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Assignment 2: Initial Capability Document

Background: You are the Chief Executive Officer of Smallville Hospital. The hospital currently has a 250-bed capacity. Owing to the rapid growth of Smallville (a suburb of Bigville), you are anticipating a growing need for additional hospital bed capacity. Currently, occupancy of hospital beds stands at 85%. You anticipate that next year, demand will be 100% of current capacity, that two years from now it will be 125% of current capacity, and three years from now it will be at 140% of current capacity. If growth of the community continues at its current pace, you anticipate that Smallville will commission the building of a county hospital, so that demand for beds at Smallville hospital will peak three years from now. After that, demand will be level.

You anticipate the need to add a new wing to the hospital. The new wing will accommodate 100 new beds. No new laboratory facilities will need to be built, so the new wing will basically be nothing more than a dormitory. (Note that over the past few years, Smallville hospital has been outsourcing its lab work to a laboratory located five miles away in Bigville.) Because of increased patient load, food preparation capacity will need to be expanded in the current facility.

You are very early in the acquisition stage. Aside from some brief discussions with architects and builders, you have not yet investigated carefully what it will take to build a new addition to the hospital. At this point, you need to gain support from the hospital's Board of Trustees to move forward with the acquisition process. If the Board supports your decision to build a new wing, then you will need to solicit bids from architects and builders.

Assignment: Using the Initial Capability Document template below to create an ICD that you will present to the hospital's Board of Directors. Ultimately, if the Board finds your ICD to be compelling, they will authorize you to move forward with the acquisition.

Your ICD should be no longer than three pages long, typed single spaced. If you want to add figures and tables, the document can be longer than three pages.

Information related to above question is enclosed below:

Attachment:- MGT279Assignment2.rar

Accounting Basics, Accounting

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