Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On the other hand, when the management of the hospitals has a demand social responsibility they could expand its capacity and facility in different models

image text in transcribed
On the other hand, when the management of the hospitals has a demand social responsibility they could expand its capacity and facility in different models to reach more patients and they will high and great appreciation of the customers for obtaining extra profits. The economies of scale and diseconomies of scale is important as focusing and reexai'nining the expansion of capacity (Jacobs 8: Chase, 2013). Shouldice's management should assess and evaluate their hospitals situation and gauge the average unit cost of operation rooms after increasing capacity. When the average unit cost will lower, Shouldice hospital is expanded to increase location capacity. In contrast, they have to estimate if the extra profit will exceed the extra cost, which will be incurred after increasing capacity, and obtain a decision appropriately. Some of the metrics, which Shouldice Hospital should monitor, in which determines that growth has plateau includes the sales revenues level, cost of customer acquisition, and profit margin growth rate. The sales revenue level determines the amount of earnings of an organization after providing services to their customers [Castano, 2014). If the sales revenues remain the same from the previous year, it implies that the growth of the organization has a

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managing Information Technology

Authors: Carol Brown, Daniel DeHayes, Jeffrey Hoffer, Wainright Marti

7th Edition

132146320, 978-0132146326

More Books

Students also viewed these General Management questions