please refer toTTS211211_kigbu umar_3 in my archive assignment.

Case Study Analysis—Case 2: Critical Access

To complete this assignment review the following Web resource:

Rural
Health Solutions. (2010,
October). A critical access hospital case study: Idaho Flex Program: Evaluation
2010. Caribou Memorial Hospital and Living Center. Retrieved from http://www.healthandwelfare.idaho.gov/Portals/0/Health/Rural%20Health/Soda%20Springs%20Case%20Study%20October%202010.pdf

Complete a detailed case study analysis of the given case, using the process
described in Appendix A of your textbook Strategic Management of Health Care
Organizations.
Your completed Case Study Analysis Report will
include the following sections:

• Executive summary
• Body of the case report
  • Key issues
  • Situational analysis
  • Strategy formulation
  • Recommendation
  • Implementation strategies
  • Benchmarks for success and contingency plans

Where not all pertinent information is given in the case itself, search for
that information through the South University online library, or perform a Web
search for the required information. Note: Do not search for information beyond
the date of the case.

For the Situational Analysis you are encouraged to provide visual
presentation of data in your situational analysis and use the analysis tools
from your textbook and other analysis tools you have used in your program, such
as trend analysis, stakeholder analysis, etc.

Present your Case Study Analysis report in a Word document, formatted in the
headings and sub-headings given above.

Submit your report in two steps: First, a preliminary report
with the key issues, situational analysis, and strategy formulation. Then the
complete report with recommendation, implementation strategies, benchmarks, and
the executive summary.

Name your document as:
LastnameFirstInitial_W2_A2_Preliminary.doc and
LastnameFirstInitial_W2_A2_Complete.doc.

Assignment 2 Grading Criteria	Maximum Points
Key Issues: Key issues are complete and clearly explained.	12
Situational Analysis
External environment analysis includes detailed service area competitive analysis.	12
Internal environment analysis includes strengths and weaknesses with respect to resources, competencies, and capabilities.	12
Directional strategies are defined.	12
Strategy Formulation: Adaptive, market entry, and competitive strategies are developed and supported with rationale.	12
Recommendation: Alternatives are practical, specific, and related to key issues.	12
Implementation Strategies: Service delivery and support strategies are linked to directional, adaptive, and market entry and competitive strategies.	12
Benchmarks for Success:Measurements for success are clearly identified.	12
Expressed ideas clearly in writing, used appropriate visual presentation of data, and presented the case study analysis report in the specified format.	12
Applied the correct APA style, usage, grammar, and punctuation.	12
Total:	120

This case has been framed in order to test the skills in evaluating a credit request and reaching a correct
decision. Perluence International is large manufacturer of petroleum and rubber-based products used in a
variety of commercial applications in the fields of transportation, electronics, and heavy manufacturing.
In the northwestern United States, many of the Perluence products are marketed by a wholly-owned
subsidiary, Bajaj Electronics Company. Operating from a headquarters and warehouse facility in San
Antonio, Strand Electronics has 950 employees and handles a volume of $85 million in sales annually.
About $6 million of the sales represents items manufactured by Perluence. Gupta is the credit manager at
Bajaj electronics. He supervises five employees who handle credit application and collections on 4,600
accounts. The accounts range in size from $120 to $85,000. The firm sells on varied terms, with 2/10, net
30 mostly. Sales fluctuate seasonally and the average collection period tends to run 40 days. Bad-debt
losses are less than 0.6 per cent of sales. Gupta is evaluating a credit application from Booth Plastics, Inc.,
a wholesale supply dealer serving the oil industry. The company was founded in 1977 by Neck A. Booth
and has grown steadily since that time. Bajaj Electronics is not selling any products to Booth Plastics and
had no previous contact with Neck Booth. Bajaj Electronics purchased goods from Perluence
International under the same terms and conditions as Perluence used when it sold to independent
customers. Although Bajaj Electronics generally followed Perluence in setting its prices, the subsidiary
operated independently and could adjust price levels to meet its own marketing strategies. The Perluence’s
cost-accounting department estimated a 24 per cent markup as the average for items sold to Pucca
Electronics. Bajaj Electronics, in turn, resold the items to yield a 17 per cent markup. It appeared that
these percentages would hold on any sales to Booth Plastics. Bajaj Electronics incurred out-of pocket
expenses that were not considered in calculating the 17 per cent markup on its items. For example, the
contact with Booth Plastics had been made by James, the salesman who handled the Glaveston area.
Examination Paper Semester I: Financial Management
IIBM Institute of Business Management
James would receive a 3 per cent commission on all sales made Booth Plastics, a commission that would
be paid whether or not the receivable was collected. James would, of course, be willing to assist in
collecting any accounts that he had sold. In addition to the sales commission, the company would incur
variable costs as a result of handling the merchandise for the new account. As a general guideline,
warehousing and other administrative variable costs would run 3 per cent sales. Gupta Holmstead
approached all credit decisions in basically the same manner. First of all, he considered the potential
profit from the account. James had estimated first-year sales to Booth Plastics of $65,000. Assuming that
Neck Booth took the, 3 per cent discount. Bajaj Electronics would realize a 17 per cent markup on these
sales since the average markup was calculated on the basis of the customer taking the discount. If Neck
Booth did not take the discount, the markup would be slightly higher, as would the cost of financing the
receivable for the additional period of time. In addition to the potential profit from the account, Gupta was
concerned about his company’s exposure. He knew that weak customers could become bad debts at any
time and therefore, required a vigorous collection effort whenever their accounts were overdue. His
department probably spent three times as much money and effort managing a marginal account as
compared to a strong account. He also figured that overdue and uncollected funds had to be financed by
Bajaj Electronics at a rate of 18 per cent. All in all, slow -paying or marginal accounts were very costly to
Bajaj Electronics. With these considerations in mind, Gupta began to review the credit application for
Booth Plastics.
Question:
1. How would you judge the potential profit of Bajaj Electronics on the first year of sales to Booth
Plastics and give your views to increase the profit.
2. Suggestion regarding Credit limit. Should it be approved or not, what should be the amount of
credit limit that electronics give to Booth Plastics.