Market Entry Strategy: The organization purchases new structures or creates an alliance with another organization.
- Identify the title of the case study you are addressing at the top of your discussion post.
- Develop a strategic alternative for the case study based on your assigned topic.
- If you are assigned market entry strategy, you will recommend expanding through purchasing new buildings that will offer additional services or identify another type of health care organization with which the HSO from the case study can enter an alliance, supported with your reasoning.
- Describe the possible benefits as well as challenges that may occur with your alternative strategy.
- 300 words
- APA Style
Avalon Organization’s Strategic Issues
By Lynne Trevisan Avalon
Avalon Organization owns General Hospital, a 200-bed nonprofit hospital in a medium-sized community, and 30 off-site physician practices across the community, including 10 walk-in clinics, 10 general practitioner offices, and 10 offices with specialty physicians. Avalon Organization’s strategic plan identified an opportunity for growth in the obstetrics and gynecology (ob-gyn) segment of care as well as in geriatric services. Avalon added specialist physicians in these areas to two existing offices, but expanding these services failed to bring in the expected number of patients and gross income. An internal review of services and patient surveys revealed that the offices’ locations and building conditions were areas of concern. Patients using both services indicated the offices were farther than they wanted to travel for care. Patients also noted that the buildings’ older, worn carpeting and furniture, as well as the evident deferred maintenance, gave them a negative first impression. However, the patient surveys suggested that doctors, nurses, and office staff were professional and caring— although several of the patient surveys implied that there were tense relations among some of the office employees. Avalon Organization also surveyed the employees at each location. A review of those survey responses revealed internal issues at each location. The work hours were long and demanding, and the employees complained that they could earn better wages at other regional medical organizations. The employees also indicated that there were communication challenges and a lack of respect for their work. Avalon decided to close the two offices that did not meet income expectations and lay off 20 employees from these offices. The remaining employees were transferred to another off-site practice or to the hospital.
Questions for Critical Thinking and Engagement
1. What steps should Avalon Organization have followed when determining where to add specialty physicians for ob-gyn and geriatric patients?
2. The patient surveys indicated the offices needed repairs and updating, which would be costly. Another option would be to move the offices to a different location in the community, but doing so would require building out an existing vacant structure or a new medical structure. If you were responsible for this decision, what would you choose? What is your reasoning?
3. Who is responsible for the communication challenges and lack of respect among the professionals at each office?