Free Essay

Seu Sources of Further Information

In: English and Literature

Submitted By AliRana
Words 4588
Pages 19
Budgeting[pic]External Environment to Budgeting[pic]National Health Service
Structural Changes in the National Health Service [pic]Accounting and Budgeting Practice [pic]Financial Framework[pic]Developments in NHS Budgeting[pic]Sources of Further Information
October 2005
External Environment to Budgeting: NHS

This section identifies the external factors and developments which influence budgeting in the national health service, summarising the main developments which have taken place in recent years.

Introduction
The information in this section refers to the NHS in England. There are substantial organisational differences in the NHS in Scotland and Wales
The NHS is the biggest organisation in Europe in terms of the number of people it employs. At the top level of the structure is the Department of Health (DOH) the government department which makes decisions on the future direction of the NHS and secures funding. Further down the structure are Strategic Health Authorities (SHA’s) which oversee services on regional basis. At local level Primary Care Trusts (PCT’s) are responsible for assessing the needs of people in their area, commissioning the appropriate services and monitoring General Practitioners (GP’s). Actual delivery of services are carried out by Primary Care services (GP’s, Dentists, Opticians, pharmacists , NHS walk in centres) and Secondary Care Services ( Acute Hospitals, mental hospitals and ambulance trusts).

The NHS operates on a purchaser/ provider split. On the purchasing side money from the taxpayer goes to the Department of Health which then allocates the money to the local purchasers who are the PCT’s and GP’s. These purchasers then purchase services on behalf of patients from NHS Trust providers and private sector providers.

The NHS is currently undergoing major changes including

* Practice Based Commissioning. This will increasingly make GP’s the lead commissioners of services rather than PCT’s * Patient Choice for elective care(planned procedures). Patients will no longer be automatically sent to their local NHS Trust. They will have the choice to go to other providers. * Payment by Results. Providers are paid on the basis of actual activity based upon a national tariff * Competition for NHS Trust providers from new independent treatment centres for both elective surgery and diagnostics

These reforms effectively introduce a new internal market in the NHS.

There have been many structural and procedural changes to the NHS over the last 60 years. However certain key features remain largely the same: • Service is free at the point of delivery. Nearly all spending is funded from taxation • The need to manage spending within overall resource limits set by the government • The problem of trying to ration finite resources in the face of nearly infinite demand • Public scrutiny of NHS activities

Structural Changes in the National Health Service

The statutory and corporate framework for the National Health Service was established by the NHS Act of 1946.
Since then there have been many structural changes, however this section will only focus upon the most recent ones.
Structural reforms introduced in 1973, 1977 and 1980 did not radically alter the financial and budgetary regime under which the service operated although the latter did specify the duty of regional health authorities, as they were then constituted, to ensure that resources earmarked to regional and district health authorities were not exceeded.

The 1990s heralded a decade of radical structural and financial reforms which materially altered the basis under which NHS budgetary structures and processes operated. The NHS and Community Care Act 1990 was the first major reform which created the internal market by making a distinction between purchasers (e.g. health authorities and general practice fundholders) and providers (e.g. hospital and community trusts). The NHS (Primary Care) Act 1997 introduced the idea of single practice based budgets for G.P’s

The Health Authorities Act 1995 which abolished regional health authorities, district health authorities (DHAs) and family health services authorities (FHSAs) further refined the principles initialised under the 1990 Act.

In some areas, health commissions were established integrating the management of FHSAs and DHAs which were responsible for commissioning health services on behalf of their populations. These reforms were extended in the NHS (Primary Care) Act 1997 which heralded the introduction of single practice based budgets for GPs and established budgets at health authority level to purchase appropriate services from dentists to meet specific local need.

The election of the Labour government in May 1997 heralded a period of further change, with the proposed replacing of the internal market with 'a new system of integrated care based on partnership and measures to improve efficiency'.

The White Paper The New NHS – Modern Dependable proposed the creation of primary care groups (PCGs) which would take responsibility for commissioning all services in the local community. Health authorities were to be slimmed down and would allocate funds to PCGs on an equitable basis.

The Health Act 1999 implemented many of the white paper proposals including the abolition of GP fundholders and the establishment of new primary care trusts (PCTs). The NHS Plan published in July 2000 set out the government’s intentions over medium term and prescribed a new planning system.

Further changes were introduced oOn 1 April 2002 when 302 new primary care trusts (PCTs) were created with the intention of controlling health care locally, with performance and standards monitored by 28 new strategic health authorities (SHAs), . This new structure replaced the NHS Executive, eight regional offices of the Department of Health (DoH), 99 health authorities and 481 PCGs. PCTs would henceforth receive their funding directly from the Department of HealthoH. From July 2006 onwards the number of Strategic Health Authorities was reduced to 10, and the number of PCT’s to 152.

Practice Based Commisioning has been introduced which means that GP’s can take the commissioning and financial responsibility for parts of the PCT Budget

These structural changes have had significant implications for the NHS budgeting regime.

Thus PCT’s and GP’s have taken over responsibility for commissioning health services at local level (note PCT’s also have a provider role in community services).

Providers of Primary Care include :
Primary Care Trusts (PCT’s)
General Practitioners ( PCT,s)
Dentists
Opticians
Pharmacists
Walk in Centres

Secondary and Tertiary Care is provided by
Acute Hospital Trusts
Foundation Hospitals
Ambulance Trusts
Mental Health Care Trusts

Following the re-organisation of the NHS into strategic health authorities (SHAs), primary care trusts (PCTs) and provider trusts, the NHS now consists of more than 600 trusts. These vary significantly in size and for many of the smaller trusts the cost of doing everything in-house has proved to be impractical which is leading to the development of shared financial services.

It is government policy to expand the number of foundation trust hospitals which are part of the NHS but work under a different financial regime to NHS trusts. Trusts will have the freedom and flexibility within the new NHS pay systems to reward staff appropriately, be able to exercise full control over their assets and retain their income from of land sales. Freedoms to access finance for capital investment under a prudential borrowing regime have also been granted. The aim is to enable trusts to shape services to meet local needs and priorities. They are accountable to an independent regulator known as the Monitor, rather than through the normal DoH hierarchies. They are required to operate as self sufficient 'businesses'.

In addition there have been initiatives to involve other organisations in the provision of healthcare. Thus Independent Treatment Centres (ISTC’s) have been established to give the private sector a role in delivering treatment to NHS patients.

Planning Systems and Resource Allocation From the Department of Health To PCT’s
Funds for the NHS are allocated under the Governments system of Comprehensive spending reviews and budgets. In these spending reviews the Department of Health will negotiate with the Treasury over the level of NHS spending in line with Public Service Agreement Objectives

Since 1997 the Government has been committed to raising the level of NHS spending in real terms, and it is currently over 8% of GDP. The Wanless Report (2002) concluded that given changes in population structure and developments in medical care, this may need to rise up to around 12% in 15 -20 years time.
However given the long term funding problems now faced by the government following the “ Credit crunch” , the extent to which increases in NHS spending can continue in the short to medium term is open to debate.

There has been a move towards longer planning time frames within government planning systems, The comprehensive spending review looks forward on a three year basis. This is mirrored at local level where The Department of Health makes three year allocations to PCT’s to help improve the service planning process. PCT’s receive their allocations from the Department of health under a weighted capitation formula

Funding is split between PCT’s on a the basis of population need. This is determined by a “weighted capitation formula” which takes on board such factors as population numbers and age.

Payments to Providers - Payment by results

From 2004 onwards, internal funding systems in the NHS in England have been gradually changed to implement payment by results (PbR).
Prior to PBR, NHS providers were paid under block contracts based upon historic activity and costs . Prices in these contracts were determined by local negotiation. Within certain parameters it did not matter whether the NHS Trusts over /under achieved in volumes of service in the year in question – they still received the agreed level of funding.

The basic feature of PBR is that providers are paid by the NHS on a case by case basis at national tariff rates. The PCT and provider will still agree a certain amount of activity at the start of each year to aid planning, but if actual activity is not in line with planned activity there will have to be corresponding refunds of cash to the PCT (or extra payments by the PCT if agreed levels are exceeded).

The activity calculation is based on information of spells /episodes of care and Health Resource Group Categories.
A spell of care is the patients journey from admission to discharge. This journey may involve time in several departments and the time spent in one department is an episode of care. An HRG is a group is similar clinical treatments. For each HRG a national tariff is defined to take into account the cost of providing the service. These are then used to determine the cost of a spell of care.

The key issues in PBR are in defining the activity measure and determining the tariff
PBR uses the HRG classification of activity as a basis for making the payments.However these were developed with the acute sector in mind, and there are gaps with other services need to be filled.
HFG’s link services that are clinically similar, and so far over 1000 of these have been identified. For instance an example of an HRG is a primary knee replacement.
The national tariff for the HRG is based upon the average reference cost for the HRG . Reference costs are based upon actual costs reported by NHS for doing these operations, but these then need to be adjusted for a number of factors e.g. inflation, efficiency factors.

The original intention was to have all commissioning under PBR by 2008. However progress , especially with non acute services has been much slower than this, and there is still much work to be done .

The implications for budgeting are likely to vary depending upon whether the issue is looked at from the perspective of purchaser or provider.

Purchasers

The main aim of PBR is to increase efficiency in the NHS. The prices for services will be transparent. Purchasers will be able to shop around for those providers who are able to provide the services at the best level of quality.

However purchasers have a finite amount of money , mostly received from the Department of Health. They will therefore have to ration the services they buy. A PCT will normally produce a business plan setting out healthcare priorities for the next three years. It will then need to break down expenditure between Hospital Services, Mental Health Services, Community Services, GP services and other services. It is likely that the pattern of budgeting at this level will be largely incremental.

The amount of money for spending on care under PBR will therefore be capped. Thus it is likely that every year they will agree contracts with providers for a specified number of services at a specified price. If demand from patients exceeds this number of services this will create problems. There will need to be a cap placed upon the number of activities that will be funded and also regular monitoring of the actual performance of providers.

Providers

Providers will now have to draw up budgets for income based upon the estimated number of services they are contracted to supply. It may be that a fixed annual budget is inadequate and that budgets need to be revised over shorter periods to deal with fluctuations in contracted income and activity.

Providers will need to plan their activity in line with their contracts. If they fail to meet their contracted volume of activity then they will lose income and this will lead to financial problems. Hence it may be that more monitoring of performance is required. In particular it is important that the treatments carried out are correctly coded

The Audit Commission (2004) outlined that for the system to work for a Trust , the Trust would need good quality activity data for billing and an accurate knowledge of their costs. This suggests that budgeting at departmental/clinical level will have to become more sophisticated. An understanding of fixed and variable costs in each area is required, so that budgets can be flexed in response to changes in activity.

The move to national tariffs and payments by number of operations is likely to create a situation where those providers who are efficient will gain financially , but those who are not will lose out. This may impose pressure on providers to improve their costing systems , so they are better able to judge which services cover their costs and which do not. Providers may need to break down each national tariff and identify what has gone into the tariff in terms of nursing treatment, consultant time , theatre time etc. The provider organisation will then need to identify its own costs for these procedures.

It may well be that once information on costs are more transparent certain trusts may decided to specialise on those treatments which they can deliver at a surplus and stop carrying out those procedures which are loss making. Eventually managers may find themselves in charge of profit centres , rather than cost centres which is the current NHS norm.

There is a danger that a provider may reduce quality of care in an effort to reduce costs. Also there is a risk that expensive new treatments are not tried because their cost has not been allowed for in the HRG’s

The Impact to Date

Many commentators have argued that although there is potential for greater efficiency, there is a danger of financial instability in the NHS .Because the implementation of PBR has been slower than planned it is difficult to assess whether these fears will be realised . In order to allow organisation to adjust to the new system a number of transitional arrangements have been applied such as allowing providers to move in steps towards the new tariff and gainers supporting losers.

Accounting and Budgeting Practice

Resource accounting and budgeting in the NHS

Resource accounting and budgeting (RAB) was formally introduced into the NHS from April 2001 in line with the changes being introduced for central government. This means that resource limits rather than cash limits ar allocated.

For the NHS this change was not as significant as for central government departments as it had accounted on a full accruals basis (including accounting for capital charges) since 1991.

A detailed explanation of the new system was provided in guidance issued by the DoH in January 2002 (A Guide to Resource Accounting and Budgeting for the NHS).

The key financial imperatives for NHS organisations, however, remained much the same i.e. they were still required to: • achieve financial balance; • comply with their statutory financial duties, i.e. containing expenditure within resource limits and cash limits in the case of health authorities and PCTs with no break-even duty breaches in the case of NHS trusts.
The introduction of RAB put new control mechanisms in place, which had a significant impact on NHS financial planning and budget setting. Statutory annual resource limits (RLs) were introduced for health authorities and PCTs for revenue and capital. Both had a statutory duty to remain within their RL and thus were no longer be able to fund overspending each year by increasing indebtedness or delaying the timing of payments.

A new capital expenditure resource limit (CRL) was also applied to health authorities and PCTs.

The effect of RAB on NHS trusts was less direct than that for health authorities and PCTs. The control of cash continued to be important and the external finance limit (EFL) mechanism remains as a control on cash consumption. Trusts would continue to have a prime statutory duty to breakeven taking one year with another but received the following flexibilities to enable them to achieve this. • Trusts earning revenue surpluses were able to apply them in following years. • Special arrangements were available to neutralise the effects on breakeven positions of certain changes to the value of assets (e.g. impairments). • Trusts were able, in principle, to give up part of their capital resource limit and have the revenue resource limit of their main commissioner increased although in practice this was only permitted in exceptional cases.
The introduction of RAB therefore had major implications for financial and service management. RAB increases the importance of accurate budgeting and forecasting of non cash items, capital charges and accounting adjustments.

Programme budgeting

In 2002 the DoH initiated the national programme budget project. The aim of the project is to develop understanding on where money is being spent on a specific health objectives or medical conditions.

Since From 20043/054 onwards each primary care trust and strategic health authority has been required to will report within their annual accounts the totality of their expenditure on a programme basis. This historic information may lead to better inform decisions on new investment and on redeployment of existing resources at PCT and Department of Health level..

For further information see Programme Budgeting in TIS Health.

Capital Financing

From 2007-2008 onwards NHS trusts can finance capital investment from cash flow and borrowing. The amount of borrowing is subject to a Prudential Borrowing limit ( PBL). The is the cumulative total amount that the trust may have. . Capital Investment plans need to be approved by the Strategic Health Authority. This regime applies to Trusts only.

Financial Framework

Statutory Duties The Affect The Budget

Section 10(1) of the NHS and Community Care Act 1990 requires Trusts to break even. In practice this is normally interpreted as breaking even over a three year period. The requirement to break even also apples to PCT’s and SHA’s
For these organisations the medium term budget and capital programme will need to demonstrate that this objective can be achieve

However the break even requirement does not apply to NHS Foundation Trusts where the main requirement is to remain solvent.

NHS plan's impact on budgeting – service and financial frameworks

The NHS planning process prescribed in the 2000 NHS plan required the completion of service and financial frameworks (SaFFs). SaFFs were intended to capture the agreed action, investment and activity to be delivered by the local health community and at what cost. This information was then incorporated into local action plans that provide more detail on how the SaFF were to be delivered.

Service and financial frameworks: • set out the planned local NHS activity and resources to support both the modernisation programme and the contribution to the key national and local targets and priorities, and; • demonstrate progress towards delivering the other infrastructure and workforce investment set out in the NHS plan.
In agreeing the SaFFs, regional NHS offices were required to ensure that each subsidiary organisation was planning to make the necessary progress to the targets set out in the NHS plan. They also needed to ensure that collectively the NHS along with the social care community was delivering on that region's share of national targets and ensuring that its share of the national hypothecated investment was incurred.

NHS organisations were also required to develop local action plans which outlined how the system would operate in each area to deliver the agreed milestones and targets and investment set out in the SaFF. These formed the basis of the performance agreement between regional offices and their NHS trusts and health authorities.

Allocation of resources to NHS bodies

In common with the rest of the public sector the level of funding which the NHS bodies in different areas receive is unavoidably a political decision. A number of formulae have been used since 1948 on which to base the allocation of funds between geographical areas or health authorities.

The present system is a modified version of a formula developed by York University, i.e. the HCHS revenue resource allocation weighted capitation formula. The main factors which influence the distribution of funds within this formula are: • capitation (i.e. crude population numbers adjusted for cross boundary flows where patients are registered with GPs in a different PCT from their place of residence); • age profile (i.e. additional weightings for the elderly and children); • morbidity (e.g. higher weighting to reflect differential life expectancy rates); • a market forces factor (to reflect the higher pay and property related costs associated with operating in areas such as London and the south east).
The NHS plan, published in 2000, included a commitment to a single resource allocation formula covering all NHS expenditure including general medical services non-cash limited (GMSNCL). Unified allocations for 2002/03 took account of the distribution of GMSNCL expenditure.

In 2003/04 the allocation formula was radically reformed with the most significant development being the introduction of three year rather than annual allocations.

The new needs element of the formula uses alternative measures of deprivation and also takes some account of 'unmet need', where certain groups within the general population (for example ethnic minorities and socio-economically deprived groups) are not receiving healthcare services to the same level to that of others with similar health characteristics. The new formula also benefits higher cost areas by extending the staff market forces factor.

This approach shares much in common with the reform of the local government finance distribution system which is discussed later in this section.

Developments in NHS Budgeting

In April 2002 the Department of Health (DoH) published 'Delivering the NHS Plan - next steps on investment; next steps on reform' which proposed a number of radical changes to the NHS budgetary framework and introduced a new streamlined three year planning framework.

From 2003/04 the DoH has issued funding allocations covering a three-year period which will aid medium term financial planning. This will, in theory, allow organisations to look in-depth at their services, plan change with confidence and implement improvements year on year.

The 1999 and 2006 Health Acts re encourage partnerships between public sector and private sector partners, especially between the NHS and Local Authoritiesforms also a represent a crucial development for closer collaboration between health and social services. In particular, the new budgetary framework requires health and social services to establish a joint lead in mental health and older people services to ensure new standards are met.

The Department of Health has stated that both NHS and local authority social services departments must address a six-stage process in allocating money to improve services: 1. identifying the national and local priorities and the key targets for delivery over the next three years; 2. agreeing the capacity needed to deliver them; 3. determining the specific responsibilities of each health and social care organisation; 4. creating robust plans that show systematically how improvements will be made and which are based on the involvement of staff and the public; 5. establishing sound local arrangements for monitoring progress and NHS performance management, which link into national arrangements; 6. improving communications and accountability to the public locally so as to demonstrate progress and the value added year on year.
Following the re-organisation of the NHS into strategic health authorities (SHAs), primary care trusts (PCTs) and provider trusts, the NHS now consists of more than 600 authorities and trusts. These vary significantly in size and for many of the smaller trusts the cost of doing everything in-house has proved to be impractical which is leading to the development of shared financial services.

It is government policy to expand the number of foundation trust hospitals which are part of the NHS but work under a different financial regime to NHS trusts. The government has stated that by 2008 all NHS trusts should have reached a standard which would enable them to apply for NHS foundation trust status.

Trusts will have the freedom and flexibility within the new NHS pay systems to reward staff appropriately, be able to exercise full control over their assets and retain their income from of land sales.

Freedoms to access finance for capital investment under a prudential borrowing regime have also been granted. The aim is to enable trusts to shape services to meet local needs and priorities. They are accountable to an independent regulator known as the Monitor, rather than through the normal DoH hierarchies. They are required to operate as self sufficient 'businesses'.

Private sector provision

Recent years have seen the development of the treatment centre model where the general hospital is bypassed by a treatment centre offering a fast–access production line approach to routine surgery. While these can be in NHS ownership there have also been examples of this type of work being contracted-out to the private sector.

In January 2004 the Health Secretary stated an aim of 15% of surgery going to the private sector.

Payment by results

From 2004 onwards, internal funding systems in the NHS will be gradually changed to implement payment by results (PbR). This will replace annual negotiations between primary care trusts and hospital trusts with a fee for treatment based upon a national tariff.

While the impact of this has not yet been fully realised it is likely that it will mean that budgets will have to be flexible, adjusting to changes in volumes of activity in different Healthcare Review Groups (HRGs). Budgeting for the trust as a whole may become a more volatile process. It may also lead to trusts building up their budgets from their tariff income in each speciality, rather than using the incremental approach.

For further information see Payment by Results in TIS Health.

Future developments

It appears that the NHS is moving towards a mixed economy of provision with the introduction of market forces. While this market system will still operate within a tax funded, cash limited total budget, there is likely to be volatility in income streams at hospital trust level which will impact upon budgeting at this level.

Sources of Further Information • A Guide to Resource Accounting and Budgeting in the NHS(Short Version) • Shared Financial Services • TIS Health • TIS Health: Payment by Results • TIS Health: Programme Budgeting • Introductory Guide to NHS Finance in the UK, HFMA , 2008 Edition…...

Similar Documents

Free Essay

Is Wikipedia a Valid Information Source?

...During the course of exchanging information with my learning team on whether Wikipedia is a credible source of information, my team mates have expressed doubts and concerns about the validity of using Wikipedia as an information source for writing papers. The ability of anyone to edit the information posted on Wikipedia and the question of whether the sources cited in these articles are truly valid are two main sticking points. Wikipedia itself has acknowledged “Allowing anyone to edit Wikipedia means that it is more easily vandalized or susceptible to unchecked information.” (Wikipedia, 2008) While my team mates acknowledge that Wikipedia has interesting information in general, they view it as more of a current events site. They do not believe that information that can be randomly added to or edited by just any person is a verifiable source. They are against using the information obtained from Wikipedia as a valid reference source. My position is that I believe Wikipedia is a credible source of information when used as part of a research mechanism for the following reasons: 1. Research on the reliability of Wikipedia has consistently shown that the online encyclopedia’s accuracy is similar to traditional Encyclopedia Britannica. (Messner and South, 2011) In a comparison between traditional German encyclopedia Brockhaus and German-language Wikipedia, it was shown that Wikipedia rated higher overall in accuracy, completeness and currency. (Guentheroth and Schoenert,......

Words: 580 - Pages: 3

Free Essay

Sources of Information

...conclude that majority of the respondents use internet in accomplishing their academic requirements while there are others believe that books are still advisable and some are indulge in using mass media followed by news media. The researchers conclude that the students especially, PUP-BSOA students considered reliability of information first followed by availability of information, then up-to-date information, lastly convenient/comfort. The researchers conclude that the respondents claimed that they encountered frustration and delays especially in the course of accuracy followed by slow internet connection, then the time limits, the relevance and reliability of every information’s given, the restrictions they provide, the additional charges and plagiarism & copyright they consider, lastly the other which is ______. The researchers conclude that the first year BSOA students often consult in Internet in gathering information. Some are still aware in using books followed by news media which is rarely visited sources and the mass media which is often visited sources. The researchers conclude that the most respondents strongly agree that information from books is credible and reliable. Some students agree for internet, fairly agree for news media and the remaining students disagreed for mass media. The researchers conclude that the majority of the population of BSOA first year students rated books as the most important as a service in the community. Some......

Words: 307 - Pages: 2

Premium Essay

M1 - Anaylse Different Types of Business Information and Their Sources

...analysing the different types of business information used at Apple inc. and where each information source comes from in their organisation. Verbal information Apple use verbal information. Verbal information is a way of communicating by saying or expressing your thoughts in to words for example by having a conversation with someone this is where verbal information is shown this is because they are speaking. An organisation has to use information verbally as they are selling products which means you have to be persuasive by using words through speech. They also use verbal information to communicate internally between staff and partners. This may be done face to face or even through the phone. Apple use verbal information to talk and communicate with customers in stores or even over the telephone. Verbal information is very essential in an organisation like Apple The main advantages or verbal information are: • Its quick and efficient • Quicker to give someone an understanding of something as you can explain in more detail • Easier to get point across • Quicker to get a reply There are many advantages but there are also disadvantages: • People easily forget as if someone was to tell them allot of information verbally they wouldn’t remember everything they have said • Lack of understanding, this may be from the persons speech or the way that they are talking The advantages of verbal information The advantage of verbal information is that it’s the fastest way......

Words: 2775 - Pages: 12

Premium Essay

Apple, Inc. Use of Information Sources

...| Apple Inc. Use of Information Sources | | | Adam Pasetchnik-MBA6012-u02a1-1/19/2014 | | | Apple Inc. current theories, models and practices of marketing * Current Marketing Theories: Apple Inc. current marketing theories are still based on Steve Job’s marketing strategy is to “Sell on Value, Not Price”. The marketing strategy can be summed up with three points, “Empathy”, “Focus” and “Impute”. Apple has the great ability to connect (empathy) to the core of the customer with their emotional wants and desires and creates something that you cannot live without (Nosal. 2013). You just cannot imagine today not having your iPad, iPod, or your iPhone that so many of us use today. The second is “Focus” in doing the best job you can eliminate all the unimportant opportunities (Moorman, 2012). Apple is more focused on the customer’s needs more than any other company in the marketplace. The last point is “Impute” to have the best product, the highest quality and the most powerful software, they impute the desired qualities into their products. * Current Marketing Models: Apple has a great marketing mix which has the combination of four elements called the 4P’s (Price, Products, Place and Promotion). This gives the company a good combination to add, subtract or modify in any way to generate the desired marketing strategy (Armstrong & Kotler. (2005). * Current Practices of Creating Market Value: One of the most important......

Words: 1173 - Pages: 5

Premium Essay

Use of Information Sources

...Abstract 3M utilizes a variety of marketing information sources. They produce thousands of products that are offered in several different market segments. “3M is not a conglomerate like GE or United Technologies, which own a variety of industrial businesses that operate, for the most part, on their own.” (Gunther, 2010). This diversification makes it difficult to stick to specific marketing information resources. “Instead, 3M — a supplier to all of those companies– is a set of businesses organized around a big, busy and intellectually productive R&D lab which researches new technologies and processes and then develops them into products” (Gunther, 2010). 3M must utilize many different strategies that are specific to each division. They do however, have one strategy that has proven to be useful in all market segments. 3M refers to the strategy differently in each segment and gathers the data in different methods, but essentially is using the same method to accumulate information. In the recent past 3M has struggled with being an “open” research and development company. While they have been able to become a leader in innovation and technological advances, they have failed to make gains in service and business model innovations. This was from a lack of external research efforts. The research and development was done in reverse. The department would research a segment of an industry to find an area that could use improvement and then try to align their new product......

Words: 1566 - Pages: 7

Premium Essay

P4 - Information of Sources of Finance

...SOURCES OF FINANCE Matching the appropriate source of finance to a situation This is a paired exercise. The aim is to match the situation to the most appropriate source of finance. CASE STUDIES NEW MINIMARKET Roy Bhuvnesh has been made redundant after 20 years with a major organisation and has received a lump sum redundancy payment of £70,000. He is planning to set up a new minimarket and has identified suitable premises valued at £180,000 in Green Lane. BUYING A NEW FREEZER CABINET A small newsagent in Green Lane has decided to purchase a new freezer cabinet and oven/roasting unit to provide hot meals for local workers and for pupils at Northwood School which serves the surrounding area. The cost of the units is £8,500. MOBILE CAR VALET SERVICE You have just passed your driving test and along with a friend are setting a business to offer a mobile car valet service. This would involve them travelling to people’s homes and washing and internally cleaning customer cars. They are hoping to attract private customers and local garages who sell second hand cars. RE-LOCATING TO SWANSEA Sentinel Industries plc are planning on moving a major part of its production facility to Swansea. It has identified a site near a former chalk pit that is now not used. The estimated cost of the facility is £10 million. BUYING NEW EQUIPMENT Lucas Engineering Ltd with an annual turnover of £3.5 million has decided to install new machinery to help improve its......

Words: 872 - Pages: 4

Premium Essay

P1 Explain Different Types of Business Information, Their Sources and Purposes

...could be a firm that you work for, a shop that you visit regularly or even a family business. Your interview should find out the following: • The types of information they use with examples • The sources from which they get information • The purposes to which they put the information Different Types of information There is a different and wide variety of ways information can be used and sourced, and with an effective business person, they will research the information from a range of different sources before making that decision on which one their business should use. The types of information are: Verbal, written, onscreen, multi-media, and web based. Verbal information This type of information is based on a face-to face verbal communication and is considered the best way to communicate both internal and external. This means there is less scope for misunderstanding and it allows both verbal and non-verbal messages to go through. This is with the constraints of time and budgets in business, and it is not always possible or practical to meet the person, this is such as using telephone conversations, face time, that are also useful ways to communicate verbally, but it is still as important always to use a combination of methods. These ranges of verbal communications are huge as many businesses use this method for information, as speech enables complex ideas to be expressed and discussed. This means that although the absence of speech wouldn’t prevent us from......

Words: 1518 - Pages: 7

Free Essay

Discuss the Primary, Secondary and Source of Information

...Primary, Secondary, and Tertiary source of information Sources of information are often considered primary, secondary, or tertiary depending on their originality and proximity of when it was created. Consider if it is an original work, or whether it evaluates or comments on the works of others. Also consider the proximity, or how close the information is to a first-hand account or if it is after the fact. Sources of information are often considered primary, secondary, or tertiary depending on their originality and proximity of when it was created. Consider if it is an original work, or whether it evaluates or comments on the works of others. Also consider the proximity, or how close the information is to a first-hand account or if it is after the fact. PRIMARY SOURCES DEFINED Primary sources are first-hand accounts or individual representations and creative works. It can also be said to be information that has been stated but not interpreted. They are created by those who have directly witnessed what they are describing, and bring us as close to the original event or thought as possible without being filtered, influenced or analyzed through interpretation. They tend to be original documents that don't usually describe or analyze work by others. Primary information is in its raw state Primary sources may be published or unpublished works. Primary source means it is original article or book created by individual or sometimes a group of people. It may be surprising...

Words: 380 - Pages: 2

Free Essay

P1 Explain the Different Types of Business Information, Their Sources and Purpose.

...Cornelius Ademule Task1: Explain the different types of business information, their sources and purpose. TESCO Introduction Business information is important to an organisation because it helps the business to grown and develops including the external information that is brought into the company to help their aims and purposes. Business information could be gathered through external and internal information Tesco PLC is a British multinational grocery and general merchandise retailer. As a big business it has its stakeholders. The communication is one of the most important things in the relationships between stakeholders. Communication needs to be effective in business. It is the essence of the business management. There are many categories of communication eg. oral, video, written, graphical, and multimedia used in a business information; sources would include department who provide the information, and the purpose of information. Category  | Type of business information | Source(s) of information | Purpose of information | WrittenThis type of information could include emails, text, letter, memo, financial documents, etc.E.g. Notification for the next meeting, could be delivered through email. | The email could include information and details (date, time and topics) for the next meeting in Finance Department, about the prices and discounts. | Manager of Finance Departments could give this information to the employees. | The purpose is to notify the......

Words: 790 - Pages: 4

Premium Essay

M1- Analyse Different Types of Business Information and Their Sources

...M1: Analyse different types of business information and their sources To: Directors of New Look From: Caitlin Woods Subject: Analysis of different types of information and sources in New Look The aim of this report to focus on how effective communication of New Look, through analysing the different types of business information and their sources. The sort of information I will be analysing will the verbal & written information and the internal & external information and I will including the benefits of all of these types of information. I will also be explaining why New Look as a company use these types of business information. New Look are very big company that was founded in Taunton 1969 who have now become a worldwide business with stores all over many different countries. They use many different types of information in order to provide great customer service, meet customer needs and satisfaction. However, not everything is about meeting the customer’s needs. Verbal & Written information is one of the major part of business information that New Look use in order to meet their goals and provide the best possible customer they can give. Verbal information which is verbally communicating through speak. It includes using your phones, voicemail, presentation, videos, meetings, interviews, radio, video call and face-to-face. Verbal information is very important for New Look as they don’t just use face-to-face with customers; they also use it with employees on...

Words: 1188 - Pages: 5

Premium Essay

Explain Different Types of Information, Their Sources and Purposes.

...Task 1 : Explain different types of information, their sources and purposes. Misco used various types of information in their website like written, on-screen, multimedia and web based information to communicate with their stakeholders. Misco use web based information to spread information and it gives them the benefit to communicate anywhere around the world. As one can see Misoc’s website it divided in various sections all targeting different areas and giving information in a very user friendly , targeting anyone who is intrested to view their website. One can find a section for their stakeholders, about their marketing and research within the company, offering a subscription section for anyone who would like more information to inform himself more. Misco update its website continuously offering latest news and upcoming courses in the future. This is generally controlled by the IT department help bay the Marketing Department to write the text and help in the image of the company through the website. Their website cater interested persons who would like to take a course with Misco , or organisation who wants to upgrade their organisation and give training to their employees or want to benefit from the services in Human Resources or Market Research. Written information is used a lot especially in different ways n businesses to get their message through and give information to their stakeholders. It is an everyday use in various ways , in emails to their staff......

Words: 529 - Pages: 3

Premium Essay

Information Sources for Criminal Justice

...Reliable Sources of Criminal Justice Information In 1968 the National Institute of Law Enforcement and Criminal Justice was established. In 1978, it was renamed National Institute of Justice. Headed by a political appointee of the President, its primary mission is to deliver tools and knowledge to the state and local level offices. These independent, evidence-based tools help law enforcement officers overcome everyday challenges of crime and justice by minimizing risks and improving daily operations. The Justice Research and Statistics Association is an organization which works together with the Statistical Analysis Center directors, researchers and practitioners from all branches of the government. Their use of data analysis and applied research enables them to create undisputable criminal justice policies. Its website is virtually an unlimited gateway to criminal justice resources. Comprised of law enforcement executives from city, county, and state agencies, The Police Executive Research Forum strives to improve professionalism and policing in public policy debate through involvement and research. SEARCH, the National Consortium for Justice Information and Statistics was created for the states, by the states. Its purpose is to assist in the development and effective operation of information sharing capabilities between local, state, and federal agencies. The Justice Research Association based in Hilton Head, South Carolina serves as a policy institute...

Words: 425 - Pages: 2

Premium Essay

Coca-Cola Use of Information Sources

...Coca-Cola Use of Information Sources Coca-Cola is a company that is known worldwide for its product. It is a drink that spans all ages, colors, races, and countries. The Coca-Cola Company is the world’s leading manufacturer, marketer, and distributor of nonalcoholic beverage concentrates and syrups. The world’s headquarters are located in Atlanta, Georgia, with many other locations around the country. The Company and its subsidiaries employ nearly 31,000 people around the world. Syrups, concentrates and beverage bases for Coca-Cola, the company’s flagship brand, and over 230 other Company soft-drink brands are manufactured and sold by the Coca-Cola Company and its subsidiaries in nearly 200 countries around the world (Coca-Cola Company, 2012). Internationally, Coca-Cola has adopted a global strategy that includes sponsoring professional sports leagues, music artists or groups and the Olympics. For example, the company advertises with the NBA, World Cup Tournaments, the NCAA and popular music groups such as Maroon 5 (Coca-Cola Company, 2012). Coca-Cola pays several million dollars in order to have the exclusive rights to advertise or partner with these events. Although it is an expensive way to advertise, the benefits extend far past the cost of advertising. Millions of viewers worldwide tune into or watch these events and the brand exposure is enormous. Viewers are exposed to the brand and the Coca-Cola brand becomes synonymous with that popular athlete, league or artist...

Words: 1127 - Pages: 5

Free Essay

Wikipidia Not a Source of Credible Information

...Is Wikipedia a credible source of information? From learning experience I was involved in a project where I had to research parent and subsidiary information for corporate entities and document my findings. After the research results were documented I had to create records for every subsidiary entity that rolled up to the ultimate parent company. A research list was provided for the research efforts and list noted was that the Wikipedia website was only to be utilized as a reference point as the data was not credible. Wikipedia was a source to obtain preliminary data and as a cross reference tool as some of the information was either contradictory or not available. Some of the required information required entity's complete name, headquarter address, corporate structure/shareholder information and subsidiaries. A good portion of the data was found through the Edgar website which is a site were "All companies, foreign and domestic, are required to file registration statements, periodic reports, and other forms electronically through EDGAR. Anyone can access and download this information for free. Here you'll find links to a complete list of filings available through EDGAR and instructions for searching the EDGAR database." http://www.sec.gov/edgar.shtml Another website referenced was the entity's website which mirrored the information found on the Edgar or any other regulatory website. Wikipedia was not included as a source in our documentation reports as it was only used......

Words: 973 - Pages: 4

Free Essay

Wikipedia Is a Credible and Valid Source of Information

...emerged as one of the largest repository for information besides the encyclopedia Britannica, but does the high number of contributors and volume of information guarantee the credibility of the authors and validity of the information in the Wikipedia encyclopedia? This is one challenge that the owners of Wikipedia will have to contend with for a long era. Credibility strengthens a research work (Spatt, 2011, p. 347) and greatly depends on the author’s qualification (Spatt, 2011, p. 348), regrettably, Wikipedia is written largely by amateurs because they have more free time on their hands and are make rapid changes in response to current [ (Wikipedia:About, 2012) ] events rather than people with relevant educational background and professional experience. The fact that anonymous contributions are allowed on Wikipedia is another source of concern around its credibility and when those with expert credentials make contributions they are given no additional weight which could have assisted the users to judge the credibility or otherwise of the contributions. In addition to this is the absence of an editorial board that could have helped to review and edit the contents before they become available for public use as is the case with other printed encyclopedia. Another factor that affects the credibility and validity of Wikipedia is that not all articles are of encyclopedic quality from the start: they may contain false or debatable information. Indeed, many articles start their......

Words: 653 - Pages: 3