Karli would be in Southampton, New York. This

Karli DoranProfessor ShermanExercising Control at Sports Rehab Network14 January, 2018 A brilliant company idea that came to mind by a young man not only helped the patients attending the Sports Rehab Network facility, but also helped the hospital become more profitable.

This service was provided to those who were in sports and became injured. Instead of waiting months to become healed so that the athletes can return to the sports world, they would attend the PT offered by Mr. Marshall and is company. The location of the company was to help support the lack of physical therapy locations on the East end of Long Island, New York. Mr.

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Marshall was very successful in his business; however, he felt like he truly lacked in the correct location for his facility.  He then decided the correct location of his facility would be in Southampton, New York. This way schools around the area would not only create business for him, but he would also be able to help more athletes heal from their injuries. Since his business was so successful, the company then expanded to help adults with non-sports related injuries. This was due to many physicians recommending the Sports Rehab Network to their patients in order to help them fully heal from their injury.

  Then, in 1995 the Southampton Hospital purposed a deal where his company would join with the hospital and thus gain more clients and more revenue. Mr. Marshall agreed to the offer because of the amount of money he would make on the return was too good to turn down. Although there was a joint partnership between the hospital and Mr.

Marshall’s business, the Sports Rehab Network was seen and kept as a separate facility from the hospital—this allowed for Mr. Marshall to keep his brand and be able to continue marketing it as it was originally created.  In the year 1999, a man by the name of Mr. Bob Lynch came in as the new President and CEO of the hospital. Mr. Lynch was known for helping the hospital administration by bringing them out of their hardships and making them successful once again. Although Mr.

Lynch was seen as a man who is very hardworking, demanding an driven individual, this is where the issue began for Mr. Marshall and his business. This new revision of how the facilities operated meant for the Sports Rehab Business that they were now going to have a management contract with what was known as the ‘home’ hospital being the Southampton hospital. Mr. Marshall now had a new supervisor to report to, new rules, etc. Despite all of these changes, Mr. Marshall made the best of it and continued to operate under the new rules and help his patients.  It wasn’t long before issues began to develop and to add onto that, there was about to be another facility to compete with.

In the year 2000, the St. Charles Hospital located in Port Jefferson announced that they would be opening a six thousand square foot facility, specializing in sports medicine. The location of the facility was to be set in Riverhead, only one mile away from the Central Suffolk Hospital.

Once hearing the news, Mr. Marshall was called in to discuss what they would do in order to seem more valuable to patients in contrast to their competition. The result of the meeting was to open the Sports Rehab Network facility, agreed upon by both the Central Suffolk Hospital President and Mr. Marshall.  Upon the agreement is where the main issue began for the Sports Rehab Network facility. Even though there was a neighboring threat of another sports medicine facility in Coram,  Mr. Lynch shut down the idea of opening the facility.

Mr. Lynch rejected the idea on the grounds that the hospital was already expanding too quickly—and he possibly saw it as a major risk financially. Mr. Marshall was so concerned about this issue that he went back to Mr. Lynch a week later and suggested if he could find the resources to open up the facility in Coram, if he could then move forward with the plans. Mr.

Lynch once again denied his idea and threatened to fire him if he moved forward with his plans behind his back. After the meeting, Mr. Marshall began questioning if his plans were even worth the extra time and effort he had been putting into it and if he should be proud of what was already established.  The issue here is that Mr. Lynch was very close minded, harsh and rude. Not saying he’s the issue as a whole because the issue here is not expanding the facility even with a new competition arriving very shortly and not too far away.

  No matter how established any type of medical facility is, if a new one arises, patients will go and test the facility out for themselves. In this case, Mr. Lynch is holding the company back by not choosing to expand the facility in Coram. It is understandable that he is currently working on resolving the issues that were already at the hospital, but according to the Gross Revenue chart within the case study itself, profits increased greatly each year with the addition of the Sports Rehab facility.  Although both Mr.

Lynch and Mr. Marshall should be extremely proud of the facilities they have both created, I feel as if they won’t be able to continue to grow their success if they do not end up expanding to different locations throughout Long Island, New York. Instead of Mr. Lynch immediately shutting down the idea of expanding, he should have researched and examined the environment and weigh the risks and benefits.  Using the BCG Matrix, Mr. Lynch and My.

Marshall would’ve been able to estimate the market growth as well as the market attractiveness in order to see if opening a new facility would benefit the hospital as a whole. Using the four types of SBU, stars, cash cows, question marks and dogs, the business as a whole would be able to make an accurate decision on whether it would benefit more than cost to open a facility. The stars would show them the high growth of the business in markets where they would be strong in comparison with its competition. Cash cows deal with low-growth businesses that produce a high market share. Meaning that There is little investment needed in order to sustain success. Question marks would let Mr. Lynch see whether or not opening another facility could be successful, that it may require a larger investment in order to compete in the market.

Finally, the Dog refers to low-growth/unattractive in the markets. This would mean opening a new facility would allow the company to ‘break even’, but may require support from the other facility or even the hospital.  The matrix can show market share, industry growth and profitability which is the basis for any business trying to expand. Thus it would make a great tool to use in order to estimate expanding the facility. If Mr. Lynch is still against expansion, even after performing this matrix, I feel that they will begin to see some of their patients going to other facilities in order to receive the care. Patients will choose which facility based on the location, service of care, insurance coverage and flexibility it could offer. This can include multiple school districts; therefore, I think the issue would be solves by performing market tests to accurately depict if opening a new facility would be beneficial.

  Looking at the map on page 9 of the case study, the current sports rehab facility is in Westhampton. Mr. Marshall is looking to open a new facility in Coram. This would allow the Sports Rehab Network to expand and reach out to new patients and maybe make deals with new schools and help those student athletes. The new location would allow for the rehab facility to market itself and the hospital to new patients in a different area. If Mr. Lynch and Mr.

Marshall finally come to an agreement about expanding, they would be topping the competition that is approaching them. The strategy the company should take is that of a ‘blue ocean, red ocean’. This strategy would mean the company would be expanding the facility in a market where there isn’t much competition around it.

The Riverhead location is attempting to create a competition between the two companies; however, if the Sports Rehab Network were to open a new facility in Coram, the would create a red ocean for the Riverhead facility. Meaning for them, it would be a little harder to market their services when there is already an established company that has multiple locations.  Since there is new competition approaching, the Sports Rehab Network will possibly begin to lose business after the new location opens. In order to prevent this, from a marketing stand point, it would be best for the company and the business that Mr.

Marshall started, to expand the business location. They need to take that risk in order to growth the wealth of the company and be able to brand the company more. This will result in new patients and more revenue for the company to use to make necessary upgrades and educate their employees. When opening a new business, there is always going to be a risk, its just the decision to be made whether to take the risk or not.  N.

(2002). Retrieved January 14, 2018, from http://www.netmba.com/strategy/matrix/bcg/ Red Ocean vs.

Blue Ocean. (2013, May 23). Retrieved January 14, 2018, from http://www.corporatestrategy.com/red-ocean-vs-blue-ocean/ Staff, E. (n.d.

). Market Testing. Retrieved January 14, 2018, from https://www.entrepreneur.com/encyclopedia/market-testing Mensch, M., Armand, B.

, Sherman, H. (2018). Exercising Control at Sports Rehab Network.