Introduction
The term chemical dependency refers to a psychological and physiological process that entails the use of alcohol and other drugs in order to achieve the desired effect and feeling. Patients with chemical dependency exhibit such symptoms as addiction whereby the need for the drug re-use does not go away even if there use causes side effects. Chemical dependency is largely influenced by genetic, psychosocial and environmental factors (Carroll, 2000).
The disease is progressive in nature and sometimes it can lead to death. Chemical dependency can be managed through behavioral therapy whereby a patient is counseled with the intention of ending this condition. Behavioral therapy can be either individualized or undertaken in a group. This research gives the benefits as well as shortcomings of individualized and group therapy about treatment of chemical dependency. The preferred method of treating this condition will also be given.
Individual approach
Individual therapy involves concentration of one individual at a time for the management chemical dependency. In individual approach, one psychotherapist meets with a client for a specified period within a given timeframe whereby the therapists counsels the patient with the intention of changing his behavior (Carroll, 2000). Patients have the therapist’s full attention during the session.
Confidentiality is highly emphasized in the individualized model thereby helping the patient feel more secure and safe. The individual format is helpful as a patient engages in multiple sessions and is therefore able to identify key issues that are likely to be the cause of chemical dependency. This evaluation may not occur in group therapy (Carroll, 2000).
Patients who are reserved and self-centered benefit highly from individualized therapy because of confidentiality. Additionally, individualized treatment is also preferred as the therapist is able to fully concentrate on a particular patient’s problems and address them in totality unlike in group therapy where individual problems may fail to be addressed fully.
Group therapy
Group therapy refers to using a group of people with or without similar medical presentation in the treatment of particular illnesses. Group therapy also is a support group where individuals with similar medical condition come together and share their experiences and challenges with the disease process (Capuzzi & Staufer, 2008). In group therapy, the therapist can also include individuals who have already gone through the same problem to act like a source for inspiration for the starters. In the use of group therapy, the therapist hopes to instill in the patients the fact that human beings social and should therefore be collectively involved in devising solutions to problems that they confront (Capuzzi & Staufer, 2008).
The fact that patients discover there are several people suffering from a particular condition makes it easy for them to embrace the condition and devise solutions amicably. This makes group therapy in drug and chemical dependency a strong and powerful therapeutic tool (Engs, 1990). The group therapy lays its focus on peer support. Discussion group and exchange of ideas from peers, social skills and reduction of feeling of isolation and gives hope to participants.
Additionally, group therapy offers a psycho- education, cognitive behavior modification to patients. Such strategies aid in the modification of one’s behavior and equip the patient with knowledge that helps the patient embrace a better lifestyle free from chemical dependency (Capuzzi & Staufer, 2008). Group therapies encompass various mechanisms with the intention of developing the patient’s skills. For instance, skills development groups work to develop the skills that are necessary for the individual to break off the bonds of addictions (Bestha & Madaan, 2006). Cognitive behavioral groups assist a patient change the thinking pattern in order to achieve ways to stop addictions (Capuzzi & Staufer, 2008).
Group therapy also makes it possible for patients to join support groups where they are motivated to stop the addictions from individuals who were earlier on involved in the vice. Psychotherapy groups are also incorporated in group therapy with the intention of molding a patient’s approach to life. These groups assist a patient to rethink about their pastas well as on the future after rehabilitation. It enables them think of the past and events that lead to addiction.
Group therapy enables patients to give their personal submission on how to go about with life challenges through provision of positive support as well as pressure. According to Capuzzi & Staufer (2008), group therapy, from the very beginning, elicits a commitment by all the group members to attend and to recognize that failure to attend, to be on time, and to treat group time as special disappoints the group and reduces its effectiveness.
Group therapy ends the sense of isolation that people with substance abuse tend to have. This makes an individual feel he is not the only one, this will aid quick recovery and enhances the feeling of security and enables the individuals to open up and share their challenges. It enables individuals to learn on how to cope with their problems through experiences of other people (Bestha & Madaan, 2006).
They see other go over it while in the rehabilitation center hence giving them hope. In group therapy there is room for feedback thus the therapist is able to modify faulty concepts as well as assess the level of recovery of an individual (Capuzzi & Staufer, 2008). Groups also help one another to sharpen social skills that individual needs in coping with the challenges of life.
According to Bestha & Madaan, (2006) groups can confront an individual who reverts to drug abuse, especially because of the common bond that has already been established between the group members. From group work, a single treatment provides solution to almost all members and the society at large (Capuzzi & Staufer, 2008). For instance, treatment of five individuals will make five people who will talk against the problem out in the community unlike the individual approach. It is also a source of hope because if an individual has seen many people go through the process, he also develops energy and inspiration to keep him fighting.
Conclusion
Individualized and group therapies achieve different responses during the treatment of chemical therapy. However, group therapy has more advantages in the management of chemical dependency especially because patients understand other people are struggling with the condition and want to end the dependency (Bestha & Madaan, 2006). Management by individualized therapy results to patients experiencing sense of insecurity, loneliness, and the feeling of being unwanted and may therefore not fully cooperate with the therapist. Group therapy helps fasten the recovery of the patients from the rehabilitation center as compared to individual therapy since it encourages socialization and sharing problems.
References
Bestha, D. & Madaan, S. (2006). Textbook of Psychiatry/Psychotherapy for Medical Students New York, U.S.A: Sage publishers.
Capuzzi, D. & Staufer, M. (2008). Foundations of Addictions counseling. New York, U.S.A: Foundations of Addictions Counseling.
Carroll, K. (2000). A Cognitive-behavioral approach: Treating cocaine addiction. London, UK: National Institutes of Health.
Engs, R. (1990). Controversies in the Addiction’s Field. New York, U.S.A: Kendall Hunt Pub. Company.
Health Care Medical Center: Budgeting And Capital Projects
Introduction
Two proposals of investments by Health Care Medical Center are different in nature not only in their functioning but also so far as initial outlay is concerned. Three methods used for evaluating the proposals and for taking a decision between the two investments are breakeven point method, payback period method, and accounting rate of return. The calculations used for evaluating each method are made in the first section to discuss breakeven method.
Calculation of Breakeven point
Break even analysis is also called cost- volume- profit analysis. This method is used to find out the level of operations that are required to meet all operating expenses. This method is also used to find out profitability that is associated with different levels of revenue or sales. The breakeven level is the stage level of sales covers all necessary operating expenses. In other words it is a no profit no loss situation. For this purpose the expenses or costs are divided into two, one as variable cost and the other as fixed expenses. Variable costs vary with the sales and on the other hand fixed expenses remain static for a period of time or upto a stage of sales or production.
“Breakeven point is one of the most commonly used concepts of financial analysis for entrepreneurial decisions.”(Satya Prakash Singh and Jayant V Deshpande). Break even is the point where the contribution from revenue after meeting variable cost is exactly equal to the fixed cost of the enterprise during that period or project under consideration. The above chart shows that Health Care Medical Center is not breaking even in the first year under both the proposals. In the first proposal contributions after meeting variable costs from 937.5 patients and in the second proposal from 1333.33 patients meet the fixed costs during the second year, and this happens only in the second year of operation under both the proposals.
Identification of payback period
“The Payback period is the exact amount of time required for the firm to recover its initial investment in a project as calculated from cash inflows. In case of an annuity, the payback period can be found by dividing the initial investment by annual cash inflows. For a mixed stream of cash inflows, the yearly cash inflows must be accumulated until the initial investment is recovered.” (Lawrence J Gitman)
For the purpose of making a decision about acceptance or rejection of investment projects, the criteria to be followed under payback period method is as under:
- Accept the proposal if the payback period from that proposal is less than maximum acceptable payback period. The decision about maximum acceptable period is the decision of the management.
- The proposal will be rejected if payback period from the particular proposal is greater than the maximum acceptable payback period.
The initial investment in proposal # 1 is $15000 and that is being recovered from the cash inflow from first year revenue of $60000, though the net cash flow is a negative figure. Payback period is not concerned with net cash inflow but with gross inflow from sales or revenue.
In case of Proposal # 2, the initial investment is $50000 and that is also being recovered from revenue of $950000 in the first year. Comparing the two proposals from the payback period point of view, the initial investment in proposal # 1 is lower than initial investment in proposal # 2, and therefore proposal # 1 is preferable as its investment will be recovered earlier than that of proposal # 2 in the very first year.
Profitability
Accounting rate of return method is used to evaluate the profitability of both the proposals over a period of four years. The calculations made in the chart above are based on the average profits earned under each proposal during the period of four years.
It may be noted that proposal # 1 as well as proposal # 2 show losses in the first year and only 2nd year onwards these proposals are profitable. The accounting rate of return calculated above shows that such rate of return under proposal #2 is greater than that of proposal # 1. This accounting rate of return is calculated on the basis of average profit for all the years. Though grossly proposal #1 will earn $100000 in four years and proposal # 2 will earn $750000 but accounting rate of return of return is also greater in proposal # 2. Under some quarters it is believed that accounting rate of is not a sophisticated technique. The reason is that it is calculated by taking into account the average profits of the project, and also the accounting rate of return does not take into consideration the cash flows.
Conclusion
There is some similarity in proposals so far as breakeven point and payback period is concerned. But from the point of view of accounting rate of return the proposals are vastly different. Under each method proposals are evaluated using different concepts that are not comparable. But a decision is required taking into consideration the totality of the proposals.
From three methods of selecting a proposal discussed above, it is clear that proposal #2 clearly stands out even though break even is achieved in the first year itself under both proposals and also the payback period is first year for both proposals. The accounting rate of return in proposal # 2 is 375% as compared to accounting rate of return of 166.67% in proposal # 1 in the total period of four years. This big difference in accounting rate has made the big difference in decision making, even though a decision based on net present value of cash flows is always preferable.
Reference
Satya Prakash Singh and Jayant V Deshpande, Break Even Point, Economic and Political Weekly, Vol 17, No. 48 (1982) Web.
Lawrence J Gitman, Principles of Managerial Finance, ninth edition, Capital Budgeting Techniques, Pearson Education, page 377
The Diversification Strategy Of Disney
Summary
In the current reality in which business has to work, the exceptional dynamics and turbulence of the external environment require a new type of thinking – not linear and one-sided, but flexible, rational, and critical. Making decisions, and pondering problematic situations, managers unconsciously start from the information known to them, especially from the one that is imposed on them or which they have learned recently. This arises from the fact that people tend to have certain dogmas, and beliefs in order to limit their perception and better recognize the surrounding circumstances. However, most of the stereotypes, norms, habits, and beliefs that exist in management are no longer progressive but fill the manager’s consciousness, they become negative boundaries of thinking, implicitly hindering the adoption of high-quality and effective decisions, as well as the perception of new management tools and implementation creativity. Moreover, the emergence of new problems or the transformation of unresolved ones into chronic ones contributes to the strengthening of the emerged boundaries.
Obviously, it is necessary to clearly distinguish and delineate traditions that require respect and preservation from those tools and methods that are important to constantly update, in view of changes in the management object and consumer requirements. Each change should be viewed as a new opportunity. In this context, it should be noted that, when making a decision, it is necessary to identify why the manager chose this particular solution, based on what motives and conclusions a specific alternative was chosen, in order to avoid the “pattern traps.”
Disney is one of the examples of successful critical thinking for making strategic management decisions. The business of the company is widely diversified, both in terms of geography and business segments. In addition to extensive growth, the Walt Disney Company is increasing efficiency, which translates into continuous growth in profitability. The structure includes various companies, including ABC-International Television, ESPN, Lucasfilm, MARVEL, Pixar, and others. With the acquisition of Maker Studios, the largest network of YouTube channels, Walt Disney has access to the latest digital technologies and unique expertise to assess the interaction of modern users with the short video format. The new Disney + ad-free streaming service was launched in the United States on November 12, 2020, with plans to expand to every major global market.
From Disney’s Annual Report, it is evident that the company provides a wide range of channels for various categories of users, taking into account their diverse interests and needs – for example, Disney Junior for youngest kids, Disney XD for kids ages 6 to 11, a multimedia sports entertainment ESPN, Freeform (a channel targeted to viewers ages 18 to 34). Disney offers broadcasting, including “a domestic broadcast network, television production and distribution operations, and eight owned domestic television stations” (The Walt Disney Company, 2020, p.4). The concentration of efforts and assets in one area helps any company to take a strong position in it. However, if the opportunities for growth in this area are exhausted, diversification of production will be required – a transition to diversified production with various types of products, as well as access to various markets. Disney’s unrelated diversification reflects a financial approach – entering new markets with the goal of increasing the market value of the company’s shares. Companies operating in any area of business in different markets are acquired. The selection criterion is their perceived profitability, and strategic fit does not play an important role. This allows for reducing the risks of portfolio management and optimizing the portfolio matrix. At the same time, Disney applies critical thinking to the analysis of the need to acquire or create specific business units in different segments, conducting a comprehensive assessment of the relevant situation, dynamics, prospects, interweaving of interests of stakeholders, etc., including a global scale. In its report, the company provides a short but succinct explanation of the motives for its activities in different segments, as well as assessments of competition in the segments and risks associated with internal and external factors and agents of influence. The dynamics of the financial and balance sheet indicators given in the report indicate the success of the diversification strategy chosen by the company.
References
The Walt Disney Company. (2020). The fiscal year 2019 annual financial report. Web.
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