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Transcription of this question: 3.Health Star (HS)Health Star (HS) is a private limited company providing management consultancy services forpublic sector organizations like hospitals. HS is well known for its creativity and for helpingcustomers achieve budget targets. HS’s consultants are all shareholders, receive high salariesand profit-related pay. HS also gives its consultants freedom and encouragement to beintrapreneurs. The consultants’ work performance is appraised on a monthly basis using formativeappraisal.Recently, several pressure groups have protested against the high fees charged by HS. “The highfees are outrageous!” said Elaine Hall in a local news report. “Public sector hospitals need to usetheir resources for patient care and not for employing expensive consultants.”In response to the pressure groups, HS is considering two options proposed by two seniorconsultants, Dan and Lauren:Option 1: Dan has suggested that HS should set up a charity to create educational servicesfor children with long-term health problems. The charity will be funded partly through donationsand partly through HS’s own profits. The charity, Health Star Education (HSE), will financequalified teachers to visit hospitals. HS’s consultants are also expected to volunteer to read tosick children.Option 2: Lauren has suggested that reducing the high fees should be the priority. Shesuggests that new, untested software could be developed by her project team to significantlyreduce the costs of treatment for patients. Consequently, HS could charge public sectorhospitals a lower fee.(a)(b)(c)(d)Describe one possible objective of a public health organization.Explain two characteristics of an intrapreneur at HS.Explain one advantage and one disadvantage for HS of using formative appraisal.Recommend which of Option 1 and Option 2 HS should implement.[2][10]

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