JACR is a publication of the Southwest Case Research Association (SWCRA). JACR publishes teaching cases in all business disciplines. Cases may be grounded in primary and/or secondary data sources. Whether primary or secondary, sources must be well documented.
Page 5
Synopsis
Since its founding in 1995 as a for-profit hospice entity, VistaCare had enjoyed
tremendous growth. In 1997, VistaCare had grown from its initial 2 sites to 7 sites in 4
states. By the end of 2003, VistaCare operated 40 hospice sites in 14 states. And the stock
price reflected this growth: From its IPO in December of 2002, where the stock debuted
at $12, it had risen to over $40 by December of 2003. Recent operational issues
negatively impacting revenue growth and profitability had left Chairman and CEO Rick
Slager and his management team with the unenviable task of informing investors that the
firm had recorded a net loss for the third quarter 2004 of $6.2 million. In December of
2004, just one year after the stock had achieved its all-time high; it now wallowed at less
than half that value.
What had happened in just a year’s time? VistaCare had continued to invest in future
growth by implementing aggressive marketing plans geared to spur the recruitment of
patients for its ever-expanding number of hospices. But admissions growth had slowed.
To make matters worse, VistaCare was plagued by unexpectedly high reimbursement
charges from its primary source of revenue, the federal Medicare system. In effect,
VistaCare had to pay back large amounts of monies received from Medicare because they
had failed to effectively manage their business to comply with Medicare guidelines.
Rick Slager and his CFO, Mark Leibner, were in need of a viable operations plan to turn
VistaCare’s business around quickly. More specifically, Slager and Leibner needed to
decide whether or not to continue the aggressive spending on marketing programs in the
face of deteriorating company financial performance.
Citation:
Newbold, J. J. (2007). VistaCare Healthcare. Journal of Applied Case Research, V7 (1), 5-27. http://swcra.net/Cases/V7_N1.pdf
Page 28
Synopsis
Richard Burnham thought he was easing out of the day-to-day management of Odyssey
Healthcare, the hospice concern he co-founded. He had stepped down as CEO in January
2004 and turned the reins over to his cofounder, David Gasmire. Now, less than six
months later, company performance issues and negative publicity were compelling him to
weigh in on a turnaround plan.
Founded in 1995, Odyssey Healthcare had enjoyed tremendous growth for nearly 10
years. Odyssey had grown its base of business through “same store” growth, acquisitions
and newly constructed operations to become one of the largest for-profit hospice
organizations in the United States. The number of Odyssey hospices had more than
doubled from 2001 – 2003, from 30 to 74.
However, as Burnham and Gasmire navigated into 2004, Odyssey began to experience
some operations-related problems. In February 2004, Odyssey released its earnings for
the fourth quarter of 2003. While the numbers for 2003 came in on target, Odyssey
management advised investors that their earnings estimates for fiscal year 2004 were
being lowered due to operational issues. Based upon this news, the stock price dropped
26% in a single day (Yu 2004). In April, 2004, Barron’s, a widely-read financial
newspaper, wrote an unflattering article about Odyssey which strongly hinted at Odyssey
engaging in less than ethical practices related to patient admissions, patient care and
patient discharges (Ward 2004).
Immediate action was required. As Burnham prepared to meet with his friend and
cofounder, CEO David Gasmire, he wrestled with a number of issues: What could be
done to improve the operations of the firm and restore investor confidence? How could
the organization ensure that individual hospice programs kept their eye on organizational
goals while still behaving ethically?
Citation:
Newbold, J. J. (2007). Odyssey Healthcare. Journal of Applied Case Research, V7 (1), 28-43. http://swcra.net/Cases/V7_N1.pdf
Page 44
Synopsis
On February 28th, 2006 Intel Corporation announced its decision to invest $300
million to create a semiconductor assembly and testing facility in Vietnam. Intel
Chairman Craig Barrett while in Ho Chi Minh City (formerly known as Saigon) stated,
“We applaud the progress the country has made in building up their technology infrastructure and support of education programs to advance the capabilities of the local
workforce.”
The Intel investment represents the largest U.S. non-oil investment in Vietnam.
Prior U.S. investment had mainly been in low-tech manufacturing such as shoes, food
processing and textiles. Vietnam has experienced a sizable, ongoing increase in FDI in
recent years, and political leaders hope to expand an economy and improve living
standards shattered by wars and poor prior economic performance. While Vietnam has a
number of attractive features to foreign investors, some analysts question the desirability
of investing in a country that has only recently experienced political stability and
economic freedom.
Citation:
Rarick, C. A., Morrell, S. O. (2007). A New Day Dawns for Vietnamese FDI. Journal of Applied Case Research, V7 (1), 44-54. http://swcra.net/Cases/V7_N1.pdf
Page 55
Synopsis
Carmen Estrada had seen a lot of eye opening events in her time as Human Resources
Director at the Columbia Medical Center – East hospital in El Paso, TX, none of which
had prepared her for handling Tom Zenor. As she looked through his personnel file she
wondered how Tom went from a promising young pharmacist, to cocaine addict, to
possibly suing his employer for alleged Americans With Disabilities Act (ADA)
violations.
Citation:
Carson, C. M., Spies, A. R., Cumber, C. J. (2007). Columbia Medical Center and the Cocaine-Addicted Pharmacist. Journal of Applied Case Research, V7 (1), 55-67. http://swcra.net/Cases/V7_N1.pdf
Page 68
Synopsis
No abstract provided.
Citation:
Webb, S. E., Alpargun, E., Brattain, R., Koopman, J. (2007). Procter & Gamble: Country Cost Of Capital. Journal of Applied Case Research, V7 (1), 68-76. http://swcra.net/Cases/V7_N1.pdf
Page 77
Synopsis
Vicki thought of herself as a good mother. She planned her grocery purchases
and attempted to provide nutritional food for her husband and son. Her three-year-old
son, Chaden, was a “picky” eater, so finding healthy foods that he would eat was a
challenge, especially at breakfast. About the only food that Chaden would eat for
breakfast was cereal. He was particularly fond of Kellogg’s Frosty Flakes and thought
“Tony the Tiger” was super. She had even made Chaden a “Tony the Tiger” costume for Halloween. Vicki could usually get Chaden to eat breakfast when she said that “Tony the
Tiger” was proud of him for eating a bowl of Frosty Flakes and milk.
Vicki was concerned, however, with the sugar content of Frosty Flakes. She had
recently returned to school to pursue a degree in early childhood education and had
researched the impact of sugar on children’s health, especially childhood obesity. She
was relieved when Kellogg’s introduced a low-sugar version of its Frosty Flakes. Vicki
was pleased that Chaden’s favorite cereal was now a healthy choice. Or was it?
Citation:
Tolleson, T. D. (2007). Kelloggs' Healthier Cereals: An Ethical Dilemma? Journal of Applied Case Research, V7 (1), 77-80. http://swcra.net/Cases/V7_N1.pdf
Page 81
Synopsis
Hana Biosciences is a South San Francisco-based development stage biopharmaceutical
company committed to advancing cancer care. Despite breakthroughs in biological
insights in the last twenty-five years, translating scientific progress into increased
biopharmaceutical industry productivity has been elusive, as capital costs continue to rise
and product development timelines lengthen. On average, it takes over $1.0 billion and
12 years to progress a product candidate from target identification to marketing approval.
This case considers decisions faced by a biopharmaceutical start-up as the company
works to build its product pipeline and establish commercial capabilities.
Citation:
Ahn, M. J., Meeks, M. D. (2007). Hana Biosciences, Inc.: A Case Study In Biopharmaceutical Entrepreneurship. Journal of Applied Case Research, V7 (1), 81-106. http://swcra.net/Cases/V7_N1.pdf
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