Variance Analysis Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Deviation in Expected Profit:

The change in the number of visits per month has greatly affected the profit of the organization. A number of factors involve in the less efficient and non-profit outcome of the yearly budget. The alternation in the number of visits of the Physical Check-up and the laboratory tests has shown quiet significant results in the volume as shown in Appendix 2. First reason for the decline state of the budget of the organization is that the number of visits of the chronic condition type has lowered the actual value as there is a decrease of about 4800 visits per month which is big enough to create non-profit conditions and financial issues.This decrease of approximately 4800 visits in a month has affected a great range of income by limiting 57600 visits. Without the need to increase or decrease the number of visit, if it could have been the same as reported by standard then there would have been more profit then the loss. It has limited a big amount of income which can be used to solve other problems.

Secondly, the doctors were paid more wage than standard as standard was $100 and the actual was 10% more. This may not have great impact because of the increased time duration. But the pay with 10% should have been paid to the doctors of Chronic and Laboratory test as only they served more time at work then the other two. The practical values are shown in Appendix 2, 3 and 4 with respect to variance of volume, efficiency and price.

Important measures for Nasus Clinic

Although the Nasus Clinic is working so well, its services are good enough to meet any high rated company’s criteria. But as it is recently running out of profit because of some if its decisions that has led the company’s position down. Profit and loss are a part of any small or large scale business as it needs a lot of care and cautions to be taken over the budgeting and the expenses and the rate of income. To overcome the loss that Nasus Clinic has been experiencing for a few years a number of steps to be followed:

1. Reporting:

Reporting is the first key to run any organization work successfully. A team should be made to create daily report of all the expenses and the profit. It has to be reviewed on monthly basis, in order to maintain the organization potential growth. Review of the reports helps any organization to find out the pros and cons and the ups and downs of any unknown issue. Without the knowledge of the organization’s status, there is no chance of making it better. Likewise, a patient can’t be treated without having known the cause of the disease.

2. Balance in Number of Visits:

The key to success of the Nasus Clinic is the number of visit per month. The decrease in number has led in the decline of the organization. The increase in the number of visits then can make the organization’s growth rate high. All the profitable growth of any organization are completely dependent on the number of costumers and the sale made. Increased number of visits can the significantly increase the rate of profit.

3. Monthly Expense Sheet:

The preparation of monthly expense sheet is compulsory as it is most important to have complete information where the money has been spent, for what purpose and how much. It also helps you to understand that how much will come back to you. The estimation of the money spent is also important for the audit purpose. It provides you with the information of every penny spent, where and why.

4. Payment of the Labour:

It is the justified right of every individual around the world to get sufficient payment for his work. But the payment criteria of different organization is not the same. Every organization follows its own set of rules and regulations. Every individual should be paid right according to its type of work. As the workers who work for 7 hours gets the same payments as compared to the worker that work for 5 hours without any particular difference.

5. Time of work:

The employees working hours in any organization, should not be exceeded without extra payment for their extra work. The organization can’t oblige any employ to work more than the duty hours without extra payment. The work done by the employees excluding their duty timings, should be paid for that as it is their right. If the organization hires an employ to work more than the duty time then he should be paid according to that time, likewise there should be difference in the earning amount of a person working than normal and the normal.

Conclusion:

This study has evaluated the reason behind the decline position of the Nasus Clinic. The organization has a number of problems that have led the organization to face a number of financial issues. Every problem has its own solution, as if the organization team members work on the cost and the expenses and find out the reason of the difference in the expected profit,then it will be quite easy for the organization to have a good position. The finance statements were not better settled with the requirements of the company and without analysing the pros and cons of the decision which resulted in extended loss. If all the things are kept in balance then there would not be any chance of decline in the profit values. Although, proper analysis can make the organization work better with better strategies in order to obtain endless positive outcomes.........

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