Case 6 Rehabilitation Research Centre

Case 6: Rehabilitation Research Centre (3 marks)

1. 1) Evaluate the 2X2 performance - health matrix.
Id say current RRC is in the third quadrant being a troubled organization. There is a
miscommunication between the board of directors and the employees on the
companies business strategy.
Company also operating at a loss currently and is relying on a grant from WCB to stay
afloat which at this period in time is in question

2. 2) What is the Net Liquidation Value?

1,545,996.6 for 1994
Invest + due from WCB + 0.7 x AR + GST

3. 3) Evaluate Korpela’s Diamond-E report.

- Very effective, indentifies issues in all 5 components of Diamond E
- Gives very insightful suggestions, especially offering research and accredation
services to foreign governments

4. 4) What are the pros and cons of each alternative?

- Decrease funding Pro: could cause dramatic shift in revenue structure and force
RRC to generate more revenue through different outlets, and eventually become
self-sustained. Con: major cuts in research funding, company would have to
downsize
- Increase funding: Pro: More capital to invest in R&D aswell as revenue streams
Con: rely on funding and therefore overlook huge profit potential through
korpelas suggestions In the diamond-E
- Remove funding: Pro: none Con: company liquidation, job losses, valuable
reserch to WCB gone
- No change: Pro: company doesn’t dissolve, given second chance to restructure
and become self-sustained con: company still in bad position, lot of work ahead

5. 5) What should Korpela do personally?

- Considering the final decision of cutting funding or not, Korpela should continue
to work hard however get his voice heard more and begin to implement his own
suggestions
- Also should arrange a meeting with his superiors to discuss this diamond-e test
and how the company could improve
- Lastly take on more responsibility to shape his coworkers into the management
team he desire

This study source was downloaded by 100000855596484 from CourseHero.com on 10-25-2022 22:39:46 GMT -05:00

https://www.coursehero.com/file/38890293/RRC-Case-docx/
 S1 – Role
- Working as an advisor to oversee Co-cordinator of Business development for the RRC
S2
- Net income of -318,447 (1994) with 5 million grant from WCB
- salaries account for nearly 60% of operating expenses
- Negative cash flows (nearly -17,000 operating) and ( -417,000) net cash flow
Add more ratios
Rating of 3/10

S3- Organizational health

- Employed just over 50 employees, very low turnover
- Consists of post grad students with ph.ds and M.ds
- Company is poorly structed oganizationally with a very flat level of management
- Very little employees educated in management, understand research component of RRC
but not business
- Passion towards research but stops there
- Overall would rate company 4/10 health

S4- Matrix
-
- Id say current RRC is in the third quadrant being a troubled organization. There is a
miscommunication between the board of directors and the employees on the
companies business strategy.
- Company also operating at a loss currently and is relying on a grant from WCB to stay
afloat which at this period in time is in question
S6 Goals
- Soft- Comapanies mission is to improve the understanding of factors that determine
workplace safety, injury and disability
- Soft recommened and evaluate initiatives ro reduce work-related disabilities
- Continuously improve the quality of Ontario rehabilitation services
- Hard – commercialize outcome-focused accredation (revenue from accreditation)
- Hard- commercializing an assement instrument for upper-extremity inuries
- Hard – commercializing back guidelines training software

S7 – product market focus

- Doesn’t really have one

This study source was downloaded by 100000855596484 from CourseHero.com on 10-25-2022 22:39:46 GMT -05:00

https://www.coursehero.com/file/38890293/RRC-Case-docx/
 - Offer service to WCB by conducting research in order to evaluate the effectiveness of
programs instituted by the WCB, this was funded by a grant from WCB
- RRC generated revenue by accrediting rehabilitation centres that the WCB supported
and used.’
- LOOK AT EXAMPLE IN TEXTBOOK

-
S8 Value proposition
- Currently competing with execution with offeing rehabilitation centres proprietary
properties such as the accrediting of their centres. This gives the centre a distinction
factor from others.
- Also the RRC is competing with execution in terms of reliability, in terms of when a
customer is referred to a any of their programs they know there is a specific standard of
service they are guaranteed
- However currently not generating enough revenue, need more capitl pumped into
expanding accrediting services
- Answer is doesn’t compete at all

S9
- Big asset is intellect capital as they have many PH.ds and DR.s working withing the
research facility
- Main activities are to conduct research on WCB programs and see how effective they
are, how to improve and how to treat range of work related injuries
- Also accredit rehab clinics to be provided as a service to WCB patients

Diamond-E
- Currently there is a miscommunication between management and the organization.
- Korpela has been hired to fix this however even when he present his findings to the
management they interpret the problem of lack of management skills in the lower level
organization. He tells korpela to develop a training problem to fix this, as appose to
Korpela wanting a hands on approach to hire more management staff.
- The company is facing a problem and this comes back to the backbone of the company
not being in line
- MIS capacity strainging company, needs more centralized organization
-

E-11 PEEST

Political
- New government conservative(tories) which are trying to cut back on the deficit left by
NDP. By doing so they proposed to cut government funded projects which directly affect
the RRC and WCB

This study source was downloaded by 100000855596484 from CourseHero.com on 10-25-2022 22:39:46 GMT -05:00

https://www.coursehero.com/file/38890293/RRC-Case-docx/
 Economic
- Country in deficit, affects funding and also interest rates

Social

Technological
- Advancements in rehabilitation lead to more spending on research to compete with
industry shift

E-12
- Gov funded, no stakeholders

E-13
- In research are Monopoly, government is not competing with anyone
- In accrediting, other private companies in competiton with their clinics

E-14
- WCB is government progam that funds RRC

e-15
- Only way the RRC generates revnue is by accrediting clinics to be used by the WCB, and
charging a fee for this.

R-16
- 90% of revenue comes in form of grant
- Salary is neary 60% of expenses
- RRC relies on WCB to fund it unless the RRC would be operating at a loss every year
Exhibit 7 in rrc case

Suggestions
- Continue focusing on using their formula and focus on romance novels because that’s
where they are most successful but perhaps expand into new consumer markets. Right
now the focus is on the 35 year old. Can try to create a line of romance novels that is
aimed toward the teenage girl.

This study source was downloaded by 100000855596484 from CourseHero.com on 10-25-2022 22:39:46 GMT -05:00

https://www.coursehero.com/file/38890293/RRC-Case-docx/
 - Rather than opening up more physical location of the scholar books could try
establishing a network that sells directly to the school boards; sales agents that sell the
educational material and then it’s delivered to the schools
- End contract with pocket books and establish their own U.S. sales force that would be
fully committed and focused on penetrating U.S. market with Harlequin just like Canada
was doing
- Rather than making movies, could create TV series and air them on popular women’s
networks
- Expanding internationally has been successful to date, so continue with that
- Look for ways to secure one of their key resource; editorial team by offering better
compensation or benefits

This study source was downloaded by 100000855596484 from CourseHero.com on 10-25-2022 22:39:46 GMT -05:00

https://www.coursehero.com/file/38890293/RRC-Case-docx/
Powered by TCPDF (www.tcpdf.org)