Reference no: EM132296872

You have been retained by a hospital in a growing mid-western town of 250,000. Currently the hospital is the only general hospital in the metropolitan area, but there is some indication that a large hospital chain is planning to enter the area. Your client is concerned that the large chain will argue that it can supply better service at lower costs. In your research, you have determined that the potential competitor has a classic functional organizational design. Your client’s hospital is well-respected in the community and has received recognition at the national level, including notable awards for quality patient care from the American Hospital Association. Currently your client’s hospital is, like the prospective competitor, almost totally based on functional organizational design. Prepare a proposal to present to the hospital demonstrating your belief that a more varied organizational design will provide a competitive advantage.