Sample Case Essay example

959 Words Jan 13th, 2012 4 Pages
Introduction

SAMPLE CASE ‐ Instructor has added comments in brackets[] Good Hands Healthcare (GHH), a nursing home provider and a major player in the American healthcare industry, is at a crossroads: the company has been facing financial trouble in recent years and the board must decide whether the current founder and CEO, George Jackson, is fit to revive the company and what can be done to turn the precarious situation around.

External Analysis Environmental and industry opportunities for GHH include: • The increasing need for eldercare services due to increasing life expectancies and aging baby boomers • Rapid expansion and
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Keep Jackson (status quo) a. Pros: lowest cost (avoid severance package); avoid media scandal b. Cons: not bringing in a fresh perspective 2. Fire Jackson as CEO (promote from within) a. Pros: minimize risk of top management pushback; continuity in experience/strategy

b. Cons: top managers not necessarily best for the job; pushback from top management (friends of CEO); potential effect on company’s culture (pushback); loss of experience and guidance; expensive (severance package) 3. Fire Jackson as CEO

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