Finance for Managers

Finance for Managers
1

Table of Contents
INTRODUCTION ...............................................................................................................................3
1. Assessing preferred option for the hospital by setting suitable parameters.................................3
2. Critically analyze the importance of different financial areas which hospital could consider for
decision making...............................................................................................................................3
3. Evaluating the options available to hospital on the basis of non-financial considerations .........4
4. Giving recommendations to hospital for the proposals available to it .......................................5
CONCLUSION ...................................................................................................................................5
REFERENCES.....................................................................................................................................6
2

INTRODUCTION
In business organization, it is the responsibility of manager to take suitable business
decisions by evaluating all the options available to him. Moreover, growth and success of the
business unit is highly influenced by the profit generated by the firm from different proposals. The
present report is based in Greern-acre hospice which has availability of three projects in relation to
the revenue enhancement. In this, the present report will discuss the option which hospice need to
select on the basis of financial and non-financial aspects.
1. Assessing preferred option for the hospital by setting suitable parameters
On the basis of the cited case situation there are mainly three proposals which are available
to Hospice in relation to leasing, modernization and continue up with the existing contract (Weil
and Schipper 2013). By making analysis of all the options it has been identified that Green acre
Hospice should provide lease contract to Greasy Joe's which proves to be more beneficial for it.
Moreover, by selecting such option business unit will enjoy more financial benefits in terms of
£120,000. Moreover, if medical care unit offers leasing opportunity to Starbucks then it will get
only £115,000 which is lesser than other available opportunity (Tahir and Sabir 2015). There are
several parameters which are undertaken by Green acre hospice for the selection of proposal are
enumerated below: Cost and benefit relationship: Cost is one of the main factors which place high level of
impact on revenue generated by the firm. Thus, by considering such factor proposal in
relation to offering lease to Greasy Joe's has been selected by hospice.
 Availability of financial resources: Expansion and modernization decision of the business
organization is highly affected by the extent to which they have enough amount of financial
resources. Thus, due to the limited amount of financial resources hospice has decided
leasing option rather than modernize the cafe.
2. Critically analyse the importance of different financial areas which hospital could consider for
decision making
The current Evaluation is based on identifying the tastes and preferences of several factors which
needs to be taken into account. The current evaluation method is based on the demands of all the
customers of this cafe which gives emphasises on the qualitative aspects of the overall evaluation.
The current evaluation technique is totally different from the evaluation conducted by an entity by7
focusing on the financial areas. The evaluation conducted on the spreadsheets is based on the capital
budgeting technique which will consider the time value of money that helps in determining the
future capabilities of the investment applied by an entity by leasing land for the hospital. The
3