Pine Street Inn Case Analysis
Angelo Alarcon
University of the Incarnate Word

Problem Statement Pine Street Inn had a stable business model that allowed it to stay in business serving the local homeless community for many years. In 2004, Pine Street suffered a three million dollar declined in their operating budget. Director Lyndia Downie and Pine Street Board of Directors commissioned a study that sought to cut one million dollars in spending and reassess the long-term strategy of Pine Street. As a result from the study the decision was made to outsource the nursing and clothing program but now Director Downie and Board of Directors must decide what would be the best long-term strategy for Pine Inn.
Analysis
The main reason for the budget decline was the overcrowding of guest due to the strong belief that no one was ever turned away, although other community shelters did. No matter what the situation or circumstance no one was questioned or encourage to find other alternatives. In order to make a one million dollar cut in the budget, the decision was made to outsource the nursing program. This new plan was received with skepticism as the nursing staff felt that they knew their patients due to their unorthodox approach to medicine. Another medical staff would not be able to provide the same level of care for their guest. Another program that needed to be outsourced was their clothing operations. Guest could pick any article of clothing for free and could return over and over again as needed. The program was adjusted by adding a washer and dryer and encourage guest to wash their cloths, an option they did not have before.
- Numeric Data
Budget $29,000,000
Down to $26,900,000
$300,000 was spent by clothing program.
Length of Stay # of Guests
3 Days or Less 3,322
4 to 10 Days