Case Study IV-7 Meridian Hospital Systems, Inc.
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Teaching Note on Case Study IV-7
Meridian Hospital Systems, Inc.:
Deciding Which IT Company to Join
Objectives
Many cases written for the classroom focus on common business problems with the goal of preparing
students for situations they may encounter upon graduation or later in their careers. Few cases, however,
address the concerns students face as they make their employment decisions. The primary purpose of this
case is to expose students to some of the issues inherent in the first-job decision-making process.
Secondly, this case gives the reader some insights into the dynamic nature of working in small
businesses especially in the information technology (IT) industry.
The contrast between working for a well-established, reputable large firm and a newly created, unknown,
regional upstart poses the primary dilemma for the protagonist in this case (Willie Stahe). This story line
secondary objectives:
To introduce students to the risks and rewards of working for a startup
Overview
student-alumni networking event designed to boost on-campus recruiting. At this event, Willie found
Mike Robbins, the CEO at Meridian Hospital Systems). Though he had already received an offer from
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Epilogue
As of the writing of this teaching note, Willie (not his real name) was still enjoying his job, but at
the successor to MHS. MHS was purchased by another privately-held company on the East
Questions for Discussion
1.
When MHS first started operations, its first strategy was to create online purchasing processes for
hospitals, using reverse auctions and other techniques to help lower costs. Like many other
Internet-based businesses, MHS created what seemed to be an excellent application of the
capabilities of the Internet. Growth in the electronic business-to-business market was expected to
2. What are the pros and cons of working for Hewlett-Packard and MHS?
Hewlett-Packard Pros
Working for a well-established, prestigious firm like Hewlett-Packard has the potential for
creating tangible work experience, job opportunities, and career contacts for the future.
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Hewlett-Packard Cons
It is difficult for a young person to have a significant impact on the future direction of a large
firm.
MHS Pros
act on the success of the
company.
MHS Cons
When including benefits, compensation (including salary and benefits) is likely not as great
as compared to Hewlett-Packard.
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3. How should Willie make his decision?
Below is a three-step progression that should guide Willie in his decision-making process:
List His Career Objectives: While this step should have occurred before Willie even began
searching for his first position, Willie must nevertheless understand his desired career path in
4. What should Willie do?
Before Willie can act he must appraise the situation. With an offer from Hewlett-Packard and an
interview with MHS, Willie has several opportunities in front of him something that is often
As Willie
essential that the class analyze all his options to better understand the employment paths he has
before him.
Option 1 Take the HP Job: The first employment offer Willie received from HP is
enticing. As a software developer there, he will gain experience from an industry leader.
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Option 2 Take the MHS Job: Though the option at HP is acceptable and has a greater
salary, Willie appears more enthusiastic about having a high degree of input and impact on
key company decisions. In addition, the greater access to upper level management seems to
Option 3 Play the Salary Game with HP: As part of the recruitment process, Willie
perhaps a very high risk strategy, this is nonetheless an opportunity for Willie to accomplish
Option 4 Play the Salary Game with MHS: Similar to Option 3, Willie could bargain
with MHS for a better employment package. Though he could choose to use the pretense that
Option 5 Wait for Another Offer: Willie could try his luck and wait for another offer. If