Analyzing Managerial Decisions: Interwest Healthcare Corp.
Case Study - Analyzing Managerial Decisions: Interwest Healthcare Corp.
1. What are the potential sources of the problem?
Interwest Healthcare Corp has 10 hospitals. Each hospital is responsible for maintaining accurate records in the firm's management information system. This system is used to generate management reports as well as reports that are submitted to the federal government for grant programs. The accuracy of the data entered into the system is critical so the reports generated will be correct so management can make accurate decisions. The company is experiencing problems in the accuracy of the information input into the system. A potential source of the problem could be the system itself. If the people entering data do not fully understand the
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What impact will the prospect of deprivatization have on investment by managers of privatized firms? Deprivatization occurs when ownership is transferred from the private sector to the public sector. So if a private firm reverts back to government ownership, the managers will have less control over the company. They many even lose their jobs. Therefore, any investments made by the company could possibly be lost or the investment strategy may change under the new ownership. Any planned additional investments may become to risky to make, as the future of the company and who will be managing the company are uncertain.
2. What effect will deprivatization have on foreign investment in Russia? Since many of the owners of the private companies in Russia, are foreign, foreign investment will decrease as Russia will now own the companies. Foreign investment will also decrease as foreign investors will no longer want to risk investing in private Russian companies as they fear the company will be deprivatized in the future.
3. Do you think that mass deprivatization is in the long-run best interests of
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