Documentation New Perspectives Excel 2019 | Module 9: SAM Project 1a Mount Moreland Hospital PERFORM FINANCIAL CALCULATIONS Author: student name Note: Do not edit this sheet. If your name does not appear in cell B6, please download a new copy of the file from the SAM website. Loan Payments Mount Moreland Hospital - Neighborhood Nurse Van Loan Conditions and Payments Conditions Equipped Van Loan amount (pv) 4,000 Annual interest rate 4.35% Monthly interest rate (rate) 0.36% Loan period in years 5 Loan period in months (nper) 60 Monthly payment (,347) Start date of loan 1/4/22 Annual Principal and Cumulative Interest Payments Year 1 Year 2 Year 3 Year 4 Year 5 Months Total Interest ERROR:#NAME?

Principal

Documentationnew Perspectives Excel 2019 Module 9 Sam Project 1amou

Documentation New Perspectives Excel 2019 | Module 9: SAM Project 1a Mount Moreland Hospital PERFORM FINANCIAL CALCULATIONS Author: student name Note: Do not edit this sheet. If your name does not appear in cell B6, please download a new copy of the file from the SAM website. Loan Payments Mount Moreland Hospital - Neighborhood Nurse Van Loan Conditions and Payments Conditions Equipped Van Loan amount (pv) $234,000 Annual interest rate 4.35% Monthly interest rate (rate) 0.36% Loan period in years 5 Loan period in months (nper) 60 Monthly payment ($4,347) Start date of loan 1/4/22 Annual Principal and Cumulative Interest Payments Year 1 Year 2 Year 3 Year 4 Year 5 Months Total Interest ERROR:#NAME?

Principal $0 Principal remaining $234,000 $234,000 $234,000 $234,000 $234,000 Remaining % ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!

Depreciation Mount Moreland Hospital - Neighborhood Nurse Van Depreciation Van with Medical Equipment Long-term assets (cost) $ 234,000 Salvage value (salvage) $ 37,440 Life of asset (life) 7 Straight-Line Depreciation Year Annual depreciation Cumulative depreciation $0 ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!

ERROR:#VALUE! Depreciated asset value $234,000 ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE! ERROR:#VALUE!

ERROR:#VALUE! ERROR:#VALUE! Declining Balance Depreciation Year Annual depreciation Cumulative depreciation $0 $0 $0 $0 $0 $0 $0 Depreciated asset value $234,000 $234,000 $234,000 $234,000 $234,000 $234,000 $234,000 Yearly depreciation allowance for the first year: Yearly depreciation allowance for the last year: Earnings Projections Mount Moreland Hospital - Neighborhood Nurse Van Earnings Projections Income Municipal grants $ 25,000 $ 40,000 Federal grants 72,,,,,000 Insurance reimbursements 345,,000 Total Revenue $ 442,000 $ 58,000 $ 58,000 $ 55,000 $ 645,000 Expenses Supplies $ 108,000 $ 110,000 $ 112,000 $ 115,000 $ 118,000 Pharmaceuticals 127,,,,,500 Payroll 140,000 Maintenance 2,,,,,000 Insurance 2,,,,,100 Advertising 10,,,,,500 Total General Expenses $ 390,800 $ 255,425 $ 260,050 $ 266,475 $ 272,100 Initial Earnings $ 51,200 $ (197,425) $ (202,050) $ (211,475) $ 372,900 Projected Revenue Income Revenue Trend Revenue Months in Operation Revenue Monthly Revenue Projections Month Month Number Revenue Jan ,443 Feb ,967 Mar ,268 Apr ,665 May ,775 Jun ,834 Jul ,995 Aug ,935 Sep ,021 Oct ,566 Nov ,775 Dec ,756 Jan ,012 Feb ,345 Mar ,552 Apr ,207 May ,113 Jun ,765 Jul ,599 Aug ,215 Sep ,750 Oct ,154 Nov ,205 Dec ,450 Jan ,599 Feb ,702 Mar ,998 Apr ,012 May ,175 Jun ,998 Jul ,765 Aug ,248 Sep ,060 Oct ,621 Nov ,987 Dec ,958 Jan ,155 Feb ,014 Mar ,109 Apr ,121 May ,342 Jun ,695 Jul ,992 Aug ,622 Sep ,252 Oct ,013 Nov ,211 Dec ,001 Jan ,225 Feb ,100 Mar ,225 Apr ,026 May ,245 Jun ,875 Jul ,765 Aug ,232 Sep ,012 Oct ,187 Nov ,675 Dec ,412 Investment Mount Moreland Hospital - Neighborhood Nurse Van Investment Returns Investor Repayment Schedule Payments Net Cash Flow Startup $ (165,000) $ (165,000) Year 1 25,,000) Year 2 32,,500) Year 3 35,,000) Year 4 40,,500) Year 5 41,,000 Year 6 40,,000 Desired rate of return 7.30% Present value Net present value $ (165,000) Internal rate of return Essentials of Management 10e by Andrew J.

DuBrin CHAPTER 4 Essentials of Planning and Strategy 1 © 2017 Wessex Press, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Three Types of Planning Strategic planning establishes master plans that fit the destiny of the firm. Tactical planning translates strategic plans into specific goals for organizational units.

Operational planning identifies the specific procedures and actions required at lower levels in the organization. Both tactical planning and organizational planning support the strategic plans. 2 © 2017 Wessex Press, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

A General Framework for Planning Strategic planning shapes the destiny of the firm. Tactical planning translates strategic plans into specific goals and plans for organizational units. Define the present situation (includes examining internal capabilities and external threats and opportunities). Establish goals and objectives (a starting point for planning). Analyze the environment to forecast aids and barriers to goals and objectives (helps predict factors that will foster or hinder attaining goals).

3 © 2017 Wessex Press, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. A General Framework for Planning, continued Develop action plans for reaching goals and objectives (without action plans, goals may not be attained). Develop budgets (most action plans require money, so realistic budgets have to be developed).

Implement the plans (plans are often developed then forgotten). Control the plans (plans may not always proceed as conceived, and corrective action may be necessary). 4 © 2017 Wessex Press, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

A General Framework for Planning, concluded Make contingency plans (develop an alternative in case the original plan cannot be implemented successfully or at all). Contingency plans can be triggered into action in early in the planning process if deviations are detected. Exit strategy might be part of the contingency plan. 5 © 2017 Wessex Press, Inc. All Rights Reserved.

May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Development of Business Strategy Business strategy develops from planning, leading to vision, mission, and policy. Best strategy may emerge from organization having a grand purpose. A vision is idealized picture of organization’s future. A mission identifies firm’s purpose, and where it fits into the world.

Strategy can also come from inspired thinking. Plans are sometimes developed to attain strategy. Corporate values can influence strategy. 6 © 2017 Wessex Press, Inc. All Rights Reserved.

May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Development of Business Strategy, continued Important to get managerial workers to think strategically and wonder about firm fitting its environment and adapting to the future. Strategically-minded worker thinks, “How does what I am doing right now support corporate strategy?†Study with upper-level leaders found that global work experience was associated with stronger tendency to think strategically. Self-quiz in Figure 4-3 deals with strategic thinking. 7 © 2017 Wessex Press, Inc.

All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Development of Business Strategy, continued Several symptoms of a strategic thinker (Figure 4-3) “I often think about the meaning and implications of news stories.†“I think the most successful people fields are visionaries.†“I do not like to argue with an instructor about what should be the correct answer to a multiple choice question.†(ïŠ) “I am a ‘big picture’ thinker.†8 © 2017 Wessex Press, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

The Development of Business Strategy, continued Three major approaches to developing strategy are presented next. Gathering multiple inputs to formulate strategy (a wide range of parties at interest are consulted). Crowdsourcing can be useful for gathering multiple inputs. Analyzing the realities of the business situation (strategist must make valid assumptions about the environment). 9 © 2017 Wessex Press, Inc.

All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Development of Business Strategy, continued Performing a SWOT analysis (considers the strengths, weaknesses, opportunities, and threats in situation). Preparing for analysis (be clear about what you are doing and why). Conducting the analysis (good points, internal strengths, risks, internal weaknesses, opportunities, threats).

10 © 2017 Wessex Press, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Development of Business Strategy, concluded Ask five strategic questions and take risks. What business or businesses should you be in?

How do you add value to your businesses? Who are target customers for your business? What are you value propositions for customers? What capabilities are essential for adding value and differentiating their value proposition? Whatever method is used to develop strategy usually results in taking risks and facing the unknown.

11 © 2017 Wessex Press, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Levels of Business Strategy Corporate-level strategy concerned with total direction of enterprise and selection of businesses. Business-level strategy focuses on how to compete in each of the businesses.

Functional-level strategy specifies actions to implement above two strategies. Functional managers and other workers should support corporate-level and business-level strategies. 12 © 2017 Wessex Press, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Types of Business Strategies Strategic alliances (share resources with other company to exploit a market opportunity) Diversification of goods and services (serves as a hedge in case the market for one group of products or services softens) Sticking to core competencies (company must guard against spreading itself too thin) Product differentiation (find a niche or offer a product or service perceived as different from available alternatives) 13 © 2017 Wessex Press, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Types of Business Strategies, continued Focus (organization concentrates on a specific regional or buyer market) Cost leadership (provide a product or service at a low price in order to gain market share, Amazon.com, and Dollar General included) Find and retain the best people (the way to build a great company is find and retain great people) Strategies must be selected carefully, given a chance to work.

Changing circumstances may require change in strategy. 14 © 2017 Wessex Press, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Strategy Execution through Operating Plans, Policies, Procedures, and Rules Plans, policies, procedures and rules convert strategic plans into action.

Operating plans enable strategic plans to alter destiny of the firm. Policies are general guidelines to follow for making decisions and taking action. Policies support strategic plans in every area of the organization. 15 © 2017 Wessex Press, Inc. All Rights Reserved.

May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Operating Plans, Policies, Procedures, and Rules, continued Procedures establish a customary method of handling future activities. State specific manner for accomplishing an activity. Rules are specific courses of action or conduct that must be followed. Rules should fit the strategic plan.

Policies, procedures, and rules protect company assets, guide worker actions. As such they are not simply bureaucratic busywork. 16 © 2017 Wessex Press, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Management by Objectives: A System of Planning and Review MBO is a systematic application of goal setting and planning to help individuals and firms become more productive. Establish organizational goals. Establish unit objectives. Review group member’s proposals. Negotiate or agree (with subordinate).

Create action plans to achieve objectives. Review performance. 17 © 2017 Wessex Press, Inc. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.