Economic Risk Assessment Of Democratic Republic Of Congo Finance Essay - Free Essay Example

Sample details Pages: 11 Words: 3260 Downloads: 5 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? This report provides an assessment of the Political and the Economic Risk of DRC for FDI by Rio Tinto and whether it will have the access to the funds to finance its direct investment in the DRC and what are the available sources to finance that project and different risks associated with them. While discussing the issues relating the political risks and other macroeconomic indicators related to the DRC. The report also addresses the issue of repatriation of dividends to the UK and risks associated with the cancellation of the mining contract. Don’t waste time! Our writers will create an original "Economic Risk Assessment Of Democratic Republic Of Congo Finance Essay" essay for you Create order The methods used for the economic risk assessment are the comparisons of the macroeconomic ratios i.e. GDP, the comparison of CFC and GBP to determine the foreign exchange risk and its effects. The sources of finance were determined through the current strategies and sources that are used by the Rio Tinto itself. The taxation issues were discussed in accordance with the current UK and DRCs taxation laws. The results of data that has been used show that the DRC has a high political and economic risk irrespective of the fact the economy of DRC has grown in the last few years and political process has also been stabilizing. Rio Tinto have the required sources of finance available in form of Joint Ventures like it recently did with the Chinalco and in the case given the Angang Steel Company, Bridge Financing and DFI which provide funds to the companies investing in the developing countries. The repatriation of profits to UK shareholders can also be managed. And the risk associated with t he cancelation of license can be mitigated by either transferring the risk by getting Political Risk Insurance or by reducing it through joint ventures. Introduction Democratic Republic of Congo is a country situated in the Central Africa. It was colonized by Belgium till 1960, when it gained the independence from them. Though the country got independence, the USA and Belgium helped the COAS Mobuto. It was that time that led the country into three decades of unstable, undemocratic period of Mobuto, resulting into the many adverse effects of the dictatorship in the country. During this period injustice, mismanagement of the issues and corruption was at its peak. These were the reasons that stopped the country which was enriched with the natural resources to grow and benefit from its natural resources, which plays a vital role in the economy of the country. In 1980 the mining industry accounted for almost 75% of the total exports and 25% of the countrys GDP. Economic Risk Assessment of DRC Political Risk: The political conflicts have been the main hurdle in the development of the DRC. The main cause of political instability in the DRC has been the presence of armed rebellions in the Far East part of the country. But due to agreement between DRC and Rwanda, the support of UN and developed countries the political environment is getting stable and its contributing a lot to the economy regardless of the political risk of DRC is still termed as high. Economic Environment of the DRC has been improving since the democratic process has started in the country. Macroeconomically DRC has grown in the past year that resulted in a stable foreign exchange rate that has also affected the inflation rate in the positive way. The debt situation has also improved due to the debt relief by the IMF and World Bank. The GDP of the country has been improving, the below graph shows how it transformed into 5.4% from -6.9% from 2000 till 2010. The GDP growth fell in 2009 that was because of the economic recession that affected the whole world. Since the mining industry comprises major chunk of the DRCs GDP, therefore revival of mining industry in the 2010 has directly impacted the GDP of the DRC. The mining industry comprises almost 30% of the GDP. The projections of IMF further show that the GDP will grow till almost 7%, which is a positive sign for the investors. GDP per capita (PPP) has also from $314.42 (2008) to 319.59(2009). The exports are also projected to grow in the 2010 and the imports are growing more in comparison to the exports hence resulting in increased negative balance of trade but investors know that the increase in imports is due to the import of the machinery required in the mining industry and to develop the infrastructure of the country. The negative balance of trade will increase the economic burden on the country but the FDI mainly by the mining companies like Rio Tinto will help the DRC to improve its current account and foreign reserves. The negative point here is that DRC still wants to borrow more money from IMF and different countries to fund its budget. IMF has agreed to provide $10 billion to DRC in return on the reconsideration of the earlier contract with the China worth $9 billion. Figures Source: World Bank and IMF Foreign Exchange Risk is high as CFC is continuously depreciating against the GBP in the long run, which is a negative indicator to the Rio Tinto because the country in which the Rio Tinto repatriate is UK where GBP is used . The foreign exchange risk can be mitigated by the Rio Tinto through the forward contracts or hedging it through different ways. 2009 2010 09 10 11 12 01 02 03 04 05 06 07 08 09 10 11 12 The first issue regarding the shipment is that the China is far away from the if sent through sea to the China, it will have to pass through the Somalian water that has been full of danger because of the Somalian Pirates, though this risk has been mitigated by the few of the best navies in the world like BRN and the PN. The other issue is that it will have to pass through Pakistan since most of the Chinese imports and exports are currently passed through the Pakistani Ports. And since Pakistan is politically instable therefore there is lot of risk involved. The shipment will also carry a high shipment costs due to the long route. This risk can be mitigated through International Insurance of the shipments because this is the best and more effective way to mitigating the risks involved in the shipment of iron ore to the China from DRC. Sources of Finances Mining companies like Rio Tinto in UK have many options for financing their projects. But in order to get the investment the projects has to be independently reviewed. Financing for mining projects is often different from the financing of other types of the projects, for this kind of project the investors will focus mainly on the technical and economical data of the project and country respectively therefore the reputation of the people engaged is very important. Sources of finance that are available to the Rio Tinto are UK Commercial Banks as a Bridge financer: Rio Tinto has A3 (Stable) Long Term Rating (Source: Moodyss Investor Services) but still since the political and economical risk of the Mining Sector in DRC is high and also the involvement of the Exchange Rate Risk the Commercial Banks may not be willing to lend the long term loans to Rio Tinto to finance their projects irrespective of their reputation and credit rating. Therefore Rio Tinto should look for the like bridge financing that usually are short term loans that are paid one off at the end of the term and are useful to finance the initial stages of the iron ore mining project which are more risky. It will provide Rio Tinto to get rid of the project if unsuccessful at the initial stages repaying the short term loan. But before opting this option Rio Tinto should also consider that same level of security May be asked by the financers as long term lenders may be asking as the risk profile of DRC is high. Dividends Cut: The dividend cut is a cost free funding source. Rio Tinto even if only pay the half of the dividend it paid to its equity shareholders in 2009 i.e. pound;550 million, it will be enough to finance the mining project in DRC. The main risk associated with this source if finance is that the shareholders may get a negative impression due to non payment or low dividends because Rio Tinto has already paid pound;552 million which is 60% less than the 2008s dividends, even though the reason of drop in the amount of dividends was a clear indication of the effects of the recession on the Rio Tinto which has also led the drop in profits as well. The shareholders still may get a negative impression on the shareholders and potential investors in the Rio Tinto. That may be the reason that Rio Tinto is planning to give same amount of dividend they gave in 2008 to the shareholders just to give the positive message to the shareholders. Joint Ventures with the Companies is an agreement where two or more business agree to cooperate and help each other on a certain project by either combining their resources or exchanging one resource with the other to get benefit out of it. It will not require any kind of changes in structure of the companies; it will only be a relationship of cooperation with each other where each one is responsible for its own profit share and risks. It also gives an immediate cashflows to the company. Rio Tinto has previously tried this with the company called Chinalco which led to cashflows of pound;12.5 billion and the current requirement of pound;250 million. And even recently the Rio Tinto is looking forward to more joint ventures with the companies in the China. The joint ventures also have risks that the different cultures and management style may result in poor coordination. And even the balance of expertise may not be achieved in the joint ventures and the objectives of the venture may be vague but in Rio Tinto joint venture with Chinalco seems to be well planned and handled and that shows their professionalism and long term view. Development Financial Institutions are the alternative financial institutions that are mostly funded by the developed countries to help the under developed and developing nations by initiating the investment by the different multinational companies in the country by giving them loans and grants. So in return the economy of those countries are improved and investment by the companies in that countries infrastructure and fulfilling different CSRs. For example in the case of Rio Tinto the pound;250 million is not a big amount for the development financial institutions like ADB, which can give the loan to Rio Tinto at rate lower than the market rate to improve the mining sector and mining legislation since Rio Tinto is one of the largest mining company in the world, so it has strong CSR values and may also influence the government of Congo. The risk in this source is that DFIs usually impose certain covenants on Rio Tinto which may __ them to perform their operations independently and im plement their plans as they had planned and if the covenants imposed are not met than there may be adverse implications of that. Repatriation of Profits to UK Shareholders Rio Tinto Group is a dual listed company which is trading on both the UKs LSE and ASE. Therefore the Rio Tinto is wishing to repatriate all of its annual profits to the shareholders in UK. There are number of issues which has to be addressed if they want to do this, some of those issues include the foreign exchange risk issues, CSR and the taxations issues are involved. Taxation Issues: The Mining Code of DRC the mining companies to pay the Professional Tax on their earnings i.e. their profits at a rate of 30% instead of the Corporate Tax Rate of 40%. The Professional Tax is charged on the same profit that is calculated by other Companies following the IFRSs and IASs or the local accounting laws. Since UK neither has any Double Tax Treaty signed with the DRC nor the Rio Tinto has registered their mining operations in DRC as a company, therefore the HMRC will ask the Rio Tinto to pay the UK Corporation Tax at a full rate of 28%. And the repatriation of the dividends will be treated as Overseas Income and not as the dividends due to the point discussed above. Though the Rio Tinto can get the DTR on the tax paid i.e. lower of tax payable in UK or paid in the DRC. Another issue here is of the withholding tax because the DRCs Mining Code will deem the repatriation if the profits as dividends paid to the UK Shareholders of Rio Tinto and the withholding ta x rate of the DRC is 10%, which will further reduce the amount repatriated to UK shareholders. Another corporate taxation issue here is that the Government of DRC is trying to get more and more tax revenue through its mining industry through curtailing different kind of benefit given to the sector under the Mining Code, even though the strong reaction from the industry has been given against the actions,. But still there is a possibility of the increase in the tax liabilities to the DRC Government which will ultimately reduce the profits repatriated to the UK shareholders. Foreign Exchange Risk: This is the key issue involved here because the foreign exchange rate determines how much dividends the shareholders of Rio Tinto will get in the UK, after the issues of tax has been determined and resolved. There is a key concern here for the Rio Tinto because the currency of DRC CFC is devaluing against the GBP. CSR and Local Environment Issues: The Rio Tinto is one of the largest mining companies in the world that has high values of CSR. CSR is just not all about Rio Tinto spending their money out from their profits in DRC or certain place where they are operating it is something more than that it is about how the Rio Tinto will contribute to the economy of the DRC which is in the developing stage, since Rio Tinto will export the iron ore to their joint venture partner Angang Steel Company, this will contribute to the GDP of DRC due to the increase in exports will have a positive impact on the balance of trade of DRC. Rio Tinto contributed almost $45,000 million in 2009 to the economies in which they are operating. The negative impact of the repatriation of profits to the UK will be the flight of foreign exchange to the UK in terms of GBP hence affecting the foreign exchange reserves of the DRC. Since the Rio Tinto is intending to repatriate the profits to the government and people of DRC m ay look negatively thinking that their countrys resources were only used to make profits for the people of the UK and they get nothing from these kind of contracts. Rio Tinto should invest a small amount in the infrastructure of the DRC making people feel that something is been done for them in return of the usage of their resources and this infrastructure will not only benefit the DRC but also the Rio Tinto providing them better roads for example for the transportation of their iron ore to their Chinese partner. Risk Cancellation of Licence by DRC Government. DRCs parliament is responsible to regulate the mining industry through the legislative process. The Mining Code 2003 is the framework through which the industry is regulated. Constitutionally the title and ownership of the mines and land that has minerals belong to the state of DRC. Though DRC Government may allow different national or foreign entities to explore and mine the fields and land to extract the minerals through a license. As the CEO of Rio Tinto has assured they will get the license of extracting the iron ore in the similar way. There is another risk that is hanging on the Rio Tinto regarding their project in DRC is that the Government of the DRC may cancel the license of Rio Tinto. The main issue here is that since Rio Tinto is one of the key players in the mining industry all over the world it may use its reputation power to resist any tax increase on the mining industry. Earlier this year on the pressure of IMF and western countries the President of DRC Mr Kabila was f orced to revise the contract terms of Tenke contract with the China. Even in 2007 a panel was appointed by the Government to review the 61 mining contracts that were considered for either cancellation or revised. And it was not the first time. So this may also happen to the Rio Tinto resulting in either loss of license or assets being confiscated by the DRC. So the possible strategies for the Rio Tinto would be either TARA: Transfer strategy means that Rio Tinto will accept the risk of either licence been cancelled or asset confiscation and Rio Tinto will than try to transfer this risk to the third parties like the Insurance Companies that provide PRI to the companies investing in the developing countries or either get the guarantees from the DFIs. Though this will have a cost to the Rio Tinto financially in the Political Risk Insurance and non financial in the DFIs case but it will give a sigh of relief to the Rio Tinto about their FDI in the DRC to extract iron ore. Avoid means that Rio Tinto doesnt face the risk of licence cancellation by simply avoiding the FDI in DRC. That means that the Rio Tinto should not invest in the DRC at all, which doesnt seems to be right because Rio Tinto Group can clearly either reduce or transfer the risk even after looking the financial statements of Rio it is clear that they can afford the investment as well. And also the project can get the Rio Tinto shareholders lot of return on their investment in the long term. Reduce: Rio Tinto can even reduce the risk of the licence cancellation by entering into a joint venture with any company which is what Rio Tinto will more likely do. As in the case Rio Tinto has already entered into the joint venture with the Angang Steel Company, this clearly means that Rio Tinto has already shared its risk with them but the percentage of risk been shared is dependent upon the joint venture contract of the companies. This is more likely solution for Rio Tinto. Accept: Another option for Rio Tinto is to face the risk of licence cancellation and doing nothing about it. This option is least used strategy in the contracts like Rio Tinto is entering into because an investment of this amount pound;250 million is not that small. Conclusion: DRC is a developing country with high economic and political risk, though the overall economic condition of the country is still not good but the political environment has stabilized a bit and economy of DRC has grown in the last few years which is giving a positive indication to the foreign companies which are willing to invest in the countrys mining industry. Rio Tinto is a one of the largest mining and CSR group which can help the local people and economy and helping government by giving high revenue in relation to their mining contract while fulfilling the interest of their own shareholders. The investment might not produce any profits in the short term but Rio Tinto have the available resources to go with the project though the risk is high will compensates the high returns in the long term fulfilling the interest of the Rio Tintos shareholders.

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Challenges Faced Internet Of Things Survey â€Myassignmenthelp.Com

Question: Discuss About The Challenges Faced Internet Of Things Survey? Answer: Introduction This part of the research proposal demonstrates some approaches named philosophy of research, research approaches, research design, and techniques of data collection. It will be significant to get appropriate information for effectively resolve the research problem. The major purpose of this research study is to address the effective technique to resolve the challenges of IT Company, Australia in an effective manner. Moreover, researchers will use various articles in the research to make a balance between the research issue and collected information. Moreover, the specified techniques can be supportive to improve the quality as well as the reliability of research by using many techniques of the observations (Highet, et al., 2014). Research Onion Framework The research methodology part includes research approaches, methods, and strategies that will be used by the researcher to collect the accurate information to accomplish the research objectives. Due to this, the researcher will use the research onion framework to create depth understanding about the tools and techniques of research. At the same time, it can also be said that the research onion framework is developed by Saunders to generate the accurate understanding of the research techniques. It will be also effective to improve the research quality in an appropriate manner (Laudon, et al., 2013). The research onion framework will be effective for the researcher because it will be supportive to determine the appropriate tools and techniques along with detail understanding regarding the techniques in a systematic way (Saunders, 2003).By using the onion framework, the research will be conducted in the following way: Research Philosophy Research philosophy plays an imperative role to make the rational reasoning for collecting, analyzing, and operating information in the research. The major aim of research philosophy is to implement the ideas and opinion regarding the research issues in the research. Moreover, the opinion and ideas of researcher become a basis for research methods. The research philosophy includes two kinds of factors such as interpretivism and positivism philosophies. For this research, researchers will use the interpretivism philosophy because research issue is subjective in nature (Leat, et al., 2013). At the same time, the interpretivism philosophy will enable the researchers to analyze and create depth understanding regarding the research issue. Further, interpretivism philosophy will be used by the researcher because of improving the research quality. At the same time, it can also be said that the researcher will not be used the deductive approach because the research is subjective in nature, which cannot be appropriate to imply the deductive approach. In addition to this, it can also be said that the deductive approach is relied on general views and ideas to reach the particular problem. It will be appropriate with the realism philosophy. For this approach, the researcher will develop hypotheses by using many theories and afterward accept and reject them as per the analysis of data (Mackey, et al., 2015). Research Approach The research approach is also crucial in the research methodology because of illustrating the cause to choose the specified research procedure. The research approach considers two elements named inductive and deductive research approach. The inductive approach is used to deeply evaluate the collected data as well as supports to develop the theoretical understanding regarding the research issue. In contrast, the deductive approach is applied to set the hypothetical origination. Besides this, the deductive approach is used to prove the hypothesis in the research. On behalf of the hypothetical plan, a researcher is capable to accept and reject the whole research process in terms of the research subject. For this research, researchers will use the inductive approach because the nature of research is subjective (Myers, 2013). For this research, there is no need of any hypothesis; hence researchers will execute the inductive approach as compared to the deductive approach. Beside this, a research will implement the inductive approach to pool the actual information about the challenges faced by the IRESS Company IT industry in Australia. This research approach is significant to determine the different opinion and values to effectively conclude the findings. In opposition to this, a researcher will not implement the deductive approach because of inappropriate data of the research (Noble, et al., 2014). Research Design A research design will be beneficial for the researcher because of determining the complete research structure effectively. By the implementation of research design, a researcher will be enabled to obtain the effective methods and to create the depth understanding of the research phenomenon for gathering the reliable information. Moreover, it helps the researcher to develop an appropriate planning procedure together with helps to get the accurate information towards the research issue. The quantitative and qualitative method is considered in the research design by the researcher to effectively operate the research (Panneerselvam, 2014). Moreover, the quantitative research relies on numerical data through statistical tools and techniques. Beside this, qualitative research allows to the researcher to develop the new ideas and perception regarding the research issue, which will be supportive resolve the research issue in an appropriate manner. A researcher will implement the qualitative research in this research because the research issue is based on the subjective nature. It will be supportive to create a strong picture towards the research problem as well as gather the appropriate data about the research problem. Moreover, the qualitative method helps the researcher in determining the human behavior together with the factors, which affect the human behaviors. In this research study, the researcher will maintain the objectivity and tried to conduct appropriate tools and techniques to fulfill the objectives of the research (Sekaran, et al., 2016). Research Strategy The research strategy is vital for the researcher because it will be supportive to evaluate the data collection methods and get the suitable outcome. The researcher will use different kinds of research strategy to resolve the issue of the research. These strategies are a case study, survey, focus group, and literature review. For this research, a researcher will implement the case study regarding the issues faced by the IT organization because of eliminating the issues of information technology. By executing this strategy, a researcher will be enabled to analyze the previous data which is related to the research issue or subject. Further, the researcher will use the case study because of analyzing the specified research issue within the limits of an organization (Shah, et al., 2016). Additionally, a researcher will implement the descriptive case study because of determining the major phenomenon regarding the research issue. Beside this, researchers will use the literature review because it will be supportive to create the understanding regarding the research issue. Moreover, a researcher will practice various sources of secondary data collection method named company website, journal, reference books, online sites, reference books, and magazines. It will be supportive to collect the information about the research problem. At the same time, it can also be said that the literature review part is helpful to develop the theoretical framework towards the issues to implement the information technology in the company. Further, these approaches will be supportive for the researcher to improve the accuracy of the result (Smith, 2015). Data Collection Method Data collection method plays a vital role in the research because it enabled the researcher to appropriately collect the data and meet the aim and objectives of the research. The data collection method considers two kinds of methods named primary and secondary data collection method. Primary data collection will be collected by fresh information or first-hand data. It will include different sources like observation, interview, focus group, questionnaire, survey data collection method. Besides this, the secondary data collection method is relied on the existing information, which can be collected through offline sources, journals, books, case study, and company websites to pool the information regarding the research issue (Taylor, et al., 2015). In addition to this, other sources of secondary data collection method are online sources, newspaper, and magazine. For this research, a researcher will implement the secondary data to get the reliable result regarding the research issue. Furthermore, the secondary data is involved the literature review due to getting the accurate result in less time and cost. Sampling Procedure The sampling process is appropriate to choose the sample from the whole population because of obtaining the accurate information regarding the research issue.There are two kinds of methods which can be included by the sampling such as probability and non-probability sampling method. The researcher will execute the probability method to provide the equal chance to the candidates who participate in the research study (Wilson, 2014). Besides this, non-probability method will not be used by the researcher due to the subjective nature of the research issue. For this research, probability sampling method will be used by the researcher because the research is based on the subjective nature. For this research, 40 employees of IRESS Company from different geographical location of Australia will be selected by the researcher to meet the research objectives. Ethical consideration For this research study, ethical consideration consists to conduct the research process in an appropriate manner along with following the guidelines of the University. Due to avoiding the ethical problems, the researcher will execute the ethical way to complete the research as well as to resolve the issue of research. For this research, the researcher will focus on some elements such as the elimination of plagiarism, data manipulation, and accurate referencing. In addition to this, it can also be said that the researcher will maintain the confidential data of the respondents who participate in the research. Estimated problem There are many elements that will be negative impacts on the research project in long-run. For this, the estimated time frameworks will a negative impact on the completion of the research in an appropriate manner. On the other side, it can be said that a researcher will face problem at the time of collection of primary data due to evaluating the respondents at one time. To decline this problem, the researcher will communicate with participants by using the e-mails, and the questionnaire method. Additionally, it will be enabled the researcher to make a positive relationship with respondents to keep the confidential data of respondents because of decline the ethical problems in the research (Zikmund, et al., 2013). Time schedule Table 1: Research plan for completing the project Activities which will be executed A total number of weeks to perform these activities. 1 2 3 4 5 6 7 8 9 10 Research issues selection Developing appropriate aim and objectives Primary and secondary data collection Design of the questionnaire Select sample by using the sampling method from the whole population Evaluation of findings Final draft and report writing Final submission of report From the above time schedule, it is addressed the execution of primary and secondary data collection method take more time than the other activities of research. Conclusion As per above interpretation, it can be summarized that IRESS can face many challenges regarding the information technology at the time of operating the business. Moreover, it can also be concluded that researcher will use that interpretivism philosophy because of obtaining the reliable result in specified time and cost. Along with this, a researcher will use the mixed data collection method because the research is based on the subjective nature. Finally, it can be illustrated that a researcher will use the statistical analysis tool due to accomplishing the research objectives in an appropriate manner. References Anderson, V. (2013) Research methods in human resource management: investigating a business issue, USA: Kogan Page Publishers. Bak, O., and Boulocher-Passet, V. (2013) Connecting industry and supply chain management education: exploring challenges faced in a SCM consultancy module, Supply Chain Management: An International Journal, 18(4), pp. 468-479. Bramness, J. G., Henriksen, B., Person, O., and Mann, K. (2014) A bibliometric analysis of European versus USA research in the field of addiction, Research on alcohol, narcotics, prescription drug abuse, tobacco and steroids 2001-2011, European addiction research, 20(1), pp. 16-22. Bryman, A., and Bell, E. (2015) Business research methods, USA: Oxford University Press. Byrnes, L., Brown, C., Foster, J., and Wagner, L. D. (2013) Australian renewable energy policy: Barriers and challenges, Renewable Energy, 60, pp. 711-721. Chong, S. (2014) Business process management for SMEs: an exploratory study of implementation factors for the Australian wine industry, Journal of Information Systems and Small Business, 1(1-2), pp. 41-58. Collis, J., and Hussey, R. (2013) Business research: A practical guide for undergraduate and postgraduate students, UK: Palgrave Macmillan. De Massis, A., and Kotlar, J. (2014), The case study method in family business research: Guidelines for qualitative scholarship, Journal of Family Business Strategy, 5(1), pp. 15-29. Eriksson, P., and Kovalainen, A. (2015) Qualitative methods in business research: A practical guide to social research, USA: Sage. Gustafsson, A., Herrmann, A., and Huber, F. (Eds.). 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Marketing a new medical business venture

In any type of marketing the characteristics of the people who form the market are important. The strategies to be employed by the marketer depend on who they are selling their ideas. In our case the physicians are to market themselves to people of a high caliber who tend to always be busy.Advertising We will write a custom essay sample on Marketing a new medical business venture specifically for you for only $16.05 $11/page Learn More This will greatly affect both the arrangement of their offices, location of the offices, office procedures and scheduling of the services. The article goes ahead to explain some of the important measures that should be taken by the physicians to ensure they carry out their business as effectively as possible. Starting off with the office organization measure, it is important to note that Boomers, Gen-Xers, and N-Gen white-collar workers are extremely busy people. This is a strong factor to consider when laying down the off ice structure. These people are not ready to spend a lot of time in queues in search of medical services. The physicians should have more than one serving points to reduce the number of people queuing. The number of serving points can be determined by simulation methods (Berkowitz, 2010). In this simulation exercise a model of the office can be used and the number of expected clients estimated. Using either queuing techniques or random numbers the physicians will easily determine the number of servers they require. This will reduce the time spent in the offices seeking the services. Their ever busy customers will then visit the offices in large numbers in their free time (Berkowitz, 2010). They should also try to reduce the number of procedures or desks that one person goes through before being served. The individuals serving these high class customers should be highly qualified to ensure the best services are offered. The highly qualified individuals will also help the clients spen d less time in the offices as they will serve them faster. Positioning of the office and other advertisement materials should be looked at keenly. The office should be situated in a central location or a place that most of the clients visit on a daily basis. Advertisement notices on the office building should be conspicuous and easily noticeable from a distance. This is because the white collar job professionals do not have time to read through small writings but will definitely read the conspicuous writings even if they do not intend to read them.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Scheduling the service time is also a very strong factor to be taken into consideration as far as marketing their business is concerned. The physicians have to study their clients, their schedules, when they are off duty and when they are likely to seek the services. This will help them come up with a service schedule that will see them manage their clients in the best way possible. It can be achieved by either scheduling the service hours to coincide with the off duty hours of their clients (Berkowitz, 2010). They can also allocate shifts to their staff such that those who are highly qualified and can work faster when there are more clients. The number of serving points can also be determined and changed from time to time depending on the available clients. It will be a good idea for the physicians to stretch and work over the weekend because it’s during the weekends that the mentioned customers will be free. Reference Berkowitz, E. (2010). Essentials of Health Care Marketing. New York, NY: Jones Bartlett Learning. This essay on Marketing a new medical business venture was written and submitted by user Julianne Kirk to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.