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ENTR 3100 UCHC Financial Analysis

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Business

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Analytical Review

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Name:
ID#:
Course: ENTR 3100
Instructor:
Submission date:
"I confirm that this work is entirely my own, has been prepared by me, and
adheres to the Academic Integrity Statement digitally signed by me and on
file with the Instructor."

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1. Average total revenue from 2006 to 2011 / average total expenses from 2006 to
2011
2. Current Ratio = Current Asset / Current Liabilities (22,111/347,473 = 0.6) from
Income Statement
3. Source: The Canadian Population. Retrieved from:
https://www12.statcan.gc.ca/census-recensement/2011/as-sa/98-311-x/98-311-
x2011001-eng.cfm & https://www12.statcan.gc.ca/census-recensement/2016/dp-
pd/prof/details/page.cfm?Lang=E&Geo1=POPC&Code1=0698&Geo2=PR&Code2=
47&SearchText=Regina&SearchType=Begins&SearchPR=01&B1=All&GeoLevel=P
R&GeoCode=0698&TABID=1&type=0
Definition of Success:
To cover the losses to the break-even level, the UCHC needs to increase its
revenue by 6.18%1 in 2012, UCHC needs to address:
Critical Issue:
The defects of the current pricing strategies make the UCHC’s prices are much
higher than the new competitors, Which has led to the loss of a large number of
potential customers and prohibited maintaining the market share and growth of the
UCHC.
The UCHC’s products and services have lost their appeal to many seniors’ citizens
due to old facilities, small rooms and the rising standard of living of Canadians.
The UCHC’s financial strategies should have been more detailed with government
subsidies to keep them out of bankruptcy.
Situation Analysis:
According to the case, there are three main reasons explain the situation of
UCHC is running in losses. First is the obsolete infrastructure of properties. Second,
new competitors enter the market with the same even better services but lower prices.
Such as, the UCHC offers rooms with nursing services for $4,000, but, their
competitors offer the same service for only $2,000 to $2,500. Third, currently, as the
income has been revamped in the last 3 decades, people in Canada are looking for
better living styles after they retired. Which results in the UCHC has lost the
attractiveness to those people who are seeking for large space unit and luxury quality
services. Also, according to the UCHC’s financial situation that their current ratio was
only 0.62, which means the UCHC being insolvent.
This industry is very profitable that the number of people over 65 increased by
more than 600,000 in Canada between 2006 and 2011. More specifically, the senior
population increased by 18.27%3 only in Regina from 2006 to 2011, which attracts
many new competitors who enter this market. Besides, the government offers about
$500 subsidies and allowances to the elderly in need to help them live a better life per
month.
Decision Criteria:
Implement effective price strategy.
Increase the revenue by 6.18% in a year to cover their costs and stay away from
bankruptcy.
Improve their infrastructure and renovate properties to attract more customers.

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Name: ID#: Course: ENTR 3100 Instructor: Submission date: "I confirm that this work is entirely my own, has been prepared by me, and adheres to the Academic Integrity Statement digitally signed by me and on file with the Instructor." Definition of Success: To cover the losses to the break-even level, the UCHC needs to increase its revenue by 6.18%1 in 2012, UCHC needs to address: Critical Issue: ⚫ The defects of the current pricing strategies make the UCHC’s prices are much higher than the new competitors, Which has led to the loss of a large number of potential customers and prohibited maintaining the market share and growth of the UCHC. ⚫ The UCHC’s products and services have lost their appeal to many seniors’ citizens due to old facilities, small rooms and the rising standard of living of Canadians. ⚫ The UCHC’s financial strategies should have been more detailed with ...
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