Research Korner: Proposed Business Plan

Cathay Pacific

Cathay Pacific Executive Summary Airline business is a challenging business. It has been noted to be the most competitive business in the world. Marketing executives should also be competitive to cope with the challenges of this kind of business. Cathay Pacific is one of the market leaders in the airlines business in Asia. The company has it great opportunities. The airline is committed to quality service. In addition, it has its competitive advantage. Cathay Pacific has great opportunities of expanding and improving its services. This paper is a business plan for Cathay Pacific Airways to exploit the business opportunities that are open to the company.   Business Background Cathay Pacific Airways Limited is an Asian commercial airline founded in 1946 which is based in Hong Kong and offering passenger services and cargo services to 102 destinations world-wide. It is a flag carrier of Hong Kong with its main base at Hong Kong International Airport. Cathay Pacific is the major shareholder in AHK Air Hong Kong Limited, an all cargo carrier that offers scheduled services in the Asia region, and is a shareholder in Hong Kong Dragon Airlines Limited.  “The airline business is a challenging operation. Operational information can be very dynamic and keeping customers well informed is a daunting task. Information, fares and schedules have to be accurate; sales promotions and marketing activities are constantly changing and typhoons cause last minute schedule changes or cancellations.” ()   The opportunity and strategy Despite the various challenges in which airlines faces, there is an opportunity for e-business. It has been known today that travel and the Internet have a natural association. Cathay Pacific Airways has the potential of this partnership and be successful in consumer e-commerce. In 2000, Cathay Pacific Airways forged ahead with an ambitious goal to become Asia’s leading e-business airline and promptly set up a new cross-functional department staffed by experienced airline people and newly recruited e-business professionals. Cathay Pacific Airways is committed to invest in services that enhance value to their customers while improving productivity and reducing information technology costs. With this, the company has leveraged to e-business. Cathay Pacific Airways is known to be Hong Kong’s leading airlines gives them the opportunity to acquire more customers and generate more revenues. People would have more confidence on airlines that are recognized by the award winning bodies because it would make the people have more confidence on flying with the said airlines. In addition, with Cathay Pacific Airlways’ online booking, they give more convenience to their customer giving them the chance to attract more customers especially with people that have no time to go to airlines branches for bookings.  The airline has also an opportunity of technology advancement for easier transaction and operations and for more convenience for customers and employees. Moreover, with its recognition, the airline attracts more opportunities of expansion.             Furthermore, the company has design learning experiences for the employees to deliver consistent good services to customers. The company has encouraged a culture of self responsibility, courage to innovate and openness to collaborate within the organization. Additionally, e-learning strategy cut the time required for certain training courses. ()             The online brand building technique has also been a good strategy for the company. “The airline's approach towards reaching its audience by building online partnerships with leading brands such as Universal McCann, CNN, Yahoo! and ZUJI.com has made it one of the major online marketers in Hong Kong and across the Asia Pacific region.”() Source of competitive advantage The source of Cathay Pacific Airways competitive advantage is from the continuous dedication to high-quality service which has elevated the company to new heights of success in the highly-competitive airline industry. In addition, Cathay Pacific has always relied on Information Technology (IT) to meet their infrastructure demands while gearing up its internal operations for efficiency. IT provides the airlines with two distinct advantages—an efficient reservation system and an engineering system that keep the airlines' planes constantly fit for air travel. “Cathay Pacific is renowned for its award winning “Service Straight From The Heart” both on the ground and in the air. As the airline of Hong Kong, Cathay Pacific is committed to enhancing Hong Kong as a leading global aviation and logistics hub.” (www.citrix.com) Management Background, Qualities and Experience Name Position Background and Experience Senior Management   Chairman CBE, joined John Swire & Sons Limited in 1978 and has worked with the group in Hong Kong, Australia and Papua New Guinea. He is also Chairman of Swire Pacific Limited and John Swire & Sons (H.K.) Limited, and a director of Swire Properties Limited. He served as Executive Director of Swire Pacific’s Trading and Industrial Division from 2000 to 2005.   Chief Executive He joined Swire in 1977 and has worked with the group in Hong Kong, Mainland China and the Asia Pacific region. He has been a director of Cathay Pacific since 1997 and was appointed Chief Operating Officer in 1998. He served as Chief Executive of Hong Kong Dragon Airlines Limited from 1994 to 1997.   Chief Operating Officer He joined Swire in 1977 and has worked with the group in Hong Kong, Australia, the Philippines, Canada, Japan, Italy and the United Kingdom. He served as Director Corporate Development from 1996 to 2004 and is a Director of Hong Kong Aircraft Engineering Company Limited, Dragonair and Air Hong Kong.   Finance Director He joined the Swire group in 1979 and in addition to Hong Kong, he has worked for the group in Japan, the United Kingdom and the United States.   Director Flight Operations He oversees all aspects of the airline's global flight operations. He has worked with the Group for more than 22 years, including the past five years in the Flight Operations Department as General Manager Aircrew. Derek Cridland Engineering Director He joined Cathay Pacific in 1982 and was previously employed by the International Civil Aviation Organisation (ICAO) and British Airways. He is also a Director of Hong Kong Aircraft Engineering Company Limited, Hong Kong Aero Engine Services Limited, and Associated Engineers Limited.   Director Sales and Marketing He joined Cathay Pacific in 1983 and has since held a variety of posts in the company. These include Country Manager for Malaysia and Brunei, Staff Manager for Outports, Manager for Passenger Product, Vice-President for Canada, and General Manager Cargo.   Director Personnel He first joined Cathay Pacific in October 1973 as a Cargo Officer, and has held a number of positions within the airline in the areas of cargo, airport services, and personnel. Augustus Tang Director Corporate Development joined Cathay Pacific in 1982 as a management trainee and has held several positions with the airline, including postings to Malaysia and Japan. He was previously Director Corporate Planning since 2000 and is also a Director of Cathay Pacific Catering Services Hong Kong Limited and Air Hong Kong.   Director Information Management His responsibilities include overseeing the strategic positioning and delivery of the airline's information management and technology needs.He has previously held positions as CEO of Tenzing Communications,providers of airline inflight email and SMS services,and CEO of Cathay Pacific's Catering Division.He has worked with Cathay Pacific since 1975.   Director and General Manager Cargo joined Cathay Pacific in 1984. He has held a number of managerial positions overseas as well as in marketing and sales and revenue management. He has been involved in loyalty marketing since January 1995, and launched the Asia Miles Travel Reward Programme in 1999.     Director Service Delivery joined Cathay Pacific in 1998 as Manager Corporate Communication, was appointed General Manager Inflight Services in August 2000. She has been a Director of Cathay Pacific Catering Services Hong Kong Ltd since September 2000. Non-Executive Directors Martin CUBBON Director of the Company He is also Finance Director of Swire Pacific Limited and a Director of John Swire & Sons (H.K.) Limited and Swire Properties Limited. He joined the Swire group in 1986.   Director of the Company He was appointed Deputy Chairman in January 1997. He is Managing Director of CITIC Pacific Limited.   Alternate Director to He is an executive director of CITIC Pacific Limited   Director of the Company He is also a Director of Swire Pacific Limited, Hong Kong Aircraft Engineering Company Limited and John Swire & Sons (H.K.) Limited. He joined the Swire group in 1970. HUGHES-HALLETT, James Wyndham John Director of the Company He is also Chairman of John Swire & Sons Limited and a Director of Swire Pacific Limited and Swire Properties Limited. He joined the Swire group in 1976 and in addition to Hong Kong has worked for the group in Japan, Taiwan and Australia.   Director and Deputy Chairman of the Company He is the Chairman of the Board and a Non-Executive Director of Air China Limited. He is also President of China National Aviation Holding Company.   Director of the Company He is Deputy Managing Director of CITIC Pacific Limited.   Director of the Company He was appointed Director of John Swire & Sons Limited in May 2002. He is also Chairman of P&O Ferries and Southampton Container Terminal ZHANG, Lan Director of the Company She is the Vice President and Chairman of the Commercial Committee of Air China. Independent Non-Executive Directors   Director of the Company He is Chairman of Hysan Development Company Limited and is also a Director of Hang Seng Bank Limited and SCMP Group Limited.   Director of the Company He is an Executive Director of The Hong Kong and Shanghai Banking Corporation Limited. He is a Director of Hang Seng Bank Limited and has been a Vice-Chairman and Chief Executive since May 2005.He is Chairman of HSBC Insurance (Asia-Pacific)Holdings Limited, and a Director of Bank of Communications Limited, Esprit Holdings Limited, Hong Kong Interbank Clearing Limited and Hutchison Whampoa Limited.   Director of the Company He is Deputy Chairman and Group Managing Director of PCCW Limited. He is also a Director of The Hong Kong and Shanghai Banking Corporation Limited.   Director of the Company He is Chairman of Orient Overseas (International) Limited.   Operational Plan Company mission and objective The company’s vision is to be the most admired airline in the world. To achieve that hallmark as a service leader, the company is committed to service enhancements that reflect its unique motto, “Service Straight from the Heart.” <ul type="disc" style="margin-bottom: 0in"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Ensuring safety comes first </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Providing Service Straight From the Heart </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Encouraging product leadership </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Delivering superior financial returns </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Providing rewarding career opportunities</li> </ul> Distribution             Cathay Pacific weekly aircraft departures are estimated to be approximately 1,250 of 102 destinations in 35 countries. The reported passengers carried in 2005 reached to a total of 15,438,243 and cargo carried in 2005 reached to a total of 1,118,047 tonnes. Products Cathay Pacific Cargo operates scheduled long-haul freighter services to world-wide destinations that include Paris, Milan, Manchester, Brussels, Dubai, Dehli, Bombay, Sydney, Melbourne, Chicago, Los Angels and New York. Cathay Pacific Cargo also operate freighter services to Hong Kong-Tokyo-Taipei-Hong Kong six times a week, a direct freighter service to Tokyo and Seoul once a week. A freighter service to Sydney and Melbourne. Cathay Pacific Cargo arranges extensive trucking services within Europe, North America, Hong Kong, North-east Asia, Africa, Middle East and New Zealand. The services enable your cargo to reach destinations where Cathay Pacific does not fly directly. The Group's principal activity is the operation of an international airline. The Group offers scheduled cargo and passenger services to 102 destinations around the world. Other activities include airline catering, aircraft handling and engineering, provision of computerised reservation systems, ground and ramp handling, aircrew and financial services and property investment. Operations of the Group are carried out in Hong Kong, Isle of Man, Canada, the People's Republic of China and Bermuda.   Market Research and Analysis Target Customer             Cathay Pacific key target customers includes the multi-sector, premium, frequent international traveler.   Competitor and Competitive Edges Top competitors of Cathay Pacific include British Airways China Airlines, China Southern Airlines and Singapore Airlines. The main competitive advantage of Cathay Pacific is on their brand strength which is consistently good service and sophistication congruent with the world's greatest city. It has also ties in with Hong Kong image faultlessly. Cathay Pacific also offers superb services in ground to air. In addition, Cathay Pacific is dedicated to technological excellence for its products and services. It was one of the first airlines to provide inflight email. It also offers online ticketing and check-in, a downloadable timetable, and the notiFLY flight paging service, which delivers real-time flight information updates to customers via email or on their mobile phones. The iPermit scheme enables Taiwan residents to apply for Hong Kong visas via the internet and collect them upon arrival at Hong Kong International Airport. Its inflight entertainment system offers more than 20 video channels and an audio/video on demand system for First and Business class passengers. It was voted "World's Leading Use of Inflight Technology" in the World Travel Awards 2003 poll of 80,000 travel industry professionals.   Economic of the Business “Air travel remains a large and growing industry. It facilitates economic growth, world trade, international investment and tourism and is therefore central to the globalization taking place in many other industries. In the past decade, air travel has grown by 7% per year. Travel for both business and leisure purposes grew strongly worldwide. Scheduled airlines carried 1.5 billion passengers last year. In the leisure market, the availability of large aircraft such as the Boeing 747 made it convenient and affordable for people to travel further to new and exotic destinations. Governments in developing countries realized the benefits of tourism to their national economies and spurred the development of resorts and infrastructure to lure tourists from the prosperous countries in Western Europe and North America. As the economies of developing countries grow, their own citizens are already becoming the new international tourists of the future. Business travel has also grown as companies become increasingly international in terms of their investments, their supply and production chains and their customers. The rapid growth of world trade in goods and services and international direct investment have also contributed to growth in business travel. Airlines' profitability is closely tied to economic growth and trade. Since then, airlines have had to recognize the need for radical change to ensure their survival and prosperity. Many have tried to cut costs aggressively, to reduce capacity growth and to increase load factors. At a time of renewed economic growth, such actions have returned the industry as a whole to profitability. To meet the requirements of their increasingly discerning customers, some airlines have to invest heavily in the quality of service that they offer, both on the ground and in the air. Ticketless travel, new interactive entertainment systems, and more comfortable seating are just some of the product enhancements being introduced to attract and retain customers. A number of factors are forcing airlines to become more efficient. The airline industry has proceeded along the path towards globalization and consolidation, characteristics associated with the normal development of many other industries. It has done this through the establishment of alliances and partnerships between airlines, linking their networks to expand access to their customers. Hundreds of airlines have entered into alliances, ranging from marketing agreements and code-shares to franchises and equity transfers. The outlook for the air travel industry is one of strong growth. Forecasts suggest that the number of passengers will double by 2010. For airlines, the future will hold many challenges. Successful airlines will be those that continue to tackle their costs and improve their products, thereby securing a strong presence in the key world aviation markets.” (adg.stanford.edu) Marketing Plan Overall Marketing Strategy Cathay Pacific Airways marketing strategy is focused in terms of market achievements, marketing strategy and positioning, advertising and promotion campaigns, product development, design and package as well as after-sales service, according to a press release from the Cathay Pacific Airways.   Market Segments             Cathay Pacific Airways key target market is the multi-sector, premium, frequent international traveler.   Business Expansion – set up plan The foremost expansion plan of the company is to make the company a wholly owned subsidiary which will create significant value. PArt of their expansion plan is to increase existing stake in Air China. There is also a plan to further order a number of aircraft for delivery. In addition, additional services will be offered. A freighter service to Chennai and increased our frequency to Atlanta, Dallas, Delhi, Mumbai, Penang and Singapore will be commenced. Strategic thinking explores the big picture, delves into long term, broad and significant implications of a company and the industry or industries it operates in. Through this process it enables a company to respond to change swiftly, which is most critical factor for survival in this digital age. Microsoft for example was thinking strategically four years ago when it discarded its definition of its company as a PC company at a time when the Internet is beginning to make "personal computing" a losing bet. The day will come when people would not use PCs but just a Net connection, A Web application and Web-based application. It was not the financial resources that saved Microsoft. It was the ability to respond to changes in the industry. In fact, Microsoft's success today is attributed to its ability to respond to changes faster than its competitors. In a matter of few years, Microsoft has transformed itself from a proprietary content service, Microsoft Network (MSN) to development of separate Internet services which include its CarPoint car-buying service and Expedia services. It has further reinvented itself by creating a multimedia website or portal called MSN.com that also acts as a homepage for Microsoft's Internet Explorer. In anticipation of more free offerings by competitors, Microsoft has purchased Hotmail to add free services to its e-commerce offerings. Strategic planning and Analysis In facing an environment of increasing competition and abundance of opportunities, organizations have to think strategically of how best to tap into resources to capitalize on these opportunities. Strategic thinking enables organizations to determine the viable and more attractive opportunities to pursue. It enables organization to scan the environment for opportunities which they can capitalize on based on their strengths.   Counter threats Strategic thinking explores not only opportunities in the market place but also threats and potential threats in the industry. For example, for a long time, piracy in terms of cassettes, videos and CDs have plagued the music industry. And music companies have been undertaking their own strategies to combat this. Today, the music industry is facing yet another threat from the internet. Any Internet user can get into the Web and download music as digital signals into a computer. The battle field has now changed, there is no recorded CDs, cassettes or tapes. Sustain competitive advantage In this digital age companies need to find new ways to sustain competitive edge in their business. Prior to the advent of the internet, portals and homepages, established companies in various industries from automobile manufacturers to banking, insurance, telecommunications, travel agencies and supermarkets can rely on entry barriers such as high cost of entry, brand recognition, scarcity of distribution channels and limited resources as ways to sustain their competitive edge in the businesses that they have developed over the years. Today with unprecedented information exchange, we have digital sellers and buyers who can transact with one another over the Net through a click of the mouse. New Internet start-ups such as PCCW as mentioned earlier has taken over brick and mortar company like HKT. Strategic thinking is needed to find new ways to create competitive advantages in business. In fact, strategic thinking is needed to ensure the long-term survival of an organization. The real intellectual capital of organizations of this digital age, is the strategic thinking capability of its management.   Reinvent the industry Strategic thinking allows an organization to go beyond reengineering its processes. Restructuring and reengineering is not enough to sustain the competitive edge of an organization. To become industry leaders, organizations often have to reinvent the industry. Apple for example created an entirely new industry - the personal computers industry. And Time Warner, Electronic Arts and other companies are reinventing the education and entertainment industries and redefining them into the field of "edutainment". Restructuring and reengineering is about organization transformation. But organization transformation needs to be preceded by industry transformation. And to undertake industry transformation, leaders in organization need strategic thinking.   Future Plan Position for the future Strategic thinking allows the management to create the desired future of an organization. Through a process of strategic analysis and assessment of the opportunities in the environment, the management team can develop a common and a shared vision and strategy for the future of the company. It can help position the company to enable the company to grow. In fact, strategic thinking is needed to ensure that organisations survive in the future. In the future, the company is planning to build and operate on their own cargo terminal at Hong Kong International Airport with an eventual planned annual capacity of five million tonnes. This will enable the company to pursue aggressive cargo growth plans, make significant cost savings, introduce product innovation and strengthen Hong Kong’s position as a global logistics hub.

Cathay Pacific

Cathay Pacific Executive Summary Airline business is a challenging business. It has been noted to be the most competitive business in ...

Business Plan for Radio Station

Business Plan for Radio Station   Situational Analysis             The radio industry in the Middle East is composed of public service broadcasters and commercial broadcasters and with FM as the primary radiowave. Today, radio broadcasting is a thriving industry with 346 FM radio stations in total. Private FM radios constitute 48% of this total and the rest are government-owned. Liberalisation in the Arab region is reported to be the reason for the growing industry. As it is linked with economic reasons, the need to broadcast in multi-language because of the growing presence of expatriates enhances the number of radio stations (Sennitt, 2009).             Further, there are also radio stations that are broadcasting live on the Internet. Stream types differ depending on the requirement of the radio station. Most of these radio stations are offering rai ballads and pop music, 24/7 (Sennitt, 2009).   Business Description Objectives <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Provide broadcasting services in the Middle East in the field of entertainment </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Broadcast programmes in line with Islamic ideology, national unity and principles of democracy</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Promote right to communicate and encourage creative expression</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Provide right to access to various groups including minority and marginalised</li> </ul>   Services offered             Programmes relating to music will make up the basic programme but will also cater to religious, news and current affair, women and children and youth-oriented programmes. Music continues to remain to be a dominant feature of Middle East radio stations as it involves the diversity of cultures through music.   Market Analysis The need for radio station             Faten Bader, Arab Advisors senior research analyst, noted that, “State-owned radio stations in the Arab World still outnumber private radio stations, although the number of private ones is growing and approaching the number of state-owned radio stations” (Sennitt, 2009). As such, there is an opportunity to establish commercial radio station in the Middle East. Demographics             Basically, anyone who owns a radio or have a computer and Internet access at home can listen to the radio traditionally or virtually. Baby boomers tend to listen more on the former while Generations X and Y listens on the latter. On Internet radio, downloads of music on mobile phones and iPods are possible. Geographical market             The radio station should first cater to the Middle East market prior to extending services on other areas outside the region.   Marketing Strategies and Implementation             The business will be driven by press releases, expo/exhibit participation and word of mouth. The target markets are Generations X and Y and secondarily the baby boomers. Fresh music from pop to cultural to ballads, the radio station should offer a wide array of musical inspiration. The radio station will be positioned as a full-pledged entertainment radio station that caters to the diverse musicality of the Middle East. When it comes to the distribution strategy, the radio will be the key distribution channel which is planned streamed online.   Promotion Strategy             Promotion strategies depend on the requirement of the target market. Initiatives, nonetheless, will center on creating awareness of the existence of the radio station. Conventional advertising will be sought to increase brand recognition. Classified newspapers will be used four times a month for twelve months. Press releases will be also implemented, focusing on the strength of the radio station and how it would succeed the competition. Sponsoring musical events especially on Universities in the Middle East could be also strategic for the radio station. This is a low-cost way of increasing awareness while also building goodwill to the community.             A streamlining website will be created for the radio station so that it can also compete in the Internet radio industry. Basic information about the music will be provided as well as the lyrics and downloads page. Traffic and brand exposure could be achieved using this medium. The radio stations logo will be also displayed for one calendar year on appropriate websites including the music authority in the Middle East and concert pages.   Evaluation and Control Strategies Objectives will be established for the radio station so that actual performance can be measured against them. Each subsequent year, new objectives will be set for these benchmarks and actual performance will be then measured against them. In terms of promotion, it will be obtained from the listeners the information on how and where they learn about the radio station so that the effectiveness of promotion strategies could be evaluated.   Financial Projections Each subsequent year’s budget should adjust spending accordingly. There will be developmental and general operating expenses for the radio station. Funding will be achieved through donors. Advertising rates will be initially offered at low prices to build up the advertising relationship.   References Sennitt, A 2009, ‘Middle East FM radio broadcasting services boom,’ Media Network.

Business Plan for Radio Station

Business Plan for Radio Station Situational Analysis The radio industry in the Middle East is composed of public s...

Intended Investment Of Medical Device: Modern Infusion Pump To Facilitate Daily Practice

Intended Investment of medical device: modern infusion pump to facilitate daily practice 1. A Business case- Report Style ²  Executive Summary The main goal of this paper is to provide a business plan and feasibility studies on the benefits of the intended investment on medical device. This medical device is the is the modern infusion pump to be able to facilitate daily activities and practice on health care organisation and providers. In this analysis, the SMART objectives are considered as well as the strategic objectives for the investment. The paper discussed the feasibility of the investment through different analysis like stakeholder analysis, benefits analysis and financial feasibility. In addition, this paper also discussed the options that can be considered to find means and ways to fund the new investment. By and large, it can be said that with the help of different organisations, public, private or even non-government organisations, the investment of this modern device can be feasible. ²  New investment Title/Introduction/Background      A business analysis and investigation is an significant and valuable tool to enable the health care organisations to evaluate the viability of starting new investment to provide better health care services. It gives significant and valuable information required to make the critical decision of whether to go forward with the new investment or not. The main objective of this business analysis is to ensure that the health care institution is on the right track.  The aim of this analysis is to assure that the health care organisation will be able to identify whether or not to proceed with a new investment and to identify any significant and valuable risks associated with the new investment. The feasibility of these new health care investments can be ascertained in line with the technical aspects, economic aspects or both (Shaw, 2001). In establishing a new investment, one of the most significant and valuable business aspects which should be considered is the financial capabilities of the organisation. In this particular report, being able to recognise the needs of health care institutions to meet the needs and improve the hospital environment by facilitating more their daily practice, the health care authorities is trying to do it by considering different options. Primarily, the main goal of this report is to provide an analysis on the plan of the health care providers to invest in medical device such as modern infusion pumps. This paper will also consider the benefits of this investment, the funding approach to be considered, and provide strategic objectives. 2 New investment Objectives             The main goal of this new investment is to determine which approach will be useful for the Health care organisation in investing on a new medical device; which is the modern infusion pumps.  It can be considered that the objective of this investment is SMART. Accordingly, SMART means that the objective should be specific, measurable, achievable, realistic, and timed. Herein, it can be noted that objectives set by the Health care organisation varies and in this case the focus is to invest on a new medical device, which is the modern infusion pumps. In addition, it is also specific since it the objective is only addresses the facilitation of the daily practice of the health care providers to assure better health care service.. The objective of this program can also be considered as measurable since it is easy to understand and comprehend. This objective is planned to implement for 5 years time. 3 Health Care Authorities             Health Care organisations aim on managing the health of the patients and other individuals. The organisation is the one which provides health care services and assures that hospitals and healthcare organisations adheres to the quality and standards in securing the health status of HK people. In addition, they are also responsible for knowing what should be given values in specific hospital and provide effective new investment to solve this issue.  With the aim of the healthcare organisation to provide better health care services among their patients, the authorities are trying to invest for a new medical device which is the modern infusion pump to be able to facilitate daily practice.  Changes has been considered on different organisations with the aim of the management to provide better and quality services and to adhere to their responsibilities and obligations in giving quality health care services.  The concern of changes in the investment of new medical device is to facilitate the health care provider’s practice. Accordingly, the modern infusion pumps are designed not only to pump fluid but also to be utilised as a medium in making the clinicians and health care providers work simpler and to help in securing accuracy. The modern infusion pumps that can be considered may include those with the dose/rate calculation as well as transcription type data entry errors.  There are also other infusion pumps which provide drug labels that enable to reduce titration errors. Even if these tools are aiming to eliminate errors, there are still some errors that can occur if the calculation features are not simple to use and do not display the computation, drug label and even the infusion information accurately. 4 Stakeholder Analyses             This part will provide stakeholder analysis to know which among the stakeholders have a high involvement, interest, influence, significance, and impact in the new investment. Table 1 Stakeholder Analysis 		 		Stakeholder 		 		 		Involvement in Issue 		 		 		Interest In Issue 		 		 		Influence. Power on 		outcome 		 		 		Significance to SH 		 		 		Impact on SH 	 		 		Direct 	 		 		Patients 		 		 		 		The patients are the 		main target of the new investment 		 		 		Medium-High 		 		 		Low 		 		 		Very Significant and 		valuable 		 		 		Medium-high 	 		 		Government/Department 		of Health 		 		 		They provide financial 		support for the patients 		 		 		High 		 		 		High 		 		 		Very Significant and 		valuable 		 		 		High 	 		 		HK Hospital Authority 		 		 		Coordinate with the 		government and hospital needs. 		 		 		High 		 		 		High 		 		 		Very Significant and 		valuable 		 		 		High 	 		 		Indirect 	 		 		Non-Government Health 		Organisation 		 		 		The non-government 		organisation can coordinate with HA to help patients  in terms of 		financial aspects 		 		 		Medium-High 		 		 		Medium High 		 		 		Significant and 		valuable 		 		 		High 	 		 		Family of the patients 		 		 		The family are the one 		who will shoulder the financial needs of the patients in case the 		government decided to stop supporting the patients. 		 		 		High 		 		 		Low 		 		 		Significant and 		valuable 		 		 		Low 	 		 		Interested/Affected 	 		 		Educational institution 		 		 		Can help in 		disseminating information regarding the significance of the modern 		infusion pumps in health care provision 		 		 		Low 		 		 		Low 		 		 		Significant and 		valuable 		 		 		Low 	   In this proposed hospital new investments the potential stakeholders include the hospital administration, community health organisations, HK government, the patients, funders and HK government health regulators as well as the policy makers. It can be said that different stakeholders have varying amounts and kinds of power and those with the greatest influence are able to shape a strategy from a number of decisions (Shafrits & Ott, 2001). The stakeholders are given the outmost authority in any organisational setting, like in this case the investment for new medical device which is the modern infusion pumps. Their power and significance is beginning to gain slighter advantage as compared to an organisation’s management team. Stakeholders also provide a diverse influence to both kinds of organisations and they guide the people in the organisation so that the goals will be met. In this regard, the stakeholders for this proposed new investment can be considered as significant for the decision making of pursuing the new approach considered by health care organisation to invest on a new medical device; which is the modern infusion pumps in the hospitals and clinics. According to Johnston & Clark (2001), product and service design involves translating stakeholder needs into service requirements, formulating quality goals and cost target, documenting specifications, refining existing products and services, and developing new ones as well.  With these, stakeholder analysis, the hospital management can be able to change the new approach considered by the health care providers to invest on a new medical device, which is the modern infusion pumps to meet the needs and demands of the stakeholders and most especially the patients. 5 Identifying Approach and Financial Appraisal             5.1 Approach or Option Identification This part of the new investment will provide the financial appraisal for the options provided. This new investment will consider three options. Table 2 		 		Options and Benefit 		analysis 	 		 		Option A 		 		 		Do nothing 		 	 		 		Option B 		 		 		Encourage health care 		authorities to consider the investment for modern infusion pumps. 		 	 		 		Option C 		 		 		Encourage health care 		providers to participate in the initiation of the project. 	   The first option for this new investment is to do nothing. This means that the health care organisations will choose to ignore the issue and continue to provide health care service in risks. The second option is to encourage health care authorities to consider the investment for modern infusion pumps to facilitate daily practice and activities and reduce risks because of inaccuracy and the last option is to encourage the health care providers to participate in the initiation of the project. 5.2 Financial Appraisal                 There are different means and ways and approaches on identifying the feasibility of the implementation for the new project or investment on a new medical device, which is the modern infusion pumps in one of the health care organisation. In this regard, this financial analysis would consider the Cost-benefit analysis. Cost-Benefit framework needs a well-informed respondent or group to give subjective information about characteristics of the project under consideration. This approach typical prevent economic data (Hanley, Ryan & Wright, 2003), such as projected sales, profit margins, as well as costs, but rely more on subjective assessments of strategic variables, such as fit with corporate objectives, competitive advantage, and market attractiveness. Included in this category are checklists and their extension, scoring models (Cooper 1993, p.170). Cost benefit methods and approach rely on the subjective inputs of characteristics that are likely to be known. In Cost benefit analysis, all costs and benefits are measured and compared in monetary terms (Smith, 2003).             The Cost benefit analysis for the implementation of the investment on new medical device in HK hospital is shown below.             		 		The new approach 		considered by HA on a new medical device, which is the modern infusion 		pumps 		 		 		Costs 	 		 		Other management approach 		cost and fund raising approach to collaborate with potential 		organisations 		 		 		HK .2 million 	 		 		New hospital care approach 		for the new approach considered by HA on a new medical device, which is 		the modern infusion pumps. 		 		 		HK 0, 000 	 		 		Other Costs 		 		 		HK 0, 000 	 		 		Total Costs 		 		 		HK1.9 million 	 Benefits: ·         Ability to prevent more risks due to incorrect calculations which provides burden faced by the government with hospital fee/ , 000/ year ·         Expanding and extending better health care provision /0 000/ year <ul type="disc" style="margin-bottom: 0in"><li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> 	Improved efficiency and 	reliability of the services extended to patients: estimate: .7 million/ 	year </li> 	<li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> 	Improved patient service and 	retention: estimate: 0,000 / year </li> 	<li class="MsoNormal" style="color: #333333; text-align: justify; line-height: 200%"> 	More ability to manage 	hospitals sales effort: 0,000 / year </li> </ul> Total Benefit: HK .22 million /year Payback time: .8 million / .22 million = 1.7 of a year = approx. 20 months   The payback time is also known as the break even point of the analysis.  Herein, it is significant than the overall benefit of a service can deliver. As expected, the estimates of the benefit given by the new investment  can be noted as quite subjective. In spite of this, the management of the hospitals in cooperation with the Hospital Authority is very likely to pursue the implementation, given the short payback period. 7.0 SWOT Analysis             This part of the business deals with the assessment of the internal and external capabilities of the Hospital Authority to implement the new investment and the proposed options SWOT chart 		 		 		 		Strengths 		 		 		 		 		Weaknesses 	 		 		-       		The Health Care 		organisation has the ability to coordinate this financial management new 		investment to government and patients to whom the new investment is 		targeted. 		 		-       		The Hospital 		Authority has the ability to use all their skills to solve the financial 		issue with the investment on a new medical device, which is the modern 		infusion pumps. 		 		 		-       		Inability of the 		authorities to properly and effectively choose the option to solve 		financial issue 		 		-       		Lack of a more 		comprehensive and understandable new investment plan for financial 		management which may be applicable to all hospitals. 		 		  	 		 		 		Opportunities 		 		 		Threats 	 		 		-       		If done and 		executed effectively, there are big chances of reducing the cost spend 		by the government with the investment on a new medical device, which is 		the modern infusion pumps 		 		-       		The hospital 		authority and the government will have the assurance that budget are 		equally allocated among hospital organisation 		 		-       		The health 		authorities will also have the assurance that through this new financial 		management approach, patients and government will be benefited. 		 		 		-       		The threat is the 		inability of the authorities to effectively implement the new financial 		management option which may affect its objective. 		 		-       		Lack of adherence 		of hospital authority and patients to the new financial management 		approach which may lead to not achieving the standards goal. 		 		-       		Lack of funds and 		budgets of different hospitals that will support the objectives and aims 		of pursuing the selected option. 		 		-       		Inability of the 		authorities to properly implement such standards due to mismanagement. 	   8.0 Conclusion Strategy to gather Enough Funding to pursue the service             In order to pursue the new approach considered by hospital organizations to invest on a new medical device, which is the modern infusion pumps health care providers, the management and the healthcare professionals should be able to gather enough funding. In this regard, there are many means and ways that the hospital can be considered to implement the said investment on new medical device.             One of which is through the help of the local government of Hong Kong. Local government and communities is a large portion of the overall health care safety net in Hong Kong, giving direct-care services and funding such items as public hospitals, transportation, educational outreach, and housing subsidies (Ketchum, 2001). Government agencies are established at the local, state or provincial, and federal levels to provide public health services. Health agencies at the state, county, or city level vary according to the need of the area. Their funds, generally from taxes, are administered by elected or appointed officials (Kosher et al, 2004). Local health departments have accountabilities for developing projects to meet the health needs of the people, giving the necessary staff and facilities to carry out these projects, continually evaluating the effectiveness of the projects, and monitoring changing needs.  State health organisations are responsible for assisting the local health departments specifically by giving funds for investing on new medical device needed by the public. In addition, the health care organisations that will consider the investment can also raise funds and financial budgets from different non-government organisations which addresses the needs for having quality living among  patients. The finance committee can also consider some adjustments on the budget and can even seek external help from other organisations for additional funding. During the actual running of the investment on new medical device, the hospital manager must make sure that proper allocation of the budget will be provided for the investment on new medical device. With this, proper accounting of resources must be done, taking note of the progress of the new approach considered by HA to invest on a new medical device, which is the modern infusion pumps and using graphs to monitor the progression of the new investment. The finance committee of the said service can also seek help from different organisations; especially multinational organisations that are based in Hong Kong in helping them have enough budgets to pursue the new investment. Herein, the management is able to create good relationships to potential industries that would sponsor then their financial needs to pursue the new investment. Solicitation is another significant and valuable way to gather funds from private and public individuals, groups, or corporations. Reflective Commentary In this report, much has been realised and learned by the author, including significant values and principles in life. Right from the beginning, the author has learned the value of patience and perseverance to be able to succeed in this report. Patience has assisted the author to conceptualise the ideas needed for this report. Through perseverance, the author was able to formulate a report process, one that will not only benefit himself but most especially the management and employees of the health care organisations. Both these values have helped the author in gathering information, analysing results and formulating recommendations. As this report employed the different business approaches the author has learned how to be keener to in what approach to be considered. I have become more sensitive to what is going on in the health care organisations and to the people working for it and the people that receives health care services. This also has made realised the significance of being more transparent. During the, the importance of dealing with business activities effectively has been realised. Herein, the author was able to be a part of the health care organisations and health care providers as well as patients. As a result, I am able to gain the necessary information that had made this report possible.                  Much of the author’s learning is attributed to the marketing strategies used by health care organisations. One attitude that the author had identified to be significant is how the health care organisations initiate marketing to gain competitive advantage and how they adapt the technological advancement with their business approach. Being able to realise the importance of having a marketing strategy that is integrated the modern device and technology and the benefits that can be gained from using such instrument,  health care organisations has use this technique in providing health care services on their patients. The author also learned that although new investments has significant impact for marketing or promoting services of health care organisations, there are also some problems that can be encountered on using this. . From this, the author also learned the importance of prioritising the most important things. Herein, the author realised that such findings can not only be applied to our work environments or businesses but most especially to our own personal lives. Reference: Brundtland G. H. (2001) Improving health systems’ performance. OECD, p. 4 Casebeer, A.L. and Hannah, KJ. (1998). the process of change related to health policy shift: reforming a health care system. International Journal of Public Sector Management, 11 (7): 566-582. Caulfield, J. and Liu, A. (2006). Shifting Concepts of Autonomy in the Health Care  Authority. Public Organisation Review, 6 (3): 203-219. Cooper, R.G. (1993): Winning at New Products, Accellerating the Process from Idea to Launch. Second Edition, Addison-Wesley Publishing Health care organisations. Darby, M. (1998). Health care quality: From data to accountability. Hanley N, Ryan M, and Wright R, (2003) “Estimating the Monetary Value of Health Care: Lessons from Environmental Economics,” Health Economics 12: 3–16 Johnston,R and Clark, G (2001). Service Operations Management, London: Financial Times/ Prentice Hall Kosier, B. Erb, G, Berman, A. and Snyder, S. Kosier & Erb’s Fundamentals of Nursing, Concepts, Process and Practice Upper Saddle, River, NJ MacDuffie and DePoy (2004). Force Field Analysis: A Model for Promoting Adolescents’ Involvement in Their Own. Health Promotional Practice 5: 306-313 Shafrits J. M. & Ott, J. S. (Eds.). (2001). Classics of organisation theory (5th ed.). Fort Worth, TX: Harcourt College Publishers. Smith R, (2003). “Construction of the Contingent Valuation Market in Health Care: a Critical Assessment,” Health Economics (August 2003). Shaw C. (2001) External assessment of health care. British Medical Journal, vol. 322, p. 851-854               Credit:ivythesis.typepad.com

Intended Investment Of Medical Device: Modern Infusion Pump To Facilitate Daily Practice

Intended Investment of medical device: modern infusion pump to facilitate daily practice 1 . A Business case- Report Style ² Execut...