Analysis of Financial and Non-Financial Aspects: Management Report

This management report provides a comprehensive analysis of financial and non-financial aspects related to an investment in Early Onset Dementia (EOD) treatment. It explores financial risks like liquidity, credit, and interest rate risks, and non-financial risks such as business and strategic risks. The report includes a detailed business case, breaking down costs into variable and fixed categories, and outlines potential funding sources. It also analyzes the benefits of the investment, emphasizing the importance of a supportive environment and preventative measures for dementia patients. The report concludes with recommendations for healthcare organizations to improve patient care and maximize the effectiveness of their services. The report emphasizes the importance of a well-defined budget, and highlights the necessity of continuous monitoring to ensure the success of the project. The report is aimed at providing comprehensive information to support decision-making and strategic planning within the healthcare sector.

Management Report

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Critically analyse financial or non financial aspect of the organization along with financial
risk analysis..................................................................................................................................1
2. Business case which include breakdown cost and its types and behaviour.............................3
3. Recommendation.....................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Management report is the combination of all the information which include the business
aspects which helps in taking better decision. This report include various information from the
different department by using key performance indicator organization able to convert data in
more understanding way (Abuse, 2013). It further helps the manager or top management to
develop strategy and taking effective decisions. New Life Foundation Trust and Gill County
Council Social Services are jointly investment to support EOD treatment. This report include the
various topic which helps in analysing various aspects of financial or non financial. Along with
develop proposal for funding which include financial risk analysis. In addition, it includes a
business case where each types of cost will be evaluated along with its behaviour. This report
also include recommendation in order to improve organizational activities to maximise
productivity or profitability.
MAIN BODY
1. Critically analyse financial or non financial aspect of the organization along with financial risk
analysis
Every organization contain risk at the time of investment in the new project and this risk
would be in terms of financial or non financial aspect. As per the given scenario Gill County
Council Social Services and New Life Foundation Trust assign 10 EOD (Early Onset Dementia)
patient for each clinic. They providing funding to incorporate the clinic and for this they required
full day available space for handling patient, two social workers, senior doctors, two senior
practice nurses and five ancillary staff. These people required to complete their task and to fulfil
their need they required funding. Total equipment cost of two clinic per week is about £20,000
and it will be renewed every five years. At the time of implementing both foundation could face
financial or non financial risk which is discussed below:
Financial risk: It is basically involved with the finances of the organization which
include different types of transaction where defaulters are created due to non payment as well as
company loan. Financial include various risk such as credit risk, inflation risk, exchange,
liquidity risk etc. Some of the financial risk discussed below:
 Liquidity risk: Under this risk, when healthcare organization not able to perform their
task due to lack of liquidity of cash. So it will generalised as liquidity risk and in
1

healthcare sector not provide suitable service as per the patients requirement and loosing
customer due their poor quality services (Guo and et.al., 2012). In context of New Life
Foundation Trust and Gill County Council Social Services provide funding so they
ensure that they avoid liquidity risk in order to achieve high efficacy as well as
effectiveness.
 Credit risk: It includes the risk from the customer's side where they have obligation to
pay their debt. It is related to the customer when they done default and fail to pay their
credited amount. This risk involved with sub components and it include individual loan,
market risk etc. For example: Gill County Council Social Services and New Life
Foundation Trust invest amount for Dementia Patient in order to provide them healthcare
services. So both foundation has to done credit management in to reduce market as well
as credit risk.
 Interest rate risk: Both foundation invested for the EOD treatment or if this plan fail
then there risk related to the interest rate will increase. To reduce this risk, healthcare
organization has to be successful and achieve their business goals & objectives. New Life
Foundation Trust and Gill County Council Social Services are considering regarding joint
investment for EOD patents. Before doing this, they have to analyse all the factors which
can reduce interest risk.
 Market risk: It include the movement of market where demand, desire and needs of
customer will change. If dementia care available in the market so it will reduce the
market risk for the patients otherwise it affect a lot and it required huge financial support
to deal with this disease (Lappalainen and Niskanen, 2013). For the requirement of
funding it also include the risk related to stock exchange, exchange rates, interest rate etc.
 Legal risk: It was related to the rules and regulations which is followed by the
organization. Each and every action will be done as per the regulation and it include
various legislation such as lender's ability, preference of customers, environmental
complications etc. So organization have to conduct each function as per the regulation
and legislation.
Non financial risk: It include risk which occur from the outside sources where any
action negatively affect society, any community, supplier, customers etc. These risk also have
monetary impact such as legal risk. So management concern about these risk and try to develop
2

effective strategy in order to reduce business risk. Some of the non financial risk discussed
below:
 Business risk: At the time of investing for the EOD treatment both foundation need to
evaluate that business risk is involved or not. According to one study, 62% of survey
agreed that non financial risk are more affecting rather then financial risk. This risk
involved technological, marketing, services related etc.
 Strategic risk: Under this risk change in economic or government policies will affect the
organizational and its strategy which already develop for the future aspects (McKeith and
et.al., 2017). So healthcare organization have to ensure that they already analyse the
market and develop flexible strategy which can modify as per the circumstances.
From the above discussion every organization affected from financial or non financial
risk so organization have to already develop strategy in order to face the circumstances. Before
doing any investment individual need to analyse market and its after investing impact on the
business. Along with this, they have to ensure that further investment is beneficial or not.
Financial risk analysis:
2. Business case which include breakdown cost and its types and behaviour
Business case: It is the base of project which include each and every expected benefits
of business along with expected cost and it will be analysed through gap analysis. For the
implementation of plan organization have to develop business case in order to perform their task
efficiently which increase the chances of successful project. As per given scenario Gill County
Council Social Services and New Life Foundation Trust consider investments for EOD (Early
Onset Dementia) treatment and have to develop business case for Local Council senior
management team and Foundation Trust Board.
Executive summery: This part contain the development of business case which include
the vision, mission, objective, types of cost along with its behaviour, source of funds. In addition,
it includes the budget and benefits to its users.
Vision: To provide community service to increase individual life after taking effective
services. Wants to become trusted name among the patients and become valuable partner who
provide life care services.
Mission: To become Patient central health care organization which focuses on providing
effective, excellence or quality services.
3

Objective: Is to cover whole nation and remove illness through providing quality
services at affordable range. To make UK disease free nation and become valuable health care
brand in the future.
Cost: It is the paid amount to get something in order top satisfy their needs and desire.
Usually it is in monetary form where cost generate to develop any product or services. It is the
necessary expenditure which required to generate something (Pfaff ed., 2012). In this case, both
foundation invest amount to build clinic for EOD (Early Onset Dementia). Below mention items
or expenditure required to setup clinic and provide healthcare services for the dementia
treatment. It incudes different types of cost which is seduced below:
Variable cost: It include those cost which can be changes as per the more usages for
example: In the hospital, more use of medicine will occur more cost because it will include more
wastage at the time of operation. Basically variable cost include the change in raw material,
labour working hours etc.
Fixed cost: It is the cost which is not vary for more production fort example salary of
employee will not increase due to high production. Fixed cost include employees salary, fixed
maintenance charges, monthly premium etc. In the given scenario equipments are the fixed cost
along with salary of individual (Prasad and et.al., 2017). Because it will not change if they treat
single patents or more then this. They have been paid fixed salary at the end of month which is
not regularly changed.
Expenditure Amount (£)
Two Social worker's salary (£ 500 each) £ 1000
One Senior Doctor (£ 1500) £ 1500
Two Nurses (£ 200 each) £ 400
Five staff members (£ 150 each staff) £ 750
Equipment cost £ 20,000
Total Cost £ 23,650
4

Sources of funds: To complete their operational requirement, organization have to
arrange funds from various sources and it can be possible through short term as well as long term
which is discussed below:
Short term source of finance: It is refer to the need of money for the short term period
and it will be satisfied through various way such as overdraft, trade creditors, factoring etc.
These sources are available for the maximum 1 year duration and they have to pay interest
accordingly (Shanafelt, Goh and Sinsky, 2017).
Long term source of finance: It includes the long term requirement of finance and it will
be fulfilled by various organization which provide financial helps for the longer duration. There
are various sources such as bank loan, owner's saving, debenture, equity, mortgage etc. these
sources help the organization to fulfil their requirement to perform their task and expansion of
business in order to increase market share.
From the above mention sources, Gill County Council Social Services and New Life
Foundation Trust provide funding from long term sources for the longer duration in order to
provide healthcare services to the UK's citizens. Both are taking loan from bank to invest for the
EOD treatment.
Budget: Above mention table clearly represented that foundation have to spend £ 23,650
in order to provide dementia treatment and it is the total cost. So manager need to ensure that
they have to properly follow the budget in order to maximise their profit and efficiency. By using
budgetary control method, organization try to perform each task as per the cost prescribed or if it
is not happen then profit margin will be reduced due to increase in cost. Manager have to show
their concern regarding variable cost because fixed cost will not changes.
Benefits: New Life Foundation Trust and Gill County Council Social Services both are
investing to provide treatment regarding dementia which is mental disorder. These organization
provide a proper treatment to prevent dementia through conducting various session and test to
analyse its stages of illness. Proper exercise will provide direct benefits to the brain cells through
increasing blood and oxygen flow in the body (van Dijk, van Engen and Paauwe, 2012). Regular
meet up with people will reduce its symptoms, eat healthy, manage their health problems etc.
5

3. Recommendation
As per above discussion, it has been recommendation that healthcare organization has to
adopt in order to provide effective services to the patents. Some of the recommendations
discussion below:
 Dementia mostly affected old age people so organization have to provide friendly or
family kind of environment so they feel comfortable.
 There is no specific treatment to stop dementia but there are various way to prevent such
as doing exercise, social gathering, don't smoke.
 Avoid alcohol consumption, control their wait, maintain blood pressure etc. These
factors are the point of concern which is required to done by the organization.
CONCLUSION
From the above discussion it has been concluded that management report help the
organization to include all the business activities and functions related information. It is
beneficial for the manager to develop strategy and take effective decision which can maximise
productivity as well as profitability. Along with this, every investment include the risk and it can
be financial or non- financial. So before considering any investment for the new project, manager
have to analyse the market along with all the factors which impact organization and its
operational functions.
6

REFERENCES
Books & Journals
Abuse, S., 2013. Mental Health Services Administration. Results from the, 2, p.013.
Guo, F. and et.al., 2012. Trends in prevalence, awareness, management, and control of
hypertension among United States adults, 1999 to 2010. Journal of the American
College of Cardiology. 60(7). pp.599-606.
Lappalainen, J. and Niskanen, M., 2013. Behavior and attitudes of small family firms towards
different funding sources. Journal of Small Business & Entrepreneurship. 26(6).
pp.579-599.
McKeith, I. G. and et.al., 2017. Diagnosis and management of dementia with Lewy bodies:
Fourth consensus report of the DLB Consortium. Neurology. 89(1). pp.88-100.
Pfaff, G.E. ed., 2012. User Interface Management Systems: Proceedings of the Workshop on
User Interface Management Systems held in Seeheim, FRG, November 1–3, 1983.
Springer Science & Business Media.
Prasad, M. and et.al., 2017. Mobile phone use and risk of brain tumours: a systematic review of
association between study quality, source of funding, and research
outcomes. Neurological Sciences. 38(5). pp.797-810.
Shanafelt, T., Goh, J. and Sinsky, C., 2017. The business case for investing in physician well-
being. JAMA internal medicine. 177(12). pp.1826-1832.
van Dijk, H., van Engen, M. and Paauwe, J., 2012. Reframing the business case for diversity: A
values and virtues perspective. Journal of Business Ethics. 111(1). pp.73-84.
7