The main purpose of this assessment is to analyse the business proposal which the management is considering. The business which is being considered is a pharmaceutical business which would be providing health nutrient products and also services relating to health care for the customers. The business plans to develop a medical portal which would be incorporating all the products which the business intends to offer and also the services of different doctors and department wise segregation for the same. The management would be targeting the customer group who are more concerned about fitness and physical strengths. The customers would have a variety of options which is related to different doctors based on specialization and also the health problem which is faced by the customer. The name of the business as per the opinion of the customers would be Medmax. The overall discussions of the study will be based on understanding the different business vehicles which are available in the U.K. The study will be conducive in identification of the relevant services as per the issues which may apply pertaining to personal taxation issues.
In order to make the business unique and more attractive among the consumers, the business plans to develop a portal which would not only facilitate free trade of health nutrients but also enable the consumers to chat with doctors regarding their health problems and obtain valuable feedback from the same. In case of urgent need and demand of the customers, video chatting option is also available to the clients. The client can select from a list of doctors and also view their profiles and work experiences before making decisions as to which doctor is to be consulted. The video chatting option is a new feature and can give the business a competitive advantage. Another important facility which the business will be providing is home services in case of any tests, scans which would be required by the customer. The reports for such scans will be provided by either mail or directly in the customer unique Id portal.
Some of the other excerpts of the information will discuss about the requirement for obtaining adequate investment and working capital finance along with the financing options such as debentures, shares, options and warrants. These considerations will be included in the report as per the evaluation of the resent terms and future terms investment decision in the business. The report will also generate relevant information pertaining to other aspects of study which will know about the alternative management structures and how operations might be organised. The analysis would be determining the marketing strategy and also various legal and statutory requirement which the business needs to follow. This section of the discussions will be followed with formulation of a marketing and sales strategy along with identifying the issues pertaining to labour and human resource. The latter part of the discussion will be aimed at the evaluation of the various type of the sources of considering the information as per the planning of the knowledge management and information management.
The review of the possible constitutions of the various healthcare service across UK envisages the developments with offline services provided by the companies in the field of health related services and various general healthcare medicines and products. The present organizations available in the country for supporting such activities are depicted in form of improved health care centres and clinical but out company will be focusing on providing health care services in the form of video chat and chat support option in the website. The business plan encompasses on the idea of creating unique online platform which will offer varied nature of the services associated to search health related services. The users of the services will be able to find a suitable doctor in the website along with their service rating and rates. In addition to this, most of the health care services are seen to be available in the particular category by providing general services offline. The customers would be able to better interact with the doctors and the medical files and the record would be maintained in a better way under the customer profile section in the website. Therefore, the clients are aware of existence of such a service and opportunities which are considered to be endless. The risks of the website service may be minimised with various types of the opportunities for the confirmations, which will be available to the users of the website before selecting a particular service (16).
The taxation guidelines for the UK has stated that the country has a long history for being the sixth largest nation for trading in the world today. The Government is further seen to be acutely aware of the importance of the UK to remain competitive in the global investment. This is further seen to be depicted with the various types of the commitments which are related to handling of the commercial disputes (15). The present legal system in the business has been depicted as per the commercial disputes which is widely used with international contracts. The relevant legal arguments are responded in terms of tax are depicted to be conducive as per the legal requirement. Some of the other aspects of the study needs to be focused with the consideration of the delivering corporate tax requirements of the website. These systems need to be considered in terms of the relevant areas of adhering to the legal tax norms associated to the website service (14).
The available vehicle for delivery online services needs to be depicted as per different types of the social media platforms such as Facebook marketplace. Furthermore, the relevant service can be understood as per taking assistance from financial institutions pertaining to legal constraints. In order to know about the advantages, associate to the taxation system, it is important to identify the relevant service as per basic rate, higher rate and additional rate. The details for the same can be identified with the following tax structure.
|
Type of Rate |
Dividend income |
Savings income |
Other income (inclusive of employment) |
Tax bracket ( income above tax-free allowance) |
|
Basic rate |
7.5% |
20% |
20% |
£0–£46,350 |
|
Higher rate |
32.5% |
40% |
40% |
£46,351–£150,000 |
|
Additional rate |
38.1% |
45% |
45% |
Over £150,001 |
Table: UK tax rate advantages as per the taxation slab of 2018/2019
(Source: 1)
Some of the other advantages of the taxation system needs to be identified as per lower amount of corporation tax rate which will be able to avoid non-relevant changes of minimised distortions. The other relevant advantages of the tax systems can be obtained in form of creating a stable tax system which are aligned with modern practice in the business. The tax legislation is also conducive in reducing in the overall complexity of the business. The present corporate tax rate of 23% was further recognised to go down to 21% in April 2019. In the U.K. there is non-existence of the additional local taxation available as per the profits of the companies. The important nature of the corporate tax rate in the country needs to be also seen in terms of lowest declared tax rate as per G7 (4).
The dynamism in the financial services of the country can be inferred with fostering the innovation, which is not just restricted in the financial services. Moreover, the initiatives of the company pertaining to the pharmacy and health care sector can be depicted as per attracting higher number of R&D investments from a range of world’s top life science company. The improvement activity as per fostering innovation is evident with Tech City in East London which is related to high growth in the technology sector (5).
It is also mandatory to understand the elective tax exemptions associated to the overseas trading of the companies based in the UK. In addition to this, some of the various types of the other relevant initiatives taken by the company can be considered as per the complete exemptions of the tax on the dividends and underlying tax requirements. The changes in the taxation policies in the UK can be further identified as per combination of dividends and Cg exemptions. The peculiarity in the outbound dividend along with the withholding tax formulations can be seen in terms of wide treaty of network, withholding taxes of interest and royalties (7). “HM Revenue & Customs (HMRC)” is considered as the main taxation authority which agrees to the Advance pricing agreements as per APA along with other fiscal authorities for enabling complex transfer pricing issues which are unilaterally agreed with the HMRC. In 2002, the country introduced several numbers of other measures which are needed to be depicted as per the various types of the other factors which are in agreement with “Advance Pricing Agreements (APAs)”. This is evident as per the complex transfer pricing agreements as per HMRC (6).
It needs to be further considered that in 2002, the country was able to consider a solid exemption as per capital gains which are realised as per disposal as per 10% of the greater shareholding. Moreover, the selling company is needed to be a member of the trading group and shareholding held for a time period of ten years. These are ascertained as the main rationale for the selected business of the website on health care doctors (8).
The marketing and sales strategy of Medmax needs to be taken into account as per the different types of the measures which will conducive to draw more number of doctors of different specializations as well as customers. To ensure that the doctors decide to dedicate and serve customers from the website, the main initiatives will be considered with the number of services as per knowing about the demand for a particular health related issue (10). Medmax major focus will be put on different kinds of health related services in the form on online services and video chat support option, which are mostly popular in the U.K (9). The company will be collaborating up with various health care centres and GYM and yoga centres to make customers well aware about the products. This help them reach out direct potential customers interested in the services and products offered by the company.
The target set for the sales strategy will be considered with the increase in the total number of healthcare services to 20% in the second year. Furthermore, the business plan also aims to increase the overall customer base by 35%. At present, none of the health care service providers focuses on online support of various kinds of health services and products. However, Medmax will differentiate the various kinds of services offered according to the demand for the same by the consumers. The important medium used by the company for formulating a marketing and sales strategy should be included in various social media sites (11). The formulation of marketing strategy should be taken into account with social networking sites such as
The selected platforms of the social sites will be essential in terms of common pace for both the doctors and the users of the service. The doctors will be able to know about the relevant forms of the services, which are demanded by the consumers and the respective frequency for the same. Similarly, the customers to be able to compare and choose their appropriate doctors by going through the experience and the expertise of the doctors (12).
The marketing and sales strategy for such a business will be further considered with two-way communication with the consumers. The business will also consider valuable feedback of the customer, which are agreed with the various types of the activities agreed with boosting of the online sales and business performance. Some of the various types of the other strategies needs to be conducted as per hosting a video chat in Instagram and considering the information in the social feeds. In addition to this, the marketing strategy will be able to boost the sales of the business with the use of hashtags in the social media. The USP of such a business needs to be inferred with creation of micro contents for the social feeds and use of infographic information (3).
The monitoring of the marketing and sales strategy needs to be considered with ensuring that Medmax adheres to the requirements of the clients. In addition to this, the monitoring of sales strategy will be helpful in know about the present loopholes in the existing services of the business (13). Some of the various types of the other usefulness of the monitoring sales strategy will be essential in terms of meeting the revenue targets. Moreover, the company will be also able to track the exact progress with the increasing customer base. The portrayal of the monitoring tactics should be also included as per the enhancing the service of a particular doctor who is lacking in providing a certain service. The consideration of this strategy will be beneficial in knowing about the exact strategy of marketing which needs improvement for improving the performance of the company (2).
Finance plays an important and a perspective role in the prospect of the company. The financial structure of the company should be such that the company evaluates the various source of finance and the influence of the same in the activities of the business. Medmax will be a new venture where the capital requirement for the company will be primarily based on the capital investment the company will be spending on the development of the website development and the software development for the company which will be used for the development of the Application process for mobile app users (18).
The Capital expense for the company and the source of revenue for the company will be the key factor in determining the business factor for the company and the business risk of the company. The initial capital requirement for the company is estimated to be around 1 million where the capital requirement and the investible amount in the company will increase by 10% per year (17). The increase in the capital requirement for the company will be supported by the growing operation of the company and the business activities. The initial capital requirement for the company can be fulfilled by the various financing options available for the company like private investment, borrowings and investment through angel investors. Borrowings at the initial stage from friend’s family and personal investments acts as the best source for financing but may be limited for the business prospects. It is important for the company to understand the viability and importance of financing which can materially influence the operations of the company. In the initial stage of the business it is advisable for the company for not increasing the financial risk of the company by taking too much of borrowings for the company (20). The project financials for the company incorporates the revenue estimates for the company and the key capital expenses for the company. The financing structure of the company will not remain static and the requirement of the same will differ as the operations for the company expands. There will be different sources of financing structure available for the company in the long run course of the business when the operations of the company stabilizes and profitability of the company shows a growth trend. Financing through Shares and debentures for the company can help the company get different possible sources of funding for the company (19).
Revenue for the company and the operating income of the company determines the financial strength of the company in terms of future prospects of the company. The revenue for the company will be determined by the number of services taken by the customers in the different types of pharmaceutical products offered. The fees for the health care service related will vary from the type and level of services required by the customers and simultaneously the revenue was forested for the company (22). The forecast for the revenue and the key variable expense for the company was determined by looking at the business environment and the demand of the services in the United Kingdom. The cost of goods sold for the company will be in the service-providing region, which will act as a platform for both the doctors and patients. Commissions will be generated from both the parties taking the services and which will be the revenue for the company in the form of services charges taken by the company. (24). The key variable expenses for the company will be the marketing and advertisement expenses and the salaries paid by the company. Marketing and sales expenses acts as a key factor for the company which will determine the know-how about the product services the company delivers in the industry. The assets of the company will be the different kinds of health related protein products and lab analysis tools and equipment’s that will be used for the operation of the business (23).
Risk management is an important tool, which should be used by the company for avoiding volatility and unavoidable circumstances for the company. The company will be developing a risk management policy in the different aspect of the company, which will primary deal with operations and the financial part of the company. The operation of the company should be well structured in terms of good management guidance and efficiency in the operations of the company (26). Business Strategy and use of scenario analysis for forecasting the revenue of the company can be the important aspect, which may be used by the company for managing the risk associated with the company. The risk management of the company should also include the use of sensitivity analysis by identifying the key factor and input for the company and the influence of the same on the operations of the company. This will help company forecast the operations of the company and the key material changes for the company (25).
Every business has an opportunity for performing better and has a threat, which helps the company identify the key sensitive area for the company. Both opportunities and threats helps the company identify various business internal and external factors, which plays a significant role in the operations of the company (27). The key opportunities for Medmax will be the growing Pharmacy and Health Industry and the demand for such personalised services which will be the key factor determining the revenue for the company. The Company will be also providing online and web support in the form of personalized video chat option for the customers so that the customer base for the company remains intact this will act as key opportunity for the company to cover all its expenses at the initial stage of the business (29). The key threat for the company will be the expenses incurred by the company and the coverage of the initial expenses in the form of investments done by the company. The company will be forecasting and taking up the risk management policy so that it can decide the possible range of scenario analysis for the operations of the company (28).
The company Medmax has a unique service-providing plan where the cost of goods sold for the company will be in the form of website development and inventory of different kinds of protein products. The profitability for the company is forecasted to be on a positive side showing a growth trend as the operation and the expansion of business occurs. The source of revenue generation will be the service provided by the company from the doctors and the health products it would provide. The revenue collected from the company will be reinvested in the business.
|
X-Axis Label |
Revenue |
Gross Margin |
Net Profit |
|
Year 1 |
$5,40,000 |
$2,28,343 |
$3,11,658 |
|
Year 2 |
$5,94,000 |
$2,46,265 |
$3,47,736 |
|
Year 3 |
$6,53,400 |
$2,67,251 |
$3,86,149 |
|
Year 4 |
$7,18,740 |
$2,90,262 |
$4,28,478 |
|
Year 5 |
$7,90,614 |
$3,15,431 |
$4,75,183 |
|
Revenue |
Profit Before tax |
Pre-tax Net Margin |
|
|
Year 1 |
5,40,000 |
4,45,225 |
82% |
|
Year 2 |
5,94,000 |
4,96,765 |
84% |
|
Year 3 |
6,53,400 |
5,51,642 |
84% |
|
Year 4 |
7,18,740 |
6,12,112 |
85% |
|
Year 5 |
7,90,614 |
6,78,833 |
86% |
The management structure for the company helps in defining the different level of activities of work and the different aspect for person required for fulfilling the same. A proper management structure will help the company in defining the goals and objectives of the company (30). A coherent management structure will ensure that the operations of the company is carried on smoothly and efficiently. The organisation structure of the company should be well planned and the structures so that the various parts of the operations of the company are covered (32).
The top management structure for the company will be the owner of the company who will be at the top authority level for the company. The marketing manager and the office manager will be under the top management who will directly reporting to them. The operations of the company will be primary dealt with the operations manager of the company and the sales related work will be dealt with the sales manager of the company.
The key personnel of the company includes the key employees of the company who will be engaged with the activities of the company as per the designated role they are given.
|
Job Title |
Name |
Expected staff turnover |
Skills or strengths |
|
Marketing/ Sales Manager |
Harry Williams |
5 Years |
Relevant qualifications in Sales/Marketing. At least 5 years experience in the industry. Award in marketing excellence |
|
Finance Manager |
Andrew Sons |
3 Years |
A Qualified Chartered Financial Analyst and MBA from Harvard Business School. |
|
Operations Managers |
Tom Kirkman |
4 Years |
A Qualified Maters Degree in Medicine from Harvard Business School. Specialisation in Management |
|
Event Coordinator |
Harry Paul |
2 Years |
Relevant Qualification in Event Management and Operations of the company and did his Post graduation in Clinical Research MSc. |
There will be various kind of operational work and different kind of activities in which the company will be engaging for conducting the operation of the company. The company requires a well base of doctors and sales person in order to fulfil the various activities and operation of the company (29). The doctors will be handling the query of the various kinds of health related query raised by the consumers and the various kinds of health related products. The company will be exploring the various available options for the recruitment of the same. The addition of other different kind of services will primarily base on the initial demand created by the consumers and the efficiency shown by the management of the company in handling all the services required by the consumers. The above requirement will be done by the company by developing a Human Resource (H.R Policy) policy by the management of the company so that the various kind of requirement are fulfilled by the company according to the pertaining rules and regulations of the company (28).
The key success for Medmax will be based on how efficient the company is in managing the operations of the company and expanding the business activity for the company. The management structure for the company should be such so that the desired goals and objective for the different persons are defined and the level of work they carry out (26). The management of the company will be developing a well-established plan and strategy for the company, which will act as a guideline for the company. Moreover, the company will be also able to track the exact progress with the increasing customer base. The primary issue which the management of the company can face related to the company operations is the handling of requirement of services desired by the customers and the availability of such services. The management of the company should ensure that it covers a wide range of doctors and different level of health products so that the company is able to fulfil the various demanded services.
In today’s world, the technology is continuously evolving and therefore businesses need to stay on their toes relating to any upgradation of technology. Knowledge Management is a systematic process of managing, maintaining and sharing information within an organization and it is considered to be vital part of many businesses (46). The knowledge management and information management system in a business would help the management to have access to various data which would be for the client as well as the suppliers so that the management can take appropriate decision relating to the business operations (33). The management recognizes that an efficient and effective knowledge and Information Management system would help the business in analyzing any information and also protect the data of clients and the suppliers of the business. The business which is being introduced would be dealing in Pharmaceutical products and the main products of the business will be health nutrient products which would be available for different age group. The business would also be provided healthcare services to the clients through the medium of digital platform.
The role of Knowledge management system has gained substantial importance over the years and is considered to be an important asset for most of the businesses (34). The management of the company plans to develop an appropriate software which would be displaying all the options which is related to online sales of health product and also a section showing the services of specialist and general doctors of the business. The management anticipates that the business would be attracting certain loyal customers and also enter into a tie up agreement with Gyms and fitness centers. The knowledge management system aims at protecting and maintaining the data of such customers. The data of the gyms and certain customers are important and should be kept secure. The data management system which the business plans to develop would be adhering to the principles of confidentiality. The plan of the management is to develop software which would be offering variety of services and the plan of the management is to develop a software which is user friendly in every aspect (35). The management plans to appoint professional software developers who will be developing a software which would be tailor made for the business of Medmax. The management wants the Knowledge system to systematically segregate heads under which variety of options and information would be available. One of the heads would be including an overview of the business and the mission and vision of the business. Another head would be classifying the products and services which are to be offered by the business and the respective prices and services charges and also in case of services the duration of treatment which the customers’ needs to undertake (39).
In addition to this, the management also plans to develop an appropriate section in the portal for storing client’s information and therefore the management plans to appropriately sub-divide different areas of operation in the website of the business (47). The subdivision is provided below:
The Information system of Medmax aims at analyzing the information which is available to the business and the same is useful for taking key managerial decisions of the business (45). The information system can also help the management to make comparison between the sales of services and also keep a track record regarding the number of clients who are currently consulting under a doctor and also the number of new customers who are taking appointments for doctors and also enlisting for the protein products (42). The data collected would also be including information relating to the competition level which the business of Medmax can anticipate.
In addition to this, the management also wants to introduce an ERP system which can help in keeping track of the funds collect and appropriated for different activities. The ERP system would also form a part of the system which is to be developed by professional developers. The management is of the opinion that the business would be able to effectively maintain the accounts and also ensure that there is a routine scrutiny of the financial information of the business. The management of Medmax recognizes the importance of ERP system for effective accounting in the business and also keep a track record of the cash inflows and outflows of the business. The business of Medmax plans to allocate a part of the startup cost to the new software development. The knowledge management system is a crucial part of the business and therefore should be planned appropriately. The management of Medmax should also consider the technological advancements and choose the most advance software for implementation so that the business can stay up to dated with the technological level in terms of product level and distribution system. The management anticipates that improvement in the technological level would allow the business to compete effectively with any competitors.
The management of Medmax need to consider the various compliance requirements before accepting the business plan (36). The various issues which the management of the company plans to considered are listed below:
Therefore, from the above discussion it is clear that the management needs to consider the above legal and compliance issues which can affect the decision of the management as legal aspects cab increase the overall costs of the business.
Conclusion
The above assessment shows the business plan which is formulated by the management for opening a business which would be providing online medical services to the clients. The management plans to build a team of active professional Doctors who have appropriate knowledge and skills for any health problems which the customers face. In addition to this, the business would be recruiting new medical experts who have appropriate knowledge of health nutrients for the purpose of serving the customers in a better way. The management for such a purpose has also entered in collaboration contracts and tie up agreements with Gym and fitness centers so as to facilitate the clients of the business with the best possible services.
The above discussion also shows that the management of the business is also considering the various tax situation which the business can be facing and the tax advantage which can be taken by the business. The management also has formulated a plan to effectively market the services which is offered by the business and the promotion would be through advertisement in social media as well as the paper media. The business aims to provide a one stop destination for all clients who are interest in training and fitness exercises through sports. The management has also decided to incorporate skill personnel’s in the sales team so that increase the overall sales of the business.
In additional to this, the management also plans to implement and develop a proper Knowledge Management Plan and a website which can be user friendly. The management also plans to make significant investments in R&D so that the software of the business is always updated. In addition to this, the above discussion also puts emphasis on legal and compliance issues which are applicable on the business.
Reference
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