BME Luxury Care: Strategic Planning and Financial Analysis Report

This report focuses on performance improvement and management within the healthcare and social care sector, specifically analyzing BME Luxury Care. It begins with an internal memorandum for directors, exploring strategic planning models like PEST and SWOT analysis to identify strengths, weaknesses, opportunities, and threats. The report then delves into financial analysis, calculating Return on Equity (ROE), profit margins, asset turnover, and equity multipliers to assess BME Luxury Care's financial health. Furthermore, the report critically evaluates the use of non-financial and multi-dimensional models in the healthcare sector and discusses performance management and controlling techniques, determining their effectiveness. The analysis provides recommendations for strategic planning and highlights the advantages and disadvantages of various approaches, offering a comprehensive overview of performance improvement strategies in the context of healthcare and social care.

Performance improvement
and management in
healthcare and social care

Contents
Introduction......................................................................................................................................1
TASK 1............................................................................................................................................1
internal memorandum for directors.............................................................................................1
Advantages and disadvantages....................................................................................................3
Recommendation.........................................................................................................................4
TASK 2............................................................................................................................................5
TASK 3............................................................................................................................................9
Critically value the use of non financial and multi dimensional models and healthcare and
social care sector..........................................................................................................................9
Discussion on monitoring and controlling and explanation of Determining performance......11
Advantages and disadvantages..................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCE................................................................................................................................13

Introduction
A health care need is totally related to the patients treatment, preventing and controlling of the
disease, injuries and disabilities and the care our aftercare of the person with these needs. while
the social care need is focusing on providing assistance with the activists of daily living also
maintaining the independence of a patient.
This report will cover the study of BME Luxury Care, This report will prepare the internal
memorandum for the directors and also select two strategic planning model appropriate to the
care sector in England. it will also critically discuss the advantages and disadvantages with the
proper recommendation to the management on the best strategic planning model to use out of
two discussed strategic models. This report will briefly explain the usefulness of du point
analysis to shareholders of BME Luxury Care and also apply to assist the financial performance
of company or social care house by using the financial statement given on the basis of
calculations. In the end of the of this report add well critically he valued the non financial and
multi dimensional models with reference healthcare and social care. it will also select the
performance management and controlling techniques and explain how it can determine the
performance and advantages and disadvantages
TASK 1
internal memorandum for directors
Memorandum
To , directors
Organization name - BME Luxury Care
Strategic planning model for the care sector England
There are various strategy models available for the businesses that can be adopted by them too a
competitive advantages within the market where they are operating their business and they can show
their presence. it is also necessary for the BME Luxury Care we use the strategic model to identify the
factors that are impacting their business and also their strength and weakness so they can create
opportunities for their business (DeNisi, and Murphy, 2017). Here are two strategy models that can be
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used by organisations to take competitive advantages.
PEST model
Political
The healthcare industry a social care industry is has when is political impact both positive and negative.
Governmental spending for the healthcare can be affected by the tax policies changes. it can be benefit
allow the increase subsidies for the BME Luxury Care or it can also cause for the concerns. Social care
companies like BME Luxury Care can also have some negative political impact like corruption in the
political party can impact their probability and they will not able to provide best possible services to
their patients.
Economical
Economical impact like COVID-19 impacted health of the various people both physically Anne
mentally. it also increased the workload on healthcare and social care companies and BME Luxury
Care also impacted with it negatively. on the other side BME Luxury Care is providing employment in
the country which means people are getting employed and working for the social care.
Social
BME Luxury Care is providing luxury care services to their patients that help them to recover from the
disease They are also providing the five luxury facilities in the London that are the vision of the
directors to achieve the highest possible level of person cared in a home like environment, long term
care non medical care Supporting activities for daily living (Keskimäki, , and et.al., 2018. Integrating).
It is helping the people who are suffering from the issues an healthcare problems are getting better
services from the BME Luxury Care and they are able to overcome the disease an issue they are facing.
it also helped them to motivate and get better care from the social care people.
Technology
To provide the luxury services BME Luxury Care using the various technology to increase or expand
their social work in London. they're using mostly the social media campaigns to advertise their work an
encouraging people to support them. through the technology people give them a donations and also
they are able to find the people who are looking for the better social care or people who want to recover
from their disease and healthcare problems.
SWOT ANALYSIS
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Strength
 Having a good reputation in England who are providing luxury healthcare services in helping
people to overcome from their disease and disabilities.
 Most recommended social care firm With positive review on the website
 Supportive stuff with knowledge and understanding of social care and nurses who are working
for the BME Luxury Care are aware how to provide a professional services to the customers
related to the healthcare and social care
Weaknesses
 Lack of nurses are affecting the business of BME Luxury Care which need to be solved and
directors of the company should look at it and recruit more nurses who can provide care to the
patient.
 advertise their work an encouraging people to support them. through the technology people give
them a donations and also they are able to find the people who are looking for the better social
care or people who want to recover from their disease and healthcare problems.
 Lack of knowledge among the nurses and other health professional staff related to the
technology is affecting the business and it is necessary for the directors of BME Luxury Care
provide training and development to make all this stuff understand the use of technology.
Opportunities
 Recruitment of more nurses and medical staff who can provide the health and social care
services to the people in England can be a good opportunity for the business of BME Luxury
Care. It will help them to provide better services to the patient and patient will be happy and
they will get luxury services (Elkomy, and Cookson, 2020).
 Planning of expanding the network too at least five luxury facilities in London can have a good
opportunity to provide best possible social care services to the people who are living in
England.
Threats
 User may have the range of complex needs and disability that may challenge their ability to
carry out certain activities of daily living.
 Competition in the market is increasing and creating threat for the BME Luxury Care and
expanding their services within United Kingdom.
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Advantages and disadvantages
Advantages
 It will provide completed the advantages to the BME Luxury Care if they are using the strategic
planning and they were able to expand their business in England.
 The strategic planning will help to increase the operational efficiency off the BME Luxury Care and
they were able to provide better services to the people and make them leave better life.
 It will also make the business of BME Luxury Care more durable and they were able to expand
their business effectively.
 Company will have a sense of direction and proper way to run their business through the strategic
planning body leaders and directors of the company.
Disadvantages
 There can be some disadvantages from the strategy planning and one of them is the motivation and
staff due to the changes in strategies Ann where working by the business.
 The process of planning the strategies for the company can be a complex process and it is necessary
for the directors of the BME Luxury Care to have proper knowledge and strategies that can be
implemented by them.
 It’s not just a two or three days process but it can take long time to take decisions for strategic
planning and it require around one month of time to complete whole process (Fraser, and
Mays,, 2018).
 It is necessary for the all staff who are working within the BME Luxury Care need skills to adopt
the new strategies made by the directors of the firm so the strategies can be successful and company
can take competitive advantages.
Recommendation
Strategic planning is necessary for the BME Luxury Care because it will help them too expand
their services in all over the England and they will able to reach more and more people. SWOT
analysis can be a best strategy model that can be used by the BME Luxury Care. the reason
behind selecting this strategy is that SWOT analysis is helpful to identify the strength of the
company that are making them understand what is good in them and what services they have
strong, weakness help them to identify the points where they need improvement and strategies
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for overcoming the weakness of the organisation so they can take competitive advantages within
the market where they are operating their business. Opportunity’s provide future competitive
advantages that can be achieved and identified by the BME Luxury Care. identified opportunities
can be adopted by the healthcare organisation and they can provide better facilities in the future
by using those opportunities. (Harris, and White, 2018) Threats are the issues or companies
biggest fear that need to be overcome, by using the opportunities BME Luxury Care can
overcome from the threats within the business and they were able to take competitive advantages
and provide a better healthcare services in the England and many people can add up and work
with them and also patients can take services from them. Recruitment of more nurses and
medical staff who can provide the health and social care services to the people in England can be
a good opportunity for the business of BME Luxury Care. It will help them to provide better
services to the patient and patient will be happy and they will get luxury services.
TASK 2
Return on Equity (ROE) = Net profit/ Equity*100
Particulars
Amount in £
Net profit
57881
Equity
357842
ROE
16.17 %
Return on equity ratio is being used by companies to measure the financial performance of the
company (Rinati, 2018). It is being calculated by dividing net income from shareholders equity.
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If the return on equity ratio is higher than 10% it means company is doing well and their
stakeholders also will not face any difficulties but when the ratio is less than 10% it shows that
company is not performing well and it may face loss in future. But in this case the return on
equity is 16.17 percent which is good for the company and shareholders.
Profit Margin= Net income/Total Revenue
Net income = £57881
Total revenue = £3269404
=£57881/£3269404
1.7%
Profit margin ratio States about companies profit it is being calculated by dividing companies
total income from its revenue. Is this case company has 1.7 % of profit margin ratio and the
industry has 3.5 % of profit margin ratio it means that company needs to work hard on their
profits and sales. Bus focuses on providing best services to the customer then only it can increase
the profitability.
Total Asset Turnover= Net Sales/Total Assets
Net Sales= £3269404
Total Assets = £2502992
£3269404/£2502992
1.30
Total asset turnover ratio is being used by the company to analyse the efficiency of converting
assets into revenue and sales (Nugraha and et.al 2021). If the total asset turnover ratio is high for
the company it means company is able to generate higher value from its available Assets and if
company has low asset turnover ratio as compared to industry it means that company is not
efficient in converting its assets to sales. Industry has total asset turnover ratio is 1.5 on the other
hand company has 1.3 % of total asset turnover ratio which means company is not able to
convert its assets into revenue. But this company is close to industry percentage so by putting
more efforts company can reach to 1.5 %.
Equity Multiplier= Total Assets/Stockholder’s Equity
Total Assets = £2502992
Stockholder’s Equity= £357812
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=6.99
Equity multiplier ratio as a risk indicator of the company which provides the detail about the
Assets of the company which is being financed by its stakeholder’s equity is equity do not
considered as debt. This ratio is been calculated by dividing total assets with stockholders equity.
If the equity multiplier is low then it means that company is not dependent on debt. Industry
equity multiplier is 2.5 % whereas the companies having 6.9 % it means Company as strong and
this is also getting good profit therefore they are investing more in this company.
Return on Assets (ROA)=Net income/Total Assets
Particulars
Amount in £
Net income
57881
Total assets
2502992
ROA
2.31%
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Return on Assets is also one of the profitability ratios which provide information about the profit
of a company from its asset (Faleria and et.al2017). It shows that how much profit is being
generated by the company by using its asset and it also provide the information about the
efficiency of the management and other employees of the company. The industry average in
return on asset is 5.2 % whereas the company has 2.31 %. It shows that company is not property
using its assets to generate revenue. The management of the company needs to work hard on the
policies and strategies about assets then only it can generate revenue as per the industry.
Current Ratio= Current Assets/Current liabilities
Current Assets = £608992
Current liabilities = £445150
Current Ratio = £608992/£445150
=1.36
Current ratio is used to measure the capacity of company to repay its short-term loans and
applications within a year. Current ratio of industry is 2% on the other hand a current ratio of
company is 1.36 % which means Company need to work hard on its current assets and liabilities
so that company can quickly repair its current liabilities by using current assets.
Debt Ratio=Debt/Assets x 100%
Total debt = £1700000
Total Assets = £ 2502992
=£1700000/£ 2502992*100
67%
Debt ratio is also a financial ratio which provides the detail about companies leverage. Debt ratio
described as total that to total assets. It provides detail about the company’s total finance which
is being gathered from taking debt. Industries total debt ratio as 69% on the opposite company
has total debt ratio is 67%. Company is ahead from the industry it means company has less
leverage but it can be overcome by making changes in the strategies of the company.
Debt to Equity Ratio=Total Debt/Total Shareholder Equity
Total Debt = £2145150
Total Shareholder Equity = £357812
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=5.99
This ratio is also used to identify company’s financial leverage. This ratio is being calculated by
dividing total debt of the company from its shareholders equity (Koto,2017). If the debt to equity
ratio is high then it indicates that shareholders have higher risk with the stock of the company.
Debt to equity ratio of the industry is 2.5 % whereas company has 5.9 % it means company is
impressed and also the shareholders equity has risk. Shareholders may face and they may lose
their money.
Fixed Assets Turnover Ratio=Net Sales/Average Fixed Assets
Net Sales= 3269404
Average Fixed Assets = 2072000
=1.58
Fixed asset turnover ratio is generally used by the company to recognise the operating
performance. This ratio is being calculated by dividing net sales to average fixed assets of the
company then only company can know their operating performance. Overall industry has fixed
turnover ratio is 1.4 % on the flip side company has 1.58 % of fixed asset turnover ratio. This
shows that company is properly using their Assets and recognising the operating performance. Is
ratio shows that company is able to generate sales from its existing and available fixed assets. As
the ratio of company is higher than the industry it shows that management of this company is
using fixed assets properly and effectively which is working in the favour of the company.
TASK 3
Critically value the use of non financial and multi dimensional models and healthcare and social
care sector
Non financial
In a business always do type of activities are run one is financial and another is non financial.
most of the people are aware of financial activities but non financial activities are important the
healthcare sector and social care (Mehralian, , and et.al., 2017). Non financial performance
controls can cover the followings-
Turnover
Turnover is it dumb that is used non financially and it is the indicator that helps to identify how
the company is performing in their business. By watching some of the figures anyone can
identify the performance if it is positive or negative. In the social care context turnover place
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important role and it is not known financial indicator that helps to identify how much social from
has earned.
Patient satisfaction
In the healthcare sector patient satisfaction is the indicator that are considered as the non
financial value of the company. if customers are satisfied with the services provided by the BME
Luxury Care And it can also adopt the value for the company Anne benefit will directly get to
the organisation because they will get more patients who will take luxury social care services
from the BME Luxury Care and they were able to achieve their vision and mission. they are
operating their business and they can show their presence. it is also necessary for the BME
Luxury Care we use the strategic model to identify the factors that are impacting their business
and also their strength and weakness so they can create opportunities for their business. Here are
two strategy models that can be used by organization’s to take competitive advantages.
Number of defects
Number of defect in the services provided by the BME Luxury Care will also be counted as the
known financial factors. If there is any defect in their services and social care then it will be a
negative impact in the investment done by them becausr their performance will be weak and
people will know more take services from them and they will go for other social care service
providers (Mintzberg, 2018). it is necessary for the BME Luxury Care To identify the defects in
their product and services and social care industry and they should try to improvement by
providing better training and development to their staff members.
capacity utilisation
capacity utilisation is also a part of non financial factors becaus Capacity shows the ability of the
farm and also provide how much service and products can be developed by them or distribute by
them on the particular time. this affect the business we cause more capacity in the BME Luxury
Care In developing the product and services can provide competitive advantages within the
market where they are operating their business.
Research and development
Research and development is also the known finisher factor that introduced how many new
patients take services from the BME Luxury Care. This data is presented in the numbers but it is
known financial data and provide information related to the patients who add up and take
services from the company and satisfy their needs and demand. it can also cover the numbers of
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