Final Report
Two Joint Venture Proposals for Ireland and Baltimore
May 4, 2009
Greg Blue
Meleah Burdette
Kevin Drennan
Courtney Jenkins
Brian McNemar
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Executive Summary
The Baltimore Healthcare industry, particularly the hospital systems, has been very
successful because it has been able to create competitive advantage. Baltimore area
healthcare systems have benefited tremendously from a skilled labor force, the positive
reputation of surrounding academic institutions, high demand for quality patient care, and the
intense rivalry and competition between hospitals to provide quality, low-cost care to all
patients. The close proximity of these establishments creates an environment that fosters
knowledge sharing and helps energize the advancement of medical research and technology.
Ireland is known for being the home to a variety of high quality brews. Beer is engrained in
the Irish culture and is an important part of daily life. Ireland’s beer consumers are well
educated and hold Irish brewing companies to high standards. Within Ireland there is a
network of home-based competitors, many of which compete globally. The brewing industry
has proven to be one of Ireland’s most successful and productive businesses.
One can see, by examining Ireland through Hofstede’s cultural dimension model, that the
Irish culture and the culture of the Baltimore region have very similar characteristics. The
Baltimore region presents a great snap shot of the United States which allows us to compare
the two regions by way of Hofstede's index and ranking scale. Both regions share similar
ideas of individuality and believe in the necessity of rules and order. They also share similar
feelings about competition or ambition, and the individual's role in the decision making
process. These similarities make Ireland an attractive region for Baltimore-based companies
to begin expansion and to create a multinational operation.
Baltimore is an established center of medicine and is home to the United States’ number one
hospital. Ireland, on the other hand, struggles to maintain a satisfied patient base as the wait
times for medical care and treatment are very long. To alleviate this issue and strengthen the
“brand” of the Baltimore medical industry, Johns Hopkins Hospital should expand into the
Irish market. The location is very important because many people around the world either
travel to receive care at the Johns Hopkins facility in Baltimore, or cannot afford to do so and
go without care. Therefore, Ireland is a more central location globally, and will address the
patient wait time issue experienced throughout Europe. The Johns Hopkins-Beacon Hospital
partnership, or joint program, will establish relations with the University of Limerick for
future endeavors in education and observerships in different medical fields. This potential
venture has very few risks associated with it and would certainly benefit all parties involved
as well as patients who are in dire need of care.
Our recommendation for the Ireland brewing industry is for several of their microbreweries
and large breweries to create a Joint Venture with existing Baltimore companies. This Joint
Venture would involve the creation of several authentic Irish pubs in one area of Baltimore.
This area would be called “Little Ireland” and would feature authentic Irish pub culture and
offer Irish beers brewed in Baltimore. One type of pub, the MicroPub, will feature Irish food
and beer and be centered on the growing popularity of Irish micro brews. The second type of
pub, the MacroPub, will be run by larger Irish beer companies such as Guinness and will
feature merchandise and attempt to appeal to the masses. Given the specific strengths and
weaknesses of each area, this business venture proposal makes sense and there are various
companies including Irish breweries, Baltimore breweries, and Baltimore restaurants that will
make this business venture work. This proposal will benefit both the Baltimore and Ireland
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economies and will be made possible through a trusting relationship between the involved
companies and an efficient network for knowledge sharing.
Baltimore Healthcare Industry Current Market and Economic Conditions
The United States is fortunate to have some of the best hospitals in the world. Because Johns
Hopkins has been ranked as the best hospital in the United States, it draws global attention;
thus, people from all over the globe travel to Baltimore just to be treated by Johns Hopkins
doctors (Travelandleisure.com). Johns Hopkins, as well as Baltimore’s other top hospitals,
could take advantage of this global demand by creating a “sister hospital” in another country
with equally qualified doctors. Since the industry is highly influenced by human capital, it is
possible to operate successful establishments abroad as long as the medical equipment being
used is as advanced as those in the Baltimore facilities. This hospital would have to be
located in an area that was closer and more convenient for many of its global visitors.
However, one difficulty with global expansion is that many countries, especially European
countries, have universal health insurance that may prevent hospitals from covering their
large bills for research activities. Hospitals in Europe have longer wait times for patients
(four times longer in England) and preventative care is not always allowed on an annual basis
by the universal coverage (businessweek.com). Please see Exhibit A.
Baltimore Healthcare Industry Key Competitors
The clear industry leader among hospitals is Johns Hopkins Medicine with 7,000 employees.
According to Hoovers, Johns Hopkins’ top competitors in the area are Anne Arundel Medical
Center, GBMC Healthcare, and MedStar Health. In order to benefit from shared resources
and bring better services to their patients, both Anne Arundel Medical Center and GBMC
have partnered with Johns Hopkins to share certain facilities and patients. MedStar Health
competes on a larger scale and is more spread out than Johns Hopkins. MedStar runs seven
hospitals and various health care facilities in the Baltimore/Washington area. Overall, they
have 23,000 employees and experienced sales over $2 billion in 2008 (Hoovers). Among
teaching hospitals, both Johns Hopkins University and University of Maryland Medical lead
the industry in Baltimore. University of Maryland Medical has over 5,000 employees and
generated over $1.5 billion in sales during 2008. Please see Exhibits B and C.
Baltimore Healthcare Industry Strengths and Weaknesses
Overall, the healthcare industry is very strong. It is expected that over 3 million new jobs
will be generated by the year 2016 (Bureau of Labor Statistics). This growth is attributed to
the overwhelming number of people reaching retirement age and elderly people who require
more medical attention than younger people. Additionally, advancements in technology
mean that more patients are surviving and consequently require follow on long-term care.
This presents opportunities for doctors to administer these new treatments and nurses and
other medical employees to monitor patient health after procedures are complete (Bureau of
Labor Statistics). Within the United States, there are plenty of opportunities for
organizations in the healthcare industry to form strategic alliances to better themselves and
their patients as well as expand geographically by opening new facilities. One weakness is
that these organizations are heavily reliant on insurance companies who pay most of the bills
for patients. This places a severe restriction on global expansion to those countries that do
not have a healthcare system similar to that of the United States.
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Factor Conditions – Baltimore Healthcare Industry
As previously stated, Baltimore is home to six of the best hospitals in the United States.
These nationally accredited healthcare facilities are so successful because of the availability
of highly skilled laborers in the area. The healthcare industry as a whole has been successful
in Baltimore because of the pipeline of talented individuals graduating from professional
schools in the area. Johns Hopkins University is ranked as the number two medical school in
the nation, while The University of Maryland is ranked among the top 50 (US-News). Both
Johns Hopkins and the University of Maryland are ranked in the top ten among best nursing
schools in the United States, while The University of Maryland School of Pharmacy is
ranked in the top ten nationally (US-News). Additionally, Baltimore area schools are home
to top physical therapy, physician assistance, healthcare management, and social work
programs. Johns Hopkins University and The University of Maryland draw the most talented
students and professionals from around the world, making the availability of skilled resources
extremely high in the Baltimore metropolitan area.
Demand Conditions – Baltimore Healthcare Industry
The healthcare facilities in the Baltimore area have been able to create a high level of demand
because of their successes and national recognition. Johns Hopkins ranks among the top
three in twelve different specialties (US-News). These accolades give Baltimore area
hospitals and healthcare facilities a competitive advantage over facilities across the United
States, creating huge market demand. In a study done by researchers at UCSF, the average
wait in the United States for a dermatologist is 38 days and 17 days to see an orthopedic
surgeon (Business Week). Due to this long wait time to see health care providers, a
Commonwealth Fund study found that roughly 26% of people surveyed went to the
emergency room over the past two years simply because the wait time to see a doctor was too
long (Business Week). Although no data collected was specific to Baltimore area hospitals,
one can only imagine the wait time is even higher at the premier facilities in the Baltimore
area.
Related and Supporting Industries – Baltimore Healthcare Industry
As mentioned earlier, the success of the Baltimore area hospitals is similar to that of
technology companies based in the Silicon Valley. The healthcare industry in Baltimore has
become an industry leader because of the cluster of treatment centers, both research and
teaching hospitals, as well as professional schools in the city. Franklin Square Hospital
Center, Harbor Hospital, Sheppard and Enoch Pratt Hospital, Union Memorial Hospital, and
the University of Maryland Medical Center, and Johns Hopkins all rank in the top 170
hospitals in the United States (US-News). The success of these hospitals has also allowed the
graduate programs in the Baltimore area schools to flourish. The University of Maryland and
Johns Hopkins rank among the top medical, nursing, and pharmacy programs in the nation.
In addition, Johns Hopkins ranks as the number six biological science research university in
the United States (US-News). The success of the Baltimore area hospitals has allowed for
the development of many premier skilled nursing and rehabilitation centers in the area as
well. There are currently 49 skilled nursing and rehab facilities in Baltimore alone and that
number is expected to grow (Medicare).
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Firm Strategy, Structure, and Rivalry – Baltimore Healthcare Industry
A relatively recent trend among healthcare players is to bond together and partner up to
operate more efficiently and offer patients the best service possible. This is the case in
Baltimore, as many local hospitals and treatment facilities have partnered with one another.
Even with this cluster affect, there still exists a great deal of competition within the industry.
This rivalry has proven to be beneficial among the Baltimore area hospitals because it has put
an enormous amount of pressure on the hospitals to continually innovate and improve patient
care. The outcome of the industry rivalry has caused both Johns Hopkins and The University
of Maryland Medicine to rank among the best teaching hospitals in the nation. There is
constant pressure on these institutions to produce top medical professionals because of the
competitive nature of the industry, especially in Baltimore. Porter’s five forces model tells us
that high local rivalry actually results in less global rivalry.
Ireland Brewing Industry Current Market and Economic Conditions
In the beginning of the 19th century, there were well over 200 breweries in Ireland, 55 of
which were located in Dublin. During the 19th century, however, a great deal of breweries
failed and by the end of the century only 50 remained. In 2009, only 12 breweries still
operate in Ireland.
There are several different types of brews in Ireland: lager, red ale, stout, and craft beer.
Based in Cork at the Murphy Brewery, Heineken Ireland has the largest share of the lager
market. Heineken also brews Amstel and Coors Light in addition to other brands acquired
over the years (Fosters, Carling, and Miller). Lager is the most popular beer style in
Ireland—accounting for 63% of the beer sold today. Red ale is the most common style of
Irish ale produced. This type of brew is weaker in terms of alcohol content and slightly red
in color. The leading brand is Smithwick’s by Diageo, with Galway Hooker not far behind.
Ale accounts for 5% of the beer sold in Ireland today. Stout is another variety that is highly
popular in Ireland and is brewed by Guinness. Stout currently makes up 32% of the market
for Irish brews.
Beginning in the 1990’s, brewpubs and microbreweries began to emerge in Ireland. While
most have ceased production, the Franciscan Well Brewpub in Cork, Dublin’s Porterhouse,
and Carlow Brewing Company have been in business for over ten years. A second wave of
brewpubs emerged in the early 21st century and includes Beoir Chorca Duibhne Brewery in
Kerry County and Galway Hooker Brewery in Roscommon. There are seven other breweries
located throughout Ireland.
Ireland Brewing Industry Key Competitors
There are three key leaders in the brewing industry in Ireland: Guinness, Harp, and
Heineken. Guinness dominates the market for stout brews, while Harp and Heineken
compete for market share of the lager brews. Heineken currently has the largest share of the
lager market which can be attributed to mergers and acquisitions over the years. Competition
within the brewing industry is intense as waves of breweries enter the market. The success
rate of breweries in the Irish industry is very low, as many end up failing within a few years
following launch.
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The competitiveness and quality of beer produced in both Dublin and Cork dates back a few
centuries. Beer began to improve considerably towards the end of the 18 th century. There
was at one time a hefty duty on beer, which was abolished in 1795, thereby reducing costs
drastically. Then, the temperance movement in the 1840’s along with higher duties on spirits
in the 1850’s gave beer a more widespread appeal. As the quality of barley, malting
techniques, and brewing methods were all improving in Ireland, brewers in Dublin and Cork
were able to eliminate a large majority of UK beer imports. This heightened state of quality
also enabled the brewers to extend their markets into more rural areas. Although brewing
productivity outside of most major cities is relatively small in comparison to those located in
cities, they have proven to be equally as important because the locations have greater
accessibility to barley. Most of the rural area breweries are in the counties of Cork, Offaly,
Laois, Tipperary, Louth, and Kildare where barley growing is very common.
Output increased in the second half of the 19th century and the industry became further
centralized in the larger urban breweries. At that time, Dublin breweries produced about 75%
of total output and 96% of all exports. The large turnover of the Guinness facility made
brewing by far the most important industry in Ireland.
Ireland Brewing Industry Strengths and Weaknesses
When someone mentions Ireland, the first thing that comes to a person’s mind is most likely
high quality, tasteful brews. The fact that most people tend to associate Ireland with good
beer says a lot for the types and varieties produced there. Therefore, it goes without saying
that the brewing industry in Ireland is very strong and has been so for a long time.
As mentioned previously, there still remains a ton of growth potential as the industry evolves
and changes according to consumer preferences. This is a clear advantage for Ireland since
mature industries are generally oversaturated and over invested (which is not the case for the
Irish brewing industry). There are several renowned brands that come directly from Ireland,
not to mention the Irish have been worldwide leaders for numerous years. Because of the
excellent Irish reputation, brand loyalty is and has been very common.
With these industry strengths also come industry weaknesses. The major weakness of the
Irish brewing industry is its vulnerability to lose its position in the forefront. Although it has
been dominant since the 18th century, there have been periods when that was not necessarily
the case. It is a highly competitive industry, which has lead to a low business success rate.
Therefore, most new entrants do not make it more than 10 years. Additionally, since beer
and other microbrews are not a necessity to survival, demand is extremely elastic. Therefore,
consumers will react directly to price increases or decreases. Responsiveness is completely
dependent on a change in price which again goes back to the competitive piece of the
industry. Brewers have to find a good middle ground between high quality products for a
price that consumers are willing to pay, which is difficult to do given the intensity of industry
competition.
A risk is the possibility of a bad harvest of barley and/or hops. This would directly affect the
amount of beer that can be produced during a given period as well as the cost of the
ingredients required. A bad harvest would also have an adverse affect on the price tag and
hence consumer demand.
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Factor Conditions – Brewing Industry in Ireland
Ireland is located in the “Beer Belt” which is an area of northern Europe that has favorable
climate for the commonly used ingredients in beer. The “Beer Belt” also comprises “the
United Kingdom, Netherlands, Germany, the north of France and some countries of Eastern
Europe. In these countries, the moderate climate and the nature of the soil are particularly
favorable for the culture of cereals” which are used in brewing beer. This climate made
Ireland a primary candidate for becoming a leader in the brewing industry and gave the
country a significant competitive advantage compared to other locations around the world.
Additionally, since Ireland is an island it has an abundance of access points to the Celtic Sea,
the Irish Sea, and the Atlantic Ocean which can be utilized for importing and exporting. It is
no surprise that all of Ireland’s major brewing companies are located along or close to the
coast lines of Ireland (IBA, 2008) Please see Exhibit D.
Ireland also has a mix of population that supports the brewing industry. This population is a
mix of skilled and unskilled labor capable of handling everything from being a brew-master
(skilled) to working on a factory floor (unskilled). 67 percent of Irish people (roughly 2.8
million) are between the ages of 15-64 who create the labor force of 2.27 million (CIA,
2008). 4.6% of this labor force (105,000 people) are trained in and work in some part of the
drink industry (ABFI, 2009). This is an impressive percentage of the population that is
capable of running the brewing industry.
Demand Conditions – Brewing Industry in Ireland
Beer has become engrained in Ireland’s culture and is part of many of the country’s
traditions. The people of Ireland use drinking beer as a social event to meet with their friends
and neighbors (Travel in Ireland, 2008). It is no secret that the people of Ireland drink a
significant amount of beer; Ireland's per capita beer consumptions is the 4th largest in Europe
at 106 liters (IBA, 2008). Additionally, 49.5% of all the alcohol consumed in Ireland is beer
(IBA, 2008). Please see Exhibit E.
The level of importance Irish people place on beer creates a high demand from Ireland’s
population for quality beers. Irish consumers are informed about various types of beers and
their brewing processes. These consumers are familiar with and can tell the difference in
taste, color, and texture of the traditional Irish Lagers which date back to 1892, Ales and
Porters which date back to 1799, and Stouts, Irelands most popular style which date back to
1840 (European Beer Guide, 2007). This level of sophistication creates pressure for Ireland’s
breweries to maintain the highest quality beers without cutting corners in the brewing
process. As a result, Ireland’s Breweries have a greater advantage when competing in
foreign markets because of their increase in quality due to the intense local demand.
Related and Supporting Industries – Brewing Industry in Ireland
Ireland’s brewing industry is supported by the country’s rich culture which embraces publife. Ireland is full of pubs and each of these pubs does business with Ireland’s major
breweries as well as microbreweries. 32.4% of the beer brewed in Ireland is consumed in
Ireland and this figure is increasing each year (IBA, 2008). Please see Exhibit F. The
success of the restaurant and pub industry in Ireland over the years has been a major
contributing factor to the success of the country’s breweries. Additionally, Ireland’s brewing
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industry is composed of a network of many home-based competitors. These competitors
include: Beamish and Crawford, Biddy Early Brewery, Great Northern Brewery (Harp),
Arthur Guinness and Son & Co. (Guinness), Messrs Maguire, College Green Brewery,
Murphy Brewery Ireland Ltd., E. Smithwick and Sons Ltd., Strangford Lough Brewing
Company Ltd, and Anheuser-Busch InBev Ireland who brews Bass Ale (European Beer
Guide, 2007). These companies benefit from information flow and opportunities for
interchange due to their geographic proximity and their intense domestic and international
competition. Guinness realized the benefit they could gain from information and resource
sharing and bought the Great Northern Brewery and Smithwick and Sons Ltd. This
acquisition enhanced Guinness’ strategy buy opening new distribution channels, creating
relationships with new suppliers, and gaining insight into alternate methods of brewing.
Firm Strategy, Structure, and Rivalry – Brewing Industry in Ireland
Ireland's brewing industry has intense local rivalry which places pressure on the individual
breweries to be innovative and keep up with customer demand. Ireland’s brewing industry
used to be extremely fragmented and no single brewery had a large share of the market. At
the start of the 19th century there were over two hundred breweries; currently, there are only
12 breweries in Ireland (Travel in Ireland, 2008). Most of these breweries have been
purchased by global competitors such as Diageo, Heineken, Scottish and Newcastle, and
InBev (European Beer Guide, 2007). This global presence has given the breweries of Ireland
access to new resources, capital, and markets as well introduced even more competition and
rivalry.
Although Michael Porter does not consider the government as a national and regional
determinant of competitive advantage he does note that government can be an agent which
influences all four of the determinants. Ireland’s government has had a great impact on the
structure of the brewing industry. Ireland currently has one of the highest levels of taxes on
alcohol in Europe; as a matter of fact 19% of the entire country’s excise tax, 8% of the VAT
and 5% of the total tax comes from taxes on alcohol (ABFI, 2009). This tax has significant
implications on the breweries that are subject to the tax and serves as an important source of
revenue for the country. In 2007, the excise receipts on beer were €465 million and the total
excise receipts on alcohol totaled €1.13 billion (IBA, 2008). Please see Exhibit G.
Cultural Dimensions of Ireland
Ireland, for much of its existence, has been a country of little diversity. Religion, family, and
pub life have dominated the social scene of the Irish culture for hundreds of years. While
most customs remain, their importance seems to be declining in the changing state of Ireland.
To really understand the impact of Irish customs and culture, we must analyze the cultural
dimensions of Ireland through the Hofstede model. Hofstede examines a countries cultural
dimensions with the use of a four value dimension system; power distance, uncertainty
avoidance, individualism/collectivism, and masculinity/femininity.
First, let us examine Ireland’s power distance. Power distance is “the extent to which a
society accepts the unequal distribution of power in institutions and organizations.” (Trans
Mang., pg 157). Ireland has a very low power distance tolerance (PDI score: 28), which
translates into the expectation of a democratic power relation. The Irish culture believes in
individual equality and that each individual holds equal weight when contributing to the
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decision making process. You can see this low power distance at work with the Irish
political system. Ireland’s political system is represented democracy made up of a head of
state, parliament, and an executive, judicial, and legislative branch. Parliament members are
voted into office by the citizens of certain jurisdictions, giving each voting individual an
equal share in the decision making process.
Next is Ireland’s uncertainty avoidance. Uncertainty avoidance deals with a country’s
preference for predictability over uncertainty. Predictability is created by way of rules or a
society built on structure and order. Ireland has a mid to low uncertainty avoidance index
(UA score: 35). The Irish believe in the necessity of rules in a culture, but also like to take
everyday as they come and prefer a very low stress, hard work when needed, culture. The
mid to lower uncertainty avoidance in the Irish culture is evident in their love of the famous
Irish pub culture, and sayings such as “Slainte” which mean “Good Health.”
Now, let us examine Ireland’s view of individualism versus collectivism. This aspect of
culture looks at the expectation of an individual to act on his/her own when making
decisions, or are individuals expected to act a s group and go along with the overall
consensus or views of a society. Of all countries examined, Ireland ranked 12th in terms of
individuality. The Irish culture believes in allowing individuals to act as they see fit (with
some obvious restrictions) and that individuals have the right to endorse their independence
whether it be politically or socially driven. This aspect of culture in Ireland has seen the most
change over the years. For hundreds of years Ireland was driven by the Roman Catholic
Church, which some may argue, represented a collectivist culture.
Finally, let us look at Ireland’s preference of masculinity versus femininity. This aspect
examines a country’s value of competitiveness and ambition over relationships and quality of
life. Although the other culture aspects present the idea that the Irish culture is a more
feminine culture, we find that Ireland still is driven by success. Education is very important
in the Irish culture, and so is the family structure. In the Irish culture, the father is the
dominant figure and tends to make all family decisions. It must be noted that the Irish culture
very much tries to achieve a balance of success with quality of life which is evident in the
country’s love for the pub culture and its country wide obsession with sports, specifically
soccer and rugby.
Ireland Compared to the Baltimore Region Using Hofstede's Cultural Dimensions
By way of Hofstede’s cultural dimension indexes we can see that, culturally, Ireland is very
similar to the United States in all of the four categories. The Baltimore region presents a
great representation of the culture dimensions of the entire country. As in Ireland, here in the
United States, and specifically the Baltimore region, we believe in the democratic process
and feel that every individual should be involved in the decision making process. Our
political system is built similarly in that citizens of districts vote on their representatives.
From an uncertainty avoidance standpoint, the Baltimore region and Ireland are very similar.
There is a sense that rules and laws are needed to provide our culture with a structure and a
certain sense of order. When examining the individualism/collectivism index, one can see
that the United States ranks 1st of all countries studied. Taking a closer look at the Baltimore
region, it is easy to see why. In the Baltimore region, individuality and freedom of
expression are promoted and encouraged. You can see this in any of the hundreds of
subcultures that coexist and prosper in the region. Whether you are an artist, a democrat, of
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Jewish faith, or even a Steelers fan, your freedom to act as an individual is encouraged and,
in most cases, respected. As we can see, Ireland and Baltimore are similar when it comes to
individualism. Finally, looking at Baltimore’s preference for masculinity over femininity, we
see that, like the previous cultural dimensions, we share similar ideas. Similar to the Irish
culture, education is very important to the culture of the United States and the Baltimore
region. Education allows us to be competitive in the business world and to chase our goals.
We as a culture are very competitive and are driven by materialistic needs and wants.
Similar to Ireland, we find ourselves trying to achieve a balance or a certain quality of life
which is evident from the regions numerous bars/restaurants, public parks, sports teams, and
other regional attractions.
Potential Problems Between Ireland and Baltimore
Based on the many cultural similarities between Ireland and the Baltimore region, few
problems should arise. A potentially large problem could arise in the health care industry as
Ireland operates a public health care system. In Ireland, your coverage is based on your
income bracket, with poorer individuals receiving a higher level of coverage. With the health
care system being free, one can imagine the amount of time many Irish people spend waiting
for doctor visits and/or treatments. For those who can afford it, private health care coverage
is necessary to receive prompt attention. This public health care system could affect the
demand for pharmaceuticals due to price.
Synergies Between Ireland and Baltimore
The synergies between Ireland and the Baltimore region are endless, due in large part to the
similarities the two regions share from a cultural dimension stand point. The United States
and Ireland historically have a positive relationship and we don’t foresee this changing
anytime soon. U.S. based companies are attracted by the low corporate tax rate of 12.5% and
the pro business environment the Irish government has created. In 2007 it was estimated
that Ireland had $191.4 billion of direct foreign investment. Service based industries such as
pharmaceuticals, finance, insurance, and information communication made up most of the
foreign investment. Currently Ireland is home to over 600 U.S. based companies.
Proposal for Global Business Venture – Baltimore Medical Industry Expanding Into
Ireland
Many areas throughout the world have benefited from knowledge sharing by grouping a large
amount of highly talented companies and suppliers in the same geographic location. This
phenomenon, known as self-organization, has been seen in the technology industry in
California’s Silicon Valley and Massachusetts’s Route 128 (Pascale, Millemann, and Gioja).
Baltimore has been able to take advantage of this knowledge sharing and create an
environment in which advancement in the healthcare industry flourishes. By combining
treatment centers, research hospitals, and teaching hospitals in the same area, Baltimore has
become an established center of medicine and biosciences and has very graciously gained the
title as home to the world’s best hospital (City-Data, 2009). Ranked as number one the
United States and similarly across the globe, Johns Hopkins Hospital has been able to
maintain this title for eighteen consecutive years. As a result, the hospital’s reputation and
prominence has strengthened immensely.
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Due to Johns Hopkins’ top rank, it naturally draws global attention; thus, people from all
over the globe travel to Baltimore to be treated by Johns Hopkins doctors and other medical
professionals (Travel and Leisure, 2009). There also exists a large number of people who
seek medical attention and care, but simply cannot afford to receive the best care available—
especially when it requires long distance traveling. Therefore, Johns Hopkins could take
advantage of this strong global demand by creating a “sister hospital” in another country with
equally qualified doctors. Since the industry is highly influenced by human capital, it is
possible to operate successful establishments abroad as long as the medical equipment being
used is as advanced as that in the Baltimore facilities. This new hospital would have to be
located in an area that is closer and more convenient for many of its global visitors. A prime
and certainly a more central location for a Johns Hopkins facility could very easily be
situated in Ireland. Because hospitals in Ireland and many European countries have much
longer wait times for patients than what patients experience in the United States, European
patients would benefit greatly from this setup. Not only that, but many of those people who
qualify for specialized healthcare yet lack the monetary resources to travel to the renowned
medical facility in Baltimore would benefit immensely if this hospital were to be opened in
Ireland. The obvious motivation behind this is to strengthen the existing business.
Why Does this Recommendation Make Sense?
This recommendation makes perfect sense given the strengths of the Baltimore healthcare
industry, specifically the medical services and hospital sector. Baltimore is a relatively small
city in terms of population and square mileage, but is still very fortunate to be home to six of
the best hospitals in the United States. These nationally accredited healthcare facilities are
extremely successful, due in large part to the availability of highly skilled professionals and
talented individuals in the area. Not surprisingly, a large number of medical schools are also
located in the Baltimore region. Johns Hopkins Medical School is ranked as the number two
medical school in the nation.
Companies to Make this Business Venture Work
To make this business venture work, it is important to first examine the healthcare industry in
Ireland. The industry in Ireland is mature and is relatively strong due to the great number of
people employed by different businesses related to the healthcare industry. Additionally,
many of the top healthcare-related companies in the world are located in Ireland. In the
pharmaceutical industry alone, “thirteen of the top fifteen companies in the world have
substantial operational bases in Ireland, with fifteen of the world’s twenty-five leading
medical technology companies also located there” (Med In Ireland, 2006).
The
pharmaceutical companies in Ireland are able to take advantage of an intricate and
sophisticated infrastructure of service sites and public utilities. They are also supported by a
network of specialized support companies that provide them with the services they need. In
Ireland, there has been a great deal of investment in chemical plants and finished drug
products which has led to Ireland being enveloped in producing drugs for other companies in
Ireland as well as companies all over the world.
Another great strength of the healthcare industry in Ireland is that its medical technologies
sector employs more than 22,000 people, spread throughout 110 companies. Together, said
companies have sales that are greater than four billion Euros annually and their annual
growth rate is close to 10%. Because of this significant increase in healthcare employees and
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sales in Ireland, the medical technologies sector has become comparable in size to the
world’s largest medical technologies regions, namely Minnesota and Massachusetts. There
are a number of high technology manufacturing projects located in Ireland and many of them
have recently begun to integrate research and development activities, which will be helpful to
the overall Irish healthcare industry. Various research and development activities receive
partial funding from the Irish government grant assistance (IDA, 2009).
Ireland has become Europe’s most prominent location for healthcare manufacturers due to
thirty plus years of continuous investment in this area. As a result, a local group of
innovation-led venture capital-funded technology companies are beginning to earn leading
positions in international healthcare markets (Med in Ireland, 2006). Another reason why it
is beneficial for healthcare companies to be established in Ireland is the fact that Ireland has a
“12.5% Corporation Tax on all trading activities, with a comprehensive Double Taxation
treaty network, combined with a range of other tax advantages such as R&D tax credits and
patents royalty tax exemptions” (IDA, 2009).
Unfortunately, because every individual is guaranteed healthcare in Ireland there is a huge
problem with waitlists for medical care. Even though billions of dollars have been poured
into the healthcare system in Ireland over the past few years, there are still wait lists for those
who need operations and other important medical procedures. In some cases, the operations
needed by patients are very serious and the fact that the wait time is so long poses a huge
problem to the healthcare system and its users. This is by far one of the biggest weaknesses
of the system. For example, 2007 statistics show that 76% of inpatients were admitted to
hospitals for operations immediately, 11% had to wait up to one month, 4% had to wait up to
three months, 1% had to wait up to six months and 4% had to wait for over six months for
operations. For outpatients, 23% were seen on time, 44% were seen within 30 minutes, 18%
waited more than an hour and 7% waited two hours (Wikipedia, 2009). Because of this
dilemma, The National Treatment Purchase Fund was established in 2002 to help address the
issue and in turn reduce the wait time for patients in public hospitals. In spite of this, as of
2008 there were still 1,846 patients that were waiting more than a year to receive medical
treatment or surgery. In addition, 35% of those patients were actually waiting at two
different hospitals. These statistics alone prove that Ireland’s healthcare system, specifically
the hospitals, could use the help and support that other established and highly recognized
medical facilities are willing to offer.
Johns Hopkins would be the ideal candidate for offering this much-needed support to the
Irish hospital system. This prominent hospital excels in medical innovations, treatment, and
research. On top of that, it has been consistently ranked among the top hospitals in the nation
and has earned that spot for a reason. Its mission is “to improve the health of the community
and the world by setting the standard of excellence in patient care. Diverse and inclusive,
The Johns Hopkins Hospital in collaboration with the faculty of The Johns Hopkins
University supports medical education and research, and provides innovative patient-centered
care to prevent, diagnose and treat human illness” (Hopkins Hospital, 2009).
Johns Hopkins already has an international presence in several countries around the world. It
has partnered with Amcare Labs International, Anadolu Medical Center, Clemenceau
Medical Center, Clinica Las Condes, and Tokyo Midtown Medical Center. Each partnership
is unique from the others, but Johns Hopkins mainly provides information technology
systems consulting, capital equipment purchase consulting, breast imaging center consulting,
12
joint conferences, two-year nursing development initiatives, educational observerships, and
Joint Commission International accreditation preparedness training, among others. Clinica
Las Condes, located in Santiago, Chile notes that they “would compare the benefits of being
affiliated with Johns Hopkins Medicine International to the benefits that a team gets by
having a great coach. The road to improvement and to achieving higher quality requires
guidance. Hopkins guided us [in so many ways] … Now we can point our hospital to where
it should be in 10 years” (Clínica Las Condes, 2009). This type of response is common from
those who partner with Johns Hopkins.
Best Model for Business Venture
The best option for Johns Hopkins to enter the Irish market would be to partner or create a
joint program with Beacon Hospital. Owned by Beacon Medical Group, the current
establishment comprises 238,000 square feet over 9 floors, having the capacity for 183 beds.
The hospital combines the best Irish and US healthcare practices. As the showcase for
General Electric in Europe, it has the most current radiology systems and features digital
radiology suites with advanced systems including mammography, nuclear medicine,
ultrasound, and angiography. The treatment centers include 8 operating areas with dedicated
rooms for neurosurgery, urology, cardiac, general, orthopedic, and ophthalmic surgeries. The
Beacon Hospital also offers very advanced information technology systems which have
electronic medical records and remote access to clinical information for doctors. These
capabilities allow doctors and nurses to access their patients records remotely so they can act
appropriately with all of the information needed right in front of them. The vision is “to be a
beacon of excellence in Irish healthcare. We will position ourselves as the preferred
healthcare provider within the community … Our services will be provided by dedicated,
competent, and talented people focused on continuous improvement and service excellence”
(Beacon Hospital, 2009).
There are a few different types of hospitals in Ireland. The first category is known as Health
Service Executive hospitals which are owned, operated, and funded by the Health Service
Executive that was described in earlier sections. The second category is voluntary public
hospitals which are funded almost entirely by the government. They are frequently owned by
private bodies, many times by religious orders. In other instances, voluntary public hospitals
are incorporated by statute and are run by boards appointed by the Minister for Health and
Children. Lastly, there are private hospitals which receive no funding from the Irish
governing body (Citizens Information, 2009). Due to the large differences in healthcare
systems between Ireland and the US, it will be most beneficial for Johns Hopkins and Beacon
Hospital to open a private hospital to alleviate the issue of dealing with the government in
terms of funding. This would allow the new venture to institute its own set of “rules” for
healthcare and medical treatment rather than having to follow guidelines and laws established
by the government.
Location is one of the most crucial features for any business. That’s why the location for the
Johns Hopkins-Beacon Hospital will be in Limerick. On the westernmost side of the island,
Limerick is one of the larger cities in Ireland and has many educational institutions within its
boundaries. It would be beneficial, then, for the venture to also partner with the University of
Limerick for future endeavors in teaching, education, and observerships in different medical
fields. Through the joint program, the Johns Hopkins-Beacon Hospital will offer the best
cancer treatment technology, expertise, and treatment delivery system available today. The
13
hospital will also operate a one-stop advanced neurosurgery service. Significant capital
expenditure will be dedicated to the diagnostic services in the hospital so that there is a
paperless and picture perfect service provided. The hospital will seek to hire the highest
quality individuals in order to complement the state-of-the-art equipment and leading
technologies employed. These characteristics will allow the Johns Hopkins-Beacon Hospital
to provide a world-class service to its patients in Ireland. This facility will undoubtedly set a
benchmark for hospital services in the country. It will be of major significance as it brings a
new international standard to the people of Ireland.
As previously mentioned, the best model for the new business to have the proper balance
between coordination and financial risk will be a partnership or a joint program. The
operations will be managed by Johns Hopkins with substantial strategic, operational, and/or
administrative controls. There will not be bureaucratic governance, but rather joint
committees will be established to guide and supervise shared tasks. Because the two
companies are very much in line in terms of scope of activities, it will foster an environment
of collaboration. This will create flows of information and will enhance learning across the
organization. It will be important for the two partners to find a balanced approach to achieve
an acceptable level of joint value creation. This means that there must be a certain amount of
flexibility in adapting to goals, scope, and the management of changing conditions. This will
allow the partnership or joint program to evolve in response to the rapidly changing
healthcare and medical environment.
Potential Payoffs of the Business Venture
There are many potential payoffs of the business venture. First and foremost, both
companies will be motivated to bring the most qualified people to the challenge of supporting
a top-notch organization. The business responsibilities can be divided up amongst the
management team and flowed down to lower level employees. This will ensure that all needs
and wants of the business relationship are catered to and that the hospital is making the best
use of its resources. Secondly, the financial responsibility will be on both parties. This will
encourage collaboration between the partners who will be seeking a common goal. In terms
of monetary benefits, it appears on the surface that Ireland will gain more from the venture
(than Baltimore) since the hospital will be located within its boundaries. However, Johns
Hopkins will also be benefiting as it will generate more profit for the company which can be
used for research and development of new medical technologies. Another payoff of the
Johns Hopkins-Beacon Hospital partnership is that it will allow for the exploitation of
opportunities and in a quick manner. Many times in business this can mean the difference
between success and failure. Because both organizations are already well-established, the
array of opportunities will be very large. Finally, the joint program will allow both parties to
fill in the blanks for one another where weaknesses exist—in terms of money, expertise,
ideas, skills, connections, facilities, patents, technologies, and several others.
Main Risks Associated with Business Venture
There are a number of risks that come with business ventures. This is definitely something
that both parties should be aware of when entering the agreement. The most important thing
to do initially will be to institute a vision and goals for the business and firmly agree that
neither party will deviate from the shared aim. This will prevent a lot of tension from the
start. Another risk is unequal commitment with respect to time and finances. This can cause
14
personal disputes and inevitable conflicts to crop up between members, dwindling
enthusiasm for the common good. An additional risk is that focusing too heavily on financial
gain can lead to troublesome behavior, potentially destroying business relationships along the
way.
There should not be any real legal risks involved with the Johns Hopkins-Beacon Hospital
since it will be a private venture. The government will not be involved since it will not be
asked to fund operations or support the business in any way. There are virtually no political
risks involved as Ireland is very open to foreign direct investment, much of which comes
from the United States. There is also very little risk involved culturally due in large part to
the similarities the two regions share. As we determined earlier using Hofstede’s method of
analysis, Ireland and the United States are very comparable in terms of culture.
Strategic Capabilities, Leveraging Knowledge, Managing Across Organizational
Boundaries, and Managing Cross-Culturally
To ensure a successful business venture, there are many things that must be considered. Prior
to the business agreement, both parties must reveal their relevant physical assets. This would
include the condition and productivity of medical equipment as both parties would most
likely supply physical assets for the new hospital. They must also reveal their intangible
assets including the strength of their “brand”, current state and quality of customer
relationships, and level of technological expertise. Johns Hopkins is a very strong global
brand, has excellent customer relationships and an astonishing level of technological
expertise. Beacon Hospital, on the other hand, is a developing but relatively strong brand and
has a decent level of technological capabilities. In terms of organizational capabilities, the
venture would have to look closely at the current state of managerial competence, employee
loyalty, and shared values.
In order to effectively manage across organizational boundaries, both companies must bring
forth resources, capabilities, and commitments to achieve common long-term goals. It is
imperative that management push all employees to achieve results in the short-term as well.
This will help in maintaining a competitive edge and building credibility with stakeholders.
In doing so, management should provide the controls, support, and coordination to leverage
resources and capabilities to their highest level of performance. This also means that
managers should communicate how important each individuals responsibilities are and how
they are related to the overall goal of the organization. The responsibilities delegated must be
clear and should be backed with rewards that align with the corporate goals (Bartlett,
Ghoshal, and Beamish, pg. 658).
Conclusion
All in all, it appears that the Johns Hopkins-Beacon Hospital partnership will be a valuable
business venture. There are many strategic capabilities to utilize and an abundance of
knowledge to leverage. The most difficult task will be to manage across the organizational
and cultural boundaries, but with the most competent management team in place, the
difficulties will fade—positioning the Johns Hopkins-Beacon Hospital for success.
Proposal for Global Business Venture – Brewing Industry, “Little Ireland”
15
Currently, immigrants from Italy and Greece celebrate their cultural heritage in planned
neighborhoods throughout major cities in the United States. In Baltimore the Italian and
Greek cultures are seen Little Italy and Greek Town. Little Italy is a neighborhood which is
located between Baltimore’s Inner Harbor and Fells Point with “mostly Italian residents and
Trattorias [restaurants]” (Little Italy Maryland). Greek Town is located in Baltimore’s
Highland Town and has been inhabited by Greek Americans since the 1930s and features
Greek businesses and restaurants (Greek Town Maryland). Our recommendation is for the
Irish brewing companies to partner with Baltimore companies to create a spin off of these
cultural neighborhoods. This area would be called “Little Ireland” and would feature
authentic Irish breweries and pubs.
We are aware that creating a neighborhood as complex as Little Italy or Greek Town would
not be feasible. These neighborhoods have been built over the past 100 years and are
actually the home to Greek and Italian immigrants. Little Ireland would not be an entire
neighborhood incorporating all aspects of Irish Culture; instead, it would offer Baltimore’s
residents and visitors a place to go where they could experience the pub culture that has been
an important part of Ireland for over a century. Here, patrons could experience traditional
Irish beers imported from Ireland and some even brewed in Baltimore.
Within Little Ireland there will be two types of pubs. The first type of pub, which we will
call the Micro-Pub for reference purposes, will be run by Irish Microbrewers in partnership
with Baltimore companies. These pubs will feature authentic Irish beers and will focus on a
traditional Irish atmosphere. Additionally, some of these pubs will be classified as brewpubs
and will feature their own beers brewed on site. The second type of pub will be more
commercial, and we will call them Macro-Pubs. These pubs will be run by companies such
as Guinness and will feature their beers (Guinness, Harp, and Smithwicks) and will have a
more contemporary feel. Here, patrons can purchase Guinness merchandise and experience a
social atmosphere that is a Baltimore style bar which is influenced by Ireland’s culture.
Macro-Pubs will have the ability to appeal to the masses.
Why Does This Recommendation Make Sense?
Ireland has a well established brewing industry that has gained a global reputation for
producing high quality beers. Companies such as Guinness, Harp, Smithwicks, and
Murphy’s are sold in bars throughout the United States and are considered favorites of many
American consumers. Additionally, since the 1990’s microbreweries and brewpubs have
gained popularity and acceptance in Ireland and has come to be known as “The Micro
Revolution” (Beers of Ireland, 2007). On a recent trip to Ireland, Jessica Merrill of the New
York Times and her husband noticed that there was a shift in Ireland from sitting down at a
pub for a pint of Guinness to an exploration of flavors among Ireland’s finest
microbreweries. Ireland currently has 11 Microbreweries and 3 of these operate Brewpubs, a
pub that also brews its own beer (Beers of Ireland, 2007). This micro revolution has taken
place in the United States as well. Microbrews have become extremely popular because they
offer beer drinkers new tastes, styles, and textures that they cannot get from the major
brewing companies. In the article titled “Microbrew Mania”, Donna Hood states that the
amount of beer taps in restaurants and bars, especially the number of microbreweries offered
is increasing in the United States. Microbrews fall in the broad category of craft beers which
are known for their high quality and large selection.
16
Companies to Make Business Venture Work
In order to make this recommendation work, it is important to have several businesses from
both Ireland and Baltimore on board. To keep these businesses separate we will discuss the
Micro-Pubs first and then discuss the Macro-Pubs.
Micro-Pub Business Venture
In order for the Micro-Pubs to be successful there will need to be cooperation among
Ireland’s Microbreweries, Baltimore’s Microbreweries, and established Baltimore
restaurants. There are three microbreweries in Ireland that operate BrewPubs. These
microbreweries are Biddy Early, Messrs Maguire, and The Porterhouse Brewing Co. Dublin.
Since these three breweries not only have experience in brewing microbrews but also know
how to operate a pub, they would be the best candidates for a business venture in Baltimore’s
Little Ireland.
Specifically, Porterhouse Brewing Co. Dublin (Porterhouse) is the largest of these brewpubs
and would be the most suitable for a global business venture. Porterhouse has 9 beers that
they brew: 3 stouts, 3 ales, and 3 lagers (Porterhouse Homepage). When expanding to
Baltimore, this variety of beers would allow the company to appeal to the various taste
preferences of consumers. In addition to their own brews, Porterhouse features various Irish
microbrews as well as well known global beers. Furthermore, Porterhouse already has some
experience with expansion outside of Ireland. They currently operate one of their brewpubs
in London. Porterhouse is also a logistically sound company for a global business venture.
Its brewpubs in Ireland are located in Dublin which is the home to Ireland’s largest port
(DublinPort.ie). Since Baltimore is a major port city and has the furthest inland port in the
United States, there could be a port-to-port transfer of goods involving minimal on-shore
transportation.
In Baltimore there are several companies that would help to make this global business
venture successful. To start with, Ireland’s brewpubs would need to partner with companies
who are familiar with the Baltimore restaurant and bar industry as well as those familiar with
alcohol laws and brewing regulations. One person who is extremely familiar with the
restaurant and bar business in Baltimore is Patrick “Scunny” McCuster (Scunny). Scunny
owns two successful bars in Baltimore, Canton’s Nacho Mama’s and Mama’s on the Half
Shell. Scunny is involved in the Baltimore community and knows how to run a successful
business. Moreover, Scunny currently sits on the board of the Maryland Business Council
(MDBC.Com). Restaurant owners are familiar with liquor licensing laws and real estate
laws. Scunny’s knowledge of the restaurant business would be valuable for this global
business venture.
Additionally, Baltimore’s microbreweries can offer a special level of expertise to the MicroPubs involved in the global business venture. The microbreweries that are currently located
in Baltimore are the Baltimore-Washington Beer Works, The Brewer’s Art, Capitol City
Brewing Co, Clipper City Brewing Co, DuClaw Brewing Co, and Pub Dog (Brew Pub Zone).
DuClaw is the largest of these microbreweries and has one location in Fells Point and several
locations outside of the city (DuClaw Home Page). Another larger microbrewery is Pub Dog
which has recently expanded outside of Federal Hill in Baltimore to Columbia, MD (Pub
Dog Home Page). Both of these microbreweries, DuClaw and Pub Dog, are considered
BrewPubs. They would offer Porterhouse and any other Irish microbreweries a special
17
expertise about Maryland’s brewing regulations as well as add to the information business
people like Scunny McCuster provide about the restaurant business.
MacroPub Business Venture
The MacroPubs would require fewer partnerships with already existing companies in
Baltimore because Guinness is already well established in the United States and understands
any laws and regulations that apply to it. However, it would be advantageous to acquire
specific local knowledge by partnering with existing Baltimore bar owners. These owners
would be the most suitable to run one of the MacroPubs because they are knowledgeable
about what people want from a bar in Baltimore. One company that would be helpful in the
MacroPub business venture is National Bohemian. National Bohemian, once owned by the
National Brewing Company, is now owned by Pabst Brewing Company (National Bohemian
Home Page). This company could be a valuable resource to Guinness in running a MacroPub
in Baltimore. Not only did National Bohemian have experience in brewing beer in Baltimore
from 1885 to 1973, they are currently engaged in sponsorships and distribution throughout
Baltimore as well. Since the MacroPubs will involve the distribution of Guinness beer as
well as other Irish and American beers and offer Guinness and Irish merchandise to
customers, National Bohemian and the Pabst Brewing Company would be the perfect
partners for this business venture.
Potential Payoffs of the Business Venture
There would be several payoffs related to the Business Venture that would benefit Baltimore
as well as Ireland. This business venture would bring new business to Baltimore and benefit
its economy. Both the MicroPubs and MacroPubs would create new jobs for Baltimore as
well as promote consumer spending. This business venture would also have monetary
benefit for Ireland. The Microbreweries involved in the MicroPubs would benefit from an
increased international exposure as well as increased revenues. These companies could then
reinvest their profits into their breweries in Ireland which would benefit the Irish economy.
As far as the MacroPubs go, companies such as Guinness could increase their market share in
Baltimore and thus increase their revenues. Furthermore, there are logistical payoffs
associated with the business venture. If the microbreweries in Ireland grouped their exports
together they could experience cost savings. If these microbreweries agreed to ship out of
one port, i.e. Dublin, they could experience further savings and logistical efficiencies.
Along with monetary payoffs, this business venture would have social benefits as well. Too
often Americans are viewed throughout the world as ignorant to others cultures. Having
Little Ireland would further help to change this image. The pubs in Little Ireland would
allow customers to learn about Irish culture and have an authentic Irish pub experience right
in Baltimore. Hopefully this would create an appreciation for Irish culture among Little
Ireland’s visitors. In addition, this area would create a strong sense of community for Irish
immigrants and people with Irish heritage. Although this community bond would not be as
strong as those seen in Little Italy and Greek Town, it will tie people to their roots and elicit a
sense of Irish pride.
Best Model for Business Venture
The best model to make the MicroPub business venture possible would be a joint venture.
Under this model the Irish microbreweries and the Baltimore brewers and bar owners would
18
be able to combine their skills and specialties to make the venture successful. A joint venture
has a higher amount of resources committed to the foreign market as well as a greater level of
control for companies entering a foreign market, in this case the microbreweries from Ireland
(Bartlett, Ghosal, and Beamish, p. 10). This would allow the Irish microbreweries to have
more control over the quality of their beers. It is the superior quality of Irish beer that has
made it globally recognized. Additionally, a joint venture would allow the Irish
microbreweries to have more input about the cultural aspects of the MicroPub. Since a joint
venture does not have the full level of control and risk of a wholly owned subsidiary these
microbreweries would be more successful in entering Baltimore, a foreign market to them. A
joint venture would allow these microbreweries to benefit form the strengths, resources, and
knowledge of existing Baltimore companies.
It will be important for the Irish
microbreweries to utilize existing brewing facilities and brew pubs in Baltimore to make this
business venture successful. These companies understand the cultural aspects of Baltimore
and can be valuable assets to the business venture. As mentioned earlier, Guinness already
has a strong presence and large market share in the United States. Because of this, the best
model for the MacroPubs might be a wholly owned subsidiary with strategic alliances and
partnerships. Guinness could benefit from specific Baltimore knowledge such as the
distribution and merchandise knowledge of National Bohemian under the Pabst Brewing Co.
Main Risks Associated with Business Venture
The major risks associated with Little Ireland are cultural risks and risks of collaboration.
The companies associated with this business venture run the risk that the Irish culture would
clash with the American culture, specifically Baltimore’s culture. In a BrewPub there is
potential for a difference in taste for beer and food among the two cultures. For example, the
Baltimore customers may not be accepting of the traditional Irish style that is expected to be
represented in Little Ireland. The second risk associated with this business venture involves
the risk of collaboration. This risk affects the MicroPubs more so than the MacroPubs.
When companies enter into joint ventures they end up sharing resources and company
strategies. Within the brewing industry there are a number of techniques and processes that
companies use to give themselves a distinctive competitive advantage. These techniques and
processes are often kept secret and entrusted to the employees of the brewery. When the
Irish microbreweries enter into joint ventures with Baltimore companies they will not only be
sharing the aspects of their company and brewing process but they will also be gaining
knowledge of strategies used by Baltimore companies. It is imperative that the companies
entering into these agreements have a mutual trust and respect for each other. All of the
companies involved can experience mutual benefits as long as they work towards mutual
goals and respect the competencies each individual company brings to the table.
Strategic Capabilities, Leveraging Knowledge, Managing Across Organizational
Boundaries, and Managing Cross-Culturally
In order to make the business venture successful, the companies involved need to effectively
combine their capabilities and knowledge. Both the Irish breweries and the Baltimore
breweries have been successful in their home markets and have a lot of valuable knowledge
about brewing and BrewPubs. It is important for these companies to determine which of
these strengths would be most applicable to the business venture. It is then important for the
companies to apply these strengths into creating a unified vision, mission, and set of goals for
the new MicroPub in Baltimore. These will differ from each company’s individual vision,
19
mission, and goals but will incorporate various aspects and competencies from each
company. Leveraging knowledge is one of the most important things companies can do in a
partnership and when companies do this correctly they learn a great deal from each other.
“For such learning to occur, however, a company must be receptive to the knowledge and
skills available from the partner and have an organization able to diffuse and leverage such
learning” (Bartlett et. al, p. 573). To be successful in knowledge sharing and learning the
companies involved in the business venture need to create an efficient knowledge network
which is “an essential prerequisite for not only effective internal processes but also effective
management across organizational boundaries” (Bartlett et. al, p. 573). Managing this
knowledge effectively will allow aspects of both the Irish culture and the Baltimore culture to
be combined to make the business venture a success.
Conclusion
The Irish brewing industry provides quality beers that are arguably some of the best beers in
the world. With the recent trend of micro brewing a new market has opened up in Ireland
and Baltimore. Each area offers strengths and there are various companies within the
industry that would allow for Little Ireland to be successful. Keeping in mind the associated
risk and ensuring that each company involved in the business venture utilizes its own
strengths as well as the strengths of others this global business venture can benefit both the
Baltimore and Ireland region.
Conclusions about Baltimore as an International Player in the Healthcare and Brewing
Industries
Baltimore has the skilled resources, facilities, cultural heritage, and strategic location
necessary to become a major international player over the next several years. As we have
noted, Baltimore is home to many of the top professional schools and hospital systems in the
United States, creating a rich pool of talented resources in the area. Baltimore is home to
many of the top medical, nursing, pharmacy, and graduate programs in the United States. In
addition, Johns Hopkins is consistently ranked as the top hospital year after year. There has
been a tremendous increase in the demand for high quality healthcare both locally and
internationally. Wait times continue to grow in hospitals around the world as patients seek
specialized healthcare services, treatments, and therapy. As demand continues to increase,
rivalry has forced these institutions to continually innovate and improve patient care, while
keeping costs down. As area schools and hospital systems continue to flourish and demand
for healthcare grows worldwide, Baltimore has the opportunity to make a significant impact
in the effort to provide quality, low-cost healthcare worldwide.
In addition to the healthcare industry, Baltimore continues to thrive as a city rich in cultural
heritage. As institutions such as the University of Baltimore and Johns Hopkins attract
students from around the world, the city has become more culturally diverse and accepting.
Locations such as Little Italy and Greek Town have been successful in sharing the Italian and
Greek culture with the people of Baltimore. Many of the restaurants in these areas are among
the most critically acclaimed in the city and have been successful for several years. The
diverse culture of Baltimore presents the opportunity for restaurants and businesses of
varying cultural backgrounds to be successful. Finally, the strategic location of Baltimore as
a port city on the east coast cannot be ignored.
20
The Benefits of Baltimore and Ireland Working Together
There are tremendous benefits to Ireland and its citizens in partnering with Baltimore.
Baltimore is home to many of the top professional programs and hospital systems in the
United States. Although wait times continue to decline, many patients still are forced to wait
several months for treatment in Ireland. The rising global demand for healthcare has created
an opportunity for Johns Hopkins to partner with Beacon Hospital to improve quality
healthcare in Ireland. As previously noted, Johns Hopkins already has an international
presence and has been successful in improving patient care around the world. Partnering
with Beacon Hospital makes the most sense because they have world class facilities and
technology, including electronic medical records, throughout the hospital. This allows for
the highly skilled Hopkins physicians to make the most of their talents while in Ireland.
Additionally, electronic medical records would allow for the transmission of patient
information between both Hopkins and Beacon to be instantaneous. This would allow
physicians and nurses to care for patients on site and back in Baltimore simultaneously.
Electronic medical records also increases the time spent caring for patients while greatly
reducing the potential for error. The benefits to the citizens of Ireland are endless. They will
have access to world class healthcare previously unavailable to them in Ireland. A
partnership with Hopkins will create an emerging healthcare center in Limerick as other local
institutions and universities benefit from the Beacon-Hopkins Hospital.
There are also tremendous benefits to the Baltimore citizens in partnering with Ireland. The
pub culture has been a large part of the Irish culture for many years. The growing amount of
young professionals in Baltimore tend to be a very social, culturally accepting group willing
to try new things. The creation of a “Little Ireland” would allow patrons to embrace the Irish
pub culture and experience traditional Irish beers imported from Ireland. While Guinness
and Harp are well known and loved by many locals, the recent growth of the microbrewery
industry in Ireland has been kept secret to those outside Ireland. Microbrews have become
extremely popular because they offer beer drinkers new tastes, styles, and textures that they
cannot get from the major brewing companies. The creation of both MicroPub and
MacroPub business ventures would create new job opportunities and stimulate the Baltimore
economy, while allowing the locals to embrace the cultural heritage of Ireland.
Baltimore's potential for global business
Overall our analyses of the healthcare and brewing Industries have shown that Baltimore has
tremendous potential to impact the global economy. The amount of skilled professionals and
world-class facilities in Baltimore have the opportunity improve healthcare worldwide. As
global healthcare demand and costs continue to rise, Baltimore is in position to improve the
quality of healthcare at a global level. As the Baltimore economy continues to grow and
attract talented professionals from around the world, the city has become a rich, diverse
cultural center. As Baltimore continues to expand, the potential for local businesses to adopt
and share the cultures of other countries does as well.
21
Exhibit A –
Reference: http://www.gadling.com/media/2007/07/healthcareworldbig.jpg
22
Exhibit B – Hoover’s Company Records
Johns Hopkins Medicine
720 Rutland Ave.
Baltimore, MD 21205
Phone: 410-955-5000
Fax: 410-955-4452
http://www.hopkinsmedicine.org
Hoover's coverage by Anne Law
Hopping John is a recipe for black-eyed peas; Johns Hopkins Medicine is a recipe for Baltimore health care. Consisting of Johns
Hopkins University School of Medicine and the Johns Hopkins Health System, Johns Hopkins Medicine fosters the education of
physicians and medical scientists and facilitates biomedical research and the application of medical knowledge. The system utilizes
the numerous resources offered by the hospitals and clinics in the Health System, which has an approximate 1,500-bed capacity, in
addition to the academic offerings of the school.
Key Numbers
Company Type
Private - Not-forProfit
Fiscal Year-End
June
Sales (mil.)
$11.1
Employees
7,000
Key People
Chairman
CEO; Dean, Medical Faculty, The Johns Hopkins
University School of Medicine
CFO
VP Information Services
VP Quality Improvement and COO
C. Michael Armstrong
Edward D. Miller Jr.
Richard A. (Rich) Grossi
Stephanie L. Reel
Judy A. Reitz
Top Competitors



Anne Arundel Medical Center
GBMC Healthcare
MedStar Health
Reference: http://cobrands.hoovers.com/global/cobrands/proquest/people.htmlMore People
23
Exhibit C – Hoover’s Company Records
MedStar Health
5565 Sterrett Place, 5th Fl.
Columbia, MD 21044
Phone: 410-772-6500
Fax: 410-715-3905
Toll Free: 877-772-6505
http://www.medstarhealth.org
Hoover's coverage by Anne Law
Whether you're seeing stars or are just plain sickly, MedStar Health can cater to you. The not-for-profit organization runs eight
hospitals and a number of other health care facilities in the Baltimore and Washington, DC, areas, including Union Memorial and
Georgetown University Hospital. With some 2,800 beds and 5,000 affiliated physicians, MedStar has a comprehensive service
offering, including acute and long-term sub-acute care, emergency services, home health care, and rehabilitation. It also operates
emergency clinics and assisted living and nursing homes, maintains a primary care and specialist physician network (MedStar
Physician Partners), and conducts research and medical education activities.
Key Numbers
Company Type
Private - Not-forProfit
Fiscal Year-End
June
Sales (mil.)
$2,147.5
Employees
23,000
Key People
Chairman
President and CEO
E. F. Shaw Wilgis
Kenneth A. (Ken) Samet
EVP Finance and CFO
Michael J. Curran
EVP Corporate Services
Michael C. Rogers
SVP and CIO
Catherine Szenczy
Top Competitors



Adventist HealthCare
Bon Secours Health
Johns Hopkins Health System
Reference: http://cobrands.hoovers.com/global/cobrands/proquest/people.htmlMore People
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Exhibit D - The Irish Brewers Association Breweries, Including: Guinness, Smithwick’s,
Murphy’s, Harp, and Bass are located along or near Irelands Coastlines.
25
Exhibit E – Ireland Alcohol Consumption by Category
26
Exhibit F – Ireland Beer Consumption (Domestic and Abroad)
27
Exhibit G - Total Excise Receipts on Alcohol (€M)
28
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