Situation AnalysisThe Industry – Healthcare services The healthcare industry is an aggregation and integration of sectors within the economic system that provides goods and services to treat patients with curative, preventive, rehabilitative and palliative care. The healthcare industry is one of biggest and fast-growing industries in the world. With the development of technology, the healthcare industry need follow up with the technology to provide more ways such as mobile devices or other online service to provide easier and convivence methods for both patients and doctors. There full of opportunity for the online healthcare industry to build a better environment in the industry, according to survey made by the committee of US online healthcare, in 2016, here have more than 15 million patients get help from the online healthcare service by using different ways.Industry Trend In China, because of the uneven distribution of medical resources, the lack of grass-roots doctors‘professional level, patients with disorders, which is not conducive to the development of telemedicine industry, online healthcare service stat later than other developed countries. First, the scale of online healthcare service has expanded further. On the one hand, China's aging population continues to increase, the number of chronic patients is growing rapidly, and the time of treatment is long, service demand is large, stimulating the market demand for telemedicine increased. On the other hand, the popularization of mobile medical terminals, the development of medical Internet of Things and the increasing participation of medical institutions will also promote the continuous expansion of the scale of telemedicine. The Prospective Industry Research Institute predicts that the market size of the domestic telemedicine industry will exceed 23 billion yuan in 2023. Second, the rate of medical reimbursement is expected to increase steadily. Although insufficient medical reimbursement has always been considered a major obstacle to the implementation of telemedicine, the current changes are driving the expansion of telemedicine. In the future, we will see more health insurance institutions and health insurance advantages planned to cover telemedicine services. Third, telemedicine services are increasing. Mature telemedicine services can range from counseling, supplementary prescription drugs, management of chronic diseases such as diabetes, COPD and congestive heart failure to data transmission and storage of imaging data, access to second counseling advice, and remote bi-directional vision for emergency, trauma, stroke, and intensive care. Frequency guidance treatment. Fourth, the level of telemedicine services has been greatly improved. The next generation telemedicine system will integrate all kinds of information systems, network technology, medical imaging equipment, traditional medical system and so on, and develop into a new generation of integrated telemedicine syste.

1. Situation AnalysisThe Industry – Healthcare services
The healthcare industry is an aggregation and integration
of sectors within the economic system that provides goods and
services to treat patients with curative, preventive,
rehabilitative and palliative care.
The healthcare industry is one of biggest and fast-growing
industries in the world. With the development of technology,
the healthcare industry need follow up with the technology to
provide more ways such as mobile devices or other online
service to provide easier and convivence methods for both
patients and doctors. There full of opportunity for the online
healthcare industry to build a better environment in the
industry, according to survey made by the committee of US
online healthcare, in 2016, here have more than 15 million
patients get help from the online healthcare service by using
different ways.Industry Trend
In China, because of the uneven distribution of medical
resources, the lack of grass-roots doctors‘professional level,
patients with disorders, which is not conducive to the
development of telemedicine industry, online healthcare service
stat later than other developed countries.
First, the scale of online healthcare service has expanded
further. On the one hand, China's aging population continues to
increase, the number of chronic patients is growing rapidly, and
the time of treatment is long, service demand is large,
stimulating the market demand for telemedicine increased. On
the other hand, the popularization of mobile medical terminals,
the development of medical Internet of Things and the
increasing participation of medical institutions will also
promote the continuous expansion of the scale of telemedicine.
The Prospective Industry Research Institute predicts that the
market size of the domestic telemedicine industry will exceed
23 billion yuan in 2023.
Second, the rate of medical reimbursement is expected to
increase steadily. Although insufficient medical reimbursement

2. has always been considered a major obstacle to the
implementation of telemedicine, the current changes are driving
the expansion of telemedicine. In the future, we will see more
health insurance institutions and health insurance advantages
planned to cover telemedicine services.
Third, telemedicine services are increasing. Mature
telemedicine services can range from counseling, supplementary
prescription drugs, management of chronic diseases such as
diabetes, COPD and congestive heart failure to data
transmission and storage of imaging data, access to second
counseling advice, and remote bi-directional vision for
emergency, trauma, stroke, and intensive care. Frequency
guidance treatment.
Fourth, the level of telemedicine services has been greatly
improved. The next generation telemedicine system will
integrate all kinds of information systems, network technology,
medical imaging equipment, traditional medical system and so
on, and develop into a new generation of integrated
telemedicine system. In the new generation of integrated
telemedicine system, telemedicine will become a new medical
system model under the network information environment, and
further develop more effective patient health-centered
diversified telemedicine services, providing a good inspiration.
Finally, there will be more business outlets in telemedicine. In
the future, on the basis of the bright future of the industry, more
venture projects will be favored by venture capitalists. Among
them, with the reform of the medical system, online drug sales
are about to break the ice, the type of pharmaceutical import
enterprises will significantly increase. As more doctors
participate in the telemedicine process, there will also be a
significant increase in the number of physician-entry and health
management monitoring consulting businesses.The Customer
The Online healthcare service is mainly faced with the
hospital, doctors and patients. The system can provide all
parties with many conveniences.
For hospital, they usually only have the option of

3. registration on the spot, which makes patients crowded in the
hospital lobby every day, the patients are here asking for
doctor's working hours and get registering services. This
situation also makes the environment of the hospital very noisy
and cannot bring good environment for doctors and patients. But
the online healthcare service can give the hospital a quiet
medical environment, and at the same time the online healthcare
service can reduce the hospital’s pressure and provide more
efficient services for both doctors and patients.
For doctors, they don't have to go to the office to help
patients to solve urgent problems online and prescribe them. For
Beichen Beimen Hospital, the hospital is relatively small, in the
hospital and there will always be more patients crowded in the
doorway, which will make the hospital environment noisier, but
this will not happen on the Internet, doctors can have a more
comfortable quiet environment and more sufficient time to help
patients to analyze their conditions.
For patients, as we mentioned earlier, they don't know the
doctor's working hours, have to go to the hospital to check and
register in person, but through the online healthcare service,
they can easily find each doctor's working hours and make
appointments. Sometimes, patients just want to consult a doctor
about a minor illness. Through the online healthcare service,
patients only need to connect with the doctor for a video call to
tell the doctor their questions, and then doctors according to
their situation and questions to give advice to them without
wasting time running to the hospital. Sometimes, some patients
will encounter some emergencies, while waiting for an
ambulance in the process, if the family around the online
healthcare service to ask the doctor what they can do to help the
patients, it also to provide more time for patients to survive. For
patients, the benefits of this system are enormous, and this will
be a much more preferred way for patients in the future.The
Competitors
Hence “The Organization” is mainly service for the people
who live in Beichen district here have several competitors

4. around Beichen Beimen Hospital.
Hospital
Description
Tianjin Beichen Hospital
The hospital has more than 1,500 beds and consists of 47
clinical professional departments. Five of them are national key
professional departments (including Organ Transplant Center,
Critical Care Medicine, Key Laboratory, Integrated Traditional
Chinese and Western Medicine and Laboratory Department).
Three of them are municipal key professional departments
(including Organ Transplant Center, Critical Care Medicine and
Otolaryngology-Head & Neck Surgery). Six of them are
municipal research institutes (including Tianjin Organ
Transplant Institute, Tianjin Emergency Medicine Institute,
Tianjin Otorhinolaryngology Institute, Tianjin Medical Imaging
Institute, Tianjin Thrombosis and Homeostasis Institute and
Tianjin Hospital System Engineering Institute). The hospital has
a key critical care medicine laboratory, affiliated with the
Ministry of Health of China and a clinical medicine post-
doctoral workstation. Annually the hospital has more than
2,000,000 outpatients and 50,000 discharged patients. It has a
strong technical force of more than 2500 professionals
Tianjin Beichen No.1 Hospital
The hospital insists on taking discipline construction as the
core, technological progress as the motive force, standardized
management as the guarantee, building a modern general
hospital with Chinese medicine as the main, integrated Chinese
and Western medicine, medical treatment as the driving force
and comprehensive development of medical education and
research. At present, the specialized subject system of the
hospital is becoming more and more mature, and it is the
national base for the continuation of traditional Chinese
medicine. Pharmacokinetics Laboratory accredited by 17025;
the first one in Tianjin and the third one in China accredited by
the ethical review committee of Chinese hospitals; and the
research center of difficult diseases of Tianjin University of

5. Traditional Chinese Medicine
Tianjin Hospital
Tianjin Hospital is a combination of Tianjin Hospital and
Tianhe Hospital. On the basis of maintaining the advantages and
characteristics of the two hospitals, Tianjin Hospital and Tianhe
Hospital have realized complementary advantages and formed a
series of disciplines featuring orthopaedics, trauma first aid,
vascular surgery, geriatrics and rehabilitation medicine.
Research, rehabilitation, prevention and health care as a whole,
the comprehensive strength of the country's leading level, a
large-scale modern comprehensive hospital and regional
medical centers.
The Company - “The Organization”
“The Organization” – Beichen Beimen Hospital is a military to
civilian hospital, founded in August 1988. In 1998, it was
transferred to the Tianjin Beichen District Health Bureau for
management according to the relevant documents of the three
headquarters. In 1999, it was upgraded to Beimen Hospital. The
Beimen Hospital belongs to the Affiliated Hospital of the
Research Institute. In addition to this, there are the National
Chiropractic Technology Continuing Education Base, the New
Age Calligraphy Institute, and the Tianmen Sword Art Troupe.
“The Organization” has 350 employees and 70 technical
departments. The daily outpatient service is more than 3000.
The patients are distributed in 18 districts and counties of
Tianjin, 30 provinces and autonomous regions in China and
more than 10 countries and regions.
“The Organization” adheres to the concept of independent
innovation, initiative innovation and omni-directional
innovation, and strives to explore a third way between private
and public hospitals, that is, large collective, public welfare.
“The Organization” focus on providing better medical services
to patients and providing more authoritative help to patients. At
the same time, “The Organization” hope to introduce more
talents to different studies, so as to bring benefits to
patients.SWOT AnalysisThe following is a SWOT analysis of

6. “The Organization”:
Strengths
· Flexible mechanism
· The charges are relatively low.
· Pay attention to service.
Weaknesses
· The hardware facilities are not as good as public hospitals.
· Medical business management is not standardized.
· Imperfect internal governance structure
· Lack of talents, the overall structure of human resources is
unreasonable.
Opportunities
· The cost of public hospitals is too high, so that many wage
earners may turn to private hospitals.
· People hope for hospital to become more professional because
of their needs for specialized hospital.
· Policy opportunities
Treats
· Threats to medical disputes
· Competition among private hospitals will become increasingly
fierce
· Credibility of private hospital
Project Implementation Strategy
Here will list a few strategies and for the whole project, it
will use the agile mythologies in “The Organization”.
· Visualize the plan -- To build a clear planning for the project
and show all the deadline and duration for each steps and
process.
· Ensure everyone on the same page -- Collaborate with project
managers and share the plan with the entire team, there will
minimal confusion about who’s working on what and when.
· Implement while keeping an eye on the metrics -- Once the

7. project plan its scope and objectives accordingly, it can start the
implementation phase. Theoretically, since you have agreed on
the scope of the project and if something doesn't work properly,
you have a basic backup plan, the only thing left is to
effectively implement your plan and process. As a manager, you
should pay attention to something.
· Keeping an eye on the quality -- It is not enough to complete
projects on time and budget. You need to ensure that you can
provide high quality products in other areas. Quality means
making sure that you build what you say and do it as efficiently
as possible. This means not making too many mistakes, always
keeping your project expected.
· Change control – When the manager find a problem, can't just
make a change, because it can be too expensive or take too long
to do. Here will need to understand how it affects triple
constraints (time, cost, scope) and how it affects project quality.
Then must find out whether it is worth changing. If the manager
assesses the impact of the change and find that it does not affect
the project triple constraints, you can make the change without
change control. Change control is a set of processes that allow
the manager to make changes in an organized way.Conclusion
By understanding the situation of the healthcare industry and
the analysis of Beichen Beimen Hospital, it can give us a good
view of the project, what should be change and what should be
add into their website and what the project can help the
hospital.
To develop the online healthcare service website for Beichen
Beimen Hospital is a huge project to finish in a short time but
will provide a demo for the sponsor. “The organization” already
has a good reputation in the area and has a lot of customer to
visit, but after the project finished and installed success, the
traffic to the website will increase 10% in 2 months, and at least
20% of them will not need meet with doctor in the hospital. At
the same time the conversion rate of the website visitor will
reach to 50% within 3 months.
· In this project, it is most important for the group to choose a

8. right application to develop their web, also the manager need
have enough technical knowledge to build and design the
website.
· The management should be fully aligned with the agile
methodologies and the relevant stakeholders should trained on
agile, which can make the project goes well.
· To communicate with customers’ need is also important for
this project, only understanding all need of the customer, the
management team can build more attractive website for
customers.
· In the process of building the website, here might have some
changes, which customer want to, through the agile
methodologies, it will be easier to stay on the core thought of
the project. And they also can help to govern all the changes are
right or not.
· Finally, to make sure everything can be going well on the
website, it is necessary to getting help from the programming
service, which can provide a high-quality website for the
Beichen Beimen Hospital.
Forthis week's project, Gerry has asked you to consider two
mutually exclusive investments and incorporate risk
considerations into the process of evaluation.
The Cosmo K Manufacturing Group is considering the addition
of a new smelting machine or a new paving machine. The two
investments are mutually exclusive; if one is selected, the other
is rejected. The annual cash flows after taxes and the effects of
depreciation, which begin one year from project start, and their
respective probabilities are given below:
Smelting Machine
Paving Machine
Probability
Net Cash Flows per Year
Probability
Net Cash Flows per Year
0.2

9. $14,100.00
0.2
$2,000.00
0.5
$16,000.00
0.5
$16,000.00
0.2
$17,000.00
0.2
$22,000.00
0.1
$20,000.00
0.1
$33,000.00
Each project has an expected life of 4 years and will cost
$45,000. The riskier project will be evaluated at the company's
WACC plus 3%, and the less risky project will be evaluated at
the company's WACC. Cosmo K has the following capital
structure:
Debt:
30%
Preferred stock:
16%
Common stock:
54%
This capital structure is current and consistent with the
company's objectives and so will be used to raise any new
funds. All new debt will be raised using long-term bonds, with
no short-term debt being used for the new project. New bonds
will have a coupon rate of 13%. The company's common stock
is currently selling for $65 per share, paid a dividend of $4.25

10. last year, and has an expected growth rate of 6% indefinitely.
There will be no floatation costs on new common stock.
Preferred stock can be sold for $90 per share and pays a
dividend of $10, with a floatation cost of $2 per share.
Currently, the market risk premium is 5% and the risk-free rate
is 8%. Cosmo K's beta coefficient is currently 1.23 and is
expected to be consistent for the foreseeable future. The tax rate
is expected to be 40% for the next decade.
Tasks:
Answer the following questions:
· What is the component cost of capital for the company?
Calculate using the CAPM.
· What is the company's WACC?
· What are the expected cash flows for the investments?
· What is the standard deviation for each investment?
· What is the coefficient of variation for each investment?
· Given the data above, which investment has the higher risk?
· What is the expected net present value (NPV) for each
investment?
· What is the internal rate of return (IRR) of the investments?
· According to the decision rules for the NPV and those for the
IRR, is there an acceptable project? Explain your answer.
· Is there a conflict between the two decision methods? If so,
what would you use to recommend a project?
Submission Details:
· Show the data used and the calculations for each question in a
Microsoft Excel sheet and the analysis in a Microsoft Word
document.
Submission Details:
· Show the data used and the calculations for each question in a
Microsoft Excel sheet and the analysis in a Microsoft Word
document.
1. The Company Name:

11. Tianjin Beichen Beimen Hospital2. The location
Tianjin Beichen Beimen Hospital is 253 Jingjin Road, Beichen,
Tianjin, China.3. Name and role of your proposed project
sponsor
Name of proposed project sponsor: Sheng Zhao
Role: IT department director 4. Sponsor’s location
Tianjin Beichen, China5. Description of the client’s Business:
Tianjin Beichen Beimen Hospital is a hospital focus on
traditional Chinese medicine and part of western medicine.6.
Goal for the project
The goal of the project is help Beichen Beimen Hospital to
build a whole website to show hospital news, doctors
information, tips for common diseases, appointment system, and
a doctor-patient communication system.
Currently they don’t have their own website to show all the
information online, people can only find the address, and phone
number of the hospital. It makes all the patients must go to
hospital to make sure if the doctor available and then pick a
number to wait the doctor. And they can not make appointment
for future days, which is not convenience and waste time, they
might need to wait a long time in the hospital after pick the
number. According to talk with client, there are almost 1.3
thousand patients come to the hospital per day, but almost 40%
patients need to wait more than 3 hours to meet with the
doctors, and almost 5% patients cannot meet with doctor before
the doctor off work even they already pick a number.
For those patients need to wait a long time or even can not meet
with the doctors, they might not have every serious symptom,
only need to make sure what kind of disease they have, what
they need to notice, and what kind of medical, which is not

12. prescription, they need to take. For these topics it might only
need a few minutes to meet with the doctor, but the situation
makes them must wait a long time, which is absolutely waste
time. 7. Project business benefit of the project
As we mentioned in gold of project that the Beichen Beimen
Hospital has a lot of patients a day, it already exceeds the
capacity. Since they can not expand their hospital in a short
time, and need to solve the patients’ problem efficiently, to
build their own website and the patient-doctor system. Here are
several advantages for the hospital after finishing the project.
First, the website can show all usefull information of the
hospital, patients can clear to know which doctor they want and
save more time for both hospital and patients. Patients don’t
need to come to hospital to make appointment or pick a number,
on other hand, everyday in the hospital will not overcrowding.
Second, since here will have the doctor-patients system, this is
a new technology for hospital all over in China. Patients might
attract by this function, which can convince for themselves.
Patients increase, which means profit increase. The system will
need professional doctors to answer patients’ questions online.
Although arranging the system, the hospital will need to
employee more doctors to do this work, the hospital can have a
good reputation in the industrial.
Last but not least, since the doctor-patient system will have
webcam, the doctor can through the webcam help the patients to
deal with some emergence problem and provide more time for
ambulance to rescue.8. Brief Description
The project intends to build a system that the doctors, from
Beichen Beimen Hospital, can chat and answer some questions
online, it will not only can save time for doctor but also the
patients. During chat doctors can make decision if the patients
need to come to hospital to have a further examination. If yes,
then the patients basic the doctor’s information and office hour
to make online appointments and come to hospital at the exact

13. time, no need to wait a long time, instead of coming to hospital
in the early morning to pick a number and wait a long time to
meet with doctors.9. Your relationship to the client
Business unit: IT department
Business benefitting from the project: Tianjin Beichen Beimen
Hospital
This is an unpaid project to help the company build a website,
which can convince both doctors and patients.
10. Project objectives and metrics for measuring the project
success
Objectives:
i. Building the whole website for Beichen Beimen Hospital to
save time for both doctors and patients and make each
appointment more efficiently.
ii. After launching the website, Beichen Beimen Hospital will
not be overcrowding than before, and each patient will have
enough time to talk with doctors.
iii. Traffic to the website will increase 10% in 2 months, and at
least 20% of them will not need meet with doctor in the
hospital.
iv. The conversion rate of the website visitor will reach to 50%
within 3 months
Metrics:
i. Conversion rate = number of visitors who use the doctor-
patients system and appointment system/ Total number of
visitors
ii. Numbers of website visitors, hospital visitors, doctor-
patients system users and appointment system user will count
after the website launching.
iii. Each patient problem solving case also will be store and
count after website launching.11. Role in the project
As the person conducting the project, I decide to make research
to find if there have similar type website for hospital, having

14. basic knowledge for the project and make demo for client, and
ask for their advice for the whole project. It is important to
know the client’s real needs and help them to solve the
problems and then produce a satisfied product for client.
As the project manager for this project, I will follow our
schedule and communicate with client if there need on time. 12.
Proposed duration: 265h
Actives
Duration
Set meet with the IT department director to communicate with
the detail of the project and know their real requirements of the
website
25h
Having researches on other hospital website and find if there
have similar function on others website and give the client the
concept and a brief descript of the website.
45h
Use the Bootstrap to build the website and make the
adjustments.
50h
Basic the hospital information to build the home page for
hospital.
35h
Build the page to display the doctors’ information.
20h
Build the online webcam chat system on the website.
40h
Build the appointment system on the website.
25h
Build the feedback page for customers on the website.
25h
13. Resources required
Software: WIX.com
Image

15. 14. Anticipated learning outcomes
Since the project is design and built a website for a hospital,
there might need some Java Script language knowledge to finish
the whole project, at the same time, leaning some basic medical
knowledge also necessary, which can help me in the hospital
and medical information built up.15. Anticipated findings
Although my client didn’t have an actual deadline for this
project, but still need to make everything done and good as soon
as possible. I need to have a good plan for the project and try to
control the time and money spend. Also, the final project may
be different with the original idea, but it acceptable. So, for my
project, the most important thing is follow the time schedule
and make an ideal final product for client.