With the ramified economic changes and complex busienss structure, it would be beneficial for starting up Aesthetics clinic for residents of Tampines. It is observed that Aesthetics clinic is set up to residents of Tampines for their better satisfaction. This business is started with a view to attract residents of Tampines in determined approach. The new Aesthetics clinic is set up to provide the medical services and treatment for improving cosmetic appearance through various surgeries. It includes treatment for scars, skin Laxity, wrinkles, moles, liver spots, excess fat, and cellulite and skin disorder. The name of the busienss would be Amaris B. There are several hospitals and clinics. However, with the changes in economic conditions, Our Tampines Hub may look for setting up Aesthetics clinic. It would be hard to determine the actual cost of investment to set up the new Aesthetics clinic but it might take investment of approximate 1million. The Amaris B is the biggest medical center in Singapore which geared up to set up its franchise in our Tampines hub (McKenzie, 2017).
Product line of company
Amaris B would be providing following types of services which help in cosmetic improvement of the clients such as
It is observed that Amaris B aesthetics clinic will be set up our tampines for treatment for scars, skin Laxity, wrinkles, moles, liver spots, excess fat, and cellulite and skin disorder. It helps residents of tampines hub for their improving their cosmetic appearance. It will not only be positive factors for Our tampiness hub but also increase the value of the client’s satisfaction in determined approach.
The main goal of the Amaris B aesthetics clinic is to increase the overall profit and value of the patient’s satisfaction in determined approach. In addition to this, by incorporating Amaris B aesthetics clinic, it will result to deployment of additional funds and increase the return on capital employed in determined approach. It is further observed that there are several sub goals behind incorporating the Amaris B aesthetics clinic which are given as below (McKenzie, 2017).
There will be several benefits for the investors to incorporate Amaris B aesthetics clinic. It will increase the overall turnover and return on the capital employed. Investors could easily create value on their investment.
With the changes and development of the business at Our Tampines Hub, it is observed that the Amaris B aesthetics clinic will attract more patients in determined approach. However, with the advanced technologies and strong brand image, Amaris B aesthetics clinic could easily provide cosmetic surgeries and other benefits. It will also increase the overall outcomes and efficiency of the business.
It is observed that the Amaris B aesthetics clinic needs to focus on its internal and external stakeholders who may influence or get influenced by the business activities of organization. It is analysed that with this new busienss franchise, company could easily establish strong brand image and increased its overall turnover of the market.
This research analysis has been implemented for the betterment of the society and economic at large. It will helps in assessment of the existing business and target market of the Amaris B asthenic clinic. At Our Tampines Hub, Amaris B will set up the clinic for the better or treatment for scars, skin Laxity, wrinkles, moles, liver spots, excess fat, and cellulite and skin disorder of the residents living in hub. However, as per the statistical data, the market size of the asthenia and psychic disorder Amaris B is approximate 258301.
The Amaris B could use sample survey or monkey survey to collect the imperative information from the people living in Our Tampines Hub. It is assessed that in health care industry, clients are more inclined towards grasping best quality services. Generally market could be divided into four different groups such as geographic demographics, psychographics and benefits segmentation. This Amaris B aesthetics Clinic offers various benefits to the residents of Tampines (McKeever, (2016).
The Amaris B aesthetics clinic is set up to provide treatment for scars, skin Laxity, wrinkles, moles, liver spots, excess fat, and cellulite and skin disorder of the residents living in Our Tampines Hub. For instance, there are several patients either from outside of Our Tampines Hub or from inside who comes for the cosmetic surgery and other psychological treatments. Ideally the main geographical focus of Amaris B would be on the residents of Tampines Hub (Schaper, et al. 2014).
The Amaris B aesthetics clinic could bifurcate the choice, by representing the middle and aged professionals with high level of income belonging to upper social class among residents of Tampines. It could also focus on the clients who prefer the luxury lifestyle and wants to avail premium services.
The main focus would be on providing highly advanced services such as cosmetic surgery, treatment for asthenia and psychic disorder to the people having income from MYR 15000 and more. Residents having income less than MYR 15,000 may be bifurcated for the potential of other services. In addition to this, People who fall in the age group from 22 to 70 years would be the main target clients. Nonetheless, females’ candidates having age between 35 years to 50 years are more inclined towards getting services from Amaris B aesthetics clinic.
Amaris B aesthetics clinic could offer several benefits such as health care services include treatment for asthenia and psychic disorder to residents of Tampines. This will help the Amaris B to grasp more clients by offering customized health care and asthenic services for the residents of Tampines. This customized cosmetic surgery will be helpful to get particular improvement of cosmetics appearance (Hopp & Greene, 2017).
It is observed that residents of Tampines are sophisticated and inclined towards grasping best quality of services irrespective of the price factors. Residents of Tampines are having busy schedule and find really hard to manage time. Therefore, the Amaris B aesthetics clinic could easily prepare customized good health care packages for treatment of scars, skin Laxity, wrinkles, moles, liver spots, excess fat, and cellulite and skin disorder for the residents of Tampine (Mason, & Stark, 2014).
The market size of the Amaris B aesthetics clinic is very limited. There are only 258310 residents of Tampines. It is observed that the residents of Tampines could use these services treatment for asthenia and psychic disorder (Shum and Lee, 2014).
Trend based on research data
The trend analysis could be used to estimate the future demand and turnover of Amaris B asthenic clinic. It will help management to evaluate available resources are enough for the operation to meet its current liabilities in market. After evaluating all the details and information, it is considered that people in Tampines have been facing problems and health issues either related to asthenia and psychic disorder or mental stress issues. Therefore, on the basis of past data, it could be inferred that Amaris B asthenic clinic could book calendar for residents of Tampines for the treatment of their skin disorders and pigmentations. This will not only save the time but also the cost of skin surgery. With the increasing complexity of the daily lives of the residents of Tampines, the Amaris B aesthetics clinic could come up with the customized cosmetic surgery plans for them (Kwok & Yu, 2013). It will not only increase their satisfaction level but also save their time in determined approach. However, proper consultancy to the people at Tampines could help them to arrange the proper customized cosmetic surgery plan (Ford, Bornstein & Pruitt, 2010).
The SWOT analysis of the Amaris B aesthetics clinic reflects the strength, weakness, opportunity and threats in determined approach.
|
Strength The Amaris B is accompanied with the high advanced technologies which may attract people in Tampines (Mullins, 2012). Our Tampines Hub is associated with the more than 258301 residents which is quite high number. This Our Tampines Hub will be complete niche market for the Amaris B which would indulge in providing treatment for skin Laxity, wrinkles, moles, liver spots, excess fat, and cellulite and skin disorder . |
Weakness The main weakness of the Amaris B is related to its restricted number of its target market. There will be high traits and penalties which may result to increased penalties If company fails to meet the current liabilities. |
|
Opportunity It is observed that people in Our Tampines Hub will be more inclined towards grasping cosmetic treatment services from the Amaris B. It is analysed that people in Our Tampines Hub will trust the Amaris B franchise due to its parent company. It would be easy for the company to customize the services and products as per the client’s needs and demand in market (Laakkonen, 2017). |
Threats It is observed that due to advanced technology and online booking methods, people in Our Tampines Hub, The Amaris B may come up with the customized cosmetics surgery packages. (Ward, 2016). |
It is observed that marketing plan is the key success factors for the busienss success. It is analysed that marketing plan of the Amaris B could be based on the cyber computing system, questionnaire and online survey. It will attract high number of clients. It is considered that marketing plan strategy of company would be related to organizing proper seminars for the promotions of its cosmetic surgery packages (Jackson, 2017).
It is observed that there are following pricing strategy which could be undertaken by the Amaris B for providing treatment for the cosmetic surgery for scars, skin Laxity, wrinkles, moles, liver spots, excess fat, and cellulite and skin disorder.
Market lead pricing methods- This pricing strategy could be divided into two main parts.
|
Penetration pricing |
Skimming pricing strategy |
|
This pricing strategy is followed when new the Amaris B wants to penetrate the market with its highly attractive cosmetic surgery offers. Company could develop effective cosmetic surgery packages to grasp potential clients in Tampines Hub. |
This pricing strategy is used by the company having strong brand image. However, strong brand image of its parent company will be helpful for the Amaris B to run business effectively. |
Profit-Let pricing method
Competition based pricing model- This pricing strategy is used to compete with the rivals. There is no rival in Tampines Hub.
Clients based pricing- This is the most imperative pricing strategy. It will allow company to set cosmetic survey price as per the client’s needs and demand (Peters, Blohm & Leimeister, 2015).
Cost based pricing method
This strategy would be more beneficial for the Amaris B. It would allow management to sale its cosmetic surgeries packages at the Break-even point to attract more clients.
Profit based pricing strategy
It is observed that the Amaris B could set its entire cosmetic surgeries packages price for the people in Tampines Hub. However, in the starting, company needs to set lower price by having lower profit in its business (Hills, 2015).
It is observed that in order to promote the Amaris B, management could follow proper strategic programs such as organizing the seminars and use of banners in Tampines Hub. However, with the use of cyber computing enterprises resources planning, it could promote its business online through social media and other methods. The Amaris B could use its existing brand image to promote its new franchise in market. Loyalty card and new membership approach could also be more beneficial for promoting the cosmetic surgery packages for clients.
It is evaluated that the Personnel Requirements to run the franchise Amaris B would cost around $ 7000. It would b 3 doctors, 2 receptionist and 1 admin staff.
|
Staff Requirement |
||
|
3 doctors |
2000 Monthly salary |
$ 6,000.00 |
|
2 receptionist and |
300 Monthly salary |
$ 600.00 |
|
1 admin staff |
400 Monthly salary |
$ 400.00 |
After evaluating the information and determination of the fundamental need of Amaris B could easily sets norms and regulations to run the busienss effectively. It will help company to implement proper busienss functions and effective business plan (Titman, Known & Martin, 2017).
This financial analysis helps in evaluating the financial performance of company. It also helps in reducing the overall cost of capital and increasing the return on capital employed of company.
The main operating expenses of company would be
The operating expenses of income statement cover this amount of expenses (Waxman, ed., 2017).
|
Assumption for calculating total revenue |
Number of patients |
Per customers charges |
Total charges |
|
Cosmetic surgery |
100 |
4000 |
400000 |
|
Routine check-up |
50 |
1000 |
50000 |
|
Facial improving services |
50 |
1200 |
60000 |
|
Assumption-2nd The cost of goods sold would be 60% each month) |
It is observed that Break-even point of the Amaris B is the point at which company would have no profit and no loss (Harrington, Smith & Bauer, 2017).
The break-even point of Amaris B would be total sales of $ 5, 00, 00 and 250 patients.
It reflects that when Amaris B will provide its services to 250 patients in a year then it will reach the break-even point in year.
|
Computation of Break-even Point analysis |
||
|
Particular |
Amount |
Number of Patients |
|
Break Even point |
500000 |
250 |
This graph reflects that company would achieve the break event point when it would provide its services to 250 patients. It is considered that if Amaris B aesthetics clinic increases its cosmetic improvement services beyond 250 then it will increase the its profit as well.
The Amaris B could use following sources of funding such as debt and equity funding. However, due to the high profitability, company could raise use debt funding (Maree, 2017).
Computation of the weighted average cost of capital
Computation of the weighted average cost of capital of Amaris B
This weighted average cost of capital of the Amaris B is done to analyse the capital amount of investment and return available on the capital investment.
|
WACC |
Capital Amount ($) |
Cost of capital |
% of portion |
WACC |
|
Equity (Angle investors) |
900000 |
9.28% |
0.6 |
5.6% |
|
Debt |
600000 |
4.00% |
0.4 |
1.6% |
|
Total capital |
1500000 |
WACC |
7.2% |
Computation of the weighted average cost of capital
|
WACC |
E/V * Re + D/V * Rd * (1 – Tc) |
|
|
(0.64)(9.28%) + (0.4)(1.6%)(1-15%) |
|
|
WERE + WDRD (1-T) |
|
|
(0.64)(9.28%) + (0.4)(1.6%)(1-15%) |
|
WACC computed |
7.3% |
Computation of the net present value and IRR of company
Net present value- It is the differences between present value of cash inflow and present value of cash outflow. In this case, Company has $ 2, 20,575.62 net present the value of company.
IRR= It is the minimum required rate of return which company needs to earn. However, company has 19.21% internal rate of return from its business (Uslu, 2017).
|
Expected financial return |
|||
|
Years |
Cash flow |
P.V. Factors |
P.V. amount |
|
0 |
-$15,00,000.00 |
1.000 |
-$15,00,000.00 |
|
1 |
$8,00,000.00 |
0.933 |
$7,46,491.49 |
|
2 |
$8,00,000.00 |
0.871 |
$6,96,561.93 |
|
3 |
$8,00,000.00 |
0.812 |
$6,49,971.94 |
|
Net present value |
|
|
$2,20,575.62 |
|
IRR |
19.21% |
Total capital required from the angle investors and proportion of the investment
It is observed that total equity shareholders’ investment which company offer to angle investors would be 40%. However, it will be cost around 3.2% overall all. Nonetheless, company could decrease the financial leverage with this angel investor’s investment (Croce, Tenca & Ughetto, 2017).
This risk analysis is implemented to determine whether company would be having positive business or not from its business functioning (Hoyle, 2017).
It is observed that the services offered by the Amaris B will be restricted to only the 15000 persons who reside at Our Tampines Hub. Therefore, potential risk would be related to acceptance of the services offered by Amaris B. In addition to this, other potential risk would be related to cost factors. If the cosmetic surgery is not cost effective and not up to the mark then it will result to non-acceptance of the serviced offered by Amaris B offered in market (Hoyle, 2017).
The main alternative course of action of the Amaris B would be use cyber computing enterprises resources planning in the business. It will help company to grasp potential clients through its online dashboard mechanism (Shen, Yan & Tzeng, (2017)
Conclusion
Now in the end, it could be inferred that the Amaris B should provide best possible offers to clients at Our Tampines Hub. It will help people at Our Tampines Hub to grasp attractive offers to improve their appearance. It will surely add value to the residents Our Tampines Hub as they would save time and cost if they could directly take cosmetics services from Amaris B.
References
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Ford, B.R., Bornstein, J.M. & Pruitt, P.T., (2010). The Ernst & Young business plan guide. John Wiley & Sons.
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