Hey Tutor Toto:
The below assignment is one assignment, but answers will be separate.
Your job to comment in 250 words, with atleast two peer reviews, not the
ones specified by the sutents, but your own.
There are two students below who have posted on the discussion board
their own techniques regarding last week’stopic. The one you worked
on. All i need you to do is to write 250words each to make additional
comments to what they presented. In one paper your comments will
have to mention the specific student you are addressing and you should
make comments in addition to what they wrote. in some cases, you may
critique them in sperate comments.
Take for example, take student one, and write 250words, 2 peer reviews,
and take student 2 and do the same. the two separate comment must
each have 250words with additional 2 peer reviews.
the 250words should not include the references. it should actually be
the body of each comment for each student. In total, you will be
contributing 500words, excluding references. Please see below the
discussions from the two students:
From Student: Tajuana O.
Our text describes capitol budgeting as a process of identifying, evaluating,
selecting and controlling an organization (Blocher, 2016). Again, we are
discussing techniques that coincide into a relationship with strategic
allocations of financial resources. One source describes strategic allocations
as being the study of a process by which resources are allocated in a
business, research on corporate capital allocation to divisions in a
multibusiness firm and work that examines factors affecting specific types of
resource allocation (Marita & Lee, 2017). The two techniques that I chose to
discuss further with this particular relationship are Long-Range Plan in
Correlation to Capital Budget and Short-Term Objective Goals in Correlation
to Capital Budget.
Long-Range Plan
Our text describes a long-range plan as a plan that identifies actions required
during the five to seven-year period covered by the plan to attain the
organizations strategic goal (Blocher, 2016). This coincides with capital
budgeting with the plan to finance major projects such as purchasing new
equipment, construction of a new site/factory, and an addition of a new
product (Blocher, 2016). Our text also states that capital budgeting prepares
to bring an organizations’ capabilities into line with the needs of its long-range
plan and long-term sales forecast (Blocher, 2016). With this technique, it’s
clear to show how long-range plan and capital budgeting connect. You need
to establish the capital budgeting for the company and map out the long-range
plan. One source describes how the Long-Range Plan technique involves four
key elements which are: strategic and comprehensive planning, needs
assessment, long-term fiscal planning, and a capital improvement plan
(Srithogrung, Yusuf, & Kriz, 2019). The source provides a chart which shows
the correlation from the long-range plan moving into the idea of capital
budgeting. As stated before, Capital budgeting helps to prepare the company
for the long-range plan as well as the long-range plan prepping the company
with the capital budgeting decision. Both concepts work hand in hand.
Short-Term Objective
The next technique I will discuss is the short-term objective in correlation with
capital budgeting. Our text descries a short-term objective as goals for the
coming period which can be a month, a quarter, a year or any length of time
as established by the organization for their planning process (Blocher, 2016).
Our text also describes how this technique is the basis for master budgeting
which is the aggregation of all subunit budgets into an integrated plan of
action for the budget period (Blocher, 2016). Our text also showcases a
flowchart that shows how long-range plan flows into capital budgeting and
short-term objectives. Capital budgeting flows into short-term objectives which
then proceeds to go forward into master budgeting, controls and operations
(Blocher, 2016). We know as stated before how capital budgeting controls
decision controls the finances of a company. Short-term objectives coincide
with capital budgeting by planning short-term goals for the company that go in
correlation with the capital budgeting plan. Whether that may be making sure
the company makes a certain amount in revenue for this month or making
sure they stay on budget this quarter. This technique relates greatly to the
concept of capital budgeting.
Conclusion
Both of the above techniques, long-term range plan and short-term objectives
are both two techniques that flow right along with capital budgeting decisions.
You can’t really function in one technique successfully without the idea of the
other. Knowing your capital budgeting decisions for a company lets you know
how to financially plan. When an organization has their short-term and long-
term plans in place in reference to their finances, they will surely be on the
proper road to success.
Bibliography
Blocher, E. J., Stout, D. E., Jaras, P. E., & Cokins, G. (2016).Cost
Management(7thed.) New York, NY. McGraw and Hill.
Marita, C. A., Lee, G. K. (2017).Resource Allocation and Strategy. Vol. 43,
No. 8. The Author (s). retrieved from sagepub.com/journalspermission.nav
Srithogrung, A., Yusum, J. E., & Kric, K. (2019). A Systematic Public Capital
Management and Budgeting Process. In Srithogrung, A., Yusum, J. E., & Kric,
K. (2019).Capital Management and Budgeting in the Public Sector. (pp. 1-22).
Hershey, PA: IGI retrieved from digitalcommo[email protected]
From Student: Jon C.
Monte Carlo Simulations
One way that an organization’s management deals with uncertainty in capital
budgeting is through the use of various sensitivity analysis tools. Monte Carlo
Simulation (MCS) is the most adaptable and most flexible of these tools. MCS
is a variant of scenario analysis, except that it also includes each plausible
scenario’s probability of occurrence when calculating its expected financial
outcomes (Blocher, Stout, Juras, & Smith, 2019). MCS is “a computerized
mathematical technique that provides a range of possible outcomes and their
probabilities of occurrence” (Crum & Rayhorn, 2019, p. 29). This process was
developed in the 1940s for use on the nuclear weapons development program
known as the Manhattan Project and named after Monaco’s Monte Carlo
Casino. Although MCS is frequently used in financial analysis and other
business decision-making problems, its use is not limited to those areas.
Situations in which some or all of the inputs can be best described by
probability distributions are well-suited to MCS (Crum & Rayhorn, 2019).
Typically, one MCS will include thousands or tens of thousands of iterations
and will allow management to view a wide range of plausible scenarios and
the predicted likelihood of each scenario’s occurrence. This aids management
in capital budgeting by showing a comprehensive prediction of the outcomes
of different capital expenditure scenarios. MCS is especially beneficial in risk
analysis, as risk variables can be difficult to express in an absolute or linear
fashion, but can often be expressed more accurately in a probability
distribution (Kaczmarzyk, 2019).
Make-or-Buy and Lease-or-Buy Analysis
Organizations are often faced with the option of producing their own material
components or purchasing them from a supplier. This is known as a make-or-
buy decision. Similarly, a lease-or-buy decision involves an organization
analyzing the decision to either lease required equipment or purchase it
outright. Lease-or-buy decisions almost always involve capital expenditures
for equipment necessary for production. Make-or-buy and lease-or-buy
decisions are organizational sourcing problems and require similar financial
analysis regardless of the resource involved (Blocher, Stout, Juras, & Smith,
2019). These decisions are components of the capital budgeting process.
Make-or-buy decisions typically involve manufacturing components and so the
decision to buy components or services instead of producing them can make
for significant reductions in capital expenditures, though resulting in increased
variable costs for the product (Woo-Yong, 2018). The decision to outsource
services is also a make-or-buy decision. Many organizations utilize buy
strategies (outsourcing) to manage various aspects of their supply chain,
especially logistics (shipping and delivery) services. Organizations will tend to
leverage delivery services unless they have special delivery needs or find it
economically viable to handle their logistics in-house (Blocher, Stout, Juras, &
Smith, 2019).
References
Blocher, E. J., Stout, D. E., Juras, P. E., & Smith, S. D. (2019). Cost
Management: A Strategic Emphasis (8th ed.). New York: McGraw-Hill
Education.
Crum, M., & Rayhorn, C. (2019). Using Monte Carlo simulation for pro forma
financial statements. Journal of Accounting and Finance, 19(5), 29-40.
doi:10.33423/jaf.v19i5.2248
Kaczmarzyk, J. (2019). Several sets of assumptions for the Monte Carlo
simulation for a more precise analysis of enterprise risk. Econometrics, 23(4),
80-95. doi:10.15611/eada.2019.4.06
Woo-Yong, P. (2018). Managing hazards of the make-buy decision in the face
of radical technological change. Industrial Management & Data Systems,
118(7), 1345-1364. doi:10.1108/IMDS-12-2016-0542
Running head: PEER REVIEWS 1
Peer Reviews
Student’s Name
Institutional Affiliation
Date
PEER REVIEWS 2
Peer Reviews
Student One:
Good post Tajuana O! Capital budgeting is instrumental in the strategic allocation of
resources in an organization. Financial planning is crucial for the success of any organizational
operation and capital budgeting is a suitable approach in the estimation of associated costs
(Bierman Jr. & Smidt, 2012). Long-range plans and short-term objectives are instrumental in
determining the necessary actions that will enable an organization to achieve its goals over a
specified period (Srithongrung, 2018). Notably, capital budgeting ensures the consistency of
financial plans that guarantee the effective and efficient use of allocated resources to complete a
project.
Organizations have capabilities that ought to be demonstrated in their capacity to
maintain operations within a longer period in the case of a long-range plan. Capital budgeting
fosters accuracy and reliability in forecasting both the sales and revenues of an organization
(Bierman Jr., 2012). Indeed, the components of a long-range plan necessitate proper planning
and strategy. Organizations have diverse needs that must be evaluated to ascertain the extent to
which the allocated resources address those needs. However, a change in an organization’s
operations or an adjustment on the already allocated resources interferes with long-range plans.
Organizations ought to align capital budgeting strategies with the allocation of resources in the
long term.
Short-term objectives are instrumental in making decisions and creating a plan for the
organization over a short period. Srithongrung (2018) notes that while budgets may be created
depending on organizational units, an integrated plan is vital to assess the ability to achieve the
PEER REVIEWS 3
overall goals. What is more, long-range plans and short-term objectives work collaboratively to
ensure the success of capital budgeting. Organizations can make viable decisions and ensure
continuity of operations using these techniques of capital budgeting.
Student Two:
Great Post Jon C.! Monte Carlo Simulation (MCS) offers useful insights about how
organizations can deal with the uncertainty that relates to capital budgeting. MCS is useful in
modeling the probability associated with different results when the prediction of a process is
unreliable as a result of the random variables (Horngren et al., 2010). As such, organizations can
adopt it as a means to understand the effect of uncertainty and risk in the forecasting and
prediction of models
Notably, MCS is helpful in handling or solving multiple problems in nearly every field
such as engineering, science, supply chain, and finance. While it is also useful in the decision-
making process, it is less likely to be applicable. MCS as Pokorádi (2016) asserts, introduces the
organization to multiple scenarios through which it can obtain reliable outcomes by predicting
the probability of occurrence of a specific scenario. In so doing, it is possible to minimize risks
and estimate cost overruns, especially in large projects.
Project costs can also be estimated using make-or-buy analysis whereby the ability of a
project team to accomplish a particular task is determined (Baker & Martin, 2011). The approach
also ascertains the possibility of purchase from external resources, if the project team
demonstrates incapability. Nonetheless, budget constraints influence make-or-buy decisions
since analysis is necessary to incorporate all costs, such as indirect and direct costs. Lease-or-buy
analysis encompasses the decision to either buy or lease equipment that is necessary for
PEER REVIEWS 4
production (Baker et al., 2011). The approach does not necessitate down payment and the
company’s financial activities cannot be restricted. Both make-or-buy and lease-or-buy provide
organizations with a platform to source services and maintain economically and financially
sound operations to address project requirements.
PEER REVIEWS 5
References
Baker, H. K., & Martin, G. S. (2011). The Lease versus Buy Decision. Capital Structure and
Corporate Financing Decisions, 387.
Bierman Jr, H., & Smidt, S. (2012). The Capital Budgeting Decision: Economic Analysis of
Investment Projects. Routledge.
Horngren, C. T., Foster, G., Datar, S. M., Rajan, M., Ittner, C., & Baldwin, A. A. (2010). Cost
Accounting: A Managerial Emphasis. Issues in Accounting Education, 25(4), 789-790.
Pokorádi, L. (2016). Availability Assessment with Monte-Carlo Simulation of Maintenance
Process Model. Politechnical University of Bucharest. Scientific Bulletin. Series D.
Mechanical Engineering, 78(3), 43-54.
Srithongrung, A. (2018). Capital Budgeting and Management Practices: Smoothing Out Rough
Spots in Government Outlays. Public Budgeting & Finance, 38(1), 47-71.
Running head: PEER REVIEWS 1
Peer Reviews
Student’s Name
Institutional Affiliation
Date
PEER REVIEWS 2
Peer Reviews
Student One: Tajuana O
Good post Tajuana O! Capital budgeting is instrumental in the strategic allocation of
resources in an organization. Financial planning is crucial for the success of any organizational
operation and capital budgeting is a suitable approach in the estimation of associated costs
(Bierman Jr. & Smidt, 2012). Long-range plans and short-term objectives are instrumental in
determining the necessary actions that will enable an organization to achieve its goals over a
specified period (Srithongrung, 2018). Notably, capital budgeting ensures the consistency of
financial plans that guarantee the effective and efficient use of allocated resources to complete a
project (Bierman Jr. & Smidt, 2012).
Organizations have capabilities that ought to be demonstrated in their capacity to
maintain operations within a longer period in the case of a long-range plan. Capital budgeting
fosters accuracy and reliability in forecasting both the sales and revenues of an organization
(Bierman Jr., 2012). Indeed, the components of a long-range plan necessitate proper planning
and strategy. Organizations have diverse needs that must be evaluated to ascertain the extent to
which the allocated resources address those needs. However, a change in an organization’s
operations or an adjustment on the already allocated resources interferes with long-range plans.
Organizations ought to align capital budgeting strategies with the allocation of resources in the
long term (Bierman Jr., 2012).
Short-term objectives are instrumental in making decisions and creating a plan for the
organization over a short period. Srithongrung (2018) notes that while budgets may be created
depending on organizational units, an integrated plan is vital to assess the ability to achieve the
PEER REVIEWS 3
overall goals. What is more, long-range plans and short-term objectives work collaboratively to
ensure the success of capital budgeting. Organizations can make viable decisions and ensure
continuity of operations using these techniques of capital budgeting (Srithongrung, 2018).
PEER REVIEWS 4
References
Bierman Jr, H., & Smidt, S. (2012). The Capital Budgeting Decision: Economic Analysis of
Investment Projects. Routledge.
Srithongrung, A. (2018). Capital Budgeting and Management Practices: Smoothing Out Rough
Spots in Government Outlays. Public Budgeting & Finance, 38(1), 47-71.
PEER REVIEWS 5
Student Two: Jon C.
Great Post Jon C.! Monte Carlo Simulation (MCS) offers useful insights about how
organizations can deal with the uncertainty that relates to capital budgeting. MCS is useful in
modeling the probability associated with different results when the prediction of a process is
unreliable as a result of the random variables. As such, organizations can adopt it as a means to
understand the effect of uncertainty and risk in the forecasting and prediction of models
(Horngren et al., 2010).
Notably, MCS is helpful in handling or solving multiple problems in nearly every field
such as engineering, science, supply chain, and finance. While it is also useful in the decision-
making process, it is less likely to be applicable. MCS as Pokorádi (2016) asserts, introduces the
organization to multiple scenarios through which it can obtain reliable outcomes by predicting
the probability of occurrence of a specific scenario. In so doing, it is possible to minimize risks
and estimate cost overruns, especially in large projects (Pokorádi, 2016).
Project costs can also be estimated using make-or-buy analysis whereby the ability of a
project team to accomplish a particular task is determined (Baker & Martin, 2011). The approach
also ascertains the possibility of purchase from external resources, if the project team
demonstrates incapability. Nonetheless, budget constraints influence make-or-buy decisions
since analysis is necessary to incorporate all costs, such as indirect and direct costs. Lease-or-buy
analysis encompasses the decision to either buy or lease equipment that is necessary for
production (Baker et al., 2011). The approach does not necessitate down payment and the
company’s financial activities cannot be restricted. Both make-or-buy and lease-or-buy provide
organizations with a platform to source services and maintain economically and financially
sound operations to address project requirements (Baker & Martin, 2011).
PEER REVIEWS 6
References
Baker, H. K., & Martin, G. S. (2011). The Lease versus Buy Decision. Capital Structure and
Corporate Financing Decisions, 387.
Horngren, C. T., Foster, G., Datar, S. M., Rajan, M., Ittner, C., & Baldwin, A. A. (2010). Cost
Accounting: A Managerial Emphasis. Issues in Accounting Education, 25(4), 789-790.
Pokorádi, L. (2016). Availability Assessment with Monte-Carlo Simulation of Maintenance
Process Model. Politechnical University of Bucharest. Scientific Bulletin. Series D.
Mechanical Engineering, 78(3), 43-54.
Running head: TALENT MANAGEMENT 1
Talent Management (A Healthcare Industry Problem)
Student’s Name
Institutional Affiliation
Date
TALENT MANAGEMENT 2
Talent Management (A Healthcare Industry Problem)
Talent management is a thriving concern in the healthcare industry due to the demand
for efficiency and transparency in service delivery (Cappelli et al., 2014). Healthcare
organizations require committed staff to offer patient-centered care, embrace new technology,
and work exceptionally in a consumer-driven environment (Ingram & Glod, 2016). Talent
management is an essential aspect of ensuring greater transparency, especially in pricing
information to prevent patients from comparing healthcare costs with competitors. The
increasing demand for healthcare necessitates a competent workforce that easily accepts change
and embraces emerging technologies to deliver patient-centered care (Turner, 2018). Since
healthcare is becoming a consumer market, talent management will be impactful in ensuring
customers obtain advanced service delivery and develop great experiences with healthcare
workers. As such, competition for talented and competent healthcare professionals as Michaels et
al (2014) note, will increase to enhance higher retention, better candidate experiences, recruiting
the best talent, employee engagement, and goal achievement.
Research Questions
a) What is talent?
b) What is talent management?
c) What is the significance of managing talent in healthcare organizations?
d) What is the war for talent?
e) What factors determine successful talent management in the healthcare industry?
TALENT MANAGEMENT 3
References
Cappelli, P., & Keller, J. R. (2014). Talent Management: Conceptual Approaches and Practical
Challenges. Annu. Rev. Organ. Psychol. Organ. Behav., 1(1), 305-331.
Ingram, T., & Glod, W. (2016). Talent Management in Healthcare Organizations-Qualitative
Research Results. Procedia Economics and Finance, 39, 339-346.
Michaels, E., Handfield-Jones, H., & Axelrod, B. (2014). War for Talent-Time to Change
Direction. KPMG International, 1-2.
Turner, P. (2018). Defining Talent in the Health Sector. In Talent Management in
Healthcare (pp. 39-64). Palgrave Macmillan, Cham.
