Abbott Hospital Case Essay Example | Topics and Well Written Essays - 2250 words

Abbott Hospital Case - Essay Example A closer analysis of the various facts and figures presented in the study suggests that all the stakeholders were either not informed about the change or their feedback was not incorporated effectively. The fact that Sister Mary Theresa controlled almost all aspects of the pre-acquisition period suggests that the communication was not readily disseminated at all levels. Besides, the communication was relatively one-way with others just following the suit rather than raising the voice against the proposed acquisition. A key strategic issue in this was the lack of the effective human capital i.e. the resistance from the medical community and the doctors/staff working at the hospitals. Since the overall size of medical community at local level was relatively small therefore this can be a significant issue provided a limited availability of trained and skilled medical staff at the local level. It is also critical to note that the Mt. Mercy there is a clear lack of systems requirements as most of the orders and the strategic vision flows from the single source. Having a decentralized organizational structure can actually help an organization to share the responsibility while at the same time have more feedback before any decision is made. A key strategic issue while dealing with the change was that of creating a cohesive culture for both the hospitals. Due to relatively different strategies being adapted at these two hospitals, significant employee motivation issues emerged causing a decline in the revenue and profitability for the firm. It is evident that after the acquisition, the employees of the Abbott hospital are not considering themselves as part of the new organization. In order to achieve the economies of scale and to improve the efficiencies, it is critical that the organization must focus on developing a certain degree of