Publications
Publications
- March 2016
- HBS Case Collection
Compass Group: The Ascension Health Decision
By: Ryan W. Buell
Abstract
In 2012, Compass Group (Compass) was on the verge of closing a $2 billion deal with Ascension Health (Ascension), one of the largest healthcare systems in the United States. Under the deal, Compass would provide foodservice management and cleaning services for 86 of Ascension's hospitals. Compass employs a "sectorized" approach to deliver service through a portfolio of focused brands, each of which targets focused groups of customers with specific needs. After months of negotiating, the deal had come down to a single request: Could Compass provide these two services through a single operation? Compass must weigh the benefits of operational focus against the prospect of a very lucrative contract. The case details the strengths and limitations of a sectorized strategy. It also provides a window into the complicated and time-intensive supplier selection process inherent in many business-to-business service relationships.
Keywords
Operations Strategy; Sectorization; Operational Focus; Customer Compatibility; Service Operations; Service Delivery; Operations; Customer Focus and Relationships; Service Industry; Health Industry; United States
Citation
Buell, Ryan W. "Compass Group: The Ascension Health Decision." Harvard Business School Multimedia/Video Supplement 616-705, March 2016.
About The Author
