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New business venture strategy

The assistance needed below is in short form/bullet points.

Hello, I am hoping I can leverage an Expert's business acumen. As part of a reading assignment I am to consider a healthcare company (Company A) that is interested in working with an out of state home care company. Company A is seeking this new venture, where they would offer the home care service in their state as well -working with the other company.

Since company A is already in health care (multiple operational hospitals - Acute care and seniors care) just not home care (the other companies business). I need to evaluate what type of structure would best work for this venture.

The attachment explains further.

Can an Expert help me brainstorm and fill out the boxes and questions?

I need to explain ideally with literature review (Harvard, or case studies) how the choice in structure would improve efficiencies in operation.


Solution Preview

For the boxes you should see the attachment:
Step 1
If there is no change then the present organization will provide efficient service in home care service in another state. The reason is that Organization A has experience and will deliver efficient service. High efficiency is the benefit. Since, organization A will operate the new service the costs are likely to be high, and it will have full control over the quality of service. However, Organization A may not be able to leverage the experience and ability of the home care company. The risk is that home care company may not contribute much. In case of sub-contracting, Organization A will have low costs but will have little control over the quality of service. The pro is that sub-contracting can be used to get lower costs but the con is that the quality of service provided may be indifferent. The main benefit of subcontracting is low cost/high profit. However, the risk is that the reputation of Organization A may suffer and it may face liability. The pros of forming a joint venture is that ...

Solution Summary

This explanation provides you a comprehensive argument relating to New business venture strategy