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Atlantic Health Center Case Study

3259 words - 13 pages

To: ManagementAtlantic Health CenterAlthough the rapid growth of the Atlantic Health Center (AHC) has resulted in a variety of opportunities, numerous issues have emerged that clearly indicate that management must take immediate actions to ensure the long term sustainability and profitability of the AHC are not compromised.This report will not only highlight the main issues facing the AHC, it will propose a detailed strategic plan that will be centered on a new vision and mission statement. The future of the restaurant and bar will also be examined, as will a new AHC management structure and diagnostic control system. Critical performance variables, profit plans and compensation and incentive structures will also be outlined. These proposals will all be congruent with the new mission and as a result, the AHC will be strategically aligned and thus more effective in balancing its profit, growth and control objectives.For further inquiries and implementation strategies please contact me at your convenience.Sincerely,In examining the Atlantic Health Center (AHC) and speaking with Jim Cormier regarding his concerns about the expansion and direction the business is heading, as well as its viability in the long run, it has became evident through the various analysis that the AHC can have a positive impact both on the Nova Scotia community and its bottom line, if it implements a variety of the initiatives outlined below.This report will first examine the situation analysis of the AHC and provide a summary of both the internal strengths and weaknesses of AHC, as well as its external opportunities and threats. This analysis will highlight the various issues currently impeding the AHC's growth and profitability. The report will than examine the actions required for the AHC to mitigate both its weaknesses and threats and maximize its strengths, core competencies and opportunities to ensure its long term success. These actions will involve implementing a detailed strategic plan that will be centered on the new mission and vision. A new AHC management structure and diagnostic control system will also be outlined that clearly highlights critical performance variables, profit plans and compensation and incentive structures that will all be strategically linked to the AHC's new mission.In analyzing the AHC's internal strengths it is evident that the AHC is headed in the right direction by both its management commitment to succeeding and by taking a holistic approach to its market. It offers a wide spectrum of services and has access to great industry information (IHRSA), including training seminars, videos and guides in which it is able to train its staff. However, the immediate threats that have to be addressed include an inappropriate mission statement and strategy, a poorly structured organization, and a variety of human resource issues, as well as the questionable expansion into the restaurant and bar industry. Transfer cost issues are also a concern, as...

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