Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Get Free Quotes Post Your Requirements

Strategic Financial Analysis

06/08/2020 Client: lyjly0515 Deadline: 7 Days


  1. Instructions

    Read the scenario below. Then draft a 3–4 page business memorandum to Linda Hoff, Stanford's CFO. In your memo, codify your findings and interpretations from the horizontal and vertical analyses and the level of alignment between the company's fiscal management and its strategic direction. Include an Excel spreadsheet as an attachment to the memo. In this memo you will:


    1. Review the year-over-year variances contained in the audited Stanford balance sheets and income statements, which are contained within the provided Week 5 Assignment Spreadsheet [XLSX] for fiscal years 2015 through 2018. You'll be expected to pay particular attention to the negative variances (color coded in "red") that you believe to be potentially the most impactful to Stanford.

    2. Speculate as to the reasons for the negative variances.

    3. Examine the common size balance sheets and income statements looking for abnormally low or high ratios based on what you know about the line item and what you observe in the data for the other fiscal years.

    4. Look for patterns in the line items over time (2015 through 2018) and identify any unusual findings that may need to be examined further.

    5. Make a judgement regarding the alignment of the organization's fiscal management with its strategic direction of the firm. Fiscal management is based on your horizontal and vertical analyses. The strategic direction is based on the vision, mission, and strategic priorities of Stanford.

    6. Purpose

      The purpose of this assignment is to familiarize you with financial statements, the need to align the financials with the strategic direction of the firm, and the process of performing a horizontal and vertical analysis of a company's balance sheets and income statements.

      The Scenario

      You're a Healthcare Administration Fellow at the prestigious Stanford Healthcare. You have been rotating through the various departments over the past 9 months and now you have the honor of working under the mentorship of Linda Hoff, Chief Financial Officer.

      Stanford Medicine includes Stanford Healthcare, Stanford Children's Hospital, and Lucile Packard Children's Hospital Stanford. This organization uses an integrated approach to strategic planning, which incorporates jointly agreed upon strategic priorities from its various entities. It also ensures a high degree of congruency in strategic focus by each entity. Before outlining the strategic priorities for Stanford Medicine, it is important to take note that a firm's directional strategy is comprised on three separate yet interwoven components: vision, mission, and goals (or, in this case, priorities). Armed with this knowledge, you have taken the necessary step and located and familiarized yourself with the vision, mission, and priorities of Stanford Medicine. Below is what you found. When examining a company's financials, it is prudent to keep the directional strategy of the company in mind. After all, in order to advance many strategic priorities, which include fulfilling the mission and positioning the organization to achieve it vision for the future, it will require proper management of the firm's scarce resources. Failure to properly manage the financial performance of the organization can compromise the company's ability to maintain a competitive advantage in the marketplace.

      Our Vision

      Precision Health: Predict. Prevent. Cure. Precisely.

      We will heal humanity through science and compassion by leading the biomedical revolution in Precision Health.

      Our Mission

      Improving Human Health through Discovery and Care.

      Through innovative discovery and the translation of new knowledge, Stanford Medicine improves human health locally and globally. We serve our community by providing outstanding and compassionate care. We inspire and prepare the future leaders of science and medicine.

      Strategic Priorities

      A collaborative endeavor involving the entire community, the Stanford Medicine Integrated Strategic Planning process yielded a framework that is human centered and discovery led, focused on three overarching priorities for our enterprise.

      By enhancing our strengths and achieving our goals in these priority areas, we will amplify our preeminence and remain uniquely positioned to lead the biomedical revolution in Precision Health, ensuring our continued ability to guide health care through significant global changes.

      Value Focused




    • Provide a highly personalized patient experience.

    • Ensure a seamless Stanford Medicine experience.

    • Digitally Driven


    • Amplify the impact of Stanford innovation globally.

    • Deliver human-centered, high-tech, high-touch care and revolutionize biomedical discovery.

    • Lead in population health and data science.

    • Uniquely Stanford


    • Accelerate discovery in and knowledge of human biology.

    • Discovered here, used everywhere: advance fundamental human knowledge, translational medicine, and global health.

    • Ensure preeminence across all of our mission areas.

    • Variance Analyses

      Normally, managers are expected to examine positive and negative variances, and then speculate as to possible explanations for the observed variances. Following this initial assessment, managers would be expected to dig deeper into those variances of greatest concern to the organization in order to uncover the actual causes for the variances, and then implement necessary corrective actions. Digging into all variances would be costly and, quite frankly, a misuse of one's time and energy. The CFO has asked you to conduct a variance analysis of the company's consolidated balance sheets and income statements for fiscal years 2015, 2016, 2017, and 2018, which you began. You have determined the variances for each account (line item) captured in the financials. Now that this first step has been accomplished, the CFO would like for you to pay particular attention to the negative variances contained in the spreadsheet; and focus more specifically on those variances you believe to be potentially the most impactful to Stanford.

      Once you've completed your variance analysis over time, which is referred to as a horizontal analysis, you are ready to create a common size balance sheet and income statement of each of the 4 fiscal years (2015 through 2018). You prepared the common sized financials, which are captured in your spreadsheet. Now, it is time to perform a vertical and horizontal analysis of these common size financials. The common size balance sheet allows you to see each asset relative to total assets, as well as each liability and net asset (in the case of non-profit organizations) relative to total liabilities and net assets. In a common size income statement, each line item is expressed as a percentage of total revenue or sales. Common sizing balance sheets and income statements allows firms to compare against one another even though they may be of different sizes. It also allows a firm to benchmark its financial performance against comparative groups. In this case, there isn't any comparative data to benchmark against; however, you can examine the ratios in each fiscal year and look to see if anything looks abnormally low or high based on what you know about the line item and what you observe in the data for the other fiscal years (vertical analysis). You can also look for patterns in the line items over time (2015 through 2018) and point out any unusual findings that may need to be examined further (horizontal analysis). In finance, it isn't uncommon for the organization to establish interim goals and targets for certain line items in the financials. The firm can compare its actual performance against the established goals and targets.

      Financial Management and Strategic Direction

      Once you've completed your horizontal and vertical analyses of the financial statements, you should be able to get a sense of how well management has managed the financial resources of the company in support of its strategic direction. In business, the strategic direction should be evident in its vision and mission statements and strategic priorities. The strategic priorities should help support the company's mission, and the mission should help advance the firm's vision for the future. Failure to effectively manage the company's financial resources can seriously compromise the firm's ability to fulfill its mission and subsequently the vision.

      Business Memorandum to CFO

      Using the analysis that you performed on Stanford Healthcare and trends that you identified, write a business memorandum to the CFO. In your memo, codify your findings and interpretations, and make a judgment regarding the alignment of the organization's fiscal management with its strategic direction of the firm. Attach your analysis in an Excel spreadsheet as an attachment to the memo. Your analysis and trends identified should take into account any feedback that you received from your professor and/or peers.

      Helpful hints: Negative variance is not always a bad thing. For example, you might see a slight increase in the operating costs; however, if you achieved a positive variance in the total operating revenue that outpaced the increase in operating costs, then that may be perceived as a positive outcome. Remember, you need to spend money to make money. We just want to make certain that operating costs/expenses don't outpace the growth in operating revenues. Also keep in mind that some variances are useful in explaining other variances even if these variances are associated with different financial statements. For example, you may see an increase in operating costs, which is a negative variance, but an increase in current assets, which is a positive variance. Furthermore, you should look for patterns over time. This can reveal both positive and negative trends that may provide insight into the variances you discovered. For example, you may have noticed that a certain expense has continued growth over the past 3 years (negative variance); however, the rate of growth year-over-year has been declining. It could be that Stanford has implemented some cost cutting measures that are showing signs of working.

      The specific learning outcome associated with this assignment is:


    • Audit financial statements and expenditures for alignment with organizational strategic priorities.





Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!
Answer.docx Turnitin Report.pdf Contact Writer For Solution Contact Writer For Solution

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed
Order Now

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed
Order Now

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed
Order Now

6 writers have sent their proposals to do this homework:

Writer Writer Name Offer Chat

Writers are writing their proposals. Just wait here to get the offers for your project...

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Post your homework

Similar Homework Questions

Allocates expenses to revenues in the proper period - Management functions - Cpa australia study guide - What is 0.38 as a fraction - Maxwell king phd scholarship - Lecture Discussion: Scores in Art, 1920-1960s. - Pbs org nova labs - Todd marinovich 30 for 30 netflix - Cost of gear to climb everest - Methoxy group electron donating or withdrawing - Arbonne fizz sticks weight loss - Sonnet 104 by william shakespeare - Food chain with 3 consumers - The kite runner characters - 579 f 2d 1200 - Work breakdown structure of restaurant - The cask of amontillado citation - All writers have more to learn pdf - MET - Jeremy ethier meal plan - Paper Edited - Work breakdown structure cloud migration - Fm 7 22 corrective action - Palliative care - Fast inverse square root xkcd - Oxidation state of pt in pt c2h4 cl3 - Module 05 Project - RCM / Billing Financial Management - Debraj ray development economics solutions chapter 10 - How many pounds of raw material are needed to make one unit of alpha and one unit of beta? - Aqa photography a level grade boundaries - Shahzia sikander pleasure pillars - Po box 1253 sutherland house crawley - Blood glucose levels concept map answers - Raf recruitment and retention pay - Looking at movies 4th edition chapter 1 - Which one of the following students most clearly has a work-avoidance goal? - Galileo proved aristotle wrong - Mirrabrook early learning centre riverview - How to make a mummy case - Ain t nobody peeking but the stars above - Process Recording - Yassarnal quran lesson 3 - Ecok blackboard - Closed form definition poetry - Security architecture - Who will be the best writer for my university assignments? - 737 800 startup checklist - Christian Studies - Compare and contrast utilitarianism deontology and virtue ethics - WK1 Dis - University of sydney endnote - Csu dubbo campus map - Cbc bearings para hills - Notre dame accommodation broome - Oh deer project wild - How is market risk premium calculated - L estrange v graucob - How are cis trans isomers used for night vision - Mn h2o 6 2 high or low spin - Shut up about harvard main idea - Normative theories of ethics ppt - Which of the following statements about plagiarism is false - How to round to the nearest square inch - Describing a scene essay - Scabies soap note - Answer these 5 questions on War is Kind - Velocity vs time equation - The transactional model of communication supports - Properties of water test review worksheet answers - Brisbane city council south regional business centre - 2 thessalonians 1 nlt - Policy and politics in nursing and healthcare pdf - 20a prairievale road south hurstville - Dissertation - Meiosis review worksheet answer key pdf - Alfred nicholas gardens map - 2. Develop a segmentation scheme for bulletproof backpacks and include the most important segment descriptors (demographics, psychographics, behaviors, values, attitudes, etc. for the segments - Steps converted to kms - The man of la mancha duels with - Case study - Abraham and isaac play summary - Principles of microeconomics rittenberg - Workplace health and safety induction template - First experimental laboratory in psychology - Multiple choice questions on management principles and practices - Hozelock tap connector screwfix - Freud museum london jobs - Rabbit island case study answers - Choice - Discussion board - Brian samples missing dublin ga - Battle camp dominion tower zodiacs - Lies my teacher told me chapter 11 - Hobie 16 sail numbers - Castle donington parish council - Sodium acetate molar mass - Aaron wheatley cutting horses - Aeroplane reference field length - Axe street barking development - How far is the closest black hole