ACCA Strategic Business Leader (SBL)

Preseen Application Note (Sample)

June 2024

Steve Chen, FCCA, ACA

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NOTE) PRESEEN (SILVER) (REVISION) (JUNE 24)
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Chapter 1: Preseen Material Summary and
Application

Preseen material summary:

1. Introduction

• Praecuro Vet Services Ltd (PVS)

• Provides pet veterinary (vet) services in Arland.

• Fifth largest organization in the industry.

• Established for 32 years.

2. Pet Vet Services Industry – Arland

• Overview

• Provides healthcare for pets.

• Employs veterinarians and vet nurses in clinics.

• Pets: Include cats, dogs, small mammals, birds, small reptiles,

and some rodents.

• Veterinarians:

• Study veterinary medicine for five years at university.

• Take demanding exams.

• Undergo rigorous on-the-job training.

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Preseen Application: Common business models in this
industry – with real life companies:
1. Corporate-Owned Clinics: VCA Animal Hospitals (prior to being acquired by Mars,
Incorporated).
• Large veterinary service providers own and
operate all their clinics directly, maintaining full
control over operations, quality, and brand
consistency.
• Transnational structure (Matrix structure):
Corporate headquarters oversee all
operations, ensuring standardized practices across all locations.

2. Mergers and Acquisitions (M&A): CVS Group plc.

• Companies grow by acquiring existing

veterinary practices, integrating them into
their network to expand market presence
and achieve economies of scale.
• Rapid Expansion: Quickly increases
market presence through the acquisition of established practices.

3. Franchise Model: Banfield Pet Hospital.

• Veterinary service providers expand by allowing

independent operators to open and manage clinics
under their brand, following standardized practices
and guidelines.
• Standardization: Ensures consistent quality of
care and services across all franchised locations.
• Support Systems: Offers comprehensive training, marketing, and
operational support to franchisees.

4. Joint Ventures: Mars Petcare

• Veterinary practices form joint

ventures with other businesses, such
as pet food companies, to expand
services and market reach.
• Shared Resources: Combine resources and expertise from both partners
to enhance service offerings, to increase make share.

5. Independent Clinics: small-town or neighborhood veterinary practices

• Small, locally-owned veterinary clinics that

operate independently, providing personalized
services to their local communities.
• Personalized Care and local focus
(flexible): Focus on building strong
relationships with clients and providing
personalized care.

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6. Telehealth and Telemedicine Services: Fuzzy Pet Health.

• Veterinary services delivered remotely using

digital communication technologies, such as
video consultations and online advice platforms.
• Convenience and lower overheads: Offer
convenient, at-home veterinary care,
reducing the stress of travel for pets and
their owners.
• Niche Market: Cater to clients who prefer or require at-home veterinary
services.

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Preseen application – Common Growth methods:
• M&A
• Franchise

1. CVS Group's Growth Strategy: M&A

Growth through:
• Acquisitions: Actively acquires
established veterinary practices and
integrates them into its network.
• Limited organic growth: expanding
services at existing locations or
opening new clinics
Key: Centralized Management:
1. Transnational structure: A centralized
management system, overseeing
operations from a central head office. This includes functions such as finance,
HR, IT, and procurement.
2. Standardization: Implements standardized procedures with advanced
management information system, across all clinics to ensure consistent quality
of care.

2. PetIQ, Inc. (using franchised and company-owned locations)

Key:
1. Standardization
• Consistent Care Protocols: PetIQ
ensures that all franchised locations
adhere to standardized care
protocols, providing uniformity in the
quality of services offered.
• Regular Audits: Conducts
regular audits and
inspections to ensure
compliance with its high
standards of care, maintaining consistency across all locations.
2. Support Systems
• Comprehensive Training Programs: PetIQ offers extensive training programs for
franchisees and their staff to ensure they are well-prepared to deliver high-
quality veterinary services.
• Management Systems: Supplies advanced management information systems
for scheduling, record-keeping, and inventory management.
• Marketing Assistance: Offers marketing support, including national advertising
campaigns, local marketing strategies, and digital marketing tools.

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Preseen application – Financial Statements
Characteristics:
Three visible characteristics:
1. High Proportion of Salaries and Wages: A significant portion of the company's
operating expenses is dedicated to salaries and wages for veterinarians, vet
nurses, and support staff.
2. Inventory of Medical Supplies and Pet Products: The balance sheet will show
substantial inventory consisting of medical supplies, medications, and pet
products (e.g., food, accessories).
3. Revenue from Veterinary Services and Product Sales: Revenue streams are
typically diversified between veterinary services (consultations, surgeries,
diagnostics) and the sale of products (medications, pet food, accessories).
Ratios:
1. Gross Profit Margin: 45% to 55%
2. Operating Profit Margin: 10% to 20%
3. ROCE: 15% to 25%
4. Current Ratio: 1.5 to 2.5
5. Inventory Days: 30 to 45 days
6. Payables Days: 45 to 60 days
7. Cash Level: 5% to 10% of total assets
8. Interest Cover: 4 to 8 times
9. Operational Gearing: 30% to 50%

Preseen application – Service Costing

Components Composite Cost Unit
Veterinarian or vet nurse time. Cost per minute
Use of consultation room.
Surgical supplies (e.g., gloves, sterilization materials) Cost per procedure
Veterinarian and surgical team time Cost per hour
Veterinarian interpretation and consultation (Diagnostic Test) Cost per test
Vaccine dosage cost Cost per dose
Hospital stay (bed usage) (Some pets are larger than others) Cost per day per pet

Cost components:
Materials: about 20% Labour: about 50% Overhead: about 30%

• Medical supplies • Salaries and wages for • Clinic rent and utilities.
(medications, veterinarians, vet • Administrative and IT
bandages, syringes). nurses, and support costs.
• Surgical supplies. staff. • Marketing and
• Pet food and • Benefits and bonuses. promotional activities.
accessories for resale. • Training and • Maintenance and
• Diagnostic equipment development costs. insurance costs.
and consumables.

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Preseen Application – Practical ways to control costs in this industry
Materials
Bulk Inventory Management: Implement strict
Purchasing: inventory
Negotiate bulk management
purchase to reduce
discounts with wastage and
suppliers, ie overstocking, ie
sources uses inventory
medication management
and supplies software to
centrally (CVS group). track and optimize stock levels (Banfield Pet
Hospital).

Labour
Efficient Scheduling: Use software to optimize Continuous Training: Invest in ongoing training
staff scheduling, ensuring adequate to improve staff efficiency and reduce errors,
coverage ie
without

overstaffing, ie advanced scheduling systems regular training programs (PetIQ, Inc)

to match staffing levels with demand (VCA
Animal Hospitals)

Overheads
Energy Efficiency: Implement energy-saving Digital Records: Use electronic health records
measures to reduce utility costs. to streamline operations and reduce
• High Operational Costs: Veterinary clinics paperwork.
often operate many electrical devices, For example,
including diagnostic equipment (X-rays, Banfield Pet Hospital
ultrasounds), surgical lights, uses a centralized
electronic health
record system to
improve efficiency.

heating/cooling systems for patient

comfort, and general clinic lighting.
• 24/7 Operations: Some veterinary
facilities operate round the clock, which
leads to significant energy consumption.

For example, IDEXX Laboratories uses

energy-efficient equipment and practices to
lower energy consumption

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Preseen application – factors driving up costs
Our observation: Among various types of pets, dogs and cats typically consume the
most costs due to their size, complexity of medical needs, and longer lifespans.
• Complexity of Care: Animals requiring more complex medical or surgical
interventions will consume more costs. Larger animals or those prone to specific
health issues often fall into this category.
• Long-term Care: Pets with longer lifespans or those prone to chronic conditions
may incur higher lifetime costs due to ongoing medical needs.
• Food and Supplies: Larger animals consume more food and require larger
quantities of supplies, contributing to higher costs.
• Special Treatments: Pets needing specialized treatments or equipment can drive
up costs significantly. (Birds and reptiles may require specialized veterinary care
due to their unique health needs)

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Preseen application – Handling Adverse Events (e.g.,
Pet Death)
1. Immediate Response:
• Transparency and Communication: The company should communicate
promptly and transparently with the pet owner, explaining the situation,
what went wrong, and the steps taken during the treatment process.
• Empathy and Support: Show empathy and provide emotional support
to the pet owner, acknowledging their loss and offering condolences.
• Compensation: a refund of medical expenses, offering services for other
pets, or financial compensation.
2. Conduct an Investigation: Perform an internal investigation to determine the
cause of the incident. This may include reviewing medical records, speaking
with the veterinary team involved, and analyzing any procedural lapses.
3. Legal and Insurance
• Legal Counsel: Consult with legal counsel to understand the potential
legal implications and ensure compliance with relevant regulations and
standards.
• Insurance Coverage: Utilize veterinary malpractice insurance to cover
legal costs and any potential settlements.

Examples:
1. Banfield Pet Hospital (2015): A dog named Colby died after a routine dental
cleaning at a Banfield Pet Hospital. The pet owner claimed negligence in post-
operative care.
• Banfield issued a statement expressing condolences and conducting a
thorough investigation.
• The investigation led to a review and enhancement of post-operative
care protocols.
• Banfield provided compensation and support to the affected pet owner.
Result: Positive Public Perception.

2. Medivet Scandal (2016): A dog died during a routine surgery at a Medivet clinic in
the UK. The pet owner accused the clinic of negligence, claiming inadequate care
and poor communication.
• Lack of Transparency: Medivet initially did not communicate effectively
with the pet owner about the incident and investigation results.
• No Immediate Remedial Actions: The clinic did not promptly review or
change their procedures following the incident.
• Result:
• Negative Publicity: The lack of transparency and perceived negligence
led to widespread negative publicity. Media coverage and social
media amplified the negative perception.
• Legal Repercussions: The pet owner pursued legal action, resulting in
significant legal costs and a settlement that further damaged Medivet’s
financial position and reputation.

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Preseen application - Issues with Veterinary Education
and Training
1. Aspen Veterinary Clinic (2018): A veterinary clinic in Colorado was found to
have employed veterinarians who did not complete their required continuing
education credits.

• Legal Action: The clinic faced legal

action and was fined for non-
compliance with state regulations.
• Reputation Damage: The incident
damaged the clinic’s reputation,
leading to a loss of client trust and a
decline in business.

2. VetSchool Controversy (2019): A veterinary school in the UK was criticized for its
subpar training program, which led to graduates
being inadequately prepared for professional
practice.

• Accreditation Issues: The school faced

potential loss of accreditation, affecting its
ability to attract students and impacting
current students’ qualifications.
• Industry Backlash: Veterinary practices hesitated to hire graduates from
this school, affecting the employability of its alumni.

3. PetCare Veterinary Services (2020): A chain of veterinary clinics was reported

for not providing sufficient on-the-job training for newly
hired veterinarians, leading to several cases of
misdiagnosis and improper treatment.

• Client Complaints: There was a surge in client

complaints and negative reviews, harming the
clinic’s reputation.
• Staff Turnover: The lack of proper training led to
high turnover rates among new veterinarians,
further exacerbating staffing issues and quality of care.

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Preseen material summary:
3 Services provided

1. Annual vaccinations
2. Diagnosis of health conditions and diseases
3. Medical treatment once a condition, disease or injury has been
diagnosed
4. Prescription of medication. A prescription is an authorisation by
the ……….
5. Sale of other products (‘accessories’) such as bedding, cages and
toys for pets

These services are usually provided via consultations with a veterinarian or

a vet nurse.

Consultations are usually booked on the telephone or online. In Arland,

the average consultancy time is 15 minutes.

Preseen Application - Revenue model for the above

service:
• Service Fees: Revenue from consultation, diagnosis, treatment,
and surgical procedures.
• Product Sales: Revenue from selling medications, specialized pet
food, and accessories.
• Mark-Up: Additional revenue from the mark-up on the cost of
medications, pet food, and accessories.
• Referral Fees: Potential revenue from referring clients to specialist
services.

Preseen Application - Problems with consultations:

1. Limited Availability and Accessibility: High demand and limited
consultation time lead to long wait times and overworked staff.
2. Inconsistent Quality of Care: Variability in the skills and experience
of veterinarians and vet nurses results in inconsistent diagnosis and
treatment quality.
3. Time Management: Managing consultation schedules efficiently is
challenging. Overbooking or underbooking can lead to

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 inefficiencies, with either long waiting times for clients or idle time
for staff.

Preseen Application – KPIs for efficiency

Consultation Average Client Wait Time

Utilization Rate Consultation
Duration
(Number of Total Consultation Total Waiting Time for
Completed Time / Number of All Clients / Number
Consultations / Consultations of Clients
Number of Available
Consultation Slots) x
100
……… ……… ………

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Preseen material summary:
4. Market Structure Summary

• Traditional Structure:

• Small businesses run by veterinarians or groups of

veterinarians.

• Each business included one or two clinics.

• Growth driven slowly and organically by obtaining new

clients.

• Growth and Acquisitions:

• Increase in pets led to business expansion.

• Larger organizations began acquiring smaller ones for cost

savings from economies of scale.

• Acquisition activity expected to continue over the next five

years.

• Multinational Involvement:

• Multinational organizations, especially those with pet food

divisions, attracted by industry profits.

• Acquiring vet businesses to expand market reach and

promote pet food products.

• Expected to continue expanding through acquisitions.

• Current Market Control:

• Three multinationals control 52% of the market:

• Gloas Group: 23%

• Bellstone Group: 16%

• Hude Group: 13%

• Three large, independent organizations operate regionally.

• Hundreds of smaller businesses operate locally, usually with

less than ten employees.

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 • Market Data (as of 31 March 20X4):

• Total industry revenue: $2.5 billion.

• Employment: Almost 36,000 people.

• Market Share by Revenue:

• Gloas Group: 23%

• Bellstone Group: 16%

• Hude Group: 13%

• Dennis Vet Clinics: 7%

• Praecuro Vet Services: 6%

• Good Health Veterinarians: 4%

• Other: 31%

Preseen Application – Our revenue and revenue per

employee
• Our market share = 6% (but our 20x3 financial information shows 6.6% market
share) x $2.5 billion Market revenue = $150 million – per 20x3 record our sales
was $165 million.
• Revenue/staff = $165 million/ 2,490 staff (PVS) = $66,265/staff

Preseen Application – Cost savings from acquiring

smaller companies:
1. Bulk Purchasing of Medical Supplies – Medications, Vaccines, Surgical supplies.
2. Centralized Administration – Accounting, HR, IT
3. Consolidated Marketing Efforts – Advert campaigns, Digital marketing,
Community outreach (such as workshops, school visits, volunteer support)

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Preseen Application – Syngery Creator
As the M&A will continue for the next 5 years, it’s highly likely that this is a synergy
creator corporate level strategy when manging the portfolio.

Therefore, economies of scale and cost savings, integrating into the group using
standardised procedures would be the key for subsequent operations.

Preseen Application – Considerations regarding Joint

Venture arrangement with Pet Food Company:
1. Strategic Alignment:
……….nd Banfield Pet Hospital's
partnership, where Mars leverages
Banfield's veterinary services to promote its
pet food products.

2. Operational Synergies:
• Integration of
supply ……..
Example: Nestlé Purina and
PetCare's collaboration to streamline
product distribution and marketing efforts.

3. Financial Structure and Governance

• Clear agreement on
investment ………t decision-
making and accountability.
Example: Zoetis and Abaxis's joint venture,
where both parties agreed on financial terms
and a governance framework to manage operations effectively.

Preseen application – potential acquisition of pet food

company:

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If Praecuro Vet Services Ltd (PVS)
considers acquiring an
international pet food company,
they can use International Value
Networks to optimize their
operations and enhance
competitive advantages.

Here's how:

1. Cost Advantages: Manufacturing and Production - Locate ……….

and raw material costs are lower.
2. Unique Local Capabilities: Research and Development (R&D) -
Establish R&D centers in countries with renowned universities and
expertise in veterinary sciences and pet nutrition. Example: PVS
can locate R&D activities in countries like the United States or
Germany, known for their advanced research capabilities and
educational institutions.
3. Overcoming Tariffs: Regional Manufacturing and Distribution -
Operate regional manufacturing and distribution centers to
avoid ………. avoid import tariffs and streamline the supply chain.

Risks:

1. Regulatory Compliance - Ensure comprehensive understanding

and ……….

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Preseen Application - Market structure and trends
There is evidence from the
preseen that oligopoly market
structure (three multinational
organisations controlling 52% of
the market), and monopolistic
competition, ie hundreds of
smaller business operating
locally.

Therefore, we believe the

following trends may take place
in this market:

1. Increased Mergers and Acquisitions (M&A) - The trend of larger organizations

acquiring smaller practices is likely to continue, driven by the desire for
economies of scale, market expansion, and competitive advantage.
2. Technological Integration - Greater use of telehealth services to provide
remote consultations, improving accessibility for clients and reducing
operational costs.
3. More Comprehensive Care Plans: Development and marketing of
comprehensive pet healthcare plans, including preventive care, emergency
services, and wellness programs to attract and retain clients.
4. Stricter Regulations: Implementation of stricter industry regulations and
standards to ensure high-quality care and maintain customer trust.
5. Market Entry by New Players
• International Players: Entry of new international veterinary chains or pet
care companies looking to capitalize on the growing market.
• Innovative Startups: Emergence of innovative startups offering unique
services or utilizing new business models, such as subscription-based
healthcare plans or mobile veterinary services.
6. Enhanced Customer Service: Investment in customer service training and
technology to improve client interactions and satisfaction.
7. Green Certifications: Pursuit of green certifications and implementation of
sustainability programs to enhance brand reputation and appeal to
environmentally conscious clients.
8. Partnerships and Joint Ventures
• Collaborations with Pet Food Companies: More joint ventures and
partnerships with pet food companies to leverage synergies, promote
products, and expand market reach.
• Alliances with Technology Firms: Partnerships with technology firms to
integrate advanced IT solutions, enhance data management, and
improve service delivery.

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Preseen material summary:
Industry outlook in Arland:

Revenue:

• Historical Revenue Growth: Average annual growth over the last

five years: 3.5%.

• Projected Revenue Growth: Expected average annual growth for

the next five years: 6.8%.

• …………and seek veterinary services irrespective of their

disposable income.

Preseen application – Increasing demand for pets:

1. Companionship and Emotional Support: More people are adopting pets for
companionship and emotional support, especially in urban areas where
loneliness is a common issue.
2. Increase in Pet-Friendly Policies: …… people to own pets.
3. Increased Pet Health Awareness: Greater awareness and education about pet
health and wellness are motivating pet owners to seek regular veterinary care.
4. Advances in Veterinary …….. to increased trust in veterinary services.
5. Rising Disposable Income: Higher disposable incomes allow more people to
afford pets …….

Preseen application – Potential growth opportunities

from increasing in Pet demands:
1. Pet Hotels and Boarding Services - Establish pet hotels offering luxurious …….
while their owners are away.
2. Expansion of Healthcare Plans - Introduce and market comprehensive pet
healthcare …..ervices, and preventive treatments.
3. Mobile Veterinary Services - Develop mobile veterinary units to provide at-
home care, increasing convenience for pet owners and capturing a niche
market.

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 4. Telehealth and Telemedicine - Implement telehealth services for remote
consultations, follow-ups, and advice, catering to clients who prefer virtual
interactions.
5. Pet Nutrition and Specialty Food - Partner with pet food companies to offer
specialized and premium pet nutrition products in clinics and online.
6. Advanced Diagnostic and Treatment Centers - Invest in state-of-the-art
diagnostic and treatment centers, offering advanced medical procedures and
specialized care.
7. Pet Wellness Programs - Create wellness programs focused on preventive care,
fitness, and ………ms.
8. Veterinary Training and Education - Establish training programs and workshops
for pet owners on pet care, nutrition, and first aid, building community
engagement.
9. Community Outreach and Events - Organize community events, such as pet
adoption drives, health camps, and pet shows, to increase brand visibility and
client loyalty.

Preseen Application – Offering Insurance as one of the

horizontal diversification opportunities:
1. ………… not traditional insurance,
it functions similarly by spreading
costs.
2. Pets …….. the UK's leading pet
insurance providers.

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Preseen Application - Opportunities for Government
Collaboration and Subsidization in Pet Care
Potential Opportunities:
1. Governments subsidize pet vaccinations to prevent zoonotic diseases -
Opportunity: Collaborate with government health departments to include
pet ……. health initiatives.
2. Government vouchers or subsidies for essential veterinary services -
Opportunity: Partner with government programs to provide subsidized
veterinary care for low-income families.
3. Funding for veterinary care during natural disasters like hurricanes or floods -
Opportunity: Work with government disaster relief agencies to ensure pets are
cared for during emergencies, with subsidies for veterinary services in
disaster-……-cost check-ups and vaccinations - Opportunity: Join forces with
government health campaigns to promote pet wellness and preventive care,
with subsidized services for participating pet owners.
4. Grants for developing new vaccines or treatments for common pet diseases -
Opportunity: Secure government grants for research and development in
veterinary medicine, focusing on innovative treatments and preventive care.

Examples in real life:

1. Australia’s Pet Desexing Programs - Some local governments in Australia offer
subsidies for pet desexing to control the pet
population and promote responsible pet
ownership. Outcome: Reduced stray animal
populations and improved public health.

2. UK’s ……..) - The PDSA works with the UK government to provide free or low-
cost veterinary services to pet owners
receiving certain government benefits.
Outcome: Access to essential veterinary care
for pets of low-income families.

3. United States’ Spay/Neuter Assistance Programs - Various states in the US offer

spay/neuter assistance programs funded by the
government to reduce pet overpopulation. Outcome:
Lower numbers of homeless animals and reduced
euthanasia rates in shelters.

Preseen application – Responses to reduced customer

spending:

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1. Premium and Specialized Products - Response: Develop and market high-quality,
specialized pet products such as premium pet food, supplements, and luxury
accessories.
• Example: Blue Buffalo produces
premium pet foods with natural
ingredients, targeting health-
conscious pet owners willing to
spend more for better nutrition.

2. Pet ……. manage the cost of

veterinary care, making it easier for
them to afford comprehensive services.
• Example: ASPCA Pet Health Insurance provides
various plans covering accidents, illnesses, and
wellness care, ensuring pets receive necessary
treatments without significant financial burden on
owners.

3. ………..: Increase convenience and accessibility through

mobile vet services, telehealth consultations, and
extended clinic hours.
• Example: Vetted PetCare offers mobile veterinary
services that bring healthcare directly to the pet
owner's home, reducing stress for pets and
providing convenience for owners.

• ………ers CareClub Wellness Plans that include regular exams, vaccines,

screenings, and discounts on additional services.

5. Loyalty and Membership Programs - Response:

Develop loyalty and membership programs to
reward regular customers and encourage repeat
business.
• Example: Banfield Pet Hospital offers a
loyalty program that rewards pet owners
with discounts and benefits for regularly
using their services.

6. ……..ood companies, to offer bundled services and products.

• Example: Mars Petcare partners with
veterinary practices to offer
integrated services and promote their
pet food products, leveraging their
extensive brand portfolio.

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Preseen material summary:
Costs:

• Staff Costs: Largest proportion of costs, including salaries and

training.

• Medical Supplies: Expenses for medication, bandages, syringes.

• Resale Products: Costs for purchasing pet food and accessories.

• Premises: Rent or mortgage for clinic spaces.

• Administration: Office expenses and management costs.

• Health and Safety: Compliance costs, such as safe storage of

medicine.

• Marketing: Expenses for advertising and promoting services.

Preseen Application – Overheads Considerations in

this industry:
1. Franchise Model - Example: Banfield Pet Hospital
• Strategy: Uses a franchise model to expand without bearing
the full cost of new clinic setups. Franchisees invest in the
premises and equipment, reducing initial capital outlay for
the parent company.
• Benefit: Spreads overhead costs across franchisees while
ensuring standardized quality and service.
2. Owning …

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Preseen material summary:
Clients:

• Demographic Shift:

• 60% of new pet owners in Arland in the last five years are
aged 16 to 34.

• Historically, pet ownership was more common among those

over the age of 35.

• Convenience and Accessibility:

• Clients prefer clinics that are easy to travel to, minimizing

transportation time for their pets.

• Quick access in emergencies is a key factor in choosing a

clinic.

• Demand for Flexible Hours:

• Increasing demand for convenient consultation times,

including evenings and weekends.

• Veterinary organizations are under pressure to extend their

opening hours.

• Price Sensitivity:

• Many clients compare consultation fees across different

clinics.

• To keep consultation fees competitive, many vet

organizations opt to mark up medication prices instead.

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Preseen Application - Practical Ways Real Companies
Improve Convenience

1. Online Booking and Telehealth Services

- Example: Fuzzy Pet Health
• Strategy: Offers online booking for appointments and telehealth
consultations, allowing clients to schedule visits and receive advice
without leaving their homes.
• Benefit: Increases accessibility and reduces the need for in-person visits.

2. Extended Opening Hours - Example: Banfield Pet Hospital

• Strategy: Extends clinic hours to evenings and weekends to
accommodate clients' busy schedules.
• Benefit: Provides flexibility for pet owners, making it easier to visit the vet
outside of traditional working hours.

3. Mobile Veterinary Services - Example: Vetted PetCare

• ….

Preseen Application – Marketing perspectives for

younger pet owners
• Digital Transformation: Invest in developing a comprehensive digital strategy,
including a robust online booking system, telehealth capabilities, and a
dedicated mobile app.
• Flexible and Accessible Services: Extend clinic hours, offer mobile veterinary
services, and ensure multiple locations to cater to young pet owners' need for
convenience.
• Sustainability Initiatives: Implement and promote eco-friendly practices within
the clinic and offer sustainable pet products.
• ….

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Preseen Application – Ethical issues involved in
competitive consulting fee
In theory:

1. Being "Economical with the Truth" - Not fully transparent about the pricing
structure. Implication: Clients may
feel misled if they discover that
medication prices are significantly
marked up without a
corresponding decrease in
consultation fees.
2. Price Manipulation, Excessive
Pricing - Marking up medication
prices …., Targeting Vulnerable
Consumers - Advertising low
consultation fees while hiding the
true cost in medication prices.
Implication: This practice can be
seen as misleading, particularly to
consumers who may be financially
vulnerable or less informed about
standard pricing practices.

To balance ethics and commercial objectives:

1. … Hospitals provides detailed billing explanations and itemized invoices to
show how costs are calculated.
• Commercial Aspect: Clearly communicate the pricing structure to
clients, ….nsures clients have all necessary information to make
informed decisions, fostering trust and transparency.

2. Value-Based Services - Example: Pets at Home (Vets4Pets) offers wellness plans

that include routine check-ups, vaccinations, and discounts on medications,
providing clear value and reducing overall costs for pet owners.
• Commercial Aspect: Offer value-added services that justify pricing,
such as comprehensive wellness plans that bundle services at a
reduced overall cost.
• Ethical Aspect: Provides clients with clear value for money, enhancing
perceived fairness.
…..

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Preseen material summary:
Challenges within the industry in Arland:

• Staff Recruitment and Retention

• Increasing demand for veterinarians due to a rise in pet

ownership

• Fewer people training as veterinarians due to high training

costs

• Nationwide shortage of veterinarians

• Long working hours and challenging client negotiations

• 5% of staff absent with work-related stress

• 13% average staff turnover

• Client Loyalty and Competition

• Low client loyalty with high competition on fees, quality of

care, range of services, and opening hours between nearby
clinics

• Competition from large, budget pet superstores (Best4Pets,

Pet Fare)

• Competition from online pet medication providers offering

cheaper prescription medications

• Competition from telehealth services offering remote

healthcare advice and consultations

• Environmental Impact

• Pet healthcare has a large carbon footprint due to waste

production, resource consumption, and medicines usage

• Concerns about potential negative publicity regarding the

environmental impact, similar to that faced by the human
healthcare industry

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Preseen Application – Staff shortages
Implications for Praecuro Vet Services Ltd (PVS):

Increased Government Support and

Funding
• Financial Aid and Subsidies:
Actively seek and apply for
government subsidies, grants,
and financial aid to reduce
hiring and training costs.
• Educational Partnerships:
Partner with veterinary schools
for internships and
apprenticeships to create a
pipeline of future veterinarians and enhance company reputation.
Higher Salaries and Improved Working Conditions
• …. progression paths to improve job satisfaction and reduce turnover.
Increased Use of Technology and Innovation
• Telehealth Services: Invest in telehealth technology for remote consultations
and follow-up services to manage workload and provide convenient care.
• AI and Automation: Incorporate AI and automation for routine tasks to improve
operational efficiency and allow veterinarians to focus on complex care.
• … to ensure staff can effectively use these tools and provide high-quality care.

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Preseen Application – Challenging negotiations with
pet owners

Operational Point of View: Dealing

with Pet Owners:
1. Transparent Pricing and Payment
Plans
• Upfront Communication:
Clearly communicate treatment costs and potential expenses before
services are provided. Ensure pet owners understand the financial
implications.
• Flexible Payment Options: Offer installment payment plans or financing
options to help pet owners manage costs over time. This can make
expensive treatments more accessible.
2. Tiered Service Options
• Basic to Premium Packages: Provide tiered service packages that cater
to different budgets, offering basic essential care at lower costs and
premium services at higher prices.
• Alternative Treatments: Suggest alternative treatments or medications
that may be more affordable, while still ensuring the pet’s health is not
compromised.
3. Pet Health Insurance Promotion
• Educate Clients: Educate pet owners about the benefits of pet health
insurance and encourage them to enroll. This can alleviate financial
burdens for unexpected treatments.
• Partnerships with Insurers: Partner with pet insurance companies to offer
discounted rates or special plans for PVS clients.

Holistic Company Approach:

1. Financial Assistance Programs
• Charity Funds: Establish a charity fund or financial assistance program
to …..

Preseen Application – 5% staff absent with work

related stress and 13% staff turnover
Practical Approaches to Address Work-Related Stress and Staff
Retention:
1. Employee Wellness Programs
• Mental Health Support: Access to mental health professionals and stress
management workshops.
• Wellness Initiatives: Offer yoga, meditation, fitness classes, and healthy
lifestyle programs.
• …..

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GlobalAPC (www.globalapc.com)
Preseen Application – Customer Loyalty
1. Tiered Membership Plans
• Basic, Standard, Premium Tiers: Offer multiple membership tiers that
provide different levels of services. For example, basic plans could
cover routine vaccinations and
annual check-ups, while
premium plans include
advanced diagnostics, dental
care, and emergency visits.
• Exclusive Benefits: Higher-tier
members receive exclusive
benefits such as priority
booking, extended
consultation times, and
discounts on specialty services or products.
2. Wellness Packages
• Annual Wellness Packages: Create comprehensive wellness packages
that include a set number of consultations, vaccinations, and
preventive treatments. This ensures regular visits and ongoing care.
• Customizable Plans: Allow clients to customize their wellness packages
based on their pet's specific needs, ensuring they get the most value
out of the membership.
3. Referral Rewards
• ………

Preseen Application – Competition with Large, budget

pet superstores
There is no way to compete with them based on costs, or differentiation, as
theoretically, customers chose those superstores because they know how to cure their
pets.

Therefore, a viable option is to sell our PVS pet products through those stores.

Examples:
1. Hill’s Pet Nutrition

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 • Partnership with Retailers: Hill’s Pet Nutrition, known for its Science Diet
and Prescription Diet lines, partners with large pet
retailers like Petco and PetSmart. They offer their
specialized veterinary diets both in-store and
online.
• Educational Support: Hill’s provides in-store
educational materials and training for retail staff to
help them understand and recommend their
products effectively.
2. Royal Canin

• Retail and Veterinary Channels: Royal Canin sells its products through
both veterinary clinics and large pet retail stores.
They maintain distinct product lines for each
channel, ensuring that some specialized diets
remain ……. 30-40% to the retailer.
1. Private Label Arrangement
• PVS produces products that are branded under
the superstore's private label. PVS handles
manufacturing while the superstore handles
marketing and sales.
• Profit Sharing: PVS earns a margin on the production cost, while the
superstore sets the retail price and retains the margin from the retail
markup.

Key points to bear in mind when collaboration is used:

1. Negotiating Payment Terms

• Agreements: Clearly define payment terms in the contract, such as net
30 or net 60 days. Ensure that there are clauses for late payment
penalties……….
• Sales Analytics: Regularly review sales data to monitor performance,
identify trends, and adjust strategies accordingly.
• Feedback Mechanisms: Set up channels for feedback from superstores
to understand consumer preferences and improve product offerings.

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Preseen Application - Online pet medication
providers
A few ideas to differentiate among other online providers:
1. Price Matching and Discounts
• Price Matching: Offer to match the prices of online pet medication
providers for clients who present a valid quote or price from a
recognized online retailer. This ensures clients feel they are getting the
best possible deal.
• Member Discounts: Provide exclusive discounts on medications for
members of your loyalty or wellness programs, making in-clinic
purchases more attractive.
2. Convenience and Speed
• In-Clinic Dispensing: Ensure medications are available for immediate
purchase and use at the clinic, eliminating wait times associated with
online orders.
• Same-Day Delivery: Offer same-day delivery services for medications
within a certain radius of the clinic to provide a level of convenience
comparable to online providers.
3. Comprehensive Care Packages
• Bundled Services: Create bundled care packages that include
medications along with veterinary services (e.g., check-ups,
vaccinations) at a competitive price, adding value beyond just the
medication.
• Subscription Services: ……….. administered medications and potential
side effects, highlighting the value of veterinary guidance.

Preseen application – Deal with competition from

Telehealth
Real life companies:

1. Banfield Pet Hospital

• Vet Chat: Banfield Pet Hospital offers a Vet Chat service through their
mobile app, providing clients with access to veterinarians for advice
and minor
consultations. This
service is part of
their broader
package, which
includes in-person
visits and
preventive care plans.

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 • Optimum Wellness Plans: These plans bundle telehealth consultations
with in-clinic services, ensuring comprehensive care and convenience
for clients.
2. Petco

• PetCoach Platform: Petco's PetCoach

platform offers online consultations, advice
from veterinarians, and health monitoring
tools. Petco integrates this with their in-store
services, creating a hybrid model that
leverages both remote and in-person care.
A few ideas to respond to such competition:

1. Hybrid Service Model

• Integrated Care: Combine telehealth with in-clinic services to offer a
seamless, comprehensive care package. For example, initial
consultations and follow-ups can be conducted via telehealth, while
more complex diagnostics and treatments are done in person.
• 24/7 Support: ………-based preventive care packages that include
telehealth consultations, vaccinations, and regular health checks.

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GlobalAPC (www.globalapc.com)
Preseen Application – Carbon footprint

A list of carbon footprint components:

1. Waste Production
• Medical Waste: Used syringes, needles, gloves, bandages, and other
single-use medical supplies contribute to significant medical waste.
• Pharmaceutical Waste: Expired or unused medications that need to be
disposed of safely to prevent contamination.
• Packaging Waste: Packaging materials for medications, pet food, and
medical supplies, including plastic bottles, blister packs, and cardboard
boxes.
2. Resource Consumption
• Energy Usage: High energy consumption for lighting, heating, cooling,
and operating medical equipment in veterinary clinics.
• Water Usage: Significant water usage for cleaning, sterilizing equipment,
and maintaining sanitary conditions in clinics.
• Paper Consumption: Extensive use of paper for medical records,
prescriptions, client information leaflets, and administrative purposes.
3. Transportation Emissions
• Supply Chain Logistics: Emissions from transporting medical supplies, pet
food, and other products to veterinary clinics.
• Client //////////

A few ideas to reduce carbon footprint in this industry:

1. Waste Reduction and Management

• Recycling Programs: Implement comprehensive recycling programs for
paper, plastic, and other recyclable materials.
• Proper Disposal: Ensure safe and environmentally-friendly disposal of
medical and pharmaceutical waste.
2. Energy Efficiency
• Energy-Efficient Equipment: Invest in energy-efficient lighting, heating,
cooling, and medical equipment to reduce energy consumption.
3. //////////
• Electronic Records: Transition to electronic medical records to reduce
paper consumption.
• Digital Communications: Use digital platforms for client
communications, prescriptions, and information dissemination.
4. Sustainable Transportation
• Telehealth Services: Expand telehealth services to reduce the need for
client travel.
• ….

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GlobalAPC (www.globalapc.com)
Preseen material summary:
Innovation and Developments

• Technological Advances:

• Use of artificial intelligence (AI) and machine learning in

medical, surgical, and diagnostic procedures.

• Enhanced quality and range of veterinary services due to

advanced technology.

• Capital Intensity:

• ……….. through remote consultations

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GlobalAPC (www.globalapc.com)
Preseen Application – AI risks
1. Client Data Management -
Handling and integrating
diverse data sources (e.g.,
medical records, IoT device
data, social media) while
ensuring compliance with
privacy regulations.
2. Diagnostic and
Treatment …..

Preseen Application – Controls regarding AI risks

1. At Conception
• Independent Review:
Engage a third-party
veterinary technology expert
to review the AI project’s
objectives, methodologies,
and intended outcomes. This
includes assessing the ethical
implications and ensuring alignment with clinical standards and
regulatory requirements specific to veterinary care.
• Purpose Clarity: Clearly define the AI system’s objectives, such as
improving diagnostic accuracy for common pet conditions (e.g.,
dental disease, arthritis) or optimizing treatment plans for chronic
illnesses (e.g., diabetes in pets), and ensure these goals are feasible and
beneficial to veterinary practice.
2. Data Management
• Access Controls: Implement role-based access controls to restrict
data …..
• Bias Testing: Use fairness metrics and bias detection tools to evaluate
the AI model for potential biases specific to veterinary care. Implement
corrective measures to address any identified biases, such as ensuring
the training dataset includes diverse breeds and species.
• Diverse Training Data: Ensure the training dataset is diverse and
representative of the entire pet population, including different breeds,
species (cats, dogs, small mammals), and health conditions, to prevent
bias against certain groups.
3. Model Implementation
• …. should be followed or questioned. Include a checklist for critical
assessment of AI outputs in veterinary contexts, such as differentiating
between similar symptoms in different species.
• Scenario Planning: Conduct regular scenario planning exercises to
prepare veterinary staff for situations where AI recommendations may

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GlobalAPC (www.globalapc.com)
 need to be overridden, such as recognizing when a complex case
requires a specialist's input.
4. Model Use and Implementation
• ….

The rest of content is shown in the actual package

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GlobalAPC (www.globalapc.com)
Chapter 2: PESTEL Analysis
Political
• Regulations and Legislation: PVS must comply with various regulations, such as
health and safety legislation, which impacts its operations. Non-compliance
can lead to legal consequences and damage to reputation.
• Professional Bodies: Veterinarians at PVS are regulated by the Chartered
College of Vet Professionals (CCVP). Adhering to CCVP’s code of conduct
ensures that PVS maintains high standards in pet care and professional
responsibilities.

Economic
• Market Competition: PVS faces intense competition from national, regional,
and local vet organisations, particularly on price. This can affect revenue and
market share.
• Cost Management: The centralised purchasing system helps PVS obtain bulk
purchase discounts, which is beneficial in managing costs.
• Healthcare Plan Impact: The PVS Healthcare Plan, although beneficial for client
retention, impacts cash flows due to the deferred payment for expensive
treatments.

Social
• …

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GlobalAPC (www.globalapc.com)
Chapter 3: Porter’s Five Forces Analysis
1. Threat of New Entrants - Barriers to Entry:
• Regulatory Requirements: Veterinary practices are heavily regulated, requiring
practitioners to be registered with professional bodies such as the Chartered
College of Vet Professionals (CCVP). This creates a high barrier to entry for new
competitors.
• High Initial Costs: Setting up a veterinary clinic involves significant initial
investment in equipment, facilities, and obtaining necessary licenses.
• Established Relationships: PVS has a long-standing relationship with major
suppliers like Arland Vet Supplies Ltd, securing bulk purchase discounts that
new entrants may struggle to match.
• Impact on PVS: Moderate threat due to high regulatory and financial barriers,
but PVS must continue to innovate and provide high-quality services to
maintain its market position.

2. Bargaining Power of Suppliers - Supplier Concentration:

• Key Supplier Dependency: PVS sources all medication and supplies from Arland
Vet Supplies Ltd, the largest vet wholesaler in Arland, giving this supplier
significant power.
• Multiple Pet 。。。。。

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Chapter 4: Porter’s diamond analysis
1. Factor Conditions
Labor Market:
• Availability of Skilled Veterinarians: PVS needs to assess the availability of skilled
veterinarians in the target market. Countries with well-established veterinary
education systems will be more attractive.
• Cost of Labor: Understanding wage levels and employment laws in the target
market is crucial. Lower labor costs can provide a competitive advantage but
must be balanced against the quality of care.
Infrastructure:
• Facilities and Equipment: The availability and cost of veterinary facilities and
modern medical equipment are essential. Countries with better infrastructure
can support more advanced veterinary services.
• Technology: Access to advanced technologies for diagnostics, treatment, and
administrative tasks will impact operational efficiency and service quality.

2. Demand Conditions
Local Pet Ownership Trends:
• Pet ….

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Chapter 5: SWOT Analysis

SWOT Analysis for PVS

Element
Strengths • Established market presence with 168 clinics and
strong brand recognition.
• Comprehensive service offering with a range of
diagnostic and surgical procedures.
• Strong supplier relationships and bulk purchase
discounts.
… • …
• …
• …
… • …
• …
• …
… • …
• …
• …

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GlobalAPC (www.globalapc.com)
Chapter 6: Porter’s Value Chain analysis

Primary Current Situation Opportunities for

Activities Improvement
Inbound Centrally managed bulk Implement e-procurement
Logistics purchasing of medication and systems and advanced
supplies. Individual clinics inventory management.
purchase pet food.
Operations 168 clinics of varying sizes with Standardize procedures, adopt
different service capabilities. advanced diagnostic and
treatment technologies.
… … …
… … …
… … …

Support Current Situation Opportunities for

Activities Improvement
Firm Head office provides finance, IT, Implement ERP systems,
Infrastructure purchasing, legal, facilities develop performance
management, and HR functions. management systems.
… … …
… … …
… … …

Chapter 7: Cultural web analysis

Cultural Element Current situation at PVS

(mnemonics from
Steve: PRCROSS)
Paradigm Differentiation through innovation, client service,
operational excellence, and customer intimacy.
Structure of Power Shared power among executive directors,
significant influence of CEO and executives,
operational power held by district managers and
senior veterinarians.

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 Control System Rewards and KPIs tied to financial success, client
satisfaction, quality of care, and clinical
standards adherence.
… …
… …
… …
… …

In detail:

1. Paradigm:

• Current Focus: PVS has historically differentiated itself

through …Innovation: Tales of past innovations in pet care services,
although these have dwindled in recent years.

• Client Care: Anecdotes highlighting exceptional client service

and successful treatments that reinforce PVS’s client-centric
culture.

• Community Impact: Stories about PVS’s involvement in local

communities and its commitment to pet health and welfare.

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Chapter 8: Leadership in Strategic Change

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GlobalAPC (www.globalapc.com)
8.1 Types of strategic changes summary:
Type of Strategic Change Potential Changes at PVS
Change Paradigm (Transformational):

1. Revolution: Strategic Drift - Implement advanced technology

- Expand internationally
- Rebrand and reposition
… …
…
…
…
… …
…
…
… …
- Optimize supply chain
- Training and development

In detail:

Change Paradigm (Transformational): Do Not Change Paradigm

(Realignment):
1. Revolution: Strategic Drift (Big Bang – Do it
Quickly) 3. Financial Problem (Big Bang:
Reconstruction)
• Implement Advanced Technology:
Rapidly adopt cutting-edge veterinary • Cost Reduction Program: Implement a
technologies and digital tools (e.g., company-wide cost reduction
telehealth, AI diagnostics). program to address financial issues.

• Expand Internationally: Enter new • Asset Liquidation: Sell non-core assets

international markets aggressively to to improve liquidity and
capture global …services, introducing stabilize …channels.
new treatments and procedures
regularly. … compromising service • Optimize Supply Chain: Implement e-
procurement systems to streamline
quality.
purchasing processes and
improve ….

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8.2 Current leadership style:
1. Centralized Decision-Making: Most decisions, including pricing, new services
rollout, and salary levels, are made centrally by the executive board. This
indicates a top-down leadership approach where authority is concentrated at
the top levels of the organization.
2. Role of Executive Directors: The board comprises eight executive directors,
each owning a significant share of the company (11.11%). This suggests a
collective or shared leadership model at the executive level, where key
decisions are made collaboratively among the directors.
3. Responsibility Distribution: The Chief Operating Officer (COO) oversees day-to-
day operations, with district managers and senior veterinarians handling more
localized management tasks. This hierarchical structure implies a transactional
leadership style, focusing on clear roles, responsibilities, and performance-
based 。。。 。aiming to change client engagement and improve long-term
loyalty.

8.3 Potential Cases for Transformational

Leadership
1. Market Expansion: PVS is considering entering international markets to
counteract declining local market share. Transformational leadership is needed
to inspire and guide the team through the complexities of new regulations,
cultural differences, and market dynamics in these new regions.
2. Innovation Revival: After a period of stagnation with no new services
introduced in the past two years, PVS needs to revitalize its innovation strategy.
Transformational leadership can drive the development and implementation of
cutting-edge pet care services, such as telehealth consultations and
advanced diagnostic tools, to regain a competitive edge.
3. Cultural Change: The existing culture at PVS, characterized by a lack of
recent innovation and reliance on traditional marketing methods, needs to shift
towards a culture of continuous improvement and adaptability.
Transformational leaders 。 。
。。
4. Crisis Management: Should PVS face a major crisis, such as a significant
public health issue or a scandal affecting its reputation, transformational
leadership would be crucial. Such leaders can provide the necessary
inspiration and clear direction to navigate through the crisis, rebuild trust, and
emerge stronger.

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Framework for transformational leadership:
Transformational leadership – aim to achieve organisational change/improvement so
that affect organisation culture.
• follow Vision and mission, Strategic objectives (products and markets),
Organisational structure and control system, Monitor performance
• sell vision to staff (convince others to come on board) +
• create trust (personal integrity) to create followers +
• lead from the front and visible to others.

Example: Crisis Management at PVS

PVS faces a crisis due to a significant public health issue (e.g., a disease outbreak
affecting pets) which leads to public concerns about visiting clinics and affects staff
morale.

Application of Transformational Leadership:

1. Vision and Mission:
• Vision: "To be the trusted leader in pet care by ensuring safety and
quality during crises."
2. Mission: "To provide continuous, safe, and high-quality care to pets
while 。。。。 。。

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8.4 Leadership Style (My mnemonics: CCCC)

Communication (Incremental Change)

When to Use: When implementing gradual changes that require buy-in from all levels of
the organization. During times of innovation and improvement initiatives.

Pros Cons
Quick implementation if there is strong Can be slow if facing resistance
alignment with the vision and mission. from staff or stakeholders.

。。。。

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Chapter 9: Project and Change Management

Project and Change

Management

Change
Project Management Management – Process Change
Turnaround Strategy

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GlobalAPC (www.globalapc.com)
9.1 Project Management
Potential project management cases:
1. Expansion of Clinic Network: Open new clinics in underserved areas to increase
market reach.
2. Digital Transformation: Implement an advanced ERP system to streamline
operations, 。。。 。。

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A holistic approach for project management – with an
example about sustainability initiative:
PVS is committed to becoming a leader in environmental sustainability within the
veterinary industry. To achieve this, PVS will undertake a comprehensive Sustainability
Initiatives Project aimed at reducing its carbon footprint, enhancing eco-friendly
practices, and promoting sustainability awareness within the community.

Principles in Project Management Applied to PVS Sustainability Initiatives

1. Stakeholders:
Stakeholder Role and Impact Impact of Missing
Stakeholder
Project Oversees the daily running of the Missing deadlines, budget
Manager project, facilitates the team, and overruns, scope changes,
provides support. Ensures project and quality issues.
milestones are met.
… … …
… … …
… … …
… … …
…
… … …
… … …
… … …
… … …
… … …

2. …

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GlobalAPC (www.globalapc.com)
9.2 Change Management – Turnaround Strategy
Background Case
PVS, a prominent veterinary service provider, has been experiencing declining
revenues and market share due to increased competition, rising operational costs,
and an inability to attract and retain skilled veterinarians. The company's outdated
management practices and lack of innovation have further exacerbated its financial
troubles. To address this crisis and ensure the company's survival, a comprehensive
turnaround strategy is required.

Turnaround Strategy Principles Applied to PVS

1. Crisis Stabilisation
• Action: Implement immediate cost-cutting measures, such as reducing
non-essential expenditures, renegotiating supplier contracts, and
optimizing clinic operations to eliminate inefficiencies.
• Monitoring: Establish monthly financial reporting to track revenue
increases and cost reductions, ensuring that the company is moving
towards financial stability.
2. Management Changes
• Action: Replace the current management team with experienced
turnaround specialists who have a track record of successfully
navigating companies through crises.
• Impact: New management will bring fresh perspectives, innovative
ideas, and the necessary skills to steer PVS back to profitability.
3. Communication with Stakeholders
• Action: Engage in transparent communication with all stakeholders,
including employees, clients, suppliers, and investors. Provide
education, training, and support to employees to align them with the
new strategic direction…..
• Goal: Strengthen the company’s financial foundation to support
ongoing operations and future growth initiatives.
4. Prioritisation Areas for Improvement
• Action: Identify and prioritize critical areas for improvement, such as
modernizing clinic facilities, adopting new veterinary technologies, and
enhancing customer service.
• Implementation: Develop a phased plan to address these priorities,
starting with the most urgent issues that will have the highest impact on
turnaround success.

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GlobalAPC (www.globalapc.com)
9.3 Process Change
1. Pattern of changes needed:

Business Process Re-engineering (BPR) – Transformation

1. Client Communication System

• Current Problem: No facility for clients to communicate with clinics via

email and limited social media presence.

• Key Fact: Implement an integrated client communication platform that

includes email, live chat, and social media engagement.

• Objective: Enhance client engagement and improve response times.

2. Supply Chain Management

• Current Problem: Reliance on a single supplier for medications and

varied 。。。。

Use POPIT model to deal with the change:

Problem: Currently, the patient referral system at PVS has gaps and disconnects that
lead to delays and miscommunication when smaller clinics refer patients to larger PVS
clinics for procedures they cannot perform.

POPIT Model Application

People
• Current Issue: Staff at smaller clinics often misunderstand the referral process,
leading to incomplete or incorrect information being passed on to larger
clinics.
• Change Needed: Training programs for clinic staff to ensure they understand
the referral process and the importance of accurate information transfer.
Organisation
• Current Issue: Lack of coordination between smaller and larger clinics results in
patients experiencing delays and inconsistent care.
• Change Needed: Establish clear roles and responsibilities within the referral
process, ensuring all clinics are aligned and coordinated.
Process
• Current Issue: The referral process is not well-defined, leading to unnecessary
paperwork and delays in patient care.
• Change Needed: Redefine the referral process to streamline steps, reduce
unnecessary document sharing, and ensure a smooth and quick transition for
patient care.
IT
• Current Issue: The current IT system does not adequately support the referral
process, leading to inefficiencies and communication breakdowns.
• 。 。 。clinics, making the referral process more efficient and cost-effective.

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GlobalAPC (www.globalapc.com)
Apply Business Process Re-engineering Principles:
Background: Currently, PVS's appointment scheduling system is outdated and
inefficient, leading to double bookings, long waiting times, and frustrated clients. The
process involves multiple steps and approvals, causing delays and errors.

BPR Application Using Framework

1. Market Driven
• Current Issue: The current appointment scheduling system does not meet the
expectations of clients who prefer quick and easy booking options available in
other pet care services. Change Needed: Develop an online appointment
scheduling system that allows clients to book appointments directly, check
availability in real-time, and receive instant confirmation.
• Action: Implement a market-driven, user-friendly online booking platform.
Outcome: Improved client satisfaction and retention due to a more convenient
and efficient booking process.

2. Link Parallel Activities

• Current Issue: The process of booking an appointment, confirming it, and
preparing for the visit involves multiple parallel activities that are not well
coordinated, leading to …

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GlobalAPC (www.globalapc.com)
Chapter 10: Talent Management

Ways that talent management can be done:

Employer Branding - Establish PVS as a leading and desirable employer in the
veterinary industry by highlighting its commitment to innovation, high-quality care, and
employee development.

• Showcase Expertise: Highlight the specialized services offered by larger clinics

and the innovative pet care solutions historically developed by PVS.

• Community Involvement: Participate in local pet care events and sponsorships

to build a positive reputation.

• Online Presence: Enhance the PVS website and social media profiles with
employee testimonials, success stories, and company achievements.

Referrals - Implement a referral program where current employees can recommend

potential candidates for open positions.

• Incentivize Referrals: Offer bonuses or rewards for employees who successfully

refer new hires.

• Leverage Networks: Encourage veterinarians and staff to share job openings

within their professional networks and on social media.

• Recognition: 。。
。

Talent Management Question

PVS, a leading veterinary services provider, has been facing several challenges that
threaten its competitive edge and operational efficiency. The company has
experienced difficulties in attracting and retaining skilled veterinarians due to a
nationwide shortage. This shortage has led to increased workloads for existing staff,
impacting morale and service quality. Additionally, the lack of recent innovation in pet
care services and a limited focus on staff development have hindered PVS’s ability to
remain a market leader.

To address these issues, PVS is considering implementing a comprehensive talent

management strategy. This strategy aims to foster a learning organization culture,
attract new talent, and establish a robust succession planning system. The following
sections outline the benefits and drawbacks of this approach.

Required: ...

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Chapter 11: IT Controls

11.1 Infrastructure to Support E-Business

Operations at PVS using 5 layers
1. Application Layer - This layer involves the systems that directly support PVS’s business
operations, enabling the company to create value and maintain high standards of
service.

• CRM System: A Customer Relationship Management (CRM) system can be

integrated to manage client interactions, track service history, and personalize
communication, improving customer service and retention.

• Supply Chain Systems: Implementing supply chain management systems to

streamline the procurement of pet medications and supplies, ensuring timely
deliveries and optimal stock levels.

2. Software and Hardware Layer - This layer ensures that all software and hardware
components function properly and are connected safely.

• Software: Upgrading to modern clinic management software for appointment

scheduling, medical records, and billing can improve operational efficiency
and accuracy.

• Hardware: Ensuring that all clinics are equipped with updated and compatible
hardware such as ， ，，

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11.2 General Controls
Written Policies:

• Policies to document and correct errors in patient records and treatment

documentation.

• Procedures for the accurate recording and updating of pet health information.

Training:

• Regular training sessions for veterinarians and clinic staff on new technologies,
procedures, and compliance with health and safety regulations.

• Training on the use of new software systems for scheduling, billing, and patient
management.

Segregation of Duties:…

PVS Company Contingency Plan (IMPORTANT)

Introduction:
The purpose of this contingency plan is to outline the procedures and actions to be
taken in the event of a disaster to ensure the continuity of critical operations and
services at PVS clinics.

Types of Disasters: Flood

Control and Communication:

Responsibilities of Recovery Teams: The 。。。。

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11.3 Application Controls
Input Controls:
1. Data Entry Authorisation:
• Ensure that only authorized personnel can enter data into the system,
such as veterinarians and clinic staff.
• Implement user-specific login credentials and access levels.
2. Completeness Checks:
• Ensure all required fields in patient and treatment records are filled out
before submission.
• Use mandatory field settings in the software to prevent incomplete data
entry.
3. Validation Checks:
• Implement automated validation rules to check for data accuracy,
such as correct date formats and valid identification numbers.
• Use dropdown menus and predefined options to minimize entry errors.

• Processing 。。。of output data.

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Chapter 12: Ethical issues
Potential Ethical Issues:
1. Animal Welfare: Ensuring that all animals receive humane and ethical
treatment during diagnosis and treatment.
2. Confidentiality: Protecting client and patient information from unauthorized
access and ensuring privacy.
3. Informed Consent: Obtaining proper informed consent from pet owners before
performing procedures or treatments.
4. Conflict of Interest: Avoiding conflicts of interest, such as veterinarians
recommending unnecessary 。 。。 。。such as using child labor or violating labor
rights.

Ethics Question Practice:

PVS has a long-standing relationship with Arland Vet Supplies Ltd, a major supplier of
medications and pet treatment supplies. Recently, it has been discovered that one of
the senior purchasing managers at PVS has been accepting kickbacks from Arland
Vet Supplies in exchange for continuing to secure large orders at inflated prices. This
unethical behavior has raised significant concerns about the integrity of the
procurement process at PVS.

Required:
a. use Tucker’s 5-Question Model to balance the ethical decision.
b. how to make sure corruption problems will be reduced.

Answer:
a: Tucker’s 5-Question Model Analysis
Is it profitable?
Accepting …

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Chapter 13: Board leadership

Current problems about board leadership at PVS:

1. Lack of Strategic Innovation and Vision
The PVS board has failed to drive innovation within the company. Despite PVS's
historical reputation for developing innovative pet care services, there has been little
to no innovation in recent years, with no new service offerings introduced in the past
two years.

2. Centralized Decision-…

Question practice for Board Leadership:

Despite its past reputation for innovation, the company has experienced stagnation
with no new service offerings in recent years. Decision-making remains highly
centralized, limiting the autonomy of district managers and senior veterinarians to
respond to local market demands. Communication with stakeholders, including
employees and clients, is inadequate, leading to disengagement and lack of trust. The
board's leadership is questioned due to its inability to drive strategic change and foster
a dynamic organizational culture.

Required:
a. The roles and benefits of introducing more NEDs.
b. Benefits and drawbacks of board diversity.

Answer:
Requirement 1: Benefits of Introducing NEDs (Non-Executive Directors)
Roles of NEDs (PRSS):
1. People Role: NEDs provide independent perspectives on human resource
issues, ensuring fair and transparent processes in recruitment, retention, and
development……
• Strategic Guidance: Their strategic role helps in shaping the company’s
direction, bringing in external insights and industry best practices.
• Risk Management: NEDs' involvement in risk committees strengthens the
company’s risk management framework, ensuring that risks are identified and
mitigated effectively.

Requirement 2: Pros and Cons of Board Diversity to Solve Leadership Problems

Board Diversity:
Pros:
1. Effective Decision-….
2. Benefit from Expertise: Diverse backgrounds in terms of expertise, experience,
and perspectives contribute to a richer pool of ideas and solutions. PVS can
benefit from a diverse board by leveraging varied expertise in veterinary

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 science, business management, technology, and customer service to improve
its operations and market offerings.
Cons:
1. Potential Conflicts: ….

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Chapter 14: Board effectiveness

Committees
Currently, there are no committees at PVS, because it is not a public
listed company. However, on the exam day, if the company seeks a
public listing status, we need to know about the roles of each
committee.

1. Nomination Committee: Include Majority of NEDs

Roles (SBSB S):

• Skills of the Board: Ensure board members possess the necessary skills to drive
PVS forward, particularly in areas like veterinary science, business
management, and technology.

• Balance between 。。。

。。mitigating risks.

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Chapter 15: Various Reports – including Audit
Difficulties

15.1 Integrated Report

Integrated Report for PVS Company - Six Capitals:

1. Financial – Funds: Ensuring sufficient funds are available to support clinic

operations and strategic initiatives.

2. Manufactured – PP&E: Maintaining and upgrading property, plant, and

equipment to provide high-quality veterinary services.

3. Intellectual – Brand, Patent: Leveraging the PVS brand to build trust and loyalty
among clients.

1. …..

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15.2 Sustainability Report
Mandatory Content
1. How it Generates Information Using Management Systems (Plan, Do, Check, Review)

• Plan: Establish sustainability goals and integrate them into the strategic
planning process. Set specific targets for reducing environmental impact and
improving social outcomes.

• Do: Implement initiatives and practices aimed at achieving

sustainability goals. This 。。。。。policies, developed long-term
。
relationships with key suppliers, and ensured fair trade practices.

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15.3 Environmental Report
Introduction

PVS Company is committed to minimizing its environmental impact and promoting

sustainability in all aspects of its operations. This report outlines our efforts and
achievements in environmental stewardship over the past year.

Environmental Impact Areas

1. Energy Consumption

• Initiative: Installation of energy-efficient LED lighting in all clinics.

• Outcome: Achieved a 12% reduction in overall energy consumption.

• Future Goal: Target an additional 10% reduction in the next fiscal year
by implementing …..

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15.4 Governance report
Leadership
• Diverse Board of Directors with veterinary, finance, and business management
expertise.
• Independent Chairperson ensures effective governance.
• Regular board meetings and strategic retreats.
Effectiveness
• Clear roles and responsibilities for board and committees.
• Regular …

15.4 Remuneration report

Example (Only)

1. 。。
。

15.5 …

15.6 …

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Chapter 16: Environmental Standard and CSR
activities
ISO 14001 (2015): Environmental Management System
at PVS

Standard Overview:
ISO 14001 (2015) is 。。PVS’s long-term business goals, driving sustainable growth and
。
operational excellence.

CSR Strategy:
Step 1: ….

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Chapter 17: E-Procurement and Marketing mix

How E-Procurement Works at PVS:

Web-Based ERP: Automates the entire procurement process for PVS, including the
creation and approval of purchasing requisitions for veterinary supplies, medications,
and pet food. This system will streamline placing orders and receiving goods across all
PVS clinics. Benefit: Ensures consistent procurement practices across all clinics, reduces
manual errors…

Marketing Mix – 7Ps

Product:
• Quality: Ensure high standards of veterinary care and pet products.
• Packaging: Attractive and informative packaging for pet medications and
products.
• Branding: Strengthen the PVS brand as a trusted name in veterinary services.
• Aesthetics: Maintain clean, modern, and welcoming clinic environments.
• Product Mix: Offer a wide range of services including diagnostics, surgery,
routine care, and emergency services.
• Servicing, Warranty, Guarantee: Provide guarantees for the effectiveness of
treatments and offer follow-up services.

Price:
• Economic Influences: Adjust pricing strategies based on economic conditions
and 。。
。。

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Chapter 18: Measures to promote cyber security

Measures to Promote Cyber Security in PVS Company

1. Risk Management Regime: Implement a robust risk management regime
supported by the corporate governance system. Cyber threats should be
integrated into the overall risk framework due to their significant potential
impact ….

General Control Framework for Cyber Security at PVS

Company

1. Controls over Organisation and Management: Implement written cyber security

policies and procedures, and incorporate them into regular staff training sessions.
• 2. Segregation of Incompatible Functions and Roles: Ensure that personnel
developing applications are not 。。。

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