Total liabilities and stockholders’ equity
500,416
Texas Religious Music Promotion Company. Income statement. As at 31 December 2014
Amount ($)
Net sales
353,717
Cost of sales
239,083
Gross profit
114,634
Sales marketing
45,924
General administrative
38,464
Amortization
1,046
Other expenses
34
Total expenses
85,468
Income before taxes
29,166
Taxes
8,750
Net profit
20,416
Texas Religious Music Promotion Company. Statement of changes in equity. As at 31 December 2014
Common stock
Additional paid in capital
Retained earnings
Other comprehensive income
Treasury stock
Total stockholder’s equity
Opening balance
1,000
160,000
150,000
0
0
310,000
Changes
20,416
20,416
Closing balance
1,000
160,000
170,416
0
0
330,416
Return on investment = Gains – Investment costs
Investment costs
List of possible risks
Risk parameter quantifies the difference between the expected and actual results of a business policy over a specified period of time. Generally, risk is regarded as a negative factor because of its associated downside exposure to unrealized benefits, technical; performance shortfalls, time slippage, and cost overruns.
Operational risks
Operational risk is regarded as the main risk in this line of business. Operational risks involve risks associated with processes, people, technological elements, and content of the business. Lost competitive advantage, lost opportunities to deliver services at low cost, and challenges faced while training employees are possible risks costs that will be experienced while delivering services to clients. Thus, understanding these risks will ensure proactive mitigation strategies in the short and long term.
Financial risks
Risk stemming from unrealistic expectations, unreasonable schedule and budget necessitate a time and cost planning approach to the management, thus determining a baseline and striking a balance between time cost and scope or quality through business integration management.
The financial risks can be countered through the use of technical countermeasures and proper management, awareness creation, as well as by subsidizing related charges. Identifying potential risks and adopting appropriate actions is an essential challenge facing this company. This summarized in the table below.
Risk
Impact
Probability
Economic and Financial Risk
High Operation of this business is very expensive due to high expectations
Low Since the company is reliable, there is an assumption that the company will benefits from economies of scale to reduce the cost of doing business
Operational and Technological Risk
High The overruns on cost is likely to create a ripple effect in the company implementation categories such as hiring suitable personnel, marketing, and competition
Medium Since the company is tightly controlled, the probability will not be high since the company has a strong establishment in the market besides planning to adopt the penetration strategy to enter and control the market
Conclusion
Through financial planning, the company may be in a position to correctly forecast the profits and manage assets and costs associated with running the business. In addition, financial planning facilitates pricing and managing of company assets since its variables operate on efficiency and optimal operation. The company must review the required funds against the share contributions in order to estimate and draw risk and loss sharing balance.
Besides, the company must review its network of interested investors against their contribution. Thus, full knowledge of these costs will be instrumental in deciding the most cost benefits funding sources available for the company. This implies that financial planning at the company will ensure an easy cash flow forecast and managing internal funds flow.
Considering the nature of the business and bakery industry, the most appropriate source of funding would be bank overdraft and share capital from external investors funding. Bank overdrafts will give the company leverage against temporary cash flow problems and under or overestimations. Besides, bank overdraft is a flexible source of funding for the company.
References
Atrill, P. (2009). Financial management for decision makers. Alabama, AL: Prentice Hall.
Haber, R. (2004). Accounting demystified. New York, NY: American Management Association.
Sirman, D., Hitt, M., & Ireland, R. (2003). Dynamically managing firm resources for competitive advantage: creating value for shareholders. Washington DC, DC: Saettle Academy of Management Publication.
Vance, D. (2003). Financial analysis and decision making: tools and techniques to solve. New York, NY: McGraw-Hill books.
One of the most outstanding examples of people who have successfully launched and used their business plan in the banking industry to develop a bank tailored to meet customer needs and expectations is Sulaiman Abdul Aziz Al Rajhi.
Born in Saudi Arabia, together with his brothers, Suleiman Abdul Aziz Al Rajhi started a sharia compliant bank in 1938, a bank that has changed names such as Al Rajhi Trading and Exchange Corporation through a number of decisions into of Alrajhi Bank. In its marketing strategy, the bank has a customer driven with segmentations that reflect the dynamic needs of the customer.
In addition to that, the bank offers products and services, as indicated in its mission and vision statements that are customized to meet customer needs and expectation. Different issues such as competitive analysis and other related business plan issues are discussed in detail in the current paper. Other issue of critical importance includes history of the company, company profile, marketing strategies, services, and products, and financial position of the company.
History of the Founder
According to Forbes (1), Sulaiman Abdul Aziz Al Rajhi was the founder of the Alrajhi Bank. Sulaiman Abdul Aziz Al Rajhi, a Saudi Arabian billionaire in the corporate world whose wealth was estimated by 2011 to be $7.7 billion, occupies the 120th position of the richest people in the world. However, it was a good business plan that successfully positioned the founder and his company in the current business position in the world today (Al Rajhi Bank, 1).
Sulaiman Abdul Aziz Al Rajhi was born in 1920 in Jeddah Saudi Arabia with a Saudi Arabian nationality. Sulaiman Abdul Aziz Al Rajhi attended the King Abdulaziz University, graduated with a degree in Bachelor of Arts / Science, and is founder and chairman of the of the Alrajhi Bank bank with an Islamic religious identity.
The founder, Sulaiman Abdul Aziz Al Rajhi, had a humble beginning in a simple business with his brother which started by changing currencies for the pilgrims attending pilgrimages in Saudi Arabia in the cities of mecca and medina across the desert in 1930. In their business plan, the brothers decided to incorporate the use of foreign exchange agencies in the conversion of foreign currencies to the local currency that that the pilgrims could use while in Saudi Arabia.
According to Forbes (2), Sulaiman Abdul Aziz Al Rajhi positioned the business further by competitively incorporating other services into their business plan, which included diversifying into real estate businesses, investing in the manufacturing sector, and investing in industry and trade while banking remained the sole and exceptional primary source of their wealth (Al Rajhi Bank, 1).
Solely, therefore, the business plan consisted of banking business activities, trade activities, manufacturing activities, and banking activities. However, it was the successful and effective use of business strategies that Sulaiman Abdul Aziz Al Rajhi was able to position the bank as one of the most successful banking institutions in the world. However, it is important to examine the history of the bank as a successful business entity.
Company History
Thirty years today, the Al Rajhi bank was started. The bank was started by a wealthy Saudi Arabian known as Sulaiman Abdul Aziz Al Rajhi in collaboration with his brother. However, little is talked about the brother with whom the company was started. It was 30 years ago when the investment and trading and investment activities of the bank were started. In 1978, individual investments made by the brothers were merged into a corporation, which was known as Al Rajhi Trading and Exchange Corporation (Al Rajhi Bank, 2).
Following the formation of the new company, later on it was changed into Al-Rajhi Banking and Investment Corp based on a decision made at the ministerial level. Typically, the decision to change the name of the bank was contained in decision number 1398. However, little is divulged about the bank, but on close examination of the company profile, it becomes clear that four brothers are the main corporate equity holders of the bank.
Typically, the company has grown from bumble beginnings to be the largest banking institutions in Saudi Arabia. In addition to that, the company is sharia compliant, providing services to the wider Muslim community with banking services. The company has grown from a homegrown bank to an international bank, taking its services first to Malaysia, then to other countries of the world.
Mission and vision statements
The company has its mission and vision statements that serve the specific purposes as outlined in the statements. To be more accurate, the mission statement reads as follow:
To be most successful bank admired for its innovative service, people, technology, and sharia compliant products, both locally and internationally.
Thus, the mission statement clearly shows that the company ensures transparency, corporate and personal integrity in the provision of products and services in the financial industry, openness and perusal ethics that are critical in the provision of services in the financial industry.
On the other hand, the successful banking institution has the following vision statement:
A trusted leader delivering innovative financial solutions to enhance quality of life everywhere.
The company regards the vision statement as integrating core values in the pursuit of business activities and in offering core services in the banking industry while factoring the core values of the bank and the community it serves. Thus, in their vision statements, the bank reflects a customer centric values that regard customer as the main point of focus when offering business services.
Another important element reflected in the mission and vision statements of the company are the passion to serve customers. In addition to that, the success of the company is related to the desire to assist customers achieve their objectives, while ensuring that customers are attended to in humility and with due regard to their feelings and perceptions about the company.
Customers are the core of any successful business without whom, companies cannot position themselves at any strategic advantage against their competitor on the same industry.
Thus, the company attempts to ensure in their business plan the nurturing of innovative practices, inculcating excellence in the people in support of their pursuit of objectives, and ensuring that the company makes significant contributions toward a better society, thus, enhancing its corporate social responsibility (Al Rajhi Bank, 2).
The corporate strategy of the bank is reflected in a number of social responsibility programs such as implementation of 16 social programs that were viewed as being philanthropic. In addition to that, significant contributions to charities and foundations are evidence of the corporate social responsibility incorporated into the business plan of the company.
One of the key features of the program was that it was implemented by the Ladies Bank Branches of the company, thus, showing a significant radical regard for human values. On the other hand, a number of training opportunities were made available for 300 secondary school students that included girls and boys. In addition to that, university students benefited from the funding opportunities made available by the bank.
Business and Industry Profile
The business and industry profile of Al Rajhi bank shows the bank enjoys conducting business in four specific segments. These include offering retail-banking services, offering corporate services, trading in treasury bills and related business activities, offering financial services in the investment industry, and providing brokerage services. These services are ever growing, typically demonstrated by the internationalization of the company (Al Rajhi Bank, 3).
Each of the sections mentioned above provide customized services targeted at meeting and addresses each specific customer’s needs. The retail segment provides services to customers by accepting customer deposits, offering credit facilities to customers in need, and offers money deposit facilities.
On the other hand, corporate customers get their services from the corporate sector and offers services by accepting debits on current accounts. It is important to note that the treasury segment of the company provides treasury services while accommodating international trading portfolios.
In industry, the company operates a number of branches indicated in another section, offers banking services in different countries including the USA, Latin America, South East Asia, and in Europe among other destinations targeted for expansion. It was in the year 2006 that the company changed its name to Al Rajhi bank from Saudi Al-Rajhi Banking and Investment Corp.
Marketing strategy
The bank’s marketing strategy involves endeavoring to provide customers with products that dynamically reflect their changing needs. In addition to that, the company considers key issues related to the market and the competitiveness required in the market to market its products and services, and stay afloat in the market, thus sustainably continue enjoying an increasing market base.
One of the marketing strategies used by the bank is to provide customer driven products and services. Thus, each of the customers is evaluated and their needs carefully evaluated to created products and services tailored to address their needs. Thus, the bank’s marketing strategy is best defined as being customer driven.
In addition to that, the bank has a market strategy segmenting customers and endeavors to adopt different strategies to position itself in the market against the competitors. On the overall, therefore, the bank endeavors to create value for each of their customers to address their varied needs.
Thus, the pricing of products and series are customized based on the type of customer and banking services offered to the customer.
Product Descriptions
The bank’s marketing strategy involves endeavoring to provide customers with products that dynamically reflect their changing needs. Among the marketing strategies, include use of retail outlets to reach the customer and gain a larger market base, focusing on services, and product provisions in areas of corporate banking, offering services in treasury and services and investments.
The bank offers a variety of products and services that are focused on the needs of the customer which are dynamically changing, as mentioned elsewhere in the paper. The services and products are focused on the different but mainly small groups, corporate investments, and retail outlets (Al Rajhi Bank, 4).
Each of the baking services reflect a range f products tailored to suit the specific products and services provisions. One of the services that form the core of the banking activities is the Retail Banking Group. The Retail Banking Group offers a suite of products that are tailored to address needs in different segments of the market.
These include deposits for the each of the target market segments, offering credit current accounts, services, and products in consumer banking. Consumer financing includes the provision of loans for the acquisition of real estate property and provision of credit cards. On the other hand, the bank offers share trading for its customers, thus generating additional income for the customer.
Of the 500 branches offering-banking services, 100 branches offer specialized services for ladies with about 100 remittance centers. On the other hand, the bank offers over one million internet-banking users in the market.
Another range of products offered in the market includes the Corporate Banking Group (CBG) products. Typically, the sector focuses on the corporate sector that provides products and services tailored for that sector. In addition to that, other products and services tailored to address the needs in the commercial sector fall under the Corporate Banking Group (CBG) products.
The Corporate Banking Group (CBG) provides a wide range of financial services that help stimulate investments in different areas. In addition to that, the financial services offered by the bank are tailored always to operate under the sharia law.
Another product of significant importance is the management of asset liability and liquidity position of the bank. Typically, the yield-based income on treasury is run by an active treasury based on active investment book.
Thus, the level of liquidity and the depth of the market is regulated by the Treasury Group, that oversees that oversees the implementation of the market liquidity and treasury portfolios. Typically, the bank deals in a wide range of products and services particularly in foreign exchange currencies, making its presence widely acknowledged in different centers around the world.
Each product offered by the bank is sharia compliant. These include treasury products, and services and products in the commodity market, in both local and international markets. On the other hand, the financial services and products are customized always to meet different customer needs and expectations.
Thus, management and staff are well organized and innovative and provide the customers with products and services tailored to address their specific needs. On the other hand, in order to facilitate customer activities, the treasury department offers support in product and services pricing in the money market when exchanging currencies and other business activities.
However, to strategically position the company at a strong position, the company endeavors to continuously innovate and embrace modern technologies to enhance service provisions. Thus, the company attempts to offer suitable products that position it at a competitive position in the market.
Other products and services that are sharia compliant include trading in shares. Trading in shares, is made by the bank sharia compliant based on a number of requirements. There is no direct trade in activities that include alcoholic drinks, narcotics, and tobacco.
On the other hand, trading in shares allows interested customers to purchase directly Saudi Stocks in the share trading market in well-established lounges. To keep the customer well informed about the trading in the stick market, the company uses current technologies to provide continuous updates of the changing business trends in the market.
It is important to note that transactions are tailored to reflect the needs of the customer by conducting them using the Electronic Securities Information System (ESIS). On the other hand, the bank attaches a significant amount of importance to the use of modern technologies in offering customers the services they require.
Competitor analysis
Any business attracts competitors who might be first movers or late movers. The sole aim of competitors is to get a share of the market and generate profits to sustain the sole survival of the company. That is the case with Al Rajhi bank. Typically, it is important for the bank to identify its competitors and analyses their competitiveness, their strengths, weaknesses, and the strengths of the bank and its weaknesses to ensure strategies are formulated to position the bank competitively in the market.
Among the competing banks in Saudi Arabia that offer similar services to Al Rajhi bank include Al Jazira bank, the Riyadh Bank, Saudi Hollandi Bank, United Saudi Commercial Bank, and Arab National Bank, among others. Typically, there are over twenty banks operating in Saudi Arabia that offer competition to the Al Rajhi bank both in Saudi Arabia and in the international market.
All these banks enjoy a number of strengths, though; a number of weaknesses and threats also characterize them. In addition to that, the current list of banks provide the source so threats to Al Rajhi bank while some of the threats experienced in the banking industry affect across section of other banks.
Thus, some of the strengths discussed below are weaknesses of the banks while some of the weaknesses and threats are opportunities and strengths of the other competitor banks.
The Al Rajhi bank enjoys certain strengths based on stable ratings compared with her competitors. Some of its competitor banks have a lower credit rating in comparison with competitors. On the other hand, the bank has some inherent weaknesses in terms of poor segmentation approaches. Typically, that has been due to the bank policies and market focus.
However, the bank enjoys a wide range of business opportunities partly because of the demand for its services particularly with Muslim communities that are growing and spread all over the world. In addition to that, the banks’ corporate policies allow it to operate virtually in any country in the world, increasing the number of available opportunities in the market. Another key area of strength is the strong capital adequacy of the bank and its related sources.
Typically, the bank has external and internal threats in terms of global economic imbalances, changing policies of different nations, and global economic crises such as recession in many parts of the world. Another threat associated with the bank is the problem of currency pegging. Currency pegging causes problems in exchange rates and might susceptible cause loss and instability in the bank.
Financial forecasts
Research on the financial position of the bank reflects a trend that shows the company growing from one year on to the next. Typically, the growth is a clear indication of the financial health of the bank. Thus, the bank has strategized always to remain a head in the banking industry and retain its position both nationally and internationally.
Thus, it is important to examine the financial positions of the company from 2008 to 2010 to establish a clear view of the trend in the business transactions of the firm. In 2008, the bank had an asset base of SAR 164, 929, 01 billion which grew to 170, 729, 729 billion, and culminating to 184, 840, 910 billion SAR. Thus, a significant growth in the cost of total assets shows that the company was registering growth in the positive direction. Thus, it makes it possible to project the growth of the company in the next one year.
On the other hand, the total operating income in for the three years provides an indicator in the direction of growth registered by the bank. In 2008, the total operating income was over 10, 500, 200 billion SAR, 11, 500, 00 billion SAR in 2009, and 11, 666, 100 billion SAR in the year 2010. Thus, there was significant growth, but a smaller one compared with previous years of the total working capital (Al Rajhi Bank, 4).
A comparison of the working capital for the years 2008-2010 shows an improvement in each of the years. The net income between the years 2008 to 2010 shows a positive change in which a rise was recorded for each of the years. In 2008, the net income for the bank was 6,500, 600 billion SAR with an improvement of 200, 600 in the following years.
On the other hand, it is important before establishing the bank’s financial strategy to review the bank’s credit ratings. According to competitive intelligence reports, the bank had earned a credit rating of A1 by the Moody’s A+ from Fitch. The underlying rationale for the positive ratings was due to products and services offered by the bank that customer oriented and tailored to address individual customer needs.
In addition to that, the findings the company was positively rated due to excellent profit generation, a strong market capitalization base, a high amount of deposits showing customer confidence in the bank, and a healthy customer franchise that was reflected in the retail sector of the bank throughput its branches. Thus, the following are key statistics that show the trend in a number of business activities conducted by the bank between 2008 and 2010 (GlobalData, 1).
Year/Number Description
2008
2009
2010
Number of bank branches
430
435
470
Number of Lady branches
100
101
110
The number of Remittance centers
126
127
130
Bank ATMs
2000
2200
2500
Number of point of sale terminals
17000
18000
21000
Employees of the Bank
7400
7300
7500
From the tables provided above, one is able to realize that the number of employees had risen and then experienced a drip before rising again. A number of reasons included the use of technology and a rise in the number of outlets. Thus, that reflects a rise in the customer base, an increase in market shares, and a rise in the use of technology.
On the other hand, the number of new braches showed an increase indicating the bank’s passion to expand and reach every customer in need of the banking services. In addition to that, the increase in the number of branches ensures that the bank brings services closer to the customer. Typically, the number of points of sale, the number of ATMs and other services offered by the bank showed an upward trend.
However, slight changes in profits between 2009 and 2010 were noted. However, that does not indicate a downward trend in the income of the bank, but an increase in expenditure shows that the company was expanding and part of the profits were ploughed back into the expansion process.
Based on the findings on the financial statues of the company, it is critical to examine the financial projections and strategies that fosters growth in the sector and place the company at a competitive edge against its competitors while maintaining good financial position and increase in profits.
Reports indicate that the company intends to double its financial position, increase the number of branches, and make an international presence more felt. In addition to that, the company intends to increase the number of products and services offered and increase its presence in more Islamic countries that require their products and services.
In addition to that, the company intends to provide a wider range of products tailored for different Islamic communities and identify the range of products that might lead to more profit generations. On the other hand, the bank has a strategy of increasing profits by minimizing on expenditure while integrating technology as a cost saving measure. Thus, profits for the coming years are intended to double while the customer base increases by a significant size.
Works Cited
Al Rajhi Bank. Global Credit Research Credit Opinion. Credit Opinion: Moody Investors Services. 2008
Forbes, Malcolm S. Fact and Comment. Knopf, New York, ISBN 0-394-49187-4; twenty-five years of the editor’s columns from Forbes. 1974.
Most individuals, at some point in their lives, have had the desire to start and run their own businesses. The decision on whether such a business is to develop into a large one or not lies on the owner. Managing a small business entails a lot of things and, as such, the owner needs to have managerial expertise that enables the business to run and achieve its goals and objectives.
The growth of a business depends on the ability of the owner to manage it through the different external environmental conditions some of which are not predictable and, as such, may result in adverse situations. External environment include such factors as political, social, legal, and economic.
Economic environment entails an organization’s access to financial resources. Financial resources are always scarce and, at any given time, a business is in need of more finances to effectively carry out its operations or even to expand its revenue base through investments (Hodgett, 1995).
While large organizations have different options available to them for sourcing for financial resources such as debt, ordinary shares offer, and issue of debentures and so on, a small business in need of extra finances only has debt as its only source of income (Vander, 1994).
Obtaining debts from such lending institutions as banks and venture capitalists is, however, not an easy task for small businesses. This is because of the risk exposure associated with the small businesses’ poor credit worthiness. A viable tool that a small business can use to source for finances to cater for its growth is by the use of a business plan. This essay discusses the essence and viability of a business plan to a small business that seeks to expand its operations so as to contain its rapid growth.
Elements of a business plan
A business plan is a document that presents the actions that the business plans take in order to achieve its short-term and long term objectives. The document incorporates both the managerial, operational and financial action plans and the timelines that have been set in order to achieve specified goals within a specified time frame (Longnecker, 1991).
A good business plan comprises of seven important components. These include an executive summary, market analysis, description of the company, the business organization’s structure, marketing management, the company’s product, and the financials.
An executive summary is a snapshot description of the entire business plan. Looking at the executive summary, a person should be able to have a concise overview of the whole business plan. If the goal of the company is expansion, the executive summary presents the decisions that have been taken, are being taken and those that will be taken to ensure that the company achieves its goals and objectives. This section tells the reader of the business plan why the management thinks that the business will ultimately be successful.
Market analysis is usually a brief description of the market that the business operates in. The analysis may include the external remote environments that present either opportunities or threats to the organization. For a business plan to appeal to the reader, the market analysis should focus on the external factors that present the growth opportunities to the business and how the business plans exploit the opportunities so presented (Zimmer & Norman, 1994).
The product description presents the product that the business offers to the market. This part should include the importance of that particular product with relation to the market needs. A study of the market and consumer needs should reveal the need of that particular product that the business offers to the market.
The other element of a business plan is the marketing and sales strategy. This is simply a description of the strategy that the firm has formulated to enable it present the products as appealing to the consumers. A successful marketing strategy is determined by the amount of sales that the company is able to attain as well as the associated revenues.
The other element of a business plan is the organization and management. This presents the structure of the business and explains how the managerial decisions are made. It also presents the chain and flow of command in the organization. The importance of this is that it is able to indicate the internal controls that are set by the company in safeguarding the assets as well as the internal procedures that dictate the operations of the organization.
The last important element of a business plan is the financials. The financials part of the business plan presents the financial statements of the business. These include the financial data history of the business, prospective as well the forecasted financial statements.
The Need for a Business Plan
There are several boons of a business plan. First, it is a business document that can be useful when sourcing for financiers. Most financial institutions demand a business plan before reviewing any funding application by a small business. It is, therefore, an important document that helps the money lender evaluate the viability of the idea presented by the business and the ability of the idea to generate the returns necessary to pay back the cash borrowed.
Start-up businesses require the business plan so as to source for the finances that are needed to fund the business from scratch. The importance of this is that a business idea is presented in such a way that some money lenders such as venture capitalists are able to finance the idea from the beginning into a full grown business.
Expansion plans present the businesses expansion strategy and the need for financing (Toncre, 1983). The importance of this is that a business is able to acquire finances that can help it finance its expansion plan through the business plan.
Relocation element indicates a business’ need to move to another geographical location that is more relevant and convenient to the business activity. Franchising element presents the need of a business to start franchisee operations and the viability of that particular business. All these elements are focused at ensuring that the business is a viable undertaking that deserves the sought for financing.
Financial aspects of going full-time
A small business owner who operates part-time business and intends to go full-time must be aware of the various financial implications that are associated with a full-time business undertaking. Such an individual will of course be looking to expand the business.
This includes increasing the span of operations, hiring more workforces, acquiring a bigger business premises and expanding the marketing activity (Hodgett, 1995). All these aspects require increased financial needs and, as such, a business plan can come in handy to help the business source for funds to expand its operations.
While evaluating the viability of a business plan, money lenders, banks, and investors look at several factors. First, they consider the viability of the business idea with respect to the market that it operates in. The business plan should, therefore, ensure that the business idea presented in the plan is both executable and viable. A viable business idea will always attract funding from the money lenders.
Another thing that the money lender looks for in a business plan is the operational plan. This is a set of short term targets that are set in order to ultimately achieve the long term objectives (Longnecker, 1991). This is an important aspect of a business strategy since it shows the short-term practical steps that will ultimately result in the achievement of the long term goals.
The other important thing that money lender look for is the structure of the organization. An organization’s structure helps in such areas as decision making, flow of command and the implementing the set policies and procedures such as the cash management policies etc.
How the business Plan is presented to the money lenders
After drawing up a business plan, the next and most important step is to present it to the target lenders. The document should be precise and addressed to the particular money lender concerned. It should be presented as a formal document to the lender and it ought to be accompanied by other formal funding application documents.
Depending on the type of lender, the plan should include the specific requirements that accompany the lender’s demands in terms of the relevant information. Banks take it as an accompaniment to the formal loan application form while other lenders have their own specific requirements regarding the presentation of the business plan.
Conclusion
Business plans are important documents that seek to source for funds by any organization that seeks to grow or expand. As such, the business plan should have all the basic elements that constitute a complete document. A small business owner should, therefore, be keen to ensure that the business plan has been drawn in such a way that it includes all the necessary elements and presents a viable and fundable business idea.
References
Hodgett, R. (1995). Effective Small Business Management. New York: The Drydren Publishers.
Longnecker, G. (1991). Small Business management- An Entrepreneural Approach. Cincinnati: South Western Publishing Company.
Toncre, E. (1983). Nine Ways to Kill off Your Small Business. Nations’s Business , 65-66.
Vander, W. M. (1994). When the Wheels come off. Management today , 30-34.
Zimmer, T., & Norman, M. (1994). Essentials of Small Business. New York: MacMillan College Publishing Company.
