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ABC Clinics Business Analyst Case Study
Case Study Overview
Please prepare a presentation that answers each of the 8 questions below. We will review this business case during the in- person interviews. There are often several correct answers / approaches to the questions – the purpose of this case study is to evaluate your critical thinking skills and the process by which you would evaluate potential business opportunities/ challenges and how you would present your findings to the partners.
Ultimately, your goal is to convince the audience (partners) that you are able to thoroughly think through key business challenges and develop a cohesive, logical solution to a specific problem. This case was designed to help us evaluate potential candidates’ skills, specifically those necessary to help ABC Clinics grow the business.
Case Study Notes:
This case study represents a real-life challenge the ABC Clinics partners rnay ask you to evaluate in order to help grow the business; however, all information contained within this case study is fictitious.
Wherever possible, leverage charts and graphs to help explain your conclusions and the qualitative and quantitative insights you draw from the Information provided.
The Case Study is purposefully not complete with data – as you feel appropriate, please make and document assumptions that are used to complete your case presentation.
Context & Background Information
ABC Clinics, a leading diagnostics and imaging group also has a number of unique joint ventures across Canada. One of joint ventures, Acme Wellness & Pain Management (AWPM), is a 50/50 joint venture with a GTA wellness group.
The 50/50 joint venture consists of a health and weilness center and a pain management clinic and principally generates revenues from nutrition counseling (25%), physical therapy services (20%) and pain management administration (55%, requiring physicians administration).
The ABC Clinic partners have asked you to help identify the reasons for the joint venture’s declining profits and develop suggestions for how to reverse this trend.
Joe Smith, one of the ABC Clinics Partners, asks you to heip facilitate a high-level brainstorming session during the monthly Partners’ meeting. Please describe what general information you would you like to gather during that brainstorming session to heip you evaluate the declining profits at Acme Wellness & Pain Management?
You have been asked to address profitability. How would you structure / what key components of a standard income statement would you include in your evaluation of AWPM’s weakening profitability? How do these components relate to each other?
You have first chosen to explore fixed costs. Please identify some of AWPM fixed costs and expialn how they could be changing to impact profitability?
Now, assume you have found that fixed costs have been fairly constant and, as such, are unlikely to be contributing to AWPM weakening profits. Thus you have decided to investigate variable costs. From your perspective, how would you define AWPM’s variable costs and what are some of AWPM’s major variable cost categories?
You have determined that labor is the key cost driver. AWPM variable labor costs over the past 5 years are presented in the table below. What insights can you draw about AWPM’s variable labor costs and associated trends?
|Year||Variable Labor Costs||Patients Treated|
Given that labor costs are likely one of the causes tor the decline in AWPM’s profitability, you have next decided to understand how revenues could be impacting overall profitability. In the table below, you have been provided with the customer counts and total revenue tor both AWPM and Belvedere Weliness & Pain Management (BWPM). What insights can you draw from the table? What do you hypothesize could be causing some of these changes to occur?
|Year||AWPM Patients||AWPM Total||BWPM Patients||BWPM Total|
Based on your understanding of the Information provided in Question 6, you are now shifting vour attention to qualitatively understand the core patient segments tor AWPM. Specifically, the objective is to divide patients into groups of people with similar characteristics. How might you segment patients in this market?
Given the reduction of patients and average revenue per patient, what strategies might be deployed to increase patient volume? What qualitative considerations would you encourage the ABC Clinic partners to consider before implementing any pricing changes?