Discuss pluses and minuses of each of the three structures

Assignment Help Managerial Economics

Reference no: EM13920762

The Hanson Clinic is a well-regarded medical center located in a semirural area in the Midwest. One of its specialty areas is treating rare forms of cancer. To support this activity Hanson wants to construct a new lab. The lab will require very specialized equipment, a specially designed building, and a skilled staff. The estimated cost of the equipment and building is $50 million.

The clinic is considering three possible organizational arrangements. The first is vertical integration. The second is outsourcing (where another company constructs the build- ing, purchases the equipment, and provides contractual services to the clinic). The third is for the clinic to purchase the equipment and building, and lease them to an independent operator (who would provide contractual services to the clinic).

Discuss the pluses and minuses of each of the three alternative structures. What factors do you think are most important in making this choice?

Reference no: EM13920762

Questions Cloud

State a prediction that could be tested via experiment : State a prediction from this hypothesis that could be tested via additional observation - State a prediction that could be tested via experiment and State a prediction that could be tested via the comparative method.

Frustrating aspects of contract management : One of the most frustrating aspects of contract management to customersclients is the length of time that it commonly takes to close out a project (from an administrative standpoint) after most or all of the contract scope of work has been complet..

Do you think that boswell is more likely to outsource : It also requires a relatively large lab for conducting tests of various types (e.g., MRIs, blood tests, and ultrasound tests). Do you think that Boswell is more likely to outsource its janitorial services or lab work? Explain.

Explain how managers can use delegation to manage the impact : Explain how managers can use delegation to manage the impact that these factors have on the four functions of management.

Discuss pluses and minuses of each of the three structures : Discuss the pluses and minuses of each of the three alternative structures. What factors do you think are most important in making this choice?

Customer account database : A business wants to share its customer account database with its trading partners and customers, while at the same time providing prospective buyers with access to marketing materials on its Web site.

Explaining the stamping department performance report : Preparing, for the manager of production control of a Mittal Steel plant, a cost comparison of two computerized manufacturing control systems. Interpreting variances on the University of Michigan's purchasing department's performance report.

Decision modeling-analysis class : Ajax is about to embark on a project involving the design, manufacture and introduction of a new microwave oven. The first three activities and the immediate predecessors are:

Availability of fishes for feeding purposes : Need to include what measurement, how long observation period etc. methods - The problems that occurred during the conduction of this experiment were the variable temperature conditions, which affected the frequency of Ospreys and also the availabi..

User Account

All Pages