Business Expansion Plan Development

This assignment tasks students with creating a comprehensive business expansion plan. The plan should outline the proposed new venture, estimate necessary funds, explore various funding options, and detail the appointment of qualified professionals. It also requires procuring essential equipment, securing insurance, implementing branding and promotion strategies, and establishing financial management practices.

Service Title
Business Budget Case
Student Name
Student ID
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Contents
Executive Summary.....................................................................................................3
Outline..........................................................................................................................5
Background..................................................................................................................5
The Proposal................................................................................................................6
Risks.............................................................................................................................8
Process........................................................................................................................9
Resources..................................................................................................................10
Reporting of outcomes...............................................................................................10
Financial Information..................................................................................................11
Attachment 1..............................................................................................................12
Attachment 2..............................................................................................................13
References.................................................................................................................14
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Executive Summary
In this assignment we will discuss the basis of budgeting and how they are
useful for nay organization and what is the main aim of the same. For the purpose we
will select one health organization and we will chalk out the entire budget of that
particular institution after considering all the related costs and revenue. We will fill in
the figures and will conclude a breakeven point that will help us in understanding the
rationality behind the concepts of costing and how they can be helpful for any
organization in reaching to the desired objective. The assignment is presented in a
report format and all the necessary details that are required are stated briefly. Flow
charts and other informative figures are given throughout the assignment to provide a
clear analysis and to reach to the correct result as is required out of the same.
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Outline
The main aim of this business case is to understand whether or not the new
service line that the proposed institution wants to introduce for their business is viable
or not and what are the changes that it will make in the overall revenue of the
company.
The new line to be introduced is opening of the new department for intensive
care of children who are suffering from life threatening diseases. The hospital that has
been selected for the business case is the Auburn Hospital which is one of the top
most hospital in Australia and can afford such facilities that can be imparted to young
children who are not diagnosed with severe ailments that might effective their
sensitive parts and can also cause death (Arnott, Lizama, & Song, 2017).
The new service line is important because there are not many hospitals in
Australia that is providing such kind of services to children. The children requires a
lot more care then young adults, therefore it is important that there must be a different
department that just carters to their need and provide for their treatments. It is a sad
situation now in Australia, as a large number of children are getting diagnosed with
life threatening diseases and in absence of good treatment they are not able to recover/
Most of these treatments are very expensive and it often becomes difficult for people
to afford the same by taking their children to new countries (Drew, 2017). Therefore
introduction of this new department in one of the most popular hospital in the city
might be helpful for the people residing there and the overall expenses of treatment
might also reduce with the help of the same. It will be a win situation for the hospital
and the patients as they will both be benefited with this new introduction. In this
assignment we will discuss the overall budget of the new service line with all the
details discussed briefly, we will also give in proper break even analysis to understand
whether or not the hospital will be benefited from the new introduction and what will
be the total cost and revenue that might occur (Gartland, 2017).
Background
The Auburn Hospital is one of the top class hospitals in Australia and is listed
as one of the best medical institution that provides ample services to the people of
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Australia. It is located in the Western Sydney Local Healthcare District (WSLHD). It
has more than 155 rooms and provides top class services. It has many services that
include surgical, medical and maternity services. It also has intensive care units and
other facilities. The new department to be introduced is the paediatrics department
that will deal with providing intensive care to children and infants who might be
suffering from life threatening diseases and will immediate and intensive care. The
new business case will involve making a proper proposal for setting up the new
department and the overall cost that might be involved (Mayntz, 2017). The new
department will require trained doctors and professionals who specialize in providing
treatment to the infants and also will require proper instruments that will help in
effective diagnosis of such life threatening diseases and proper machines that might
be required to provide them with the treatment. Diagnostics instruments will include
various devices like ultrasound and MRI machines, PET and CT scanners, and x-ray
machines (O’Connor & Woo, 2017). Life supporting devices like incubators and other
machines like medical ventilators will also be required that might help the patient.
Low line staff and nurses are also to be appointed to assist the doctors and to take care
of the patients. Other expenses might include maintenance of these machines, taking
care of the patients and also the expensive drug store that the hospital might need to
maintain to administer the patients and provide them with the necessary care. The
overall cost of these will be high and thus the management of the hospital needs to
make a proper budget to understand what will be the estimated cost be and how much
revenue they will generate that will help them to break even in the future and also
provide the arrangements of the necessary amount of funds is also required because
setting up new department will cost a lot of money (Tysiac, 2017). There are various
sources through which the hospital can make arrangement of the funds and it is
important to choose the best alternative so that the overall cost involved is very low
because of the same. This is the main aim of this business proposal to provide a bird
eye view of the overall expenses that the company might incur if they set up a new
department for intensive care of the children in the future.
The Proposal
The main proposal of the business case is to start a new department in the
already profitable organization for intensive care of the children that might be
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suffering from life threatening diseases and chalking out a proper budget that might
be helpful for the organization for understanding the total amount of expense that the
company might incur in the process of the same (Visinescu, Jones, & Sidorova,
2017). The main aim is to chalk in a profitable budget proposal for the company.
Aims
The main aim of the given proposal is to start a new department in the hospital
that is profitable with better services and improved management. It will be aimed that
the overall cost is low and the children who are suffering from life threatening
diseases will get proper care in this department (O’Connor & Woo, 2017). The total
cost will be analysed along with different prospects to increase the revenue by
reducing the total cost that the company might incur in the future because of the new
department or in case the department does not functions as per the expectation level.
Any scope of contingencies will be dealt accordingly and proper recommendations for
the overall improvement will be given.
Benefits
 Efficiency gains
The main areas where the company will gain if they opt for the proposed
business plan will be increment in the overall revenue because there are no such
proper hospitals in Australia those carters to the needs of the young children and
provide them with intensive care. Most of the people have to travel to other
countries in cases where they face such situation with their children. In case there
is a proper department that provides the necessary facilities then people will come
to the hospital and thus the overall revenue will improve because of the same. The
doctors who specializes in providing such services will also be benefited as they
will get good job in a top hospital, thus the overall revenue will improve will
increase in the efficiency of the management of the institution.
 Potential savings/increased costs
The total amount of savings that will be there will be in the form of increased
revenue for the hospitals as they can employ doctors at not such high salaries as it
is a new department and also the main cost will be one time investment in all the
machines that the hospitals might require but after that the only cost that the
hospital will incur will be in the overall maintenance of the same, so we see that
the revenue will thus increase, and they can also go for donations and charity that
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will fund the initial costing and in this way there will be reduction in the overall
cost (Kohtamäki, 2017).
 What are the expected benefits of this proposal?
Factor Benefits
Patients The patients will be benefited as the overall cost of travelling to other
countries to get such treatments will be reduced as they will get such
facilities in their own country and also initial cost will also be less as it
will be a new department.
Facility The new department will carter to the needs of the children who might
be suffering from life threatening disease and provide them with
necessary amount of care (Trieu, 2017).
Clinicians The clinicians will benefit as new department will mean better job
opportunities for the doctors. Nurses and other line staff will also be
benefited will new and improved job facilities and thus will be
benefited from the new proposal. It will help in creation of jobs and
other in line services for doctors and physicians that are functioning in
Australia (Hall & Rapanotti, 2017)
Other The society will be benefited as there are so many children that suffer
from such diseases and in lack of proper services are not able to get the
desired treatments. There are no proper hospitals in Australia that
provide such services to the children and thus opening of the new
department will help in solving this problem as more and better
treatment will be easily available and people will not have to commute
to other countries. Such departments can also help in spreading
awareness against such diseases that might help in better future
prospects for the children and for the overall people
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Risks
Risk Issue Severity Impact Mitigation Plan Notes
Financial risk The hospital
might not be
able to generate
the required
amount of funds
that might be
needed for
maintenance of
these machines
and surgical
instruments, as
they are very
expensive.
This might
affect the
entire
department
severely and
also cause
shut down of
the new
department
as it is
important
that proper
instruments
must be there
so that
children can
be treated
with the help
of the same.
The hospital can
arrange for
alternative
funds from
different
sources that
might help them
in maintenance
of their
equipments.
They can also
take equipments
on lease in case
they don’t have
enough money
to support the
system and buy
new
instruments.
The hospitals
can also
arrange for
professionals
that might
help them in
easy
management
of their funds
and to reach to
a breakeven
point.
Patients There might be
chances that
because the
department is
new the patients
won’t be very
keen on using
the proposed
services of the
hospital.
This might
affect the
overall
revenue as
the hospital
will not get
enough
patients so
that will
mean less
revenue and
that might
affect the
The hospital can
arrange for
effective
sessions that
might help in
generating
assurance in the
patients with
regard to the
new
department.
They can also
give discounts
The main aim
must be to
provide top
class facilities
at reasonable
cost so that
people avail
these services
and that might
help in
providing
some relief to
the children
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Risk Issue Severity Impact Mitigation Plan Notes
overall
proposal.
initially that
might help them
in providing
better facilities
at low cost thus
generating
better revenue
in the future
with increased
number of
patients.
who are
suffering from
such ailments.
Insurances There might be
chances that the
insurance
companies do
not pay the
proposed
insurance
amounts in the
future in cases
where there is
lack of safety
blankets.
This might
affect the
organisation
financially
and make it
more prone
to different
types of risk
that it might
face in case
there is any
breakdown in
the system or
machine
failure occurs
(Flicker,
Tamizhmani,
& Moorthy,
2017).
The hospital can
take
professional and
legal help so
that they get
their insurance
covers and
should pay all
the insurance
charges
regularly to
avoid any kind
of issues in the
future.
The insurance
formalities
must be
completed
before hand
and it should
be seen that
timely audit
and checks are
done to make
sure that
proper
controls are in
place to save
the company
from any
unforeseen
circumstances
in the future.
Other The hospital
might also face
other risks like
This might
affect the
functioning
The hospital can
make
arrangement for
The hospital
can also try for
getting better
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Risk Issue Severity Impact Mitigation Plan Notes
lack of proper
professionals
and other in line
service staff that
might provide
better services to
the organisation
and are expertise
in their field.
of the overall
department
of the
company, in
case there is
lack of
trained
professionals.
providing better
training
opportunities so
that better
facilities can be
provided to the
children.
trained
professional
from other
parts of the
world by
providing
them with
lucrative
services and
can also
appoint them
as part time
professionals
and pay them
accordingly.
Process
 Action (insert as a flow chart as attachment 1)
The plan will start with initiating the proposed budget for the given business
case and recruitment of trained professionals and service staff who will take care
of the children and their need. A finance professional will be appointed to take
care of the overall financial needs of the institution and make the necessary
recommendations for easy recruitment of funds and management of the same. A
team will be appointed for effective branding and strategising so that more people
get aware about the new services that the company has to offer also the total cost
for each of them will be shown. A flow chart is attached below to give a bird eye
view of the proposal made (Drew, 2017).
Resources
The main resources that the company will require will be enough funds to
make arrangement for the necessary funds for management of the given department of
the company and procurement of the necessary medical instruments that they might
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require. Other resources that will be required will be trained professionals and service
staff that will help in catering to the needs of the patients (Breuer & Archer, 2016).
Reporting of outcomes
The overall outcome of the proposal will be monitored by the finance
professionals and the management of the hospital who will see whether or not revenue
is generated as desired from the proposed business plan.
Financial Information
The overall total cost of the project with the expected amount of cost and revenue is
attached hereunder in the attachment 2
Attachment 1
Attachment 2
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Step 1: It will include making the new
proposed plan for the business plan and
estimating the total amount of funds that
might be required by the company for
the same.
Step 2 : It will include choosing the best
alternative for generation of the funds and
appointing trained professionals that will
carter to the needs of the patients.
Step 3 : It will include getting the desired
equipments for the new department and
making sure that proper insurance facilities
are availed to mitigate the risk.
Step 4 : It will include making way for proper
branding and promotion that will help the
company and also appointment of
professional for management of the funds.
and s

Expenses Particulars
Yearly
Cost Income
year 1 year 2 year 3 year 4
Staff costs
10xNurses @ 40
x8hrs x 365 days 116800
Patient
revenue 1800250 1205500 1450000 1600000
Weekly Oncosts 15% 120000
Consumables
cost of surgical
instruments 450000
Maintanence cost
of the instruments 200000
Electricity 5000 per month 60000
Water 2000 per month 24000
Admin support
4 FTE @ 24.00 x
8 x 365 70080
Rent on Building 5000 per week 260000
Depreciation on equipment 200,000* x 20% 40000
1340880 1002500 1205500 1450000 1600000
break even point year 3
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References
Arnott, D., Lizama, F., & Song, Y. (2017). Patterns of business intelligence systems
use in organizations. Decision Support Systems, 97, 58-68.
Drew, J. (2017). IASB proposes changes around accounting policies and estimates.
Journal Of Accountancy.
Gartland, D. (2017). The importance of audit planning. Journal Of Accountancy.
Hall, J., & Rapanotti, L. (2017). A design theory for software engineering. Information
and Software Technology, 87, 46-61.
Kohtamäki, M. (2017). Real-time Strategy and Business Intelligence: Digitizing
Practices and Systems. Finland: Palgrave Macmillan.
Mayntz, R. (2017). Networked Governance. Springer.
O’Connor, J., & Woo, J. (2017). Proactive Approach to Engineering and Design
Deliverables Quality Enhancement. Journal of Management in Engineering,
33(4).
Trieu, V. (2017). Getting value from Business Intelligence systems: A review and
research agenda. Decision Support Systems, 93, 111-124.
Tysiac, K. (2017). Tactics for driving quality in a single audit. Journal Of
Accountancy.
Visinescu, L., Jones, M., & Sidorova, A. (2017). Improving Decision Quality: The Role
of Business Intelligence. Journal of Computer Information Systems, 57(1), 58-
66.
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