Analyze the Capital Cycle (healthcare related) Assignment

Analyze the Capital Cycle (healthcare related) - Assignment Example There are two components of a capital structure. The first comprises of strategic planning and implementation, while the second comprises of the development of supporting infrastructure which include financial planning, capital structure and capital allocation. The importance of a financial plan to an organization is that it places the organization in financial equilibrium position, which defines its organizational capabilities. The financial infrastructure plays an important role in giving integrity and momentum to the capital cycle. Capital structure on its part looks at the questions relating to the financing of the organization, which is best described as a combination of debt and equity that seeks to finance the strategic plan. Capital allocation should be done in consideration with the best practices that relate to financial objectives and policies, review of the project and the approval of the capital expenditures of the organization. ... Poplin (2011) observes that capital capacity has significantly reduced the hospital capacity, and defined the amount of capital available to the organization for funding both the routine capital requirements and the strategic plan of moving forward. Feasibility and impact of improved operating performance shows that organizations geographically located in markets that do not expect to experience organic growth have difficulties in closing the gap between projected sources and the application of finances over that time horizon. Strategic position and viability of strategic plans cautions executives to look closely at the strategic plans in line with the current financial plan. Some strategies may have to be extended to a later date while others may require some urgency in implementation. According to Coss (2009), labour efficiency in a healthcare institution is an important factor in the capital cycle. However, it is difficult to access individual worker’s productivity of the o rganization. In case it has to be done, a desired understanding of what defines a desired output is put into consideration. Healthcare investments that are aimed at improving the efficiency are increasing being considered by organizations. The various processes that are put into more focus include the workflow analysis, workplace architecture, product design, and information technology. The major difference is vested on the persons involved in the purchase of equipment and the actual users of the equipment. Different sets of purchasing and marketing motivators affect the purchasing decisions of high ranking decision making officials in a different way than those who regularly put the equipment to