Patton-Fuller Community Hospital Essay

QUESTIONS1. What extra factors encountered in international as comp bed with domestic financial attention? Discuss each(prenominal) briefly.International financial management is faced with many more(prenominal) air factors than domestic financial management. For instance, international creasees are required to choke in many varied financial aspects around the world. International financial management must deal with clients, stockholders, vendors, and new(prenominal) jobes across a much wider matte than domestic financial managers. Investment decisions regarding international issues whitethorn in any case be greatly affected by the exchange rate, taxes, and arbitrage. It may also be more of a ch onlyenge to manage financial records when involved in international trade. Additional remnants intromit higher rates of return as sanitary as the interest-rate parity theory (IRP).The IRP is the forrard premium or discount that should be equal and opposite in size to the diff erence in the national interest rates. The expo convinced(predi pukee) to the decline of foreign silver is also a serious factor regarding international financial management. An additional factor is the fact that many international subsidiaries may choose to constitute independently instead of for the multi-national alliance. This would in turn prove disastrous for the ripe friendship. International companies start much more access to m maviny as they privy seek credit and financing in other countries too their own. Finally, financial managers allow the opportunity to diagnose foreign investments.2. What unalike types of businesses operate in the international environment? Why are the techniques and strategies available to these firms different?There are many types of businesses that operate in the international environment. every business which breachicipates in business transactions with other nations are part of the international environment. Any disposal that is i nvolved in imports and exports would definitely be involved. As well, any gargantuan firm that communicates daily with dignitaries from other countries would also be involved in the international environment. These techniques and strategies may be different because of these businesses gross domestic product. In addition, these organizations advancements in technology, knowledge, and talk may lead to higher economic development therefore, the opportunity to enroll in international trade and globalization.3. What is meant by arbitrage salary?arbitrage profits involve investments with little to no risk. An investor makes arbitrage profits by buying in one market with cheap currency, and then marketing in other market. This strategy does not involve an investment of funds or any risk bearing. However, the investor would still make a sure profit.4. What are the markets and mechanics involved in generating (a) simple arbitrage profitsSimple arbitrage involves both or more mark ets. This type of duty does not include exchange rates across all markets with a single currency. Instead, simple arbitrage is taking advantage of the differences in impairment regarding one asset.(b) and triangular arbitrage profits?Triangular arbitrage is the do of converting one kind of currency to other, then converting it to some other currency, and the finally converting foul to the original currency. Triangular arbitrage usually surpasss within a little term frame. Traders involved in triangular arbitrage would have to have advanced equipment and knowledge in order to effectively and quickly administer advantage of this kind of trading.ReferencesKeown, A., Martin, J., Petty J., & Scott, D. (2005). Financial Management Principles andApplications. assimilator Hall, Inc.Patton-Fuller community infirmaryOrganizations are constantly looking for new ship buttocksal to grow. A part of this includes budgeting and forecasting which prepares a corporation for its futur e endeavors. Corporations seek options for growth and Patton-Fuller Community Hospital has discovered troika options for expanding their operating theatres. (Apollo Group, Inc., 2010). These three options include vent public done an Initial Public Offering, acquiring another organization in the healthcare industry, and merging with another organization. This essay depart provide the strengths, weaknesses, opportunities, and holy terrors of the three options Patton-Fuller Community Hospital has. breathing out public by dint of an Initial Public Offering (IPO) has its advantages. For instance, creating currency that can be utilise to fund growth and generating liquidity for founders, investors and employees, among others (Benton, 2005). When an organization goes public the largest concern is creating shareholder wealth therefore, choosing an IPO provides the funds necessary to increase shareholder wealth.However, acquiring another organization in the healthcare industry may fort Patton-Fuller to increase the firms assets. According to Patton-Fullers 2008 financial controversy (Apollo Group, Inc., 2010), the underway ratio is 5.41 indicating that Patton-Fuller has $5.41 in up-to-the-minute assets for every $1 in current liabilities. The healthcare industry is a costly business therefore this ratio could use improvement.Merging Patton-Fuller with another organization provides benefits that this hospital lacks. Patton-Fuller is current run lowing on remodeling the hospital waiting area and has recently puzzle out an issue with the nursing staff. Merging with another organization could provide the aid this hospital requires in the sense of meeting its long-term goals as well as increasing its operating income return on investment which is before long at 12.3%.We will examine the weaknesses of the three expansion options. There are many in safeices of going public through an IPO. The major(ip) disadvantage of going IPO is the cost and time inv olved in the transformation. Managers of top business people grow exhausted from dealing with attorneys, bankers, investors, accountants, etc. Another disadvantage is going public gets very expensive. Fees are paid out for sundry(a) things and to various people. Losing confidentiality, flexibility, and control is another disadvantage. The SEC requires that all public organizations acquittance information about public affairs, profits, etc. Patton-Fuller has to find if giving up their freedom is the direction they motive to gear toward.acquiring another organization in the equivalent industry can have its disadvantages. One major disadvantage is the industry being purchased having financial problems. This kind of organization is not worth the investment. The price to purchase may be a good cost for a bad reason. Cost characteristics can be another issue. Competitive problems are another issue. Everyone is trying to go after the homogeneous business. Some organization or cut thr oat concerning competition. If Patton-Fuller takes this route, they need to make sure the industry being purchase is worth the investment. They do not need their investment to work for them.Merging with another organization another organization could definitely bring on some challenges. When merging, votes must be approved by the stockholders. Stockholders play a big role in businesses merging. Obtaining the votes can be time consuming. Trying to get at least(prenominal) two-thirds or more votes is a task. There could also be contest of objective between the two businesses. This could be a huge problem. When the two businesses do not see eye to eye, this can cause fluttering within the organization. Then there is always the notion of a business becoming too large. When a merging business becomes too large to quick, this leads to higher costs. When merging, Patton-Fuller need to do their research about the business they want to merger with. Merging with the wrong organization coul d be a high-risk task.Patton-Fuller needs to do their research and weigh their options about all three expansion options. Patton-Fuller need to think long-term and what would be beneficial to the hospital long-term.The Patton-Fuller Community Hospital has been serving its local community since 1975 however the executives at the hospital now believe it is time expand from being a privately and have three options for expansion going public through an IPO, acquiring another organization in the healthcare industry or merging with another organization. Opportunities of each approach that could benefit the Patton-Fuller Community Hospital will be determined and discussed.When a privately held coming goes public, it usually sum that the company is selling shares of its stock for the first time to the public. This core that a once privately held company now is owned by public stockholders. The change of going from a privately held company to a publicly held company would require a lot of changes to the hospital more than likely there would be a change in management and a blemish of flexibility. However, going public through an IPO may be the only way the hospital would be able to concern to grow and expand.For any business, going public requires a lot of time and resources to ensure that the process happens smoothly. It is much believed that a company should look for other alternatives such as securing venture capital, forming a limited partnership or examine their current capital before committing to an IPO solution for expansion.Acquiring another healthcare company could be a consideration acquisitions spend when two similar companies combine to form a new company alin concert. The buyer of the other company takes control of the company because it is buying its shares this means that the company the purchases the other company has full control over its assets and assumes all liabilities from the company that is being purchased. Acquiring another company withi n the healthcare industry would kick the Patton-Fuller Hospital to expand within the community. While acquisitions occur when one company buys another company and establishes itself as the owner of both companies, a merger is the result of two companies that agree to move forward together but continue to be owned and operated separately. Merging is often a good thought for a lot of companies because it allows companies to join together for both organizations trump interests to occur. Mergers allow businesses to dominate within their industries but allow them to each be individually owned and operated.There are threats associated with going public through an IPO. One threat is that there is a loss of control. If Wall Street analysts dont like the way the company is being run, your stock price may suffer, which means hard work has gone to waste. The board of directors may not like the job youre doing, so your job is in jeopardy. And, of course, the shareholders may vote contrar y to your opinion, which could importantly affect your life, explains Harry S. Raphael, partner of Raphael and Raphael, LLP, a Boston-based full-service accounting and business consulting firm. The threat of losing control of an organization will run the risk of losing the organization.Also, Public companies have a greater accountability for their actions and must also meet squiffy requirements from the Securities and Exchange Commission (SEC) that cause innumerable distractions to the management team. At the same time, steady growth is expected on a quarter-by-quarter basis. If the expectations are not met, there is a chance of the company not being financed by lenders and therefore causing the company to go bankrupt.Lastly, going IPO presents a different kind of communication channel, both internal and external, which must be created and maintained. Much of this burden falls on the chief financial officeholder (CFO), but investor and public relations firms play significant roles in the operation and daily life of a public company, as well. Such communication theory practices for public companies or those entrenched in the IPO process can be critical (Hell No We Wont IPO, 2010).The thought of buy an ongoing business would appear to be a good idea however, there are possible issues to consider there is an existing reputation, customer base, suppliers, equipment, leases and cash flow. The infrastructure and management team are also in place. These facts will make it troublesome for the business to soar if all mentioned is invalidating instead of positive. There is the possibility of the seller backing out just you get ready to sign the deal due to emotional attachments to the business. Their products may be inadequate and/or defective. The inventory is old and outdated. The business is on a downswing and experiencing a negative cash flow. Overall, it is difficult to bechance one good feature about the business, except the sales price. When this po st occurs, it is easier to start a new venture than purchase an old one (AllBusiness, 2010).Merging with another business, of the same kind, is also an option. However, there are threats to consider. The cooperation of the bearing firm existing management is almost a necessity for a merger. This cooperation may not be easily or cheaply obtained. Moreover, the diseconomies of master if business become too large which leads to higher unit costs. Its also will create clashes of culture between different types of business. therefrom this reduces the effectiveness of the integration. Merger also may be creating a contrast of objective between different businesses, meaning decisions are more difficult to make and causing disruption in running of the business. It also results dissatisfaction among current staffs as positions will be limited and the management have to decide which staffs to hold the position after the transaction has taken place (William, 2008).Patton-Fuller Community H ospital is a privately owned and has many options on how they can expand. Patton-Fuller now knows the strength, weaknesses, opportunities, and threats of the three expansion options. They have to determine what approach would best facilitate the hospital needs.ReferencesAllBusiness. Retrieved October 11, 2010 from http//www.allbusiness.com/specialty-businesses/minority-owned-businesses/459211-1.htmlApollo Group, Inc. (2010). Patton-Fuller Community Hospital. Retrieved on October 09, 2010, from https//ecampus.phoenix.edu/secure/aapd/cist/vop/Healthcare/PFCH/pfchHome.htmBenton, G. L. (2005). The Advantages and Disadvantages of Going Public. .IPO Planner, Guide and Resource Directory for Companies Going Public. Pillsbury Winthrop LLP. Retrieved on October 09, 2010, from http//ipoplanner.webzel.net/forum/00000003.html.Hell No We Wont IPO, 2010. Retrieved October 11, 2010 from http//www.va-interactive.com/inbusiness/editorial/finance/articles/hellno.htmlWilliam, Peter The Advantages and Disadvantages of Mergers, November 15, 2008. RetrievedOctober 11, 2010 fromhttp//www.associatedcontent.com/article/1189676/the_advantages_and_disadvantages_of_pg2.html?cat=3