Business Report

Business Report John Fawkner Private Hospital

Executive Summary

Purpose of report

The purpose of this report is to provide a review of John Fawkner Private Hospital’s business strategy, to analyse the appropriateness of the strategy in the context of the industry it operates in and whether the organisation uses effective management accounting and performance measurement systems to successfully achieve its strategic goals.

Challenges

A number of risks and challenges were identified in relation to John Fawkner’s ability to successfully achieve its strategic goals. The following risks and challenges have been discussed in the report:       Difficulty maintaining market share with strong industry competition and effect of not competing with social media; Intense competition in attracting specialist surgeons and referring general practitioners; Ability to successfully implement new services; Ensuring managers and staff are engaged with the strategic goals; Ensuring the Management Accounting System tools are used effectively support the organisation; and Ensuring the Performance Measurement and Reward System effectively support the organisations strategic goals and provides direction and motivation for its staff.

Findings

The findings in this report indicate that John Fawkner has a number of areas where it is able to improve its competitive position in the market and also has the opportunity to improve linkages between goals of the business units and the strategic goals. It was found that there was a concentrated focus of managing costs and this resulted in excessively frequent financial reporting. In addition, the performance goals for employees were unrealistic and largely unachievable, with no apparent extrinsic rewards attached to meeting targets.

Recommendations

Based on the findings in this report, the following recommendations have been made:    Reduction of financial reporting frequency to create efficiencies and to allow the Finance...