Pies in the Sky Case Study Essay

766 Words Mar 19th, 2016 4 Pages
Kenneth Holcomb
1/26/16

“Battling Pies in the Sky” In the case “Pies in the Sky” Katherine White is the Director of Marketing at Terrace Hospital, a 125-bed, not-for-profit rural hospital providing general medical and surgical services. Terrace hospital is located in Lexington, a rural community which has a population of 14,682. Katherine works under Mr. Peter Brooks, the Administrator. The problem is Mr. Brooks routinely gets overly excited about his ideas and moves forward with his ideas without proper consultation from his team. Peter’s ideas always produce adverse consequences, but the damage is usually minimal. This time, though, Katherine and her fellow senior managers believe Mr. Brooks will cause real financial harm to
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The first solution in this case is clearly that Katherine and her fellow senior managers do as Peter states and develop the marketing communications material for the grand opening of the Terrace Hospital Fairmont clinic in three months. They can decide to adhere to what Peter states and assist him with what needs to be done to open the facility. There are not very many advantages to this situation. One advantage is that Terrace can expand its target market. The other advantage—if the Fairmont facility is successful—is that with the fast growth of Fairmont, a big patient base may develop for Terrace in that area, and that would lead to referrals from the Fairmont clinic to Terrace hospital in Lexington. On the other hand, I see a number of disadvantages. Firstly, the grand opening is in 3 months. They have opened up other clinics practically over-night, but those were in rural areas with little to no competition. Terrace is trying to expand into the most competitive market in the region. Although they would be expanding into a new target market, the target market is already well taken care of by larger, wealthier medical establishments with immense operating budgets which dwarf that of Terrace’s. Furthermore, Lexington is out of the transit loop connecting the nearby urban and suburban areas, so it would be inconvenient for the citizens utilizing the Terrace location in Fairmont to go to Lexington for more complex treatments. It

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