COVER MEMO
 
To: Chief Executive Officer
From: The Human Resource Manager
Date: 28th April 2017
 
I paper present a proposed plan of activities that will be used in establishing a Cancer Screening Center in Denmark. The plan entails various costs to be met in the implementation of the business plan as well as the target market for the firm. In addition, it indicates the benefits and opportunities that the business will realize from the establishment of this center.
The different strategies and plans indicated in the proposal are set in line with the company’s objectives and strategic goals. Find it in your best interest to review this plan for our meeting due next week.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Plan-A Cancer Screening Test
Student’s Name
Institution Affiliation
 
 
 
 
 
 
 
 
 
 
 
 
Table of Contents
Executive summary…………………………………………………………………………………………………………… 3
Description of the initiative…………………………………………………………………………………………………………… 4
Organizational Structure…………………………………………………………………………………………………………… 4
Marketing analysis…………………………………………………………………………………………………………… 6
Marketing plan…………………………………………………………………………………………………………. 10
Strategies in the marketing plan…………………………………………………………………………………………………………. 10

  1. Changing market dynamics…………………………………………………………………………………………………………. 11

Financial/Resource Requirement Plan…………………………………………………………………………………………………………. 13
Financial feasibility analysis…………………………………………………………………………………………………………. 16
Key performance measures…………………………………………………………………………………………………………. 18
SWOT ANALYSIS…………………………………………………………………………………………………………. 19
Strengths-…………………………………………………………………………………………………………. 20
Weaknesses…………………………………………………………………………………………………………. 20
Opportunities…………………………………………………………………………………………………………. 20
Threats…………………………………………………………………………………………………………. 21
References…………………………………………………………………………………………………………. 21
 
Business Plan-A Cancer Screening Center
Executive Summary
This report represents the business plan of establishing a cancer-screening center in Denmark. Cancer screening is the process by which cancer is detected before the symptoms begin to appear. It involves important urine or blood tests or medical image. The reason behind establishing a cancer-screening center is to detect the disease as early as possible to stop it from spreading.
Denmark was chosen as the area of interest in creating a cancer-screening center based on data collected. The report of the research contained data for cancer frequency by country. Denmark is reported to have the highest cancer rate for both men and women with, 338 people per 100,000 diagnosed in the year 2012 (Jemal et al. 2013). The data collected was based on both sexes. In line with the main aim of this proposal, the business plan introduces and brings a marketing plan that aims at a particular women and man of Danish origin as the target group.
Information about the financial ability of the business plan is also provided in this proposal. Consequently, seeks to determine the financial ground of the proposed business plan. In line with the major principles of managing any organization or business venture, this proposal indicates various performance measures to help determine the level of progress in applying a SWOT analysis, whereby certain factors will be evaluated for their strength, weakness, opportunity and threats they impose toward the positive development of the business plan.

Description of the Initiative

This business plan introduces a business proposal of setting up a cancer screening center in Denmark. A cancer screening center involves body screening to detect if at all there are risks of disease erupting. Early detecting of the disease before the symptoms begin to show plays a significant role in controlling the disease in its first stage of multiplication.
The ever-rising level of technology in the world comes with some benefits: equipment such as mammograms. The inventions made in current technology in cancer treatment establishes and helps to implement a better strategic pattern that patients respond to in a positive manner. Advancements and latest inventions in technology have suppressed the risk and dangers involved by putting the patient into a safer and efficient environment that supports treatment.
The current findings as per the prevalence of cancer in the world have prompted the evolution of this business plan. Deaths related to cancer have been recorded in Denmark. Cancer has been declared a killer disease, especially in old age. The disease takes the time to develop in the body and takes time before the symptoms appear hence makes it hard to notice the disease during its first stages.
Organizational Structure
The active type of organizational structure proposed for the cancer screening center heavily leans towards a horizontal organizational structure. About the fact that the organization is a new entity in the current market arena, the parallel structure works in the criteria that workers and staff maintain effective communication by reporting to the top level of management (Ashkenas,1995). The hierarchy and respective positions in the organization are illustrated in the diagram below.
 
The top level management of the proposed cancer screening center
 
C.E.O-Acts as the founder of the organization. The C.E.O is responsible for the success or failure of the organization. The C.E.O provides and helps in setting various strategies. The senior management team can give a helping hand in the process of developing a plan. Investors in the organization can approve this business plan. The management board of the Cancer Screening Center can approve, advice, or request the CEO to revise any future business strategies. All in all, the C.E.O remains with the mandate to set the direction:

  • Which markets arena will the organization enter? Against which rivals and competitors?
  • How will the organization differentiate and define itself? Will it involve a low cost? High service? Strategic Locations? Flexible and secure financing?

The CEO makes critical decisions, sets and approves budgets, forms and joins partnerships, and hires or fires a team to drive the organization in the right direction.
Finance Manager– Will be responsible for the organization’s funding regarding money by determining capital needed. It involves planning of financial strategies, generating various reports regarding the financial analysis or position of a company.
Medical Oncologist– Will be the cancer specialist who oversees the general care of a patient and coordinates with the staff on offering the necessary treatment. The medical oncologist is responsible for chemotherapy and hormone therapy. Chemotherapy and hormone therapy involve the use of drugs to treat cancer patients.
Radiation Oncologist– This cancer specialist treats cancer by use of radiation therapy which involves using high ray lights to treat cells causing cancer.
Surgical Oncologist– This is a surgeon who is equipped with training in treating cancer. The surgical oncologist may be called in various sessions to diagnose cancer by use of a biopsy. Surgical oncologists are specialists at treating cancer by removal of tumors or other cancerous tissue found in the body.
Laboratory Experts– Will administer the taking and storing samples from different patients.
Laboratory Technicians– Will be accountable and responsible for the general maintenance of the laboratory.
Customer Service Representative– Endowed with the responsibility to handle complaints, suggestion, and inquiries from the patients long as there are any.
Marketing Analysis
A report generated by (Dalton,) “Social inequality and incidence of and survival from cancer in a population-based study in Denmark” determined to analyze and define the state of the market in which a cancer screening tests will be established. There are some reasons why some people from the United Kingdom, preferably Denmark suffer from respiratory and cancer related diseases. The rates of diagnosis are high to an extent doctors are used to diagnosing cancer patients.
However, some lifestyles have an impact on the ever-rising figures of cancer patients frequently. The truth is, a larger than average proportion the total population of women are heavy smokers in Denmark. Besides, the country also records high level of alcohol consumption. Some of these lifestyle factors expose the individual to cancerous infections due to the tobacco content, as well as high alcoholic content in alcohol.
A report by (Tolstrup, 2006) in Denmark focused on the prevalence of women who, at a period in their gestation period, smoked. The figures showed a significant drop from 22% in 1997 to 16% in 2005. However, smoking as a habit was more prevalent in some women who were past or had not delivered. The report indicates that the percentages of 37 to 43%. Lifestyle factors significantly influenced such rises in the case of smoking. In Denmark Women living in the rural areas were less of smokers as compared to women who lived in the cities (Walter &Covinsky, 2001).
In the 1950s, Denmark was among the top countries in terms of life expectancy for both males and females. Though an enormous difference in their society, Sweden, and Netherlands were considered similar to Denmark. A study conducted by (Dalton, 2008) reports that in between December 1993 to May 1997, a number close to 160,725 men and women from Denmark were invited to be part of a particular health study that wholly dealt with diet and cancer. The rate of response stood at 35%. The target group included members sharing a common characteristic: they were born and grew in Denmark and, besides, they showed no previous infections related to cancer. An overall number made up of 27,178 men and 29 875 obliged to participate in the program. Varying methods of data collection were used. A food frequency questionnaire made up of different questions to be accompanied with answers was attached with the subsequent letter. The questionnaire was revised by a researcher who happened to be on the clinical visit. On the other hand, the survey related to lifestyle based factors relating to the prevalence of cancer had to be completed to extract the necessary data.
The report’s primary aim was to evaluate the frequency of food intake in the questionnaire. Tangible data was collected in the sense that the level of alcohol consumption was depicted to be an amount average to the previous year’s level of consumption. The overall amount of consumption was put in figures for calculation purposes. The findings involved a small amount of ethanol, close to 12 grams, in every non-alcoholic drink. The rate of drinking was indicated in the questionnaire and divided into existing categories of;

  • Not at all
  • Less than one time in a month
  • one to three occasions in a month
  • Once on a weekly basis
  • five to six occasions in a week
  • Daily basis

The results of the questionnaire were as follows. Abstainers were described as those who had no intake of any alcoholic content as the relative amount and has no drinking instances as the frequency. In a bid to increase the variance in the number of abstainers, the report did away with a figure of close to 786 people, in who no amount of alcoholic content was found in their questionnaires but at the same time recorded a rate that proved to be greater than zero or less than zero. The report went on to exclude individuals who did not fill all the necessary information or with answers which conflicted with the amount and frequency of alcohol consumption. After outsourcing, the number of the people eligible for the study maintained its figure at 53,500 people.
Out of the possible 53,500 people eligible for the study, the difference between women was alarming in that women exceeded the number of men. The report describes a woman’s intake was an average of 5.5 drinks with alcohol for one week while that of men stood at 11.3. The number of rare or in frequenter drinkers who consumed alcohol on a frequency was recorded to be less than one day for one week. People who consumed alcohol on a daily basis had the likelihood of being chronic smokers. Moreover, they were depicted to record a low consumption of greens inclusive of fruit and vegetables. As per the report, weight to height ratio commonly abbreviated as B.M.I was significantly influenced by the subsequent drinking frequency. It emerged that some drinkers who consumed alcohol on a daily basis recorded the low weight to height ratio. Besides, the above observation applied to both sexes. A less number of women as compared to men were recorded to be chronic smokers with an intake of more than 35 grams of tobacco on a daily basis. The less number of women recorded indicated that women had more time to engage in physical activity and hence recorded a frequent consumption of greens. The above information shows the reason as to why there are rising figures n the number of cancer reported in Denmark.

Marketing plan

Before the process of laying out an effective strategic plan, a target group has to be identified. Equivalent to 0.8% o the total world population, Denmark’s population lies at a figure of 5,707,646, based on the latest United Nations estimates (Lichtenstein et al.,2000). The prevalence of cancer in Denmark is high.
Fig.1.2 Surgery and treatments administers related to cancer in the year 2009 and 2014 per 100 000 inhabitants in Germany and Denmark (see below)
Deriving data from the table above, the number of surgical operations administered to cancer patients are higher in Denmark than Germany, depending on the mode and procedure adopted for treatment (Ewertz, 2016). Consequently, this proves that with the current rise in smoking and alcohol drinking trends within the young generation, the number of patients with cancer-related complications is likely to increase over time.

Colonoscopy Colectomy Polypectomy Partial excision of mammary gland Total Mastectomy
2009 2014 2009 2014 2009 2014 2009 2014 2009 2014
Denmark 1758.2 2525.7 76.7 88.6 16.6 121.3 105.1 52.9 46.7
Germany 796 850.8 116.5 111.5 34.9 116.6 101.6 35.7 34.2

 
 

Strategies in the Marketing Plan

To come up with a working plan, a marketing mix should be adopted. Marketing mix involves the process by which any given organization uses its tools to attain its marketing objective. As per the context of this proposal research, the following strategy can work in the current market to improve the overall progress of the company.one of the strategies involves;

  1. Establishing a Monitoring and Audit Function to Evaluate ROI

ROI is a tool that is used to assess the efficiency of an investment (Giger, 2004). The tool can predict and also depict if the new plan has a positive or negative progression toward achieving its primary objectives. The method mentioned above was used to calculate ROI traditionally. With the ever-increasing level of technology, ROI has been modified and made more efficient to help achieve best results as per the performance of an organization. In today’s model, ROI uses strategic objectives of the organization to depict performance.
In the setting of the value-based environment, operational and clinical quality improvement programs represent the long-term success of a health care organization. Projects based on the latest set of technology determine their success by the ability to better and improve quality health care. Improving quality health care involves coming up and establishing better practices that will see a positive outcome in the patients progress such as the use of evidence -based research. Evidence-based research works by way of developing a specific plan for every patient. Consequently, this allows maximum attention administered to a patient. What the patient’s progress over time is stored by way of using electronic health records. The main benefit of adopting electronic medical records is to store and protect an individual’s sensitive information related to the overall health progress. As per our context, return on investment, commonly abbreviated as R.O.I, was used to monitor the financial capability of an organization. The financial capacities of an organization involve analysis of the cash flow.

  1. Changing Market Dynamics
  2. Innovation, Not Diversification

The central question lies on how some companies will respond to macro change e-health care sector. In a bid to respond effectively to the changes in the health sector, diversification plays a significant role. Diversification includes expansion to other areas such as generic medicine or animal health. Defective mergers and acquisition can support diversification. It involves two organizations coming together and coming up with better organizational goals and objectives. Such organizations and turn into a threat hence can stand the high forces present in the market rivalry.

  1. Integration of Medicine and Healthcare

Integration of medicine and healthcare involves two entities coming together to help each other attain its objectives. In the recent past, hospitals aimed at better patient care while pharmaceuticals companies were focused on launching drugs with no idea of the prevalence of disease in the population. Integrating and forming an ecosystem helps conquer the current state of digital technology in different systems that are directly related to health care.

  1. Census Drivers

Some factors have a direct impact on the census of a health institution. As a result, these factors are generalized as census drivers. The most important census drivers to consider while maintaining track and reviewing include;

  • Official inquiries
  • Acts of referrals
  • New admissions
  • Relative ratio
  • Rate of denials
  • Rate of discharges
  • The period of stay

The census drivers are managed by way of keeping track and documenting them on a daily routine. As a result, this calls for a regular review of the various drivers to spot and indicate underlying trends. The patterns act as indicators of a positive or negative mode of progression.
Our cancer screening center as per the context of this business proposal will aim to address some issues such as:

  • How active are referral sources regarding their performance while comparing to past years?
  • Are there any notable changes?
  • What is the number of referrals received?
  • How effective are we at transforming referrals into registrations since a little increase in the number of conversions can create an impact on the outcome of the census?
  • Is the level of registration depreciating despite the fact that our referrals and registrations are still definite to stand on their own?

Close and stern reviewing of the systems related to health facility denial management can showcase important information about existing customers gain a notion of an organization. If a health center is continually getting negative referrals, this indicates a sign that there is the need to educate referral sources information about your services and potential. If a health center is experiencing too many facility denials, the senior management can take part in reviewing of every denial, on a daily basis. The process of addressing denials on a daily basis reduces the level of denials hence ends up increasing the number of admissions where many staff decisions are put on review. Besides, reviewing of denial is an effective way to discover various misapprehensions the registration personnel may have developed about your various registration policies.
Financial/Resource Requirement Plan
Any business or investment requires capital to help it raise from the ground. Below is a table showing the estimation of putting up one laboratory to administer cancer-screening tests. Apart from the resource plan, below is a table indicating the human resource plan as per the estimation of one lab on a personal; plan level.

  Personnel plan
 
  Financial Years
    YEAR 1 YEAR 2 YEAR 3
  Scientist $50,000 $60,000 $70,000
  Chief Controller $40,000 $48,000 $54,000
  Customer Service Repr. $24,000 $28,000 $36,000
  Lab Staff $52,000 $58,000 $70,000
  Total Staff 8 8 8

 

STARTUP COST
Name of Fee (Fixed Cost) Target Location Fee Name of Fee (Running Cost) Target Location Fee
Land Initial Cost $1,100,000 Advertisement $4,000
Building Cost $3,400,000 Utility Bills $24,000
Electricity Generator $10,000 Software $5,000
Computer Hardware $1,500 Website and Server $8,000
Furniture $4,500 Fuel cost $36,000
Laboratory Equipment $1,000,000 Labor Cost $166,000
Insurance $6,000 Lab Chemicals, Reagents $24,000
License $3,000 Tax $36,000
Vehicle $25,000 2 Fridges $3,000
Lab Decoration $2,000 HVAC System $10,000
Cost of Capital 10%    
Estimated Total $5,868,000

 
Financial Feasibility Analysis

                                                            Income Statement
Values in $
Cash Flow YEAR 0 YEAR 1 YEAR 2 YEAR 3
Land Initial Cost/Building Cost 4,500,000      
Equipment/Fixed Cost 1,065,000      
Net Revenues   3,800,000 4,140,000 4,700,500
         
Total Net Revenues   3,800,000 4,140,000 4,700,500
Less Operating Expenses:        
Operating Expenses        
Salaries and Wages   166,000 194,000 230,000
Depreciation   1,000,000 1,400,000 1,800,000
Utilities   24,000 25,500 27,000
Web Hosting   8,000 8,000 8,000
Payroll Taxes   36,000 41,000 44,500
Insurance   6,000 7,500 8,200
General and Administrative Expenses   4,600 7,600 11,000
Web Advertising   4,000 4,200 4,500
Training and Development   6,700 8,100 9,500
Miscellaneous   1,700 1,700 1,700
Total Operating Expenses   1,257,000 1,697,600 2,144,400
         
Operating Income   1,257,000 1,697,600 2,144,400
         
Income Before Taxes   2,543,000 2,442,400 2,556,100
Income Taxes   140,397 152,170 192,211
Net Cash Flow 5,565,000 2,402,603 2,290,230 2,363,889
         
Cumulative Net Cash Flow 5,565,000 2,402,603 2,290,230 2,363,889

 
 

Values in $
CASH FLOW YEAR1 YEAR2 YEAR3
Net Revenues 3,800,000 4,140,000 4,700,500
       
       
       
Total Operating Expenses 1,257,000 1,697,600 2,144,400
       
Operating Income 1,257,000 1,697,600 2,144,400
       
Income Taxes 140,397 152,170 192,211
       
Net Income 2,402,603 2,290,230 2,363,889
       
Cumulative Net Income 2,402,603 2,290,230 2,363,889

Key Performance Measures

Below are some of the performance measures to be observed as part of the business plan:
The number of cancer patient visits will be analyzed on a monthly basis. This will (name it) help determine if there is an increase or decrease in the number of customers over a specified period.
A target to be hit will be set on a weekly basis. Informing the employees of their various objectives enhances and promotes motivation hence working under less or no supervision (Lawler,1969).
The amount of earnings and expenses incurred will be monitored on a regular basis. Consequently, this will help achieve total quality management by way of managing the organization’s resources.
The degree to which customer are satisfied will be carried out on a weekly basis. Monitoring the satisfaction of employees involves the use of customer service representative. The primary duty of the client service representative will be to receive complaints and feedbacks from customers as indicated in the organizational structure.
Employee retention will be done after every six months. During this period employees will be evaluated on their overall performance regarding work. As per (Sheridan, 1992). Employee performance is gauged by using of punctuality at work, the personal habits and attitude among others. Skilled employees will be retained for their various positions while new employees will replace redundant employees.

SWOT ANALYSIS

Strengths:

• Improved technology standards hence access to better systems that help monitor patients progress by use of electronic health records.

• Strategic target group in Denmark, making it easier to penetrate into the market.

• The presence of acquisition and mergers in the market such as pharmaceutical companies to help build an ecosystem that will be immune to the rivalry in the health care arena market.

• Donors and investors may have the ability to fund the investment hence increase the financial power of the organization. Better economic control attributes to acquiring of better systems used to treat and diagnose patients with cancer.

Weaknesses:

• Lack of awareness among people on the prevalence of contracting cancer.

• Lack of awareness of early screening to detect cancer.

• Myths and misconception about various cancer treatments methods such as radiotherapy.

• Absence of a proper communication plan.

• Failure to update different management software.

Opportunities:

• Minimize the cost of inappropriate examinations and hospitalization.

• Merging with the private organizations.

• Adopting best practices in communication.

• Proper use of incentive tools on employees.

• Cohesion and uniformity in different parts of the business entity.

Threats:

  • The risk of facing severe competition from other organizations.
  • Poor collaboration between partner organizations
  • Rotation of organizational needs.

 
 
 
 
 
 
 
 
 
 

                                                   References

Ashkenas, R. (1995). The Boundaryless Organization: Breaking the Chains of Organizational Structure. The Jossey-Bass Management Series.Jossey-Bass, Inc., Publishers, 350 Sansome Street, San Francisco, CA 94104.
Dalton, S. O., Steding-Jessen, M., Gislum, M., Frederiksen, K., Engholm, G., &Schüz, J. (2008). Social inequality and incidence of and survival from cancer in a population-based study in Denmark, 1994–2003: Background, aims, material, and methods. European Journal of Cancer, 44(14), 1938-1949.
Ewertz, M., Christensen, K., Engholm, G., Keys, A. M. T., Lund, L., Matzen, L. E., &Herrstedt, J. (2016). Trends in cancer in the elderly population in Denmark, 1980–2012.ActaOncologica, 55(sup1), 1-6.
Jemal, A., Siegel, R., Ward, E., Murray, T., Xu, J., Smigal, C., &Thun, M. J. (2013).Cancer statistics, 2006. CA: a cancer journal for clinicians, 56(2), 106-130.
Lawler, E. E. (1969). 3. Job design and employee motivation. Personnel Psychology, 22(4), 426-435.
Li, H., Giger, M. L., Huo, Z., Olopade, O. I., Lan, L., Weber, B. L., &Bonta, I. (2004). Computerized analysis of mammographic parenchymal patterns for assessing breast cancer risk: effect of ROI size and location. Medical Physics, 31(3), 549-555.
Lichtenstein, P., Holm, N. V., Verkasalo, P. K., Iliadou, A., Kaprio, J., Koskenvuo, M., … &Hemminki, K. (2000). Environmental and heritable factors in the causation of cancer—analyses of cohorts of twins from Sweden, Denmark, and Finland. New England journal of medicine, 343(2), 78-85.
Sheridan, J. E. (1992). Organizational culture and employee retention. Academy of Management Journal, 35(5), 1036-1056.
Tolstrup, J., Jensen, M. K., Anne, T., Overvad, K., Mukamal, K. J., &Grønbæk, M. (2006).A prospective study of alcohol drinking patterns and coronary heart disease in women and men. BMJ, 332(7552), 1244.
Walter, L. C., & Covinsky, K. E. (2001). Cancer screening in elderly patients: a framework for individualized decision making. Jama, 285(21), 2750-2756.