A group of Ophthalmologists are considering opening a private eye center in downtown Vancouver, offering special corrective eye surgery to the general public. The eye surgeons believe that their success of opening such a facility is largely dependent on the provincial governments’ position to grant or not grant further public access to private health care facilities. If the provincial government supports future public access to private health care facilities, the surgeons believe that a clinic would have a “great” market opportunity. Likewise, if the government provides some access or restricts future access, the surgeons believe this would create “fair market” and “awful market” conditions respectively. Currently, the eye surgeons estimate the 3 market conditions as a function of government policy as of follows: P(“Great Market”) = 0.30; P(“Fair Market”) = 0.40; P(“Awful Market”)=0.30. The eye surgeons estimate that each patient treated will provide a unit profit margin (averaged across their various services) of $300 and the number of patients treated under the 3 market conditions in their first year of operation is 600, 300 and 25 respectively. The surgeons’ initial start up costs is estimated at $100,000 for opening the clinic. Of course, they do not need to proceed at all, in which case there is no cost.
A group of Ophthalmologists are considering opening a private eye center in downtown Vancouver, offering special...
Part I: A group of Ophthalmologists are considering opening a private eye center in downtown Vancouver, offering special corrective eye surgery to the general public. The eye surgeons believe that their success of opening such a facility is largely dependent on the provincial governments’ position to grant or not grant further public access to private health care facilities. If the provincial government supports future public access to private health care facilities, the surgeons believe that a clinic would have a...
Case: Enron: Questionable Accounting Leads to CollapseIntroductionOnce upon a time, there was a gleaming office tower in Houston, Texas. In front of that gleaming tower was a giant “E,” slowly revolving, flashing in the hot Texas sun. But in 2001, the Enron Corporation, which once ranked among the top Fortune 500 companies, would collapse under a mountain of debt that had been concealed through a complex scheme of off-balance-sheet partnerships. Forced to declare bankruptcy, the energy firm laid off 4,000...
How can we assess whether a project is a success or a failure? This case presents two phases of a large business transformation project involving the implementation of an ERP system with the aim of creating an integrated company. The case illustrates some of the challenges associated with integration. It also presents the obstacles facing companies that undertake projects involving large information technology projects. Bombardier and Its Environment Joseph-Armand Bombardier was 15 years old when he built his first snowmobile...
CASE 20 Enron: Not Accounting for the Future* INTRODUCTION Once upon a time, there was a gleaming office tower in Houston, Texas. In front of that gleaming tower was a giant "E" slowly revolving, flashing in the hot Texas sun. But in 2001, the Enron Corporation, which once ranked among the top Fortune 500 companies, would collapse under a mountain of debt that had been concealed through a complex scheme of off-balance-sheet partnerships. Forced to declare bankruptcy, the energy firm...