Suburban System Rural Hospital Case Summary

Kenichi Ohmae quoted: strategy is analysis plus intellectual elasticity so that advantageous responses can be made to changing situations. Suburban System Rural Hospital failed to neutralize vulnerabilities and to modify the strategic plan to meet continuous challenges of the facility to accomplish success. Therefore, the deteriorated hospital is languishing and desperately needing a capital injection to modernize the obsolete infrastructure. Even though it is located in the suburbs of a rapid growth and develop area unexploded by competitors. However, the most critical decision faced by the committee is whether to invest $70 to $100 million in improvements for the next 10 years or to consider a short term sale if funds do not become available. In fact, I consider the building of a partnership by taking advantage of investors’ interests in the area to fulfill Suburban’s capital needs is the most beneficial option. In such case, the timeframe to find the capital partner is 6 months.
Facilitation of strategic thought happens at the level of one-on-one coaching, small group meetings, and the joining of two small groups as in the case of building strategic alliances (http://www.changemakingsystems.com/strategic_thinking.html). However, the committee decided that the maintenance strategy was not the appropriate course of action in this case. Although the most desirable scenario is to construct a new and more accessible site, they also know about the unavailability of capital issue. Since the committee is running out of options to pursue, they recommend a