Finance for Strategic Managers Report
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This report analyzes the financial and non-financial aspects of Greenpark Hospital's decision to provide car parking facilities. It examines three proposals, focusing on the financial performance comparison, the importance of various financial areas (fund requirements, financial statement analysis, cost-profit-volume relationship, and profit planning), and non-financial considerations like project feasibility, sustainability, and durability. The report recommends using investment appraisal techniques and suggests that leasing the land from National Car Park (NCP) is the most beneficial option due to its financial advantages and alignment with the hospital's non-financial priorities, such as maintaining green space. The report concludes that a combination of financial analysis and consideration of non-financial factors is crucial for effective business decision-making.

FINANCE FOR STRATEGIC
MANAGERS
MANAGERS
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TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
1. Stating the parameters considered by Greenpark Hospital while selecting the proposal .......1
2. Analyzing the importance of different financial areas............................................................2
3. Analyzing and evaluating the options which are available to the hospital and non-financial
consideration which company needs to follow in decision making............................................3
4. Recommending the ways through which hospital can evaluate the project............................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7
INTRODUCTION ..........................................................................................................................1
1. Stating the parameters considered by Greenpark Hospital while selecting the proposal .......1
2. Analyzing the importance of different financial areas............................................................2
3. Analyzing and evaluating the options which are available to the hospital and non-financial
consideration which company needs to follow in decision making............................................3
4. Recommending the ways through which hospital can evaluate the project............................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7
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INTRODUCTION
Strategic finance manager of the firm plays a vital role in making effectual business
decisions. The main purpose behind their role play is to make proper contribution in the
attainment of goals (Bamber and Parry, 2014). This project is based on the case scenario of
Greenpark hospital trust (GHT) which offers care services to the customers. This report describes
the proposal which firm needs to undertake for providing the effective parking facility to the
customers on the basis of some parameters.
1. Stating the parameters considered by Greenpark Hospital while selecting the proposal
According to the cited case scenario, there are three proposals which are available to
Greeparks hospital for the car parking facility. From the three proposals, hospital needs to give
tender to the national car park which proves to be more beneficial for the business unit or
organization. Moreover, by giving contract to the National Car Park (NCP), trusty would
generate the revenue of £70,000. In addition to this, NCP will incur cost which is to be required
for converting land from its current statue to the car park on the basis of case scenario which is
mentioned in appendix.
Parameters which are undertaken by the hospital for the evaluation of different proposals
are enumerated below:
1. Comparison of the financial performance is undertaken by Greenpark hospital. Moreover,
investment decision of the firm is highly dependent upon the money which is available
within the business organization (Ghaffour, Missimer and Amy, 2013).
2. By making assessment of the costs and benefits which are associated with all options,
hospital has chosen proposal 2.
3. Availability of the financial resources is also the main factor which is considered by the
firm while making decisions in relation to the car parking facility (Droms and Wright,
2015).
1
Strategic finance manager of the firm plays a vital role in making effectual business
decisions. The main purpose behind their role play is to make proper contribution in the
attainment of goals (Bamber and Parry, 2014). This project is based on the case scenario of
Greenpark hospital trust (GHT) which offers care services to the customers. This report describes
the proposal which firm needs to undertake for providing the effective parking facility to the
customers on the basis of some parameters.
1. Stating the parameters considered by Greenpark Hospital while selecting the proposal
According to the cited case scenario, there are three proposals which are available to
Greeparks hospital for the car parking facility. From the three proposals, hospital needs to give
tender to the national car park which proves to be more beneficial for the business unit or
organization. Moreover, by giving contract to the National Car Park (NCP), trusty would
generate the revenue of £70,000. In addition to this, NCP will incur cost which is to be required
for converting land from its current statue to the car park on the basis of case scenario which is
mentioned in appendix.
Parameters which are undertaken by the hospital for the evaluation of different proposals
are enumerated below:
1. Comparison of the financial performance is undertaken by Greenpark hospital. Moreover,
investment decision of the firm is highly dependent upon the money which is available
within the business organization (Ghaffour, Missimer and Amy, 2013).
2. By making assessment of the costs and benefits which are associated with all options,
hospital has chosen proposal 2.
3. Availability of the financial resources is also the main factor which is considered by the
firm while making decisions in relation to the car parking facility (Droms and Wright,
2015).
1
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2. Analyzing the importance of different financial areas
Financial areas play significant role in appropriate decision-making. On the basis of the
given case scenario, Greenpark hospital is planning to offer car parking facilities to the
customers. Therefore, to make decision in relation to such project, trust has undertaken several
factors which are as follows:
1. Primarily, finance manager of the firm has evaluated the fund requirement which is
required for the car parking facility in different proposals (Simons, 2013).
2. By making assessment of the financial needs Greenpark hospital is able to make decision
about the sources from which firm needs to raise finance.
3. In addition to this, financial statements are also one of the main areas which need to be
analyzed by the manager for decision making. By making ratio analysis finance manager
of the firm can make evaluation of the financial statements in an efficient manner.
4. Cost-profit-volume relationship is also the main factor which is considered by the
hospital during the profit planning (Lapeyre, 2015). Through this, business unit is able to
identify the profit which it will generate by making expenditure.
5. Profit planning is also undertaken by the firm while they making decision about the
offering of car parking facility to the customers. Thus, hospital has also made assessment
of the profit which trust will generate by making expenditure (Kipesha, 2013). Moreover,
it is the responsibility of manager to fulfill the needs, wants and expectations of the
customers by making optimum utilization of financial resources.
2
Financial areas play significant role in appropriate decision-making. On the basis of the
given case scenario, Greenpark hospital is planning to offer car parking facilities to the
customers. Therefore, to make decision in relation to such project, trust has undertaken several
factors which are as follows:
1. Primarily, finance manager of the firm has evaluated the fund requirement which is
required for the car parking facility in different proposals (Simons, 2013).
2. By making assessment of the financial needs Greenpark hospital is able to make decision
about the sources from which firm needs to raise finance.
3. In addition to this, financial statements are also one of the main areas which need to be
analyzed by the manager for decision making. By making ratio analysis finance manager
of the firm can make evaluation of the financial statements in an efficient manner.
4. Cost-profit-volume relationship is also the main factor which is considered by the
hospital during the profit planning (Lapeyre, 2015). Through this, business unit is able to
identify the profit which it will generate by making expenditure.
5. Profit planning is also undertaken by the firm while they making decision about the
offering of car parking facility to the customers. Thus, hospital has also made assessment
of the profit which trust will generate by making expenditure (Kipesha, 2013). Moreover,
it is the responsibility of manager to fulfill the needs, wants and expectations of the
customers by making optimum utilization of financial resources.
2

Thus, all the above mentioned factors are considered by the firm during the decision
making about the car parking facility. Hence, by analyzing all such factors GHT has decided to
take land on lease by giving tender to national car park.
3. Analyzing and evaluating the options which are available to the hospital and non-financial
consideration which company needs to follow in decision making
By making analysis of three proposals it has been assessing that leasing is the best option
which offers several benefit to the business organization. Through leasing, trust can make use of
the land without investing large amount of money in it (Stanojev and Yener, 2013). In addition
this, legal formalities which are involved in leasing is very less as compared to the other means.
In addition this, leasing also reduces the risk of obsolescence of asset. In addition this, tax benefit
is also the main aspect which compel business unit to take land on lease rather than making
investment on it on the basis of the facts which are cited in appendix (Lease Finance: Type,
Advantage and Disadvantage of Leasing, 2015).
There are several non-financial considerations which Green park hospital needs to follow during
the process of decision making are as under:
1. Feasibility of the project is one of the main factors which firm needs to consider during
the selection of proposal (Andrikopoulos and Markellos, 2015). Thus, by taking into
account investment appraisal techniques GPH is able to identify the extent to which
project will offer benefit to it.
2. Sustainability is also the most important factor which GPH should undertake in the
decision making aspects (Cour-Thimann and Winkler, 2012).
3. Along with it, durability of the proposal is one of the essential elements which affect the
business decisions of the firm (Himme and Fischer, 2014). Hence, manager of the
hospital also needs to be taken into consideration the longlastingness of project.
Thus, feasibility, durability and sustainability are the main factors which Green park
hospital is required to consider in the selection of most profitable proposal.
4. Recommending the ways through which hospital can evaluate the project
It is recommended to the manager of Green park hospital (GHT) that they need to
undertake investment appraisal techniques as a financial tool. By this, business
organization is able to make investment in the most profitable proposal.
3
making about the car parking facility. Hence, by analyzing all such factors GHT has decided to
take land on lease by giving tender to national car park.
3. Analyzing and evaluating the options which are available to the hospital and non-financial
consideration which company needs to follow in decision making
By making analysis of three proposals it has been assessing that leasing is the best option
which offers several benefit to the business organization. Through leasing, trust can make use of
the land without investing large amount of money in it (Stanojev and Yener, 2013). In addition
this, legal formalities which are involved in leasing is very less as compared to the other means.
In addition this, leasing also reduces the risk of obsolescence of asset. In addition this, tax benefit
is also the main aspect which compel business unit to take land on lease rather than making
investment on it on the basis of the facts which are cited in appendix (Lease Finance: Type,
Advantage and Disadvantage of Leasing, 2015).
There are several non-financial considerations which Green park hospital needs to follow during
the process of decision making are as under:
1. Feasibility of the project is one of the main factors which firm needs to consider during
the selection of proposal (Andrikopoulos and Markellos, 2015). Thus, by taking into
account investment appraisal techniques GPH is able to identify the extent to which
project will offer benefit to it.
2. Sustainability is also the most important factor which GPH should undertake in the
decision making aspects (Cour-Thimann and Winkler, 2012).
3. Along with it, durability of the proposal is one of the essential elements which affect the
business decisions of the firm (Himme and Fischer, 2014). Hence, manager of the
hospital also needs to be taken into consideration the longlastingness of project.
Thus, feasibility, durability and sustainability are the main factors which Green park
hospital is required to consider in the selection of most profitable proposal.
4. Recommending the ways through which hospital can evaluate the project
It is recommended to the manager of Green park hospital (GHT) that they need to
undertake investment appraisal techniques as a financial tool. By this, business
organization is able to make investment in the most profitable proposal.
3
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In addition to this, company needs to make team with the personnel who are highly
skilled and efficient in making analysis of the suitability of proposal.
Besides this, GHT can also hire the personnel from outside the firm with the aim to make
evaluation of the different business proposals which are available to it.
CONCLUSION
By summing up this report, it has been concluded that Greenpark needs to take assistance
of leasing with the aim to offering car parking facility to the customers. Furthermore, it can be
inferred that there are mainly three factors namely feasibleness, durableness and sustainability
provides assistance in making suitable business decisions.
4
skilled and efficient in making analysis of the suitability of proposal.
Besides this, GHT can also hire the personnel from outside the firm with the aim to make
evaluation of the different business proposals which are available to it.
CONCLUSION
By summing up this report, it has been concluded that Greenpark needs to take assistance
of leasing with the aim to offering car parking facility to the customers. Furthermore, it can be
inferred that there are mainly three factors namely feasibleness, durableness and sustainability
provides assistance in making suitable business decisions.
4
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REFERENCES
Books and Journals
Andrikopoulos, A. and Markellos, R.N., 2015. Dynamic interaction between markets for leasing
and selling automobiles. Journal of Banking & Finance. 50. pp.260-270.
Bamber, M. and Parry, S., 2014. Accounting and Finance for Managers: A Decision-making
Approach. Kogan Page Publishers.
Cour-Thimann, P. and Winkler, B., 2012. The ECB’s non-standard monetary policy measures:
the role of institutional factors and financial structure. Oxford Review of Economic
Policy. 28(4). pp.765-803.
Droms, W.G. and Wright, J.O., 2015. Finance and accounting for nonfinancial managers: All
the basics you need to know. Basic Books.
Ghaffour, N., Missimer, T.M. and Amy, G.L., 2013. Technical review and evaluation of the
economics of water desalination: current and future challenges for better water supply
sustainability. Desalination. 309. pp.197-207.
Himme, A. and Fischer, M., 2014. Drivers of the cost of capital: The joint role of non-financial
metrics. International Journal of Research in Marketing. 31(2). pp.224-238.
Kipesha, E.F., 2013. Performance of microfinance institutions in Tanzania: integrating financial
and non financial metrics. European Journal of Business and Management. 5(4). pp.94-
105.
Lapeyre, R., 2015. Wildlife conservation without financial viability? The potential for payments
for dispersal areas' services in Namibia. Animal Conservation. 18(1). pp.14-15.
Online
Simons, R., 2013. Levers of organization design: How managers use accountability systems for
greater performance and commitment. Harvard Business Press.
Stanojev, I. and Yener, A., 2013. Improving secrecy rate via spectrum leasing for friendly
jamming. Wireless Communications, IEEE Transactions on. 12(1). pp.134-145.
Online
Lease Finance: Type, Advantage and Disadvantage of Leasing. 2015. [Online]. Available
through: <http://www.yourarticlelibrary.com/financial-management/lease-finance-type-
advantage-and-disadvantage-of-leasing/27973/l>. [Accessed on 9th March 2016].
5
Books and Journals
Andrikopoulos, A. and Markellos, R.N., 2015. Dynamic interaction between markets for leasing
and selling automobiles. Journal of Banking & Finance. 50. pp.260-270.
Bamber, M. and Parry, S., 2014. Accounting and Finance for Managers: A Decision-making
Approach. Kogan Page Publishers.
Cour-Thimann, P. and Winkler, B., 2012. The ECB’s non-standard monetary policy measures:
the role of institutional factors and financial structure. Oxford Review of Economic
Policy. 28(4). pp.765-803.
Droms, W.G. and Wright, J.O., 2015. Finance and accounting for nonfinancial managers: All
the basics you need to know. Basic Books.
Ghaffour, N., Missimer, T.M. and Amy, G.L., 2013. Technical review and evaluation of the
economics of water desalination: current and future challenges for better water supply
sustainability. Desalination. 309. pp.197-207.
Himme, A. and Fischer, M., 2014. Drivers of the cost of capital: The joint role of non-financial
metrics. International Journal of Research in Marketing. 31(2). pp.224-238.
Kipesha, E.F., 2013. Performance of microfinance institutions in Tanzania: integrating financial
and non financial metrics. European Journal of Business and Management. 5(4). pp.94-
105.
Lapeyre, R., 2015. Wildlife conservation without financial viability? The potential for payments
for dispersal areas' services in Namibia. Animal Conservation. 18(1). pp.14-15.
Online
Simons, R., 2013. Levers of organization design: How managers use accountability systems for
greater performance and commitment. Harvard Business Press.
Stanojev, I. and Yener, A., 2013. Improving secrecy rate via spectrum leasing for friendly
jamming. Wireless Communications, IEEE Transactions on. 12(1). pp.134-145.
Online
Lease Finance: Type, Advantage and Disadvantage of Leasing. 2015. [Online]. Available
through: <http://www.yourarticlelibrary.com/financial-management/lease-finance-type-
advantage-and-disadvantage-of-leasing/27973/l>. [Accessed on 9th March 2016].
5

APPENDIX
1. As per the given scenario, NCP will also develop the maintenance of car parking for the
period of ten years. Thus, by accepting the proposal 1 and 2, hospital is able to offer high level of
convenience to the service users and their family members.
Moreover, there were many complaints analyzed by the hospital which are highly
associated with the quality of CarparksRus. It is the main cause due to which hospital is required
to reject such tender. Along with this, hospital does nothing with the land and leave the green
space at it is. Moreover, patients, staff and visitors prefer to site on that place which offers fresh
air to them. In addition to this, green space of the land is closely linked with the name of trust.
Furthermore, greenery is highly required in the trust which helps in generating energy among
patients. Thus, on the basis of above mentioned aspects, business unit requires to take land for
the car park on lease and give tender to NCP. It provides assistance to the hospital in getting the
desired level of outcome or success.
Justification of parameters
1.1 Comparison of the financial performance is undertaken by Greenpark hospital. Moreover,
investment decision of the firm is highly dependent on the money which is available within
business organization (Ghaffour, Missimer and Amy, 2013). Thus, by making assessment of the
financial position and performance, hospital is able to make the most profitable decision.
1.2 In addition to this, hospital has also made comparison of the leasing cost and expenses which
firm needs to incur to convert land into car parking area. By making assessment of the costs and
benefits which are associated with all options, hospital has chosen proposal 2. Moreover, in
leasing, company does not require to make huge expenditure for the car parking facility. By
providing periodical rent to NCP, hospital can provide convenience for its customers. It is more
attractive proposal because; leasing also provides tax benefit to the business unit.
1.3 Availability of financial resources is also the main factor which is considered by the firm
while making decisions in relation to the car parking facility (Droms and Wright, 2015).
Moreover, if Greenpark hospital does not have sound financial position then, it is unable to fulfil
the needs of car parking facility.
2. Example which supports the sub points is as follows:
6
1. As per the given scenario, NCP will also develop the maintenance of car parking for the
period of ten years. Thus, by accepting the proposal 1 and 2, hospital is able to offer high level of
convenience to the service users and their family members.
Moreover, there were many complaints analyzed by the hospital which are highly
associated with the quality of CarparksRus. It is the main cause due to which hospital is required
to reject such tender. Along with this, hospital does nothing with the land and leave the green
space at it is. Moreover, patients, staff and visitors prefer to site on that place which offers fresh
air to them. In addition to this, green space of the land is closely linked with the name of trust.
Furthermore, greenery is highly required in the trust which helps in generating energy among
patients. Thus, on the basis of above mentioned aspects, business unit requires to take land for
the car park on lease and give tender to NCP. It provides assistance to the hospital in getting the
desired level of outcome or success.
Justification of parameters
1.1 Comparison of the financial performance is undertaken by Greenpark hospital. Moreover,
investment decision of the firm is highly dependent on the money which is available within
business organization (Ghaffour, Missimer and Amy, 2013). Thus, by making assessment of the
financial position and performance, hospital is able to make the most profitable decision.
1.2 In addition to this, hospital has also made comparison of the leasing cost and expenses which
firm needs to incur to convert land into car parking area. By making assessment of the costs and
benefits which are associated with all options, hospital has chosen proposal 2. Moreover, in
leasing, company does not require to make huge expenditure for the car parking facility. By
providing periodical rent to NCP, hospital can provide convenience for its customers. It is more
attractive proposal because; leasing also provides tax benefit to the business unit.
1.3 Availability of financial resources is also the main factor which is considered by the firm
while making decisions in relation to the car parking facility (Droms and Wright, 2015).
Moreover, if Greenpark hospital does not have sound financial position then, it is unable to fulfil
the needs of car parking facility.
2. Example which supports the sub points is as follows:
6
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2.1 For instance; if trust takes decision in relation to the conversion of land into car parking then,
they require assessing the money for such purpose. In addition to this, they also make assessment
of the fund which they require to spend in the case of leasing. Thus, by making assessment of the
financial need trust is able to take suitable decision in the right direction.
2.2 For instance: By making evaluation of the financial requirement trust have identified that
they have to make huge expenses when they convert land into car parking by their own as
compared to leasing. Thus, leasing is the most effectual sources through which trust can fulfill
its monetary requirement in an efficient manner.
2.4 For instance: Trust have identified that it will generate £70,000 if they take land on lease of
NCP for car parking. However, hospital will get revenue of £75,000 if it take land of
CarparksRus on lease.
3. Moreover, company will generate revenue of £70,000 when it give tender to NCP for the
car parking facility. On the contrary to this, the revenue of the trust would be £75,000 if tender is
provided to the CarparksRus. Both the firm will incur the cost of converting land into parking
area and the maintenance cost for the period of ten years. On the basis of this aspect hospital has
determined to take land on lease for making arrangements of the car parking. Nevertheless, by
making analysis of image of the parking contractor it is discovered that quality of the parking
services of CarparksRus is not very good. Due to this, Green park hospital has chosen NCP over
the CarparksRus. Thus, by taking into consideration all these aspects, it can be stated that leasing
helps trust in achieving success in the competitive business arena.
Along with it, trust does not convert its park or garden into parking home. Moreover,
plant, flowers, air and surroundings have high level of impact upon the health of the patients. In
addition to this, decision of the visitors or family member is also highly affected by the
surroundings or environment of hospital. In addition this, staff of the trust also feel relaxing
while they go the park which have flower, greenery etc. Thus, company does make any change
with the land of park. Through this, Green park hospital can build distinct image in the mind of
visitors, staff and patient.
3.2 For instance: Leasing offers car parking facility to Green park trust for the period of ten
years. Thus, the periods to which company can sustain the contract have also impact upon the
growth, success and profitability of the business unit.
7
they require assessing the money for such purpose. In addition to this, they also make assessment
of the fund which they require to spend in the case of leasing. Thus, by making assessment of the
financial need trust is able to take suitable decision in the right direction.
2.2 For instance: By making evaluation of the financial requirement trust have identified that
they have to make huge expenses when they convert land into car parking by their own as
compared to leasing. Thus, leasing is the most effectual sources through which trust can fulfill
its monetary requirement in an efficient manner.
2.4 For instance: Trust have identified that it will generate £70,000 if they take land on lease of
NCP for car parking. However, hospital will get revenue of £75,000 if it take land of
CarparksRus on lease.
3. Moreover, company will generate revenue of £70,000 when it give tender to NCP for the
car parking facility. On the contrary to this, the revenue of the trust would be £75,000 if tender is
provided to the CarparksRus. Both the firm will incur the cost of converting land into parking
area and the maintenance cost for the period of ten years. On the basis of this aspect hospital has
determined to take land on lease for making arrangements of the car parking. Nevertheless, by
making analysis of image of the parking contractor it is discovered that quality of the parking
services of CarparksRus is not very good. Due to this, Green park hospital has chosen NCP over
the CarparksRus. Thus, by taking into consideration all these aspects, it can be stated that leasing
helps trust in achieving success in the competitive business arena.
Along with it, trust does not convert its park or garden into parking home. Moreover,
plant, flowers, air and surroundings have high level of impact upon the health of the patients. In
addition to this, decision of the visitors or family member is also highly affected by the
surroundings or environment of hospital. In addition this, staff of the trust also feel relaxing
while they go the park which have flower, greenery etc. Thus, company does make any change
with the land of park. Through this, Green park hospital can build distinct image in the mind of
visitors, staff and patient.
3.2 For instance: Leasing offers car parking facility to Green park trust for the period of ten
years. Thus, the periods to which company can sustain the contract have also impact upon the
growth, success and profitability of the business unit.
7
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