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SOLVING A CASE
Case studies are often used to not only illustrate what a student has learned and retained in class, but also to provide students with valuable hands-on experience.
When analyzing a case study, you will have an opportunity to learn about the types of problems that many companies and industries encounter. You will also have an opportunity to analyze the steps other managers have taken to correct specific problems and concerns. This will put your problem solving skills to the test and allow you to engage in exciting discussions with classmates and professors.
How to Analyze a Case Study
If you want the case study analysis to be professional and accurate, you must have a clear understanding of the issues that the company or industry faced. Read the case thoroughly before you start. Feel free to take notes as you read and when you have finished, consider re-reading the case just to make sure you haven’t missed anything.
How to solve a case study??
A case study is description of an Enterprise, History and Environment Internal Operations. Case studies do not have full information, but enough information is provide to draw a conclusion. The objective of a case study is to enhance your ability to solve business problems, using a logical framework. The issues in a case are generally not unique to a specific person, firm, or industry, and they often deal with more than one retail strategy element. Sometimes, the material presented in a case may be in conflict.
In all case studies, you must analyze what is presented and state which specific actions best resolve major issues. These actions must reflect the information in the case and the environment facing the firm.
STEPS IN SOLVING A CASE STUDY
- Read the Case properly
- Prepare a List of the major opportunities before the company
- Identify the problem faced company
- Multiple solutions might be possible, so analyze all available course of action
- choose the best solution
- Tell how will you implement the solution
Tool that may help you in solving case studies:
Note the Important Points a
- Economic Conditions
- Internal Problems
- Strength –Sources of strength for the company, Cost, Skill, patents, Consumer Loyalty, etc.
- Weakness –Areas of Vulnerability for the Company
Keyword: Case study solving, Solve case study, Evaluation of case study, How to solve a case
CASE STUDY: COST-BENEFIT ANALYSIS FOR A NONPROFIT HOSPITAL CONSIDERING ADOPTING NEW TECHNOLOGY As a part of proposed health care reform, the federal government is encouraging hospitals to use new health information technology as a means to reduce health care costs and increase quality of services. You are the CFO of a nonprofit hospital and need to conduct a cost-benefit analysis of the idea to present to the board. Being well trained in economic evaluation, especially cost-benefit analysis, you have happily accepted the challenge of this task. You have collected some relevant information. You know that the new system will enable the hospital staff to make more timely diagnoses and interventions, will reduce medical errors, and will improve communication within the care team. The initial start-up cost for your hospital is estimated to be $10 million, which includes planning, purchasing of information systems (hardware and software), and staff training, among other things. You also estimate that the operating and maintenance cost of the new system will be about $1 million. After the system is implemented, the hospital is expected to benefit financially from cost savings and revenue enhancement. It is estimated that cash inflow will increase by $2.4 million. The information system will be obsolete in about ten years, and no residual value is expected. The improved quality of diagnosis and appropriate treatment will also have broader social and human consequences. Studies show that for hospitals similar in size to yours, the system has saved an average of two lives because of reduction of errors, plus a likely decrease in injuries and long-term disabilities to patients. Based on the information collected, and following the steps outlined above, you decide to study the matter from the perspectives of both the hospital financials and the larger social impact. In consultation with the CEO and other key personnel, you specify the current hospital status quo as the basis for comparison, which dictates that all costs and benefits are incremental from that of current practice of the organization. Working with your evaluation team, you identify key impacts, such as cost savings and increased revenue, to be included in the benefit accounting when studied from the hospital perspective. From the societal perspective, the benefit includes the lives saved. You search the literature and decide to use $7 million as the statistical value for a human life. You could borrow money, through municipal bond with the help of the local government, at the 4 percent real interest rate. You decide to use this as the discount rate in the analysis. You also decide to conduct a sensitivity analysis, in which you change the discount rate to 8 percent, in case you need to borrow from the financial markets directly. If the net present value of the analysis is positive at either discount rate, you will have more confidence of the robustness of the results. What do you find in your base case cost-benefit analysis—that is, from the hospital perspective and using 4 percent as the discount rate? Changing the discount rate to 8 percent, what is your conclusion in your sensitivity analysis? And what is the result if you conduct the cost-benefit analysis from the societal perspective under the 4 percent and the 8 percent discount scenarios? What is your recommendation to the CEO with regard to the adoption of the new system? It should be noted that this case is a simplified analysis of the very complex issue of hospital investment in adopting advanced health care information technology. For instance, there are many other costs and benefits that are not included in this study. We present this case here to give you practice in the step-by-step application of cost-benefit analysis in nonprofit organizations. The case is educational and illustrative in nature, and you are advised to delve deeper into other impacts of such a project on the hospital, the locality, and the society at large in the real application of this economic evaluation technique.
A., Weikart Lynne. Budgeting and Financial Management for Nonprofit Organizations (pp. 242-244). SAGE Publications. Kindle Edition.
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